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Investor & Analyst Presentation Semi-Annual Report 2016 Dr. Cornelius Patt, CEO August 18 th , 2016 Safe Harbor Statement This document includes supplemental financial measures that are or may be non-GAAP financial measures. These

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Investor & Analyst Presentation

Semi-Annual Report 2016

  • Dr. Cornelius Patt, CEO

August 18th, 2016

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Investor & Analyst Presentation 201608 | page 2

This document includes supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of zooplus’ financial condition, results of operations

  • r cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe

similarly titled financial measures may calculate them differently. This document contains statements related to our future business and financial performance and future events or developments involving zooplus that may constitute forward-looking statements. We may also make forward-looking statements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of zooplus’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond zooplus’ control, affect zooplus’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of zooplus to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Further information about risks and uncertainties affecting zooplus is included throughout our most recent annual and interim reports, which are available on the zooplus website, www.zooplus.de. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of zooplus may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. zooplus neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Safe Harbor Statement

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Investor & Analyst Presentation 201608 | page 3

zooplus profitable sales growth continued in H1 2016

» Sales increased by 29% to € 428 m

− European market leader position in online retailing sustained − Double-digit growth rates in all 30 European markets

» Further improvement of cost structure

− Improvements in all major cost positions support cost leadership position in the category

» Positive result before tax (EBT) of € 5.1 m

− Increased from € 3.6 m in prior year

» Positive free cash flow of € 8.7 m

− Increased from € 5.8 m in prior year

» Sales guidance for 2016 raised, EBT guidance confirmed

− Sales of more than € 900 m expected (before: more than € 875 m) − Earnings before tax (EBT) between € 14 m and € 18 m

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Investor & Analyst Presentation 201608 | page 4

+88 +67 +136

Repeat customer sales New customer sales

+168

2010

178

+74

245

2016e

>900

2015

71 1

2014

543

2013

407

2012

319

2011

>189

Sales growth vs. PY

zooplus’s strong sales growth will continue and more than € 900 m sales should be reached in 2016

Sales 2010 – 2016e

in € m, Based on organic growth in European countries (1st year)

81% 79% 85% 91% 94% 93%

38% >26% 31% 33% 28% 30%

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Investor & Analyst Presentation 201608 | page 5

33%

Food Non-Food

1 1%

+29%

333

H1 2015

428

H1 2016

in € m

Sales have seen another strong increase in H1 2016

Sales (€ m) Sales growth by category (in % vs. PY)

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Investor & Analyst Presentation 201608 | page 6

16%

Food Non-Food

35% 168

+31%

221

Q2 2015

in € m

Q2 2016

Sales growth in Q2 2016 has even been stronger than in Q1 2016

Sales (€ m) Sales growth by category (in % vs. PY)

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Investor & Analyst Presentation 201608 | page 7

Strong quarter on quarter sales development

in € m

Quarter 1 Quarter 2 2 2 2 Quarter 3 3 3 3 Quarter 4 4 4 4

+ 43.2

92.8 207.8 164.6 120.7 97.4 124.1 168.3 102.5 140.0 178.0 1 14.3 158.3 200.3

2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2013 2013 2013 2013 2014 2014 2014 2014 2013 2013 2013 2013 2014 2014 2014 2014 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2016 2016 2016 2016

220.6

+ 52.3

2016 2016 2016 2016

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Investor & Analyst Presentation 201608 | page 8

Markets continue to be price competitive – zooplus well prepared to defend its strategic position

» Continued focus on

sustainable dog / cat food customers for higher life-time- value

» Ongoing strong

competition in the markets

» zooplus will defend

its high customer retention H1 2016

1 Share of food on sales 3 Gross margin + other income on sales 2 Sales - CoGS

Product mix1

H1 2016

+2.9%p 82.0%

H1 2015

79.1%

Gross margin2

In % of sales In % of sales

Total margin3

H1 2016

  • 2.5%p

27.4%

H1 2015

24.9%

H1 2016 H1 2015

  • 1.1%p

30.7% 29.6%

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Investor & Analyst Presentation 201608 | page 9

