Prospectus

for the public offering

of
32,941,177 new ordinary bearer shares with no par value (Stckaktien) from a capital increase against
contributions in cash expected to be resolved by the Management Board on October 6, 2014, to be approved by a
committee of the Supervisory Board on the same day, utilizing the Authorized Capital 2014, as resolved by an
extraordinary shareholders meeting on August 22, 2014, under exclusion of the subscription rights of existing
shareholders of the Issuer
and of
4,941,176 ordinary bearer shares with no par value (Stckaktien)
from the holdings of Global Founders GmbH in connection with a possible over-allotment
and at the same time for the
inclusion to trading on the non-regulated market (Entry Standard)
of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse)
of up to 153,043,432 ordinary bearer shares (entire share capital)
each such share with no par value and a notional value of 1.00
and full dividend rights as of January 1, 2014
of
Rocket Internet AG
Berlin
Price Range: 35.50 42.50
German Securities Identification Number (WKN): A12UKK
International Securities Identification Number (ISIN): DE000A12UKK6
Ticker Symbol: RKET
Prospectus dated September 23, 2014
Joint Global Coordinators and Joint Bookrunners
Berenberg J.P. Morgan Morgan Stanley
Joint Bookrunners
BofA Merrill Lynch Citigroup UBS Investment Bank
CONTENTS
Section Page
Summary of the Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
A INTRODUCTION AND WARNINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
B ISSUER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
C SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-17
D RISKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-18
E OFFER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-21
German Translation of the Summary of the Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-27
A EINLEITUNG UND WARNHINWEISE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-27
B EMITTENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-27
C WERTPAPIERE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-44
D RISIKEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-45
E ANGEBOT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-49
Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Risks Related to the Issuer and Our Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Legal and Regulatory Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Tax Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Risks Related to Shares and the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Certain Defined Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Responsibility Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Purpose of this Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Forward-looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Sources of Market Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Documents Available for Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Currency Presentation and Presentation of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Available Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Enforcement of Civil Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Presentation of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Exchange Rate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
The Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Subject Matter of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Price Range, Offer Period, Offer Price and Allotment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Cornerstone Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Expected Timetable for the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Intended Change of Legal Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Information on the Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Transferability of the Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Existing Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Allotment Criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Stabilization Measures, Over-Allotments and Greenshoe Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Lock-up Agreement, Limitations on Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Inclusion on the Frankfurt Stock Exchange and Commencement of Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Designated Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Interests of Parties Participating in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Proceeds of the Offering and Costs of the Offering and Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Reasons for the Offering and Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Dividend Policy; Results and Dividends per Share; Use of Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
General Provisions Relating to Profit Allocation and Dividend Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Dividend Policy and Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
-i-
Groupon, Inc. Dividend in Kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Bigfoot I and Bigfoot II Dividend in Kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Capitalization and Indebtedness; Statement on Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Indirect Liabilities, Contingent Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Statement on Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Dilution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Selected Consolidated Financial Information and Issuer Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Consolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Consolidated Balance Sheet Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Consolidated Cash Flow Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Unconsolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Additional Key Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Managements Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . 62
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Key Factors Influencing Our Net Assets, Financial Condition, and Results of Operations . . . . . . . . . . . . . . 64
Key Income Statement Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Results of Operations (consolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Results of Operations (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Liquidity and Capital Resources (consolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Liquidity and Capital Resources (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Bank and Loan Liabilities (consolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Other Financial and Non-financial Liabilities (consolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Other Financial Commitments and Off-Balance Sheet Transactions (consolidated) . . . . . . . . . . . . . . . . . . . . . 84
Equity (consolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Balance Sheet (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Quantitative and Qualitative Description of Market and Other Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Origins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Our Market Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Our Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Competitive Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
The Issuers Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Sectors and Verticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Our Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Intellectual Property, Trademarks and Domains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Insurance Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Corporate Structure, Financing Rounds and Cash Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Investment Agreements and Shareholders Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Issuer Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Intermediate Holding Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Proven Winners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
-ii-
Emerging Stars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Regional Internet Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Cash Requirements and Cash Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Regulatory Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Trademarks and Internet Domain Names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Data Protection and Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Consumer Protection Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Product Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Capital Investments Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Information on Existing Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Major Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Shareholder Structure (Before and After the Offering) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Controlling Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
General Information on the Issuer and the Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Formation, Incorporation, Commercial Name, Fiscal Year and Registered Office . . . . . . . . . . . . . . . . . . . . . .
History and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Duration of the Issuer and Corporate Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Group Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Corporate Governance of the Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Statutory Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Notifications, Paying Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Description of Share Capital of Rocket Internet AG and Applicable Regulations . . . . . . . . . . . . . . . . . . . . . . . 183
Current Share Capital; Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Development of the Share Capital since the Issuers Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Authorization to Issue Convertible Bonds and Other Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Authorized Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Conditional Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Authorization to Purchase and Sell Treasury Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
General Provisions Governing a Liquidation of the Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
General Provisions Governing a Change in the Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
General Provisions Governing Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Exclusion of Minority Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
Shareholder Notification Requirements; Directors Dealings; Mandatory Takeover Bids . . . . . . . . . . . . . . . 188
Description of the Governing Bodies of Rocket Internet AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Share Participation Plan and Employee Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Certain Information Regarding the Members of the Management Board and Supervisory Board . . . . . . . 207
General Shareholders Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Certain Relationships and Related-Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Zalando Spin-Off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Dividends in Kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Financing Rounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Transactions with GFG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Underwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
Underwriting Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
-iii-
Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Greenshoe Option and Securities Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Termination/Indemnification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Selling Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Taxation in Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Taxation of the Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Taxation of Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Taxation of Capital Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Special Treatment of Companies in the Financial and Insurance Sectors and Pension Funds . . . . . . . . . 222
Inheritance and Gift Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Taxation in Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Luxembourg Taxation of Shares of a Non-Resident Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Other Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-1
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1
Recent Developments and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O-1
Signature Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SIG-1
-iv-
SUMMARY OF THE PROSPECTUS
Summaries are made up of disclosure requirements known as elements (Elements). These Elements are
numbered in Sections A E (A.1 E.7). This summary contains all the Elements required to be included in a summary
for this type of security and issuer. Because some Elements are not required to be addressed, there may be gaps in the
numbering sequence of the Elements. Even though an Element may be required to be inserted in the summary because
of the type of security and issuer, it is possible that no relevant information can be given regarding the Element. In
such cases, the summary includes a short description of the Element with the words not applicable.
A INTRODUCTION AND WARNINGS
A.1 Warnings. This summary should be read as an introduction to this prospectus. Any decision to
invest in the securities should be based on consideration of the prospectus as a whole
by the investor.
If any claims are asserted before a court of law based on the information contained in
this prospectus, the investor appearing as plaintiff may have to bear the costs of
translating the prospectus prior to the commencement of the court proceedings
pursuant to the national legislation of the member states of the European Economic
Area.
Rocket Internet AG, Berlin, Germany (the Issuer), together with Joh. Berenberg,
Gossler & Co. KG, Hamburg, Germany (Berenberg); J.P. Morgan Securities plc,
London, United Kingdom (J.P. Morgan); Morgan Stanley Bank AG, Frankfurt am
Main, Germany (Morgan Stanley, and together with Berenberg and J.P. Morgan,
the Joint Global Coordinators); Merrill Lynch International, London, United
Kingdom (acting under the marketing name BofA Merrill Lynch) (BofA Merrill
Lynch); Citigroup Global Markets Limited, London, United Kingdom
(Citigroup) and UBS Limited, London, United Kingdom (UBS, and together
with the Joint Global Coordinators, BofA Merrill Lynch and Citigroup, the Joint
Bookrunners or the Underwriters), have assumed responsibility for the content
of this summary and its German translation pursuant to Section 5 (2b) no. 4 of the
German Securities Prospectus Act (Wertpapierprospektgesetz). Those persons who
are responsible for the summary, including the translation thereof, or for the issuing
(Erlass), can be held liable but only if this summary is misleading, inaccurate or
inconsistent when read together with the other parts of this prospectus or it does not
provide, when read together with the other parts of this prospectus, all necessary key
information.
A.2 Information regarding
the subsequent use of
the prospectus.
Not applicable. Consent regarding the use of the prospectus for a subsequent resale
or placement of the shares has not been granted.
B ISSUER
B.1 Legal and commercial
name of the issuer.
The Issuers legal name is Rocket Internet AG. It primarily operates under the
commercial name Rocket Internet. The Issuer currently expects that the
extraordinary shareholders meeting to be held on September 30, 2014 will approve a
resolution to change the Issuers legal form to a European company (Societas
Europaea SE) governed by German and European law and its legal name to
Rocket Internet SE. The change in legal form and name is expected to be registered
in late 2014.
B.2 Domicile, legal form,
legislation under which
the issuer operates,
country of
incorporation.
The Issuer
(1)
has its registered office at Johannisstrae 20, 10117 Berlin, Germany, and
is registered with the commercial register of the local court (Amtsgericht) of
Charlottenburg, Berlin, Germany (the Commercial Register), under the docket
number HRB 159634 B. The Issuer is a German stock corporation incorporated in
Germany and governed by German law.
(1) The Issuer together with the legal entities that are fully consolidated in the Issuers consolidated
financial statements, the Group, and the Issuer together with our companies (our companies
refers to the proven winners, emerging stars, concepts, regional Internet groups, intermediate
holding companies and the companies in the categories strategic participations and other
investments that were founded by us), we, us, our or Rocket Internet.
S-1
B.3 Current operations
and principal business
activities and principal
markets in which the
issuer competes.
We identify and build proven Internet business models and transfer them to new,
underserved or untapped markets, mainly outside the United States and China, where
we seek to scale them into market leading online companies. We started in 2007 with
4 employees and 2 consumer brands, based on an initial investment of 0.5 million
from European Founders Fund GmbH & Co. Beteiligungs KG Nr. 1 (later renamed
Global Founders Capital GmbH & Co. Beteiligungs KG Nr. 1 (Global Founders
Capital Fund)). As of the date of this prospectus, on an aggregate basis, more than
20,000 employees work across our network of companies, which conducts business
in 116 countries on 5 continents. Our most mature companies, which we refer to as
proven winners, generated aggregate net revenues of 757 million (unaudited sum
total of their net revenues based on the generally accepted accounting principles
applicable for the relevant company, in each case taking the last fiscal year for which
data was available) and aggregated net losses of 442 million (unaudited sum total of
their net losses based on generally accepted accounting principles applicable for the
relevant company, in each case taking the last fiscal year for which data was
available and excluding extraordinary gains of Dafiti resulting from the measurement
of limited partnership interests). The Issuers aggregate direct and indirect stakes in
all of our companies, including proven winners, our growing companies that have
already achieved a significant size, which we refer to as emerging stars, our regional
Internet groups and our strategic participations and other investments, have a
combined value of 2.6 billion
(1)
based on the respective latest third party financing
rounds (as described in more detail below in this element B.3).
We build online business models that satisfy basic consumer needs mainly across
three focus sectors. Our e-commerce companies include retail companies in the areas
of fashion, general merchandise, home and living, office supplies and food and
groceries. Our marketplace companies seek to displace traditional supply chains by
creating venues where buyers and sellers can transact directly, and include real estate
and car online classifieds, travel and transport, and food delivery companies. Our
third sector, financial technology, includes companies that focus on bringing together
borrowers and lenders in regions and segments that are underserved by traditional
banks, particularly in the consumer and small and medium-sized enterprise segments,
and on facilitating payments.
As part of our global strategy, we have created regional Internet groups in Africa,
Asia Pacific, Latin America and the Middle East in order to bundle local market and
business model insights, facilitate regional commercial, strategic and investment
partnerships, in particular with mobile telecommunication providers, enable local
recruiting and sourcing and accelerate the regional rollout of our companies. Our
local strategic partners, such as MTN, ooredoo and Millicom, are co-investors in our
regional Internet groups and provide them and our companies with significant
strategic support and opportunities to benefit from synergies.
The Issuer has developed proprietary technology where it believes it provides the
network of companies with a competitive advantage. In particular, the Issuer has
created a core platform for each of our three focus sectors, which allows a plug and
play setup, scales with the business and is easily adaptable to the specific needs of
the individual companies. The Issuer has entered into framework agreements with
major Internet and software players, such as Google, Facebook, Rackspace,
Responsys and Salesforce, in order to complement the Issuers technology platform
and provide the network of companies with competitively priced, state-of-the-art
technology, payment, online advertising and other services. The Issuer has created
analytical tools for the analysis of key performance indicators which allows us to
benchmark our companies, identify best-in-class performance among our companies
and share the knowledge across our network of companies.
The Issuers platform has enabled us to build a large, global network of companies
and has historically put us in a position us to launch more than 10 new companies
every year through application of a standardized business model identification and
development process. Every new company that the Issuer starts accelerates the
virtuous circle of synergy creation among our companies. The larger the size of our
network of companies, the more significant our opportunity is to benefit from
synergies and network effects with respect to our suppliers, solution providers,
customers and employees. A new company joining our network increases our overall
purchasing volume and negotiation power, and contributes new data and knowledge,
which is typically shared on a voluntary basis across our entire network. The addition
of new companies also establishes new customer relations and additional
opportunities for cross-marketing that benefit all of the companies in our network.
(1) Unaudited. Calculated based on accounting and controlling records of the Issuer.
S-2
The Issuer typically owns a direct or indirect stake of 80% to 90% in our companies
at the time of launch, with the remainder being set aside for management equity
participation. In subsequent financing rounds, we bring in external equity financing,
which is provided by our local strategic partners and other strategic and financial
investors, including existing shareholders of the Issuer. These investments are either
made directly into the company or indirectly into an intermediate holding company
or regional Internet group. Historically, this has meant that the direct and indirect
stakes of the Issuer in a company have decreased over time to less than 50% as the
company grows and matures. Accordingly, the Issuer does not control most of our
companies. The Issuer currently intends to maintain beneficial ownership stakes in
most of our new companies of at least 50% going forward, which means that the
Issuers overall investment in our new companies will increase and that the Issuer
will participate more significantly in their development.
Strategy
The Issuer strives to become the worlds largest Internet platform outside the
United States and China. The key elements of the Issuers current strategy include:

Master the Complexity of Our Markets and Localize Across Every Dimension.

Cover a Large Share of the Consumer Wallet by Leveraging the Mobile

Ecosystem to Benefit from the Smartphone Revolution.

Grow our Existing Network of Companies.

Retain Majority Ownership in New Companies; Selectively Increase Stakes in

Emerging Stars.

Pursue a Balanced Strategy of Continued High Growth in Combination with

Improved Profitability Over Time for Our Proven Winners.
B.4a Most significant recent
trends affecting the
issuer and the industry
in which it operates.
We believe that four megatrends will affect our markets.

Smartphone penetration will become ubiquitous, significantly accelerating the

prevalence of Internet enabled business models. By 2018, smartphone user
growth is predicted to increase by 21% in our focus regions compared to by
10% in the United States and China (Source: WCIS, World Cellular Forecasts
2012-2018, accessed February 14, 2014). An increase in the number of
smartphone users results in a higher number of persons with Internet access. We
believe this means that the Internet will go much further and faster than was
expected in the past.

The population in many of our markets is younger than in the United States
(Source: United Nations, World Population Prospects 2009), which we believe
increases the potential for Internet based business models. For example, the
proportion of the total population aged 65 and over is only 5% in India and 7%
in Mexico and Brazil compared to 13% in the United States. We believe that a
higher share of younger people corresponds to a higher share of smartphone
users, who are digital natives.

The middle class in many of our emerging market economies is expected to grow
strongly (Source: Euromonitor International, Countries and Consumers, based on
current prices and year on year exchange rates, accessed July 2014). For example,
the middle class in Indonesia is expected to grow from 1% to 16% of total
population between 2006 and 2022 compared to the United States where the
middle class is expected to grow from 31% to 33% of total population between
2006 and 2022. As these economies continue to develop, we anticipate that
significant middle class growth will result in a substantial increase in discretionary
consumer spending.

The offline retail infrastructure in many of our target markets is underdeveloped

