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I nve sto r pre se nta tio n Q2 2018 Aug ust 2018 K e y hig hlig hts Q2 So lid mo me ntum with po sitive de ve lo pme nt in ke y pe rfo rma nc e indic a to rs Gro wth suppo rte d b y c urre nc y (~4%-po ints) in b o th Q2 a nd YT D a


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SLIDE 1

I nve sto r pre se nta tio n Q2 2018

Aug ust 2018

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SLIDE 2

K e y hig hlig hts Q2

  • So lid mo me ntum with po sitive de ve lo pme nt in ke y pe rfo rma nc e indic a to rs
  • Gro wth suppo rte d b y c urre nc y (~4%-po ints) in b o th Q2 a nd YT

D a nd drive n b y Bo o zt.c o m (+43%) a nd Bo o ztle t.c o m (+90%)

  • Adjuste d E

BI T ma rg in impro ve me nt drive n b y c o st ra tio s, while g ro ss ma rg in wa s hit b y hig h pro mo tio na l a c tivity due to the unususa l lo ng a nd wa rm summe r

  • Upg ra ding g ro wth o utlo o k to +36% (pre vio us +33%) b a se d o n so lid Q2 a nd

c o ntinue d mo me ntum in K PI ’ s

  • Adjuste d E

BI T ma rg in g uida nc e ma inta ine d

Ne t r e ve nue gr

  • wth

Q2: 44% (39% ) YT D: 38% (49% ) Adjuste d E BIT mar gin Q2: 4.9% (2.2% ) YT D: 2.4% (0.9% )

2

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SLIDE 3

K PI hig hlig hts

Custo me r sa tisfa c tio n

9.1 9.2

Q2 2017 Q2 2018

66 71

Q2 2017 Q2 2018

Custome r satisfac tion

T rustpilo t a nd NPS sc o re

Boozt.c om

T r ustpilot NPS

3

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SLIDE 4

K PI hig hlig hts

Orde r de ve lo pme nt

  • No. of or

de r s

(000)

Boozt.c om

641 869

Q2 2017 Q2 2018

+36%

Ave r age or de r value

765 801

Q2 2017 Q2 2018 SE K

+5%

4

1,151 1,507

YT D 2017 YT D 2018

+31% 775 810

YT D 2017 YT D 2018

+5%

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SLIDE 5

916 1,185

Q2 2017 Q2 2018

6.1 7.2

Q2 2017 Q2 2018

K PI hig hlig hts

Co ho rt de ve lo pme nt

Ac tive c ustome r s

Custo me rs who ma de a t le a st o ne o rde r during L T M (000)

Boozt.c om

+29%

  • No. of or

de r s pe r ac tive c ustome r

AOV SE K

2.3 2.4

Q2 2017 Q2 2018

T r ue fr e que nc y

Orde r fre q ue nc y fro m c usto me rs b uying in Q2 2017 (Q2 2016) a nd the fo llo wing 12 mo nths

5

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SLIDE 6

Inc re a sing sha re of wa lle t with strong e r c omple me nta ry c a te g orie s

Stre ng the ning the c a te g o rie s

Pr

  • mising sale s data

2/ 3 ar e mixe d baske ts Skin te st and othe r inspir ational ac tivitie s be ing adde d Ve r y str

  • ng br

and por tfolio with the addition of MAC, Kie hl’s and Ur ban De c ay

6

Be auty Spor ts/ Athle isur e Kids

Re - launc hing as a mor e de dic ate d spor ts/ athle isur e site L aunc h of adidas and Re e bok Gaining ac c e ss to fashion e nd of e xisting spor ts br ands Site will be se par ate d into te e ns and kids Inc r e ase d mar ke ting foc us Polar n O. Pyr e t launc he d