Additional efficiency gains and scaling effects lead to a further reduction of the cost ratio in H1 2016

Total margin & Cost structure (in % of sales)

Total margin1

H1 2016

1 Gross margin + other income on sales

» Extremely efficient

marketing and new customer acquisition

» Further cost reduction

in logistics and payment

» Scaling effects in

personnel & IT /Admin

29.6% 30.7% 20.1% 19.7% 2.9% 3.1%

H1 2015

29.6%

3.6%

  • 1.1%p

H1 2016

28.4%

3.2%

Payment Logistics IT /Admin / (incl. depreciation & interest) Personnel Advertising / Marketing

1.6% 1.6% 1.1% 1.0%

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Investor & Analyst Presentation 201608 | page 10

2.9% 3.5% 3.6% 5.6% 2.9% 24.0% 22.8% 21.2% 19.7% 20.1% 2.6% 6.1%

35.2%

2013 3.9% 4.7% 2011

42.4%

5.0%

28.4%

H1 2016 3.2% 2015

29.7%

3.5% 2014

31.1%

H1 2016 continues in the strong effort to further improve cost leadership position in the category

… Total margin & Cost structure (in % of sales)

1 gross margin + other income on sales

32.8% 31.6% 36.1%

Total margin1

40.9% 29.6%

IT / Admin / (incl. depreciation & interest) Personnel Payment Advertising/ Marketing Logistics

1.7% 1.5% 1.8% 1.3% 1.5% 1.1% 1.6% 1.0%

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Investor & Analyst Presentation 201608 | page 11

zooplus EBITDA and earnings before tax (EBT) above prior year

EBITDA (€ m) EBT (€ m) 4.1

H1 2015

5.7

H1 2016

+1.6 3.6

H1 2015

+1.5 5.1

H1 2016 1.2% 1.3% 1.1% 1.2%

in % of sales in % of sales

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Investor & Analyst Presentation 201608 | page 12

Free cash flow continues to be positive in H1 2016

Free Cash Flow (€ m) H1 2015 H1 2016 5.8

Cash Flows from investing activities

  • 1.4

Cash Flows from operating activities

7.2

Free Cash Flow

10.6

Free Cash Flow

8.7

Cash Flows from operating activities

  • 1.9

Cash Flows from investing activities

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Investor & Analyst Presentation 201608 | page 13

zooplus dominates online – and is rapidly catching up with the offline leaders

Market share zooplus and competitors 2015

CAGR: 2011-15: + 30%

Sales 2015: € 0.7 bn

Total pet supplies market Europe (incl. VAT):

~ € 25 bn (~ € 21 bn net)

CAGR: 2011-15: 2 - 3%

Source: Euromonitor, company information, zooplus estimation;

Sales 2015 :

~ € 1.5 bn

(+ 7%)

Online: ~ € 0.045 bn (+ 2% vs. PY)

Sales 2015:

Online: ~ € 0.02 bn

Sales 2015:

Other onliners:

Fressnapf

~ € 1.0 bn (+ 7%)

Pets at Home n/a

~ 50 %

market share zooplus online

~ 3.4 % market share online and offline

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Investor & Analyst Presentation 201608 | page 14

Sales 2016

HU

Source: zooplus sales, unaudited data, growth rates compared to H1 2015 rounded to 5%p-steps; market shares based on extrapolation of Euromonitor 2013 market data, zooplus estimation 2% growth p.a.