(Source: Planet Retail, Global Data Analysis Database, accessed May 27, 2014).
For example, while there are more than 90,000 people per retail outlet in Asia
Pacific, there are less than 1,200 people per retail outlet in the United States.
This means that we are provided with the opportunity to establish an online
retail market before offline infrastructure develops, allowing customers to
leapfrog the physical retail market development. The limited offline competition
positions e-commerce businesses to grow faster and capture a larger share of
wallet than e-commerce companies active in markets with significant offline
competition, such as the United States.
S-3
We believe that our industry will expand into the sector of mobile urban on-demand
services. Companies in this sector make living in urban cities easier. This sector has
only been enabled recently due to the penetration of smart phones with GPS and push
notifications. These models work best in densely populated areas and the services are
often time and location bound. They show elements of vertical integration towards
logistics and with or without aggregation of the supply side.
B.5 Description of the
group and the issuers
position within the
group.
The Issuer is the parent company of the Group. The following chart sets forth a summary
(in simplified form) of the Issuers significant companies in its network of companies as
of the date of this prospectus taking into account the relevant direct and indirect
beneficial interests (durchgerechneter Beteiligungsanteil). The shareholdings presented
also include shareholdings of affiliated companies pursuant to Sections 15 et seq.
German Stock Corporation Act (Aktiengesetz) and associated companies pursuant to
Section 271 para. 1 of the German Commercial Code (Handelsgesetzbuch). As of the
date of this prospectus, our network of companies included 11 proven winners (11%),
9 emerging stars (9%), 5 concepts (5%), 4 regional Internet groups (4%), 8 companies in
the category strategic participations (8%) and 9 companies in the category other
investments (9%). In addition, stakes in 53 Internet companies were contributed to the
Issuer in 2014. As of the date of this prospectus, 17 of these were included in the
category strategic participations (17%) and 36 were included in the category other
investments (36%).
Proven Winners
49.5%
(1)
37.1% 33.7%
(4)
34.4%
(3)
35.2%
(2)
26.7%
(6)
21.4%
(10)
22.7%
(9)
23.5%
(8)
25.0%
(7)
26.8%
(5)
(11) (11)
(11)
(11)
Emerging Stars
74.2%
(12)
59.8% 55.5%
(12)
52.3% 44.9% 49.6%
(13)
25.6%
(15)
44.7% 31.4%
(14)
(11)
Regional Internet
Groups
65.0% 50.0% 50.0% 33.3%
Concepts
57.6%
Other concepts
Strategic
Varying shareholding stakes Varying shareholding stakes Varying shareholding stakes
Participations
Other
Investments
Direct Stake
Indirect Stake
Varying shareholding stakes Varying shareholding stakes Varying shareholding stakes
Other concepts
0.5% 34.7%
0.3% 34.2%
7.8% 25.8% 0.5%
(11)
26.3%
17.2% 9.6%
(Source: Issuer information)
(1) As of the date of this prospectus, an affiliate of Holtzbrinck (as defined in Element B.6 footnote (7)) holds shares in Home24. It has been
agreed between Holtzbrinck and the Issuer that its shares in Home24 will be transferred to the Issuer. The execution will, however, only
be effected once the requisite shareholder approvals at Home24 will have been obtained.
(2) Linio is held through TIN Brillant Services GmbH (BigCommerce) and directly (0.5%). The Issuer holds a direct stake of 51.6% in
BigCommerce. BigCommerce in turn holds a stake of 67.3% in Linio.
(3) Namshi (Middle East eCommerce Holding) is held through Bigfoot I, BigCommerce, Rocket Middle East GmbH and directly (0.3%).
The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 40.8% in Namshi. The Issuer holds a direct stake
of 51.6% in BigCommerce. BigCommerce in turn holds a stake of 36.4% in Namshi. Through the Holtzbrinck (as defined in Element
B.6 footnote (8)) transfer of shares in BigCommerce, which will be executed once a restructuring of BigCommerce/Namshi has been
effected, the Issuer will hold an additional indirect stake of 1.8% in Namshi. The Issuer holds a direct stake of 100% in Rocket Middle
East GmbH. Rocket Middle East GmbH in turn holds a stake of 1.7% in Namshi.
(4) Westwing is held through Westwing SPV and directly (7.8%). The Issuer holds a direct stake of 92.0% in Westwing SPV. Westwing
SPV in turn holds a stake of 28.1% in Westwing.
(5) Jumia is held through Bigfoot II and Africa Internet Group. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn holds
a stake of 28.5% in Jumia. The Issuer holds a direct stake of 33.3% in Africa Internet Group. Africa Internet Group in turn holds a stake
of 51.5% in Jumia.
(6) Lazada is held through BigCommerce and directly (0.5%). The Issuer holds a direct stake of 51.6% in BigCommerce. BigCommerce in
turn holds a stake of 50.9% in Lazada.
S-4
(7) Zalora is held through Bigfoot II. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn holds a stake of 74.0% in
Zalora. On August 27, 2014, Bigfoot II provided additional cash to Zalora in return for additional shares in Zalora, resulting in an
increase of the stake of the Issuer to 25.5%.
(8) Lamoda is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds an indirect stake of 80.3%
in Lamoda.
(9) Dafiti is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 77.7% in Dafiti.
(10) Jabong is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 73.2% in
Jabong.
(11) The Issuer currently holds 2,069 shares in Bigfoot II (2.1% of Bigfoot IIs share capital) that are subject to call options granted to
business angels that have not yet been exercised.
(12) Zencap and Lendico through Global Fintech Holding S. r.l. The Issuer holds a direct stake of 100% in Global Fintech Holding S. r.l.
Global Fintech Holding S. r.l. in turn holds stakes of 74.2% in Zencap and 55.5% in Lendico.
(13) Ownership of 49.6%, but up to 1,692 shares currently held by the Issuer are subject to call options granted to certain founders by the
Issuer that have not yet been exercised.
(14) Zanui is held through Bigfoot II. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn holds a stake of 93.0% in
Zanui.
(15) FabFurnish is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 87.7% in
FabFurnish.
Overall, as of December 31, 2013, the Issuer had 114 subsidiaries that were fully consolidated in its financial
statements and 195 subsidiaries were not fully consolidated due to their minor importance. Further, as of December 31,
2013, the Issuer held stakes in about 130 dormant companies and 29 legal entities were accounted for at equity.
B.6 Persons who, directly
or indirectly, have a
(notifiable) interest in
the issuers capital and
voting rights.
The following table sets forth the shareholders of the Issuer each having a, direct or
indirect, interest in the Issuers capital and voting rights as of the date of the
prospectus:
Direct shareholder Indirect shareholder
Beneficial (indirect)
ownership (in %)
Global Founders GmbH
(1)
. . . . . . . . . . . . . . . . . . Marc, Oliver and
Alexander Samwer . . . . . . . . . 52.32%
(2)
Emesco AB
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Verdere S. r.l. . . . . . . . . . . . . . . 18.08%
United Internet Ventures AG
(4)
. . . . . . . . . . . . . United Internet AG . . . . . . . . . 10.42%
PLDT Online Investments PTE. LTD.
(5)
. . .
Philippine Long Distance
Telephone Company . . . . . . . 8.40%
AI European Holdings
S. r.l.
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Len Blavatnik. . . . . . . . . . . . . . . 8.26%
Holtzbrinck Ventures
(7)
. . . . . . . . . . . . . . . . . . . . .
HV Holtzbrinck Ventures
Holding GmbH . . . . . . . . . . . . . 2.51%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00%
(1) Global Founders GmbH (formerly: European Founders Fund GmbH) (GFG) registered with
the local court (Amtsgericht) of Munich under HRB 173912, having its registered office at
Luisenstrasse 14, 80333 Munich, Germany.
(2) This figure includes aggregate shareholdings of 1.36% of the Issuers share capital which are
held by Marc, Oliver and Alexander Samwer through MOAS GmbH & Co. KG, MOAS Nr. 2
GmbH & Co. KG and MOAS Nr. 3 GmbH & Co. KG.
This figure does not include a shareholding of 0.53% of the Issuers share capital which is held
by GFG through Juwel 218. V V UG (haftungsbeschrnkt) (Juwel). HV Holtzbrinck Ventures
Fund IV LP and Holtzbrinck Ventures NM GmbH & Co. KG have a sub-participation in Juwel
which allows them to request from Juwel the transfer of all shares held by Juwel in the Issuer
after completion of the offering.
(3) Emesco AB (Emesco), registered with the Swedish Companies Registration Office (SCRO)
under 556035-3749, having its registered office at Skeppsbron 18, 10313 Stockholm, Sweden.
Emesco is a subsidiary of Investment AB Kinnevik. Verdere S. r.l. is the largest shareholder of
Investment AB Kinnevik in terms of voting rights.
(4) United Internet Ventures AG (United Internet), registered with the local court (Amtsgericht)
of Montabaur under HRB 23538, having its registered office at Elgendorfer Strasse 57, 56410
Montabaur, Germany.
(5) PLDT Online Investments PTE. LTD., registered with the Accounting & Corporate Regulatory
Authority of Singapore under registration number 201422660K, having its business address at
545 Orchard Road, #15-08/09, Far East Shopping Centre, Republic of Singapore (238882).
(6) AI European Holdings S. r.l., registered with the Luxembourg Register of Commerce and
Companies (Registre de Commerce et des Socits) under no. B 168122, having its registered
office at 15-17, avenue Gaston Diderich, L-1420 Luxembourg, Luxembourg.
(7) Holtzbrinck Ventures encompasses HV Holtzbrinck Ventures Fund IV LP, Holtzbrinck Ventures
NM GmbH & Co. KG and HV Holtzbrinck Ventures Fund V GmbH & Co. KG (together
Holtzbrinck Ventures and together with its affiliates Holtzbrinck). Further, HV Holtzbrinck
Ventures Fund IV LP and Holtzbrinck Ventures NM GmbH & Co. KG have the right to request
from Juwel the transfer of all shares held in the Issuer after completion of the offering (see also
footnote (2) above). The shares in the Issuer held by Juwel are included in Holtzbrincks ownership.
S-5
Different voting rights,
if any, of the issuers
major shareholders.
Each share in the Issuer carries one vote at the Issuers shareholders meeting. The
Issuers existing shareholders do not have different voting rights.
Direct or indirect
control over the issuer
and nature of such
control.
The Issuer is directly controlled by GFG, which owns more than 30% of the voting
rights in the Issuer. GFGs shareholders are Marc, Oliver and Alexander Samwer,
each of which holds a 33.33% stake in GFG.
The Issuers existing shareholders have entered into a voting agreement (the Voting
Agreement) that entered into effect on August 15, 2014, pursuant to which they
have agreed, among other things, to uniformly exercise their voting rights in the
Issuers shareholders meetings with regard to the composition of the Supervisory
Board. Furthermore, under the Voting Agreement each existing shareholder shall, if
any other existing shareholder votes against an action or resolution at general
meetings, by the management board or by the supervisory board, take reasonable
action that such matter is not passed and instruct its nominated member to not vote in
favor of such matter, provided that such matter (i) would change the rules of
procedure of either the management board or the supervisory board or (ii) would
negatively affect any existing shareholder unilaterally compared to any other
shareholder in the Issuer, including any person (individually or jointly with any other
person) controlling, controlled by or under common control with such party or such
other shareholder.
The Voting Agreement automatically terminates upon the earlier of (i) 48 months
after the closing of this offering; (ii) the date on which either Emesco or GFG holds
(directly and indirectly) less than 10% of the shares in the Issuer; (iii) the date on
which the aggregate ownership in GFG of Oliver, Marc and Alexander Samwer is
50% or less; or (iv) the date on which the (direct or indirect) ownership of Investment
AB Kinnevik in Emesco is 50% or less.
Following completion of the offering and assuming full placement of the Offer
Shares, issuance of all New Shares and full exercise of the Greenshoe Option (see
E.3Offer conditionsStabilization Measures, Over Allotments and Greenshoe
Option), GFG will continue to hold approximately 39.8%, and all existing
shareholders together will continue to hold at least approximately 76.0%, of the
Issuers share capital. As a result, GFG will alone and, for the duration of the Voting
Agreement, together with the other existing shareholders continue to hold a
controlling interest in the Issuer.
B.7 Selected key historical
financial information.
The financial information contained in the following tables is taken or derived from the
audited consolidated financial statements of the Issuer as of and for the fiscal year ended
December 31, 2013 and the unaudited condensed interim consolidated financial
statements of the Group as of and for the six months ended June 30, 2014 and the
Groups accounting or controlling records, or has been calculated on the basis of figures
taken from the above-mentioned sources, unless otherwise indicated. These consolidated
financial statements have been prepared in accordance with the German Generally
Accepted Accounting Principles (German GAAP). The Issuer has not prepared any
consolidated financial statements for any prior period. Additional information included
in this prospectus has been taken from the audited unconsolidated financial statements of
the Issuer for the fiscal years ended December 31, 2013, 2012 and 2011, which were
prepared in accordance with German GAAP.
Ernst & Young GmbH Wirtschaftsprfungsgesellschaft, Stuttgart, Berlin office,
Germany (E&Y), has audited the consolidated financial statements for the fiscal
year ended December 31, 2013, which do not contain comparative financial
information for the fiscal year ended December 31, 2012 and issued an unqualified
auditors report thereon. PricewaterhouseCoopers Aktiengesellschaft
Wirtschaftsprfungs-gesellschaft, Frankfurt am Main, Berlin office, Germany
(PwC), has audited the unconsolidated financial statements for the fiscal years
ended December 31, 2011, December 31, 2012 and December 31, 2013 and issued an
unqualified auditors report on each of these unconsolidated financial statements. The
aforementioned German GAAP financial statements of the Issuer and the respective
auditors reports thereon are included in this prospectus.
Where financial data in the following tables is labelled audited, this means that it
has been taken from the audited financial statements mentioned above. The label
unaudited is used in the following tables to indicate financial data that has not been
taken from the audited financial statements mentioned above but was taken either
from the Groups unaudited condensed interim consolidated financial statements or
S-6
the Groups accounting or controlling records, or has been calculated on the basis of
figures taken from the above-mentioned sources, unless otherwise indicated. All of
the financial data presented in the text and tables below are shown in millions of euro
(in million), except as otherwise stated. Certain financial data in the text and in the
tables (including percentages) in this prospectus have been rounded according to
established commercial standards, whereby aggregate amounts (sum totals, sub-
totals, differences or amounts put in relation) are calculated on the underlying
unrounded amounts. As a result, the aggregate amounts (sum totals or sub-totals or
differences or if numbers are put in relation) may not correspond in all cases to the
corresponding rounded amounts contained in the following text and tables.
Furthermore, in the following tables, these rounded figures may not add up exactly to
the totals contained in the respective tables and charts. The percentage changes that
are stated in the text and the tables have been commercially rounded to one decimal
place unless stated otherwise. Financial information presented in parentheses denotes
the presented number is a negative number. In respect of financial data set out in the
main body of the prospectus (i.e., other than in the section entitled Financial
Information), a dash () signifies that the relevant figure is not available, while a
zero (0) signifies that the relevant figure is available but has been rounded to or
equals zero.
Financial information included in this summary as of a date other than, or a period
other than the years ended, December 31, 2011, December 31, 2012 or December 31,
2013 has been taken or derived from the condensed interim consolidated financial
statements as of and for the six months ended June 30, 2014 of the Issuer or the
accounting or controlling records of the Issuer or the companies and is unaudited. All
the numbers relating to participation quotas in the summary (except stated otherwise)
are calculated on a non-diluted basis.
S-7
Selected Financial Data
Consolidated Income Statement Data
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.5 33.0 47.0
Increase / (decrease) in the work in process inventory . . . . . . . . . . . . . . . . . (0.5) 1.3 0.7
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.9 0.9 18.2
137.9 35.2 65.8
Cost of materials
Cost of raw materials, consumables and supplies and of
purchased merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27.7) (12.1) (16.7)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.6) (3.2) (4.2)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.5) (16.0) (23.5)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.0) (3.2) (4.5)
Amortization / depreciation
of intangible assets and of property, plant and equipment . . . . . . . . (1.1) (0.5) (0.8)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.8) (18.2) (40.3)
(150.6) (53.3) (89.9)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 0.1
Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199.9 41.0 13.2
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.2 0.2
Write-downs of financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) 0.0 (0.0)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (0.2) (0.7)
199.7 40.9 12.7
Result from ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187.0 22.8 (11.3)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12.3) (0.2) (1.5)
Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.3) (0.4)
(12.8) (0.5) (1.9)
Consolidated net income / net loss for the period . . . . . . . . . . . . . . . . . . . 174.2 22.3 (13.3)
Profit / (loss) carried forward from previous period. . . . . . . . . . . . . . . . . . . . (23.4) (23.4) 84.4
Advance dividend pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.6) (323.9)
Loss attributable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 5.5 13.9
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 4.4 (238.8)
S-8
Consolidated Balance Sheet Data
As of December 31, As of June 30,
2013 2014
(audited) (unaudited)
(in million) (in million)
ASSETS
Fixed assets
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.3
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 3.0
Financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390.5 380.7
thereof equity investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361.1 351.1
394.2 385.1
Current assets
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 9.8
Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.5 70.1
thereof receivables from associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.6 47.1
45.0
(1)
79.9
Other securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.0
Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437.4 80.5
482.4 201.5
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.7
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.3
877.4 587.6
EQUITY AND LIABILITIES
Equity capital
Subscribed capital 0.1 0.1
treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0)
0.1 0.1
Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462.2 501.2
Revenue reserves
Other revenue reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208.9 208.6
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (2.1)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 (238.8)
Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.0 22.5
773.0 491.5
Negative consolidation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.0
Provisions
Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 14.0
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.1 27.1
37.2 41.1
Liabilities
Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
Prepayments received on an account of orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.3
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2 20.4
Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5 0.0
Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 1.1
Liabilities to associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.4 24.0
Other liabilities
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 9.1
66.8 54.8
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.2
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
877.4 587.6
(1) Unaudited.
(2) Other liabilities include liabilities for taxes in the amount of 3.1 million as of June 30, 2014 and 4.1 million as of December 31, 2013
and liabilities for social security in the amount of 0.5 million as of June 30, 2014 and 0.2 million as of December 31, 2013.
S-9
Consolidated Cash Flow Statement Data
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38.9) (18.4) (55.5)
Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.5 (6.8) (62.2)
Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116.8 6.9 (229.7)
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.4 (18.3) (347.4)
Changes in cash and cash equivalents due to exchange rates,
changes in the basis of consolidation and valuation . . . . . . . . . . . 0.0 0.0 (9.5)
Cash and cash equivalents at the beginning of the period . . . . . . . . 187.0 187.0 437.4
Cash and cash equivalents at the end of the period . . . . . . . . . . . . . . . 437.4 168.8 80.5
Unconsolidated Income Statement Data
The following financial data has been taken from the audited unconsolidated
financial statements of Rocket Internet GmbH as of and for the financial years ended
December 31, 2011, December 31, 2012 and December 31, 2013.
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 24.3 26.0
Increase/(decrease) in the work process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 2.4 (0.5)
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.7 176.8 187.5
Cost of materials
Cost of raw materials and supplies and of purchased merchandise . . . . . . . . . (0.3) (0.1) (0.8)
Cost of purchase services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (10.3) (7.2)
(0.4) (10.4) (8.0)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6) (14.1) (22.9)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (1.9) (2.1)
(4.3) (16.0) (25.0)
Amortization/depreciation
of intangible assets and of property, plant and equipment . . . . . . . . . . . . . . . . . . (0.1) (0.4) (0.4)
of current assets in excess of what is usual in the corporation . . . . . . . . . . . . . . (0.9)
(0.1) (0.4) (1.3)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.9) (11.3) (17.4)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.6 218.1 0.3
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.2 0.4
Write-downs on financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.7) (3.1) (3.1)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0)
Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.2 380.6 158.9
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (2.5) (11.7)
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 378.1 147.1
Profit carried forward from previous year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.2
Withdrawals from capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4
Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (470.8) (80.6)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 66.6
S-10
Additional Key Figures
According to available financial information, our proven winners, emerging stars,
regional Internet groups, concepts, strategic participations and other investments
(excluding results of participations that belonged to the Global Founders Capital
Fund portfolio and were contributed in August 2014), were, each in the aggregate,
loss making (based on the respective last financial year). However, with the
exception of the proven winners, the Issuer is not in possession of information that
would allow it to reliably quantify the aggregate loss of the companies in any other
category. For our proven winners, the Issuer has reliable and meaningful financial
information. Our proven winners generated aggregated net losses of 442 million
(unaudited sum total of their net losses based on generally accepted accounting
principles applicable for the relevant company, in each case taking the last financial
year for which data was available and excluding extraordinary gains of Dafiti
resulting from the measurement of limited partnership interests). For our emerging
stars, the Issuer has reliable and meaningful financial information for CupoNation,
Lendico, Paymill and Zencap.
The following table presents a summary of certain additional key figures of our
proven winners and for CupoNation, Lendico, Paymill and Zencap for the periods
presented. The data has been derived from accounting or controlling records of these
companies. While we believe that our proven winners show promise, there is no
guarantee that they will in fact become successful businesses.
Year ended December 31,
2012 2013
(unaudited)
Proven winners
Dafiti
(1)
Net revenues (in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.5 419.3
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 88
Gross profit margin
(2)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 34
EBITDA
(3)
(in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (168.5) (205.3)
Loss for the year
(4)
(in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) (2.3)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (0.8)
Lamoda
(5)
Net revenues
(6)
(in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475.8 5,150.0
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 249
Gross profit margin
(7)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 40
EBITDA
(8)
(in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,603.7) (1,920.9)
Loss for the year (in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,370.1) (1,692.1)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34.4) (40.1)
Zalora
(9)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 68.9
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(10)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 38
EBITDA
(11)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (68.3)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (71.1)
Jabong
(12)
Net revenues
(13)
(in INR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433.1 4,385.7
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 206
Gross profit margin
(14)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (10)
EBITDA
(15)
(in INR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,875.7) (2,491.5)
Net loss (in INR millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,186.5) (2,934.4)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46.5) (37.9)
Namshi
(16)
Net revenues
(17)
(in AED million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 53.2
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 226
Gross profit margin
(18)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 46
EBITDA
(19)
(in AED million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58.6) (49.3)
Loss for the year
(20)
(in AED million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.2) (50.5)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.1) (10.4)
Lazada
(21)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 56.8
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(22)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 6
EBITDA
(23)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (50.7)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (51.8)
S-11
Year ended December 31,
2012 2013
(unaudited)
Proven winners
Linio
(24)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 47.9
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 633
Gross profit margin
(25)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) 10
EBITDA
(26)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (34.1)
Profit/(loss) for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (35.9)
Jumia
(27)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 29.0
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(28)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 19
EBITDA
(29)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (33.6)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (35.1)
Westwing
(30)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.8 111.4
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 143
Gross profit margin
(31)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 40
EBITDA
(32)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.9) (39.5)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64.0) (41.5)
Home24
(33)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.1 92.8
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 50
Gross profit margin
(34)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 39
EBITDA
(35)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.7) (37.9)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81.6) (41.8)
Hellofresh
(36)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 14.2
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 510
Gross profit margin (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
EBITDA
(37)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.2)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.4)
Emerging stars
CupoNation (net loss for the period)
(38)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3.0)
Lendico (net loss for the period)
(39)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3.2)
Paymill (net loss for the period)
(40)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (4.7)
Zencap (net loss for the period)
(41)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (0.0)
(1) Dafitis consolidated key financial indicators have been prepared on the basis of the International Financial Reporting Standards as
issued by the International Accounting Standards Board (Full IFRS).
(2) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: BRL 419.3 million;
2012: BRL 223.5 million) minus (ii) cost of goods sold (2013: BRL 276.3 million; 2012: BRL 132.9 million).
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of BRL 208.1 million; 2012: loss of BRL 170.4 million) plus
(ii) depreciation of property, plant and equipment (2013: BRL 2.3 million; 2012: BRL 1.5 million) plus (iii) amortization of intangible
assets (2013: BRL 0.5 million; 2012: BRL 0.3 million). EBITDA includes share based payment expense that amounted to
BRL 4.0 million in 2013 and BRL 14.6 million in 2012.
(4) Loss for the year included change in redemption value of puttable shares (2013: BRL 202.1 million, 2012: 172.4 million) and, therefore,
loss for the year before change in redemption value of puttable shares was BRL 204.4 million in 2013 and BRL 173.4 million in 2012.
The gain from the change of redemption amount results from the measurement of limited partnership interests that are classified as
liabilities in accordance with IAS 32.
(5) Lamodas consolidated key financial indicators have been prepared on the basis of Full IFRS.
(6) Referred to as revenue in Lamodas accounting or controlling records.
(7) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: RUB 5,150.0 million;
2012: RUB 1,475.8 million) minus (ii) cost of sales (2013: RUB 3,111.8 million; 2012: RUB 1,013.1 million).
(8) EBITDA is calculated as (i) operating profit or loss (2013: loss of RUB 1,982.7 million; 2012: loss of RUB 1,616.1 million) plus
(ii) depreciation of property, plant and equipment (2013: RUB 47.0 million; 2012: RUB 10.9 million) plus (iii) amortisation of
intangible assets (2013: RUB 14.7 million; 2012: RUB 1.5 million). EBITDA includes share based payment expenses of
RUB 37.9 million in 2013 and RUB 21.5 million in 2012.
(9) Zaloras consolidated key financial indicators have been prepared on the basis of Full IFRS.
(10) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 68.9 million) minus
(ii) cost of goods sold (2013: 42.6 million).
(11) EBITDA is calculated as (i) operating profit or loss (2013: loss of 69.2 million) plus (ii) depreciation and impairment of property, plant
and equipment (2013: 0.6 million) plus (iii) amortization of intangible assets (2013: 0.3 million). EBITDA includes share based
payment expense that amounted to 6.9 million in 2013.
(12) Jabong consolidated key financial indicators for the twelve-month period ended March 31, 2013 and March 31, 2014 have been
prepared on the basis of Full IFRS.
(13) Referred to as revenue in Jabongs accounting or controlling records.
(14) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (twelve-month period ended
March 31, 2014: INR 4,385.7 million; twelve-month period ended March 31, 2013: INR 1,433.1 million) minus (ii) cost of sales
(twelve-month period ended March 31, 2014: INR 4,832.8 million; twelve-month period ended March 31, 2013: INR 1,810.7 million).
(15) EBITDA is calculated as (i) loss from operations (twelve-month period ended March 31, 2014: loss of INR 2,573.7 million;
twelve-month period ended March 31, 2013: loss of INR 2,953.5 million) plus (ii) depreciation and amortization (twelve-month period
ended March 31, 2014: INR 82.2 million; twelve-month period ended March 31, 2013: INR 77.8 million). EBITDA includes share-
based payment transaction expense that amounted to INR 65.7 million in the twelve-month period ended March 31, 2014 and
INR 153.6 million in the twelve-month period ended March 31, 2013.
S-12
(16) Consolidated key financial indicators of MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG (prepared on the basis of Full IFRS).
MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG is a 91.1%-owned subsidiary of Middle East eCommerce Holding GmbH
(Namshi) and Middle East eCommerce Holding GmbHs only meaningful asset.
(17) Referred to as sale of goods in Namshis accounting or controlling records.
(18) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: AED 53.2 million;
2012: AED 16.3 million) minus (ii) cost of goods sold (2013: AED 28.9 million; 2012: AED 10.9 million).
(19) EBITDA is calculated as (i) operating profit or loss (2013: loss of AED 50.1 million; 2012: loss of AED 59.0 million) plus
(ii) depreciation of property and equipment (2013: AED 0.6 million; 2012: AED 0.2 million) plus (iii) amortization of intangible assets
(2013: AED 0.2 million; 2012: AED 0.1 million). EBITDA includes expense arising from equity-settled share-based payment
transactions that amounted to AED 12.2 million in 2013 and AED 9.0 million in 2012.
(20) Loss for the year included change of redemption amount of financial liability (2012: AED 34.9 million) and, therefore, loss before
change of redemption amount was AED 59.2 million in 2012. The gain from the change of redemption amount results from the
measurement of limited partnership interests that are classified as liabilities in accordance with IAS 32.
(21) Lazadas consolidated key financial indicators have been prepared on the basis of Full IFRS.
(22) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 56.8 million) minus
(ii) cost of goods sold (2013: 53.2 million).
(23) EBITDA is calculated as (i) operating profit or loss (2013: loss of 51.3 million) plus (ii) depreciation of property, plant and equipment
(2013: 0.5 million) plus (iii) amortization of intangible assets (2013: 0.1 million). EBITDA includes share based payment expense that
amounted to 6.5 million in 2013.
(24) Linios consolidated key financial indicators have been prepared on the basis of Full IFRS.
(25) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 47.9 million; 2012:
6.5 million) minus (ii) cost of goods sold (2013: 43.2 million; 2012: 6.9 million).
(26) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.5 million; 2012: loss of 14.6 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.1 million) plus (iii) amortization of intangible assets (2013: 0.05 million;
2012: 0.01 million). EBITDA includes share based payment expense that amounted to 4.5 million in 2013 and 3.1 million in 2012.
(27) Jumias consolidated key financial indicators have been prepared on the basis of Full IFRS.
(28) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 29.0 million) minus
(ii) cost of goods sold (2013: 23.6 million).
(29) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.1 million) plus (ii) depreciation and impairment of property, plant
and equipment (2013: 0.4 million) plus (iii) amortization and impairment of intangible assets of (2013: 0.03 million). EBITDA
includes share based payment expense that amounted to 3.1 million in 2013.
(30) Westwings consolidated key financial indicators have been prepared on the basis of German GAAP.
(31) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 111.4 million; 2012:
45.8 million) minus (ii) cost of goods sold (2013: 66.6 million; 2012: 34.0 million).
(32) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 62.2 million) plus (ii) depreciation of
fixed assets (2013: 0.7 million; 2012: 0.3 million). Operating profit or loss is calculated as (i) gross profit (2013: 44.8 million; 2012:
11.8 million) minus (ii) selling expenses (2013: 64.4 million; 2012: 50.9 million) minus (iii) general and administrative expenses
(2013: 19.6 million; 2012: 22.4 million) plus (iv) other income (2013: 0.5 million; 2012: 0.2 million) minus (v) other operating
expenses (2013: 1.5 million; 2012: 0.9 million).
(33) Home24s consolidated key financial indicators have been prepared on the basis of the International Financial Reporting Standards as
issued by the International Accounting Standards Board and as adopted by the EU (EU-IFRS).
(34) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 92.8 million; 2012:
62.1 million) minus (ii) cost of goods sold (2013: 56.6 million; 2012: 43.7 million).
(35) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 81.1 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.4 million) plus (iii) amortization of intangible assets (2013: 1.9 million;
2012: 0.03 million). EBITDA includes share based payment expense that amounted to 6.4 million in 2013 and 5.6 million in 2012.
(36) Hellofreshs consolidated key financial indicators have been prepared on the basis of German GAAP.
(37) EBITDA is calculated as (i) result of ordinary business (2013: loss of 5.4 million; 2012: loss of 6.0 million) plus (ii) interest and
similar expenses (0.0 million; 2012: 0.0 million) minus (iii) interest and similar income (2013: 0.0 million; 2012: 0.0 million) plus
(iv) amortization and depreciation of intangible assets and of property, plant and equipment (2013: 0.1 million, 2012: 0.0 million).
(38) Based on CupoNation GmbHs accounting and controlling records that were prepared in accordance with German GAAP.
(39) Net loss for the period from August 30, 2013 to December 31, 2013, based on ECommerce Holding II S. r.l.s accounting and
controlling records that were prepared in accordance with German GAAP.
(40) Based on Paymill GmbHs accounting and controlling records that were prepared in accordance with German GAAP.
(41) Loss for the financial year for the period from September 27, 2013 to December 2013, based on Zencap Global S. r.l.s accounting and
controlling records that were prepared in accordance with Luxembourg generally accepted accounting principles.
S-13
Last portfolio values
The following tables provide summarized information concerning the last portfolio
values (LPV), which represents the latest third party valuation in a financing round
(including a financing round of Lamoda solely subscribed by its majority shareholder
Bigfoot I) or secondary transaction, of our 11 proven winners
(1)
, 9 emerging stars
(2)
and 4 regional Internet groups that group a total of 30 companies (including 1 proven
winner) or, with respect to some of the stakes in the categories strategic
participations and other investments, the value assigned to them in connection
with their contribution to the Issuer. Strategic participations includes 8 companies
that were founded by the Issuer and 17 participations that were contributed to the
Issuer. Other investments includes 9 companies that were founded by the Issuer and
36 participations that were contributed to the Issuer. LPVs were calculated based on
the amount invested or price paid by a third party, i.e., an investor other than the
Issuer, divided by the stake acquired by such third party. This means that the
valuations shown represent post-money, post-capital commitment valuations. The
calculation of LPVs is not defined by German GAAP and other companies may
compute LPVs using other methods or definitions than the Issuer. As the LPVs are
not values determined in accordance with German GAAP, they differ from the value
of the financial assets in the Issuers consolidated financial statements due to the fact
that the LPVs are based on values assigned to the relevant entity in a transaction with
a third party, while the values of the financial assets in the Issuers consolidated
financial statements are based on historical cost or the Issuers direct or indirect share
in the equity capital of the relevant entity as determined in accordance with German
GAAP. For example, the financial assets as of June 30, 2014, amounted to 380.7
million, including 351.1 million of equity investments in associates. The following
tables also set forth the current direct and indirect stakes held by the Issuer in these
companies and the corresponding values of these direct and indirect stakes. The data
has been calculated based on accounting and controlling records of the Issuer. None
of the proven winners or emerging stars showed a net profit in fiscal 2013.
Date of last
financing round
(notarization
date)
(1)
LPV
( million)
Current
stake of the
Issuer
(2)
Stake-
weighted
LPV
( million)
(unaudited)
Proven Winners
(3)
Dafiti . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 2013 778 22.7% 177
Lamoda . . . . . . . . . . . . . . . . . . . . . . . July 2014 720 23.5% 169
(4)
Zalora . . . . . . . . . . . . . . . . . . . . . . . . . Mar. 2014 524 25.0%
(5)
131
Jabong. . . . . . . . . . . . . . . . . . . . . . . . . Dec. 2013 388 21.4% 83
Namshi . . . . . . . . . . . . . . . . . . . . . . . . Feb. 2014 105 34.4% 36
Lazada . . . . . . . . . . . . . . . . . . . . . . . . Feb. 2014 504 26.7% 135
Linio . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 2014 259 35.2% 91
Jumia . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2013 212 26.8% 20
(6)
Home24 . . . . . . . . . . . . . . . . . . . . . . . July 2014 498 49.5% 247
Westwing . . . . . . . . . . . . . . . . . . . . . May 2014 353 33.7% 119
Hellofresh . . . . . . . . . . . . . . . . . . . . . Jun. 2014 131 37.1% 49
Total . . . . . . . . . . . . . . . . . . . . . . . . . . 4,473 1,256
(7)
(1) Proven winners are our largest and most mature companies. They typically show a last financing
round valuation of more than 100 million and have a track record of at least two years or more
than 50 million in revenues. Eleven of our companies are included in this category.
(2) Our emerging stars companies are typically smaller than our proven winners. They have
completed a financing round beyond the seed funding, generate revenue and have measurable
key performance indicators that show significant growth. Nine of our companies are included in
this category.
S-14
Date of last
financing round
(notarization
date)
(1)
LPV
( million)
Current
stake of the
Issuer
(2)
Stake-
weighted
LPV
( million)
(unaudited)
Emerging Stars
(8)
FabFurnish . . . . . . . . . . . . . . . . . . . . n/a n/a
(9)
25.6% n/a
Zanui . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
(9)
31.4% n/a
foodpanda . . . . . . . . . . . . . . . . . . . . . Aug. 2014 178 44.9% 80
Wimdu . . . . . . . . . . . . . . . . . . . . . . . . May 2012 95 52.3% 49
CupoNation . . . . . . . . . . . . . . . . . . . July 2012 33 44.7% 15
Helpling . . . . . . . . . . . . . . . . . . . . . . . Aug. 2014 20 59.8% 12
Lendico . . . . . . . . . . . . . . . . . . . . . . . July 2014 120 55.5% 67
PAYMILL . . . . . . . . . . . . . . . . . . . . Jan. 2014 34 49.6%
(10)
17
Zencap . . . . . . . . . . . . . . . . . . . . . . . . Jun. 2014 86 74.2% 64
Total . . . . . . . . . . . . . . . . . . . . . . . . . . 565 303
Date of last
financing round
(notarization
date)
(1)
LPV
( million)
Current
stake of the
Issuer
(2)
Stake-
weighted
LPV
( million)
(unaudited)
Regional Internet
Groups
(11)
Africa Internet Group . . . . . . . . Dec. 2013 504 33.3% 168
Asia Internet Group . . . . . . . . . . Apr. 2014 360 50.0% 180
Latin America Internet
Group. . . . . . . . . . . . . . . . . . . . . . . Dec. 2013 267 65.0% 173
Middle East Internet
Group. . . . . . . . . . . . . . . . . . . . . . . Dec. 2013 120 50.0% 60
Total . . . . . . . . . . . . . . . . . . . . . . . . . . 1,251 581
Date of last
financing round
(notarization date)
Current stake
of the Issuer
(2)
Stake-weighted
LPV
(12)
( million)
(unaudited)
Strategic participations . . . . . . . . . . . . . . . . . . . n/a n/a 181
Other investments . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a 238
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420
(1) A financing round is a single investment or a series of investments made at the same price per
share over a period of time.
(2) Direct and indirect stakes as of August 31, 2014.
(3) Dafiti refers to Dafiti Latam GmbH & Co. Beteiligungs KG together with the legal entities in
which it holds a direct or indirect stake and that operate under the Dafiti brand; Lamoda refers
to Lamoda GmbH together with the legal entities in which it holds a direct or indirect stake and
that operate under the Lamoda brand; Zalora refers to Zalora Group GmbH together with the
legal entities in which it holds a direct or indirect stake and that operate under the Zalora and
The Iconic brands; Jabong refers to Jabong GmbH together with the legal entities in which it
holds a direct or indirect stake and that operate under the Jabong brand; Namshi refers to
Middle East eCommerce Holding GmbH together with the legal entities in which it holds a
direct or indirect stake and that operate under the Namshi brand; Lazada Group refers to
Lazada Group GmbH together with the legal entities in which it holds a direct or indirect stake
and that operate under the Lazada and Lamido brands; Linio refers to TIN Jade GmbH
together with the legal entities in which it holds a direct or indirect stake and that operate under
the Linio brand; Jumia refers to Africa eCommerce Holding GmbH together with the legal
entities in which it holds a direct or indirect stake and that operate under the Jumia or Zando
brands; Home24 refers to Home24 GmbH together with the legal entities in which it holds a
direct or indirect stake and that operate under the Home24 and Mobly brands; Westwing
refers to Westwing Group GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Westwing and Dalani brand; and Hellofresh refers to
HelloFresh GmbH together with the legal entities in which it holds a direct or indirect stake and
that operate under the Hellofresh brand.
(4) Based on last financing round, in which only Bigfoot GmbH (Bigfoot I) participated; based on
the last financing round with external investors, which started in May 2013, the Issuers stake
would have been valued at 102 million.
(5) On August 27, 2014, Bigfoot II provided additional cash to Zalora in return for additional shares
in Zalora, resulting in an increase of the stake of the Issuer in Zalora to 25.5%.
(6) Represents only the share-weighted LPV for Jumia held via BGN Brillant Services GmbH
(Bigfoot II). The additional stake of the Issuer of 17.2% held via Africa Internet Group is not
included.
(7) Only includes the stake-weighted LPV for Jumia held via Bigfoot II of 20 million.
S-15
(8) FabFurnish refers to VRB GmbH & Co. B-181 KG together with the legal entities in which it
holds a direct or indirect stake and that operate under the FabFurnish brand; Zanui refers to
VRB GmbH & Co. B-131 KG together with the legal entities in which it holds a direct or
indirect stake and that operate under the Zanui brand; foodpanda refers to Emerging Markets
Online Food Delivery Holding S. r.l. together with the legal entities in which it holds a direct or
indirect stake and that operate under the foodpanda, hellofood and Delivery Club brands;
Wimdu refers to Wimdu GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Wimdu brand; CupoNation refers to CupoNation
Group GmbH together with the legal entities in which it holds a direct or indirect stake and that
operate under the CupoNation brand; Helpling refers to Helpling Group Holding S. r.l.
together with the legal entities in which it holds a direct or indirect stake and that operate under
the Helpling brand; Lendico refers to ECommerce Holding II S. r.l. together with the legal
entities in which it holds a direct or indirect stake and that operate under the Lendico brand;
PAYMILL refers to Paymill Holding GmbH (formerly Brillant 1470. GmbH) together with
the legal entities in which it holds a direct or indirect stake and that operate under the PAYMILL
brand; and Zencap refers to Zencap Global S. r.l. together with the legal entities in which it
holds a direct or indirect stake and that operate under the Zencap brand.
(9) FabFurnish and Zanui have been funded through intermediate holdings (Bigfoot I and Bigfoot II
respectively). There were no external financing rounds and hence no LPV.
(10) Ownership of 49.6%, but up to 1,692 shares currently held by the Issuer are subject to call
options granted to certain founders by the Issuer that have not yet been exercised.
(11) Africa Internet Group refers to Africa Internet Holding GmbH and the legal entities in which
it holds a direct or indirect stake; Asia Internet Group refers to Asia Internet Holding S. r.l.
and the legal entities in which it holds a direct or indirect stake; Latin America Internet Group
refers to MKC Brillant Services GmbH and the legal entities in which it holds a direct or indirect
stake; and Middle East Internet Group refers to Middle East Internet Holding S. r.l. and the
legal entities in which it holds a direct or indirect stake.
(12) The categories strategic participations and other investments contain both stakes in
companies that were founded by us and stakes in legal entities that belonged to the Global
Founders Capital Fund portfolio and were contributed in August 2014. The LPVs for these
contributed stakes represent the value assigned to them in the contribution agreement.
Significant changes to
the issuers financial
condition and
operating results
during and subsequent
to the period covered
by the historical
key financial
information.
The following significant changes in the Issuers revenues for the period occurred in
the six months ended June 30, 2014 and in the financial years 2013, 2012 and 2011:
Six months ended June 30, 2014 and 2013 (consolidated)
The Groups sales revenues increased by 43% from 33.0 million in the six months
ended June 30, 2013 to 47.0 million in the six months ended June 30, 2014. This
increase was attributable to an increase of sales revenues from e-commerce
businesses and to an increase in sales revenues from consulting services, nearly all of
which were provided to companies in our network of companies.
Consolidated net loss / net income for the period deteriorated by 35.6 million from a
net income of 22.3 million in the six months ended June 30, 2013 to a net loss of
13.3 million in the six months ended June 30, 2014. This deterioration was mainly
driven by a decrease in income from associated companies and increases in other
operating expenses and personnel expenses.
Fiscal year 2013 (consolidated)
The Groups sales revenues in 2013 amounted to 72.5 million. Nearly two-thirds of
these sales revenues were generated by the Groups e-commerce activities mainly
attributable to three of our smaller companies that we fully consolidate and our
activities in Latin America. Other services accounted for 36% of the sales revenues
in 2013. The contribution of marketplace activities to sales revenues was not
significant in 2013.
Consolidated net income for the year amounted to 174.2 million, mainly due to the
Zalando SE spin-off and the effects of financing rounds on income from associated
companies.
Fiscal years 2013 and 2012 (unconsolidated)
On an unconsolidated basis, sales revenues increased 7%, from 24.3 million in 2012
to 26.0 million in 2013. This increase was primarily attributable to an increase in
the range of services the Issuer provides to its network of companies, including the
creation of a corporate center.
Net income for the year 2013 decreased by 61% from 378.1 million in 2012 to
147.1 million in 2013, primarily due to a decrease in income from participations and an
increase in personnel expenses.
S-16
Fiscal years 2012 and 2011 (unconsolidated)
On an unconsolidated basis, sales revenues increased more than three times from
6.7 million in 2011 to 24.3 million in 2012. This increase was in line with general
growth of the Issuers business and the increase in services provided by the Issuer to
its network of companies, including both the range of services and the amount of
time spent by its employees and third parties on providing such services.
Net income for the year increased strongly from 50.7 million in 2011 to
378.1 million in 2012 primarily due to increases in income from participations and
other operating income, due to sales of shares in Groupon, Inc. and Zalando SE.
Recent developments
Our companies continued to increase their net revenues in the six months ended
June 30, 2014. EBITDA development was not uniform, as some of our companies
continued to invest in their growth and, accordingly, showed an increase in negative
EBITDA on an absolute basis.
The Issuer entered into investment agreements with Philippine Long Distance
Telephone Company, which invested 333 million in cash in the Issuer, and with
United Internet Ventures AG, which invested 333 million in cash and made a
contribution in kind valued at 102 million. Finally, affiliates of Holtzbrinck, which
hold a large number of investments in our companies and intermediate holding
companies, contributed some of their investments in return for shares in the Issuer.
In September 2014, we agreed with the other shareholders of the fashion companies
held by Bigfoot I, Bigfoot II and BigCommerce to group these companies in a single
emerging market focused global fashion group. This restructuring will affect Dafiti,
Lamoda, Zalora, Jabong and Namshi and is expected to take effect in December
2014.
B.8 Selected key pro forma
financial information.
Not applicable. No pro forma financial information has been prepared by the Issuer.
B.9 Profit forecast and
estimate.
Not applicable. No profit forecast or estimate is being presented by the Issuer.
B.10 Qualifications in the
audit report on the
historical financial
information.
Not applicable. The auditors reports on the audited historical financial information
included in this prospectus have been issued without qualification.
B.11 Insufficiency of the
issuers working
capital for its present
requirements.
Not applicable. The Issuer is of the opinion that the Group is in a position to meet the
payment obligations that become due within at least the next twelve months.
C SECURITIES
C.1 Type and class of the
securities being
admitted to trading.
Ordinary bearer shares with no par value (Stckaktien), each with a notional value of
1.00 and full dividend rights from January 1, 2014.
Security identification
number.
International Securities Identification Number (ISIN): DE000A12UKK6
German Securities Code (Wertpapierkennnummer, WKN): A12UKK
Common Code: 111314110
Ticker Symbol: RKET
C.2 Currency. Euro.
C.3 The number of shares
issued and fully paid.
As of the date of this prospectus, 120,102,255 ordinary bearer shares with no par
value (Stckaktien). The share capital has been fully paid up.
Upon registration of the IPO Capital Increase (as defined in E.3 below) with the
Commercial Register, the Issuers outstanding share capital will amount to up to
153,043,432.00 and be divided into up to 153,043,432 ordinary bearer shares with
no-par value (Stckaktien). Assuming full exercise of the Greenshoe Option (as
defined in E.3 below), the Issuer will issue further up to 4,941,176 ordinary bearer
shares with no-par value (Stckaktien) from the Authorized Capital 2014. In such
event, the Issuers outstanding share capital will amount to up to 157,984,608.00
and be divided into up to 157,984,608 ordinary bearer shares with no-par value
(Stckaktien). All shares will be fully paid up.
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Par value per share. Each of the shares of the Issuer represents a notional share of 1.00 in the share
capital.
C.4 Description of the
rights attached to the
securities.
Each share in the Issuer carries one vote at the Issuers shareholders meeting. There
are no restrictions on voting rights. The shares carry full dividend rights as from
January 1, 2014.
C.5 Description of any
restrictions on the free
transferability of the
securities.
Not applicable. The Issuers shares are freely transferable in accordance with the
legal requirements for bearer shares. There are no prohibitions or restrictions on
disposals with respect to the transferability of the Issuers shares.
C.6 Application for
inclusion to trading on
a regulated market
and identity of
regulated markets
where the securities
are to be traded.
Not applicable. The approval for inclusion to trading for the Issuers shares on the
non-regulated market (Entry Standard) of the Frankfurt Stock Exchange (Frankfurter
Wertpapierbrse) is expected to be granted on October 8, 2014. Trading in the
Issuers shares is currently planned to commence on October 9, 2014. The Issuer
currently intends to apply for admission of its shares to trading on the regulated
market (regulierter Markt) with simultaneous admission to the Prime Standard sub-
segment of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse), or a
comparable market segment of another national or international stock exchange, in
the next 18 to 24 months, assuming that it meets the applicable listing requirements.
C.7 Dividend policy. The Issuer currently intends to retain all available funds and future earnings, if any,
to provide more equity capital to its companies to support their operations and to
position them to grow. The Issuer currently does not intend to pay cash dividends in
the foreseeable future. Any future determination to pay dividends will be made in