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SLIDE 7

F ina nc ia l upda te

Se c o nd q ua rte r 2018

7

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SLIDE 8

Re sults upda te

Gr

  • ss pr
  • fit

SE K millio n

Ne t r e ve nue

SE K millio n 917.3

1,266.6

YT D 2017 YT D 2018

Adjuste d E BIT

SE K millio n 220.1 300.4

Q2 2017 Q2 2018

Ma r g in 42.0% Ma r g in 44.4%

10.9 35.0

Q2 2017 Q2 2018

Ma rg in 4.9% Ma rg in 2.2% +38%

Group

8

496.1 714.7

Q2 2017 Q2 2018

+44% 407.2 516.4

YT D 2017 YT D 2018

Ma r g in 40.8% Ma r g in 44.4%

8.3 30.8

YT D 2017 YT D 2018

Ma rg in 2.4% Ma rg in 0.9%

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SLIDE 9

Ne t re ve nue b y se g me nt

Boozle t.c om

SE K millio n

Boozt.c om

SE K millio n 879.2

1,215.3

YT D 2017 YT D 2018

Othe r

SE K millio n 11.9 22.7

Q2 2017 Q2 2018

2.3 3.7

Q2 2017 Q2 2018

+38%

9

481.9 688.3

Q2 2017 Q2 2018

+43% 22.8 45.0

YT D 2017 YT D 2018

15.2 6.3

YT D 2017 YT D 2018

+97% +90%

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SLIDE 10

Adjuste d E BI T b y se g me nt

Boozle t.c om

SE K millio n

Boozt.c om

SE K millio n 6.1 31.1

YT D 2017 YT D 2018

Othe r

SE K millio n 0.4 2.4

Q2 2017 Q2 2018

  • 1.6
  • 4.9

Q2 2017 Q2 2018

10

12.0 37.4

Q2 2017 Q2 2018

1.7 6.4

YT D 2017 YT D 2018

+7.5% +3.7% +2.6% +0.7% +5.4% +2.5% +14.1% +10.7% 0.6

  • 6.6

YT D 2017 YT D 2018

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SLIDE 11

Co st ra tio de ve lo pme nt

Gro ss ma rg in Ma rke ting c o st ra tio De pre c ia tio n c o st ra tio Adjuste d fulfilme nt c o st ra tio Adjuste d a dmin & o the r c o st ra tio * Adjuste d E BIT ma rg in

Shar e of ne t r e ve nue , %

*whe re o f c o st o f pe rso nne l

11

44.4 (12.0) (1.8) 2.2 (15.2) (13.3) Q2 2017 Cha ng e

(2.3 pp) 1.8 pp 0.6 pp 2.4 pp 0.1 pp 2.7 pp

42.0 4.9 (13.4) (12.7) (9.5) (1.6) Q2 2018 (6.6)

0.7 pp

(5.9) 44.4 (12.5) (1.3) 0.9 (15.6) (14.1) YT D 2017 Cha ng e

(3.6 pp) 2.1 pp 1.0 pp 2.5 pp (0.5 pp) 1.5 pp

40.8 2.4 (13.4) (13.1) (10.0) (1.8) YT D 2018 (6.7)

0.7 pp

(6.0)

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SLIDE 12

113.6 10.5 2.5 6.7

Q2 2017 Q2 2018

F ixe d a sse ts I nta ng ib le s

17.4 133.9

Q2 2017 Q2 2018

K e y fina nc ia ls

85.9 126.4

Q2 2017 Q2 2018 SE K millio n (in % o f L T M re ve nue ) SE K millio n

Ne t wor king c apital CAPE X Ope r ational c ash flow

5.1% * 5.3%

SE K millio n

12

  • 80.9

126.2

YT D 2017 YT D 2018

116.5 11.8 4.8 12.6

YT D 2017 YT D 2018

* ne t wo rking c a p ita l a s a p e rc e nt o f ne t re ve nue wa s a ffe c te d b y e mp lo ye e s’ withho ld ing ta x fro m the 2012 wa rra nt p ro g ra m. Ad juste d fo r this the ne t wo rking c a p ita l p e rc e nta g e a t e nd o f Q2 2017 wo uld ha ve b e e n a p p ro xima te ly 7%

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SLIDE 13

Outlo o k

25- 30%

me dium te rm

>6%

me dium te rm

F

  • r 2018 the Gro up now e xpe c ts a ne t re ve nue g ro wth a bove 36%

(pre vio us a b o ve 33%). T he a djuste d E BI T ma rg in is e xpe c te d to impro ve slig htly c o mpa re d to 2017.

