1.
EMOTA represents 3,500 multi-channel/online retailers in 16 countries • 16 European countries • 17 member associations • 3,500 companies • € 250 billion turnover • 83% of European e-commerce -1-

2.
E-Commerce contributes significantly to growth and job creation Contribution to GDP growth Average: 21% • 2.6 jobs created for each lost • internet-intensive companies createSweden 33% 2x jobsGermany 24% UK 23% France 18% USA 15% Italy 12% 0% 10% 20% 30% 40% Source: McKinsey, 2011 Note: Internet % contribution to GDP growth 2004-2009 – mature countries -2-

3.
In addition, E-Commerce enables consumers to save money and time Reasons for shopping online lower prices 66% save time 50% price comparison 33% open anytime 33% wide selection 22% Consumer gains from e-commerce home delivery 11% (wider choice + lower prices): currently € 12 Bn. more product information 10% potentially € 200 Bn. 0% 20% 40% 60% 80% Source: Civic Consulting/TNS, 2011 Note: consumer survey – 3 most important reasons for shopping online (sample of 13,872 online shoppers) -3-

4.
E-Commerce in Europe will reach € 300 Bn. in 2012, with 20% growth E-commerce turnover by region Growth€ Billion 300 Europe +20% 300 250 250 270 N. America +14% 215 237 200 185 210 215 Asia Pacific +36% 171 170 150 154 158 100 122 84 48 ROW +44% 50 66 33 19 26 13 - 2008 2009 2010 2011 2012 Source: EMOTA/IMRG, 2012 -4-

5.
UK, France and Germany account for 60% of European E-Commerce European E-commerce turnover by country 2012 (€ billion) Other Eastern Europe Italy 12 15 Russia 10 UK Spain 10 11 90 Benelux 15 Austria/ 17 Switzerland 29 46 Scandinavia 45 France Source: EMOTA, 2012 Note: B2C e-commerce turnover estimate Germany -5-

6.
E-Commerce is growing very fast throughout Europe E-commerce growth by country in 2012+30% +27% +27%+25% +22% +18% +20% average +19%+20% European growth +14% +14%+15% +12%+10%+5%+0% Source: EMOTA, 2012 -6-

7.
Online share of retail high in UK/Scandinavia, low in South/East Europe Online share of retail by country 201225%20%15% European10% average 5% 0% Source: EMOTA, 2012 Note: % of e-commerce turnover on total retail trade -7-

8.
There are significant differences in E-Commerce penetration and spend 80% 70% UK Germany Scandinavia 60% Benelux Digital Agenda France target 2015 50%E-Commerce 43% EU average 40%penetration Austria/Switzerl. 2011 30% Spain 20% Eastern Italy 10% Europe 0% - 500 1.000 1.500 2.000 2.500 3.000 3.500 Source: EMOTA, Eurostat, 2011 Average annual expenditure (€) Note: E-commerce penetration: % of population aged 14-74 years buying online -8-

9.
In addition, very few consumers shop online across borders Proportion of consumers buying online from another country25% Digital Agenda20% target 2015 GAP15% EU average10% 20115%0% Source: Eurostat, 2011 -9-

10.
In fact, consumers are more worried about international delivery Concerns about cross-border vs. domestic online purchases Long delivery times Returns Guarantee No delivery Payment security Data privacyUncertainty on rights 0% 5% 10% 15% 20% 25% 30% 35% % domestic % increase cross-border Source: Civic Consulting/TNS, 2011 Note: % of consumers reporting concerns about buying products online in their own country vs. in another EU country (sample: 29.010 individuals) -10-

11.
Online penetration high in media/travel, low in apparel/grocery Online share of retail by sector 40% Music Travel 30% Online 20% share of Booksretail sales Apparel Cosmetics Electronics 10% Appliances Grocery 0% Furnishing -10% 5% 10% 15% 20% Annual growth of online share Source: Booz & Co., 2012 Bubble size proportional to market size Note: online share of retail sales in western Europe 2011 – CAGR of online share of sales 2006-2011 -11-

12.
Top E-Commerce players in Europe are mostly multi-channel# Company Online sales Growth Country Channels Category 1 12.0 38% Books/Electron. 2 4.5 25% Apparel 3 3.9 11% Grocery 4 2.6 2% Office supplies 5 2.6 21% Apparel 6 2.4 18% Apparel/Home 7 1.5 9% Apparel/Home 8 1.3 28% Electronics 9 1.3 14% Electronics10 1.2 10% Apparel Source: Internet Retailer, 2012 catalogues retail internet Note: Online sales in Europe in 2011 in € billion; growth % 2011 vs. 2010 -12-

13.
However, most companies have still to embrace E-Commerce Proportion of companies selling online Digital Agenda 35 target 2015 33% 30 25 GAP 20% ofSMEs 15 European average 2011 10 5 - - Source: Eurostat, 2011 5 10 15 20 25 30 Note: companies with 10-249 employees and at least 1% of online sales % of turnover -13-

14.
In addition, only 27% of retailers sell across borders Proportion of retailers selling in at least one other EU country50%40%30% EU 27% average20%10%0% Source: TNS, Flash Eurobarometer 331, 2012 -14-

15.
In fact, many retailers are deterred by legal/tax and payment issues Barriers to cross-border sales for retailers Different consumer laws Risk of fraud/non-payments Different tax regulations Delivery costs Complaints resolution Own restrictions Customer service Language differences 0% 5% 10% 15% 20% 25% 30% 35% Source: TNS, Flash Eurobarometer 331, 2012 Note: % of retailers reporting obstacles to cross-border sales to other EU countries -15-

16.
EU institutions launched several initiatives to remove these barriers Regulation on Consumer Data Protection Rights Directive E-Commerce Action Plan Directive on ADR/ Common Green Paper Regulation European on Payments on ODR Sales Law (CESL) Online Trustmarks -16-

17.
EMOTA supports all EU initiatives aimed at facilitating E-Commerce • Harmonize consumer legislation across Europe • Improve consumer trust through a pan-European trustmark • Liberalize postal delivery services • Ensure security and efficiency of online payment platforms • Accelerate broadband networks development Avoid Balance unnecessary consumer/ extra business costs/burden interests for businesses -17-