accordance with applicable laws, and will depend upon, among other factors, the
Issuers results of operations, financial condition, contractual restrictions and capital
requirements. The Issuers future ability to pay dividends may be limited by the
terms of any future debt or preferred securities.
D RISKS
D.1 Key risks specific to
the issuer and its
industry.
An investment in the shares of the Issuer is subject to risks. Therefore, investors
should read this entire document and carefully consider the following risks and the
other information contained in this prospectus when deciding whether to invest in the
Issuers shares. The market price of the Issuers shares could fall if any of these risks
were to materialize, in which case investors could lose some or all of their
investment. The following risks, alone or together with additional risks and
uncertainties not currently known to the Issuer, or that the Issuer might currently
deem immaterial, could materially adversely affect our business, net assets, financial
condition and results of operations.
The order in which the risks are presented is not an indication of the likelihood of the
risks actually materializing, or the significance or degree of the risks or the scope of
any potential harm to our business, net assets, financial condition, cash flows, results
of operations or the value of the Issuers direct and indirect interests in our
companies. The risks mentioned herein may materialize individually or cumulatively.
Risks Related to the Issuer and Our Companies
We disclose in this prospectus valuations derived from investments in the Issuer
and our companies. These valuations may not reflect the past, present or future
fair values of the Issuer or our companies, and potential investors in this offering
should not place undue reliance on these valuations.
We have grown into a large organization with a significant number of
companies active primarily in three focus sectors and 116 countries. There is no
guarantee that we can maintain our historical growth rates or that we can
continue to manage future growth, including as a result of increased
competition.
Nearly all of our companies have limited operating histories, are significantly
loss making, have a negative operating cash flow, require significant capital
expenditure and may never be profitable or cash generating.
Our operations and growth may be impaired or cease if we do not succeed in
raising additional equity or in borrowing money on favorable terms.
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A number of shareholders agreements relating to our companies contain
liquidation preferences, which may result in a disproportionate decrease in the
value of the Issuers direct and indirect stakes in our companies, and protection
clauses for third party investors if a later financing round is effected at a lower
valuation which may lead to a dilution of the Issuers direct and indirect
interests in our companies.
Because the Issuer does not control most of our companies, they are
operationally independent and may make business decisions that are not in the
Issuers or their best interests or that the Issuer does not agree with and which
could impair the value of the Issuers direct and indirect holdings.
Our global expansion, in particular into a large number of emerging markets,
exposes us to political, economic, legal and other risks and uncertainties.
Our target markets may not be as attractive as we currently believe and may not
develop as we anticipate.
We may never become profitable in our target markets due to the substantial
operating complexity we need to overcome, including the maintenance of
significant logistics, delivery and payment infrastructure, particularly in our
e-commerce sector.
The Issuer was co-founded by Oliver Samwer, the Issuers current CEO, and we
continue to depend on his leadership. Conflicts of interest may arise between
Oliver Samwer and us and there is no guarantee that Oliver Samwer will
continue to devote his time and energy to us.
Conflicts of interest may arise between us and our current or former companies
or among them.
Our future growth will depend on our ability to identify additional proven
Internet business concepts on which to model our companies and to turn those
concepts into successful enterprises.
Following the offering, the Issuer currently intends to change its investment
strategy by investing more of the Issuers own funds in our companies and by
maintaining a higher stake in our companies for a longer period of time, which will
increase the Issuers exposure if a company fails and may result in a significant
deterioration of the Issuers consolidated results of operation.
Our companies may face intense competition and may fail if our competitors
provide superior Internet-related offerings or if we do not adapt to changing
market environments.
Any harm to the brands or reputation of the Issuer or our companies may
materially and adversely affect our relationships with businesses, consumers or
investors.
We may be the subject of anti-competitive behavior, harassing or other
detrimental conduct by third parties including complaints to regulatory agencies,
negative blog postings, and the public dissemination of malicious assessments of
our business that could harm our reputation and cause us to lose market share,
customers and revenues.
We depend on talented, experienced and committed personnel to grow and
operate our business and companies, and if we are unable to hire, retain, manage
and motivate our personnel, or if our new personnel does not perform as
anticipated, we may be unable to grow effectively.
We may not be able to maintain our culture, which has been a key to our
success.
We depend on the framework agreements with leading global technology
companies that provide advertising and technology services to us.
Many of our companies depend on third parties for their merchandise supply and
for the provision of logistics and other services, which they may fail to provide
in a reliable or satisfactory manner.
Our technology platform and our infrastructure are essential to us, and any
failure to maintain the satisfactory performance of our technology platform and
infrastructure may materially and adversely affect our business and reputation.
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Our business may be disrupted if we are unable to upgrade our technology
platform to meet increased demand.
Third-party attempts to breach our networks or data security, or the existence of
any other security vulnerabilities, may damage our reputation and adversely
affect our business.
The Issuer may not be able to establish or maintain an efficient system of
internal controls over financial reporting, and the Issuers finance department
may not be adequate to meet the needs of our growing business.
The Issuers financial results may be volatile, which could cause the Issuers
share price to fluctuate.
Potential investors in this offering have to make an investment decision based on
limited historical information that does not reflect the operating performance of
our unconsolidated companies.
The Issuer does not have reliable financial information for a number of
companies in its network of companies and other participations.
The Issuer anticipates changing its accounting methodology from German
GAAP to IFRS, which could result in unfavorable accounting charges or effects
and could adversely affect its reported operating results.
If we are unable to accurately assess our operating performance through certain
key performance indicators, our ability to determine and implement appropriate
business strategies may be impaired.
Legal and Regulatory Risks
Government regulation of the Internet and e-commerce is evolving, may change in
a manner that is unfavorable and we may fail to comply with applicable regulations
and unfavorable changes or our failure to comply with these regulations may
substantially harm our business, financial condition, cash flows, results of
operations and the value of the Issuers direct and indirect interests in our
companies.
Conducting business in 116 countries requires us to comply with numerous,
complex and sometimes conflicting legal and regulatory requirements.
Our companies do business in certain countries where corruption is considered
to be widespread, and we are exposed to the risk of extortion and violation of
anti-corruption laws and regulations.
Our e-commerce companies may become liable to their customers and lose
customers if they have errors or defects in their products or services or
disruptions in their service.
Our marketplace companies may be subject to allegations and lawsuits
concerning the content of their websites or claiming that items listed on their
websites are pirated, counterfeit or illegal.
Our financial technology companies are subject to numerous and stringent
regulations in the jurisdictions where they operate.
We may be subject to litigation proceedings that could disrupt and harm our
business.
We may not be able to adequately protect our intellectual property rights or may
be accused of infringing the intellectual property rights of third parties.
As we use a large number of very similar shareholders agreements, if a court
were to invalidate one or more of our standardized shareholders agreements, the
validity of a large number of our shareholders agreements could be in jeopardy;
additionally, we may not be in compliance with all the provisions of our various
shareholders agreements and other agreements.
Tax Risks
As a fast growing and internationally expanding network of companies which
has experienced a large number of significant exits, mergers and restructurings
in quick succession, we face unsettled tax questions and it is more difficult for
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us to assess potential tax risks arising from unaudited fiscal years and we may
therefore more likely be required to pay significant additional taxes following
future tax audits and ongoing tax assessments than more established companies.
If tax authorities deem the Issuer to fall within the scope of the short-term profit
rule, its dividend income and capital gains received or realized since 2009 could
become fully taxable.
Certain of our cross-border business dealings may trigger unforeseen adverse tax
consequences.
The spin-off of Zalando and the subsequent redemption of shares in the Issuer
by Rocket Beteiligungs GmbH may result in a significant additional tax burden.
The organizational setup of our tax compliance may not have been at all stages
of our development sufficient to meet the growing demands of a globally
expanding organization.
We may be required to pay additional taxes if our intra-group transfer prices do
not meet prevailing market rates. Failure of our companies to fully comply with
VAT requirements could trigger adverse tax consequences, including an
obligation to refund input VAT.
We are subject to the tax laws and regulations in Germany and numerous other
countries. Our tax burden may increase as a consequence of future tax treatment
of dividend payments, non-deductibility of interest payments, current or future
tax assessments or court proceedings based on changes in domestic or foreign
tax laws and double taxation treaties or changes in the application or
interpretation thereof.
Due to changes in the ownership structure of our companies, we may not be able
to make use of current tax losses, tax loss carry-forwards and interest carry-
forwards.
D.3 Key risks specific to
the securities.
Risks Related to Shares and the Offering
The market price of the Issuers shares could fall if any of these risks were to
materialize, in which case investors could lose some or all of their investment.
There is no existing market for the Issuers shares and the development of an
active trading market may be limited by the contemplated listing in the Entry
Standard sub-segment.
The market price and trading volume of the Issuers shares may deviate
significantly from the offer price and could fluctuate significantly.
The Issuer will have broad discretion in how it uses the proceeds from the
offering, and if the Issuer fails to use them effectively, the price of the Issuers
shares may decline.
The Issuer currently does not intend, and may not be able to, pay dividends in
the foreseeable future.
As a result of the offering, the Issuer will face additional administrative
requirements, including the obligation to issue half-year interim financial
statements for the first time.
Any future sales of the Issuers shares by its existing shareholders or investors
acquiring shares in the offering, including the so-called cornerstone investors,
could depress the market price of the Issuers shares, and our shareholders
interests may deviate from, or conflict with, the Issuers interests.
Future capitalization measures may lead to substantial dilution, i.e., a reduction
in the value of the shares and the control rights of existing shareholders
interests in the Issuer. Future offerings of debt or equity securities may adversely
affect the market price of the Issuers shares.
E OFFER
E.1 The total net proceeds. The Issuer will receive the proceeds of the offering resulting from the sale of the
New Shares (as defined below in E.3) and, if and to the extent the Greenshoe Option
(as defined below in E.3) is exercised, from the exercise of the Greenshoe Option (as
defined below in E.3), in each case after deduction of fees and commissions.
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Assuming a placement of all New Shares (as defined below in E.3) the Issuer estimates
that gross proceeds would amount to approximately 1,169.4 million, 1,284.7 million
and 1,400.0 million, respectively, at the low end, mid-point and high end of the price
range set for the offering of the Offer Shares (the Price Range); net proceeds of
approximately 1,123.5 million, 1,235.5 million and 1,347.5 million, respectively, at
the low end, mid-point and high end of the Price Range.
Assuming full exercise of the Greenshoe Option (as defined below in E.3) and a
placement of all Offer Shares, the Issuer estimates that gross proceeds would amount to
approximately 1,344.8 million, 1,477.4 million and 1,610.0 million, respectively, at
the low end, mid-point and high end of the Price Range; net proceeds would amount to
approximately 1,293.0 million, 1,421.7 million and 1,550.4 million, respectively, at
the low end, mid-point and high end of the Price Range.
Estimate of the total
expenses of the
offering and listing,
including estimated
expenses charged to
the investor by the
issuer.
The expenses related to the offering and the listing of the Issuers entire share capital
will be borne by the Issuer and are expected to total approximately 12.5 million
(excluding underwriting and placement commissions payable to the Underwriters,
which are described in the next paragraph).
Assuming an offer price at the low end, mid-point and high end of the Price Range,
placement of the maximum number of Offer Shares (as defined below in E.3), full
exercise of the Greenshoe Option (as defined below in E.3) and payment in full of
the discretionary fee of up to 20.2 million, 22.2 million and 24.2 million, at the
low end, mid-point and high end of the Price Range, respectively, the commission
payable to the Underwriters will amount to 39.3 million, 43.2 million and
47.1 million, respectively.
Based on the assumptions described in the preceding paragraph, the total expenses of the
offering and listing to be borne by the Issuer are expected to amount to 51.8 million,
55.7 million and 59.6 million, respectively, resulting in net proceeds from the offering
of 1,293.0 million, 1,421.7 million and 1,550.4 million, respectively.
Investors will not be charged expenses by the Issuer or the Underwriters.
E.2a Reasons for the
offering.
The Issuer intends to (i) sell the New Shares to finance the growth and development
of its businesses and (ii) list the Issuers shares on the non-regulated market segment
(Entry Standard) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) to
achieve better access to the capital markets.
Use of proceeds,
estimated net amount
of the proceeds.
The Issuer currently expects to receive total net proceeds of 1,293.0 million to
1,550.4 million from the offering (assuming placement of the maximum number of
Offer Shares and full exercise of the Greenshoe Option). The Issuer currently intends
to spend approximately 400 million to 500 million of the proceeds from the offering
on investments in proven winners in order to increase its stakes in these companies.
The Issuer currently intends to spend 250 million to 350 million on equity capital
investments in selected emerging stars, including in particular foodpanda, Helpling
and Lendico, in order to retain or attain a majority position over the long-term and to
reduce their reliance on outside funding sources. Further, the Issuer currently intends
to spend 600 million to 700 million on concepts and new companies in order to be
in a position to expand the funding of new companies significantly beyond seed round
to retain a majority ownership position also over the long-term.
The Issuer will receive the proceeds of the offering resulting from the sale of the
New Shares (as defined below in E.3) and, if and to the extent the Greenshoe Option
(as defined below in E.3) is exercised, from the exercise of the Greenshoe Option (as
defined below in E.3), in each case after deduction of fees and commissions.
Assuming a placement of all New Shares (32,941,177 shares) (as defined below in
E.3), the Issuer estimates that gross proceeds would amount to approximately
1,169.4 million, 1,284.7 million and 1,400.0 million, respectively, at the low end,
mid-point and high end of the Price Range; net proceeds would amount to
approximately 1,123.5 million, 1,235.5 million and 1,347.5 million, respectively,
at the low end, mid-point and high end of the Price Range.
Assuming full exercise of the Greenshoe Option (as defined below in E.3) and a
placement of all Offer Shares, the Issuer estimates that gross proceeds would amount
to approximately 1,344.8 million, 1,477.4 million and 1,610.0 million,
respectively, at the low end, mid-point and high end of the Price Range; net proceeds
would amount to approximately 1,293.0 million, 1,421.7 million and
1,550.4 million, respectively, at the low end, mid-point and high end of the Price
Range.
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Offer conditions
E.3 Description of the
terms and conditions
of the offer.
The offering (including any potential over-allotment) relates to the sale of 37,882,353
Offer Shares (as defined below) with no par value (Stckaktien), each representing a
notional value of 1.00 and with full dividend rights from January 1, 2014, consisting
of:
32,941,177 newly issued bearer shares with no par value (Stckaktien) from a
capital increase (the IPO Capital Increase) against contribution in cash
expected to be resolved by the Issuers management board on October 6, 2014,
to be approved by a committee of the Issuers supervisory board on the same
day, utilizing the authorized capital resolved by an extraordinary shareholders
meeting on August 22, 2014 (the Authorized Capital 2014) under exclusion
of the subscription rights of existing shareholders of the Issuer (the New
Shares);
4,941,176 existing bearer shares with no par value (Stckaktien) from the
holdings of GFG in connection with a possible over-allotment (the Over-
Allotment Shares and, together with the New Shares, the Offer Shares).
The offering consists of a public offering of the Offer Shares in the Federal Republic
of Germany (Germany) and the Grand Duchy of Luxembourg (Luxembourg)
and private placements of the Offer Shares in certain jurisdictions outside Germany
and Luxembourg. In the United States, the Offer Shares will be offered for sale to
persons who are qualified institutional buyers as defined in Rule 144A
(Rule 144A) under the U.S. Securities Act of 1933, as amended (the Securities
Act) and qualified purchasers as defined in the U.S. Investment Company Act of
1940, as amended (the Investment Company Act). Outside the United States, the
Offer Shares will be offered to non-U.S. persons in reliance on the exemption from
registration provided by Regulation S (Regulation S) under the Securities Act.
Offer period
The offer period, during which investors may submit purchase orders for the Offer
Shares, is expected to begin on September 24, 2014 and is expected to end on October 7,
2014, at 12:00 noon CEST (Central European Summer Time) for private investors
(natural persons) and at 16:00 CEST (Central European Summer Time) for institutional
investors (the Offer Period). Private investors (natural persons) may submit purchase
orders for the public offering in Germany and Luxembourg during the Offer Period at
the branch offices of the Underwriters. Purchase orders must be denominated in full euro
amounts or euro cent figures of 25, 50, or 75 cents. Multiple purchase orders are
permitted.
Price range and offer price
The Price Range within which purchase orders may be placed is 35.50 to 42.50 per
Offer Share.
Amendments to the term of the offering
The Issuer, together with the Joint Global Coordinators, reserves the right to increase
or decrease the total number of Offer Shares, to increase or decrease the upper limit
and/or the lower limit of the Price Range and/or to extend or shorten the Offer
Period. Changes in the number of Offer Shares, changes to the Price Range or the
extension or shortening of the Offer Period will not invalidate any offers to purchase
that have already been submitted. If such change requires the publication of a
supplement to this prospectus, investors who submitted purchase orders before the
supplement is published shall have the right, under the German Securities Prospectus
Act, to withdraw these offers to purchase within two business days of the publication
of the supplement. Instead of withdrawing the offers to purchase placed prior to the
publication of the supplement, investors may change their orders or place new
limited or unlimited offers to purchase within two business days of the publication of
the supplement. To the extent that the terms of the offering are changed, such change
will be published by means of electronic media (such as Reuters or Bloomberg) and,
if required by the German Securities Prospectus Act or the General Terms and
Conditions of Deutsche Brse AG for the regulated Unofficial Market (Freiverkehr)
on the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse), as a publication of
significant information via an electronic information system, on the Issuers website
and as a supplement to this prospectus. Investors who have submitted offers to
purchase will not be notified individually. Under certain conditions, the Joint Global
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Coordinators, acting on behalf of the Underwriters, may terminate the underwriting
agreement relating to the offering entered into with the Issuer on September 23, 2014
(the Underwriting Agreement), even after commencement of trading (Aufnahme
des Handels) of the Issuers shares on the non-regulated market segment (Entry
Standard) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse).
Delivery and payment
The delivery of the Offer Shares against payment of the offer price is expected to
take place on October 10, 2014. The Offer Shares will be made available to the
shareholders as co-ownership interests in the global share certificate.
Cornerstone Investors
As part of the offering, Offer Shares in an aggregate investment amount of
582.5 million will be acquired by Scottish Mortgage Investment Trust Plc,
J.P. Morgan Securities LLC, FAR Global Private Markets Ltd., Discovery Global
Opportunity Master Fund, Ltd., Makshaff Trading Investments Company Limited
and Credit Suisse AG (together the Cornerstone Investors), who have agreed,
subject to certain termination rights and the condition precedent of the closing of the
offering, to purchase Offer Shares at the offer price. Each Cornerstone Investor has
been guaranteed full allocation of such number of Offer Shares for which it has
provided a purchase commitment.
Stabilization measures, over-allotments and greenshoe option
In connection with the offering of the Offer Shares and the exercise of the Greenshoe
Option, Berenberg or its affiliates, acting for the account of the Underwriters, will act
as the stabilization manager and may, as stabilization manager acting in accordance
with legal requirements (Section 20a (3) of the German Securities Trading Act
(Wertpapierhandelsgesetz) in conjunction with Commission Regulation (EC)
No. 2273/2003 of December 22, 2003), make over-allotments and take stabilization
measures to support the market price of the Issuers shares and thereby counteract
any selling pressure.
The stabilization manager is under no obligation to take any stabilization measures.
Therefore, no assurance can be provided that any stabilization measures will be
taken. Where stabilization measures are taken, these may be terminated at any time
without notice. Such measures may be taken as of the date of the commencement of
trading of the Issuers shares and must be terminated no later than the thirtieth
calendar day after this date (the Stabilization Period).
These measures may result in the market price of the Issuers shares being higher
than would otherwise have been the case. Moreover, the market price may
temporarily be at an unsustainable level.
Under the possible stabilization measures, investors may, in addition to the Issuer shares
being offered, be allocated up to 4,941,176 additional shares in the Issuer (Over-
Allotment Shares) as part of the allocation of the shares to be placed
(Over-Allotment). For the purpose of a possible Over-Allotment, the stabilization
manager, for the account of the Underwriters, will be provided with up to 4,941,176
shares from the holdings of GFG in the form of a securities loan; this number of shares
will not exceed 15% of the New Shares. In connection with the Over-Allotment, the
Issuer will grant the Underwriters an option to acquire up to 4,941,176 additional
Issuers shares at the offer price less agreed commissions (the Greenshoe Option),
which would be issued by the Issuer from the Authorized Capital 2014 for the sole
purpose of enabling the stabilization manager to perform its redelivery obligation under
the securities loan with GFG. This Greenshoe Option will terminate 30 calendar days
after the first day of trading.
The stabilization manager is entitled to exercise the Greenshoe Option to the extent
over-allotments of shares were initially made; the amount of shares is to be reduced
by the number of shares held by the stabilization manager as of the date on which the
Greenshoe Option is exercised and that were acquired by the stabilization manager in
the context of stabilization measures.
Once the Stabilization Period has ended, an announcement will be made within one
week in various media outlets distributed across the entire European Economic Area
as to whether stabilization measures were taken, when price stabilization started and
finished, and the price range within which stabilization was taken; the latter will be
made known for each occasion on which price stabilization measures were taken.
Exercise of the Greenshoe Option, the timing of its exercise and the number and type
of shares concerned will also be announced promptly in the same manner.
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E.4 Interests material to
the issue/offer
including conflicting
interests.
In connection with the offering and the inclusion to trading of the Issuers shares, the
Underwriters have formed a contractual relationship with the Issuer.
The Underwriters act for the Issuer on the offering and coordinate the structuring and
execution of the offering. In addition, Berenberg has been appointed to act as
designated sponsor for the Issuers shares and Deutsche Bank Aktiengesellschaft has
been appointed to act as paying agent and registrar. Upon successful implementation
of the offering, the Underwriters will receive a commission.
Either one of the Underwriters or their affiliates have, and may from time to time in
the future continue to have, business relations with the Group and its existing
shareholders (including lending and other financing activities) or may perform
services for the Group and its existing shareholders in the ordinary course of
business.
In connection with the offering, the Underwriters and any of their affiliated
companies will be able to acquire Offer Shares for their own accounts and hold,
purchase or sell for their own accounts and can also offer or sell these Offer Shares
outside of the offering. Accordingly, references in the Prospectus to Offer Shares
being offered or placed should be read as including any offering or placement of
Offer Shares to any of the Underwriters or any of their respective affiliates acting in
such capacity. In addition, certain of the Underwriters or their affiliates may enter
into financing arrangements (including swaps) with investors in connection with
which such Underwriters (or their affiliates) may from time to time acquire, hold or
dispose of Offer Shares. None of the Underwriters intend to disclose the extent of
any such investment or transaction other than in accordance with any legal or
regulatory obligation to do so.
As part of the offering, Offer Shares in an aggregate investment amount of
100 million will be acquired by J.P. Morgan Securities LLC, who has agreed,
subject to certain termination rights and the condition precedent of the closing of the
offering, to purchase Offer Shares at the offer price.
While the Issuers existing shareholders will not participate in the offering, they will
benefit from the listing of the Issuers shares, as they will hold more liquid securities.
E.5 Name of the person or
entity offering to sell
the security.
The shares are being offered for sale by the Underwriters (as defined under A.1
above).
Lock-up agreement:
the parties involved;
and indication of the
period of the lock-up.
In the Underwriting Agreement, the Issuer agreed with each Underwriter that, to the
extent legally permissible, it will not, without the prior written consent of the Joint
Global Coordinators (which shall not be unreasonably withheld or delayed) for a
period of six months following the first day of trading of the Issuers share (currently
expected to take place on October 9, 2014):
announce or execute any capital increase from authorized capital,
propose a capital increase to its shareholders, or
announce, execute or propose to its shareholders any offering of financial
instruments that carry conversion or option rights to shares in the Issuer or other
transactions with a similar economic effect.
The foregoing does not apply to the IPO Capital Increase and the capital increase in
connection with an exercise of the Greenshoe Option.
By way of separate lock-up agreements, the existing shareholders undertook not to,
without the prior written consent of the Joint Global Coordinators (which shall not be
unreasonably withheld), prior to the end of a period of twelve months following the
first day of trading of the Issuers shares on the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse) (currently expected to take place on October 9, 2014)
sell, distribute, pledge (without transferring legal title), transfer or otherwise dispose
of any of their shares or securities in the Issuer. The same rule applies to transactions
having the same economic effect as a sale.
The foregoing lock-up restrictions do not restrict the (i) tender, sale and transfer of
the Issuers shares in a takeover bid for the Issuer, (ii) the off-exchange
(auerbrsliche) transfer of the Issuers shares by its existing shareholders to any of
their affiliates, (iii) the distribution of the Issuers shares by such shareholder to its
shareholder(s), member(s) or partner(s) (as applicable) through dividend in kind,
S-25
provided that the recipient of such transfer assumes, by written confirmation to the
Joint Global Coordinators, the obligations of the Issuers existing shareholder
hereunder for the then remaining term of the lock-up agreement.
E.6 Amount and
percentage of
immediate dilution
resulting from the
offering.
The offering involves the issuance of new shares.
The dilutive effect of the offering is illustrated in the table below demonstrating the
amount by which the offer price at the low end, mid-point and high end of the Price
Range exceeds the total equity attributable to shareholders per share after completion
of the offering. After giving effect to the capital increases that took place between
July 1, 2014 and September 22, 2014 and the issuance of the New Shares in the
context of the offering, assuming an offer price of 39.00 at the mid-point of the
Price Range and full exercise of the Greenshoe Option, the equity attributable to the
Issuers shareholders based on the total net proceeds from the offering would have
been 2,939.1 million as of June 30, 2014, or 18.6 per Issuers share. That would
correspond to a direct dilution of 20.4 corresponding to 52.3%, per Issuers share
for the parties acquiring the Offer Shares, based on 157,984,608 outstanding Issuers
shares following the completion of the offering (assuming a placement of all New
Shares and full exercise of the Greenshoe Option).
Low End Mid-Point High End
Offer price per share (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.5 39.00 42.50
Total equity attributable to shareholders per share as
of June 30, 2014 (pre-IPO net book value
(1)
)
(in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.63 12.63 12.63
Post-IPO equity per Share (post-IPO net book
value
(2)
) (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.79 18.60 19.42
Amount by which the post-IPO net book value
exceeds the pre-IPO net book value (in ) . . . . . . . . . . 5.15 5.97 6.78
Amount by which the offer price per share exceeds
the post-IPO net book value (immediate dilution
per share) (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.71 20.40 23.08
(1) Pre-IPO net book value refers to the sum of subscribed capital minus treasury shares plus capital
reserves plus revenue reserves plus accumulated other comprehensive income plus
unappropriated retained earnings as of June 30, 2014 plus the equity capital contributed in the
capital increases that took place between July 1, 2014 and September 22, 2014 divided by the
number of outstanding shares immediately prior to the offering.
(2) Post-IPO net book value refers to the sum of subscribed capital minus treasury shares plus
capital reserves plus revenue reserves plus accumulated other comprehensive income plus
unappropriated retained earnings as of June 30, 2014 plus the equity capital contributed in the
capital increased that took place between July 1, 2014 and September 22, 2014 plus the net
proceeds from the issuance of all New Shares at the low-point, mid-point and high-point of the
price range plus the proceeds from the exercise of the Greenshoe Option in full divided by the
number of outstanding shares (assuming a placement of all New Shares and full exercise of the
Greenshoe Option).
E.7 Estimated expenses
charged to the investor
by the issuer.
Not applicable. Investors will not be charged expenses by the Issuer or the
Underwriters.
S-26
GERMAN TRANSLATION OF THE SUMMARY OF THE PROSPECTUS
ZUSAMMENFASSUNG DES PROSPEKTS
Zusammenfassungen bestehen aus geforderten Angaben, die als Elemente (Elemente) bezeichnet
werden. Diese Elemente sind in den Abschnitten A E (A.1 E.7) fortlaufend nummeriert. Diese
Zusammenfassung enthlt alle Elemente, die fr die vorliegende Art von Wertpapier und Emittent in eine
Zusammenfassung aufzunehmen sind. Da einige Elemente nicht behandelt werden mssen, knnen in der
Nummerierungsreihenfolge Lcken auftreten. Selbst wenn ein Element wegen der Art des Wertpapiers und des
Emittenten in die Zusammenfassung aufgenommen werden muss, ist es mglich, dass in Bezug auf dieses Element
keine relevanten Informationen gegeben werden knnen. In solchen Fllen enthlt die Zusammenfassung eine
kurze Beschreibung des Elements mit dem Hinweis Entfllt.
A EINLEITUNG UND WARNHINWEISE
A.1 Einleitung und
Warnhinweise.
Diese Zusammenfassung sollte als Einleitung zu diesem Prospekt verstanden werden.
Bei jeder Anlageentscheidung sollte sich der Anleger auf die Prfung des gesamten
Prospekts sttzen.
Fr den Fall, dass vor einem Gericht Ansprche auf Grund der in diesem Prospekt
enthaltenen Informationen geltend gemacht werden, knnte der als Klger
auftretende Anleger in Anwendung der einzelstaatlichen Rechtsvorschriften der
Staaten des Europischen Wirtschaftsraums die Kosten fr die bersetzung des
Prospekts vor Prozessbeginn zu tragen haben.
Rocket Internet AG, Berlin, Deutschland (die Emittentin), zusammen mit Joh.
Berenberg, Gossler & Co. KG, Hamburg (Berenberg); J.P. Morgan Securities plc,
London, Vereinigtes Knigreich (J.P. Morgan); Morgan Stanley Bank AG,
Frankfurt am Main (Morgan Stanley, und zusammen mit Berenberg und
J.P. Morgan, die Joint Global Coordinators) und zusammen mit Merrill Lynch
International, London, Vereinigtes Knigreich (handelnd unter der
Geschftsbezeichnung BofA Merrill Lynch) (BofA Merrill Lynch), Citigroup
Global Markets Limited, London, Vereinigtes Knigreich (Citigroup) und UBS
Limited, London, Vereinigtes Knigreich (UBS, und zusammen mit den Joint
Gloal Coordinators, BofA Merrill Lynch und Citigroup, die Joint Bookrunner
oder die Konsortialbanken), haben nach 5 Abs. 2b Nr. 4
Wertpapierprospektgesetz die Verantwortung fr den Inhalt dieser Zusammenfassung
und ihrer deutschen bersetzung bernommen. Diejenigen Personen, die fr die
Zusammenfassung einschlielich ihrer bersetzung die Verantwortung bernommen
haben oder von denen der Erlass ausgeht, knnen nur haftbar gemacht werden, wenn
die Zusammenfassung irrefhrend, unrichtig oder widersprchlich ist, sofern sie
zusammen mit anderen Teilen dieses Prospektes gelesen wird oder wenn die
Zusammenfassung nicht alle erforderlichen Schlsselinformationen vermittelt, sofern
sie zusammen mit den anderen Teilen des Prospekts gelesen wird.
A.2 Angabe ber sptere
Verwendung des
Prospekts.
Entfllt. Eine Zustimmung zur Verwendung des Prospekts fr eine sptere
Weiterveruerung oder Platzierung der Aktien wurde nicht erteilt.
B EMITTENT
B.1 Juristische und
kommerzielle
Bezeichnung.
Die juristische Bezeichnung der Emittentin lautet Rocket Internet AG. Sie betreibt
ihre Geschfte unter der Geschftsbezeichnung Rocket Internet. Die Emittentin
erwartet gegenwrtig, dass in der auerordentlichen Hauptversammlung der
Emittentin vom 30. September 2014 ein Rechtsformwechsel der Emittentin in eine
Europische Aktiengesellschaft (Societas Europaea oder SE), die deutschem und
europischem Recht unterliegt, und eine Umfirmierung in Rocket Internet SE
beschlossen wird. Der Rechtsformwechsel und die Umfirmierung werden
voraussichtlich gegen Ende 2014 eingetragen.
B.2 Sitz und Rechtsform
des Emittenten,
geltendes Recht, Land
der Grndung.
Die Emittentin
(1)
hat ihren Sitz in der Johannisstrae 20, 10117 Berlin, Deutschland,
und ist im Handelsregister des Amtsgerichts Charlottenburg, Berlin, Deutschland
(das Handelsregister) unter HRB 159634 B eingetragen. Die Emittentin ist eine
deutsche Aktiengesellschaft, die in Deutschland gegrndet wurde und deutschem
Recht unterliegt.
(1) Die Emittentin zusammen mit den Rechtstrgern, die in dem Konzernabschluss der Emittentin
vollkonsolidiert sind, der Konzern und die Emittentin gemeinsam mit unseren Unternehmen
(unsere Unternehmen bezieht sich auf die proven winners, die emerging stars,
Konzeptunternehmen, regionale Internetunternehmensgruppen, Zwischenholdingunternehmen
und die Unternehmen in den Kategorien strategische Beteiligungen und sonstige Investitionen,
die von uns gegrndet wurden), wir, uns, unser oder Rocket Internet.
S-27
B.3 Derzeitige Geschfts-
und Hauptttigkeiten
sowie die
Hauptmrkte, auf
denen der Emittent
vertreten ist.
Wir identifizieren und bauen bewhrte Internetgeschftsmodelle auf und bertragen
diese in neue, unterversorgte oder unerschlossene Mrkte, vorwiegend auerhalb der
USA und Chinas, wo wir diese Geschftsmodelle zu marktfhrenden
Internetunternehmen ausbauen wollen. In 2007 begannen wir mit 4 Angestellten und
2 Verbrauchermarken, basierend auf einer von der European Founders Fund GmbH
& Co. Beteiligungs KG Nr. 1 (spter umfirmiert in Global Founders Capital GmbH
& Co. Beteiligungs KG Nr. 1 (Global Founders Capital Fund)) gettigten
Anfangsinvestition von 0,5 Mio. Zum Datum des Prospekts arbeiten insgesamt
ber 20.000 Angestellte in unserem Netzwerk von Unternehmen, welches in 116
Lndern auf 5 Kontinenten Geschfte ttigt. Unsere ausgereiftesten Unternehmen,
die sogenannten proven winners (bewhrte Gewinner), erwirtschafteten
Gesamtumsatzerlse von 757 Mio. (ungeprfter Gesamtbetrag ihrer Umsatzerlse
auf der Grundlage der fr die jeweilige Gesellschaft anzuwendenden allgemein
anerkannten Bewertungs- und Bilanzierungsgrundstze, jeweils fr das letzte
Geschftsjahr, fr das Daten zur Verfgung standen) sowie Gesamtjahresfehlbetrge
von 442 Mio. (ungeprfter Gesamtbetrag ihrer Jahresfehlbetrge auf der Grundlage
der fr die jeweilige Gesellschaft anzuwendenden allgemein anerkannten
Bewertungs- und Bilanzierungsgrundstze, jeweils fr das letzte Geschftsjahr, fr
das Daten zur Verfgung standen und unter Bereinigung von auerordentlichen
Ertrgen von Dafiti resultierend aus der Bewertung von Kommanditanteilen). Die
gesamten von der Emittentin, unmittelbar und mittelbar gehaltenen Anteile an allen
unseren Unternehmen einschlielich der proven winners, der wachsenden
Unternehmen, die bereits eine bedeutende Gre erreicht haben und die wir als
emerging stars (aufstrebende Sterne) bezeichnen, unserer regionalen
Internetunternehmensgruppen und unserer anderen wesentlichen strategischen
Beteiligungen und sonstiger Investitionen haben basierend auf der jeweils letzten
Finanzierungsrunde unter Beteiligung auenstehender Dritter (wie nachstehend unter
diesem Element B. 3 nher erlutert) einen Gesamtwert von 2,6 Mrd
(1)
.
Wir bauen Internetgeschftsmodelle, die die Grundbedrfnisse von Konsumenten
befriedigen, vorwiegend auf drei Kerngebieten auf. Zu unseren Unternehmen des
E-Commerce gehren Einzelhandelsunternehmen in den Bereichen Mode,
Konsumgter, Haus und Wohnen sowie Brobedarf und Lebensmittel. Unsere
Marktplatzunternehmen streben danach, herkmmliche Lieferketten zu ersetzen,
indem sie Wege erffnen, mittels derer Kufer und Verkufer direkt miteinander
Geschfte vornehmen knnen; dies schliet Immobilien- und Kfz-
Internetkleinanzeigen, Reisen und Transport sowie Essenslieferdienste ein. Unser
dritter Bereich, die Finanztechnologie, umfasst Unternehmen, die sich darauf
fokussieren, den Zahlungsverkehr zu erleichtern sowie Kreditnehmer und -geber in
von traditionellen Banken nur unzureichend versorgten Segmenten und Regionen
zusammenzubringen, insbesondere im Verbrauchersegment sowie im Segment fr
kleine und mittelstndische Unternehmen.
Als Teil unserer globalen Strategie haben wir regionale
Internetunternehmensgruppen in Afrika, Asien-Pazifik, Lateinamerika und im Nahen
Osten geschaffen, um Kenntnisse lokaler Mrkte mit Kenntnissen ber
Geschftsmodelle zu verbinden, regionale Handels-, Strategie- und
Investitionspartnerschaften, insbesondere mit mobilen
Telekommunikationsanbietern, zu frdern, Personalbeschaffung und
Warenbeschaffung auf lokaler Ebene zu ermglichen und die regionale
Markteinfhrung unserer Unternehmen zu beschleunigen. Unsere lokalen
strategischen Partner, wie MTN, Ooredoo und Millicom, sind Co-Investoren in
unseren regionalen Internetunternehmensgruppen und bieten diesen und unseren
Unternehmen bedeutende strategische Untersttzung und die Mglichkeit, von
Synergien zu profitieren.
Die Emittentin hat dort eigene Technologien entwickelt, wo sie der Ansicht ist, dass
diese den Unternehmen im Unternehmensnetzwerk einen Wettbewerbsvorteil
ermglichen. Insbesondere hat die Emittentin eine Basisplattform fr jedes unserer
drei Kerngebiete erstellt, die eine betriebsbereite (plug & play) Konfiguration
vorsieht, sich den jeweiligen Geschftserfordernissen anpasst und leicht auf die
spezifischen Anforderungen der einzelnen Unternehmen abgestimmt werden kann.
Die Emittentin ist Rahmenvereinbarungen mit groen Internet- und
Softwareunternehmen wie Google, Facebook, Rackspace, Responsys und Salesforce
eingegangen, um die Technologieplattform der Emittentin zu vervollstndigen und
(1) Ungeprft. Basierend auf Rechnungswesen bzw. Controllingunterlagen der Emittentin
berechnet.
S-28
dem Unternehmensnetzwerk modernste Technologien, Zahlungs-, Internetwerbe- und
andere Dienstleistungen zu konkurrenzfhigen Preisen zur Verfgung zu stellen. Die
Emittentin hat Instrumente fr die Analyse von zentralen Leistungskennzahlen
geschaffen, die es uns erlauben, die Leistung unserer Unternehmen zu vergleichen,
die bestmglichen Lsungsanstze innerhalb unserer Unternehmen zu identifizieren
und das Wissen darber in unserem Netzwerk von Unternehmen zu teilen.
Die Plattform der Emittentin erlaubt es uns, ein groes, globales Netzwerk von
Unternehmen aufzubauen, und hat uns in der Vergangenheit in die Lage versetzt,
durch Verwendung standardisierter Identifikations- und Entwicklungsprozesse ber
10 neue Unternehmen pro Jahr zu grnden. Jedes von der Emittentin neu gegrndete
Unternehmen beschleunigt die positive Dynamik von Synergieeffekten unter unseren
Unternehmen. Je grer unser Unternehmensnetzwerk wird, desto bedeutender
werden unsere Mglichkeiten, von Synergien und Netzwerkeffekten zu profitieren,
die unsere Lieferanten, Lsungsanbieter, Kunden und Mitarbeiter betreffen. Jedes
neue Unternehmen in unserem Netzwerk steigert unser gesamtes Einkaufsvolumen
und unsere Verhandlungsstrke und trgt zustzliche Daten und Kenntnisse bei, die
blicherweise auf freiwilliger Basis mit dem gesamten Netzwerk geteilt werden. Die
Hinzufgung neuer Unternehmen schafft auch neue Kundenbeziehungen und
zustzliche Mglichkeiten der berkreuzvermarktung, die smtlichen Unternehmen
in unserem Netzwerk zugutekommen.
blicherweise besitzt die Emittentin zum Zeitpunkt der Grndung einen direkten
oder indirekten Anteil von 80 % bis 90 % an unseren Unternehmen, wobei der
verbleibende Teil fr die Beteiligung der Geschftsfhrung vorgesehen ist. In
nachfolgenden Finanzierungsrunden bringen wir externe Eigenkapitalfinanzierung
ein, die von unseren lokalen strategischen Partnern und sonstigen strategischen und
Finanzinvestoren einschlielich der bestehenden Aktionre der Emittentin, erbracht
wird. Diese Investitionen werden entweder direkt in die Unternehmen oder indirekt
in eine zwischengeschaltete Holding oder eine regionale Internetunternehmensgruppe
erbracht. In der Vergangenheit bedeutete dies, dass die direkten und indirekten
Beteiligungen der Emittentin an den Unternehmen im Zeitablauf mit zunehmender
Gre und Reifegrad der Unternehmen auf unter 50 % gesunken sind. Daher
kontrolliert die Emittentin die meisten unserer Unternehmen nicht. Die Emittentin
beabsichtigt gegenwrtig, zuknftig, einen Anteil von mindestens 50 % des
wirtschaftlichen Eigentums an den meisten neuen Unternehmen zu behalten. Das
bedeutet, dass sich die Kapitaleinlagen der Emittentin in den Unternehmen erhhen
und die Emittentin noch bedeutsamer an deren Entwicklung teilhaben werden.
Strategie
Die Emittentin strebt danach, die grte Internetplattform der Welt auerhalb der
USA und Chinas zu werden. Die wesentlichen Elemente der gegenwrtigen Strategie
der Emittentin umfassen:
Bewltigung der Vielschichtigkeit unserer Mrkte und Lokalisierung in jeder
Dimension.
Abdeckung eines groen Teils der Konsumentenausgaben durch Ausnutzen
unseres mobilen Ecosystems, um von der Smartphone-Revolution zu profitieren.
Ausbau unseres bestehenden Netzwerks von Unternehmen.
Behalten von Mehrheitsbeteiligungen an neuen Unternehmen, gezielte Erhhung
der Anteile an emerging stars.
Verfolgung einer ausgewogenen Strategie anhaltend hohen Wachstums in
Verbindung mit im Laufe der Zeit verbesserter Rentabilitt fr unsere proven
winners.
B.4a Wichtigste jngste
Trends, die sich auf
den Emittenten und
die Branchen, in denen
er ttig ist, auswirken.
Wir glauben, dass hauptschlich vier Megatrends unsere Mrkte beeinflussen werden:
Die Smartphone-Durchdringung wird allgegenwrtig werden und dadurch die
Verbreitung von internetbasierten Geschftsmodellen weiter erheblich
beschleunigen. Der Anteil an Smartphone-Nutzern soll in unseren
Fokusregionen bis 2018 um 21 % steigen, im Vergleich dazu wird in den USA
und in China mit einem Anstieg von 10 % gerechnet (Quelle: WCIS, World
Cellular Forecasts 2012-2018, am 14. Februar 2014 abgerufen). Der Anstieg von
Smartphone-Nutzern wird dazu fhren, dass mehr Menschen Zugang zum
Internet haben werden. Unserer Meinung nach bedeutet dies, dass das Internet
eine viel grere Reichweite und Geschwindigkeit erreichen wird, als in der
Vergangenheit erwartet wurde.
S-29
Die Bevlkerung in vielen unserer Mrkte ist jnger als in den USA (Quelle:
United Nations, World Population Prospects, 2009), was unserer Ansicht nach
das Potential fr internetbasierte Geschftsmodelle steigern wird. Der Anteil an
Menschen an der Gesamtbevlkerung, die 65 Jahre und lter sind, liegt
beispielsweise in Indien bei nur 5 % und in Mexiko bei 7 %, wohingegen der
Anteil in den USA bei 13 % liegt. Wir sind der Meinung, dass ein hherer
Anteil an jngeren Menschen mit einem hheren Anteil an Smartphone-Nutzern
korrespondiert, die mit digitalen Technologien aufgewachsen sind.
Weiterhin wird mit einem starken Wachstum der Mittelschicht in vielen unserer
Schwellenlnder gerechnet (Quelle: Euromonitor International, Countries and
Consumers, basierend auf den aktuellen Preisen und jhrlichen
Umtauschkursen, vom Juli 2014). Zum Beispiel wird erwartet, dass die
Mittelschicht in Indonesien zwischen 2006 und 2022 von 1 % auf 16 % der
Gesamtbevlkerung anwachsen wird. Im Vergleich dazu wird fr den denselben
Zeitraum in den USA ein Anstieg der Mittelschicht von 31 % auf 33 % erwartet.
Auf die gleiche Weise wie sich diese Volkswirtschaften weiterentwickeln,
erwarten wir, dass das Anwachsen der Mittelschicht zu einem erheblichen
Anstieg von Ermessensausgaben der Konsumenten fhren wird.
Die Handelsstrukturen im Offline-Bereich sind in vielen unserer Zielmrkte
unterentwickelt (Quelle: Planet Retail, Global Data Analysis Database, am
27. Mai 2014 abgerufen). Whrend beispielsweise im asiatisch-pazifischen
Raum mehr als 90.000 Menschen auf eine Verkaufsstelle im Einzelhandel
kommen, sind es in den USA lediglich 1.200 Menschen. Dadurch ergibt sich fr
uns die Chance einen Onlinehandelsmarkt zu schaffen, bevor sich Offline-
Infrastrukturen entwickeln knnen, was es unseren Kunden ermglichen wird,
die Entwicklung physischer Handelsstrukturen zu berspringen. Der begrenzte
Offline-Wettbewerb versetzt E-Commerce-Unternehmen in die Lage, schneller
zu wachsen und einen greren Anteil an Konsumentenausgaben abzuschpfen
als E-Commerce-Unternehmen, die in Mrkten mit erheblichem Offline-
Wettbewerb aktiv sind, wie beispielsweise in den USA.
Wir glauben, dass unsere Industrie in den Bereich mobile und urbane on-demand-
Dienstleistungen expandieren wird. Unternehmen in diesem Sektor haben es sich
zum Ziel gesetzt, das Leben in Stdten zu erleichtern. Die Entstehung dieses Sektors
wurde erst krzlich dank der Durchdringung von Smartphones mit GPS und dank
Push-Benachrichtigungen ermglicht. Diese Geschftsmodelle funktionieren am
besten in dicht besiedelten Gebieten, da die Dienstleistungen oftmals zeit- und
ortsgebunden sind. Sie weisen Elemente vertikaler logistischer Integration auf,
gegebenenfalls durch Aggregation der Angebotsseite.
B.5 Beschreibung des
Konzerns und der
Stellung des
Emittenten innerhalb
dieses Konzerns.
Die Emittentin ist die Muttergesellschaft des Konzerns. In dem folgenden Schaubild
ist eine Zusammenfassung (in vereinfachter Form) der wesentlichen Unternehmen im
Unternehmensnetzwerk der Emittentin zum Datum dieses Prospekts, unter
Bercksichtigung der unmittelbaren oder mittelbaren durchgerechneten
Beteiligungsanteile, dargestellt. Die dargestellten Beteiligungen umfassen auch
Anteile an verbundenen Unternehmen gem 15 ff. Aktiengesetz und
Beteiligungen gem 271 Abs. 1 Handelsgesetzbuch. Zum Datum dieses Prospekts
umfasste unser Unternehmensnetzwerk 11 proven winners (11 %), 9 emerging stars
(9 %), 5 Konzepte (5 %), 4 regionale Internetunternehmensgruppen (4 %),
8 Unternehmen in der Kategorie strategische Beteiligungen (8 %) und
9 Unternehmen in der Kategorie sonstige Investitionen (9 %). Darber hinaus
wurden Anteile an 53 Internetgesellschaften in 2014 in die Emittentin eingebracht.
Zum Datum dieses Prospekts entfielen 17 davon auf die Kategorie strategische
Beteiligungen (17 %) und 36 auf die Kategorie sonstige Investitionen (36 %).
S-30
0,5 % 34,7 %
0,3 % 34,2 %
7,8 % 25,8 % 0,5 %
26,3 %
17,2 % 9,6 %
Proven Winners
49,5 %
(1)
37,1 % 33,7 %
(4)
34,4 %
(3) 35,2 %
(2)
26,7 %
(6) 21,4 %
(10)
22,7 %
(9)
23,5 %
(8)
25,0 %
(7) 26,8 %
(5)
(11)
(11)
Emerging Stars
74,2 %
(12)
59,8 % 55,5 %
(12)
52,3 % 44,9 % 49,6 %
(12)
25,6 %
(14) 44,7 % 31,4 %
(13)
(11)
Regional Internet
Groups
65,0 % 50,0 % 50,0 % 33.3%
57,6 %
Other concepts
Konzepte
Verschiedene Beteiligungen
Verschiedene Beteiligungen
Strategische
Partnerschaften
Sonstige
Investitionen
Unmittelbarer Beteiligungsanteil
Mittelbarer Beteiligungsanteil
Other concepts
00
% %
0000
77 000
%
%
%%%
% 1111
%
(Quelle: Informationen der Emittentin)
(1) Zum Datum dieses Prospekts hlt ein mit Holtzbrinck (wie in Element B.6, Funote (7) definiert) verbundenes Unternehmen Anteile an
Home24. Die bertragung der Geschftsanteile an Home24 von Holtzbrinck auf die Emittentin ist zwischen Holtzbrinck und der
Emittentin vereinbart worden, aber die Durchfhrung wird erst erfolgen, wenn die erforderlichen Zustimmungen von Gesellschaftern von
Home24 erfolgt sind.
(2) Linio wird ber TIN Brillant GmbH (BigCommerce) und unmittelbar (0,5 %) gehalten. Die Emittentin ist an BigCommerce
unmittelbar mit einem Anteil von 51,6 % beteiligt. BigCommerce ist wiederum an Linio mit einem Anteil von 67,3 % beteiligt.
(3) Namshi (Middle East eCommerce Holding) wird ber Bigfoot I, BigCommerce, Rocket Middle East GmbH und unmittelbar (0,3 %)
gehalten. Die Emittentin ist an Bigfoot I unmittelbar mit einem Anteil von 29,2 % beteiligt. Bigfoot I ist wiederum an Namshi mit einem
Anteil von 40,8 % beteiligt. Die Emittentin ist an BigCommerce mit einem Anteil von 51,6 % beteiligt. BigCommerce ist wiederum an
Namshi mit einem Anteil von 36,4 % beteiligt. Durch die bertragung der Anteile an BigCommerce von Holtzbrinck (wie in
Element B.6, Funote (8) definiert), die nach Durchfhrung der Restrukturierung von BigCommerce/Namshi erfolgen wird, wird die
Emittentin einen zustzlichen mittelbaren Anteil von 1,8 % an Namshi halten. Die Emittentin ist an der Rocket Middle East GmbH
unmittelbar zu 100 % beteiligt. Die Rocket Middle East GmbH ist wiederum mit einem Anteil von 1,7 % an Namshi beteiligt.
(4) Westwing wird ber Westwing SPV und unmittelbar (7,8 %) gehalten. Die Emittentin ist an Westwing SPV unmittelbar mit einem
Anteil von 92,0 % beteiligt. Westwing SPV ist wiederum an Westwing mit einem Anteil von 28,1 % beteiligt.
(5) Jumia wird ber Bigfoot II und Africa Internet Group gehalten. Die Emittentin ist an Bigfoot II unmittelbar mit einem Anteil von 33,8 %
beteiligt. Bigfoot II ist wiederum an Jumia mit einem Anteil von 28,5 % beteiligt. Die Emittentin ist an Africa Internet Group unmittelbar
mit einem Anteil von 33,3 % beteiligt. Africa Internet Group ist wiederum an Jumia mit einem Anteil von 51,5 % beteiligt.
(6) Lazada wird ber BigCommerce und unmittelbar (0,5 %) gehalten. Die Emittentin ist an BigCommerce unmittelbar mit einem Anteil von
51,6 % beteiligt. BigCommerce ist wiederum an Lazada mit einem Anteil von 50,9 % beteiligt.
(7) Zalora wird ber Bigfoot II gehalten. Die Emittentin ist an Bigfoot II unmittelbar mit einem Anteil von 33,8 % beteiligt. Bigfoot II ist
wiederum mit einem Anteil von 74,0 % an Zalora beteiligt. Am 27. August 2014 brachte Bigfoot II liquide Mittel in Zalora gegen
zustzliche Anteile ein, sodass sich der Anteil der Emittentin auf 25,5% erhhte.
(8) Lamoda wird ber Bigfoot I gehalten. Die Emittentin ist an Bigfoot I unmittelbar mit einem Anteil von 29,2 % beteiligt. Bigfoot I ist
wiederum an Lamoda mit einem mittelbaren Anteil von 80,3 % beteiligt.
(9) Dafiti wird ber Bigfoot I gehalten. Die Emittentin ist an Bigfoot I unmittelbar mit einem Anteil von 29,2 % beteiligt. Bigfoot I ist
wiederum an Dafiti mit einem Anteil von 77,7 % beteiligt.
(10) Jabong wird ber Bigfoot I gehalten. Die Emittentin ist an Bigfoot I unmittelbar mit einem Anteil von 29,2 % beteiligt. Bigfoot I ist
wiederum an Jabong mit einem Anteil von 73,2 % beteiligt.
(11) Die Emittentin hlt derzeit 2.069 Geschftsanteile von Bigfoot II (2.1% der Geschftsanteile), die Gegenstand von Erwerbsoptionen sind,
die Business Angels gewhrt wurden, die diese bisher nicht ausgebt haben.
(12) Zencap und Lendico werden durch Global Fintech Holding S. r.l. gehalten. Die Emittentin ist an Global Fintech Holding S. r.l.
unmittelbar mit einem Anteil von 100 % beteiligt. Global Fintech Holding S. r.l. ist wiederum an Zencap mit einem Anteil von 74,2 %
und an Lendico mit einem Anteil von 55,5 % beteiligt.
(13) Die Emittentin hlt derzeit 49,6 % der Geschftsanteile. Davon sind jedoch bis zu 1.692 Geschftsanteile mit Kaufoptionen belastet, die
bestimmten Grndern von der Emittentin eingerumt und von diesen bisher noch nicht ausgebt wurden.
(14) Zanui wird ber Bigfoot II gehalten. Die Emittentin ist an Bigfoot II unmittelbar mit einem Anteil von 33,8 % beteiligt. Bigfoot II ist
wiederum an Zanui mit einem Anteil von 93,0 % beteiligt.
(15) FabFurnish wird ber Bigfoot I gehalten. Die Emittentin ist an Bigfoot I unmittelbar mit einem Anteil von 29,2 % beteiligt. Bigfoot I ist
wiederum an FabFurnish mit einem Anteil von 87,7 % beteiligt.
Insgesamt hatte die Emittentin zum 31. Dezember 2013 114 Tochtergesellschaften, die im Konzernabschluss
vollkonsolidiert waren sowie 195 Tochtergesellschaften, die aufgrund ihrer geringen Bedeutung nicht vollkonsolidiert
wurden. Darber hinaus hielt die Emittentin zum 31. Dezember 2013 Anteile an etwa 130 Gesellschaften, die nicht
aktiv waren. Zum 31. Dezember 2013 wurden 29 Gesellschaften nach der Equity Methode bilanziert.
S-31
B.6 Personen, die eine
(meldepflichtige)
direkte oder indirekte
Beteiligung am
Eigenkapital des
Emittenten oder einen
Teil der Stimmrechte
halten oder eine
Beherrschung
ausben.
Die folgende Tabelle zeigt die Aktionre der Emittentin, die jeweils eine
unmittelbare oder mittelbare Beteiligung am Eigenkapital der Emittentin und den
Stimmrechten zum Datum dieses Prospekts halten:
Unmittelbare Aktionre Mittelbare Aktionre
Wirtschaftliche
(mittelbare)
Beteiligung (in %)
Global Founders GmbH
(1)
. . . . . . . . . . . . . . . . . . Marc, Oliver and
Alexander Samwer . . . . . . . . . 52,32 %
(2)
Emesco AB
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Verdere S..r.l . . . . . . . . . . . . . . 18,08 %
United Internet Ventures AG
(4)
. . . . . . . . . . . . . United Internet AG . . . . . . . . . 10,42 %