  • Bo o zt ta rg e ts a nnua l ne t re ve nue g ro wth in the

ra ng e o f 25- 30% in the me dium te rm

  • Bo o zt ta rg e ts a n a djuste d E

BI T ma rg in

e xc e e ding 6% in the me dium te rm

  • Bo o zt e xpe c ts to inc re a se the a djuste d E

BI T ma rg in a nnua lly a s the c o st b a se is furthe r le ve ra g e d b y ne t re ve nue g ro wth

Ne t re ve nue g rowth Adjuste d E BIT ma rg in

Me dium te rm (3-5 ye a rs po st I PO) ta rg e ts re ma in unc ha ng e d

13

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SLIDE 14

Disc la ime r

T he Co mpany’ s financ ial ta rg e ts se t fo rth abo ve c o nstitute fo rwa rd-lo o king info rma tio n tha t is sub je c t to c o nside ra ble unc e rta inty. T he financ ial ta rg e ts a re b a se d upo n a numb e r o f a ssumptio ns re la ting to , amo ng o the rs, the de ve lo pme nt o f the Co mpany’ s industry, b usine ss, re sults o f o pe ra tio ns and financ ial c o nditio n. Co mpany’ s busine ss, re sults o f o pe ratio ns and financ ial c o nditio n, and the de ve lo pme nt o f the industry a nd the mac ro e c o no mic e nviro nme nt in whic h the Co mpany o pe ra te s, ma y diffe r ma te rially fro m, and b e mo re ne g ative than, tho se a ssume d b y the Co mpany’ s whe n pre pa ring the financ ial ta rg e ts se t o ut a bo ve . As a re sult, the Co mpany’ s ab ility to re ac h the se financ ial ta rg e ts is sub je c t to unc e rta intie s and c o nting e nc ie s, so me o f whic h a re b e yo nd its c o ntro l, and no a ssuranc e c an b e g ive n that the Co mpany will b e able to re ac h the se ta rg e ts o r tha t the Co mpany’ s fina nc ial c o nditio n o r re sults o f o pe ra tio ns will no t b e ma te ria lly diffe re nt fro m the se fina nc ial ta rg e ts.

14

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SLIDE 15

Q&A

15

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SLIDE 16

I nc o me sta te me nt

APPE NDI X

16

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SLIDE 17

F ina nc ia l po sitio n (1 o f 2)

APPE NDI X

17

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SLIDE 18

F ina nc ia l po sitio n (2 o f 2)

APPE NDI X

18

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SLIDE 19

Ca sh flo w (1 o f 2)

APPE NDI X

19

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SLIDE 20

Ca sh flo w (2 o f 2)

APPE NDI X

20

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SLIDE 21

COMPANY OVE RVI E W

21

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SLIDE 22

5 middle a g e d me n se lling fa shio n…

Je spe r Brø nd um

CT O

Alla n Jung e -Je nse n

CF O

He rma nn Ha ra ld sso n

CE O

Nie ls He mming se n

COO

Pe te r G. Jø rg e nse n

CMO

22

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SLIDE 23

BUIL DING NOR DIC SCAL E

  • No rdic ro ll-o ut
  • Asso rtme nt e xpa nsio n
  • Inc re a se sha re o f

wa lle t a nd numb e r o f re turning c usto me rs

  • Ac c e le ra te g ro wth

2015 - 2016

ONL INE L E ADE R SHIP

  • Strive to wa rds

No rdic o nline ma rke t le a de rship

  • L

e ve ra g e the te c hno lo g y pla tfo rm

  • Inve st in

infra struc ture

  • Ma inta in disc ipline d

po rtfo lio ma nag e me nt

2017 -

De c 2017

SE K 191m

(tra nsa c tio na l ne t re ve nue )

2011 - 2013

L AUNCH OF BOOZT .COM

  • Ne w stra te g y

la unc he d a nd multi- b ra nd sho p o pe ne d

  • On-b o a rding o f

b ra nds

  • Cre a tio n o f a n

inte g ra te d te c h pla tfo rm

  • Ma rke ting fo c us in

De nma rk

Aug 2011

SE K 0.7m

(tra nsa c tio na l ne t re ve nue )

E XPANSION

  • On-b o a rding o f

b ra nds

  • Ge o g ra phic

e xpa nsio n

  • Ma rke ting fo c us in

De nma rk, Swe de n a nd F inland

  • Se c uring funding

2014 - 2015

E mb a rking o n a n e xc iting jo urne y

23

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SLIDE 24

Co mpe titive o ffe ring to mo de rn No rdic fa shio n fo llo we rs

One de stination for fashion

Cura te d, c onte mpora ry a nd re le va nt se le c tion

Car e fully se le c te d br ands with Nor dic appe al Attr ac tive c ustome r c har ac te r istic s F

