Zooplus : 9M Results & Capital Markets Day Presentation November 17, 2020

Dedicated to pets … because we care

zooplus AG

First Virtual Capital Markets Day | November 17, 2020

SAFE HARBOR STATEMENT

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 or 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 based on 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.

2

AGENDA

PART I

10:00 am CET - 10:30 am CET

• Latest financials & business performance Q3 & 9M 2020
• Q&A Session

short break

PART II

10:40 am CET - 01:00 pm CET

• Update on strategy and overall business performance
• Outlook 2021
• Q&A Session

SPEAKERS

Dr. Cornelius Patt, CEO

Co-Founder of zooplus & CEO

Business units: Sales, Business Development, IT, HR

Andreas Maueröder, CFO

CFO, Member of the Board since 2020, joined in 2010 Business units: Finance, Legal & Vendor Management

Dr. Mischa Ritter, COO

COO, Member of the Board since 2018, joined in 2012 Business units: Logistics, Operations, Own Brands

PART I

Q3 & 9M 2020 Financials

KEY FINANCIAL HIGHLIGHTS - STRONGEST GROWTH PERFORMANCE IN COMPANY HISTORY & RECORD OPERATING PROFITABILITY

SALES (in m EUR)
		+18%
+13%		1,299
	1,104	+195
974	+130	m EUR
		m EUR
9M 2018	9M 2019	9M 2020
+14%		+16%
	436
	378	+59
331	+47
	m EUR
		m EUR
Q3 2018	Q3 2019	Q3 2020

New Customer Sales

Existing Customer Sales

% EBITDA margin

EBITDA (in m EUR, in % of sales)

0.0%	0.6%	3.7%
		47,8
-0,5	6,7
9M 2018	9M 2019	9M 2020
1.4%	0.6%	4.2%
		18,4
4,5	2,2
Q3 2018	Q3 2019	Q3 2020
		6

SUSTAINABLE GROWTH DRIVEN BY RECURRING SALES &

HEALTHY NEW BUSINESS

#stayhome extra sales	Re-acceleration of q-o-q	Q4 2020 expected to
boost driven by	performance driven by	reach an annual run-
temporary spike in order	increased average basket	rate of ~2 bn EUR
volume	size and frequency

																			490
				440					423					436				419	+70
																	m EUR
			363	+77				363	+60				378	+59			368
			m EUR						331		m EUR
		323				320							316
							m EUR
	257					260					278				253
208					221					227
2016	2017	2018	2019	2020	2016	2017	2018	2019	2020	2016	2017	2018	2019	2020	2016	2017	2018	2019	2020e
		Q1					Q2					Q3					Q4
																			7

KEY OPERATIONAL HIGHLIGHTS - SOLID EXECUTION IN 9M 2020 BUSINESS HAS IMPROVED ACROSS ALL MAJOR KPI

			9M 2018		9M 2019		9M 2020
Revenue Retention Rate1	95%	91%		97%
New Customer 2nd Order Sales	+16%	-6%		+17%
Customer Acquisition Cost (in €)	9	15		9
Own Brands Share2	14%	16%		18%
Gross Margin (% of Sales)	28.0%	28.5%		30.5%
Basket Size (in €)	54	55		57
Operational Efficiency3	21.7%	21.0%		20.8%
(in % of Sales)

• Revenue retention rate increases to historical high of 97% end of September 2020
• Sustainable topline performance through improved early-stageloyalty
• More efficient acquisition strategy improving CAC
• Own Brands share increase creates higher leverage for gross margin steering
• Basket size is valuable efficiency driver offsetting logistics cost per parcel

1. Revenue retention calculated as of 12 months rolling (net, non-BMF)
2. Share of total food and litter sales

3) Logistics costs + payment costs + customer care costs

8

REVENUE RETENTION RATE CLIMBS TO A NEW

ALL-TIME HIGH OF 97% IN Q3'20 - INVESTMENTS INTO LOYALTY ARE PAYING OFF

REVENUE RETENTION RATE1 (in % of sales)
							 Maintained 97% of revenue on average
						97%		of all customers acquired
								12 months prior to end of Q3 2020
						Only ~3%		Revenue retention rate reaches highest
					95%	revenue
						value ever in 20-year company history
					loss vs.
				94%		previous		with a record high 98% as end of
					period
						October 2020
93%								Better customer lifecycle-management
	92%							of newer cohort increasing early-stage
		91%	91%					loyalty:
						 Higher activation in early-stage
								cohorts
								 Higher basket size vs. early-stagein
								older cohorts
								 Stronger push for loyalty tools with
Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020		first transaction (Subscribe & Save,
								Bonus Points)