PLDT Online Investments PTE. LTD.
(5)
. . .
Philippine Long Distance
Telephone Company . . . . . . . 8,40 %
AI European Holdings S. r.l.
(6)
. . . . . . . . . . . . Len Blavatnik. . . . . . . . . . . . . . . 8,26 %
Holtzbrinck Ventures
(7)
. . . . . . . . . . . . . . . . . . . . .
HV Holtzbrinck Ventures
Holding GmbH . . . . . . . . . . . . . 2,51 %
Gesamt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,00%
(1) Global Founders GmbH (vormals: European Founders Fund GmbH) (GFG) eingetragen beim
Amtsgericht Mnchen unter der Nummer HRB 173912 mit Sitz in der Luisenstrae 14, 80333
Mnchen.
(2) Diese Angaben beinhalten die gemeinsamen Anteile an der Emittentin in Hhe von 1,36 %, die
von Marc, Oliver und Alexander Samwer ber die MOAS GmbH & Co. KG, die MOAS Nr. 2
GmbH & Co. KG und die MOAS Nr. 3 GmbH & Co. KG gehalten werden.
Diese Angaben enthalten nicht jenen Anteil an der Emittentin in Hhe von 0,53 %, der von der
GFG durch die Juwel 218. V V UG (haftungsbeschrnkt) (Juwel) gehalten wird. HV
Holtzbrinck Ventures Fund IV LP und Holtzbrinck Ventures NM GmbH & Co. KG halten eine
Unterbeteiligung an Juwel, die es ihnen ermglicht, von Juwel die bertragung aller von Juwel
an der Emittentin gehaltenen Aktien nach Abschluss des Angebots zu verlangen.
(3) Emesco AB (Emesco), eingetragen beim schwedischen Gesellschaftsregister (SCRO) unter
der Registernummer 556035-3749 mit Sitz in Skeppsbron 18, 10313 Stockholm, Schweden.
Emesco ist eine Tochtergesellschaft von Investment AB Kinnevik. Verdere S. r.l. ist der grte
Halter von Stimmrechten betreffend Investment AB Kinnevik.
(4) United Internet Ventures AG (United Internet) eingetragen beim Amtsgericht Montabaur
unter der Nummer HRB 23538 mit Sitz in der Elgendorfer Strae 57, 56410 Montabaur.
(5) PLDT Online Investments PTE. LTD., eingetragen bei der Accounting & Corporate Regulatory
Authority of Singapore unter der Registernummer 201422660K mit Sitz in 545 Orchard Road,
#15-08/09, Far East Shopping Centre, Republik Singapur (238882).
(6) AI European Holdings S. r.l., eingetragen beim Handels- und Gesellschaftsregister Luxemburg
(Registre de Commerce et des Socits) unter der Nummer B 168122, mit Sitz in 15-17, avenue
Gaston Diderich, L-1420 Luxemburg.
(7) Holtzbrinck Ventures umfasst die HV Holtzbrinck Ventures Fund IV LP, die Holtzbrinck
Ventures NM GmbH & Co. KG und die HV Holtzbrinck Ventures Fund V GmbH & Co. KG
(gemeinsam Holtzbrinck Ventures). Des Weiteren sind die HV Holtzbrinck Ventures Fund
IV LP und die Holtzbrinck Ventures NM GmbH & Co. KG berechtigt, die bertragung aller
von der Juwel an der Emittentin gehaltenen Aktien nach Abschluss des Angebots zu verlangen
(siehe oben Funote (2)). Die von Juwel gehaltenen Aktien an der Emittentin sind in der
Beteiligung von Holtzbrinck enthalten.
Unterschiedliche
Stimmrechte, falls
vorhanden, der
Hauptanteilseigner des
Emittenten.
Jede Aktie der Emittentin berechtigt zu einer Stimme in der Hauptversammlung der
Emittentin. Die bestehenden Aktionre verfgen ber keine unterschiedlichen
Stimmrechte.
Unmittelbare oder
mittelbare
Beteiligungen an der
Emittentin und Art der
Beherrschung ist.
Die Emittentin wird unmittelbar von der GFG kontrolliert, welche mehr als 30 % der
Stimmrechte der Emittentin hlt. GFGs Gesellschafter sind Marc, Oliver und
Alexander Samwer; jeder von ihnen hlt 33,33 % der Geschftsanteile an der GFG.
Die bestehenden Aktionre haben eine Stimmausbungsvereinbarung
(Stimmausbungsvereinbarung) getroffen, die am 15. August 2014 wirksam
wurde, wonach die Parteien sich unter anderem verpflichtet haben, ihre Stimmrechte
einheitlich in den Hauptversammlungen der Emittentin im Hinblick auf die
Zusammensetzung des Aufsichtsrats auszuben. Darber hinaus verpflichtet sich
jeder Hauptaktionr in der Stimmausbungsvereinbarung fr den Fall, dass ein
Hauptaktionr in einer Hauptversammlung gegen eine Manahme oder einen
Beschluss des Vorstands oder Aufsichtsrats stimmt, angemessene Manahmen zu
ergreifen, damit dieser Gegenstand nicht beschlossen wird sowie das von ihm
bestimmte Aufsichtsratsmitglied zu instruieren, nicht fr diesen Gegenstand zu
stimmen, vorausgesetzt, dass dieser Gegenstand (i) die Geschftsordnung des
S-32
Vorstands oder Aufsichtsrats ndern wrde oder (ii) einen Hauptaktionr im
Vergleich zu irgendeinem anderen Aktionr der Emittentin einschlielich jeder
Person (allein oder gemeinsam mit irgendeiner anderen Person), die diesen anderen
Aktionr beherrscht oder die von diesem Aktionr allein oder gemeinsam mit
anderen beherrscht wird, einseitig benachteiligen wrde.
Die Stimmausbungsvereinbarung erlischt automatisch zum frheren der folgenden
Zeitpunkte: (i) 48 Monate nach Vollzug des Angebots; (ii) an dem Tag, an welchem
entweder Emesco oder GFG (unmittelbar oder mittelbar) weniger als 10 % der
Aktien der Emittentin halten; (iii) an dem Tag, an welchem die Geschftsanteile von
Marc, Oliver, und Alexander Samwer an GFG zusammen 50 % oder weniger
betragen; oder (iv) an dem Tag, an welchem der (unmittelbare oder mittelbare)
Gesellschaftsanteil der Investment AB Kinnevik an Emesco 50 % oder weniger
betrgt.
Nach Durchfhrung des Angebots und unter der Voraussetzung, dass alle
Angebotsaktien platziert, alle Neuen Aktien ausgegeben werden und die Greenshoe-
Option vollstndig ausgebt wird (siehe E.3Beschreibung der
AngebotskonditionenStabilisierung, Mehrzuteilung und Greenshoe-Option), wird
GFG weiterhin ungefhr 39,8 %, und alle bestehenden Aktionre zusammen
weiterhin zumindest ungefhr 76,0 % des Grundkapitals der Emittentin halten.
Infolgedessen wird GFG allein und fr die Dauer der Stimmausbungsvereinbarung
zusammen mit den anderen bestehenden Aktionre weiterhin Aktien halten, die einen
beherrschenden Einfluss begrnden.
B.7 Ausgewhlte
wesentliche historische
Finanzinformationen.
Die in den nachstehenden Tabellen enthaltenen Finanzinformationen sind sofern nicht
anders angegeben dem geprften Konzernabschluss der Emittentin fr das zum
31. Dezember 2013 endende Geschftsjahr und dem ungeprften verkrzten
Konzernzwischenabschluss der Emittentin fr den zum 30. Juni 2014 endenden
Sechsmonatszeitraum sowie den Unterlagen des Konzern-Rechnungswesens oder -
Controllings entnommen, aus ihnen abgeleitet oder auf der Basis von Zahlen aus den
oben genannten Quellen berechnet. Der Konzernabschluss wurde gem HGB erstellt.
Die Emittentin hat keine Konzernabschlsse fr die vorhergehenden Jahre erstellt.
Zustzliche Informationen in diesem Prospekt wurden den geprften Jahresabschlssen
der Emittentin fr die zum 31. Dezember 2013, 31. Dezember 2012 und 31. Dezember
2011 endenden Geschftsjahren entnommen, die gem HGB erstellt wurden.
Ernst & Young GmbH Wirtschaftsprfungsgesellschaft, Stuttgart, Niederlassung Berlin,
Deutschland (E&Y) hat den Konzernabschluss fr das zum 31. Dezember 2013
endende Geschftsjahr, der keine Vergleichsinformationen fr das zum 31. Dezember
2012 endende Geschftsjahr enthlt, geprft und mit einem uneingeschrnkten
Besttigungsvermerk versehen. Die Jahresabschlsse fr die zum 31. Dezember 2011,
31. Dezember 2012 und 31. Dezember 2013 endenden Geschftsjahre wurden durch die
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungsgesellschaft, Frankfurt
am Main, Niederlassung Berlin, Deutschland (PwC) geprft. Jeder der
Einzelabschlsse wurde mit einem uneingeschrnkten Besttigungsvermerk versehen.
Die vorgenannten Jahresabschlsse der Emittentin gem HGB sowie die jeweiligen
diesbezglichen Besttigungsvermerke sind in diesem Prospekt aufgefhrt.
Sofern Finanzdaten in den nachstehenden Tabellen als geprft gekennzeichnet
sind, bedeutet dies, dass sie den oben genannten geprften Abschlssen entnommen
wurden. Die Kennzeichnung ungeprft wird in den nachstehenden Tabellen zur
Kenntlichmachung von Finanzdaten verwendet, die nicht den oben genannten
geprften Abschlssen entnommen wurden, aber sofern nicht anders angegeben
entweder dem ungeprften verkrzten Konzernzwischenabschluss oder den
Unterlagen des Konzern-Rechnungswesens oder des Controllings entnommen
wurden, oder sofern nicht anders angegeben auf der Basis von Zahlen aus den
oben genannten Quellen berechnet sind. Smtliche Finanzdaten, die im Text und den
nachfolgenden Tabellen dargestellt sind, sind in Millionen Euro ( Mio.) dargestellt,
sofern nicht anders angegeben. Einige Finanzdaten im Text und in den Tabellen
(einschlielich der Prozentstze) in diesem Prospekt wurden gem anerkannten
kaufmnnischen Standards gerundet, wobei Gesamtbetrge (Gesamtsummen,
Zwischenergebnisse, Differenzbetrge oder wenn Zahlen ins Verhltnis gesetzt
wurden) auf den zugrundeliegenden ungerundeten Betrgen berechnet wurden.
Folglich knnten die Gesamtbetrge (Gesamtsummen, Zwischenergebnisse oder
Differenzbetrge oder wenn Zahlen ins Verhltnis gesetzt werden) nicht in allen
Fllen den entsprechenden gerundeten Betrgen entsprechen, die in den
zugrundeliegenden (ungerundeten) und im folgenden Text und den Tabellen
aufgefhrten Zahlen enthalten sind. Finanzangaben, die in Klammern angegeben
werden, zeigen an, dass es sich dabei um negative Zahlen handelt. Weiterhin ergibt
die Summe dieser gerundeten Zahlen in den folgenden Tabellen mglicherweise
S-33
nicht den exakten, in den jeweiligen Tabellen und Aufstellungen aufgefhrten
Gesamtbetrag wieder. Im Text und in den Tabellen enthaltene prozentuale
nderungen sind kaufmnnisch auf eine Dezimalstelle gerundet, sofern nicht anders
angegeben. In Bezug auf Finanzangaben im Hauptteil des Prospekts (d. h. auerhalb
des Abschnitts Finanzinformationen) bedeutet ein Strich (), dass die betreffende
Finanzangabe nicht existiert, whrend eine Null (0) bedeutet, dass die betreffende
Finanzangabe verfgbar ist, aber auf Null gerundet wurde oder gleich Null ist.
Finanzinformationen in dieser Zusammenfassung zu einem anderen Datum oder fr
eine andere Periode als den Jahren endend zum 31. Dezember 2011, 31. Dezember
2012 oder 31. Dezember 2013 wurden dem ungeprften verkrzten
Konzernzwischenabschluss der Emittentin fr den zum 30. Juni 2014 endenden
Sechsmonatszeitraum oder den Rechnungswesen- oder Controllingunterlagen der
Emittentin oder der Unternehmen entnommen oder daraus abgeleitet und sind
ungeprft. Alle Zahlenangaben in dieser Zusammenfassung, die Beteiligungsquoten
betreffen sind auf einer nicht verwsserten Basis berechnet (sofern nicht anders
angegeben).
Ausgewhlte Finanzdaten
Finanzdaten aus der Konzern-Gewinn- und Verlustrechnung
Fr das
Geschftsjahr
zum
31. Dezember
Fr den
Sechsmonatszeitraum
zum 30. Juni
2013 2013 2014
(geprft) (ungeprft)
(in Mio.) (in Mio.)
Umsatzerlse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,5 33,0 47,0
Verminderung / Erhhung des Bestands an unfertigen Leistungen . . . . (0,5) 1,3 0,7
Sonstige betriebliche Ertrge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,9 0,9 18,2
137,9 35,2 65,8
Materialaufwand
Aufwendungen fr Roh-, Hilfs- und Betriebsstoffe und fr
bezogene Waren. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27,7) (12,1) (16,7)
Aufwendungen fr bezogene Leistungen . . . . . . . . . . . . . . . . . . . . . . . . . (8,6) (3,2) (4,2)
Personalaufwand
Lhne und Gehlter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44,5) (16,0) (23,5)
Soziale Abgaben und Aufwendungen fr Altersversorgung und
fr Untersttzung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,0) (3,2) (4,5)
Abschreibungen auf immaterielle Vermgensgegenstnde
des Anlagevermgens und Sachanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . (1,1) (0,5) (0,8)
Sonstige betriebliche Aufwendungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61,8) (18,2) (40,3)
(150,6) (53,3) (89,9)
Ertrge aus Beteiligungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 0,0 0,1
Ertrge aus assoziierten Unternehmen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,9 41,0 13,2
Sonstige Zinsen und hnliche Ertrge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,7 0,2 0,2
Abschreibungen auf Finanzanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,4) 0,0 (0,0)
Zinsen und hnliche Aufwendungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,4) (0,2) (0,7)
199,7 40,9 12,7
Ergebnis der gewhnlichen Geschftsttigkeit . . . . . . . . . . . . . . . . . . . . . . 187,0 22,8 (11,3)
Steuern vom Einkommen und vom Ertrag. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,3) (0,2) (1,5)
Sonstige Steuern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,5) (0,3) (0,4)
(12,8) (0,5) (1,9)
Konzernperiodenberschuss / Konzernperiodenfehlbetrag . . . . . . . 174,2 22,3 (13,3)
Verlustvortrag / Gewinnvortrag aus dem Vorjahr . . . . . . . . . . . . . . . . . . . . . . (23,4) (23,4) 84,4
Vorabausschttungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,6) (323,9)
Auf andere Gesellschafter entfallender Verlust . . . . . . . . . . . . . . . . . . . . . . . . 14,2 5,5 13,9
Konzernbilanzgewinn / Konzernbilanzverlust . . . . . . . . . . . . . . . . . . . . . . 84,4 4,4 (238,8)
S-34
Finanzdaten aus der Konzernbilanz
Zum 31. Dezember
2013
Zum 30. Juni
2014
(geprft) (ungeprft)
(in Mio.) (in Mio.)
AKTIVA
Anlagevermgen
Immaterielle Vermgensgegenstnde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,2 1,3
Sachanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,4 3,0
Finanzanlagen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390,5 380,7
davon Beteiligungen an assoziierten Unternehmen . . . . . . . . . . . . . . . . . . . . 361,1 351,1
394,2 385,1
Umlaufvermgen
Vorrte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,5 9,8
Forderungen und sonstige Vermgensgegenstnde . . . . . . . . . . . . . . . . . . . . . . . . . 36,5 70,1
davon Forderungen gegen assoziierte Unternehmen . . . . . . . . . . . . . . . . . . . 22,6 47,1
45,0
(1)
79,9
Sonstige Wertpapiere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,0
Kassenbestand, Guthaben bei Kreditinstituten und Schecks . . . . . . . . . . . . . . . . 437,4 80,5
482,4 201,5
Rechnungsabgrenzungsposten . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,5 0,7
Aktive latente Steuern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0,3
877,4 587,6
PASSIVA
Eigenkapital
Gezeichnetes Kapital 0,1 0,1
Eigene Anteile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,0) (0,0)
0,1 0,1
Kapitalrcklage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462,2 501,2
Gewinnrcklagen
Andere Rcklagen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,9 208,6
Kumuliertes briges Konzernergebnis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,7) (2,1)
Konzernbilanzgewinn/Konzernbilanzverlust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,4 (238,8)
Anteile anderer Gesellschafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,0 22,5
773,0 491,5
Unterschiedsbetrag aus der Kapitalkonsolidierung. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,1 0,0
Rckstellungen
Steuerrckstellungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,1 14,0
Sonstige Rckstellungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,1 27,1
37,2 41,1
Verbindlichkeiten
Verbindlichkeiten gegenber Kreditinstituten . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 0,0
Erhaltene Anzahlungen auf Bestellungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,5 0,3
Verbindlichkeiten aus Lieferungen und Leistungen . . . . . . . . . . . . . . . . . . . . . . . . . 20,2 20,4
Verbindlichkeiten gegenber Gesellschaftern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,5 0,0
Verbindlichkeiten gegenber verbundenen Unternehmen . . . . . . . . . . . . . . . . . . 1,0 1,1
Verbindlichkeiten gegenber assoziierten Unternehmen. . . . . . . . . . . . . . . . . . . . 22,4 24,0
Sonstige Verbindlichkeiten
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,2 9,1
66,8 54,8
Rechnungsabgrenzungsposten . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,3 0,2
Passive latente Steuern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,0 0,0
877,4 587,6
(1) Ungeprft.
(2) Sonstige Verbindlichkeiten beinhalten Verbindlichkeiten aus Steuern in Hhe von 3,1 Mio. zum 30. Juni 2014 und 4.1 Mio. zum
31. Dezember 2013 sowie Verbindlichkeiten im Rahmen im Bereich der sozialen Sicherheit in Hhe von 0,5 Mio. zum 30. Juni 2014
und 0.2 Mio. zum 31. Dezember 2013.
S-35
Ausgewhlte Finanzdaten aus der Konzernkapitalflussrechnung
Fr das
Geschftsjahr
zum 31. Dezember
Fr den
Sechsmonatszeitraum
zum 30. Juni
2013 2013 2014
(geprft) (ungeprft)
(in Mio.) (in Mio.)
Cashflow aus laufender Geschftsttigkeit . . . . . . . . . . . . . . . . . . . . . . . (38,9) (18,4) (55,5)
Cashflow aus der Investitionsttigkeit . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,5 (6,8) (62,2)
Cashflow aus der Finanzierungsttigkeit . . . . . . . . . . . . . . . . . . . . . . . . . 116,8 6,9 (229,7)
Zahlungswirksame Vernderung des Finanzmittelfonds . . . . . . . . . 250,4 (18,3) (347,4)
Wechselkurs, konsolidierungskreis- und bewertungsbedingte
nderungen des Finanzmittelfonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 (9,5)
Finanzmittelfonds am Anfang der Periode . . . . . . . . . . . . . . . . . . . . . . . . 187,0 187,0 437,4
Finanzmittelfonds am Ende der Periode . . . . . . . . . . . . . . . . . . . . . . . . . . 437,4 168,8 80,5
Finanzdaten aus der nichtkonsolidierten Gewinn- und Verlustrechnung
Die folgenden Finanzdaten sind dem geprften Einzelabschluss der Rocket Internet
GmbH fr die zum 31. Dezember 2011, 31. Dezember 2012 und 31. Dezember
2013 endenden Geschftsjahre entnommen.
Fr das Geschftsjahr zum 31. Dezember
2011 2012 2013
(geprft)
(in Mio.)
Umsatzerlse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,7 24,3 26,0
Erhhung/Verminderung (-) des Bestands an unfertigen Leistungen. . . . . . . . . . 0,1 2,4 (0,5)
Sonstige betriebliche Ertrge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,7 176,8 187,5
Materialaufwand
Aufwendungen fr Roh-, Hilfs- und Betriebsstoffe und fr bezogene
Waren . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,3) (0,1) (0,8)
Aufwendungen fr bezogene Leistungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,1) (10,3) (7,2)
(0,4) (10,4) (8,0)
Personalaufwand
Lhne und Gehlter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,6) (14,1) (22,9)
Soziale Abgaben und Aufwendungen fr Altersversorgung und fr
Untersttzung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,7) (1,9) (2,1)
(4,3) (16,0) (25,0)
Abschreibungen
auf immaterielle Vermgensgegenstnde des Anlagevermgens und
Sachanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,1) (0,4) (0,4)
auf Vermgensgegenstnde des Umlaufvermgens, soweit diese die in
der Kapitalgesellschaft blichen Abschreibungen berschreiten. . . . . . . . . . (0,9)
(0,1) (0,4) (1,3)
Sonstige betriebliche Aufwendungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,9) (11,3) (17,4)
Ertrge aus Beteiligungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,6 218,1 0,3
Sonstige Zinsen und hnliche Ertrge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,4 0,2 0,4
Abschreibung auf Finanzanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,7) (3,1) (3,1)
Zinsen und hnliche Aufwendungen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,0) (0,0)
Ergebnis aus der gewhnlichen Geschftsttigkeit . . . . . . . . . . . . . . . . . . . . . . . . . 51,2 380,6 158,9
Steuern vom Einkommen und Ertrag . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,5) (2,5) (11,7)
Jahresberschuss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,7 378,1 147,1
Gewinnvortrag aus dem Vorjahr . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,2
Entnahmen aus der Kapitalrcklage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,4
Ausschttung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (470,8) (80,6)
Bilanzgewinn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,7 66,6
Zustzliche Kennzahlen
Basierend auf verfgbaren Finanzinformation, wiesen unsere proven winners,
emerging stars, regionalen Internetgruppen, Konzepte, strategischen Beteiligungen
und sonstigen Investitionen (unter Ausschluss der Beteiligungen, die Teil des Global
Founders Capital Fund Portfolios waren und im August 2014 eingebracht wurden)
S-36
jeweils in Summe einen Verlust aus (basierend auf dem jeweils letzten
Geschftsjahr). Mit Ausnahme der proven winners verfgt die Emittentin jedoch
nicht ber Informationen, die es ihr erlauben wrden, den Gesamtverlust der
Unternehmen in einer der anderen Kategorien verlsslich zu ermitteln. Die proven
winners erwirtschafteten Gesamtjahresfehlbetrge von 442 Mio. (ungeprfter
Gesamtbetrag ihrer Jahresfehlbetrge auf der Grundlage der fr die jeweilige
Gesellschaft anzuwendenden allgemein anerkannten Bewertungs- und
Bilanzierungsgrundstze, jeweils fr das letzte Geschftsjahr, fr das Daten zur
Verfgung standen und unter Bereinigung von auerordentlichen Ertrgen von Dafiti
resultierend aus der Bewertung von Kommanditanteilen). Betreffend die emerging
stars verfgt die Emittentin ber belastbare und aussagekrftige Finanzinformationen
fr CupoNation, Lendico, Paymill und Zencap.
Die folgende Tabelle enthlt eine Zusammenfassung von einigen zustzlichen
Kennzahlen unserer proven winners und fr CupoNation, Landico, Paymill und
Zencap fr die dargestellten Berichtsperioden. Die Daten wurden aus dem
Rechnungswesen- bzw. Controllingunterlagen der Unternehmen abgeleitet.
Wenngleich wir davon ausgehen, dass unsere proven winners Potenzial zeigen,
besteht keine Sicherheit, dass diese tatschlich zu erfolgreichen Unternehmen
werden.
Fr das Geschftsjahr
zum 31. Dezember
2012 2013
(ungeprft)
proven winners
Dafiti
(1)
Umsatzerlse (in BRL Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,5 419,3
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 88
Bruttogewinnmarge
(2)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 34
EBITDA
(3)
(in BRL Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (168,5) (205,3)
Jahresfehlbetrag
(4)
(in BRL Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,0) (2,3)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0,4) (0,8)
Lamoda
(5)
Umsatzerlse
(6)
(in RUB Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475,8 5,150,0
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 249
Bruttogewinnmarge
(7)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 40
EBITDA
(8)
(in RUB Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.603,7) (1.920,9)
Jahresfehlbetrag (in RUB Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.370,1) (1.692,1)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34,4) (40,1)
Zalora
(9)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 68,9
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Bruttogewinnmarge
(10)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 38
EBITDA
(11)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (68,3)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (71,1)
Jabong
(12)
Umsatzerlse
(13)
(in INR Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.433,1 4.385,7
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 206
Bruttogewinnmarge
(14)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (10)
EBITDA
(15)
(in INR Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.875,7) (2.491,5)
Jahresfehlbetrag (in INR Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.186,5) (2.934,4)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46,5) (37,9)
Namshi
(16)
Umsatzerlse
(17)
(in AED Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,3 53,2
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 226
Bruttogewinnmarge
(18)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 46
EBITDA
(19)
(in AED Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,6) (49,3)
Jahresfehlbetrag
(20)
(in AED Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,2) (50,5)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,1) (10,4)
Lazada
(21)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 56,8
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Bruttogewinnmarge
(22)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 6
EBITDA
(23)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (50,7)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (51,8)
Linio
(24)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,5 47,9
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 633
Bruttogewinnmarge
(25)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) 10
EBITDA
(26)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,5) (34,1)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,5) (35,9)
S-37
Fr das Geschftsjahr
zum 31. Dezember
2012 2013
(ungeprft)
proven winners
Jumia
(27)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 29,0
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Bruttogewinnmarge
(28)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 19
EBITDA
(29)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (33,6)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (35,1)
Westwing
(30)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,8 111,4
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 143
Bruttogewinnmarge
(31)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 40
EBITDA
(32)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61,9) (39,5)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64,0) (41,5)
Home24
(33)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,1 92,8
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 50
Bruttogewinnmarge
(34)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 39
EBITDA
(35)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,7) (37,9)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81,6) (41,8)
Hellofresh
(36)
Umsatzerlse (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,3 14,2
Anstieg der Umsatzerlse (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 510
Bruttogewinnmarge (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
EBITDA
(37)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,0) (5,2)
Jahresfehlbetrag (in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,0) (5,4)
emerging stars
CupoNation (Jahresfehlbetrag)
(38)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3,0)
Lendico (Jahresfehlbetrag)
(39)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3,2)
Paymill (Jahresfehlbetrag)
(40)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (4,7)
Zencap (Jahresfehlbetrag)
(41)
(in Mio.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (0,0)
(1) Die wichtigsten konsolidierten Finanzkennzahlen von Dafiti wurden auf der Grundlage der internationalen Rechnungslegungsstandards erstellt,
wie sie vom International Accounting Standards Board herausgegeben werden (vollstndige IFRS).
(2) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
BRL 419,3 Mio.; 2012: BRL 223,5 Mio.) abzglich (ii) Umsatzkosten (2013: BRL 276,3 Mio.; 2012: BRL 132,9 Mio.).
(3) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von BRL 208,1 Mio.; 2012: Verlust von BRL 170,4 Mio.) zuzglich
(ii) Abschreibungen auf Sachanlagen (2013: BRL 2,3 Mio.; 2012: BRL 1,5 Mio.) zuzglich (iii) Abschreibungen auf immaterielle
Vermgenswerte (2013: BRL 0,5 Mio.; 2012: BRL 0,3 Mio.). Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich auf
BRL 4,0 Mio. in 2013 und BRL 14,6 Mio. in 2012 beliefen.
(4) Der Jahresfehlbetrag enthielt einen Gewinn aus der Vernderung des Rckkaufbetrags von Kommanditanteilen (2013: BRL 202,1 Mio., 2012:
BRL 172,4 Mio.) und somit betrug der Jahresfehlbetrag vor Vernderung des Rckkaufbetrags von Kommanditanteilen in 2013 BRL 204,4 Mio.
und in 2012 BRL 173,4 Mio. Der Gewinn aus der Vernderung des Rckkaufbetrags resultiert aus der Bewertung der Kommanditanteile, die als
Verbindlichkeiten nach IAS 32 klassifiziert werden.
(5) Die wichtigsten konsolidierten Finanzkennzahlen von Lamoda wurden auf der Grundlage der vollstndigen IFRS erstellt.
(6) Als revenue in den Rechnungswesen- bzw. Controllingunterlagen von Lamoda bezeichnet.
(7) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
RUB 5.150,0 Mio.; 2012: RUB 1.475,8 Mio.) abzglich (ii) Umsatzkosten (2013: RUB 3.111,8 Mio.; 2012: RUB 1.013,1 Mio.).
(8) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von RUB 1.982,7 Mio.; 2012: Verlust von RUB 1.616,1 Mio.) zuzglich
(ii) Abschreibungen auf Sachanlagen (2013: RUB 47,0 Mio.; 2012: RUB 10,9 Mio.) zuzglich (iii) Abschreibungen auf immaterielle
Vermgenswerte (2013: RUB 14,7 Mio.; 2012: RUB 1,5 Mio.). Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich in
2013 auf RUB 37,9 Mio. und in 2012 RUB 21,5 Mio. beliefen.
(9) Die wichtigsten konsolidierten Finanzkennzahlen von Zalora wurden auf der Grundlage der vollstndigen IFRS erstellt.
(10) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
68,9 Mio.) abzglich (ii) Umsatzkosten (2013: 42,6 Mio.).
(11) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 69,2 Mio.) zuzglich (ii) Abschreibungen von Sachanlagen (2013:
0,6 Mio.) zuzglich (iii) Abschreibungen auf immaterielle Vermgenswerte (2013: 0,3 Mio.). Das EBITDA umfasst Aufwendungen aus
anteilsbasierter Vergtung, die sich auf 6,9 Mio. in 2013 beliefen.
(12) Die wichtigsten konsolidierten Finanzkennzahlen von Jabong fr die Zwlfmonatszeitrume, die am 31. Mrz 2013 und am 31. Mrz 2014
endeten, wurden auf der Grundlage der vollstndigen IFRS erstellt.
(13) Als revenue in den Rechnungswesen- bzw. Controllingunterlagen von Jabong bezeichnet.
(14) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse
(Zwlfmonatszeitraum, der am 31. Mrz 2014 endete: INR 4.385,7 Mio.; Zwlfmonatszeitraum, der am 31. Mrz 2013 endete:
INR 1.433,1 Mio.) abzglich (ii) Umsatzkosten (Zwlfmonatszeitraum, der am 31. Mrz 2014 endete: INR 4.382,8 Mio.; Zwlfmonatszeitraum,
der am 31. Mrz 2013 endete: INR 1.810,7 Mio.).
(15) Das EBITDA wird berechnet als (i) Verlust aus der betrieblichen Ttigkeit (Zwlfmonatszeitraum, der am 31. Mrz 2014 endete: Verlust von
INR 2.573,7 Mio.; Zwlfmonatszeitraum, der am 31. Mrz 2013 endete: Verlust von INR 2.953,5 Mio.) zuzglich (ii) Abschreibungen
(Zwlfmonatszeitraum, der am 31. Mrz 2014 endete: INR 82,2 Mio.; Zwlfmonatszeitraum, der am 31. Mrz 2013 endete: INR 77,8 Mio.). Das
EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich fr den Zwlfmonatszeitraum, der am 31. Mrz 2014 endete, auf INR
65,7 Mio. und fr den Zwlfmonatszeitraum, der am 31. Mrz 2013 endete, auf INR 153,6 Mio. beliefen.
(16) Wichtigste konsolidierte Finanzkennzahlen von MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG (erstellt auf Grundlage der
vollstndigen IFRS). MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG ist eine 91,1% Tochtergesellschaft der Middle East eCommerce
Holding GmbH und der einzige bedeutsame Vermgenswert der Middle East eCommerce Holding GmbH.
(17) Als sale of goods in den Rechnungswesen- bzw. Controllingunterlagen von Namshi bezeichnet.
(18) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
AED 53,2 Mio.; 2012: AED 16,3 Mio.) abzglich (ii) Umsatzkosten (2013: AED 28,9 Mio.; 2012: AED 10,9 Mio.).
S-38
(19) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von AED 50,1 Mio.; 2012: Verlust von AED 59,0 Mio.) zuzglich
(ii) Abschreibungen auf Sachanlagen (2013: AED 0,6 Mio.; 2012: AED 0,2 Mio.) zuzglich (iii) Abschreibungen auf immaterielle
Vermgenswerte (2013: AED 0,2 Mio.; 2012: AED 0,1 Mio.). Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung mit
Ausgleich durch Eigenkapitalinstrumente, die sich in 2013 auf AED 12,2 Mio. und in 2012 auf AED 9,0 Mio. beliefen.
(20) Der Jahresfehlbetrag enthielt einen Gewinn aus der Vernderung des Rckkaufbetrags von Kommanditanteilen (2012: AED 34,9 Mio.) und
somit betrug der Jahresfehlbetrag vor Vernderung des Rckkaufbetrags von Kommanditanteilen in 2012 AED 59,2 Mio. Der Gewinn aus der
Vernderung des Rckkaufbetrags resultiert aus der Bewertung der Kommanditanteile, die als Verbindlichkeiten nach IAS 32 klassifiziert
werden.
(21) Die wichtigsten konsolidierten Finanzkennzahlen von Lazada wurden auf der Grundlage der vollstndigen IFRS erstellt.
(22) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
56,8 Mio.) abzglich (ii) Umsatzkosten (2013: 53,2 Mio.).
(23) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 51,3 Mio.) zuzglich (ii) Abschreibungen auf Sachanlagen (2013:
0,5 Mio.) zuzglich (iii) Abschreibungen auf immaterielle Vermgenswerte (2013: 0,1 Mio.). Das EBITDA umfasst Aufwendungen aus
anteilsbasierter Vergtung, die sich in 2013 auf 6,5 Mio. beliefen.
(24) Die wichtigsten konsolidierten Finanzkennzahlen von Linio wurden auf der Grundlage der vollstndigen IFRS erstellt.
(25) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
47,9 Mio.; 2012: 6,5 Mio.) abzglich (ii) Umsatzkosten (2013: 43,2 Mio.; 2012: 6,9 Mio.).
(26) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 34,5 Mio.; 2012: Verlust von 14,6 Mio.) zuzglich
(ii) Abschreibungen auf Sachanlagen (2013: 0,4 Mio. und 2012: 0,1 Mio.) zuzglich (iii) Abschreibungen auf immaterielle Vermgenswerte
(2013: 0,05 Mio.; 2012: 0,01 Mio.). Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich in 2013 auf 4,5 Mio.
und in 2012 auf 3,1 Mio. beliefen.
(27) Die wichtigsten konsolidierten Finanzkennzahlen von Jumia wurden auf der Grundlage der vollstndigen IFRS erstellt.
(28) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
29,0 Mio.) abzglich (ii) Umsatzkosten (2013: 23,6 Mio.).
(29) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 34,1 Mio.) zuzglich (ii) Abschreibungen und Wertminderungen auf
Sachanlagen (2013: 0,4 Mio.) zuzglich (iii) Abschreibungen und Wertminderungen auf immaterielle Vermgenswerte (2013: 0,03 Mio.).
Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich auf 3,1 Mio. in 2013 beliefen.
(30) Die wichtigsten konsolidierten Finanzkennzahlen von Westwing wurden auf der Grundlage des HGB erstellt.
(31) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
111,4 Mio.; 2012: 45,8 Mio.) abzglich (ii) Herstellungskosten der zur Erzielung der Umsatzerlse erbrachten Leistungen (2013:
66,6 Mio.; 2012: 34,0 Mio.).
(32) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 40,2 Mio.; 2012: Verlust von 62,2 Mio.) zuzglich
(ii) Abschreibungen auf Gegenstnde des Anlagevermgens (2013: 0,7 Mio.; 2012: 0,3 Mio.) Der Betriebsgewinn oder -verlust wird
berechnet als (i) Bruttoergebnis vom Umsatz (2013: 44,8 Mio.; 2012: 11,8 Mio.) abzglich (ii) Vertriebskosten (2013: 64,4 Mio.; 2012:
50,9 Mio.) abzglich (iii) allgemeine Verwaltungskosten (2013: 19,6 Mio.; 2012: 22,4 Mio.) zuzglich (iv) sonstige betriebliche Ertrge
(2013: 0,5 Mio.; 2012: 0,2 Mio.) abzglich (v) sonstige betriebliche Aufwendungen (2013: 1,5 Mio.; 2012: 0,9 Mio.).
(33) Die wichtigsten konsolidierten Finanzkennzahlen von Home24 wurden auf der Grundlage der internationalen Rechnungslegungsstandards
erstellt, wie sie vom International Accounting Standards Board herausgegeben und von der EU verabschiedet werden (EU-IFRS).
(34) Die Bruttogewinnmarge ist das Verhltnis von Bruttogewinn zu Umsatzerlsen. Bruttogewinn wird berechnet als (i) Umsatzerlse (2013:
92,8 Mio.; 2012: 62,1 Mio.) abzglich (ii) Umsatzkosten (2013: 56,6 Mio.; 2012: 43,7 Mio.).
(35) Das EBITDA wird berechnet als (i) Betriebsergebnis (2013: Verlust von 40,2 Mio.; 2012: Verlust von 81,1 Mio.) zuzglich
(ii) Abschreibungen auf Sachanlagen (2013: 0,4 Mio.; 2012: 0,4 Mio.) zuzglich (iii) Abschreibungen auf immaterielle Vermgenswerte
(2013: 1,9 Mio.; 2012: 0,03 Mio.). Das EBITDA umfasst Aufwendungen aus anteilsbasierter Vergtung, die sich in 2013 auf 6,4 Mio. und
in 2012 auf 5,6 Mio. beliefen.
(36) Die wichtigsten konsolidierten Finanzkennzahlen von Hellofresh wurden auf der Grundlage des HGB erstellt.
(37) Das EBITDA wird berechnet als (i) Ergebnis der gewhnlichen Geschftsttigkeit (2013: Verlust von 5,4 Mio.; 2012: Verlust von 6,0 Mio.)
zuzglich (ii) Zinsen und hnliche Aufwendungen (2013: 0,0 Mio.: 2012 0,0 Mio.) abzglich (iii) sonstige Zinsen und hnliche Ertrge
(2013: 0,0 Mio.; 2012: 0,0 Mio.) und (iv) Abschreibungen auf immaterielle Vermgensgegenstnde des Anlagevermgens und Sachanlagen
(2013: 0,1 Mio.; 2012: 0,0 Mio.).
(38) Basierend auf Rechnungswesen- und Controllingunterlagen von CupoNation GmbH, die auf Grundlage des HGB erstellt wurden.
(39) Jahresfehlbetrag fr die Periode vom 30. August 2013 bis 31. Dezember 2013 basierend auf Rechnungswesen- und Controllingunterlagen von
ECommerce Holding II S. r.l., die auf Grundlage des HGB erstellt wurden.
(40) Basierend auf Rechnungswesen- und Controllingunterlagen von Paymill GmbH, die auf Grundlage des HGB erstellt wurden.
(41) Jahresfehlbetrag fr die Periode vom 27. September 2013 bis 31. Dezember 2013 basierend auf Rechnungswesen- und Controllingunterlagen
von Zencap Global S. r.l., die auf Grundlage der luxemburgischen Grundstze ordnungsgemer Rechnungslegung erstellt wurden.
S-39
Letzte Portfoliowerte
Die folgenden Tabellen enthalten zusammengefasste Angaben zu den letzten
Portfoliowerten (LPV), die die letzte Bewertung unserer 11 proven winners
(1)
,
9 emerging stars
(2)
und der 4 regionalen Internetunternehmensgruppen, die in Summe
30 Unternehmen umfassen (einschlielich 1 proven winner) durch einen Dritten im
Rahmen einer Finanzierungsrunde (einschlielich einer Finanzierungsrunde von
Lamoda, die nur von deren Hauptgesellschafterin Bigfoot I gezeichnet wurde) oder
einer Transaktion auf dem Sekundrmarkt oder, in Bezug auf einige der Anteile in
den Kategorien Strategische Beteiligungen und Sonstige Investitionen, die
Werte, die ihnen im Zusammenhang mit ihrer Einbringung in die Emittentin
zugeordnet wurden. Strategische Beteiligungen umfasst 8 Unternehmen, die von der
Emittentin gegrndet wurden und 17 Beteiligungen, die in die Emittentin eingebracht
wurden. Sonstige Investitionen umfasst 9 Unternehmen, die von der Emittentin
gegrndet wurden und 36 Beteiligungen, die in die Emittentin eingebracht wurden.
Die LPVs sind auf der Basis der Investition oder der Kapitalverpflichtung eines
Dritten oder des von einem Dritten gezahlten Kaufpreises, d. h. eines anderen
Investors als der Emittentin, durch Division mit dem von diesem Dritten erworbenen
Anteil berechnet. Das bedeutet, dass die gezeigten Bewertungen einschlielich der
Investition bzw. der Kapitalverpflichtung ermittelt wurden. Die Berechnung von
LPVs ist nicht vom HGB vorgegeben und andere Gesellschaften knnen bei der
Berechnung von LPVs andere Methoden oder Definitionen verwenden als die
Emittentin. Da die LPVs keine Angaben sind, die nach HGB ermittelt werden,
weichen diese von den Werten der Finanzanlagen im Konzernabschluss der
Emittentin ab. Dies liegt daran, dass die LPVs auf Werten basieren, die der
jeweiligen Einheit in einer Transaktion mit einer auenstehenden Partei zugewiesen
wurden, whrend die Werte der Finanzanlagen im Konzernabschluss der Emittentin
auf Anschaffungskosten oder dem direkten oder indirekten Anteil der Emittentin an
dem nach HGB ermittelten Eigenkapital der jeweiligen Einheit basieren. So betrugen
etwa die Finanzanlagen zum 30. Juni 2014 380,7 Mio., worin Beteiligungen an
assoziierten Unternehmen von 351,1 Mio. enthalten. Des Weiteren zeigen die
folgenden Tabellen die derzeitig von der Emittentin an diesen Unternehmen
gehaltenen unmittelbaren und mittelbaren Beteiligungen und die entsprechenden
Werte dieser unmittelbaren und mittelbaren Beteiligungen. Die Daten wurden
basierend auf Rechnungswesen-bzw. Controllingunterlagen der Emittentin berechnet.
Keiner der proven winners oder emerging stars wies im Geschftsjahr 2013 ein
positives Periodenergebnis auf.
Datum der letzten
Finanzierungsrunde
(Datum der
Beurkundung)
(1)
LPV
( Mio.)
Gegenwrtiger
Anteil der
Emittentin
(2)
Anteils-
gewichteter
LPV
( Mio.)
(ungeprft)
proven winners
(3)
Dafiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sept. 2013 778 22,7% 177
Lamoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Juli 2014 720 23,5% 169
(4)
Zalora . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mrz 2014 524 25,0%
(5)
131
Jabong. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dez. 2013 388 21,4% 83
Namshi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 2014 105 34,4% 36
Lazada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Feb. 2014 504 26,7% 135
Linio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apr. 2014 259 35,2% 91
Jumia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nov. 2013 212 26,8% 20
(6)
Home24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Juli 2014 498 49,5% 247
Westwing . . . . . . . . . . . . . . . . . . . . . . . . . . . Mai 2014 353 33,7% 119
Hellofresh . . . . . . . . . . . . . . . . . . . . . . . . . . . Juni 2014 131 37,1% 49
Gesamt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.473 1.256
(7)
(1) Die proven winners sind unsere grten und am weitesten entwickelten Unternehmen. Sie
haben eine Bewertung in der letzten Finanzierungsrunde von mehr als 100 Mio. und gehen
ihrem Geschft seit zwei Jahren oder lnger nach oder haben mehr als 50 Mio. Umsatz. Elf
unserer Unternehmen zhlen zu dieser Kategorie.
(2) Unsere emerging stars sind blicherweise kleiner als unsere proven winners. Diese haben die
erste Finanzierungsrunde nach der Grndungsfinanzierung durchgefhrt, sie erwirtschaften
Umsatz und verfgen ber messbare Leistungskennzahlen, die ein signifikantes Wachstum
aufweisen. Neun unserer Unternehmen zhlen zu dieser Kategorie.
S-40
Datum der letzten
Finanzierungsrunde
(Datum der
Beurkundung)
(1)
LPV
( Mio.)
Gegenwrtiger
Anteil der
Emittentin
(2)
Anteils-
gewichteter
LPV
( million)
(ungeprft)
emerging stars
(8)
FabFurnish . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
(9)
25,6% n/a
Zanui . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
(9)
31,4% n/a
foodpanda . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 2014 178 44,9% 80
Wimdu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mai 2012 95 52,3% 49
CupoNation . . . . . . . . . . . . . . . . . . . . . . . . . . Juli 2012 33 44,7% 15
Helpling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aug. 2014 20 59,8% 12
Lendico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Juli 2014 120 55,5% 67
PAYMILL. . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan. 2014 34 49,6%
(10)
17
Zencap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Juni 2014 86 74,2% 64
Gesamt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565 303
Datum der letzten
Finanzierungsrunde
(Datum der
Beurkundung)
(1)
LPV
( Mio.)
Gegenwrtiger
Anteil der
Emittentin
(2)
Anteils-
gewichteter
LPV
( million)
(ungeprft)
Regionale Internet-
unternehmensgruppen
(11)
Africa Internet Group. . . . . . . . . . . . . . . Dez. 2013 504 33,3% 168
Asia Internet Group . . . . . . . . . . . . . . . . Apr. 2014 360 50,0% 180
Latin America Internet Group. . . . . . Dez. 2013 267 65,0% 173
Middle East Internet Group . . . . . . . . Dez. 2013 120 50,0% 60
Gesamt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.251 581
Datum der letzten
Finanzierungsrunde
(Datum der
Beurkundung)
Gegenwrtiger
Anteil der
Emittentin
(2)
Anteils-
gewichteter
LPV
(12)
( Mio.)
(ungeprft)
Strategische Beteiligungen . . . . . . . . . . . . . . . . . . . n/a n/a 181
Sonstige Investitionen . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a 238
Gesamt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420
(1) Eine Finanzierungsrunde ist eine einzelne Investition oder eine Serie von Investitionen, die ber
einen Zeitraum zum selben Aktienpreis erfolgt.
(2) Unmittelbarer und mittelbarer Anteil zum 31. August 2014.
(3) Dafiti bezieht sich auf Dafiti Latam GmbH & Co. Beteiligungs KG zusammen mit den
Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter der
Marke Dafiti ttig sind; Lamoda bezieht sich auf Lamoda GmbH zusammen mit den
Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter der
Marke Lamoda ttig sind; Zalora bezieht sich auf Zalora Group GmbH zusammen mit den
Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter den
Marken Zalora und The Iconic ttig sind; Jabong bezieht sich auf Jabong GmbH zusammen
mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die
unter der Marke Jabong ttig sind; Namshi bezieht sich auf Middle East eCommerce Holding
GmbH zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare
Beteiligung hlt und die unter der Marke Namshi ttig sind; Lazada bezieht sich auf Lazada
Group GmbH zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare
Beteiligung hlt und die unter den Marken Lazada und Lamido ttig sind; Linio bezieht sich
auf TIN Jade GmbH zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder
mittelbare Beteiligung hlt und die unter der Marke Linio ttig sind; Jumia bezieht sich auf
Africa eCommerce Holding GmbH gemeinsam mit den Rechtstrgern, an denen sie einen
unmittelbaren oder mittelbaren Anteil hlt und die unter den Marken Jumia oder Zando ttig
sind; Home24 bezieht sich auf Home24 GmbH zusammen mit den Rechtstrgern, an denen sie
eine unmittelbare oder mittelbare Beteiligung hlt und die unter den Marken Home24 und
Mobly ttig sind; Westwing bezieht sich auf Westwing Group GmbH zusammen mit den
Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter den
Marken Westwing und Dalani ttig sind; Hellofresh bezieht sich auf HelloFresh GmbH
zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung
hlt und die unter der Marke Hellofresh ttig sind.
(4) Auf der Basis der letzten Finanzierungsrunde, an der nur Bigfoot GmbH (Bigfoot I) teilgenommen
hat; auf der Basis der letzten Finanzierungsrunde mit externen Investoren, die im Mai 2013 begann,
wren die Anteile der Emittentin mit 102 Mio. bewertet worden.
(5) Am 27. August 2014 brachte Bigfoot II liquide Mittel in Zalora gegen zustzliche Anteile ein,
sodass sich der Anteil der Emittentin an Zalora auf 25,5 % erhhte.
S-41
(6) Gibt ausschlielich den anteilsgewichteten LPV fr Jumia wieder, der ber BGN Brillant
Services GmbH (Bigfoot II) gehalten wird. Der zustzliche Anteil der Emittentin von 17,2 %,
der durch Africa Internet Group gehalten wird, wird nicht gezeigt.
(7) Enthlt nur den anteilsgewichteten LPV fr Jumia in Hhe von 20 Mio., der durch Bigfoot II
gehalten wird.
(8) FabFurnish bezieht sich auf VRB GmbH & Co. B-181 KG zusammen mit den Rechtstrgern,
an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter der Marke
FabFurnish ttig sind; Zanui bezieht sich auf VRB GmbH & Co. B-131 KG zusammen mit
den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter
der Marke Zanui ttig sind; foodpanda bezieht sich auf Emerging Markets Online Food
Delivery Holding S. r.l. zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder
mittelbare Beteiligung hlt und die unter den Marken foodpanda, hellofood und Delivery Club
ttig sind; Wimdu bezieht sich auf Wimdu GmbH zusammen mit den Rechtstrgern, an denen
sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter der Marke Wimdu ttig sind;
CupoNation bezieht sich auf CupoNation Group GmbH zusammen mit den Rechtstrgern, an
denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die unter der Marke
CupoNation ttig sind; Helpling bezieht sich auf Helpling Group Holding S. r.l. zusammen
mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt und die
unter der Marke Helpling ttig sind; Lendico bezieht sich auf ECommerce Holding II S. r.l.
zusammen mit den Rechtstrgern, an denen sie eine unmittelbare oder mittelbare Beteiligung
hlt und die unter der Marke Lendico ttig sind; PAYMILL bezieht sich auf Paymill Holding
GmbH (ehemals Brillant 1470. GmbH) zusammen mit den Rechtstrgern, an denen sie eine
unmittelbare oder mittelbare Beteiligung hlt und die unter der Marke PAYMILL ttig sind;
Zencap bezieht sich auf Zencap Global S. r.l. zusammen mit den Rechtstrgern, an denen sie
eine unmittelbare oder mittelbare Beteiligung hlt und die unter der Marke Zencap ttig sind.
(9) FabFurnish und Zanui werden durch Zwischenholdings finanziert (Bigfoot I beziehungsweise
Bigfoot II). Es gab keine externen Finanzierungsrunden und deshalb kein LPV.
(10) Die Emittentin hlt derzeit 49,6 % der Geschftsanteile. Davon sind jedoch bis zu 1.692
Geschftsanteile mit Kaufoptionen belastet, die bestimmten Grndern von der Emittentin
eingerumt und von diesen bisher noch nicht ausgebt wurden.
(11) Africa Internet Group bezieht sich auf Africa Internet Holding GmbH und die Rechtstrger, an
denen sie eine unmittelbare oder mittelbare Beteiligung hlt; Asia Internet Group bezieht sich
auf Asia Internet Holding S. r.l. und die Rechtstrger, an denen sie eine unmittelbare oder
mittelbare Beteiligung hlt; Latin America Internet Group bezieht sich auf MKC Brillant
Services GmbH und die Rechtstrger, an denen sie eine unmittelbare oder mittelbare Beteiligung
hlt; und Middle East Internet Group bezieht sich auf Middle East Internet Holding S. r.l.
und die Rechtstrger, an denen sie eine unmittelbare oder mittelbare Beteiligung hlt.
(12) Die Kategorien Strategische Beteiligungen und Sonstige Investitionen enthalten sowohl
Anteile an Gesellschaften, die von uns gegrndet wurden, als auch Anteile, die zu dem Global
Founders Capital Fund Portfolio gehrten und im August 2014 eingebracht wurden. Die LPVs
fr diese eingebrachten Anteile entsprechen den ihnen in dem Einbringungsvertrag
zugeordneten Werten.
Wesentliche
nderungen der
Finanzlage und des
Betriebsergebnisses
des Emittenten.
Die nachstehenden wesentlichen nderungen der Erlsen der Emittentin sind in dem
zum 30. Juni 2014 endenden Sechsmonatszeitraum und in den Geschftsjahren 2013,
2012 und 2011 eingetreten.
Sechsmonatszeitrume zum 30. Juni 2014 und 2013 (konsolidiert)
Die Umsatzerlse des Konzerns haben sich um 43 % von 33,0 Mio. zum Ende des
Sechsmonatszeitraums zum 30. Juni 2013 auf 47,0 Mio. zum Ende des
Sechsmonatszeitraums zum 30. Juni 2014 gesteigert. Der Anstieg ist auf einen
Anstieg der Umsatzerlse aus der E-commerceGeschftsttigkeit und auf einen
Anstieg der Umsatzerlse aus Beratungsdienstleistungen zurckzufhren, von denen
annhernd alle gegenber Unternehmen aus unserem Netzwerk erbracht wurden.
Der Konzernperiodenberschuss / Konzernperiodenfehlbetrag verschlechterte sich um
35,6 Mio. von einem berschuss von 22,3 Mio. am Ende des Sechsmonatszeitraums
zum 30. Juni 2013 zu einem Fehlbetrag von 13,3 Mio. am Ende des
Sechsmonatszeitraums zum 30. Juni 2014. Diese Verschlechterung wurde berwiegend
durch eine Verringerung der Ertrge aus assoziierten Unternehmen und einen Anstieg
von sonstigen betrieblichen Aufwendungen und Personalaufwand verursacht.
Geschftsjahr 2013 (konsolidiert)
Die Umsatzerlse des Konzerns betrugen in 2013 72,5 Mio. Annhernd zwei
Drittel der Umsatzerlse wurden durch die E-Commerce-Aktivitten des Konzerns
generiert, hauptschlich durch drei unserer kleineren Unternehmen, die wir
vollkonsolidieren und durch unsere Aktivitten in Lateinamerika. Andere
Dienstleistungen trugen 36 % der Umsatzerlse in 2013 bei. Der Beitrag unserer
Marktplatzaktivitten an unseren Umsatzerlsen war in 2013 nicht wesentlich.
S-42
Der Konzernjahresberschuss fr das Jahr 2013 betrug 174,2 Mio., hauptschlich
aufgrund der Abspaltung der Zalando SE und der Auswirkungen von
Finanzierungsrunden auf die Ertrge von assoziierten Unternehmen.
Geschftsjahre 2013 und 2012 (nicht-konsolidiert)
Auf nicht-konsolidierter Basis sind die Umsatzerlse um 7 % gestiegen, von
24,3 Mio. in 2012 auf 26,0 Mio. in 2013. Dieser Anstieg ist in erster Linie auf
eine Erweiterung des Dienstleistungsspektrums der Emittentin gegenber den
Unternehmen im Netzwerk, einschlielich der Errichtung eines Corporate Centers,
zurckzufhren.
Der Nettojahresberschuss fr das Jahr verringerte sich um 61 % von 378,1 Mio. in
2012 auf 147,1 Mio. in 2013, in erster Linie aufgrund einer Verringerung des
berschusses aus Beteiligungen und eines Anstiegs von Personalaufwendungen.
Geschftsjahre 2012 und 2011 (nicht-konsolidiert)
Auf nicht-konsolidierter Basis sind die Umsatzerlse um mehr als das Dreifache
gestiegen, von 6,7 Mio. in 2011 auf 24,3 Mio. in 2012. Dieser Anstieg liegt auf
einer Linie mit dem generellen Wachstum des Geschfts der Emittentin und dem
Anstieg der Dienstleistungen, welche die Emittentin den Unternehmen im Netzwerk
bereitstellt, einschlielich des Dienstleistungsspektrums und der Zeit, die Mitarbeiter
und Dritte bei der Bereitstellung der Dienstleistungen verbringen.
Der Nettojahresberschuss fr das Jahr erhhte sich stark von 50,7 Mio. in 2011
auf 378,1 Mio. in 2012, in erster Linie aufgrund eines Anstiegs des berschusses
aus Beteiligungen und anderem Betriebsberschuss, der auf den Verkauf von Aktien
in Groupon, Inc. und Zalando SE zurckzufhren ist.
Neueste Entwicklungen
Unsere Unternehmen haben die Steigerung ihrer Umsatzerlse in dem zum 30. Juni
2014 endenden Sechsmonatszeitraum fortgesetzt. Die Entwicklung des EBITDA war
nicht einheitlich, da manche unserer Unternehmen ihre Investitionen in ihr
Wachstum fortgesetzt haben und dementsprechend einen Anstieg des negativen
EBITDA in absoluten Zahlen aufwiesen.
Die Emittentin ist Investitionsvereinbarungen mit der Philippine Long Distance
Telephone Company, die 333 Mio. als Barbetrag in die Emittentin eingebracht hat,
sowie mit der United Internet Ventures AG, die 333 Mio. als Barbetrag und eine
mit 102 Mio. bewertete Sacheinlage in die Emittentin eingebracht hat,
eingegangen. Schlielich haben mit Holtzbrinck verbundene Unternehmen, die eine
groe Anzahl an Beteiligungen an unseren Unternehmen und
Zwischenbeteiligungsgesellschaften halten, einige ihrer Beteiligungen als
Gegenleistungen fr Aktien der Emittentin eingebracht.
Im September 2014 schlossen wir mit den anderen Aktionren der von Bigfoot I,
Bigfoot II und BigCommerce gehaltenen Modeunternehmen eine Vereinbarung nach
der diese Unternehmen in einer auf Schwellenlnder fokussierten globalen
Modegruppe zusammengefasst werden sollen. Es wird erwartet, dass diese
Umgruppierung, die Dafiti, Lamoda, Zalora, Jabong und Namshi betrifft, im
Dezember 2014 abgeschlossen wird.
B.8 Ausgewhlte
wesentliche Pro-forma-
Finanzinformationen.
Entfllt. Die Emittentin hat keine Pro-forma-Finanzinformationen erstellt.
B.9 Gewinnprognosen oder
-schtzungen.
Entfllt. Die Emittentin zeigt keine Gewinnprognose oder Gewinnschtzung auf.
B.10 Beschrnkungen im
Besttigungsvermerk
zu den historischen
Finanzinformationen.
Entfllt. Die in diesem Prospekt enthaltenen geprften historischen
Finanzinformationen wurden jeweils mit uneingeschrnkten Besttigungsvermerken
versehen.
B.11 Ausreichen des
Geschftskapitals des
Emittenten zur
Erfllung bestehender
Anforderungen.
Entfllt. Die Emittentin ist der Ansicht, dass der Konzern in der Lage ist, alle
zumindest in den kommenden zwlf Monaten fllig werdenden
Finanzverbindlichkeiten zu erfllen.
S-43
C WERTPAPIERE
C.1 Art und Gattung der
angebotenen und/oder
zum Handel
zuzulassenden
Wertpapiere.
Auf den Inhaber lautende Stammaktien ohne Nennbetrag (Stckaktien), jeweils mit
einem anteiligen Betrag des Grundkapitals von 1,00 mit voller
Dividendenberechtigung ab dem 1. Januar 2014.
Wertpapierkennung. International Securities Identification Number (ISIN): DE000A12UKK6
Wertpapierkennnummer (WKN): A12UKK
Common Code: 111314110
Ticker Symbol: RKET
C.2 Whrung der
Wertpapieremission.
Euro.
C.3 Zahl der ausgegebenen
und voll eingezahlten
Aktien.
Zum Datum dieses Prospekts 120.102.255 auf den Inhaber lautende Stammaktien
ohne Nennbetrag (Stckaktien). Das Grundkapital der Emittentin ist vollstndig
eingezahlt.
Mit der Eintragung der IPO-Kapitalerhhung (wie in E.3 unten definiert) im
Handelsregister wird sich das ausstehende Grundkapital der Emittentin auf bis zu
153.043.432 belaufen und in bis zu 153.043.432 auf den Inhaber lautende
Stammaktien ohne Nennbetrag (Stckaktien) eingeteilt sein. Unter der Annahme,
dass die Greenshoe-Option (wie in E.3 unten definiert) vollumfnglich ausgebt
wird, wird die Emittentin weitere bis zu 4.941.176 auf den Inhaber lautende
Stammaktien ohne Nennbetrag (Stckaktien) aus dem Genehmigten Kapital 2014
(wie in E.3 unten definiert) ausgeben. In diesem Fall wird sich das ausstehende
Grundkapital der Emittentin auf bis zu 157.984.608 belaufen und in bis zu
157.984.608 auf den Inhaber lautende Stammaktien ohne Nennbetrag (Stckaktien)
eingeteilt sein. Alle Aktien werden vollstndig eingezahlt sein.
Nennwert pro Aktie. Jede Aktie der Emittentin reprsentiert einen anteiligen Betrag des Grundkapitals von
1,00.
C.4 Beschreibung der mit
den Wertpapieren
verbundenen Rechte.
Jede Aktie der Emittentin berechtigt zu einer Stimme in der Hauptversammlung der
Emittentin. Es bestehen keine Stimmrechtsbeschrnkungen. Die Aktien sind ab dem
1. Januar 2014 voll dividendenberechtigt.
C.5 Beschreibung aller
etwaigen
Beschrnkungen fr
die freie
bertragbarkeit der
Wertpapiere.
Entfllt. Die Aktien der Emittentin sind in bereinstimmung mit den gesetzlichen
Bestimmungen fr auf den Inhaber lautende Stammaktien frei bertragbar. Es
bestehen keine Verfgungsverbote oder -beschrnkungen hinsichtlich der
bertragbarkeit der Aktien der Emittentin.
C.6 Antrag auf Zulassung
der Wertpapiere zum
Handel an einem
geregelten Markt, und
Nennung aller
geregelten Mrkte, an
denen die Wertpapiere
gehandelt werden
sollen.
Entfllt. Die Zustimmung zur Einbeziehung der Aktien der Emittentin in den Handel
im nicht regulierten Markt (Entry Standard) an der Frankfurter Wertpapierbrse wird
fr den 8. Oktober 2014 erwartet. Die Aufnahme des Handels der Aktien der
Emittentin ist gegenwrtig fr den 9. Oktober 2014 geplant. Die Emittentin plant
derzeit, einen Antrag auf Zulassung ihrer Aktien zum Handel im regulierten Markt
der Frankfurter Wertpapierbrse mit gleichzeitiger Zulassung zu dessen Teilbereich
Prime Standard oder einem vergleichbaren Marktsegment einer anderen nationalen
oder internationalen Wertpapierbrse in den nchsten 18 bis 24 Monaten zu stellen,
vorausgesetzt die Gesellschaft erfllt die geltenden Zulassungspflichten.
C.7 Beschreibung der
Dividendenpolitik.
Die Emittentin beabsichtigt derzeit, alle verfgbaren Mittel und zuknftigen Ertrge,
sofern vorhanden, zurckzuhalten, um ihren Unternehmen mehr Eigenkapital zur
Verfgung zu stellen, ihre Geschftsttigkeit zu untersttzen und diese in die Lage zu
versetzen, wachsen zu knnen. Die Emittentin plant gegenwrtig nicht, in absehbarer
Zukunft Dividenden zu zahlen. Jede zuknftige Festsetzung von
Dividendenzahlungen wird in bereinstimmung mit dem anwendbaren Recht
getroffen und wird unter anderem vom Ergebnis der Geschftsttigkeit, der
finanziellen Lage, vertraglichen Beschrnkungen und dem Kapitalbedarf abhngen.
Die zuknftige Fhigkeit der Emittentin, Dividenden zahlen zu knnen, kann durch
die Bedingungen zuknftig ausgegebener Fremdkapitalinstrumente oder durch die
Ausgabe von Wertpapieren mit Vorzug beschrnkt sein.
S-44
D RISIKEN
D.1 Zentrale Angaben zu
den zentralen Risiken,
die dem Emittenten
oder seiner Branche
eigen sind.
Der Erwerb von Aktien der Emittentin ist mit Risiken verbunden. Daher sollten
Investoren bei der Entscheidung ber eine Investition in Aktien der Emittentin das
gesamte Dokument lesen und die nachfolgend beschriebenen Risiken und die
sonstigen in diesem Prospekt enthaltenen Informationen sorgfltig prfen. Der
Marktpreis der Aktien der Emittentin knnte bei der Verwirklichung jedes einzelnen
dieser Risiken fallen; in diesem Fall knnten die Anleger ihre Investition ganz oder
teilweise verlieren. Die folgenden Risiken knnten, allein oder zusammen mit
weiteren Risiken und Unwgbarkeiten, die der Emittentin derzeit nicht bekannt sind
oder die sie derzeit als unwesentlich erachtet, die Geschfts-, Vermgens-, Finanz-
und Ertragslage erheblich negativ beeintrchtigen.
Die Reihenfolge, in der die Risikofaktoren beschrieben werden, stellt weder eine
Aussage ber die Eintrittswahrscheinlichkeit noch ber die Bedeutung und Hhe der
Risiken oder das Ausma der mglichen Beeintrchtigung unserer Geschfts-,
Vermgens-, Finanz-, Kapitalfluss- oder Ertragslage oder des Wertes der
unmittelbaren oder mittelbaren Beteiligung der Emittentin an den Unternehmen dar.
Die hier genannten Risiken knnen einzeln oder kumulativ eintreten.
Risiken im Zusammenhang mit der Emittentin und unseren Unternehmen