67 m

Total market 2015

Sales zooplus in 2015 DK, SE, FI, NO D,A,CH PL, CZ, SK, HU, RO, SI, HR, BG, TR, GR ES, PT

zooplus is the online market leader in all geographies of Europe – with the widest possible base for further growth

NL, BE, LU

+40% +35% +35% +35% +30% +45% +20% +20%

42 m 84 m

236 m

68 m

119 m

38 m 57 m

711 m

zooplus market share in 2015

5.3% 1.6% 2.8%

2.6% 2.1% 4.1% 5.5% 3.0%

3.4%

21 bn

Size of total market offline and online (sales)

» Sales H1 2016: € 428 m,

sales growth rate +29%

» Double-digit sales growth

rates in all countries

» Full year 2016e > € 900 m

UK, IE IT FR Sales growth in H1 2016 rounded to 5%p steps

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Investor & Analyst Presentation 201608 | page 15

Logistics capacity will be increased still in 2016 – next step is a new fulfillment center in Antwerp

2013 2015 Fulfillment center (FC) Potential FC under investigation 2009

» New fulfillment center planned for

Q4 2016 in Antwerp, Belgium with focus on container products and fast moving products

» Capacity increase in other existing

fulfillment centers

» Further locations still in planning

phase

» All FCs operated by partners;

no capex for zooplus

» Orderrouting and packing

algorithms intellectual property

  • f zooplus

2000/2011

2015 Q4/2016

New fulfillment center Antwerp

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Investor & Analyst Presentation 201608 | page 16

UK Brexit decision and GBP exchange rate development not favorable to zooplus in short term

» UK is the biggest market for pet supplies in Europe » Around 10% of zooplus’ sales are generated in the UK » zooplus will continue to strongly develop it’s business in the UK » However, devaluation of the GBP negatively affects zooplus’s UK sales and margins

from a group perspective – since Nov 2015 GBP to EUR has dropped by 16%

» Sourcing advantages from GBP devaluation are limited

03/16 02/16 01/16 04/16 11/15 06/16 12/15 07/16

1,20 1,30 1,40

05/16

FX-rate 1 GBP = x EUR

  • 16%
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Investor & Analyst Presentation 201608 | page 17

Strong impact on future profitability

Continued focus on retention and strong sales growth drives mid-term profitability

Strong sales growth means:

» Increased distance towards

competition / better strategic position

» Better purchasing terms in all

areas (CoGS & other services)

» More efficiency gains » More scale in overhead

Retention Sales growth Cost structure Profitability

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Investor & Analyst Presentation 201608 | page 18

EBT (€ m) 2016e

Sales guidance for full year 2016 raised - EBT guidance confirmed

2015

14 - 18 12.7

Guidance

Sales (€ m)

> 900 > +26 % 711 + 31 %

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H1 2016 results

Q & A

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Back-up: Key Financials

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Key Financials Q2 2016

P&L in € m Q2 2016 Q2 2015 ∆ ∆ ∆ ∆ abs ∆ ∆ ∆ ∆%p Sales 220.6 168.3 abs. 52.3 ∆ in % 31.1% Other income 11.3 5.1% 6.0 3.6% 5.3 1.6%p COGS 167.1 75.7% 123.4 73.3% 43.7 2.4%p Logistics 43.5 19.7% 33.3 19.8% 10.2
  • 0.1%p
Payment 2.2 1.0% 1.9 1.1% 0.3
  • 0.2%p
Customer acquisition 3.4 1.5% 2.4 1.4% 1.0 0.1%p Personnel 7.1 3.2% 6.2 3.7% 0.9
  • 0.5%p
G&A 6.2 2.8% 4.8 2.8% 1.5 0.0%p EBITDA 2.5 1.1% 2.3 1.4% 0.2
  • 0.2%p
I&DA 0.3 0.1% 0.3 0.1% 0.0 0.0%p EBT 2.2 1.0% 2.1 1.2% 0.1
  • 0.2%p
EPS in EUR (basic) 0.19 0.17 Balance Sheet Total Assets 171.6 Equity (Ratio in %) 97.7 56.9%
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Investor & Analyst Presentation 201608 | page 22