1) Revenue retention calculated as of 12 months rolling (net, non-BMF)

9

GROWTH STRATEGY - FOCUS ON ACTIVE REPEAT CUSTOMERS AND SALES PER ACCOUNT

ACTIVE CUSTOMER BASE (in k)		ACTIVE REPEAT CUSTOMER BASE (in k)

+9%	8,094
7,429
233 EUR	255 EUR
per account1
per account1
Sep 30, 2019	Sep 30, 2020

+15%	4,888
4,234	379 EUR
364 EUR
per account1
per account1
Sep 30, 2019	Sep 30, 2020

• Customers with at least one order in the last 12 months
• Reduced intake of low-qualitynew accounts in 2020, correcting the 2019 marketing campaign issues
• By far largest active customer base in European peer group comparison

1) Average gross revenue per customer in the last 12 months

• Customers with at least two orders in the last 12 months
• Adjusting for one-time purchasers in the last 12 months, counting only customers with inclination for repurchases
• Y-o-Yincrease in revenue per active account underlines further monetization potential from loyal customer base
• More suitable indicator for the company's future topline growth

10

GROSS MARGIN UPLIFT THROUGH OPTIMIZED STEERING OF

PRODUCT SALES MIX

GROSS MARGIN1 (in %)
		30.5%	 Optimized steering of product sales
			mix enabled gross margin
		+2.0%p	improvements which were not at the
		vs. PY	expense of our customers
			 Significantly reduced share of loss-
	28.5%		making orders through dedicated yield
		management
28.0%			 Increased own brands share on food
			also contributed to gross margin
			improvement
			 Surge in accessories demand with
			additional positive effect on gross
			margin
9M 2018	9M 2019	9M 2020

1) Gross margin = sales - cost of goods sold (as % of sales)

11

STRONG INCREASE IN BASKET VALUE - MAIN DRIVER FOR LOGISTICS EFFICIENCY

AVERAGE BASKET VALUE (NON-BMF; in EUR)

54.5

57.2

+2.4 EUR

vs. PY

54.8

• Increasing basket value is our strategic driver for additional revenue at high margins
• The average cost of fulfillment for the average basket value is fully variable and around 20% of total logistics costs (excluding inbound, packaging and last-mile cost)
• However, the logistics costs of any additional Euro to the current average basket size drop to one-third of the average logistics cost

9M 2018

9M 2019

9M 2020

Based on order date

12

COST EFFICIENT OPERATIONS CREATING MOAT FOR ONLINE AND OFFLINE COMPETITORS

COST STRUCTURE (in % of SALES)

28.2%

27.1%

Ad./Marketing	3.3 %	1.6 %

Logistics	18.3 %	18.1 %
Payment1
	1.1 %			1.1 %
IT / Admin / FX	2.0 %		2.6 %
Personnel2	3.5 %		3.7 %
		9M 2019	9M 2020

• Strong efficiency in customer acquisition and reduced marketing spend also reflecting budget shift into early-stage loyalty spend (included in gross margin)
• Larger baskets prompting for higher value per parcel, offsetting additional cost for higher FC capacity & fully offsetting additional logistics cost related to protective Covid-19 measures
• Increase in IT / Admin / FX cost base reflecting higher non-operatingexpenses for strategic projects
• Personnel expenses including one-off costs related to changes in organizational structure and performance remuneration

1)	Impairment expenses on financial assets reclassified to payment	13
2)	Including LTI & SOP; own work capitalized reclassified to personnel

STRONG FREE CASH FLOW GENERATION ENABLES US TO CONTINUE OUR GROWTH PATH

FREE CASH FLOW GENERATION 9M 2020 (in m EUR)

56

53

48

- 3

+43

m EUR

vs. PY

Cash flow from	Cash flow from	Free cash flow	EBITDA
operating activities	investing activities

• Strong cash flow and EBITDA performance in 9M 2020
• Free cash flow stands at 110% of
  EBITDA level
• Limited CAPEX requirements for the business
• Strong free cash flow generation enables zooplus to finance further growth while continuing to invest into customer proposition and digital experience

14

WORKING CAPITAL INTENSITY CONTINUOSLY REDUCED MORE THAN OFFSETTING THE GROWTH IMPACT

SOLID PROGRESS IN WORKING CAPITAL

~25d

~21d

~17d

~15d

~12d

10.4%~10d

8.7%

7.1%

4.7%

3.6% 3.1%

2015

2016

2017

2018

2019

09/2020

Working Capital in % of sales Payment days of goods suppliers

• Further optimization in working capital (main driver: increase in payment days on procurement side) supporting financial flexibility
• In 2015, zooplus generated 711 m EUR in sales having an average working capital of 74 m EUR
• As of September 2020 (based on LTM), zooplus generated sales of 1,718 m EUR with an average working capital of 53 m EUR
• We combined a sales growth of 1 bn EUR with a reduction in Working Capital by more than 20 m EUR