Wir verffentlichen in diesem Prospekt Bewertungen, die von den Investitionen

in die Emittentin und unsere Unternehmen abgeleitet sind. Diese Bewertungen
geben mglicherweise nicht die vergangenen, gegenwrtigen oder zuknftigen
Zeitwerte der Emittentin oder der unserer Unternehmen wider und potenzielle
Anleger dieser Emission sollten auf diese Bewertungen nicht unangemessen
vertrauen.

Wir sind zu einer groen Unternehmensorganisation mit einer erheblichen

Anzahl von Unternehmen angewachsen, die in erster Linie in drei
Kernbereichen in 116 Lndern aktiv ist. Es besteht keine Garantie, dass wir
unsere bisherigen Wachstumsraten aufrechterhalten knnen oder dass wir
weiterhin in der Lage sind, Wachstum zu schaffen, einschlielich aufgrund
gestiegenen Wettbewerbs.

Nahezu alle unsere Unternehmen weisen eine begrenzte Historie ihrer

Geschftsttigkeit auf, machen derzeit bedeutende Verluste und verfgen ber
einen negativen operativen Kapitalfluss, erfordern einen hohen Kapitaleinsatz und
werden mglicherweise nie gewinnbringend oder zahlungsmittelgenerierend sein.

Unsere Geschftsttigkeit und unser Wachstum knnten beeintrchtigt oder

beendet werden, wenn es uns nicht gelingt, zustzliches Eigenkapital zu
beschaffen oder Finanzierungsmittel zu gnstigen Bedingungen aufzunehmen.

Einige Gesellschaftervertrge in Bezug auf unsere Unternehmen enthalten

Vorzugsregelungen fr Liquidationserlse, die zu einer unverhltnismigen
Verringerung des Wertes der unmittelbaren und mittelbaren Beteiligungen der
Emittentin an unseren Unternehmen fhren knnten, und Regelungen zum
Schutz von Drittinvestoren, wenn eine sptere Finanzierungsrunde zu einer
geringeren Bewertung durchgefhrt wird, was zu einer Verwsserung der
unmittelbaren und mittelbaren Beteiligungen der Emittentin an unseren
Unternehmen fhren knnte.

Da die Emittentin die meisten unserer Unternehmen nicht beherrscht, sind diese
in ihrer Geschftsttigkeit unabhngig und knnen Geschftsentscheidungen
treffen, die weder im Interesse der Emittentin noch in ihrem eigenem Interesse
liegen oder mit denen die Emittentin nicht einverstanden ist und die den Wert
ihrer unmittelbaren oder mittelbaren Beteiligungen schmlern knnten.

Aufgrund unserer weltweiten Expansion, insbesondere in eine groe Anzahl von

Schwellenlndern, sind wir politischen, wirtschaftlichen, rechtlichen sowie
sonstigen Risiken und Unsicherheiten ausgesetzt.

Unsere Zielmrkte sind mglicherweise nicht so interessant wie wir derzeit

annehmen und knnten sich entgegen unserer Vorstellungen entwickeln.

Wir werden auf unseren Zielmrkten aufgrund der beachtlichen operativen

Komplexitt, einschlielich der Aufrechterhaltung der wichtigen Logistik-,
Liefer- und Zahlungsinfrastruktur, insbesondere in unserem E-Commerce-
Bereich, die wir bewltigen mssen, mglicherweise nie Gewinne erzielen
knnen.
S-45

Die Emittentin wurde von Oliver Samwer, dem derzeitigen

Vorstandsvorsitzenden der Emittentin, mitgegrndet und ist weiterhin auf seine
Fhrung angewiesen. Interessenkonflikte zwischen Oliver Samwer und uns
knnen entstehen, und es kann keine Garantie dafr bernommen werden, dass
Oliver Samwer uns weiterhin seine Zeit und seinen Arbeitseinsatz widmet.

Es kann zu Interessenkonflikten zwischen uns und unseren gegenwrtigen oder

frheren Unternehmen oder auch zwischen unseren gegenwrtigen oder frheren
Unternehmen kommen.

Unser zuknftiges Wachstum wird von unserer Fhigkeit abhngen, zustzliche

bewhrte Internetgeschftskonzepte ausfindig zu machen, um auf deren
Grundlage unsere Unternehmen zu gestalten und diese Konzepte in erfolgreiche
Unternehmungen umzuwandeln.

Im Anschluss an die Emission beabsichtigt die Emittentin derzeit, ihre

Anlagestrategie dahingehend zu ndern, dass sie einen greren Teil ihres
Kapitals in unsere Unternehmen investiert und einen greren Anteil an unseren
Unternehmen ber einen lngeren Zeitraum hlt, wodurch sich das Risiko der
Emittentin erhht, wenn eine Gesellschaft insolvent wird. Dies kann zu einer
wesentlichen Verschlechterung des konsolidierten Ergebnisses der
Geschftsttigkeit der Emittentin fhren.

Unsere Unternehmen stehen mglicherweise unter starkem Wettbewerbsdruck

und knnten scheitern, wenn unsere Konkurrenten berlegene, internetbasierte
Angebote zur Verfgung stellen oder wenn wir uns nicht dem sich verndernden
Marktumfeld anpassen.

Jeder Schaden der Handelsmarken oder des Ansehens der Emittentin oder
unserer Unternehmen knnte unsere Beziehungen zu Unternehmen,
Verbrauchern und Anlegern wesentlich beeintrchtigen.

Mglicherweise werden wir zum Ziel wettbewerbswidriger, schikanser oder

sonstiger schdigender Verhaltensweisen von Seiten Dritter, einschlielich
Beschwerden bei Aufsichtsbehrden, nachteiligen Verffentlichungen in
Internet-Blogs sowie der ffentlichen Verbreitung bsartiger Bewertungen
unserer Geschftsttigkeit, wobei dies unser Ansehen schdigen knnte und
dazu fhren knnte, dass wir Marktanteile, Kunden und Umstze verlieren.

Um unsere Geschftsttigkeit und unsere Unternehmen zu betreiben und

auszubauen, sind wir auf talentierte, erfahrene und engagierte Mitarbeiter
angewiesen, und wenn es uns nicht gelingt, Mitarbeiter einzustellen, zu halten,
zu fhren und zu motivieren oder wenn unser neues Personal nicht die
erwarteten Leistungen erbringt, sind wir mglicherweise nicht in der Lage,
erfolgreich zu wachsen.

Wir sind mglicherweise nicht in der Lage unsere Unternehmenskultur

aufrechtzuerhalten, die bisher ein Schlssel zu unserem Erfolg gewesen ist.

Wir sind auf Rahmenvereinbarungen mit weltweit fhrenden

Technologieunternehmen angewiesen, die Werbe- und
Technologiedienstleistungen fr uns erbringen.

Viele unserer Unternehmen sind hinsichtlich ihrer Warenversorgung und der

Erbringung von Logistik- und anderen Dienstleistungen von Dritten abhngig,
denen die Erbringung in verlsslicher oder zufriedenstellender Weise misslingen
knnte.

Unsere Technologieplattform und unsere Infrastruktur sind fr uns

unverzichtbar, und jede Strung bei der Aufrechterhaltung einer
zufriedenstellenden Leistung unserer Technologieplattform und Infrastruktur
knnte unsere Geschftsttigkeit und unser Ansehen wesentlich beeintrchtigen.

Unsere Geschftsttigkeit knnte gestrt werden, wenn wir nicht in der Lage
sind, unsere Technologieplattform auszubauen, um der gestiegenen Nachfrage
Rechnung zu tragen.

Durch Versuche Dritter, unsere Netzwerk- oder Datensicherheitsmanahmen zu

umgehen oder durch das Vorhandensein etwaiger sonstiger Sicherheitslcken
knnten unser Ansehen geschdigt und unsere Geschftsttigkeit beeintrchtigt
werden.
S-46

Der Emittentin wird es mglicherweise nicht gelingen, ein wirksames System

unternehmensinterner Kontrollen hinsichtlich der Finanzberichterstattung
einzufhren oder aufrechtzuerhalten und die Finanzabteilung der Emittentin
knnte nicht ausreichen, um die Bedrfnisse unserer wachsenden
Geschftsttigkeit zu erfllen.

Die Geschftsergebnisse der Emittentin sind mglicherweise unbestndig, was

zu Schwankungen des Aktienkurses der Emittentin fhren kann.

Potenzielle Anleger dieses Angebots mssen ihre Anlageentscheidung auf Basis

begrenzter vergangenheitsbezogener Informationen treffen, die das
Geschftsergebnis unserer nicht konsolidierten Unternehmen nicht
widerspiegeln.

Die Emittentin hat keine belastbaren Finanzzahlen fr eine Anzahl von

Unternehmen in ihrem Unternehmensnetzwerk und andere Beteiligungen.

Die Emittentin geht davon aus, dass sie ihre Rechnungslegungsmethode von den
deutschen Grundstzen ordnungsgemer Rechnungslegung (HGB) auf
internationale Rechnungslegungsvorschriften (IFRS) umstellen wird, wobei dies
zu nachteiligen buchhalterischen Sonderbelastungen oder -Auswirkungen fhren
und ihre berichteten Geschftsergebnisse beeintrchtigen kann.

Sollten wir nicht in der Lage sein, unser Geschftsergebnis genau und
zuverlssig mittels bestimmter Leistungskennzahlen zu bewerten, kann unsere
Fhigkeit, angemessene Geschftsstrategien zu bestimmen und umzusetzen,
beeintrchtigt sein.
Rechtliche und behrdliche Risiken

Staatliche Regulierung des Internets sowie des elektronischen Handels bildet sich
derzeit immer weiter heraus. Sie knnte sich in einer fr uns nachteiligen Weise
ndern und es knnte uns misslingen, diese Vorschriften einzuhalten und nachteilige
nderungen oder unser Unvermgen, diese Regulierungsvorschriften einzuhalten,
knnen unserer Geschftsttigkeit, unserer finanziellen Situation, unseren
Kapitalflssen, unserem Betriebsergebnis und dem Wert der unmittelbaren und
mittelbaren Beteiligungen der Emittentin an unseren Unternehmen erheblich schaden.

Aufgrund einer Geschftsttigkeit in 116 Lndern sind wir gehalten, zahlreiche

komplexe und manchmal widersprchliche gesetzliche und behrdliche
Vorgaben einzuhalten.

Unsere Unternehmen ben ihre Geschftsttigkeit in einigen Lndern aus, in

denen Korruption als weitverbreitet gilt, wobei wir dem Risiko von
Erpressungen und der Verletzung von Gesetzen zur Verhinderung der
Korruption ausgesetzt sind.

Unsere E-Commerce-Unternehmen knnten sich gegenber ihren Kunden

haftbar machen und Kunden verlieren, wenn ihre Produkte oder
Dienstleistungen Fehler oder Mngel aufweisen oder in ihren angebotenen
Diensten Strungen vorkommen.

Unsere Marktplatzunternehmen werden mglicherweise Gegenstand von

Behauptungen und Gerichtsverfahren hinsichtlich des Inhalts ihrer Internetseiten
oder hinsichtlich Vorwrfen, dass die Eintragungen auf ihren Internetseiten
raubkopiert, geflscht oder rechtswidrig sind.

Unsere Finanztechnologieunternehmen unterliegen zahlreichen und strengen

Vorschriften in den Rechtsordnungen, in denen sie ihre Geschfte betreiben.

Wir werden mglicherweise Gegenstand von Gerichtsverfahren, die unsere

Geschftsttigkeit stren oder schdigen knnen.

Es knnte uns nicht gelingen, unsere Rechte an geistigem Eigentum angemessen

zu schtzen oder uns knnte vorgeworfen werden, die Rechte an geistigem
Eigentum Dritter verletzt zu haben.

Da wir eine groe Anzahl von sehr hnlichen Gesellschaftervertrgen

verwenden, wre wenn ein Gericht einen oder mehrere unserer
standardisierten Gesellschaftervertrge fr ungltig erklren wrde die
Wirksamkeit smtlicher unserer Gesellschaftervertrge gefhrdet; zudem halten
wir mglicherweise nicht alle Regelungen aller unserer Gesellschaftsvertrge
und anderer Vertrge ein.
S-47
Steuerrisiken

Als ein schnell wachsendes und international expandierendes

Unternehmensnetzwerk, das bisher eine ganze Reihe von bedeutsamen Exits,
Fusionen und Umstrukturierungen in schneller Folge durchlebt hat, sehen wir
uns mit ungeklrten Steuerfragen konfrontiert, und es ist fr uns schwieriger als
fr etablierte Unternehmen, mgliche Steuerrisiken einzuschtzen, die von
ungeprften Geschftsjahren herrhren. Daher knnte es in unserem Fall
wahrscheinlicher sein, dass wir erhebliche zustzliche Steuern im Anschluss an
zuknftige Steuerprfungen und laufende Steuerveranlagungen zu zahlen haben.

Sollten die Steuerbehrden davon ausgehen, dass die Emittentin als

Finanzunternehmen einzustufen und die Dividendenertrge und
Veruerungsgewinne als kurzfristige Eigenhandelsgewinne zu qualifizieren
sind, wren die seit 2009 erhaltenen Dividendenertrge und
Veruerungsgewinne vollstndig steuerpflichtig.

Einige unserer grenzberschreitenden Geschftstransaktionen knnten

nachteilige unvorhergesehene steuerliche Folgen auslsen.

Die Abspaltung von Zalando und die anschlieende Rcknahme der von der
Rocket Beteiligungs GmbH an der Emittentin gehaltenen Aktien knnten eine
erhebliche zustzliche steuerliche Belastung zur Folge haben.

Der organisatorische Aufbau unserer Abteilung zur Einhaltung der

Steuervorschriften entsprach mglicherweise nicht in jedem Stadium unserer
Entwicklung den wachsenden Anforderungen eines weltweit expandierenden
Unternehmens.

Wir knnten zur Zahlung zustzlicher Steuern gezwungen sein, wenn unsere
Verrechnungspreise innerhalb des Konzerns nicht den vorherrschenden
Marktpreisen entsprechen. Sollten unsere Unternehmen nicht in der Lage sein,
den umsatzsteuerlichen Anforderungen vollstndig nachzukommen, knnte dies
nachteilige steuerliche Auswirkungen zur Folge haben, einschlielich der
Verpflichtung zur Rckzahlung von Vorsteuer.

Wir unterliegen den Steuergesetzen und -vorschriften in Deutschland und

zahlreichen weiteren Lndern. Unsere Steuerbelastung knnte sich als Folge
einer zuknftigen steuerlichen Behandlung von Dividendenzahlungen, dem
Ausschluss der Abzugsfhigkeit von Zinszahlungen, gegenwrtigen oder
zuknftigen Steuerveranlagungen oder Gerichtsverfahren, die auf nderungen
inlndischer oder auslndischer Steuergesetze und
Doppelbesteuerungsabkommen oder nderungen in deren Anwendung oder
Auslegung zurckzufhren sind, erhhen.

Durch Vernderungen in der Eigentmerstruktur unserer Unternehmen sind wir

mglicherweise nicht in der Lage laufende steuerliche Verluste, Verlustvortrge
und Zinsvortrge zu nutzen.
D.3 Zentrale Angaben zu
den Risiken, die den
Wertpapieren eigen
sind
Risiken in Verbindung mit den Aktien und dem Angebot
Der Marktpreis der Aktien der Emittentin knnte bei der Verwirklichung jedes
einzelnen dieser Risiken fallen; in diesem Fall knnten die Anleger ihre Investition
ganz oder teilweise verlieren.

Es besteht kein Markt fr die Aktien der Emittentin und die Entwicklung eines
aktiven Handels knnte durch die vorgesehene Einbeziehung in das
Untersegment Entry Standard eingeschrnkt werden.

Der Kurs und das Handelsvolumen der Aktien der Emittentin knnten
wesentlich von dem Angebotskurs abweichen und wesentlich schwanken.

Die Emittentin wird ber einen weiten Ermessenspielraum hinsichtlich der

Verwendung des Emissionserlses verfgen. Sollte die Emittentin nicht in der
Lage sein den Erls wirkungsvoll zu verwenden, knnte der Aktienkurs der
Emittentin sinken.

Die Emittentin plant gegenwrtig nicht, und wird mglicherweise nicht in der
Lage sein, in absehbarer Zukunft Dividenden zu zahlen.

Als Ergebnis des Angebots wird die Emittentin zustzliche

Verwaltungsanforderungen einhalten mssen, einschlielich der Verpflichtung
zur erstmaligen Verffentlichung von Halbjahreszwischenabschlssen.
S-48

Etwaige zuknftige Verkufe der Aktien der Emittentin durch unsere

bestehenden Aktionre, einschlielich der sogenannten Cornerstone Investoren,
knnten den Kurs der Aktien der Emittentin senken, und die Interessen der
bestehenden Aktionre der Emittentin knnten von den Interessen der Emittentin
abweichen oder diesen entgegenstehen.

Zuknftige Kapitalmanahmen knnten zu einer wesentlichen Verwsserung,

d. h. einer Wertminderung der Aktien und der Kontrollrechte der Anteile der
bestehenden Aktionre an der Emittentin fhren. Zuknftige Emissionen von
Schuldtiteln oder Dividendenpapieren knnten den Kurs der Aktien der
Emittentin beeintrchtigen.
E ANGEBOT
E.1 Gesamtnettoerlse. Der Emittentin flieen die Erlse aus der Emission der Neuen Aktien (wie unter E.3
definiert) und, sofern die Greenshoe-Option (wie unter E.3 definiert) ausgebt wird,
aus dem Verkauf der Greenshoe-Option zu, jeweils abzglich der Gebhren und
Provisionen.
Unter der Annahme, dass alle Neuen Aktien (wie unter E.3 definiert) platziert
werden, erwartet die Emittentin am unteren Ende, in der Mitte und am oberen Ende
der Preisspanne, die fr das Angebot der Angebotsaktien festgesetzt wird
(Preisspanne), Bruttoerlse von ungefhr 1.169,4 Mio., 1.284,7 Mio. und
1.400,0 Mio.; die Nettoerlse betragen ungefhr 1.123,5 Mio., 1.235,5 Mio.
und 1.347,5 Mio., jeweils am unteren Ende, in der Mitte und am oberen Ende der
Preisspanne.
Unter der Annahme, dass die Greenshoe-Option (wie unter E.3 definiert) vollstndig
ausgebt wird und alle Angebotsaktien (wie unter E.3 definiert) platziert werden,
erwartet die Emittentin am unteren Ende, in der Mitte und am oberen Ende der
Preisspanne Bruttoerlse von ungefhr 1.344,8 Mio., 1.477,4 Mio. und 1.610,0
Mio.; die Nettoerlse betragen ungefhr 1.293,0 Mio., 1.421,7 Mio. und
1.550,4 Mio., jeweils am unteren Ende, in der Mitte und am oberen Ende der
Preisspanne.
Geschtzte
Gesamtkosten der
Emission/des
Angebots,
einschlielich der
geschtzten Kosten, die
dem Anleger vom
Emittenten oder
Anbieter in Rechnung
gestellt werden.
Die durch das Angebot und die Brsennotierung des gesamten Grundkapitals der
Emittentin entstehenden Kosten werden sich voraussichtlich auf insgesamt ungefhr
12,5 Mio. (ausgenommen Konsortial- und Platzierungsprovisionen, die an die
Konsortialbanken gezahlt werden wie in dem nchsten Absatz beschrieben,) belaufen
und werden von der Emittentin getragen.
Unter der Annahme eines Angebotspreis am unteren Ende, in der Mitte und am
oberen Ende der Preisspanne der Platzierung der maximalen Anzahl von
Angebotsaktien (wie unter E.3 definiert), der vollstndigen Ausbung der
Greenshoe-Option (wie unter E.3 definiert) und der vollstndigen Zahlung der im
Ermessen stehenden Gebhr von ungefhr 20,2 Mio., 22,2 Mio. bzw. 24,2 Mio.
am unteren Ende, in der Mitte und am oberen Ende der Preisspanne, liegt die den
Konsortialbanken zustehende Provision bei 39,3 Mio., 43,2 Mio. bzw.
47,1 Mio.
Basierend auf den Annahmen in dem vorhergehenden Absatz belaufen sich die
Gesamtkosten, die von der Emittentin fr das Angebot und die Brsennotierung
getragen werden, auf ungefhr 51,8 Mio., 55,7 Mio. bzw. 59,6 Mio., woraus
sich Nettoemissionserlse von 1.293,0 Mio., 1.421,7 Mio. bzw. 1.550,4 Mio.
ergeben.
Anlegern werden von der Emittentin oder den Konsortialbanken keine Kosten in
Rechnung gestellt.
E.2a Grnde fr das
Angebot.
Die Emittentin beabsichtigt, (i) mit dem Verkauf der Neuen Aktien das Wachstum
und die Entwicklung ihrer Geschfte zu finanzieren und (ii) durch die Einbeziehung
der Aktien der Emittentin in das nichtregulierte Marktsegment der Frankfurter
Wertpapierbrse (Entry Standard) einen besseren Zugang zum Kapitalmarkt zu
erhalten.
Zweckbestimmung der
Erlse, geschtzte
Nettoerlse.
Die Emittentin erwartet gegenwrtig einen Gesamtnettoerls aus dem Angebot zwischen
1.293,0 Mio. und 1.550,4 Mio. (unter der Annahme, dass alle Angebotsaktien
platziert werden und die Greenshoe-Option vollstndig ausgebt wird). Die Emittentin
plant gegenwrtig, ungefhr 400 Mio. bis 500 Mio. von den Erlsen aus dem
Angebot in proven winners zu investieren, um ihre Beteiligung an diesen zu erhhen.
Die Emittentin plant gegenwrtig, 250 Mio. bis 350 Mio. fr
Eigenkapitalinvestitionen in ausgesuchte emerging stars, einschlielich insbesondere
foodpanda, Helpling und Lendico, zu investieren, um langfristiger eine
S-49
Mehrheitsbeteiligung aufrechtzuhalten oder zu erreichen und deren Angewiesenheit auf
externe Finanzierungsquellen zu reduzieren. Darber hinaus plant die Emittentin
gegenwrtig, 600 Mio. bis 700 Mio. in Konzepte und neue Gesellschaften zu
investieren, um sich in die Position zu versetzen, die Finanzierung neuer Gesellschaften
erheblich ber die Grndungsfinanzierung ausweiten und eine langfristige
Mehrheitsbeteiligung aufrechterhalten zu knnen.
Die Emittentin wird die Erlse aus dem Angebot erhalten, die aus dem Verkauf der
Neuen Aktien (wie unter E.3 definiert) und, falls und in dem Umfang wie die
Greenshoe-Option (wie unter E.3 definiert) ausgebt wird, aus der Ausbung der
Greenshoe-Option (wie unter E.3 definiert) erhalten, jeweils abzglich der Gebhren
und Provisionen.
Unter der Annahme, dass alle Neuen Aktien (wie unter E.3 definiert)
(32.941,177 Aktien) platziert werden, erwartet die Emittentin am unteren Ende, in
der Mitte und am oberen Ende der Preisspanne Bruttoerlse von ungefhr
1.169,4 Mio., 1.284,7 Mio. und 1.400,0 Mio.; die Nettoerlse betragen
ungefhr 1.123,5 Mio., 1.235,5 Mio. und 1.347,5 Mio., jeweils am unteren
Ende, in der Mitte und am oberen Ende der Preisspanne.
Unter der Annahme, dass die Greenshoe-Option (wie unter E.3 definiert) vollstndig
ausgebt wird und alle Angebotsaktien (wie unter E.3 definiert) platziert werden,
erwartet die Emittentin am unteren Ende, in der Mitte und am oberen Ende der
Preisspanne Bruttoerlse von ungefhr 1.344,8 Mio., 1.477,4 Mio. und
1.610,0 Mio.; die Nettoerlse betragen ungefhr 1.293,0 Mio., 1.421,7 Mio.
und 1.550,4 Mio., jeweils am unteren Ende, in der Mitte und am oberen Ende der
Preisspanne.
Angebotskonditionen
E.3 Beschreibung der
Angebotskonditionen.
Das Angebot (einschlielich eventueller Mehrzuteilungen) bezieht sich auf den
Verkauf von 37.882.353 Angebotsaktien (wie untenstehend definiert) ohne
Nennbetrag (Stckaktien) mit einem anteiligen Betrag am Grundkapital von jeweils
1,00 und mit voller Dividendenberechtigung ab dem 1. Januar 2014 und setzt sich
zusammen aus:

32.941.177 neu emittierten auf den Inhaber lautenden Stammaktien ohne

Nennbetrag (Stckaktien) aus einer Kapitalerhhung (die IPO-
Kapitalerhhung) gegen Bareinlage unter Ausschluss der Bezugsrechte fr
die bestehenden Aktionre, die von dem Vorstand der Emittentin unter
Verwendung des durch Beschluss der auerordentlichen Hauptversammlung
vom 22. August 2014 beschlossenen genehmigten Kapitals (das Genehmigte
Kapital 2014) voraussichtlich am 6. Oktober 2014 beschlossen und am selben
Tag von einem Ausschuss des Aufsichtsrats der Gesellschaft genehmigt wird
(die Neuen Aktien) und

4.941.176 bestehenden auf den Inhaber lautenden Stammaktien ohne

Nennbetrag (Stckaktien) aus dem Bestand der GFG in Zusammenhang mit
einer mglichen Mehrzuteilung (die Mehrzuteilungsaktien und zusammen
mit den Neuen Aktien, die Angebotsaktien).
Das Angebot besteht aus einem ffentlichen Angebot der Angebotsaktien in
Deutschland und im Groherzogtum Luxemburg (Luxemburg) sowie
Privatplatzierungen der Angebotsaktien in einigen anderen Jurisdiktionen auerhalb
Deutschlands und des Groherzogtums Luxemburg. In den Vereinigten Staaten von
Amerika werden die Angebotsaktien zum Verkauf an qualifizierte institutionelle
Anleger gem Rule 144A (Rule 144A) nach dem U.S. Securities Act von 1933 in
der derzeit gltigen Fassung (Securities Act) und an qualifizierte Kufer gem
dem U.S. Investment Company Act von 1940 in der derzeit gltigen Fassung
(Investment Company Act) angeboten. Auerhalb der Vereinigten Staaten von
Amerika werden die Aktien an nicht-US Personen unter Berufung auf die Befreiung
von den Registrierungserfordernissen gem der Regulation S (Regulation S) nach
dem Securities Act angeboten.
Angebotszeitraum
Der Angebotszeitraum, innerhalb dessen Anleger ihre Kaufangebote fr die Aktien
abgeben knnen, beginnt voraussichtlich am 24. September 2014 und endet
voraussichtlich am 7. Oktober 2014 um 12:00 Uhr MESZ (Mitteleuropische
Sommerzeit) fr Privatanleger (natrliche Personen) und um 16:00 Uhr MESZ
(Mitteleuropische Sommerzeit) fr institutionelle Anleger (Angebotsfrist).
Privatanleger (natrliche Personen) knnen ihre Kaufangebote fr das ffentliche
S-50
Angebot in der Bundesrepublik Deutschland und dem Groherzogtum Luxemburg
whrend des Angebotszeitraums in den Filialen der Konsortialbanken abgeben.
Kaufangebote mssen in vollen Eurobetrgen oder Eurocentbetrgen von 25, 50 oder
75 Eurocent abgegeben werden. Mehrfachzeichnungen sind zulssig.
Preisspanne und Platzierungspreis
Die Preisspanne, innerhalb derer Kaufangebote abgegeben werden drfen, liegt bei
35,50 bis 42,50 je Angebotsaktie.
nderung der Angebotskonditionen
Die Emittentin, gemeinsam mit den Joint Global Coordinators behlt sich vor die
Gesamtanzahl der Angebotsaktien zu erhhen oder abzusenken, das obere Limit und/
oder untere Limit der Preisspanne zu erhhen oder abzusenken und/oder den
Angebotszeitraum zu verlngern oder zu verkrzen. nderungen der Anzahl der
Angebotsaktien, der Preisspanne oder eine Verlngerung beziehungsweise
Verkrzung des Angebotszeitraums haben keinen Einfluss auf die Gltigkeit bereits
abgegebener Kaufangebote. Fr den Fall, dass solch eine nderung zu einer
Verffentlichung eines Nachtrags zu diesem Prospekt fhrt, haben Anleger, die
Kaufangebote vor der Verffentlichung eines Nachtrages abgegeben haben, gem
Wertpapierprospektgesetz das Recht, diese Angebote innerhalb von zwei Werktagen
nach Verffentlichung des Nachtrages zu widerrufen. Anstatt ihre Kaufangebote zu
widerrufen, knnen Anleger diese Kaufangebote, die vor Verffentlichung des
Nachtrages abgegeben wurden, auch ndern oder neue beschrnkte oder
unbeschrnkte Kaufangebote innerhalb von zwei Werktagen nach Verffentlichung
des Nachtrages abgeben. Sollten die Bedingungen dieses Angebots gendert werden,
wird dies in elektronischen Medien (wie zum Beispiel Reuters oder Bloomberg)
bekannt gegeben und, soweit vom Wertpapierprospektgesetz oder den Allgemeinen
Geschftsbedingungen der Deutsche Brse AG fr den Freiverkehr an der
Frankfurter Wertpapierbrse verlangt, als Verffentlichung von wesentlichen
Informationen ber elektronisch betriebene Informationssysteme und auf der
Webseite der Emittentin sowie als Nachtrag zu diesem Prospekt verffentlicht. Eine
individuelle Benachrichtigung der Anleger, die Kaufangebote abgegeben haben,
erfolgt nicht. Unter bestimmten Umstnden knnen die Joint Global Coordinators, im
Namen der Konsortialbanken, vom bernahmevertrag, welcher am 23. September
2014 mit der Emittentin abgeschlossen wurde (der bernahmevertrag),
zurcktreten und zwar auch noch nach der Aufnahme des Brsenhandels der Aktien
der Emittentin im Freiverkehr der Frankfurter Wertpapierbrse.
Lieferung und Abrechnung
Die Angebotsaktien werden voraussichtlich am 10. Oktober 2014 gegen Zahlung des
Angebotspreises geliefert. Die Angebotsaktien werden den Aktionren als
Miteigentumsanteile an der Globalurkunde zur Verfgung gestellt
Cornerstone Investoren
Im Rahmen des Angebots werden Angebotsaktien in einem Gesamtinvestitionsbetrag
von 582,5 Mio. von Scottish Mortgage Investment Trust Plc, J.P. Morgan
Securities LLC, Discovery Global Opportunity Master Fund, Ltd., FAR Global
Private Markets Ltd., Makshaff Trading Investments Company Limited und Credit
Suisse AG (gemeinsam die Cornerstone Investoren). Die Cornerstone Investoren
haben sich vorbehaltlich bestimmter Kndigungsrechte und unter der Bedingung des
Vollzugs des Angebots verpflichtet, Angebotsaktien zum Angebotspreis zu
erwerben. Jedem Cornerstone Investor ist eine vollstndige Zuteilung derjenigen
Anzahl an Angebotsaktien zugesagt worden, fr die er ein bindendes Kaufangebot
abgegeben hat.
Stabilisierung, Mehrzuteilung und Greenshoe-Option
Im Zusammenhang mit dem Angebot der Angebotsaktien handelt Berenberg oder mit
ihr verbundene Unternehmen, fr Rechnung der Konsortialbanken, als
Stabilisierungsmanager und kann in bereinstimmung mit den rechtlichen
Bestimmungen ( 20a Abs. 3 Wertpapierhandelsgesetz in Verbindung mit der
Verordnung (EG) Nr. 2273/2003 vom 22. Dezember 2003) Mehrzuteilungen vornehmen
und Stabilisierungsmanahmen ergreifen, um den Marktpreis der Aktien der Emittentin
zu sttzen und um dadurch einem etwaigen Verkaufsdruck entgegenzuwirken.
Der Stabilisierungsmanager ist nicht zu Stabilisierungsmanahmen verpflichtet. Es
kann daher nicht zugesichert werden, dass Stabilisierungsmanahmen ergriffen
werden. Sollten Stabilisierungsmanahmen ergriffen werden, knnen diese jederzeit
S-51
ohne Vorankndigung beendet werden. Solche Manahmen knnen ab dem
Zeitpunkt der Aufnahme des Brsenhandels der Aktien der Emittentin vorgenommen
werden und mssen sptestens am dreiigsten Kalendertag nach diesem Zeitpunkt
beendet sein (der Stabilisierungszeitraum).
Diese Manahmen knnen dazu fhren, dass der Brsenkurs der Aktien der
Emittentin hher ist, als es ohne solche Manahmen der Fall gewesen wre. Des
Weiteren kann sich vorbergehend ein Brsenkurs auf einem Niveau ergeben, das
nicht von Dauer ist.
Bei mglichen Stabilisierungsmanahmen knnen Anlegern zustzlich zu den
angebotenen Aktien der Emittentin bis zu 4.941.176 zustzliche Aktien der
Emittentin (Mehrzuteilungsaktien) als Teil der Zuteilung der zu platzierenden Aktien
zugeteilt werden (Mehrzuteilung). Zum Zwecke einer mglichen Mehrzuteilung
werden dem Stabilisierungsmanager fr Rechnung der Konsortialbanken bis zu
4.941.176 Aktien aus dem Aktienbesitz der GFG in Form eines Wertpapierdarlehens
zur Verfgung gestellt. Dabei wird die Anzahl der Aktien 15 % der Neuen Aktien
nicht bersteigen. Zudem wird die Emittentin den Konsortialbanken eine Option zum
Erwerb von bis zu 4.941.176 zustzlichen Aktien zum Angebotspreis abzglich der
vereinbarten Provisionen gewhren (Greenshoe-Option), diese wrden
ausschlielich zur Erfllung der Rcklieferungsverpflichtungen gem dem
Wertpapierdarlehen zwischen dem Stabilisierungsmanager und der GFG von der
Emittentin aus dem Genehmigten Kapital 2014 ausgegeben. Diese Option endet 30
Kalendertage nach dem ersten Handelstag.
Der Stabilisierungsmanager ist berechtigt, die Greenshoe-Option in dem Ma der
ursprnglichen Mehrzuteilung auszuben. Dabei ist der Aktienbetrag um die Anzahl
der Aktien zu vermindern, die von dem Stabilisierungsmanager am Tag der
Ausbung der Greenshoe-Option gehalten wurden und die von diesem im
Zusammenhang mit Stabilisierungsmanahmen erworben wurden.
Bei Beendigung des Stabilisierungszeitraums wird innerhalb einer Woche in
verschiedenen Presseerzeugnissen, die im gesamten Europischen Wirtschaftsraum
vertrieben werden, eine Mitteilung, ob es Stabilisierungsmanahmen gab, ber
Beginn und Ende der Stabilisierungsmanahmen sowie ber die Preisspanne dieser
Manahmen verffentlicht. Letztere Information wird fr jeden Termin mitgeteilt, zu
dem Preisstabilisierungsmanahmen durchgefhrt wurden. Die Ausbung der
Greenshoe-Option, der zeitliche Ablauf der Ausbung und die Anzahl und Art der
betroffenen Aktien werden unverzglich in derselben Weise angekndigt werden.
E.4 Beschreibung aller fr
die Emission/das
Angebot wesentlichen,
auch kollidierenden
Interessen.
Im Zusammenhang mit dem Angebot und der Einbeziehung in den Handel der
Aktien der Emittentin befinden sich die Konsortialbanken in einer vertraglichen
Beziehung mit der Emittentin.
Die Konsortialbanken handeln im Auftrag der Emittentin bei dem Angebot und
koordinieren dessen Strukturierung und Durchfhrung. Des Weiteren wurde
Berenberg als designierter Brsenhndler fr die Aktien der Emittentin und Deutsche
Bank Aktiengesellschaft als Zahlstelle und Aktienbuchfhrer ernannt. Nach
erfolgreichem Abschluss des Angebots erhalten die Konsortialbanken eine Provision.
Die Konsortialbanken und die mit ihnen verbundenen Unternehmen unterhalten
gegenwrtig und mglicherweise auch von Zeit zu Zeit in der Zukunft
Geschftsbeziehungen (einschlielich Kredit- und andere Finanzierungsaktivitten)
mit dem Konzern und den bestehenden Aktionren oder knnen im Rahmen der
gewhnlichen Geschftsttigkeit Dienstleistungen fr den Konzern und die
bestehenden Aktionre erbringen.
Im Zusammenhang mit dem Angebot, knnen die Konsortialbanken und alle mit
ihnen verbundenen Unternehmen auf eigene Rechnung Angebotsaktien erwerben und
diese auf eigene Rechnung halten, kaufen oder verkaufen und diese Angebotsaktien
auch auerhalb dieses Angebots anbieten oder verkaufen. Dementsprechend sollten
Bezugnahmen in dem Prospekt auf das Angebot oder die Platzierung von
Angebotsaktien als einschlielich eines Angebots oder einer Platzierung von
Angebotsaktien an eine der Konsortialbanken oder deren entsprechende und in ihrer
Eigenschaft als solche handelnde verbundene Unternehmen gelesen werden. Zudem
knnen bestimmte Konsortialbanken und ihre verbundenen Unternehmen finanzielle
Vereinbarungen (einschlielich Swaps) mit Investoren abschlieen, im
Zusammenhang mit denen die Konsortialbanken (oder ihre verbundenen
Unternehmen) von Zeit zu Zeit Angebotsaktien erwerben, halten oder veruern.
Keine der Konsortialbanken plant, den Umfang irgendwelcher Investitionen oder
Geschfte dieser Art offenzulegen, soweit dies nicht aufgrund von gesetzlichen oder
regulatorischen Vorschriften erforderlich ist.
S-52
Als Teil des Angebots wird J.P. Morgan Securities LLC vorbehaltlich bestimmter
Kndigungsgrnde und des Eintritts der aufschiebenden Bedingung des Closing,
Angebotsaktien in einen Gesamtvolumen von 100 Million erwerben.
Whrend die bestehenden Aktionre der Emittentin nicht an dem Angebot
teilnehmen werden, profitieren sie von der Brsennotierung der Aktien der
Emittentin, da sie handelbare Wertpapiere halten werden.
E.5 Name der Person/des
Unternehmens, die/das
das Wertpapier zum
Verkauf anbietet.
Die Aktien werden von den Konsortialbanken (wie oben unter A.1 definiert) zum
Verkauf angeboten.
Bei Lock-up-
Vereinbarungen die
beteiligten Parteien
und die Lock-up-Frist.
In dem Aktienbernahmevertrag hat sich die Emittentin gegenber jeder der
Konsortialbanken verpflichtet, soweit dies gesetzlich zulssig ist, dass sie nicht ohne
die vorherige schriftliche Zustimmung der Joint Global Coordinators (wobei die
Erteilung dieser Zustimmung nicht ohne vernnftigen Grund verweigert oder
verzgert werden darf), innerhalb eines Zeitraums von sechs Monaten nach dem
ersten Handelstag der Aktien der Emittentin (derzeit fr den 9. Oktober 2014
erwartet):