  • c us on tar

ge t gr

  • ups whe r

e c onve nie nc e is ke y

Dive rsifie d c ustome r ba se with a ttra c tive fe a ture s

~70% ~85% ~55%

Wo me n L ive to g e the r Ha ve kids Custome r s age d 25- 54 r e pr e se nt >75% of ne t r e ve nue

We ll positione d to c a pture la rg e r sha re of the Nordic online a ppa re l ma rke t

2 1

E ntr y br a nds Pr e mium br a nds Comme r c ia l

24

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SLIDE 25

Attra c tive po sitio n in a ma rke t whe re sc a le ma tte rs

Produc t se g me nt foc us

Pre mium Co mme rc ia l E ntry pric e Ca tc h-a ll Cura te d

Bra nd stra te g y

Distinc t position ba se d on a c ur a te d Nor dic se le c tion… Illustr a tive Nor dic ma r ke t la ndsc a pe Boozt’s positioning de live r s a hig h AOV AOV e xc l. VAT in SE K (2017) Se le c tive ly a c tive in the No rdic re g io n

801 478 462 426 *Ca lc ula te d a s ne t re ve nue d ivid e d b y numb e r o f o rd e rs, numb e r o f o rd e rs a re ro und e d (sinc e re p o rte d in millio ns). Za la nd o , 2017 full ye a r, c o nve rte d to SE K with a n e xc ha ng e ra te o f 1 E UR = 9.6326 SE K , Ne lly 2017 full ye a r, Aso s full ye a r 2016/ 2017 (F Y e nd e d Aug 2017), c o nve rte d to SE K with a n e xc ha ng e ra te o f 1 GBP =10.9896

25

*

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SLIDE 26

Why AOV ma tte rs… in sa me size b usine ss

T he r e la tive hig h AOV le a ve s r

  • om for

hig h ma r ke ting … Cost split pe r

  • r

de r If low AOV… g r

  • ss ma r

g in would ha ve to be hig he r Challe nging to dr ive gr

  • wth & pr
  • fit without be tte r

GM… .

787

451 114 102 89 12 19

531

304 114 69 60 8

  • 24

57.3% 14.5% 13.0% 11.3% 1.5% 2.4%

Go o ds fo r re sa le F ulfilme nt & dist. Ma rke ting Ad min & sta ff o pe x De pre c ia tio n E BIT Go o ds fo r re sa le F ulfilme nt & dist. Ma rke ting Ad min & sta ff o pe x De pre c ia tio n E BIT

57.3% 21.5% 13.0% 11.3% 1.5%

  • 4.6%

6.0% 2.4% 50.3%?

26

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SLIDE 27

Why sc a le ma tte rs…

T he r e la tive hig h AOV le a ve s r

  • om for

hig h ma r ke ting … Cost split pe r

  • r

de r Sc a le will dr ive pr

  • fit… e ve n a t lowe r

g r

  • ss ma r

g in Re gional foc us will dr ive mar ke ting down… .

787

451 114 102 89 12 19

787

57.3% 14.5% 13.0% 11.3% 1.5% 2.4% Go o ds fo r re sa le F ulfilme nt & dist. Ma rke ting Admin & sta ff o pe x De pre c ia tio n E BI T Go o ds fo r re sa le F ulfilme nt & dist. Ma rke ting Admin & sta ff o pe x De pre c ia tio n E BI T Ab o ve 6%

27

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SLIDE 28

K e y suc c e ss fa c to rs in No rdic o nline fa shio n

  • Re le va nt a nd

c ura te d se le c tio n

  • Pe rso na lise d ye t

”po we r to the pe o ple ”

  • Nud g ing a nd no t

fo rc ing

  • Pa y T

HE(rig ht) pric e

  • Se a mle ss use r e xpe rie nc e a c ro ss pla tfo rms
  • Co nve nie nt d e live ry a nd re turn o ptio ns
  • E

a sy a c c e ss c usto me r c a re

  • F

a st fre e d e live rie s

  • F

a st fre e re turns

E ASE SPE E D PRICE RE L E VANCE

28

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SLIDE 29

A pre re q uisite fo r suc c e ss is a we ll inve ste d, da ta drive n o pe ra ting pla tfo rm