Working Capital = Inventory + prepayments + receivables (trade receivables + supplier receivables) - payables

15

COVID-19 AND PET SUPPLIES CATEGORY IN EUROPE RESULT IN TACTICAL IMPACT ON BUSINESS

Consumption patterns remained unchanged in our category

OPEN

Offliners were classified as essential and did

not go out of business

Served as a push for first-time e-commerceusage in our category in some regions

Helped us temporarily reduce our ad spend without losing reach

Organic Traffic

Paid Traffic

16

FULLY ON TRACK TO ACHIEVE 2020 FINANCIAL TARGETS -

FINANCIAL GUIDANCE CONSECUTIVELY INCREASED

SALES GUIDANCE 2020e (in m EUR)	EBITDA GUIDANCE 2020e (in m EUR)

+16%+16-19%

50-65

1,770-1,810

~1,765

		+266			At least 40
	+240	m EUR
	vs. PY
	m EUR
	vs. PY

2020e	2020e	2020e	2020e
July 14, 2020	October 15, 2020	July 14, 2020	October 15, 2020

Guidance March 25, 2020: Sales growth of at least 180 m EUR (total: at least 1,704 m EUR) EBITDA below prior year's level, but in positive to neutral vs. PY

17

Q&A

Live

Session

Please post your questions in the chat window under the video panel of this webcast

AGENDA

PART I

10:00 am CET - 10:30 am CET

• Latest financials & business performance Q3 & 9M 2020
• Q&A Session

short break

PART II

10:40 am CET - 01:00 pm CET

• Update on strategy and overall business performance
• Outlook 2021
• Q&A Session

ZOOPLUS AG: THE DEDICATED PET SPECIALIST - REASONS TO INVEST IN ZOOPLUS AG

Recurring revenue model

Deep bonds with customers

Market opportunity in Europe

Operational excellence & efficiency

Strategic brand and product portfolio mgmt

• Continued & recurring nature of demand of pet food & supplies - resilient category
• Subscription-likebusiness model with >90% recurring sales
• Locked-incustomer sales through customer satisfaction
• Unique loyalty enhancing digital products such as subscribe & save
• Highly loyal and growing returning customer base
• Best-in-class data & category-driven customer proposition and e-shoppingexperience
• Market opportunity of net 26 bn EUR growing at ~4% p.a.
• Dominant competitive position & by far largest player in e-commerce vertical
• Continue to add share from offline business on the back of general trend in grocery towards e-commerce
• zooplus consistently performing amid challenging circumstances
• Operational excellence driven by intelligent pricing, cost efficient marketing, excellent collaboration with partners
• Scalable logistics efficiency and continued operational improvements supported by category know- how and data-drivenapproach
• Recurring revenues with customers & tailored loyalty tools deepen the bond with our customers and open new ways to up- and cross sell our high-marginpremium, longtail accessories brands, and own brands
• Own brands within mid- to super-premiumsegment with strong stand-alone retail capacity & ideally tailored for e-commerce distribution

20

PART II

Recurring Revenue Model

STRONG RECURRING REVENUES IS THE WINNING FORMULA FOR SUSTAINABLE GROWTH

SALES (in m EUR)

			232
	1,111		+21%
	131
	63 (5.7%)
	140

RR 94.3%

840

																1,790
											266				135
							1,524			+17%
				181					170
				+13%													1,485
							155
1,342						39 (2%)
143								146
150	120 (9%)
							RR 98%				>90%
				RR 91%												1,485	Recurring
								1,223										revenue
1,048

2017	2018	2019		2020e
First transaction revenue	Consecutive transaction revenue		Recurring revenue				Revenue churn

RR = Revenue retention (net, BMF)	22
Total new revenue: 2017: 271 m EUR, 2018: 293 m EUR; 2019: 301 m EUR; 2020e: 305 m EUR

REVENUE RETENTION ABOVE 90% FOR ALL COHORTS - MORE MATURE COHORTS AT 100% OR ABOVE

SALES (in m EUR)