eine Kapitalerhhung aus genehmigtem Kapital ankndigt oder durchfhrt,

ihren Aktionren eine Kapitalerhhung vorschlgt, oder

die Ausgabe von Finanzinstrumenten mit Wandlungs- oder Optionsrechte in

Bezug auf Aktien der Emittentin ankndigen, ausfhren oder ihren Aktionren
vorschlagen oder andere Geschfte mit wirtschaftlich vergleichbarer Wirkung.
Die vorangegangenen Ausfhrungen gelten nicht fr die IPO-Kapitalerhhung und die
Kapitalerhhung im Zusammenhang mit einer Ausbung der Greenshoe Option.
Die bestehenden Aktionre haben sich durch separate Lock-up Agreements
verpflichtet, nicht ohne vorherige schriftliche Einverstndniserklrung der
Konsortialbanken (welche nicht ungerechtfertigt verweigert werden darf), vor Ablauf
einer zwlf-Monatsfrist nach dem ersten Handelstag der Aktien der Emittentin an der
Frankfurter Wertpapierbrse (welcher aktuell fr den 9. Oktober 2014 geplant ist) ihre
Aktien oder Wertpapiere der Emittentin zu verkaufen, zu verteilen, zu verpfnden
(ohne Eigentumsbertragung), zu bertragen oder in sonstiger Weise zu veruern. Es
gelten dieselben Regeln fr Geschfte mit wirtschaftlich vergleichbarer Wirkung.
Die vorstehend genannten Lock-up Einschrnkungen gelten nicht fr (i) den Kauf,
Verkauf und die bertragung von Aktien der Emittentin im Rahmen eines
bernahmeangebots fr die Emittentin, (ii) die auerbrsliche bertragung von
Aktien der Emittentin durch die bestehenden Aktionre auf ihre
Tochtergesellschaften, (iii) die Verteilung von Aktien der Emittentin durch diese
Aktionre an ihre Aktionre, Mitglieder oder Partner durch Sachdividenden, unter
der Voraussetzung, dass der Empfnger dieser bertragung, sich schriftlich dazu
verpflichtet, die Einschrnkungen, die fr die bestehenden Aktionre der Emittentin
gelten fr den noch ausstehenden Zeitraum des Lock-up Agreements einzuhalten.
S-53
E.6 Betrag und
Prozentsatz der aus
dem Angebot
resultierenden
unmittelbaren
Verwsserung.
Das Angebot beinhaltet die Begebung neuer Aktien.
Die verwssernde Wirkung des Angebots ist in der untenstehenden Tabelle
dargestellt, welche den Betrag, um den der Angebotspreis am unteren Ende, in der
Mitte und am oberen Ende der Preisspanne das gesamte auf die Anteilseigner
entfallene Eigenkapital pro Aktie nach Abschluss des Angebots bersteigt, darstellt.
Nach Durchfhrung der Kapitalerhhungen, die zwischen dem 1. Juli 2014 und
22. September 2014 stattfanden und Ausgabe der Neuen Aktien im Rahmen des
Angebots sowie unter Annahme eines Angebotspreises von 39,00 in der Mitte der
Preisspanne und vollstndiger Ausbung der Greenshoe-Option, htte das auf die
Anteilseigner der Emittentin entfallende Eigenkapital basierend auf dem
Nettoemissionserls des Angebots zum 30. Juni 2014 2.939,1 Mio. bzw. 18,6 pro
Aktie der Emittentin betragen. Basierend auf 157.984.608 ausgegebenen Aktien der
Emittentin nach Abschluss des Angebots (unter der Annahme, dass alle Neuen
Aktien platziert werden und die Greenshoe-Option vollstndig ausgebt wird), wrde
dies einer direkten Verwsserung von 20,4 bzw. 52,3 % pro Aktie der Emittentin
fr Personen, die an dem Angebot teilnehmen, entsprechen.
unteres
Ende Mittelwert
oberes
Ende
Preis pro Aktie (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,5 39,00 42,50
Auf die Anteilseigner entfallendes Eigenkapital pro Aktie
zum 30. Juni 2014 (Nettobuchwert
(1)
vor IPO) (in ) . . . . . . . . 12,63 12,63 12,63
Post-IPO Eigenkapital pro Aktie (Nettobuchwert
(2)
nach IPO)
(in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,79 18,60 19,42
Betrag, um den der Nettobuchwert nach IPO den
Nettobuchwert vor IPO bersteigt (in ) . . . . . . . . . . . . . . . . . . . . . 5,15 5,97 6,78
Betrag, um den der Angebotspreis den Nettobuchwert nach
IPO bersteigt (unmittelbare Verwsserung pro Aktie)
(in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,71 20,40 23,08
(1) Der Nettobuchwert vor IPO entspricht der Summe aus gezeichnetem Kapital minus eigene
Anteile plus Kapitalrcklage plus Gewinnrcklagen plus kumuliertes briges Konzernergebnis
plus Konzernbilanzgewinn/Konzernbilanzverlust plus das Eigenkapital, das in den
Kapitalerhhungen, die zwischen dem 1. Juli 2014 und 22. September 2014, stattfanden,
eingebracht wurde dividiert durch die Anzahl der ausgegebenen Aktien unmittelbar vor dem
Angebot.
(2) Der Nettobuchwert nach IPO entspricht der Summe aus gezeichnetem Kapital minus eigene
Anteile plus Kapitalrcklage plus Gewinnrcklagen plus kumuliertes briges Konzernergebnis
plus Konzernbilanzgewinn/Konzernbilanzverlust zum 30. Juni 2014 plus das Eigenkapital, das
in den Kapitalerhhungen, die zwischen dem 1. Juli 2014 und dem 22. September 2014
stattfanden, eingebracht wurde, plus die Nettoerlse aus der Ausgabe der Neuen Aktien zum
unteren Ende, Mittelwert bzw. oberen Ende der Preisspanne plus die Erlse aus einer
vollstndigen Ausbung der Greenshoe Option dividiert durch die Anzahl der ausgegebenen
Aktien nach Abschluss des Angebots (unter der Annahme, dass alle Neuen Aktien platziert
werden und die Greenshoe-Option vollstndig ausgebt wird).
E.7 Schtzung der
Ausgaben, die dem
Anleger vom
Emittenten oder
Anbieter in Rechnung
gestellt werden.
Entfllt. Anlegern werden von der Emittentin oder den Konsortialbanken keine
Kosten in Rechnung gestellt.
S-54
RISK FACTORS
An investment in the shares of Rocket Internet AG, Berlin, Germany (the Issuer and together with the
legal entities that are fully consolidated in the Issuers consolidated financial statements, the Group), is
subject to risks. In addition to the other information contained in this prospectus, investors should carefully
consider the following risks when deciding whether to invest in the Issuers shares. The market price of the
Issuers shares could decline if any of these risks were to materialize, in which case investors could lose some or
all of their investment. The following risks, alone or together with additional risks and uncertainties not currently
known to us, or that we might currently deem immaterial, could materially adversely affect our business,
financial condition, cash flows, results of operations and the value of the Issuers direct and indirect interests in
our companies.
The order in which the risks are presented is not an indication of the likelihood of the risks actually
materializing, or the significance or degree of the risks or the scope of any potential harm to our business, net
assets, financial condition, cash flows, results of operations or the value of the Issuers direct and indirect
interests in our companies. The risks mentioned herein may materialize individually or cumulatively.
In this prospectus, we, us, our or Rocket Internet refers to the Issuer, together with our
companies (our companies refer to the proven winners, emerging stars, concepts, regional Internet groups,
intermediate holding companies and the companies in the categories strategic participations and other
investments that were founded by us). Financial information included in this section as of a date other than, or a
period other than the years ended, December 31, 2011, December 31, 2012 or December 31, 2013 has been
taken or derived from the condensed interim consolidated financial statements as of and for the six months ended
June 30, 2014 or the accounting or controlling records of the Issuer or the companies and is unaudited.
Risks Related to the Issuer and Our Companies
We disclose in this prospectus valuations derived from investments in the Issuer and our companies. These
valuations may not reflect the past, present or future fair values of the Issuer or our companies, and potential
investors in this offering should not place undue reliance on these valuations.
In a number of financing rounds to date, investors have provided equity capital to the Issuer and our
companies. Investors that have provided equity capital directly to the Issuer include affiliates of Investment
AB Kinnevik (Kinnevik) and the Access Industries group of companies, which includes AI European
Holdings S. r.l., AI Linio Holdings LLC, AI Zencap Holdings LLC and AI Lendico Holdings LLC (together
Access Industries) as well as, most recently, Philippine Long Distance Telephone Company (PLDT),
United Internet Ventures AG and HV Holtzbrinck Ventures Fund IV LP, Holtzbrinck Ventures NM GmbH &
Co. KG and HV Holtzbrinck Ventures Fund V GmbH & Co. KG (together Holtzbrinck Ventures and together
with its affiliates Holtzbrinck). A large number of other investors, including affiliates of MTN Group Limited
(MTN), Ooredoo Q.S.C., TESCO OVERSEAS INVESTMENTS LIMITED (Tesco), Millicom International
Cellular S.A. (Millicom), certain funds attributable to J.P. Morgan Investment Management Inc., Ontario
Teachers Pension Plan and Holtzbrinck have provided equity capital to our companies.
In order to determine the price for interests that were acquired by investors in the Issuer and our
companies, we, the other shareholders in the relevant entity and the relevant investor determined a valuation for
the relevant entity, and, in the cases of a contribution in kind rather than a cash contribution by the Investor, also
on a valuation of such contribution in kind. These valuations were often based on limited operational and
historical information about the relevant entity (or the asset, in the case of a contribution in kind), not confirmed
by an independent third party expert such as an accounting firm or an investment bank, and reflect the specific
circumstances under which the relevant investment in the company was made, including the specific terms of the
investments, such as liquidation preferences, and the insights, assumptions and expectations of the relevant
investors at that point in time. Some of these valuations are no longer recent and the circumstances under which
they were made may have changed, including as a result of changes in foreign exchange rates, or because some
of our companies may not have performed in accordance with the expectations of investors at the time of the
relevant financing round.
In addition, certain of our financing rounds may not represent the fair value of our companies as they
were completed with affiliates, or with investors that had already invested in the Issuer or our companies (such as
Holtzbrinck), at less than arms length. The valuations we have disclosed may therefore exceed the price that
third parties would be willing to pay for the relevant investment in a future financing round, a potential exit or a
potential initial public offering, even one that occurred shortly after the relevant valuation date. For example,
Kinnevik reports fair values for our operating and holding companies that are typically lower than the valuations
1
of the relevant entity in its last financing round. If the Issuer retains a stake in one of our companies after such
company has been taken public, for example, because the company executed an initial public offering in order to
allow other investors to sell their stakes, the value of the Issuers stake will be influenced by changes in the
market price for the shares of this company. Our co-investors in our regional Internet groups may have valued
them more highly based on the expectation of synergies from their investments that would benefit their particular
business. In addition, liquidation preferences granted to later investors in our companies may impact the value of
the Issuers interests in these companies. Certain of our intermediate holding companies have received valuations
that were lower than the total valuations of the companies in which they held interests. Further, in connection
with financing rounds of the Issuer or some of our companies or regional Internet groups, we may have agreed to
lower valuation as we expect to reap benefits from a future cooperation with the investor, which may not be
realized or not to the extent originally expected.
Consequently, the valuations of the Issuer and our companies may not reflect their past, present or
future fair values, or any potentially achievable fair value in the future. Accordingly, potential investors in this
offering should not place undue reliance on these valuations. Given the hundreds of individual transactions that
have taken place over the last several years, there is no guarantee that the transaction parameters and resulting
valuations were always correctly determined and recorded. Any investment in the Issuers shares must be based
upon an investors own assessment of its circumstances and the circumstances surrounding the Issuer and our
companies.
The materialization of any of the risks described above could have a material adverse effect on the
Issuers business, financial condition, cash flows, and results of operations and its share price and valuation.
We have grown into a large organization with a significant number of companies active primarily in three
focus sectors and 116 countries. There is no guarantee that we can maintain our historical growth rates or
that we can continue to manage future growth, including as a result of increased competition.
The growth of our business is based on our ability to identify proven Internet business models and
transfer them to new, underserved or untapped markets, where we seek to build and scale them into market
leading online companies. Since 2007, we have successfully developed new online companies in the
e-commerce, marketplace and financial technology sectors, and have scaled these companies to underserved,
high-growth emerging markets, such as India, Mexico and Brazil. Despite our success thus far, there is no
guarantee that we can maintain our historical growth rates or continue to generate future growth. We may be
unable to identify additional proven Internet business models, either at our current rate or at all, and we may be
unable to continue or further develop our processes for building and scaling new companies in Internet business
sectors. In addition, we may be unable to identify new markets for our companies or to grow or to become
profitable in the markets in which we currently operate. While we have focused on developing each of our
companies into a market leader, we anticipate that the success of our companies will inevitably attract
competitors, which may include large Internet companies that do not currently operate in our target markets or
sectors, such as Googles recently launched Shopping Express, Amazon, Naspers, Facebook or Group Casinos
online companies. In addition, new entrants in some of these markets, such as Alibaba, which recently raised
significant additional capital, could devote additional resources and increase their efforts. Our current and future
competitors may have greater resources than us, may outperform us and may substantially limit our ability to
continue to grow. In order to support our growth rates, we may in the future engage in acquisitions of existing
companies. We may, however, be unable to successfully integrate any acquired companies and may not be able
to achieve any expected benefits from such transactions. In addition, we may acquire liabilities in connection
with any such transaction, which may not be covered by sufficient contractual indemnities.
In addition, our rapid growth over the past seven years has placed significant demands on our combined
management, operational and financial infrastructure. We have experienced substantial growth in terms of
headcount and operations, and may not be able to effectively manage our growth going forward, which could
result in a deterioration of the quality of our products and services. Our expansion into international markets,
including emerging markets, heightens these risks due to the challenges of launching, growing and supporting
businesses in a diverse environment composed of multiple languages, cultures, customs, legal, judicial and
regulatory systems and commercial infrastructures. There is no guarantee that we will be able to continue
developing and implementing the management, operational and financial infrastructure that our business model
requires.
As we have grown, our corporate structure has also become substantially more complex. The Issuer is
organized as an operating company that holds interests in multiple levels of regional Internet groups,
intermediate holding companies and local entities, and we have entered into a large number of agreements with
investors at all levels of our corporate structure. Significant management time and effort is required to effectively
2
manage the increased complexity of our corporate structure and contractual obligations, which may limit the
ability of our management to focus on the strategic growth of our business and our companies.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Nearly all of our companies have limited operating histories, are significantly loss making, have a negative
operating cash flow, require significant capital expenditure and may never be profitable or cash generating.
Nearly all of our companies have only limited operating histories and have incurred substantial costs for
marketing their products and launching and expanding their operations. According to available financial
information, our proven winners, emerging stars, regional Internet groups, concepts, strategic participations and
other investments (excluding results of participations that belonged to the Global Founders Capital Fund
portfolio and were contributed in August 2014), were, each in the aggregate, loss making (based on the
respective last financial year). However, with the exception of the proven winners, we are not in possession of
information that would allow us to reliably quantify the aggregate loss of the companies in any other category.
Our proven winners generated aggregate net losses of 442 million (unaudited sum total of their net losses based
on generally accepted accounting principles applicable for the relevant company, in each case taking the last
financial year for which data was available and excluding extraordinary gains of Dafiti resulting from the
measurement of limited partnership interests). The aggregate cash outflows from operating activities and cash
outflows from investing activities of our proven winners amounted to 421 million (unaudited sum total of the
cash flows from operating activities and cash flows from investing activities based on generally accepted
accounting principles applicable for the relevant company, in each case taking the last financial year for which
data was available). Nearly all of our companies cannot presently fund their cash flow needs from operations
alone.
The executive officers of our companies often have limited management experience in their respective
industries, and there is no guarantee that our companies have, or will be able to develop business plans that will
allow them to become profitable or generate positive cash flow in the future. The operating expenses of our
companies may increase in the foreseeable future as they continue to develop their products and services,
increase their sales and marketing efforts and expand their operations.
The operating losses and negative cash flows incurred by our companies may have an ongoing negative
impact on our business, financial condition, cash flows, results of operations and the value of the Issuers direct
and indirect interests in our companies. In addition, we may be limited in our ability to exit an investment in a
poorly performing company. Because nearly all of our larger and more mature companies are not fully
consolidated, the Issuers consolidated financial statements generally include the performance of our youngest
and least mature companies, which may introduce substantial volatility into the Issuers financial results.
Operating losses at our consolidated companies and our companies accounted for at equity will also have a direct
negative impact on the Issuers consolidated income statement, which may substantially impact the Issuers own
profitability. Any future consolidation of our companies with operating losses will likewise negatively affect the
Issuers consolidated income statement and profitability.
Many of our most mature companies are not consolidated in the Issuers results at all, which means that
if they begin to perform poorly it will not be reflected in the Issuers financial results. Any failure of one of these
companies, which we refer to as proven winners elsewhere in this prospectus, would nevertheless adversely
affect the Issuers market capitalization, as investors have historically ascribed considerable value to these
companies, and harm the Issuers reputation, which may limit the Issuers ability to finance other companies in
our network, thereby potentially putting them at risk as well.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our operations and growth may be impaired or cease if we do not succeed in raising additional equity or in
borrowing money on favorable terms.
The growth and expansion of our companies will likely require additional capital. Nearly all of our
companies have a negative cash flow and require periodic injections of capital in order to continue to run their
businesses. If our companies need capital but are not able to raise it, their growth may be limited and their market
shares may be negatively impacted. They may also be forced to scale back their operations or even cease to exist
as going concerns. There is no guarantee that our companies will be able to obtain additional financing on
3
favorable terms or at all. We may also not have the same access to equity and debt capital as our competitors, in
particular those based in the United States, and general economic disruptions and downturns may negatively
affect the ability of our companies to raise capital when needed. In the past, we have received significant
investment commitments from certain key investors on repeated occasions. There is no assurance that these
investors will meet their outstanding commitments to us or that they will continue to make such commitments in
the future. If our relationship with these investors should deteriorate, we may not be able to find other investors
who are willing and able to make the same type of commitments or investments in us. We may also fail to
accurately project the capital needs of our companies, and may not be able to provide them with sufficient capital
to continue to run their businesses, even if we wished to do so. In the case of any such event, our interest in any
such company may be diluted and the value of our stake in such company may decline or may become worthless.
In the medium to long term the Issuer could require additional capital, such as cash to finance its
corporate overhead and to meet its existing funding plans. The Issuer may also experience increased
administrative costs as a result of becoming a public company. The Issuer receives only limited amounts of cash
from its companies because, as of the date of this prospectus, nearly all of our companies have a negative
operating cash flow and do not provide any funds to the Issuer in the form of dividends. While the Issuer
generally recoups a portion of its overhead and other expenses by charging our companies for certain services,
there is no guarantee that it will be able to completely or partially recover the costs of its operations in the future,
particularly in the case of companies which fail to secure adequate funding.
If the Issuer needs capital and is unable to raise it, the Issuer may be required to take additional steps,
such as borrowing money on unfavorable terms or divesting assets prematurely, in order to raise capital, which
may trigger certain change-of-control provisions that allow investors in the relevant entity to either purchase the
Issuers stake, or require the Issuer to purchase theirs, at a discount to fair value. Additional provisions, such as
those granting other investors a right to first purchase or a tag-along right, could delay, impair or prevent the
disposal of the Issuers interests in our companies or could curtail our operating flexibility.
Any deterioration in the performance, prospects or perceived value of the Issuer or its companies may
have a material adverse effect on the Issuers share price and valuation and may trigger additional capital
requirements and asset impairments. Further, any liquidity concerns encountered by the Issuer may require it to
curtail or abandon its growth strategy and limit its ability to provide financial support to existing companies. As a
result, some of our companies may be forced to limit or cease operations, which, in turn, may negatively affect
our reputation and finances and the reputation and finances of the other companies in our network. Ultimately, an
ongoing shortage of capital may cause the Issuer to cease as a going concern.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
A number of shareholders agreements relating to our companies contain liquidation preferences, which may
result in a disproportionate decrease in the value of the Issuers direct and indirect stakes in our companies,
and protection clauses for third party investors if a later financing round is effected at a lower valuation
which may lead to a dilution of the Issuers direct and indirect interests in our companies.
Nearly all of the shareholders agreements relating to our companies contain liquidation preference
structures that would, in certain situations including a change of control or liquidation of the relevant company,
allow investors who invested in later financing rounds to receive proceeds up to the value of their initial
investment, or sometimes even more, before proceeds are distributed to investors in earlier financing rounds. In
any such situation, there is no guarantee that the Issuer or the relevant holding company, as founder and frequent
early investor in our companies, would receive any proceeds after the liquidation preferences of other investors
had been satisfied. In fact, the Issuer is typically one of the most junior-ranking investors in our companies, and
thus highly likely to be affected by any liquidation preferences. In addition, if the valuations of our companies
decline, the Issuers interests in our companies are likely to be disproportionately impacted relative to later
investors who have a higher priority in the distribution of proceeds (whether due to liquidation preferences or
other structural subordination) because such reductions in valuation are more likely to impact the proceeds paid
to junior investors such as the Issuer.
Certain of our shareholders agreements relating to our companies also provide investors with so-called
down-round protections rights. These rights entitle the investor to receive compensation shares if a future
financing round values the company lower than the valuation during the round in which the investor originally
invested. Because this compensation is paid in the form of shares in the relevant company, the interest of
investors that do not receive compensation shares, which typically include the Issuer, will be diluted if these
rights are triggered.
4
Further, a number of our shareholders agreements contain so-called drag-along rights, which give the
major shareholders of the relevant company the right to require the other shareholders to sell their shares in the
same transaction and at the same conditions. The price to be paid pursuant to these conditions may be lower than
the corresponding valuation based on the last financing round or secondary transaction disclosed in this
prospectus. While we may be able to block a drag-along transaction in some cases, we do not hold a sufficiently
large stake to block a drag-along in a number of our companies, which means that the Issuer or our intermediate
holding companies may not be in a position to block a sale at a valuation below the valuation of the relevant
entity based on the last financing round or secondary transaction.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Because the Issuer does not control most of our companies, they are operationally independent and may make
business decisions that are not in the Issuers or their best interests or that the Issuer does not agree with and
which could impair the value of the Issuers direct and indirect holdings.
The Issuer has no control and only limited influence over most of our companies. As of June 30, 2014,
none of our proven winners were fully consolidated in the Groups financial results, reflecting the limited
influence the Issuer has over these companies. Other companies are only accounted for at equity, which is
predicated on the Issuer having a level of influence that does not rise to the level of control.
Although our companies have historically looked to us for, and followed our, advice on financial and
operating matters, there is no assurance that the companies the Issuer does not control, including those over
which the Issuer may have significant influence, will continue to heed or solicit our advice, including advice on
significant financial or other business decisions that may have a material adverse effect on our or their interests
or may be inconsistent with our or their business strategy. Management or other direct or indirect stakeholders in
the companies that the Issuer does not control may have economic or business interests or objectives that differ
from those of our Group or may disagree with our advice regarding financial or operating matters.
There is no guarantee that the companies the Issuer does not directly or indirectly control will not act in
a manner that is directly or indirectly harmful to our or their best interests, and disputes regarding the plans,
strategies or business models of the companies the Issuer does not control may consume managements time and
effort and reduce its ability to successfully execute the business strategy of the Issuer. The companies the Issuer
does not control have also historically purchased a certain level of services from us which has allowed us to
offset a substantial portion of the overhead costs of providing these services and recover the variable costs. We
cannot guarantee that the companies the Issuer does not control will continue to make use of our services which
may increase our cost in providing them or limit our ability to continue or expand our current services.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our global expansion, in particular into a large number of emerging markets, exposes us to political,
economic, legal and other risks and uncertainties.
We conduct business in over 100 countries on five continents. As a result of our expansion, we are
active in a large number of diverse markets, which exposes us to a variety of local economic, political and social
conditions, including potential hyperinflationary conditions, civil unrest, regulations restricting or limiting
foreign ownership and political instability. Our operations are carried out in a large number of foreign currencies,
which exposes us to risk in connection with fluctuations or devaluations of currencies as well as foreign
exchange controls that impact our ability to convert currencies. We do not currently hedge these risks. Our
companies are also exposed to risks related to domestic and foreign customs, tariffs, quotas, import or export
licensing requirements and other trade barriers. Our companies have to analyze and operate in opaque or
unfamiliar legal systems, which may contain conflicting regulatory requirements and are often subject to
arbitrary enforcement by authorities, and may face complex taxation issues. For more information, see Legal
and Regulatory RisksConducting business in 116 countries requires us to comply with numerous, complex and
sometimes conflicting legal and regulatory requirements. In addition, financial and economic sanctions may be
imposed or tightened by other countries or international organizations on the countries in which we operate, for
instance on the Russian Federation (Russia), where Lamoda and some of our other companies conduct
business. The governments of the countries in which we operate may also nationalize our companies. If
5
one of our companies were to become profitable, we may be faced with limitations on the remittance of
dividends and other cross-border payments or on the recovery of amounts withheld due to withholding taxes. As
we continue to grow, these complications may grow worse, and there is no guarantee that we can manage them
effectively or at all.
We also face specific risks as a foreign company doing business in our target markets, which often have
regulations in place designed to restrict or limit the ability of foreign companies to conduct business. We may
find it more difficult to acquire the licenses and other approvals that we need to operate in our target markets. We
may also not be accustomed to how business is conducted in our target markets, and may misinterpret or
misunderstand local rules, regulations or customs. In some cases, we may be treated unfairly or differently than
other businesses and may face arbitrary or harmful actions, such as revocations of licenses or other difficulties,
with little or no means of recourse.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our target markets may not be as attractive as we currently believe and may not develop as we anticipate.
We currently intend to continue our search for new business concepts in the United States and Western
Europe, among others, which we will seek to transfer to underserved, high-growth emerging markets. We target
these regions because we believe their growth in terms of gross domestic product (GDP), population and
Internet penetration, combined with the absence of a sophisticated offline retail infrastructure, presents a
significant market opportunity to leapfrog the development of traditional brick-and-mortar retail industries. There
is no guarantee, however, that our target markets will prove to be as attractive as we currently believe them to be.
While we have had success thus far with online e-commerce and marketplace companies, our initial
success does not mean that these business models will become or continue to be profitable or successful in the
long term or in different geographic markets. The success of our companies relies heavily on the forecasted
growth of our regions, both in terms of population and GDP. Growth trends may be less predictable, and overall
GDP and consumer spending levels substantially lower, in many of our target markets than in European markets.
Consumers in emerging markets are also more exposed to external forces that impact consumer spending, such as
general economic conditions, unemployment, consumer debt, reductions in net worth, residential real estate and
mortgage markets, taxation, energy prices, inflation, interest rates, consumer confidence and other
macroeconomic factors. Because our companies tend to target sectors that are typically considered forms of
discretionary spending, such as fashion and restaurant food, we may be particularly at risk of negative economic
performance during recessionary or other periods in which consumer spending or disposable income decreases,
and, due to the relative fragility of emerging markets, may be disproportionately exposed to these risks as
compared to our competitors who target more developed markets.
Our business and companies also rely on the continued growth of the Internet as a platform for online
consumer transactions, particularly in the emerging markets where we seek to scale our companies. In particular,
we believe that mobile applications will continue to develop as one of the primary ways in which customers
complete online transactions in our target markets, and have developed our companies and technology platform
to support this approach. There is no guarantee, however, that Internet penetration rates, and in particular mobile
Internet penetration rates, will continue to grow as we anticipate. Internet penetration rates in our target markets
may stagnate or decline, and customers may not readily adapt to the use of the Internet for consumer transactions,
particularly in regions where physical retail or face-to-face transactions remain the predominant form of
commerce. Even if consumers desire to make use of the Internet for e-commerce and other transactions, the
difficulties of developing Internet and mobile infrastructure in emerging markets may limit their ability to do so.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We may never become profitable in our target markets due to the substantial operating complexity we need to
overcome, including the maintenance of significant logistics, delivery and payment infrastructure, particularly
in our e-commerce sector.
While we seek to become a market leader in our target markets, there is no guarantee that we will
achieve this position or that this position will be profitable in the long or short term. We typically operate in
6
emerging markets with high barriers to entry due to the substantial operational complexity of these markets.
While we anticipate that these high barriers to entry will allow us to defend our position as market leader and
benefit from higher profit margins, the difficulty of operating in our target markets may ultimately prove more
costly and less profitable than operating in the more established markets, such as the United States and China,
that we have chosen to forego. Nearly all of our companies have negative cash flow and require periodic
injections of capital in order to continue their operations, and there is no guarantee that successful execution in
our target markets will allow us or our companies to become profitable.
In order to overcome the operational challenges posed by the markets in which they operate, and in
particular for e-commerce, our respective companies have had to develop significant logistics, delivery and
payment infrastructure, which includes the operation of fully owned warehouses, the establishment of our own
delivery and last-mile delivery fleets, the design of an independent technology platform and the availability of
unconventional payment options, such as try at the door delivery services and cash-on-delivery payment, all of
which place a higher risk on our companies than traditional Internet businesses. The maintenance, modernization
and expansion of these systems may require substantial additional investments in order to keep pace with the
growth of our companies, and the cost of these investments, assuming we can meet them, may rapidly outpace
the benefits they bring to us. Further, having developed the infrastructure required to operate successfully in
these markets, other companies may find it easier to develop businesses that compete with ours in our target
markets.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
The Issuer was co-founded by Oliver Samwer, the Issuers current CEO, and we continue to depend on his
leadership. Conflicts of interest may arise between Oliver Samwer and us and there is no guarantee that
Oliver Samwer will continue to devote his time and energy to us.
We are a founder-led business. Under the leadership and guidance of Oliver Samwer, the Issuers
co-founder and current CEO, we have grown into an international organization conducting business in
116 countries on five continents. Our future success is highly dependent on his continued contributions and
overall vision for our business. There is no guarantee, however, that Oliver Samwer will be able and willing to
continue devoting his time, energy and management skills to our day-to-day operations. Under the terms of his
service agreement with the Issuer, Oliver Samwer is bound by non-compete and non-solicitation obligations.
However, the Issuer may be unable to successfully enforce these provisions and we may suffer harm from their
violation even if the Issuer is able to do so. If we were to lose the services of Oliver Samwer, there is no
assurance that we will be able to adequately replace his contribution.
In addition to his role as CEO, Oliver Samwer is a shareholder of and serves as a director of the Global
Founders GmbH (GFG), the Issuers largest existing shareholder. GFGs other shareholders, Marc and
Alexander Samwer, and the Issuers other existing shareholders are not bound by any form of general non-
compete agreement, although a small number of the investment agreements on the regional Internet group,
intermediate holding company and local entity level contain limited non-compete provisions. This means that
GFG, its affiliates and any other investment vehicles used by Oliver Samwer, as well as GFGs other
shareholders, are generally free to pursue opportunities outside Rocket Internet, including opportunities that
compete directly or indirectly with us.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Conflicts of interest may arise between us and our current or former companies or among them.
In addition to potential conflicts with Oliver Samwer, conflicts of interest could arise between us and
our current or former companies, many of which were created based on similar business concepts which are
engaged in fashion and shoe online retail in Latin America and Southeast Asia, respectively, as well as Home24
and Westwing, which are both engaged in the home & living sector and operate in several of the same countries
in Europe and Latin America. In addition, conflicts of interest could arise between two companies that operate in
different, but partially overlapping sectors in the same geographic region, such as Dafiti and Linio in Latin
America or Lazada and Zalora in Southeast Asia. Competition among our current and former companies could
negatively impact the revenues and margins of our companies, and such competition may intensify in the future,
in particular as our companies grow their product assortments and expand to new geographical markets.
7
In late 2013, we sold and transferred nearly our entire stake in Zalando GmbH (now: Zalando SE,
Zalando), an e-commerce company currently engaged in fashion retail in Western Europe, to our then existing
shareholders, including GFG and affiliates of Kinnevik and Access Industries. For more information, see Tax
RisksThe Spin-Off of Zalando may result in a significant additional tax burden. As a result, Zalando is no
longer part of the Group. We have started other companies in online fashion and shoe retail, all of which are
based on business models that are very similar to Zalando but currently target markets outside of Western
Europe. While there is currently no direct competition between Zalando and any of our present companies,
nothing would prevent Zalando, which is significantly larger than our current e-commerce fashion retail
companies, from expanding its operations into markets served or targeted by our other companies. If this
happens, there is no assurance that Oliver Samwer or the Issuers existing shareholders, including GFG and
affiliates of Kinnevik and Access Industries, or other persons that directly or indirectly hold stakes in both
Zalando and us, will place our interests over those of Zalando.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our future growth will depend on our ability to identify additional proven Internet business concepts on which
to model our companies and to turn those concepts into successful enterprises.
Our business strategy is to identify proven Internet business concepts in one market, which we then seek
to transpose to new, underserved or untapped geographic markets. Accordingly, we need to identify suitable
Internet business concepts, understand them and the risks they entail and quickly establish local entities to
execute the chosen business concept in such geographic markets.
We may not be able to identify enough suitable business concepts in the future. Without new business
concepts, we will be unable to launch new companies. Even if we identify suitable business concepts, we may not
fully understand them or their associated risks, and the business plans and market estimates underlying our decision
to launch a new company may prove to be inaccurate. We may also not be able to distinguish between business
concepts with potential for long-term success and those with only limited potential. We may realize, only after
having identified a particular business concept and investing significant resources in its transposition to other
markets, that such business concept is not likely to generate the profits or growth that we expected. Many of our
companies are still young, immature enterprises that are in the process of developing, and there is no guarantee that
the failure rate of our companies will not increase in the future.
Furthermore, we may not be able to identify and implement business concepts before our competitors. We
often have only a small window of opportunity in which we can gain the consumer acceptance necessary to become
a market leader in a particular target market, and we may not be able to develop our chosen business concepts in
new markets before our potential competitors do so. We also may need to overcome restrictions on making
investments or acquiring new businesses in our target market jurisdictions. In the past, our ability to launch new
models and to take advantage of market opportunities has been facilitated by our lean and informal decision making
processes. As the size of our business grows, our ability to implement new business models and grow quickly may
decline as a result of our increasing maturity and the constraints on decision making that come with increased public
scrutiny, oversight by a supervisory board, the need to answer to new stakeholders, the introduction of more
sophisticated risk management procedures and an increased focus on legal and regulatory compliance.
In addition, once we have launched a company in a target market, there is no guarantee that it will
succeed in mastering the local consumer habits required to develop a business that addresses local circumstances
and needs. We may also face difficulties in recruiting sufficiently qualified management and employees in order
to effectively grow our business and may face cultural, social or linguistic barriers when attempting to expand
our operations.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Following the offering, the Issuer currently intends to change its investment strategy by investing more of the
Issuers own funds in our companies and by maintaining a higher stake in our companies for a longer period
of time, which will increase the Issuers exposure if a company fails and may result in a significant
deterioration of our consolidated results of operation.
Up to this point, the Issuers investment strategy with respect to our companies has typically involved an
initial equity investment of 0.5 million to 2 million in our new companies followed by the introduction of
8
third-party equity capital after launch. Because the Issuer has not typically participated in these financing rounds,
the Issuers direct and indirect stake in our companies has typically fallen below 50% relatively quickly, and
accordingly the Issuer does not control, and do not exercise significant influence over, most of our companies as
of the date of this prospectus. With the proceeds of this offering, the Issuer currently intends to provide higher
levels of funding to our companies over a longer period of time, and only bring in third-party equity at later
stages. As a result, the Issuer may not be able to take advantage of synergies with new strategic, commercial and/
or local partners that might have otherwise held significant stakes in our companies, or may only be able to do so
to a limited extent. The Issuer may also not be able to rely on third-party investment as a means of valuing or
validating our young companies.
By providing more equity capital to our companies, the Issuer currently intends to hold a majority
interest in them for a longer period of time. As a result, the Issuer aims to control more of our companies,
resulting in their inclusion in the Issuers consolidated financial statements, which may result in a significant
deterioration of the Issuers consolidated results of operation. In addition, the failure of any one of these
consolidated companies would have a greater effect on our business, financial condition, the value of the Issuers
direct and indirect interest in our companies, cash flows and results of operations. The historical information
which we have disclosed in this prospectus reflects our operations under the Issuers current investment strategy
and may not be relevant for the Issuers changed investment strategy going forward. In addition, the Issuers
investment strategy may change again in the future and may do so in ways that we cannot currently anticipate.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our companies may face intense competition and may fail if our competitors provide superior Internet-related
offerings or if we do not adapt to changing market environments.
While we generally seek to enter markets in which we believe limited competition exists, our target
markets and, in particular the emerging markets in which we operate, are rapidly evolving and may become
increasingly competitive. For example, Alibaba announced plans to broaden its geographic footprint and recently
started operations in some of our target markets. Barriers to entry into the e-commerce and Internet market are
relatively low, and competitors can frequently offer products and services at a relatively low cost. Competition in
the markets we serve may intensify in the future, particularly as innovations in Internet technologies further
reduce the existing barriers to entry. The success of our companies often hinges on our ability to occupy a market
leading position rapidly, which we may not achieve if we do not provide a superior customer experience in the
face of potential competitors, including our ability to provide outstanding customer service, to implement a rapid
and reliable delivery infrastructure, to offer localized, attractive products and services at competitive prices, to
provide and accept convenient methods of payment and to source products that respond to customer demands.
Our current and potential competitors range from large, established companies to emerging start-ups and
include Internet companies as well as traditional brick-and-mortar companies offering similar products and
services offline. Established companies, on the one hand, may have greater resources, more comprehensive and
complementary product and service offerings, longer operating histories and more established relationships with
customers. These companies can use their experience and resources to compete with our companies in a variety
of ways, including by making acquisitions, investing aggressively in advertising campaigns, and offering more
attractive commercial terms to customers, service providers and other strategic partners. Start-ups, on the other
hand, may be able to develop Internet products or services that are superior to, or have greater market acceptance
than, the products and services offered by our companies or may be faster in bringing their products and services
to the market. In addition, other start-ups, in particular those located in the United States, may have an easier
time accessing significant equity and debt capital than our companies.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Any harm to the brands or reputation of the Issuer or our companies may materially and adversely affect our
relationships with businesses, consumers or investors.
The recognition and reputation of the brands of the Issuer and our companies among customers,
suppliers, third-party sellers and investors are important for the growth and success of our business and are
critical to maintaining our competitiveness in our target markets. Public perception that one of our companies or
9
its third-party service providers do not provide satisfactory customer service, even if factually incorrect or based
on isolated incidents, could damage that companys reputation, diminish the value of its brand, undermine the
trust and credibility it has established and have a negative impact on its ability to attract new, or retain existing,
customers and enter into new markets or sectors, and could similarly affect the Issuer and any of our other
companies.
Many factors, some of which are beyond our control, are important to maintaining and enhancing our
brands. These factors include our ability to:
provide a compelling online shopping experience to customers across our target markets;
maintain and improve the popularity, attractiveness, diversity, quality and value of the products and
services offered by our companies;
maintain and improve the efficiency, reliability and quality of our fulfillment services;
maintain and improve customers satisfaction with our after-sales services;
increase brand awareness through marketing and brand promotion activities generally and in our
target markets; and
preserve our reputation and goodwill in the event of any negative publicity regarding customer
service, Internet security, payment and escrow services, product quality, price or authenticity, or
other issues affecting the Issuer, our companies or other businesses in the same industry.
In addition, the Issuer, its CEO and our companies have from time to time been faced with negative
coverage by the press and social media in the past, including the posting of internal e-mails on the Internet.
Negative publicity about us, even if untrue or inaccurate, may harm our reputation, limit our ability to execute
our strategic plan and to raise additional funds and may discourage key persons from continuing to devote their
attention and energy to us. In addition, such publicity may negatively impact our ability to enter into, or continue,
our commercial and strategic partnerships and framework agreements.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We may be the subject of anti-competitive behavior, harassing or other detrimental conduct by third parties
including complaints to regulatory agencies, negative blog postings, and the public dissemination of malicious
assessments of our business that could harm our reputation and cause us to lose market share, customers and
revenues.
As a result of the growth of our companies to date and the heightened scrutiny in connection with this
initial public offering, we may be the target of anti-competitive behavior, harassing, or other detrimental conduct
by third parties. Such conduct may include complaints, anonymous or otherwise, to regulatory agencies. We may
be subject to government or regulatory investigation as a result of such third-party conduct and may be required
to expend significant time and incur substantial costs to address such third-party conduct, and there is no
assurance that we will be able to conclusively refute each of the allegations within a reasonable period of time, or
at all.
Additionally, allegations, directly or indirectly against us, may be posted in Internet chat-rooms or on
blogs or websites by anyone, whether or not related to us, on an anonymous basis. Consumers value readily
available information concerning Internet companies and their offerings and often act on such information
without further investigation or authentication and without regard to its accuracy. The availability of information
on social media platforms and devices is virtually immediate, as is its impact. Social media platforms and devices
immediately publish the content their subscribers and participants post, often without filters or checks on the
accuracy of the content posted. Information posted may be inaccurate and adverse to us, and it may harm our
financial performance, prospects or business. The harm may be immediate and spread rapidly without affording
us an opportunity for redress or correction. Our reputation may be negatively affected as a result of the public
dissemination of anonymous allegations or malicious statements about our business.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
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We depend on talented, experienced and committed personnel to grow and operate our business and
companies, and if we are unable to hire, retain, manage and motivate our personnel, or if our new personnel
does not perform as anticipated, we may be unable to grow effectively.
Our future growth and success will depend upon our ability to identify, hire, develop, motivate and
retain talented personnel with outstanding skills. There is no guarantee that we will be able to retain the services
of any of our employees or other members of our senior management in the future. In the past, we have
experienced some turnover of our senior management and other key personnel. In addition, from time to time,
there may be changes in our senior management teams that may be disruptive to our business or the businesses of
our companies. If we and our senior management teams fail to work together effectively, our business and results
of operations could be harmed.
Our growth strategy also depends on our ability to expand our organization by attracting and hiring
high-quality personnel. Identifying, attracting, recruiting, training, integrating, managing and motivating talented
individuals requires significant time, expense and attention. Competition for talent is intense, particularly in
technology driven industries such as ours, and our competitors may be able to offer our potential or current
personnel better pay, experience, benefits or opportunities. Failure to effectively recruit and retain talent could
limit our ability to increase sales, expand operations and achieve other strategic objectives.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We may not be able to maintain our culture, which has been a key to our success.
Since we were founded in 2007, we have evolved into a global network of companies conducting
business in 116 countries on five continents. The size of our network of companies, and their different stages of
development, have provided our companies with an unprecedented opportunity to benefit from synergies and
network effects. In particular, we have a strong culture of knowledge sharing that has taken place on a regional,
functional and business concept level. We also pride ourselves on our speed of execution, our openness to change
and our lack of bureaucracy, qualities which we believe are extremely important to our business model and our
ability to quickly identify and implement new business concepts, and also attract the type of talented employee
we seek to retain.
We face a number of challenges that may affect our ability to sustain our culture, and in particular our
culture of cross-learning and openness, including:
the increasing size and geographic diversity of our network;
failure or inability to identify and promote people in leadership positions in our organization who
share our culture, values and mission;
failure or inability to execute a management succession plan to replace our current generation of