Pur pose - built infr astr uc tur e e nable s full c ontr

  • l
  • ve r

the c ustome r jour ne y

Ads T V E mails

Ma rke ting

Affiliate So c . me dia F ilte r + se arc h Sale s advic e F raud c he c k Payme nt validatio n Disc o unts

Sa le s

Re turn + re fund Ope n pac kag e Re vie w Rating Pic kup + de live ry

F ulfilme nt Custome r se rvic e

Chat E xc hang e Pho ne E mails So c . me dia

T he sola r syste m T he ha lo

29

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SLIDE 30

Re le va nc e thro ug h so phistic a te d use o f BI G da ta , AI a nd ML

So c ia l da ta Distrib utio n da ta

Boozt solar syste m

Pa yme nt da ta Ma rke t da ta

Data lake Data quantific ation

Da ta a na lysis Da ta mode l

  • Custo me r

se g me nta tio n

  • Bra nd

c la ssific a tio n

  • Re turn pa tte rns
  • Pre d ic tio n o f ne xt

purc ha se

  • Pe rso na lize d

pro d uc t re c o mme nd a tio n

  • Custo me r se rvic e

c a te g o risa tio n 30

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SLIDE 31

Ane c do te s a re fine , b ut da ta rule s

31

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SLIDE 32

Ce ntra l a nd a uto ma te d wa re ho use in so uthe rn Swe de n

1) E stima te d c a pa c ity b a se d o n 43,500 m 2 in to ta l a re a is ~500,000 b ins a nd ~500 pic king ro b o ts. 2) Assuming a c o nsta nt AOV. So urc e : Co mpa ny da ta .

450,000+ SK

U lo c a tio ns Ca pa c ity o f

3,000,000+

ite ms

Base d on AutoStor e solution 4 da ys fro m

pro duc t a rriva l to in we b sto re Re turns b e ing re funde d within

24 hour s >2,500

  • rde rs pe r

ho ur in ha ndling c a pa c ity T he ne w wa re house in ope ra tiona l sinc e the e nd of Ma rc h 2017 Ne xt da y de live ry to se ve ra l Nordic a re a s

Custom- built to de live r c onve nie nc e and de signe d for 3- 4x 2017 ne t r e ve nue 2)

  • 180,000 bins1)
  • 151 pic king r
  • bots1)
  • ~90% of pr
  • duc ts to be handle d in the “gr

id”

32

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SLIDE 33

…e na b ling b e st in c la ss de live ry pro po sitio n

1- 2 da ys Ne xt da y Sa me da y Ne xt day Same day 1- 2 days

Se r ving 90% of the Nor dic r e gion with 100%

  • f the assor

tme nt within same or ne xt day

Q2 2018 De live r y r e a c h Cur r e nt sha r e of

  • r

de r s

99%

Popula tion

(millio n)

18.8

25.0 0%

80%

95%

30% 90%

3.5 100% 100% 100%

Ra ng e

  • f a sso rtme nt
  • f a sso rtme nt
  • f a sso rtme nt

33

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SLIDE 34

Automation Phase 1

2017

…with mo dula r e xpa nsio n driving sc a la b ility

Building o f ne w wa re ho use ne xt to c urre nt sta rts in 2020

2 billion

We ar e he r e !

Automation Phase 2

2017/ 2018

Ne gotiations r e gar ding phase 3&4 c omme nc e Automation Phase 3

2019/ 2020

1 2 3 4

Automation Phase 4

2020/ 2021

4-6 billion 6-8 billion 3-4 billion

Re ve nue c a pa c ity

34

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SLIDE 35

Co ho rt b e ha vio ur sug g e sts ”a nnuity-like -CL V”

NE W

Cohor ts a r e str

  • ng a nd loya lty is built fa st – loya l c ustome r

s e xpa nd the ir tr a nsa c tions with us

Ne t re ve nue

E xpe c te d “as is” 2018 r e ve nue fr

  • m 2017 c ohor

t = 100%

500 1,000 1,500 2,000 2014 2015 2016 2017

L

  • yal c usto me r

Co nve rting to lo ya l Ne w c usto me r

35

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SLIDE 36

Gro wing a s fa st a s unit e c o no mic s ma ke se nse

Co ntrib utio n ma rg in de ve lo pme nt

F irst ye a r Ye a r + 1 Ye a r + 2 Ye a r + 3 Ye a r + 4 Ye a r + 5

Initial ne gative c ontr ibution fr

  • m ne w

c ustome r s…

Ac c umula te d CL V fo r Bo o zt.c o m

F irst ye a r Ye a r + 1 Ye a r + 2 Ye a r + 3 Ye a r + 4 Ye a r + 5

Custo me r life time va lue (CL V)