93%

			98%
				1,790
		91%		305m
		1,524
	94%3
	1,342	301	91%	273
1,111	293	85%

2020 cohort

2019 cohort

	85%
320		408
	135
125	70%	87
194	95%	185
0.77	101%	0.77
2012		2013

				92%1
		94%			909
91%			711		253
	544		202	83%	167
	174	83%	145	88%	127
78%	105	90%	95	96%	91
91%	79	99%	78	99%	77
100%	185	103%	191	101%	193
99%	0.76	104%	0.79	106%	0.84
	2014		2015		2016

86%

86%

94%

97%

99%

100%

99%

							249		91%	227
271		94%	254
				84%	214		98%	210
217		87%	189		92%	173		100%	174
144		94%	136m	94%	128m	101%	129m
119		96%	115		96%	110		102%	111
88		98%	87		97%	84		103%	86
77		99%	76		98%	75		103%	77
194		99%	193		99%	190		103%	197
		96%				102%				104%
0.83			0.79			0.81			0.84
2017			2018		2019			2020e

2018 cohort

2017 cohort

2016 cohort

2015 cohort

2014 cohort

2013 cohort

2012 cohort

2001-2011 cohort

2000 cohort

Sales 2000: 2.2 m EUR	23
In local currencies: 1) 94% 2) 95%

REVENUE RETENTION RATE HAS RECOVERED AND IS HEADING TOWARDS THE 100% MARK

REVENUE RETENTION (in % of sales)

					Confirmed success	98.1%
					of focus on loyalty
					Covid-19	96.4% 96.8%
		95.1%			peak	95.4%
95.2% 95.1%			95.1%
		94.7% 94.6%			94.2%94.2% 94.3%
		94.1%
		93.4%
		92.8% 92.8%
		92.2%			91.8%
		91.5%	91.2%	91.4%
		91.1%	90.9% 91.0%	91.1%

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

2018 2019 2020

Revenue retention calculated as of 12 months rolling (net, non-BMF)

24

SALES PER ACCOUNT WITH SHARP INCREASE ACROSS

ALL CUSTOMER LIFECYCLE STAGES IN 2020

SALES PER ACCOUNT OF ACTIVE REPEAT CUSTOMERS

379 EUR  Sales per account increased from

			361 EUR (Jan 2019) to 379 EUR
			(Oct 2020)
		 2019 with clear sideways
			movement
	371 EUR		March 2020 shows a distinct
			Covid-19peak due to stockpiling
		 April / May 2020 rebalancing (of
			stockpiling)
361 EUR			Fundamental upwards trend in
			sales per account resumes in June
			2020
		 Sales per active repeat account
Jan 2019	Feb 2020	Oct 2020	increased by 4%

Note: active repeat customers = at least 2 orders within last 12 months

25

THE POWER OF RETENTION: A 98% VS. 91% RETENTION RATE CAN CREATE SIGNIFICANTLY HIGHER CUMULATED RECURRING SALES

SIMULATION OF SALES WITH DIFFERENT REVENUE RETENTION RATES

+140%

98% RR

1.79 bn EUR	+55%
	91% RR

• Starting from 2020 with sales of
  1.79 bn EUR as base year
• Simulation of revenue contribution to recurring revenue base until 2030 with revenue retention level 2019 (91%) and revenue retention level October 2020 (98%)
• Simulation calculated with a steady new cohort growth of 300 m EUR in both scenarios
• Simulated revenue figures 2030: 98% RR: 4.3 bn EUR
  91% RR: 2.8 bn EUR

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Note: 2030 figure projections are based on simulation at time of Q3 2020 results publication and are not part of Group guidance

26

PART II

Deep Bonds with Customers

CUSTOMER INSIGHTS: MOST OF OUR CUSTOMERS ARE WOMEN WITH CATS OR DOGS

Gender
77%
	23%
Female	Male

		Age
		26%	25%
	21%
				18%
10%
18-29	30-39	40-49	50-59	>60

Residence

36%

31%33%

4.9m active repeat customers across Europe	Pet types
70%
	52%

10% 8%

16%

City /	Suburb /	Country
Large Town	Small Town

Cats Dogs Fish Small Other animals

Source: Persona Survey 2020; Overall n = 15633; Demographic data based on customers from following country markets: Germany, France, Italy, The Netherlands, UK, Spain, Belgium, Switzerland and Poland	28
Source: Persona Survey 2020; Overall n = 15633;
Active repeat customer base as of Q3 2020

Device usage

Channel usage z+ purchase profile

Favorite brands

2	1	3

High regularity shoppers

HQ Brand

Loyalists

2	1	3

Anna

The dedicated pet parent

Age: 42

Family status: married,

2 children, 4 pets Living area: Country Occupation: Part-time job, kindergarten teacher

She is a family-oriented person who values quality and is loyal to known brands. Mainly buying from their trusted (online) shops, once every 3-4 weeks. Trust is very important for her as well as an understandable order process since she is not a digital native.