management leaders;
competitive pressures to move in directions that may divert us from our mission, vision and values;
the continued challenges of an ever-changing business environment;
the growth of our companies, which may lead them to develop their own cultures and values which
conflict with ours;
the pressure from the public markets to focus on short-term results instead of long-term value
creation;
efforts to modify our corporate procedures to comply with governance and reporting requirements
for publicly listed entities;
the increasing need to develop expertise in new areas of business that affect us; and
the integration of new companies, business concepts and personnel.
The inability to maintain our culture, or the failure of our culture to deliver the long-term results we
expect to achieve, whether due to the factors above or otherwise, could have a material adverse effect on our
11
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We depend on the framework agreements with leading global technology companies that provide advertising
and technology services to us.
The Issuer has have entered into framework agreements with leading global technology companies,
including Google, Facebook, Rackspace, Responsys and Salesforce, to complement our technology platform and
provide our companies with competitively priced, state-of-the-art technology, payment, advertising and other
services. Maintaining strong relationships with these partners is important to the growth of our business and our
companies. In particular, the Issuer and our companies depend significantly on the Issuers ability to procure the
services offered by these suppliers on favorable terms, such as discounts over listed prices, extended payment
terms, improved service levels through a single point of contact for all our companies, dedicated key account
management and favorable termination provisions. Many of these service providers are industry leaders, and if
the Issuers relationships with any of these providers were to deteriorate, or any of the Issuers framework
agreements were to terminate, we may not be able to find an alternative provider offering the equivalent quality
and scope of services.
The framework agreements entered into by the Issuer typically expire after a term of one year, with the
possibility of automatic renewal for additional one-year terms and can often be terminated by either party on
notice as short as one to three months. As a result, these framework agreements do not ensure the availability of
services or the continuation of particular payment terms or pricing practices in the long or medium term. In
addition, these framework agreements typically do not restrict our partners from providing services to other
companies, including our competitors. There is no guarantee that our current partners will continue to provide
services to the Issuer and our companies on commercially acceptable terms, or at all, after the term of the current
agreement expires, or that they will not terminate our existing services on short notice.
Even if we maintain good relations with our partners, their ability to provide services to the Issuer and
our companies at competitive prices may be adversely affected by economic conditions, labor actions, regulatory
or legal decisions, natural disasters or other causes outside of our control. In the event that we are not able to
obtain these services at favorable prices, the revenues, cost of revenues and growth prospects of our companies
may be materially and adversely affected. In addition, some of these framework agreements currently provide for
beneficial payment terms. If our partners cease to provide us with favorable payment terms, our requirements for
working capital may increase and our operations and growth prospects may be materially and adversely affected.
Any adverse development in our relationships with suppliers could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Many of our companies depend on third parties for their merchandise supply and for the provision of logistics
and other services, which they may fail to provide in a reliable or satisfactory manner.
The availability of popular merchandise and products, timely and reliable delivery and flexible payment
options are important factors for our companies in our e-commerce sector. Our companies rely, to varying
degrees, on third-party vendors and service providers to meet their customers expectations. If the supply of
merchandise from our vendors worsens for any reason, our companies may be unable to obtain the products that
consumers want to purchase. Our vendors can typically discontinue selling merchandise to our companies at any
time for reasons that may or may not be within our control. The inability of our companies to secure adequate
and timely supplies of merchandise would harm their inventory levels and net revenues and may have a material
and adverse effect on their financial performance and reputations.
Lamoda, Lazada, Zalora, Jumia and many of our other companies have developed proprietary logistics
and delivery systems to overcome the challenges of undeveloped transportation infrastructure in the markets
where they operate. Nonetheless, many of our companies depend in part on cooperation with a number of local
and international third-party logistics and delivery companies to deliver products to us and our products to
buyers. Interruptions to or failures in these third-parties logistics and delivery services could prevent the timely
or proper delivery of products to buyers at shipping rates that they are willing to bear, which would harm the
reputation of the relevant companies and their online stores. These interruptions may be due to events that are
beyond our control or the control of these logistics and delivery companies, such as inclement weather, natural
disasters, transportation disruptions or labor unrest. These logistics and delivery services could also be affected
or interrupted by industry consolidation, insolvency or government shut-downs. The risk of such an interruption
occurring is especially heightened in emerging markets, where many of our e-commerce companies operate.
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In addition, the companies in our e-commerce, marketplace and financial technology sectors depend on
our commercial and strategic partnerships with a number of third-parties, such as telecommunication providers
PLDT, MTN and Millicom and retailers Tesco and Rewe. To the extent these parties are unable to provide
satisfactory services to our companies or our customers on commercially acceptable terms or at all, or if we fail
to retain existing or attract new commercial and strategic partners, our ability to retain or attract vendors and
buyers may be severely limited.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our technology platform and our infrastructure are essential to us, and any failure to maintain the
satisfactory performance of our technology platform and infrastructure may materially and adversely affect
our business and reputation.
Our technology platform is based on three proprietary core platforms: e-commerce, marketplace and
financial technology. These platforms provide the essential elements of our technology platform and can be
easily adapted to the specific needs of our companies. Because each core platform is designed to address the
complete business cycle needs of our companies, our companies depend on the efficient and uninterrupted
operation of our computer and communications hardware systems, network infrastructure, software applications,
internal technology systems and data networks for their development, marketing, customer support, sales,
logistics, accounting and finance functions. A disruption or failure of these systems could be caused at any time
by human errors, a natural disaster, telecommunications failure, power outage, cyber-attack, war, terrorist attack
or other catastrophic event. Any of these events could result in system interruptions, delays, breaches of data
security, loss of critical data, the inability to timely and/or satisfactorily fulfill customer orders or provide
services to customers, and reputational harm. In addition, because our companies rely on the same technology
platform, any disruption or failure of our systems is likely to impact a number of our companies at the same time.
Any system interruptions that cause our websites to be unavailable to web browsers or mobile users may
negatively impact our revenues and may reduce the attractiveness of our websites to direct and mobile users, to
vendors and to third-party content providers, including advertisers. As a result, our reputation could be materially
and adversely affected. Direct users or third-party content providers may become unwilling to use our
companies websites.
The Issuer licenses software to its companies, in particular software regarding the operation of the
companies platforms. Regarding such licenses, it cannot be excluded that the Issuer may despite contractual
limitations become liable to damage claims from the licensee, for example due to malfunctions of the software or
disruption of business. Furthermore, such risks may also apply to any maintenance and other IT services
provided by the Issuer to its companies.
Catastrophic events could severely affect our ability to conduct normal business operations. There is no
guarantee that our companies have disaster recovery plans in place or that these plans will address all of the
issues we may encounter in the event of a disaster or other unanticipated issue, and our companies business
interruption insurance, if they have such insurance, may not adequately compensate us for losses that we may
occur from any of the foregoing events.
We use third-party telecommunications providers for Internet and other telecommunication services.
Similarly, we engage third-party facility providers for our hosting facilities and related infrastructure. Service to
our companies customers could be interrupted by a hosting providers decision to close a facility or terminate
operations, or by other unanticipated problems. Any of those third-party providers may fail to perform their
obligations adequately, and any third-party systems may fail to operate properly or become disabled for varying
periods of time, causing business interruption, system damage and/or reputational harm.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our business may be disrupted if we are unable to upgrade our technology platform to meet increased
demand.
As of May 2014, our websites were live in numerous countries. We have made significant investments
in our software, which we license to our companies against payment of a one-off fee. Our companies adapt the
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software to their local needs and often make improvements that we seek to integrate in our master. As traffic on
our websites continues to increase, we must expand and upgrade our platform to meet increased demand. To
date, the Issuer and our companies have invested significant effort in the development and expansion of our
technology platform, and we are continuously developing our technology platform to meet our needs and those of
our companies. However, we may be unable to accurately project capacity limits on our platform and the rate of
increase in use of our websites. Accordingly, we may not make timely investments in our platforms or may spend
too much and may not be able to recoup the investments in the future. In addition, we may not be able to expand
and upgrade our systems and network hardware and software capabilities to accommodate increased or different
use of our websites. For example, Dafiti, one of the companies in our network of companies, recently faced
unexpected challenges in connection with a software change. As a result, the downtime of Dafitis website
increased significantly, Dafiti built up a significant order backlog and was faced with high consumer complaint
levels and negative publicity. Other companies in our network of companies intend to make similar software
changes in the near to mid term. If we are unable to appropriately upgrade our systems and network hardware
and software, the operations and processes of our companies may be disrupted, which could have a material
adverse effect on our business, financial condition, cash flows, results of operations and the value of the Issuers
direct and indirect interests in our companies, and directly or indirectly on the Issuers business, financial
condition, cash flows and results of operations.
Third-party attempts to breach our networks or data security, or the existence of any other security
vulnerabilities, may damage our reputation and adversely affect our business.
Our customers rely on the security of our computer networks and infrastructure for achieving reliable
service and the protection of customer data. As part of our business services, our companies receive, store, and
transmit sensitive personal data and confidential payment information of customers and advertisers. This
information could become subject to computer break-ins, theft or other improper activity by outside parties that
could jeopardize the security of information handled by our companies or cause interruptions in the operations of
our business. Our networks and data security may also be breached due to employee error, malfeasance or
otherwise. Additionally, outside parties may attempt to fraudulently induce employees, customers or advertisers
to disclose sensitive information in order to gain access to our data and accounts or those of our customers or
advertisers. It cannot be excluded that the Issuer may become liable to damage claims or any claims in relation
thereto.
Actual or perceived security vulnerabilities could cause us to incur significant additional costs to
alleviate problems caused by any such vulnerabilities. These costs could reduce the operating margins of our
companies and expose us to litigation, loss of customers, reputational damage and other business harm. While we
work with our companies to implement security best practices, we cannot guarantee that our companies will
implement adequate security measures. In addition, security vulnerabilities or problems at one of our competitors
may quickly spread to others, even to those that have implemented what they believed to be sufficient
safeguards.
Because the techniques used to obtain unauthorized access, disable or degrade service or sabotage
systems change frequently and often are not recognized until launched against a target, we may be unable to
anticipate these techniques or to implement adequate preventative measures. Any such breach or unauthorized
access could result in significant legal and financial exposure, a loss of confidence in the security of our products
and services, and damage to our reputation, including to the reputation of our companies not directly affected by
the security breach and in particular to the reputation of our financial technology companies. The risk that these
types of events could seriously harm our companies is likely to increase as we expand the number of products
and services we offer, increase the size of our user base and operate in more countries.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
The Issuer may not be able to establish or maintain an efficient system of internal controls over financial
reporting, and the Issuers finance department may not be adequate to meet the needs of our growing
business.
According to German corporate law, the management of a corporation (Aktiengesellschaft) is
responsible for establishing immediately and maintaining adequate internal controls over financial reporting.
Limited liability companies (GmbH) are not subject to any similar requirement. As the Issuer was transformed
into a corporation (Aktiengesellschaft) only in 2014, it is still in the process of refining its system of internal
controls.
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As we scale our companies from newly founded businesses into market leading companies, we subject
our companies to tight financial controls. However, the geographic footprint of the Issuer and its consolidated
and unconsolidated companies, with over 20,000 total employees and conducting business in 116 countries, adds
to the complexity of establishing and maintaining a system of internal controls and adds to the risk of a system
failure, an undetected improper use or expenditure of funds or other resources by a company, a failure to properly
report a transaction or the financial results of a subsidiary, or a failure to acquire proper documentation or
necessary shareholder approval. We may also be unable to implement adequate internal controls at our
companies, particularly those that the Issuer does not directly or indirectly control or does not exercise significant
influence over. Any failure to establish or maintain an effective system of internal controls over financial
reporting could limit our ability to report our financial results accurately and in a timely manner or to detect and
prevent fraud.
We rely heavily on the Issuers finance department with respect to our funding process. As a globally
expanding organization, there is a risk that the size, the scope and the focus of the Issuers finance department
may not have been sufficient in the past to meet the growing demands of our organization, and may not be
sufficient going forward.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
The Issuers financial results may be volatile, which could cause the Issuers share price to fluctuate.
We expect that the Issuers annual and interim results will fluctuate significantly due to many factors,
including sales of equity securities of our companies, which could cause the Issuer to recognize gains or losses
under applicable accounting rules; changes in the methods of accounting and in particular consolidation for the
interests in our companies, which may result from changes in the Issuers direct or indirect ownership
percentages of our companies; fluctuations in exchange rates, particularly considering that we do not hedge such
fluctuations; and changes in income related to the acquisition or divestiture of interests in our companies, whose
results may also be subject to significant fluctuations; impairments of goodwill and other assets; and seasonal
fluctuations and other external forces, such as weather conditions. Accordingly, we believe that period-to-period
comparisons of the Issuers results do not provide the most accurate portrayal of our performance. Any
fluctuations in the Issuers interim or annual financial results could have a material adverse impact on the
Issuers share price and may lead to significant losses for potential investors in this offering.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Potential investors in this offering have to make an investment decision based on limited historical
information that does not reflect the operating performance of our unconsolidated companies.
The Issuer currently prepares its financial statements on the basis of German Generally Accepted
Accounting Principles (German GAAP), which differ from International Financial Reporting Standards as
issued by the International Accounting Standards Board and adopted by the European Union (IFRS) in many
ways. For example, the scope of consolidated entities may deviate between German GAAP and IFRS. As under
IFRS voting rights are not the only determining factor for control, the scope of consolidation may be extended
once Rocket Internet assumes IFRS reporting standards. Further, the Issuer accounts for investments in associates
using the equity method under German GAAP. The equity pick up for the respective associate was based on
available financial statements, in most cases the respective annual (standalone) financial statements, but in some
cases consolidated financial statements. Under IFRS, where the associated company is a group that has own
subsidiaries, joint ventures and associates of its own, the net assets and profits and losses recognized in the
associates consolidated financial statements should be taken into account, which means that we may be required
to draw up additional consolidated financial statements, which will result in additional work and may negatively
impact our financial situation and may lead to a significant deterioration of our consolidated results of operation.
Other examples of areas where German GAAP and IFRS differ are the amortization of goodwill and the
treatment of share-based compensation.
The Issuer was not required to prepare consolidated financial statements for 2011 or 2012 and, under
German GAAP, the Issuer was not required to include comparative consolidated financial information for 2012
in its audited consolidated financial statements for 2013. Accordingly, there is less historical financial
information for Rocket Internet than would typically be available in connection with an initial public offering.
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The Issuers audited consolidated financial statements do not fully reflect the financial performance of
our companies. Because the Issuer does not control most of our largest and most mature companies, which we
refer to as proven winners, and certain of our growing companies which have already achieved significant size,
which we refer to as emerging stars, the Issuer does not fully consolidate these companies in its consolidated
financial statements, but account for them at cost or equity. This means that their revenues and costs are not
included in the Issuers consolidated income statement. To the extent the Issuer has significant influence over a
company, it is consolidated at equity, which means that the Issuer accounts for it at equity. This means that the
Issuers share of any net operating gain or loss of such company impacts the line item Income/loss from
associated companies in its consolidated income statement. Finally, over a number of companies, the Issuer
does not even have significant influence, which means that they are accounted for at cost and their results are
generally not included in the Issuers consolidated income statement. Due to the absence of control over our
unconsolidated companies and our companies accounted for at equity, neither the Issuer nor our potential
investors in this offering will have unrestricted access to the financial statements of these companies and other
information relating to them.
As a result, potential investors in this offering will have to base their investment decision on limited
audited financial information that does not reflect the operating performance of our unconsolidated companies.
An investment in the Issuer may not be a suitable investment for all investors.
The Issuer does not have reliable financial information for a number of companies in its network of
companies and other participations.
According to available financial information, our proven winners, emerging stars, regional Internet
groups, concepts, strategic participations and other investments (excluding results of participations that belonged
to the Global Founders Capital Fund portfolio and were contributed in August 2014), were, each in the aggregate,
loss making (based on the respective last financial year). However, with the exception of the proven winners, we
are not in possession of information that would allow us to reliably quantify the aggregate loss of the companies
in any other category. For our proven winners, the Issuer has reliable and meaningful financial information and
has disclosed the losses and certain other financial indicators in this prospectus. In the aggregate, our proven
winners generated net losses of 442 million (unaudited sum total of their net losses based on generally accepted
accounting principles applicable for the relevant company, in each case taking the last financial year for which
data was available and excluding extraordinary gains of Dafiti resulting from the measurement of limited
partnership interests). For our emerging stars, the Issuer has reliable and meaningful financial information only
for CupoNation, Lendico, Paymill and Zencap. For the other emerging stars and the regional Internet groups,
concepts, strategic participations and other investments, the Issuer does not have reliable and meaningful
financial information. As a result, potential investors will have to base their investment decision on limited
financial information. An investment in the Issuer may not be a suitable investment for all investors.
The Issuer anticipates changing its accounting methodology from German GAAP to IFRS, which could result
in unfavorable accounting charges or effects and could adversely affect its reported operating results.
The Issuer currently plans to change its accounting methodology from German GAAP to IFRS, a
process that may distract its management team from implementing our investment and overall business
strategies. As a result of this transition, its financial results may look different from, and be difficult to compare
with, its previous financial results. There is no guarantee that the fair values of our companies as determined
under IFRS would be the same or similar to the valuations of our companies as disclosed in this prospectus. In
addition, its overall financial performance may appear worse under IFRS than German GAAP, which may have a
negative impact on the value of the Issuer and our companies. Implementation of IFRS may take longer and cost
more than we anticipate.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
If we are unable to accurately assess our operating performance through certain key performance indicators,
our ability to determine and implement appropriate business strategies may be impaired.
We assess our operating performance using a set of key performance indicators, which include the
number of total customers, unique visitors, active users, mobile users, total orders and gross merchandise
volume. Capturing accurate data is subject to various limitations, also given the limited operating history of most
of our companies, and there is no assurance that our data collection technologies and tools are always accurate.
For example, we may need to collect certain data from mobile carriers or other third parties, which limits our
16
ability to verify the reliability of such data. Such data can also not be audited by an independent auditor. We also
may not be able to collect data from third parties at all. Furthermore, because financial reporting frameworks lack
standardized definitions for key performance indicators, the key performance indicators of our companies may
not be comparable to those of our competitors or even to those of our other companies. There is no guarantee that
the information we have collected thus far is accurate or reliable. As a result, the key performance indicators that
we use may not reflect our actual operating or financial performance and are not reliable indicators of our current
or future revenues or profitability. Potential investors in this offering should therefore not rely on these indicators
as a basis for their investment in the Issuers shares.
The management of our companies businesses and the development of their growth strategies depend
on accurate measurement of the numbers of and trends in our unique visitors, mobile users and other key
performance indicators derived from these metrics. If our measurements of these key metrics are incomplete or
inaccurate, our business and strategic decisions may be suboptimal or wrong. Furthermore, if a significant
understatement or overstatement of our active user, subscriber or other key performance indicators were to occur,
the market might perceive us to have inadequate systems and lose confidence in the accuracy and reliability of
the information we report.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Legal and Regulatory Risks
Government regulation of the Internet and e-commerce is evolving, may change in a manner that is
unfavorable and we may fail to comply with applicable regulations and unfavorable changes or our failure to
comply with these regulations may substantially harm our business, financial condition, cash flows, results of
operations and the value of the Issuers direct and indirect interests in our companies.
Government regulations and legal uncertainties may place financial burdens on the businesses of the
companies in our e-commerce, marketplace and financial technology sectors. As the Internet continues to
revolutionize commercial relationships on a global scale, and as the use of the Internet and mobile devices in
everyday life becomes more prevalent, new laws and regulations relating to the Internet may be adopted. These
laws and regulations may cover issues such as the collection and use of data from website visitors and related
privacy issues, pricing, content, copyrights, trademarks, online gambling, distribution and quality of goods and
services. The adoption or modification of laws or regulations relating to the Internet could adversely affect the
business of our companies by increasing their costs and administrative burdens. In addition, privacy-related
regulation of the Internet could interfere with the strategies of our companies that collect and use personal
information as part of their marketing efforts or businesses.
Laws and regulations directly applicable to communications or commerce over the Internet are
becoming more prevalent. For instance, the European Union has enacted a data protection and privacy directive
requiring all Member States to implement laws relating to the processing and transmission of personal data. We
must comply with these regulations in the European Union, as well as with other regulations in other countries
where our companies may do business. In addition, the growth and development of the e-commerce market may
prompt calls for more stringent consumer protection laws, both in the European Union and abroad. In addition,
we cannot rule out that any personal data is misused by us or third parties.
Further, even the current legal framework requires us to comply with a number of laws, rules and
regulations. While we are currently not aware of any material breach by us of these laws, rules and regulations,
we cannot rule out that we may not have been in full compliance with these provisions in the past.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows and results of operations, and directly or indirectly on the Issuers
business, financial condition, cash flows, results of operations and the value of its direct and indirect interests in
our companies.
Conducting business in 116 countries requires us to comply with numerous, complex and sometimes
conflicting legal and regulatory requirements.
The Issuer is one of the leading Internet platforms outside the United States and China, with activities in
Europe, Latin America, Russia, Asia Pacific (excluding China) and Africa and the Middle East. As a result, we
are subject to laws and regulations in each of the over 100 jurisdictions where our companies operate. As we
expand our international operations to target customers in all countries other than the United States and China,
17
the number of laws and regulatory regimes which we are subject to will increase. Laws applicable to our
international business include local employment, privacy, data security, telecommunications, online content,
intellectual property protection, corporate, tax, finance, money laundering, online payment, anti-corruption and
international sanctions. These various laws and regulations are often evolving and sometimes conflict. While we
are not aware of any material breach by us of applicable laws and regulations, we cannot rule out that we may not
have been in full compliance with these laws and regulations in the past.
Many of our markets are challenging in their complexity, and our companies must develop solutions to
address each challenge, including the problem of opaque legal systems. At any time, authorities in the countries
where we operate may require new and additional licenses, permits and approvals from us and potentially some
of our users. There is no assurance that any required licenses, permits and approvals can be obtained in a timely
or cost-effective manner. In addition, authorities may revoke existing licenses and we may not be made aware or
able to appeal any such revocations in a timely manner or at all.
Our companies operate mainly in three focus sectors, e-commerce, marketplace and financial
technology, each of which is subject to a different set of laws and regulations particular to that sector.
Compliance with the complex national, regional and international laws and regulations that apply to each
segment of our operations increases our cost of doing business, interferes with our ability to operate
competitively in one or more countries and may require changes in business practices that result in reduced
revenue. For example, due to restrictions on foreign investment, Jabong, FabFurnish, OfficeYes and Printvenue
our e-commerce companies in India, are in fact wholesale companies that do not sell to consumers in India. They
work together with independent third parties in India, which enter into contracts with, and deliver products to,
Indian consumers. As the application of foreign direct investment laws and regulations, license rules and similar
rules and regulations is often unclear, they are subject to multiple interpretations, particularly by different courts,
regulators and other players in the legal community, which may differ from the interpretations we chose.
Furthermore, the applicable legal framework may change to our detriment, including in response to lobbying
efforts by competitors. In addition, in particular the rendering of logistics services is subject to intense regulation.
There is no assurance that the competent authorities will interpret the applicable laws and regulations, including
the German Capital Investment Act and the European Directive on alternative investment funds, in the same way
as we and our partners do and will not object to our and our partners operations, which could lead to the
imposition of fines and could require us and our partners to abandon our activities.
As these laws continue to evolve and our companies expand into jurisdictions where we are not already
present, compliance will become more complex and expensive, and the risk of noncompliance will increase. The
risk of noncompliance may also arise from the rapid, highly standardized process in which we identify and enter
a target market and from the pressures to build a company and scale up to a market leadership position before our
competitors do so. In order to allow for swift execution, we sometimes have to make executive decisions in
which taking a risk may have to be weighed against the advantages of moving forward quickly. While we seek to
clear any remaining risks as quickly as possible, we may not have enough time to analyze each legal risk in
detail.
Safeguards to discourage violations of applicable laws by our management and employees may prove
less effective than anticipated. It cannot be ruled out that employees of the Issuer or of our companies will
violate, or have violated, legal or regulatory provisions. Also, it cannot be ruled out that employees, agents or
authorized persons of the Issuer or our companies, in connection with the negotiations of agreements, licenses,
permits, regulatory approvals or inspections, have accepted, granted or promised advantages or will accept, grant
or promise such advantages or have engaged, currently engage or will engage in unfair business practices. The
rapid growth of our companies and the limited experience of our management team and the management teams
of our companies may further impair our ability to detect such violations.
Compliance violations may harm our reputation and result in legal actions, severe criminal and civil
sanctions, or administrative fines and penalties against the Issuer or our companies, or members of their
governing bodies and their employees. They may also result in damage claims by third parties or other adverse
legal consequences, including class action lawsuits and enforcement actions by national and international
regulators resulting in the limitation or prohibition of our conduct of business. There is no guarantee that we can
successfully manage or avoid any of the legal risks to which we are exposed, and noncompliance with the legal
and regulatory frameworks that govern our operations, whether intentional or not, may have substantial
consequences for our companies, including causing them to cease their operations entirely.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
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Our companies do business in certain countries where corruption is considered to be widespread, and we are
exposed to the risk of extortion and violation of anti-corruption laws and regulations.
Anti-corruption laws and regulations in force in many countries generally prohibit companies from
making direct or indirect payments to civil servants, public officials or members of governments for the purpose
of entering into or maintaining business relationships. Our companies conduct business in, or may expand their
business to, certain countries where corruption and extortion are considered to be widespread, and our companies
may require approvals from, or completing certain formalities with, public officials. As a result, we are exposed
to the risk that employees, agents or authorized persons of the Issuer or our companies could make payments or
grant hidden benefits in violation of anti-corruption laws and regulations, especially in response to demands or
attempts at extortion. In addition, we have not yet developed substantial internal controls or prevention and
training programs designed to promote best practices and discourage such violations, and our current internal
controls, prevention and training programs may prove to be insufficient. Employees, agents or authorized persons
of the Issuer or our companies may have been or could be engaged in activities for which we or our relevant
officers could be held liable.
In addition, some anti-corruption laws and regulations may require that proper books and records be
maintained, and that controls, procedures and internal regulations be implemented in order to ensure that the
operations of a given entity do not involve corruption, illegal payments or extortion. The great diversity and
complexity of these local laws and regulations and the expansive nature of the business conducted by our
companies in various countries and markets create a risk that, in some instances, we may be deemed liable for
violations of local laws and regulations, in particular, in connection with a failure to comply with those laws and
regulations relating to books and records, or reporting, among others.
Any violation or breach of these anti-corruption laws and regulations could affect the overall reputation
of the Issuer or our companies and, depending on the case, expose us to administrative or judicial proceedings,
which could result in criminal and civil judgments, including a possible prohibition on maintaining business
relationships with suppliers or customers in certain countries.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Our e-commerce companies may become liable to their customers and lose customers if they have errors or
defects in their products or services or disruptions in their service.
Companies in our e-commerce sector sell retail products to customers online and deliver these products
to the desired destination, a business model which entails an inherent risk of product liability. The broad
assortment of goods offered by our e-commerce companies, which includes fashion items, general merchandise,
home and living retail products, groceries, and stationary supplies, exposes us to potential liability in a wide
variety of product liability claims. There is no guarantee that our e-commerce companies will be able to maintain
or acquire adequate product liability insurance in the future to cover the risks of their business. In addition to the
direct financial impact of claims made against our companies products, such claims may damage our reputation
or the reputation of our e-commerce companies, which in turn could impact their ability to retain a loyal user
base and negatively impact their revenue and profitability. As a result, any product liability claim could have a
material adverse effect on a companys business, financial condition, cash flows and results of operations, and
indirectly on the Issuers business, financial condition, cash flows, results of operations and the value of its
interests in our companies.
Our marketplace companies may be subject to allegations and lawsuits concerning the content of their
websites or claiming that items listed on their websites are pirated, counterfeit or illegal.
Our marketplace companies operate a platform where third-party sellers can offer their products and be
in direct contact with customers. It is possible that customers or regulatory authorities will allege that items
offered or sold through our marketplace companies by third-party sellers infringe third-party copyrights,
trademarks and patents or other intellectual property rights. Our companies may therefore be subject to
allegations of civil or criminal liability for unlawful activities carried out by third parties through their online
marketplaces. Furthermore, third-party sellers whose content is removed or items are delisted by the relevant
company, regardless of the companys compliance with the applicable laws, rules and regulations, may dispute
their actions and commence action against the company for damages based on breach of contract or other causes
of action or make public complaints or allegations. The public perception that counterfeit or pirated items are
commonplace on any of our online marketplaces or any costs incurred as a result of liability or asserted liability
relating to the sale of unlawful goods or other infringement could harm our reputation and brand.
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All of our companies operate largely by making content available to users through the Internet. This
creates the potential for claims to be made against us based on, for example, defamation, negligence, personal
injury, invasion of privacy or other legal theories. Providers of Internet products and services have been sued in
the past, sometimes successfully, based on the content available through their websites. Much of the content
provided by our companies on their websites is drawn from information compiled by outside sources, and this
information may contain errors. If the website content of any of our companies is improperly used, or if any of
them supply incorrect information or publish allegedly infringing material, they could be subject to liability.
Moreover, any of our companies that incur this type of liability may not have insurance or sufficient coverage to
cover such claims. If any of our companies incur substantial costs because of this type of liability, their expenses
will increase and their profits, if any, will decrease, which may also limit their growth.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows and results of operations, and directly or indirectly on the Issuers
business, financial condition, cash flows, results of operations and the value of its direct and indirect interests in
our companies.
Our financial technology companies are subject to numerous and stringent regulations in the jurisdictions
where they operate.
We recently broadened our portfolio by starting companies in financial technology, i.e., platforms
enabling the intermediation of payments and finance between parties. Lendico (launched in 2013), Zencap
(launched in 2014), Spotcap (launched in 2014) and our other financial technology companies operate in a highly
regulated industry. In most countries, consumer credit regulatory agencies regulate and enforce laws relating to
consumer lenders and sales finance companies, to which our financial technology companies are typically
subject. The legal and regulatory framework under which many of our financial technology companies, and in
particular our peer-to-peer companies, operate is often based on our interpretation of existing laws or regulations.
Because the application of these laws and regulations is often unclear, they are subject to multiple interpretations,
particularly by different courts and regulators, which may differ from the interpretations we chose. It cannot be
excluded that the Issuer may become liable to damage claims or any claims in relation thereto. Furthermore, new
proposals for legislation may continue to be introduced that could substantially increase regulation of the
financial technology industry or impose restrictions on our operations and our ability to implement our business
strategy.
Any violation of these laws and regulations by our financial technology companies could have a
material adverse effect on our business, financial condition, cash flows, results of operations and the value of the
Issuers direct and indirect interests in our companies, and directly or indirectly on the Issuers business, financial
condition, cash flows and results of operations.
We may be subject to litigation proceedings that could disrupt and harm our business.
We may be subject to legal claims involving shareholder, consumer, competition and other matters.
Litigation is subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could
include monetary damages or, in cases for which injunctive relief is sought, an injunction prohibiting one or
more of our companies from performing a critical activity, such as selling its products or services. If we were to
receive an unfavorable ruling in a litigation matter, our businesses, financial condition, the value of our interests
in our companies, cash flows and results of operations could be materially harmed. Even if legal claims brought
against us are without merit, defending lawsuits could be time-consuming and expensive and could divert
managements attention from other business concerns.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We may not be able to adequately protect our intellectual property rights or may be accused of infringing the
intellectual property rights of third parties.
Our companies execute business concepts that are often new to the geographic markets in which they
operate. In support of this innovation, we typically develop proprietary techniques, trademarks, processes and
software, which may constitute an important part of our assets and competitive strengths and those of the
respective company. The complexity of international copyright, trademark, patent and trade secret law, coupled
with the limited resources of these young companies and the demand for quick delivery of products and services
to market, create risks that efforts to protect such rights will prove inadequate. It is also possible that third parties
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may develop similar intellectual property independently. Further, the nature of Internet business results in
considerable detail about us being exposed to our competitors in order for our websites to attract customers. We
may be unable to prevent third parties from acquiring domain names that are similar to, infringe upon or
otherwise decrease the value of our trademarks and other proprietary rights. The failure to adequately protect our
intellectual property could lead to a loss of customers to competitors and a corresponding loss in revenue and
may render certain of our companies unprofitable or unable to effectively compete in the market.
At the same time, our business model involves transposing proven business concepts into new, untapped
markets, with the risk that third parties may assert claims against us based on their patents and other intellectual
property rights related to those business concepts. We may have to pay substantial damages if we infringe third
party patents or other intellectual property rights. Our companies may have to obtain a license to sell their products
if it is determined that their products infringe on another persons intellectual property, and they may be forced to
change their goals, operations or strategies based as infringement or potential infringement of third party intellectual
property. We might be prohibited from selling our products before we obtain a license, which, if available at all,
may require us to pay substantial royalties. Some of our companies already license content from third parties, and it
is possible that they could become subject to infringement actions based upon the content licensed from those third
parties, if, for instance, the licensing terms of open source software used by our companies were to change.
Representations as to the ownership of such licensed content may not adequately protect our companies. Even if
infringement claims against us are without merit, defending these types of lawsuits takes significant time, is
expensive and may divert management attention from other business concerns. In addition, it cannot be excluded
that the Issuer may become liable to damage claims or any claims in relation thereto.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
As we use a large number of very similar shareholders agreements, if a court were to invalidate one or more
of our standardized shareholders agreements, the validity of a large number of our shareholders agreements
could be in jeopardy; additionally, we may not be in compliance with all the provisions of our various
shareholders agreements and other agreements.
We typically enter into shareholders agreements or investment agreements in connection with financing
rounds, and these agreements typically have terms and conditions that are substantially similar to each other.
While we believe the terms of our agreements are enforceable and would be held up if challenged before a court,
there is no guarantee that a judge would not invalidate or void all or a portion of our shareholders agreements. If
one or more of our agreements were to be invalidated or voided for any reason, the validity of all our other
agreements with similar terms may also be challenged, and may subsequently be found to be unenforceable.
In addition, we may not currently be, and may not be in the future, in compliance with all of the
provisions under our various shareholders agreements. For example, we may have taken a decision that would
require the approval of the other shareholders, such as a decision on a major investment, without having
consulted with and having obtained the prior approval of the other shareholders.
Further, we are an organization that has been growing rapidly and has entered into a large number of
contractual arrangements with a significant number of different counterparties. While we currently have no
indication of an ongoing material breach by us of an agreement to which we are a party, we have violated certain
terms of agreements to which we are a party in the past and cannot rule out that we will violate agreements in the
future.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Tax Risks
As a fast growing and internationally expanding network of companies which has experienced a large number
of significant exits, mergers and restructurings in quick succession, we face unsettled tax questions and it is
more difficult for us to assess potential tax risks arising from unaudited fiscal years and we may therefore
more likely be required to pay significant additional taxes following future tax audits and ongoing tax
assessments than more established companies.
As a fast growing and internationally expanding company, we face unsettled tax questions and it is more
difficult for us to assess potential tax risks arising from unaudited fiscal years than it is for more established
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companies. For instance, following the Issuers most recently tax audited fiscal year 2009, we have experienced a
large number of significant exits, mergers and restructurings in quick succession, changes in the shareholding
structure of our network of companies and other reorganization measures. The taxation of many of these
transactions depends, among other things, on the accurate assessment of the fair market value of shares in
privately-held legal entities or the absence or existence of certain tax-relevant intentions. There is no assurance
that the tax authorities will agree with the valuations on which we have based our reporting of these transactions
or the tax positions that we have taken. In addition, tax authorities may take the view that built-in gains (stille
Reserven) may have been inadvertently realized resulting in an increase in our taxable income. Similar risks exist
with respect to our companies, regional groups and local entities, both in the country of their incorporation as
well as in the countries in which they operate.
After the initial public offering, the market price of our shares will be an indicator of our fair market
value. Therefore, tax authorities may try to derive historic valuations of our companies and shareholdings from
the market valuation of the Issuer. We cannot rule out that, with the benefit of hindsight, tax authorities may
claim that certain transactions intended to be implemented at fair market value or at arms length do not meet
these requirements.
Given that the Issuers fiscal years from 2010 onwards as well as most of our companies and holding
companies have not yet been audited by the relevant tax authorities, we cannot rule out being required to pay
significant additional taxes following tax audits, which we expect to be conducted in the near future. Besides this,
as some of our companies have historically been late in filing their tax declarations, no tax assessments have
been received for some of our companies in recent years. Any tax assessments that deviate from our expectations
could lead to an increase in the Issuers and our companies tax obligations and, additionally, could give rise to
interest payable on the additional amount of taxes as well as late filing charges.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
If tax authorities deem the Issuer to fall within the scope of the short-term profit rule, its dividend income and
capital gains received or realized since 2009 could become fully taxable.
The Issuer is operating in the fast-changing and rapidly transforming Internet industry, which requires
us to constantly adapt our long-term strategy with regard to certain companies to new market trends and business
innovations. From time to time, this business environment has forced us to review our strategy regarding certain
companies, and to divest of or merge significant holdings after a short holding period. In other cases, new
ventures have proven to be instant successes and outgrew our platform within months after their formation, thus
requiring us to sell these participations far earlier than anticipated. We may be scrutinized by the competent tax
authorities with a view to assess whether our exits, mergers, reorganizations or other transaction fall within the
scope of the short-term profit rule under German tax law.
Subject to certain exceptions, inter alia for portfolio dividends, dividend income and capital gains from
the sale of shares in incorporated companies are effectively 95% exempt from German corporate income tax,
trade tax and solidarity surcharge. If, however, the tax authorities deem the Issuer to be a financial enterprise
within the meaning of the German Banking Act (Gesetz ber das Kreditwesen), which according to the Federal
Fiscal Court (Bundesfinanzhof) includes industrial holding companies that follow a strategy of holding and
developing subsidiaries, the Issuer may lose its tax exemption for dividend income and capital gains from each of
its shareholdings if the tax authorities determine that the Issuer acquired the respective shareholding with the
intent to make a short-term profit for its own account. To this end, tax authorities may claim that it may be
inferred from the factual circumstances of certain transactions in which newly-founded or acquired participations
have been divested within a short period of time, that these shareholdings were acquired with the intent to make a
short-term profit or that the overall business strategy of the Issuer is to make such short-term profits. Similar
considerations may arise with regard to mergers and other share-for-share transactions in which we have
contributed shares at book value (i.e., in a tax-neutral way) into Group entities. In this case, taxes on capital gains
arising out of such transaction on the side of the contributing party may be triggered with retroactive effect if the
contributed participation is resold within a claw-back period of seven years.
While we believe that despite our constant transformation and certain instantaneous business successes
there is ample evidence that our business model of being an operative Internet company has nothing in common
with those businesses originally targeted by the short-term profit rule, we cannot rule out that the Issuer will be
deemed to be a financial enterprise subject to this rule. In this event, all or parts of the Issuers dividend income
and capital gains received or realized since 2009, which we consider to be effectively 95% tax exempt, would
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become fully taxable, which would give rise to interest payable on the additional amount of taxes. If the German
tax authorities were to deem the capital gains on the sale of shares and the dividend income received as
short-term profits, the Issuer could be required to pay additional taxes in a double- or up to three-digit million
Euro amount in the aggregate for the fiscal years 2010 through 2013. A similar risk could arise if tax authorities
were to re-characterize income that we treated as dividend income or capital gains into another category of
income (e.g., service income) triggering a higher tax rate.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Certain of our cross-border business dealings may trigger unforeseen adverse tax consequences.
We are an internationally operating enterprise continuously engaged in cross-border business dealings
which may trigger unforeseen adverse tax consequences in Germany and abroad.
For instance, in 2013, we changed the legal form from one of our German limited partnerships
(GmbH & Co. KG) which holds shares in an Indian company into a German company with limited liability
(Gesellschaft mit beschrnkter Haftung). While such change of legal form at book-value is considered to be tax
