This document discusses the development of zooplus, an online pet supplies retailer based in Europe, from its founding in 1999 to becoming a "unicorn" (privately held company valued at over $1 billion) by 2017. It outlines zooplus's growth in three phases: establishing the business model from 1999-2004, expanding across Europe from 2005-2010, and establishing new competitive rules from 2011-2016. Key highlights include growing sales from €5.7 million in 1999 to over €1 billion in 2016, expanding to 17 European countries, and achieving strong customer retention and cost leadership. The document argues zooplus has significant room for further growth given the large size of the European pet supplies market.

1. Dr. Cornelius Patt, Co-Founder and CEO
How to get to one billion – zooplus, a unicorn made
in Europe!
Berlin, 22 June 2017

2. 2
zooplus: * Jun 1999 – YTD [m EUR]
From 0 to 1 bln in 18 years
IPO
1999 2011 2017
(Q2)
2001 20152003 2005 2007 2009 2013
Sales RR Market Cap
0
100
1,100
1,000
900
600
800
700
200
300
200
300
400
0
500
400
100
800
1,200
1,100
1,000
900
500
1,300
600
700
Market Cap Sales Run Rate

3. 3
Funding 30 m
Cum P&L - 6 m
Sales RR 280 m
Funding 40 m
Cum P&L 41 m
Sales RR 1,000 m
Stumbling on
happiness
Funding 20 m
Cum P&L - 19 m
Sales RR 19 m
1999 - 2004
Our development phases
European
transformation
New rules of
the game
2005 - 2010 2011 - 2016 2017 and
beyond
The best
is yet to
come

4. 4
Phase I: Establish the business model
Funding 30 m
Cum P&L - 6 m
Sales RR 280 m
Funding 40 m
Cum P&L 41 m
Sales RR 1,000 m
Stumbling on
happiness
Funding 20 m
Cum P&L - 19 m
Sales RR 19 m
1999 - 2004
European
transformation
New rules of the
game
2005 - 2010 2011 - 2016

5. 5
Ι In 1999, net sales of USD 5.7 m
Ι Operating loss of USD 62.9 m
IPO in Feb 2000
Pets.com:
* Aug 1998 | † Nov 2000
zooplus:
* Jul 1999 |
ΙEverything
for pets
Ι> 4 m online
customers
across Europe
Ι60,000 x per
day a quantum
of happiness
Our idea generator and what we did so far …

6. 6
Value centric thinking generates happy customers
Convenience
Choice
Affordability
Commitment
LOYALTY !

7. 7
Phase II: Venture into Europe
Funding 30 m
Cum P&L - 6 m
Sales RR 280 m
European
transformation
2005 - 2010
Funding 40 m
Cum P&L 41 m
Sales RR 1,000 m
Take over cost
leadership
2011 - 2016
Stumbling on
happiness
Funding 20 m
Cum P&L - 19 m
Sales RR 19 m
1999 - 2004

8. 8
From <50 m in 2005 …
HU
DK,
SE, FI
D,A,CH PL, CZ, SK,
HU, RO, SI,
HR, TR
ES, PT
NL, B, LU
IT
FR
UK, IE
0
0
0
0
0
Sales (by destination country)
29
0
0

9. 9
… to 300 m EUR in 2011 …
HU
DK,
SE, FI
D,A,CH
PL, CZ, SK,
HU, RO, SI,
HR, TR
ES, PT
NL, B, LU
IT
FR
UK, IE
0
15
0
43
0
16
90
0
12
Sales (by destination country)
144
29
32
0
0
19

10. 10
and >to 1 bln EUR gross sales in 2016
HU
DK,
SE, FI
D,A,CH
PL, CZ, SK,
HU, RO, SI,
HR, TR
ES, PT
NL, B, LU
IT
FR
UK, IE
0
60
15
0
187
43
0
93
16
68
90
0
117
12
Sales (by destination country)
320
144
29
32
0
125
0
98
19

11. 11
Integrated architecture for a complicated Europe
2013
2015
2009
2015
Q4/2016
Q1/2017
2000/2011

12. 12
Supported by logistics built to task
4 XXL fulfillment centers: Tilburg, Hörselgau, Chalon, and Wrocław
3 specialized FCs in ramp up
Operated by our partners Rhenus, Dirks & Katoen Natie

13. 13
Phase III: The new rules of the game
Funding 40 m
Cum P&L 41 m
Sales RR 1,000 m
Establish the
business model
Funding 20 m
Cum P&L - 19 m
Sales RR 19 m
1999 - 2004
New rules of the
game
2011 - 2016
Funding 30 m
Cum P&L - 6 m
Sales RR 280 m
European
roll out
2005 - 2010

14. 14
Revenue retention is the most important
driver of growth
145 194
272
369
509
100
125
135
174
202
656
253
245
2014
543
20162013
407
909
2015
711
2012
319
2011
New customers Recurring customers
Retention rates – Cohort analysis (Sales in EUR m)
Ø +79%
Ø +85%
Ø +91%
Ø +93%
Ø +92%

15. 15
zooplus has a strong and improving cost
leadership position in the category
6.8% 7.0%8.3%
2011
42.4%
31.8%
24.3%
26.9%
22.7%
21.9%
Variable
10.6%
27.8%
2015
29.8%
2014
31.1%
2013
35.2%
Structural
5.9%
2016
32.8% 31.6%36.1%40.9% 29.8%
Total margin & Cost structure (in % of sales)
Total margin

16. 16
CAGR: 2011-16: + 30%
2016: € 0.9 bn
Total pet supplies market Europe (incl. VAT):
~ € 26 bn (~ € 22 bn net)
CAGR: 2011-16: 2-3%
Net sales 2016 :
~ € 1.6 bn (+8%)
Online: ~ € 0.03 bn
Net sales
Fressnapf
Net sales
2016e: ~ € 250 m
~ 50% market share zooplus online
~ 4% market share online and offline
The market opportunity – plenty of room to grow
Other onliners:
Online: ~ € 0.05 bn
Net sales 2016e:
~ € 1.0 bn (+9%)
Pets at Home

17. 17
The hen lays the eggs
Growth & efficiency breeds economic value

18. 18
zooplus – financial performance
Capital raised from shareholders
since 1999
Net sales
(annualized, Q1 2017)
Market capitalization
(mid June 2017)
€ ~90m
€ 1,030 m
€ ~1,250m