Personality traits

Interests

Secure

Insecure

Animals

Trusting

Skeptical

Parenting

Open-minded

Narrow-minded

Gardening

Disciplined

Indisciplined

Individualistic

Group-oriented

Home decoration

Purchase behavior	Relevant products
	Pet Food
	Snacks
Loyalty strength	Litter & Hay
	Accessories
	Pharmaceuticals
Low	High

Source: Persona Survey 2020, N = 15633, 9 Countries / Social Media Analysis January 01, .2019 - April 30, 2020 / Internal Data

Pet profile

Name: Charly * Adopted Age: 8 years old

Name: Emma

Breed: Golden

Retriever

Age: 3 years old

Weight: 32 kg

Name: Paul & Luna

Age: Both 2 years old

THREE FLAGSHIP LOYALTY TOOLS DRIVE OUR GROWTH STORY

Subscribe & Save		Bonus Point Rewards	Mobile Apps

Locking in customers through		Rewarding customers for		Keeping customers engaged
		through personalized digital
a permanent discount		their loyalty
		experience

30

ALL THREE LOYALTY TOOLS ARE IMPACTFUL WITH THE CUSTOMER AND STRONG IN REACH

Subscribe & Save

50%

of total zooplus sales generated by customers on Subscribe & Save

63€	revenue
growth within:	24%
average	Subscribe & Save
basket
customers
value of
other customers	16%
Subscribe & Save members

Bonus Point Rewards

70%

bonus Points Rewards usage in active repeat customer base

+80%

bonus Points

Mobile Apps

17%

of all Group orders come via our mobile apps for zooplus and bitiba

[~20% higher than average basket of non-members]

>20%

higher

frequency1

>40%

higher sales per account1

redeemed in reward shop or donated to charity per month by all customers

4.9

out of 5

stars rating

for our apps

1) Based on 2015 acquired cohort for Subscribe & Save customers vs. non-Subscribe & Save customers

31

WE ARE THE LEADING PLAYER IN OUR VERTICAL AND OFFER THE BEST DIGITAL EXPERIENCE FOR PET PARENTS IN EUROPE

SHOP	APPS
 Award-winning pet shop	 17% order share
 ~ 6.5m unique visits / month	 ~ 1 million active users
→ +20% vs. 9M 2019	 >120k downloads per month
 ~100k transactions per day	 4.9/5	rating (iOS + Android)

• >1m items sold per day

MAGAZINE & COMMUNICATION

• Curated expert articles on current topics
• Traffic generation and customer acquisition at no additional cost
• ~ 3.9m visits per month
• ~ 6k published articles in 20 countries

SERVICES & COMMUNITY

• Intense engagement in social media and forum
• User product ratings
• Vet search with profiles and ratings
• Pet shelter search

32

PART II

Market Opportunity in Europe

PET SUPPLIES IS A CONSISTENTLY GROWING MARKET AND OFFERS SIGNIFICANT COMMERCIAL OPPORTUNITIES

SPECIALIZED NUTRITION

Premiumization trend in pet food driving specialty trade to grow faster than grocery segment

HUMANIZATION OF PETS

Pets are increasingly viewed as a family member with spend per pet increasing

Net Market opportunity Europe
	(in bn EUR)
						DIGITAL SHIFT
	CAGR 4%	Category is still underrepresented in
	30.6		online channels with shift of
		consumers to online still ongoing
24.5	26.3

							GROWING PET POPULATION
							71m dogs (+16% vs. 2010) and
	2018		2020e		2024e		84m cats (+25% vs. 2010)

Source: FEDIAF 2020, FEDIAF 2010, Gross numbers by Euromonitor VAT-adjusted by zooplus management as of October 2020	34
Note: Russia and Ukraine excluded

WE ARE DIGITIZING THE CATEGORY - STILL MASSIVE FUTURE GROWTH OPPORTUNITY FOR THE LEADING VERTICAL IN EUROPE

EUROPE	USA

Number of pets

Pet supplies market

Pet supplies market online share

Grocery online share

No. dogs No. cats

2020

2019

2020

2019

2020

2019

71m1

84m1

€26.3bn2 €25.3bn2

17%3

14%3

4%4

3%4

No. dogs	94m5
No. cats	90m5
2020	$58.8bn6
2019	$54.6bn6
2020	27%7
2019	22%7
2020	10%8
2019	4%8