Profit & Loss H1 2016

in € m H1 2016 H1 2015 abs % abs % Sales 428.4 100.0% 333.0 100.0% Other income 20.2 4.7% 11.1 3.3% Cost of materials
  • 321.7
  • 75.1%
  • 241.9
  • 72.6%
Personnel costs
  • 13.8
  • 3.2%
  • 12.0
  • 3.6%
Depreciation
  • 0.5
  • 0.1%
  • 0.4
  • 0.1%
Other expenses
  • 107.4
  • 25.1%
  • 86.1
  • 25.9%
thereof logistics / fulfillment (-84.3)
  • 19.7%
(-67.0)
  • 20.1%
thereof marketing (-6.7)
  • 1.6%
(-5.3)
  • 1.6%
thereof payment (-4.4)
  • 1.0%
(-3.8)
  • 1.1%
thereof other costs (-12.0)
  • 2.8%
(-10.0)
  • 3.0%
Earnings before interest and taxes (EBIT) 5.2 1.2% 3.7 1.1% Financial income 0.0 0.0% 0.0 0.0% Financial expenses
  • 0.1
0.0%
  • 0.1
  • 0.0%
Earnings before taxes (EBT) 5.1 1.2% 3.6 1.1% Taxes on income
  • 2.1
  • 0.5%
  • 1.6
  • 0.5%
Consolidated net result 3.1 0.7% 2.1 0.6% Differences from currency translation
  • 0.1
  • 0.0%
0.1 0.0% Hedge reserve 1.3 0.3%
  • 1.0
  • 0.3%
Items that may be reclassified subsequently to profit or loss 1.1 0.3%
  • 0.9
  • 0.3%
Comprehensive income 4.2 1.0% 1.2 0.3% Earnings per share in € basic 0.44
  • 0.30
  • diluted
0.43
  • 0.29
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Investor & Analyst Presentation 201608 | page 23

Balance Sheet as of June 30st, 2016

Assets Equity and Liabilities

in € m June 30st, 2016
  • Dec. 31st, 2015
∆ ∆ ∆ ∆ abs A. Non-current assets I. PP&E 2.3 1.4 0.9 II. Intangible assets 8.5 8.0 0.4 III. Other financial assets 0.0 0.0 0.0 IV. Deferred tax assets 0.0 1.8
  • 1.8
Total non-current assets 10.8 11.3
  • 0.5
B. Current assets I. Inventories 69.0 74.5
  • 5.5
II. Advance payments 4.0 1.4 2.5 III. Accounts receivable 19.0 13.6 5.4 IV. Other current assets 12.6 18.3
  • 5.6
V. Derivative financial instruments 2.0 0.6 1.4 VI. Cash and cash equivalents 54.2 45.5 8.7 Total current assets 160.8 154.0 6.8 171.6 165.3 6.3 in € m June 30st, 2016
  • Dec. 31st, 2015
∆ ∆ ∆ ∆ abs A. Equity I. Capital subscribed 7.0 7.0 0.0 II. Capital reserves 93.0 92.8 0.2 III. Other reserves 1.1 0.0 1.1 IV. Profit and Loss carried forward
  • 3.4
  • 6.5
3.1 Total equity 97.7 93.2 4.4 B. Non-current liabilities 1.8 1.8 0.0 C. Current liabilities I. Accounts payable 33.6 35.3
  • 1.7
II Derivative financial instruments 0.0 0.5
  • 0.5
III. Other current liabilities 25.2 23.4 1.8 IV. Tax liabilites 0.9 0.7 0.2 V. Provisions 10.2 8.4 1.8 VI. Deferred income 2.2 2.0 0.2 Total current liabilities 72.1 70.3 1.8 171.6 165.3 6.3
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Investor & Analyst Presentation 201608 | page 24

Cash Flow H1 2016

in € m H1 2016 H1 2015 EBT 5.1 3.6 Cash flow from operating activities 10.6 7.2 Cash flow from investing activities

  • 1.9
  • 1.4

Free cash flow 8.7 5.8 Cash flow from financing activities 0.1 0.0 Net change of cash and cash equivalents 8.7 5.8 Cash on hand, bank deposits 54.2 37.8