… followe d by ste e p ac c umulation in live time value

CL V is de fine d a s g ro ss pro fit le ss fulfillme nt & distrib utio n a nd ma rke ting c o sts a ttrib uta b le to a pa rtic ula r c usto me r c o ho rt.

36

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SLIDE 37

Appa re l is a la rg e ma rke t in the No rdic s

No te : Ap p a re l re ta il ma rke t is d e fine d a s the a g g re g a tio n o f the c lo thing a nd fo o twe a r ma rke t (inc luding sp o rts). T he ma rke t d a ta c o ve rs re ta il sa le s o f a p p are l thro ug h b o th sto re -b a se d re ta ile rs a nd no n-sto re re ta ile rs. It e xc lud e s b la c k ma rke t sa le s (i.e . unta xe d , g e ne ra te d within info rma l re ta iling ) a nd d uty fre e sa le s (tra ve l re ta il). Ite ms must b e ne w whe n so ld to the c o nsume r; se c o nd -hand/ use d ite ms a re e xc lud e d . Antiq ue a nd / o r vinta g e c lo thing a nd fo o twe a r is a lso e xc lud e d . All d a ta fro m Euro mo nito r Inte rnatio nal use d in this se c tio n is b a se d o n re ta il sa le s p ric e s (inc luding VAT ), e xp re sse d in no minal te rms a nd a ssume s fixe d c urre nc y ra te s a g a inst SEK

  • f 9.44 (EUR), 1.07 (NOK

), 1.27 (DK K ), 10.98 (GPB) a nd 8.88 (USD). So urc e : Euro mo nito r Inte rnatio nal Be a uty a nd Pe rso na l Ca re 2017 e d itio n, Co nsume r Ele c tro nic s 2017 e d itio n, Co nsume r Ap p lia nc e s 2017 e d itio n, Co nsume r He a lth 2017 e d itio n, Ap p a re l a nd F

  • o twe a r 2017 e d itio n. Euro mo nito r d o e sn’ t re se a rc h Ap p a re l, Co nsume r

Ele c tro nic s a nd Co nsume r Ap p lia nc e s in F inland , the re fo re to e stima te the to ta l No rd ic ma rke t, ma na g e me nt e stima te s fo r F inla nd use d a s fo llo ws: Ap p a re l: SEK 35 b illio n; Co nsume r e le c tro nic s: SEK 35 b illio n a nd ; Co nsume r a p p lianc e s: SEK 6 b illio n.

38

44 6 11 4

223

100 56 44 34 Appa re l Co nsume r E le c tro nic s Be a uty a nd Pe rso na l Ca re Co nsume r Applia nc e s Co nsume r He a lth

Nor dic ma r ke t size

(SE K b n)

9,700 9,200 8,600 5,300 US No rdic s UK E uro pe

T

  • ta l a ppa r

e l spe nding pe r c a pita

(2016 in SE K , ro unde d to the ne a re st hundre d)

Appa r e l is one of the la r g e st c onsume r c a te gor ie s… … dr ive n by hig h spe nd pe r c a pita

Online T

  • ta l

37

slide-38
SLIDE 38

Stro ng g ro wth po te ntia l in

  • nline fa shio n in the No rdic s

T

  • ta l ma r

ke t

SE K 279bn

SE K ~125bn

SE K ~84bn

So urc e : Co mpa ny da ta a nd E uro mo nito r.

No rdic a ppa re l & b e a uty ma rke t (2017)

Pe ne tra tio n AND c o nso lida tio n

Online pe ne tr ation le ve ls at var ious stage s hint to the mar ke t pote ntial

SE K ~45bn

T ODAY

@ 16% o nline pe ne tra tio n @ 30% o nline pe ne tra tio n

2027?

@ 45% o nline pe ne tra tio n

38

slide-39
SLIDE 39