Online market leader

40%41%9

1. FEDIAF 2020 excl. Russia 2) Gross numbers by Euromonitor, VAT-adjusted by zooplus management as of October 2020; 3) Management assumption incl. Covid-19 factor; 4) Management assumption based on Euromonitor numbers for 2019, incl. Covid-19 factor; 5) americanpetproducts.org; 6) Packaged Facts June 2020, includes retail channel pet food / treats and retail channel pet supplies (non-food) incl. Covid-19 factor; 7) Packaged Facts June 2020, pre-Corona assumption for 2020 only 24%; 8) Mercatus study as of 2020, incl. Covid-19 factor; 9) Chewy market share based on 2020 forecast by

Packaged Facts of a total of $6.5bn in sales; 2019 figures result in market share of 40%

35

PET CARE IS GROWING ACROSS ALL MARKETS

MAIN DRIVERS: PREMIUMIZATION & CALORY CONVERSION

TOTAL PET CARE NET SALES BY MARKET (in m EUR)

VOLUME MARKETS (20.7 bn EUR)			MID-SIZED MARKETS (4.7 bn EUR)
5,000								1,500
4,500								1,400
							1,300
4,000								1,200
3,500								1,100
							1,000
3,000								900
2,500								800
							700
2,000								600
1,500								500
							400
1,000								300
500								200
							100
0								0
	DE	UK	FR	IT	BE/NL	ES PL		AT CH SE RO	FI	CZ DK PT NO HU
	2016	2017	2018	2019	2020
		2015

Source: Euromonitor 2020, not all market included in chart.	36

WE ARE ONLINE MARKET LEADER IN ALL EUROPEAN COUNTRIES WITH DOUBLE-DIGIT REVENUE GROWTH

MARKET SIZE (in bn EUR)

6.0	DACH
4.1	FR
2.0	BE, NL1

1.0PL

4.7	UK, IE
2.8	IT
2.0	CEE
1.8	Nordics
1.9	ES, PT

1) Incl. Luxembourg

Note: Growth rates with constant fx-rates vs. PY Market data based on Euromonitor 2020

MARKET PENETRATION & GROWTH OF Z+

8%

15%

6%

18%

9%

15%

14%

27%

3%

22%

4%

24%

5%

28%

5%

16%

6%

11%

Market penetration Revenue growth

37

PET SUPPLIES RETAIL LANDSCAPE IN EUROPE:

COMPETITION FALLS INTO THREE CATEGORIES

ONLINE PURE PLAYER

MASS GENERALIST

MULTICHANNEL PLAYER REGIONAL ONLINER

Preferred industry partner

Ideally positioned to capture growing online share in all of Europe

Strong logistics network based on proprietary IT infrastructure

Own brand portfolio adds to differentiation and supports incremental value creation

Best in class digital experience in category

• Limited access to premium brands
• Supporting digitization of category
• High e-commerce
  and logistics competencies

 Online offering competing	 Low scale advantages
with physical store presence		Pricing as only USP
 High CAPEX requirements		High operating cost
 Low logistics / FC capacity		Low logistics / FC capacity
 Low e-commerce		Mostly no own brands
competencies

38

WE ARE FULLY BACK ON GROWTH TRACK IN ALL REGIONS

		NORDICS
		107m
		12%	16%
UK, IE		2019	2020
142m
		NL, BE1
5%	22%	DACH	PL
2019	2020	198m	168m

	16%	15%	512m	27%
				26%
FR	2019	2020
			2019	2020
			13%	15%

	293m	2019	2020	CEE
ES, PT	11%	18%	IT		129m
100m	2019	2020	141m	27%	28%

9%	11%	8%	24%
2019	2020
2019	2020	2019	2020

Note: Growth rates with constant fx-rates vs. PY 1. Incl. Luxembourg

Sales growth 2019 Sales growth 2020e

Country sales 2020e

39

PART II

Operational Excellence & Efficiency

COST EFFICIENT OPERATION CREATING MOAT FOR ONLINE AND OFFLINE COMPETITORS

COST STRUCTURE (in % of SALES)

28.2%

27.1%

Ad./Marketing	3.3 %	1.6 %

Logistics	18.3 %	18.1 %
Payment1)
	1.1 %			1.1 %
IT / Admin / FX	2.0 %		2.6 %
Personnel2)	3.5 %		3.7 %
		9M 2019	9M 2020

• Strong efficiency in customer acquisition and reduced marketing spend also reflecting budget shift into early-stage loyalty spend (included in gross margin)
• Larger baskets prompting for higher value per parcel, offsetting additional cost for higher FC capacity & fully offsetting additional logistics cost related to protective Covid-19 measures
• Increase in IT / Admin / FX cost base reflecting higher non-operatingexpenses for strategic projects
• Personnel expenses including one-off costs related to changes in organizational structure and performance remuneration

1)	Impairment expenses on financial assets reclassified to payment	41
2)	Including LTI & SOP; own work capitalized reclassified to personnel

IMPROVED GROSS MARGIN & LOWER COST RATIO NOT COMPETING WITH GROWTH - ZOOPLUS BETTER POSITIONED THAN EVER BEFORE

GROSS MARGIN1 and COST RATIO2 DEVELOPMENT (in %)

35.8 %

 Optimized steering of product sales mix

		30.5 %	Strong yield management & intelligent
28.7 %	29.0 %	
	pricing

 Continued increase in own brands sales share

2013	2018	2019	9M 2020
						 Marketing spend back to efficient territory
						without losing reach
	27.5%		27.1%
	28.5%		 Continued improvement in operational

efficiency

32.7%

1)	Gross margin = sales - cost of goods sold (as a % of sales); 2013 figure adjusted from published external figures to IFRS 15	42
2)	Cost ratio based on cost within the EBITDA as a percentage of sales; 2013 & 2018 figures adjusted from published external figures to current reporting standard

EFFICIENT TRAFFIC ACQUISITION ALLOWS FOR ADDITIONAL INVEST INTO LOYALTY & DIGITAL EXPERIENCE

FOCUSING ON LOYALTY	ACTIVE REPEAT CUSTOMER DEVELOPMENT (in m)

Investments into acquisition & loyalty in % of sales		Significantly improved
5.8%	4.1%	4.9	growth trajectory
		4.7	Current run-rate
3.3 %		4.5	2019 run-rate
	1.6 %		(extrapolated)
0.5 %	0.2 %	4.3
1.6 %	1.7 %	4.1
0.4 %	0.6 %	3.9
9M 2019	9M 2020
Jan 2019	Nov 2020
Traffic Acquisition	Repeat Customer Discount
New Customer Discount	Loyalty Programs
			43

SALES FOCUS ON BIGGER BASKETS YIELDING HIGHER RETURNS: POSITIVE IMPACT ON OVERALL CUSTOMER PROFITABILITY

BASKET VALUE1		SALES PER ACCOUNT	LOSS-MAKING ORDERS2
per year (in EUR)		per year (in EUR)		order share per year (in %)

			57
55	55	55
2017	2018	2019	2020

			255	2017
224	232	233
			26%
2017	2018	2019	2020

2018

2019

2020

19%

17%

12%

Based on 9M 2020 figures, 1) Based on order date, net. Non-BMF;	44
2) Loss-making orders are all orders with a negative CM2 (sales-cost of goods - variable logistics cost)

MANAGING CUMULATED & INCREASED CUSTOMER DEMAND FROM AN OPERATIONAL PERSPECTIVE

4.9m	96%	€ 57
active repeat	stock availability	basket value
customers	across all markets

30	11	1.2
countries	fulfillment centers	parcels / order
	in Europe

107k	35d	€ 9
parcels / day	stock rotation	costs / parcel
Peak capacity: 170k parcels / day
Based on 9M 2020 figures

45

MOST OUTSTANDING LOGISTICS NETWORK ACROSS EUROPE IN OUR CATEGORY

TILKRO

BHX ANR

HOE WRO JIR

MHX

CHA

MIL

MAD

2013 PL: New local FC WRO

2015 FR: New local FC CHA FC SXB

2016 BE: New local FC ANR

UK: New local FC BHX

2017 NL: Increase automation in TIL DE: New local FC MHX

PL: New local FC BOL

ES: Launch FC MAD

2018 PL: New local FC KRO

UK: FC BHX expanded capacity

2019 IT: New FC MIL

2020	UK: Automation implemented to increase capacity
BE: Increase automation in ANR

Fulfillment center (FC)	Parcel output	46

STATE OF THE ART LOGISTICS INFRASTRUCTURE FOR PET SUPPLIES IN EUROPE

PART II

Strategic Brand and Product Portfolio

Management

PET PARENTS´ DARLING AND PREFERRED PARTNER FOR BRANDS

Tailored own	Big international
brand portfolio	brands

Popular local	Curated accessories
variety	selection

Selected awards from past years

GERMANY

Germany's Best Online

Shop [Pet Supplies]

German Online Retail

Award [FMCG]

German Online Retail

Award [Overall]

Pet Retail Prize Online

[Pet Supplies]

Retailer of the Year

[Pet Specialist]

Top Shop 2020

[Leisure, Sports & Hobby]

Top Service Quality

[Pet Supplies]

NETHERLANDS	UK
Best Web Shop	Best Online Pet Retailer
[Home & Garden]	[Dog Supplies]
Best Web Shop	Best Online Pet Retailer
[Pet Specialist]	[Cat Supplies]
Best Web Shop
[Across Categories]	SPAIN
	Best Online Shop
FRANCE	[Overall]
Best Online Pet Retailer	Exceptional Support
[Dog & Cat Supplies]	[Charity]
ITALY	CZECH REPUBLIC
Retailer of the Year	Retailer of the Year
[Pet Supplies]	[House, Garden & Breeder]
	49

OPTIMIZED SALES MIX STEERING ALLOWS TO GEAR FOR BETTER MARGINS

SHARE OF NET SALES AND CONTRIBUTION MARGIN (CM2) IN 9M 2020

14%	26%	26%
15%	45%
26%	24%	24%

• Sales/CM2 Index:
  Big international brands: 0.6
  Local champion brands: 0.9
  Own brands: 1.6
  Accessories: 1.9
• Actively managed product sales mix is the long-term driver for sales margin improvement
• Stabilization of accessories share in 2020, coming from 15% (2018) and 14% (2019)
• Increasing sales share of own brands, coming from 12% (2018) and 14% (2019)

Share of Net SalesShare of CM2 Own Brands and accessories accounting

Accessories		Own Brands		Local champion brands		for 50% of contribution margin in 2020
			Big international brands

1) CM2 = Sales - cost of cost of goods sold - variable logistics cost

Dog dry Dog wet Dog snacks Dog

USP & Reason Why for customer

accessories

• Species-appropriatefood for the modern dog
• Offering grain-free recipes and lots of fresh meat as high-quality protein
• Based on the wolf´s natural diet

Strategic role of brand for zooplus

• Drives sales & margin
• First Blockbuster Own Brand to be successful in dog dry food

>300k	>130	4.4/5
customers1	SKUs	Customer
	2.3%	Satisfaction2
	Sales share of total group sales

1) First usage and repeat; 2) Wolf of Wilderness Survey 2020 n=1050

Cat dry

Dog dry

Cat snacks

Dog snacks

USP & Reason Why for customer

• 70% - 80% meat, fish & other selected animal ingredients
• 20% - 30% fruits, vegetables & herbs
• 0% added grains

Strategic role of brand for zooplus

• Continuous growth, convincing palatability especially for cat dry food
• Profitable business especially on a single SKU view
• Serving loyal zooplus customers

>300k	>60	For cats &
customers1	SKUs	dogs
	1.9%

Sales share of total group sales

1) First usage and repeat

MUC_30/06/2020_Strategy_Draft_2023

Clumping Cat litter

Silicate Cat litter

USP & Reason Why for customer

• Attractive price-quality ratio
• High quality standards
• Great selection of different cat litters
• Satisfies the different needs of cats and their owners

Strategic role of brand for zooplus

• No.1 Litter brand at zooplus (sales, margins, quantities)
• Highest sales/SKU in Own Brand portfolio
• Solving e-commerce challenges with cat litter in the best way possible

>450k	>25	No. 1
customers1	SKUs	Litter brand at

34%

zooplus

Sales share of relevant category

1) Frst usage and repeat

PART II

Outlook 2021

IN 2021 ZOOPLUS IS A 2 BN EUR REVENUE COMPANY CONTINUING TO GROW IN PROFITABLE OPERATING MODE

Revenue

Range

Earnings

Range

(EBITDA)

2,040 m EUR - 2,140 m EUR

40 m EUR - 80 m EUR

55

IN 2021 ZOOPLUS IS A 2 BN EUR REVENUE COMPANY CONTINUING TO GROW IN PROFITABLE OPERATING MODE

Revenue

Range

Growth range1

Earnings

Range

(EBITDA, margin%)

2,040 m EUR - 2,140 m EUR

250 m EUR - 350 m EUR

(14%) (20%)

40 m EUR - 80 m EUR

(2%) (4%)

1) based on 2020 performance in mid range of guidance

56

WE WILL INCREASE OUR GROWTH MOMENTUM FURTHER IN THE UPCOMING YEAR

SALES GROWTH (in EUR)

			350m
		266m
			250m
231m
	180m
2018	2019	2020e	2021g

57

STRUCTURAL PROFITABILITY DRIVERS IMPROVE EARNINGS SIGNFICANTLY

EBITDA (in EUR)

			80m
		58m
			40m
9m	12m
2018	2019	2020e	2021g

58

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