neutral in most jurisdictions, such transaction may have triggered adverse tax effects in India.
Furthermore, we may be unaware of or infringe tariffs, quotas, customs and export control regulations,
trading bans or similar restrictions, and thereby be exposed to the risk of fines and sanctions.
Besides this, a number of our holding companies have been incorporated in foreign jurisdictions. In
order to establish or maintain a tax domicile in these jurisdictions, certain substance requirements, such as
maintaining the principal place of management in the respective jurisdiction, must be satisfied. However, given
the mobility of our management teams, the fact that many of the management decisions within the Group are
taken by electronic means rather than in physical meetings and the presence of our Berlin headquartered staff in
the day-to-day business of our companies, we cannot rule out that foreign or German tax authorities could deem
our holding companies factual nexus to the respective jurisdiction insufficient to establish or maintain a tax
domicile in the relevant jurisdiction or deem our holding company to have switched their tax domiciles back and
forth between jurisdictions. Such assessment could result in exit taxation, double taxation, additional tax
payments and other adverse tax consequences. Further, the failure to comply with substance requirements
stipulated by the relevant tax laws could give rise to contractual claims from commercial investors who invested
in the respective holding companies based on the understanding of a certain pre-defined tax domicile thereof.
In connection with the implementation of employee participation schemes, particularly at the level of
our companies, additional tax obligations may arise for us. This may be the case if the relevant tax authorities
consider the employee participations as taxable benefits. Since these employee participation programs have been
set up in foreign countries without the assistance of local tax counsel, no assurance can be given that these
programs will be treated as income tax-neutral incentive schemes under the relevant local law. Even in
jurisdictions where we treat employee participations as taxable benefits, the determination of the value of the
taxable benefit in the form of shares in the newly established company may be uncertain. Therefore, we cannot
rule out that we may be faced with potential additional tax liabilities.
When implementing new business ideas, certain intellectual property rights, e.g., trademarks and logos,
have been registered for the account of regional holding companies, while our subsequently formed local entities
invested in the brands and used these intellectual property rights free of charge. No final determination on the tax
treatment of intellectual property has been made so far and we are therefore faced with legal uncertainty
regarding, among other things, the tax domiciliation (steuerliche Belegenheit) of these rights.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
The spin-off of Zalando and the subsequent redemption of shares in the Issuer held by Rocket Beteiligungs
GmbH may result in a significant additional tax burden.
On July 8, 2013, the Issuer made a constructive contribution (verdeckte Einlage) of its 34,440 shares in
Zalando to a wholly-owned subsidiary of the Issuer, which was later renamed Rocket Beteiligungs GmbH
(Rocket Beteiligung). Immediately upon receipt of the shares in Zalando on July 8, 2013, Rocket Beteiligung
sold and transferred these shares in Zalando to GFG and Emesco AB (Emesco) in accordance with their
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proportional shareholdings in the Issuer. Simultaneously, GFG and Emesco sold and transferred initially
43,050 shares in the Issuer to Rocket Beteiligung. This consideration was subsequently reduced to 38,597 shares
in the Issuer due to a purchase price adjustment mechanism. The mutual purchase price claims arising out of both
transactions were set off against each other (the entire foregoing transaction is hereinafter referred to as the
Zalando Spin-Off). On August 19, 2014, Rocket Beteiligung was merged into the Issuer, which thereby
acquired 38,597 treasury shares that were subsequently cancelled (the Share Redemption).
Both, the Zalando Spin-Off and the Share Redemption touch on many unresolved tax issues on which
guidance on point by the tax courts and tax authorities is missing and in some instances there is even case law of
the Federal Fiscal Court (Bundesfinanzhof) that may be interpreted as contrary to some of our positions.
Furthermore, the validity of the transaction structure hinges among other things on the accurate assessment of the
fair market value of the Issuer and of Zalando at the time of the transaction. No assurance can be given as to
whether the tax authorities will follow our interpretation of the relevant tax laws and our assessment of the
respective company values of the entities involved or whether they may seek to re-characterize these transactions
as, e.g., a tax avoidance scheme or a so-called constructive dividend (verdeckte Gewinnausschttung).
If the relevant tax authorities deny the tax-neutrality of the Zalando Spin-Off and the Share Redemption,
the former could trigger significant taxes (see also If tax authorities deem the Issuer to fall within the scope of
the short-term profit rule, its dividend income and capital gains received or realized since 2009 could become
fully taxable). Given the complexity and the scope of this transaction, it may entail further unforeseen adverse
tax consequences.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
The organizational setup of our tax compliance may not have been at all stages of our development sufficient
to meet the growing demands of a globally expanding organization.
Our success hinges on, among other things, our ability to rapidly transform ideas into business models
and to rollout newly formed businesses across numerous jurisdictions around the world at a faster pace than our
competitors. We have focused on the accelerated development of our business activities rather than on
optimizing the tax structure of our companies. It is therefore conceivable that as a consequence of our fast and
entrepreneurial culture, actions were taken that could trigger adverse tax consequences for us.
The size, the scope and the focus of our tax compliance efforts may not have been sufficient in the past
to meet the growing demands of a globally expanding organization. Given our Groups structure, our tax
department has to regularly deal with tax issues that go beyond the day-to-day management of our domestic tax
compliance, primarily on an ad-hoc basis, which may have led to decisions that could have adverse tax
consequences for us. When using external tax advisors, there is no guarantee that these external tax advisors had
all information and documentation necessary to provide their advice based on a reliable and comprehensive set of
facts.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We may be required to pay additional taxes if our intra-group transfer prices do not meet prevailing market
rates. Failure of our companies to fully comply with VAT requirements could trigger adverse tax
consequences, including an obligation to refund input VAT.
Our business model depends on the interplay between the Issuer and our companies, particularly the
flow of ideas, know-how, intellectual property and financing experience within our organization. This high
degree of interconnectivity results in transfers of services, shares, intellectual property, products and other goods
from and between the Issuer, its subsidiaries and affiliates in the meaning of sections 15 et seqq. Stock
Corporation Act (Aktiengesetz) and other entities the Issuer holds a stake in (hereinafter referred to as
Intra-Group Transfer).
Past and current Intra-Group Transfer prices, particularly those for services rendered by the Issuer,
including the provision of personnel, financing costs charged to affiliates and the rendering of advisory and other
services as well as the licensing of technology platforms to the Group entities could be deemed to not be at arms
length. Similar risks exist with regard to the transfer of Internet domains and IP at book value by the Issuer or
regional groups to the local entities in the early stage of the start-up phase.
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Additionally, in light of the fact that these intra-Group services are usually not offered to third parties
and the uncertainties surrounding the valuation of Internet domains and IP, it may become difficult for us to
mitigate Intra-Group Transfer price risks by documenting the prices, particularly paid in comparable transactions
by or with independent third parties. Besides this, the preparation of a customary transfer price documentation
may be delayed due to the need to hire an external auditor team which has the resources to prepare such transfer
price documentation for us.
Further, given the unique and highly specialized nature of the services the Issuer renders to its network
of companies many of our service level agreements underlying Intra-Group-Transfers and other transactions
were drafted in a general, sometimes imprecise manner and may therefore be deemed not to cover the services
actually rendered. Besides this, the statutory purpose as well as the actual business activities of certain Group
entities do not go beyond the holding and administration of participations. Such business focus may not qualify
as an entrepreneurial activity and could therefore trigger input VAT adjustments (Vorsteuerkorrektur).
Besides this, the business models of many of our companies are complex and the documentation
obligations under applicable VAT and VAT-related laws in Germany and other jurisdictions are considerable.
Therefore, it cannot be ruled out that certain of our companies may not fully comply, or, as the case may be, may
have not fully complied with applicable VAT regulations throughout all phases of their development.
If Intra-Group Transfer prices do not meet the arms length test or if tax authorities treat certain
transactions with regard to VAT aspects differently to how we would expect they will be treated and differently
from what the Issuer and its subsidiaries applied for in their respective VAT returns, additional tax payments
including gift taxes, could be assessed, input VAT adjustments (Vorsteuerkorrektur) could be required, double
taxation could become due and penalties as well as a reduction of current tax losses or tax loss carry-forwards,
among others, could arise and increase our tax burden.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
We are subject to the tax laws and regulations in Germany and numerous other countries. Our tax burden
may increase as a consequence of future tax treatment of dividend payments, non-deductibility of interest
payments, current or future tax assessments or court proceedings based on changes in domestic or foreign tax
laws and double taxation treaties or changes in the application or interpretation thereof.
We are subject to the tax laws and regulations of Germany and numerous other countries. Our tax
burden depends on various aspects of tax laws and regulations including double taxation treaties concluded, in
particular, between Germany and the countries in which we are operating, as well as their respective application
and interpretation. Amendments to tax laws and double taxation treaties, for example, an increase of statutory tax
rates or the limitation of double tax relief may have a retroactive effect, and their application or interpretation by
tax authorities or courts is subject to change. Furthermore, tax authorities occasionally limit court decisions to
their specific facts by way of non-application decrees. This may also increase our tax burden.
As a holding company, the Issuers ability to distribute dividends depends largely on dividend payments
made by its subsidiaries. Among other things, these intra-group distributions are subject to withholding tax
(Kapitalertragsteuer) on multiple intra-group levels. No assurance can be given that the taxation of intra-group
distributions may not negatively affect the Issuers ability to pay dividends in the future.
Thin-capitalization rules in various jurisdictions restrict the tax deductibility of interest expenses and the
possibility of companies to carry forward non-deducted interest expenses to future assessment periods. As the
interpretation of these rules is not entirely clear in many jurisdictions, it cannot be ruled out that the competent
tax authorities will take a different view regarding the tax deductibility of interest expenses than our Group
entities.
Group entities are or may become party to tax proceedings. The outcome of such tax proceedings may
not be predictable and may be detrimental to the Group.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
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Due to changes in the ownership structure of our companies, we may not be able to make use of current tax
losses, tax loss carry-forwards and interest carry-forwards.
While the Issuer has not accrued any material tax losses, tax loss carry-forwards or interest
carry-forwards as of December 31, 2013, our companies have accrued significant tax losses, tax loss
carry-forwards and interest carry-forwards in various jurisdictions. With regard only to Germany, the Issuer
estimates that, as of December 31, 2013, our companies have accrued corporate income tax loss carry-forwards
originated and generally usable in Germany in the amount of approximately 6.9 million, as well as current
accumulated trade tax losses amounting to approximately 13.5 million.
Given the number of significant mergers, exits, spin-offs and other reorganizational measures,
particularly at the level of our companies, regional groups and local entities, there can be no assurance that
current tax losses, tax loss carry-forwards or interest carry-forwards originated and generally usable in Germany
or in foreign jurisdictions may have been partially or completely lost. When implementing reorganizational
measures, our main objective is the swift execution of our business strategy including the procurement of
sufficient funding for our companies rather than the preservation of tax assets.
If all or a portion of these current tax losses, tax loss carry-forwards and interest carry-forwards of the
Issuer, its subsidiaries and affiliates in the meaning of sections 15 et seqq. Stock Corporation Act (Aktiengesetz)
and other entities the Issuer holds a stake in are lost, they could not be used to reduce our tax liabilities in any
period in which a taxable profit is generated. This might result in a higher future tax burden. In addition, tax loss
carry-forwards may have a significant impact on the value attributed by an investor to a company, a regional
group or a local entity in connection with a financing round. If the relevant entity were no longer able to use its
tax loss carry-forwards, this could have a material negative impact on the valuation of this entity.
The materialization of any of the risks described above could have a material adverse effect on our
business, financial condition, cash flows, results of operations and the value of the Issuers direct and indirect
interests in our companies, and directly or indirectly on the Issuers business, financial condition, cash flows and
results of operations.
Risks Related to Shares and the Offering
The market price of the Issuers shares could fall if any of these risks were to materialize, in which case
investors could lose some or all of their investment.
There is no existing market for the Issuers shares and the development of an active trading market may be
limited by the contemplated listing in the Entry Standard sub-segment.
There has not been a public market for the Issuers shares prior to this offering. The Issuer intends to list
its shares on the Open Market (Freiverkehr) (Entry Standard) of the Frankfurt Stock Exchange. Neither the Open
Market nor its sub-segment, the Entry Standard, is a regulated market within the meaning of the Markets in
Financial Instruments Directive (Directive 2004/39/EC). The Entry Standard sub-segment is designed primarily
for emerging or smaller companies, and imposes fewer obligations designed to protect investors of its listed
companies than EU-regulated markets. For example, the Issuer will not be required to prepare quarterly financial
statements, make ad-hoc announcements or conduct analysts meetings and prepare and continuously update a
financial calendar.
Because of its focus on emerging or smaller companies, investments in shares traded on the Open
Market and its sub-segment, the Entry Standard, traditionally carry a higher degree of risk than investments in
shares quoted on EU-regulated markets. In addition, the shares to be sold in the offering represent only 23.98%
of the Issuers share capital. Further, all of the Issuers existing shareholders are subject to lock-up agreements.
Accordingly, the market in the Issuers shares may be relatively illiquid or subject to fluctuation, and it may
therefore be more difficult for potential investors in this offering to sell any of the shares that they buy. We
cannot predict the extent to which investor interest will lead to an active trading market or how liquid that market
might become. Furthermore, there is no assurance that the Issuer will be able to up-list its shares to an EU-
regulated market in the future.
The market price and trading volume of the Issuers shares may deviate significantly from the offer price and
could fluctuate significantly.
As the initial public offering price for the Issuers shares will be determined by negotiations between the
Issuer and the underwriters, and based on demand for the shares during the offer period, it may not be indicative
26
of, and may deviate significantly from, prices that will prevail in the Open Market following this offering.
Following the offering, the trading volume and price of the Issuers shares may fluctuate significantly. If the
share price declines significantly, potential investors in this offering may be unable to resell the Issuers shares at
or above their purchase price. Securities markets in general and shares of Internet and technology companies in
particular have been volatile in the past. Some of the factors that could negatively affect the Issuers share price
or result in fluctuations in the price or trading volume of the shares include, for example, changes in our actual or
projected results of operations or those of our competitors, changes in earnings projections or the failure to meet
investors and analysts earnings expectations, investors evaluations of the success and effects of the strategies
described in this prospectus, as well as the evaluation of the related risks, changes in general economic
conditions, changes in shareholders and other factors. Additionally, general fluctuations in share prices,
particularly of shares of related companies or of companies in the same sector, could lead to pricing pressures on
the Issuers shares, even where there may not necessarily be a direct reason for this in our business or earnings
outlook. For instance, Kinnevik, one of the Issuers current shareholders, is a public company whose shares are
listed on the Stockholm Stock Exchange, and any fluctuation in Kinneviks share price could be attributed to
reasons related to us and have an impact on the Issuers share price.
The Issuer will have broad discretion in how it uses the proceeds from the offering, and if the Issuer fails to
use them effectively, the price of the Issuers shares may decline.
The Issuers management will have broad discretion in its use of the net proceeds of the offering. The
Issuer currently intends to use the net proceeds from the offering to fund the start-up of new companies and to
provide additional financing to existing companies. However, these plans may change and the Issuers
management could fail to use these proceeds to improve or maintain our operating results and financial condition
or enhance the value of the Issuers shares. Any failure to use the net proceeds from this offering effectively may
result in financial losses that could have a material adverse effect on our business, financial condition, cash
flows, results of operations and the value of the Issuers direct and indirect interests in our companies, and
directly or indirectly on the Issuers business, financial condition, cash flows and results of operations.
The Issuer currently does not intend, and may not be able to, pay dividends in the foreseeable future.
Under German corporate law, a company may only pay dividends if it shows unappropriated retained
earnings in its unconsolidated German Commercial Code (Handelsgesetzbuch, HGB) financial statements. The
Issuer currently intends to retain all available funds and future earnings, if any, to provide more equity capital to
our companies to support their operations and to position them to grow. The Issuer currently does not intend to
pay cash dividends in the foreseeable future. Even if the Issuer changed its policy and wanted to distribute
dividends, it may not be able to generate such unappropriated retained earnings and, accordingly, may not be able
to pay out dividends. In particular, as the Issuer is an operating holding company, the Issuers results will largely
depend upon liquidity events, such as dividend distributions from or the IPO of, or sale of its interests in, our
companies. The extent of any such cash flows to the Issuer in turn depends on the business, financial condition,
results of operation and cash flows of our companies. Absent a liquidity event, the Issuer may not report
unappropriated retained earnings in its unconsolidated HGB financial statements and/or may not have sufficient
liquidity in order to pay dividends to its shareholders. Even if a liquidity event should occur, the Issuer currently
intends to reinvest any proceeds in order to exploit our market opportunity. In line with its communicated policy,
the Issuer does not expect to pay dividends in the near to medium term.
As a result of the offering, the Issuer will face additional administrative requirements, including the
obligation to issue half-year interim financial statements for the first time.
Following the offering, the Issuer will for the first time be subject to the legal requirements of German
companies listed on a public stock exchange. These requirements include interim financial reporting concerning
the Issuers half-year results and other public disclosures of information. The Issuers accounting, controlling,
legal or other corporate administrative functions may not be capable of responding to these additional
requirements without difficulties and inefficiencies that may cause the Issuer to incur significant additional
expenditures and/or expose it to legal, regulatory or civil costs or penalties. In addition, nearly all of our
companies that are fully consolidated or accounted for at equity have a very limited history. This means that they
are currently in the process of establishing their internal accounting and reporting functions. The establishment of
these functions is complicated by the fact that nearly all of our companies that are fully consolidated or
accounted for at equity operate in foreign countries. If they are not in a position to deliver financial information
in the format that the Issuer requires, the Issuer may not be able to draw up our own financial statements in time
or to have any required audit completed in time.
27
Furthermore, the preparation, convening and conduct of general shareholders meetings and the Issuers
regular communications with shareholders and potential investors will entail substantially greater expenses. The
Issuers management team, part of which has limited experience managing a public company, will need to devote
time to these additional requirements that it could otherwise devote to other aspects of managing the Issuers
operations, and these additional requirements could also substantially increase time commitments and costs for
the Issuers accounting, controlling and legal departments and other administrative functions.
Any inability to manage the additional demands placed on the Issuer in the process of becoming or
being a company with publicly traded shares, as well as any costs resulting therefrom, could have a material
adverse effect on our business, financial condition, cash flows, results of operations and the value of the Issuers
direct and indirect interests in our companies, and directly or indirectly on the Issuers business, financial
condition, cash flows and results of operations.
Any future sales of the Issuers shares by its existing shareholders or investors acquiring shares in the
offering, including the so-called cornerstone investors, could depress the market price of the Issuers shares,
and our shareholders interests may deviate from, or conflict with, the Issuers interests.
Upon completion of the offering, GFG, the Issuers largest shareholder holding 52.3% of the issued
shares prior to the offering, will hold approximately 39.8% of the issued shares (assuming the placement of
32,558,140 new shares and exercise of the Greenshoe Option in full). Due to its relatively large shareholding,
GFG, owned by the Issuers co-founder and CEO, Oliver Samwer, and his two brothers, will be in a position to
exert substantial influence at the Issuers general shareholders meeting and, consequently, on matters decided by
the Issuers general shareholders meeting, including the appointment of supervisory board members, the
distribution of dividends, and any proposed capital increases. GFGs future stake in the Issuer would endow it
with the ability to block certain corporate measures that require the approval of the Issuers general shareholders
meeting. In addition, the interests of GFG may substantially deviate from, or conflict with, the Issuers interests
or the interests of the Issuers other shareholders. There is no assurance that GFG will exercise its influence over
the Issuer in a way that serves the interests of the Issuers other shareholders.
Moreover, there may be a significant adverse effect on the market price of the Issuers shares if any of
the Issuers large shareholders, in particular, GFG, Kinnevik, Access Industries, PLDT and United Internet, or
investors acquiring shares in the offering, including the cornerstone investors, were to sell substantial amounts of
the Issuers shares on the public exchange or if market participants were to become convinced that such sales
might occur. In addition, the value of the Issuers shares may fluctuate, and could significantly decline, based on
the valuations achieved in initial public offerings or other sales of interests in companies in which the Issuer
holds an interest. In the case of a change of control of GFG, certain investors would have the right under our
current shareholders agreements to require us to purchase their interests in the relevant company.
Future capitalization measures may lead to substantial dilution, i.e., a reduction in the value of the shares and
the control rights of existing shareholders interests in the Issuer. Future offerings of debt or equity securities
may adversely affect the market price of the Issuers shares.
We may require additional capital in the future to finance our business operations and growth. The
raising of additional equity through the issuance of new shares, the potential exercise of conversion or option
rights by holders of convertible bonds or bonds with warrants or the fulfillment of conversion obligations relating
to such bonds, which may be issued in the future, and the exercise of stock option rights which may be granted to
the Management Board members and certain other employees, may dilute shareholder interests. The Issuers
articles of association currently provide for the issuance of up to 60,051,127 additional shares as authorized
capital (which will be reduced by up to 37,882,353 shares to be issued in connection with the offering), and up to
58,587,727 additional shares as conditional capital. We may issue all of these shares without any action or
approval by the shareholders, and under certain limited conditions, for example in the event of a capital increase
against contributions in kind, without reserving any pre-emptive subscription rights for the shareholders. Because
the Issuers decision to issue securities in any future offering will depend on market conditions and other factors
beyond our control, we cannot predict or estimate the amount, timing or nature of future offerings. Thus, holders
of shares bear the risk that future offerings might reduce the market price of the shares and dilute their
shareholdings in the Issuer.
28
GENERAL INFORMATION
Financial information included in this prospectus as of a date other than, or a period other than the
years ended, December 31, 2011, December 31, 2012 or December 31, 2013 has been taken or derived from the
condensed interim consolidated financial statements as of and for the six months ended June 30, 2014 or the
accounting or controlling records of the Issuer or the companies and is unaudited. All the numbers relating to
participation quotas in the summary (except stated otherwise) are calculated on a non-diluted basis.
Certain Defined Terms
In this prospectus, unless the context otherwise requires,
we, us, our or Rocket Internet refers to the Issuer, together with our companies (our
companies refer to the proven winners, emerging stars, concepts, regional Internet groups,
intermediate holding companies and the companies in the categories strategic participations and
other investments that were founded by us)
companies refers to the proven winners, emerging stars, concepts, regional Internet groups and
intermediate holding companies
Access Industries refers to the Access Industries group of companies, which includes
AI European Holdings S. r.l., AI Linio Holdings LLC, AI Zencap Holdings LLC and
AI Lendico Holdings LLC
Africa Internet Group refers to Africa Internet Holding GmbH and the legal entities in which it
holds a direct or indirect stake
Asia Internet Group refers to Asia Internet Holding S. r.l. and the legal entities in which it
holds a direct or indirect stake
BaFin refers to the German Federal Financial Supervisory Authority (Bundesanstalt fr
Finanzdienstleistungsaufsicht)
Berenberg refers to Joh. Berenberg, Gossler & Co. KG, Hamburg, Germany
BigCommerce refers to TIN Brillant Services GmbH and the legal entities in which it holds a
direct or indirect stake
Bigfoot I refers to Bigfoot GmbH and the legal entities in which it holds a direct or indirect
stake
Bigfoot II refers to BGN Brillant Services GmbH and the legal entities in which it holds a
direct or indirect stake
BofA Merrill Lynch refers to Merrill Lynch International, London, United Kingdom (acting
under the marketing name BofA Merrill Lynch)
concepts refers to our smaller and/or younger companies that have yet to receive external
funding or have only recently received their first funding round. This category includes, among
other, the following companies: EatFirst, Spaceways, Shopwings, Spotcap and Tripda.
CupoNation refers to CupoNation Group GmbH together with the legal entities in which it
holds a direct or indirect stake and that operate under the CupoNation brand
Dafiti refers to Dafiti Latam GmbH & Co. Beteiligungs KG together with the legal entities in
which it holds a direct or indirect stake and that operate under the Dafiti brand
E&Y refers to Ernst & Young GmbH Wirtschaftsprfungsgesellschaft, Stuttgart, Berlin office,
Germany
EatFirst refers to Digital Services XXX S. r.l. together with the legal entities in which it holds
a direct or indirect stake and that operate under the EatFirst brand
EBIT refers to earnings before interest and taxes
EBITDA refers to earnings before interest, taxes, depreciation and amortization
emerging stars refers to the following companies: Wimdu, foodpanda, Helpling, Lendico,
Zencap, PAYMILL, CupoNation, FabFurnish and Zanui
Emesco refers to Emesco AB
29
EU-IFRS refers to the International Financial Reporting Standards as issued by the
International Accounting Standards Board and as adopted by the EU
FabFurnish refers to VRB GmbH & Co. B-181 KG together with the legal entities in which it
holds a direct or indirect stake and that operate under the FabFurnish brand
Facebook refers to Facebook, Inc., Facebook Ireland Limited, and Facebook Brazil
collectively
foodpanda refers to Emerging Markets Online Food Delivery Holding S. r.l. together with the
legal entities in which it holds a direct or indirect stake and that operate under the foodpanda,
hellofood and Delivery Club brands
Full IFRS refers to the International Financial Reporting Standards as issued by the
International Accounting Standards Board
German GAAP refers to the German Generally Accepted Accounting Principles
GFG refers to the Global Founders GmbH (formerly: European Founders Fund GmbH)
Global Founders Capital Fund refers to Global Founders Capital Fund GmbH & Co.
Beteiligungs KG Nr. 1
Google refers to Google Ireland Limited
Group refers to the Issuer and the legal entities that are fully consolidated in the Issuers
consolidated financial statements
Hellofresh refers to HelloFresh GmbH together with the legal entities in which it holds a direct
or indirect stake and that operate under the Hellofresh brand
Helpling refers to Helpling Group Holding S. r.l. together with the legal entities in which it
holds a direct or indirect stake and that operate under the Helpling brand
Home24 refers to Home24 GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Home24 and Mobly brands
Holtzbrinck refers to Holtzbrinck Ventures and its affiliates
Holtzbrinck Ventures refers to the following companies: HV Holtzbrinck Ventures Fund IV
LP, Holtzbrinck Ventures NM GmbH & Co. KG and HV Holtzbrinck Ventures Fund V
GmbH & Co. KG
intermediate holding companies refers to the following companies: Bigfoot I, Bigfoot II and
BigCommerce
Issuer refers to Rocket Internet AG, Berlin, Germany
J.P. Morgan refers to J.P. Morgan Securities plc, London, United Kingdom
Jabong refers to Jabong GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Jabong brand
Joint Bookrunners refers to the Joint Global Coordinators together with BofA Merrill Lynch,
Citigroup and UBS
Joint Global Coordinators refers to Morgan Stanley, Berenberg and J.P. Morgan
Jumia refers to Africa eCommerce Holding GmbH together with the legal entities in which it
holds a direct or indirect stake and that operate under the Jumia or Zando brands
Kinnevik refers to Investment AB Kinnevik and its affiliates
Lamoda refers to Lamoda GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Lamoda brand
Latin America Internet Group or LIG refer to MKC Brillant Services GmbH and the legal
entities in which it holds a direct or indirect stake
Lazada Group refers to Lazada Group GmbH together with the legal entities in which it holds
a direct or indirect stake and that operate under the Lazada and Lamido brands
Lendico refers to ECommerce Holding II S. r.l. together with the legal entities in which it
holds a direct or indirect stake and that operate under the Lendico brand
30
Linio refers to TIN Jade GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Linio brand
MEEH refers to Middle East eCommerce Holding GmbH and the legal entities in which it
holds a direct or indirect stake
Middle East Internet Group or MEIG refer to Middle East Internet Holding S. r.l. and the
legal entities in which it holds a direct or indirect stake
Millicom refers to Millicom International Cellular S.A. and its affiliates
Morgan Stanley refers to Morgan Stanley Bank AG, Frankfurt am Main, Germany
MTN refers to Mobile Telephone Networks Holdings (Pty) Limited and its affiliates
Namshi refers to Middle East eCommerce Holding GmbH together with the legal entities in
which it holds a direct or indirect stake and that operate under the Namshi brand
ooredoo refers to Ooredoo Q.S.C.
PAYMILL refers to Paymill Holding GmbH (formerly Brillant 1470. GmbH) together with
the legal entities in which it holds a direct or indirect stake and that operate under the PAYMILL
brand
PLDT refers to Philippine Long Distance Telephone Company
proven winners refers to the following companies: Dafiti, Lamoda, Zalora, Jabong, Namshi,
Lazada, Linio, Jumia, Home24, Westwing and Hellofresh
PwC refers to PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungsgesellschaft,
Frankfurt am Main, Berlin office, Germany
regional Internet groups refers to the following groups: Africa Internet Group, Asia Internet
Group, Middle East Internet Group and Latin America Internet Group
Rocket Beteiligung refers to Rocket Beteiligungs GmbH
Shopwings refers to Digital Services Holding XXI S. r.l. together with the legal entities in
which it holds a direct or indirect stake and that operate under the Shopwings brand
Spaceways refers to Digital Services XVII S. r.l. together with the legal entities in which it
holds a direct or indirect stake and that operate under the Spaceways brand
Spotcap refers to Spotcap Global S. r.l. (formerly Argentum Global S. r.l.) together with the
legal entities in which it holds a direct or indirect stake and that operate under the Spotcap brand
Tripda refers to Digital Services Holding XXIV S. r.l.
Underwriters refers to the Joint Bookrunners and the Joint Global Coordinators together
United Internet refers to United Internet Ventures AG
U.S. GAAP refers to the generally accepted accounting principles in the United States
Westwing refers to Westwing Group GmbH together with the legal entities in which it holds a
direct or indirect stake and that operate under the Westwing and Dalani brands
Wimdu refers to Wimdu GmbH together with the legal entities in which it holds a direct or
indirect stake and that operate under the Wimdu brand
Zalando refers to Zalando SE (formerly Zalando GmbH and Zalando AG)
Zalora refers to Zalora Group GmbH together with the legal entities in which it holds a direct
or indirect stake and that operate under the Zalora and The Iconic brands
Zanui refers to VRB GmbH & Co. B-131 KG together with the legal entities in which it holds
a direct or indirect stake and that operate under the Zanui brand
Zencap refers to Zencap Global S. r.l. together with the legal entities in which it holds a
direct or indirect stake and that operate under the Zencap brand
Other defined terms used throughout the prospectus are indicated in the text.
31
Responsibility Statement
Rocket Internet AG, with its registered office at Johannisstrae 20, 10117 Berlin, Germany, and
registered with the commercial register of the local court (Amtsgericht) of Charlottenburg, Berlin, Germany (the
Commercial Register), and docket number HRB 159634 B, together with Joh. Berenberg, Gossler & Co. KG,
Hamburg, Germany; J.P. Morgan Securities plc, London, United Kingdom; Morgan Stanley Bank AG, Frankfurt
am Main, Germany; Merrill Lynch International, London, United Kingdom (acting under the marketing name
BofA Merrill Lynch); Citigroup Global Markets Limited, London, United Kingdom and UBS Limited, London,
United Kingdom, have assumed responsibility for the contents of this prospectus pursuant to Section 5(4) of the
German Securities Prospectus Act (Wertpapierprospektgesetz), and declare that the information contained in this
prospectus is, to the best of their knowledge, correct and contains no material omissions.
If any claims are asserted before a court of law based on the information contained in this prospectus,
the investor appearing as plaintiff may have to bear the costs of translating the prospectus prior to the
commencement of the court proceedings pursuant to the national legislation of the member states of the
European Economic Area.
The information in this prospectus will not be updated subsequent to the date hereof except for any
significant new event or significant error or inaccuracy relating to the information contained in this prospectus
that may affect an assessment of the securities and occurs or comes to light following the approval of the
prospectus, but before the completion of the public offering or inclusion of the securities to trading, whichever is
later. These updates must be disclosed in a prospectus supplement in accordance with Section 16(1) sentence 1 of
the German Securities Prospectus Act (Wertpapierprospektgesetz).
Purpose of this Prospectus
For the purpose of the public offering of securities, this prospectus relates to 37,882,353 of the Issuers
ordinary bearer shares, each representing a notional value of 1.00 and with full dividend rights from January 1,
2014, consisting of:
32,941,177 newly issued bearer shares with no par value (Stckaktien) from a capital increase
against contribution in cash expected to be resolved by the Issuers management board on
October 6, 2014, to be approved by a committee of the Issuers supervisory board on the same day,
utilizing the authorized capital resolved by an extraordinary shareholders meeting on August 22,
2014 (Authorized Capital 2014) under exclusion of the subscription rights of existing
shareholders of the Issuer (the New Shares); and
4,941,176 existing bearer shares with no par value (Stckaktien) from the holdings of GFG in
connection with a possible over-allotment (the Over-Allotment Shares and, together with the
New Shares, the Offer Shares).
For the purpose of inclusion to trading on the non-regulated market (Entry Standard) of the Frankfurt
Stock Exchange (Frankfurter Wertpapierbrse), this prospectus relates to up to 32,941,177 of the Issuers New
Shares and 120,102,255 of the Issuers existing bearer shares (being the Issuers entire share capital following the
registration of the aforementioned capital increase) with no par value, each with a notional value of 1.00 and
with full dividend rights from January 1, 2014.
Forward-looking Statements
This prospectus contains forward-looking statements. A forward-looking statement is any statement that
does not relate to historical facts or events or to facts or events as of the date of this prospectus. This applies, in
particular, to statements in this prospectus containing information on our future earnings capacity, plans and
expectations regarding our business growth and profitability, and the general economic conditions to which we
are exposed. Statements made using words such as predicts, forecasts, intends, plans, or expects may
be an indication of forward-looking statements.
The forward-looking statements in this prospectus are subject to risks and uncertainties, as they relate to
future events, and are based on estimates and assessments made to the best of the Issuers present knowledge.
These forward-looking statements are based on assumptions, uncertainties and other factors, the occurrence or
non-occurrence of which could cause the Issuers actual results, including the financial condition and
profitability of the Group, to differ materially from or fail to meet the expectations expressed or implied in the
forward-looking statements. These expressions can be found in several sections in this prospectus, particularly in
the sections entitled Risk Factors; Managements Discussion and Analysis of Financial Condition and Results
of Operations; Markets and Competition; Business and Recent Developments and Outlook; and wherever
32
information is contained in the prospectus regarding our intentions, beliefs, or current expectations relating to our
future financial condition and results of operations, plans, liquidity, business outlook, growth, strategy and
profitability, as well as the economic and regulatory environment to which we are subject.
In light of these uncertainties and assumptions, it is also possible that the future events mentioned in this
prospectus might not occur. In addition, the forward-looking estimates and forecasts reproduced in this
prospectus from third-party reports could prove to be inaccurate (for more information on the third-party sources
used in this prospectus, see Sources of Market Data). Actual results, performance or events may differ
materially from those in such statements due to, among other reasons:
Changes in general economic conditions in the markets in which we operate, including changes in
the gross domestic product (GDP), unemployment rate, the level of consumer prices, wage
levels, etc.;
Changes in the markets in which we operate, including changes in Internet penetration rates and
smartphone penetration rates;
Changes in the competitive environment;
Changes in the investment market;
Changes affecting interest rate levels;
Changes affecting currency exchange rates;
Changes in laws and regulations;
Changes in taxes, including changes in tax rates.
Moreover, it should be noted that neither the Issuer nor any of the Underwriters assume any obligation,
except as required by law, to update any forward-looking statement or to conform any such statement to actual
events or developments. Nevertheless, the Issuer has the obligation to disclose any significant new event or
significant error or inaccuracy relating to the information contained in this prospectus that may affect an
assessment of the securities and occurs or comes to light following the approval of the prospectus, but before the
completion of the public offering or the inclusion of the securities to trading, whichever is later. These updates
must be disclosed in a prospectus supplement in accordance with Section 16(1) sentence 1 of the German
Securities Prospectus Act (Wertpapierprospektgesetz).
See Risk Factors for a further description of some of the factors that could influence the Issuers
forward-looking statements.
Sources of Market Data
To the extent not otherwise indicated, the information contained in this prospectus on the market
environment, market developments, growth rates, market trends and competition in the markets in which the
Group operates are based on the Issuers and the Underwriters assessments. These assessments, in turn, are
based in part on internal observations of the market and on various market studies.
The following sources were used in the preparation of this prospectus:
BD RCI, brand awareness study, March/April 2014 (BD RCI, Brand Awareness Study);
Betsy Nolan, Dear World Bank: focus on these six countries to get the most banked for your
buck, Global Envision, November 4, 2013 (Global Envision Report);
Business Monitor International, market research and data analysis, June 2014 (BMI, Market
Data);
Daniel Inman, Southeast Asias Growing Appeal: Stock Investors Lured by Expanding
Economies, Middle Class in the Philippines and Thailand, The Wall Street Journal, December 3,
2012 (WSJ Report);
Data Popular, publicly available information released in December 2012 (Data Popular);
Euromonitor International, Retailing and Internet Retailing by Country, based on current prices
and year on year exchange rates (unless otherwise stated), accessed June 2014 (Euromonitor,
Retailing and Internet Retailing by Country);
Euromonitor International, Apparel and Footwear, based on current prices and fixed 2013
exchange rates, accessed July 2014, (Euromonitor, Apparel and Footwear);
33
Euromonitor International, Consumer Finance, accessed July 2014, based on current prices,
(Euromonitor, Consumer Finance);
Euromonitor International, Home and Garden , accessed July 2014, based on current prices and
fixed 2013 exchange rates, (Euromonitor, Home and Garden);
Euromonitor International, Countries and Consumers, based on current prices and year on year
exchange rates, accessed July 2014, (Euromonitor, Countries and Consumers);
Euromonitor International, Food and Drink, based on current prices and fixed 2013 exchange
rates, accessed July 2014, (Euromonitor, Food and Drink Internet Retailing);
eMarketer, market research dated January 2014 (eMarketer, Market Data);
Ana Paula Hinz, Dafiti o e-commerce com mais influncia no Facebook, Exame, December 31,
2012 (EXAME Report);
Ian Black, Saudi digital generation takes on Twitter, YouTube and authorities, The Guardian,
December 17, 2013 (The Guardian Report);
IMF, World Economic Outlook Database, April 2014 Edition, accessed June 30, 2014 (IMF,
WEO Database);
International Data Corporation, Worldwide New Media Market Model, accessed May 27, 2014
(IDC Database);
International Telecommunication Union, 2014 ICT Statistics, Time Series by Country, Percentage
of individuals using the Internet (ITU Data);
Internet Live Stats, accessed June 19, 2014 (Internet Live Stats);
NetQuest, market research, accessed monthly from January 2013 to March 2014 (NetQuest,
Market Research);
Planet Retail, Global Data Analysis Database, accessed May 27, 2014 (Planet Retail Database);
Simone Pathe, U.S. underbanked population increasingly using mobile banking, PBS
Newshour, March 27, 2014 (PBS Report);
Socialbakers.com, Top 10 Biggest Facebook Cities, June 14, 2012 (Socialbakers.com, Blog);
United Nations Economic and Social Commission for Asia and the Pacific, Asia Pacific Forum on
Sustainable Development, May 2014 (UN ESCAP Asia Pacific Forum on Sustainable
Development);
United Nations, World Population Prospects 2009 (United Nations, World Population
Prospects); and
World Cellular Information Service, World Cellular Forecasts 2012-2018, accessed February 14,
2014 (WCIS Cellular Forecasts).
It should be noted in particular that reference has been made in this prospectus to information
concerning markets and market trends. Such information was obtained from the above-mentioned market studies
and other sources. The Issuer has accurately reproduced such information and, as far as it is aware and able to
ascertain from information published by such third parties, no facts have been omitted that would render the
reproduced information inaccurate or misleading. Nevertheless, prospective investors are advised to consider this
data with caution. For example, market studies are often based on information or assumptions that may not be
accurate or appropriate, and their methodology is inherently predictive and speculative.
Irrespective of the assumption of responsibility for the content of this prospectus by the Issuer and the
Underwriters (see Responsibility Statement), neither the Issuer nor the Underwriters have independently
verified the figures, market data or other information on which third parties have based their studies.
Accordingly, the Issuer and the Underwriters make no representation or warranty as to the accuracy of any such
information from third-party studies included in this prospectus. Prospective investors should note that the
Issuers own estimates and statements of opinion and belief are not always based on studies of third parties.
Documents Available for Inspection
For the period during which this prospectus is valid, the following documents will be available for
inspection during regular business hours at the Issuers offices at Johannisstrae 20, 10117 Berlin, Germany (tel.
+49 (0) 30 300 13 18-00):
the Issuers articles of association (the Articles of Association);
34
the Issuers unaudited condensed interim consolidated financial statements prepared in accordance
with German GAAP as of and for the six months ended June 30, 2014;
the Issuers (prior to changes in its legal form and name: Rocket Internet GmbH) audited
consolidated financial statements prepared in accordance with German GAAP for the fiscal year
ended December 31, 2013;
the Issuers audited unconsolidated financial statements prepared in accordance with German
GAAP for the fiscal years ended December 31, 2013, December 31, 2012 and December 31, 2011;
and
the Issuers additional unconsolidated information consisting of a statement of changes in equity
and a cash flow statement for the fiscal years ended December 31, 2012 and December 31, 2011.
The above documents are also available on the Issuers website at www.rocket-internet.de. The annual
financial statements referred to above are also published in the German Federal Gazette (Bundesanzeiger).
The Issuers future consolidated annual and interim financial statements will be available from the
Issuer on its website and from the paying agent designated in this prospectus (see General Information on the
Issuer and the GroupNotifications, Paying Agent).
Currency Presentation and Presentation of Figures
In this prospectus, euro, EUR and refer to the single European currency adopted by certain
participating member states of the European Union (the EU), including the Federal Republic of Germany
(Germany) as of January 1, 1999; AED refers to the lawful currency of the United Arab Emirates, AUD
refers to the lawful currency of the Commonwealth of Australia (Australia); BRL refers to the lawful
currency of Brazil; INR refers to the legal currency of the Republic of India (India); RUB refer to the
lawful currency of the Russian Federation (Russia) and U.S. dollars, U.S. dollar and US$ refer to the
lawful currency of the United States.
Where financial data in the prospectus is labelled audited, this means that it has been taken from the
audited financial statements mentioned above. The label unaudited is used in the prospectus to indicate
financial data that has not been taken from the audited financial statements mentioned above, but was taken
either from the Groups unaudited condensed interim consolidated financial statements or the Groups
accounting or controlling records, or has been calculated on the bases of figures taken from the above-mentioned
sources, unless otherwise indicated. All of the financial data presented in the prospectus are shown in millions of
euro (in million), except as otherwise stated. Certain financial data in the text and in the tables (including
percentages) in this prospectus have been rounded according to established commercial standards, whereby
aggregate amounts (sum totals, sub-totals, differences or amounts put in relation) are calculated on the
underlying unrounded amounts. As a result, the aggregate amounts (sum totals or sub-totals or differences or if
numbers are put in relation) may not correspond in all cases to the corresponding rounded amounts contained in
the following text and tables. Furthermore, in the following tables, these rounded figures may not add up exactly
to the totals contained in the respective tables and charts. The percentage changes that are stated in the text and
the tables have been commercially rounded to one decimal place unless stated otherwise. Financial information
presented in parentheses denotes the presented number is a negative number. With respect to financial data set
out in the main body of the prospectus (i.e., other than in the section entitled Financial Information), a dash
() signifies that the relevant figure is not available, while a zero (0) signifies that the relevant figure is
available but is or has been rounded to zero.
Available Information
At any time when our Group is not subject to Section 13 or 15(d) of the United States Securities
Exchange Act of 1934, as amended, nor exempt from reporting pursuant to Rule 12g3-2(b) thereunder, it will
furnish, upon request, to any holder or beneficial owner of the Issuers shares, or any prospective investor
designated by any such holder or beneficial owner, information satisfying the requirements of subsection
(d)(4)(i) of Rule 144A under the Securities Act to permit compliance with Rule 144A in connection with resales
of the Issuers shares for so long as any of the Issuers shares are restricted securities within the meaning of
Rule 144(a)(3) under the Securities Act.
Enforcement of Civil Liabilities
The Issuer is a German stock corporation (AG) governed by German law and all or a substantial portion
of its assets are located primarily outside the United States. In addition, the majority of the members of the
management board (Vorstand) (the Management Board) and the supervisory board (Aufsichtsrat) (the
Supervisory Board) are non-residents of the United States and most of their assets are located outside the
35
United States. As a result, it may not be possible for investors to effect service of process within the United
States upon the Issuer or such persons or to enforce against them or the Issuer judgments of courts of the United
States, whether or not predicated upon the civil liability provisions of the federal securities laws of the United
States or other laws of the United States or any state thereof. The United States and Germany do not currently
have a treaty providing for reciprocal recognition and enforcement of judgments in civil and commercial matters.
Therefore, a final judgment for payment of money rendered by a federal or state court in the United States based
on civil liability, whether or not predicated solely upon U.S. federal securities laws, may not be enforceable,
either in whole or in part, in Germany. However, if the party in whose favor such final judgment is rendered
brings a new suit in a competent court in Germany, such party may submit to the German court the final
judgment rendered in the United States. Under such circumstances, a judgment by a federal or state court of the
United States against the Issuer or such persons will be regarded by a German court only as evidence of the
outcome of the dispute to which such judgment relates, and a German court may choose to re-hear the dispute. In
addition, awards of punitive damages in actions brought in the United States or elsewhere may be unenforceable
in Germany.
Presentation of Financial Information
Application of the German Generally Accepted Accounting Principles (German GAAP)
The Issuer prepared its consolidated financial statements as of and for the fiscal year ended
December 31, 2013 in accordance with the German GAAP. These consolidated financial statements were audited
by Ernst & Young GmbH Wirtschaftsprfungsgesellschaft, Stuttgart, Berlin office, Germany, a member of the
Chamber of Public Accountants (Wirtschaftsprferkammer), Berlin, as stated in their audit opinion
(Besttigungsvermerk) thereon. The Issuers unconsolidated financial statements as of and for the fiscal year
ended December 31, 2013, December 31, 2012 and December 31, 2011 were prepared in accordance with the
German GAAP. Such unconsolidated financial statements were audited by PricewaterhouseCoopers
Aktiengesellschaft Wirtschaftsprfungsgesellschaft, Frankfurt am Main, Berlin office, Germany, as stated in
their audit opinions (Besttigungsvermerke) thereon. PricewaterhouseCoopers Aktiengesellschaft
Wirtschaftsprfungsgesellschaft, Frankfurt am Main, Berlin office, Germany, is a member of the Chamber of
Public Accountants (Wirtschaftsprferkammer), Berlin. The Issuers unaudited condensed interim consolidated
financial statements as of and for the six months ended June 30, 2014 have been prepared in accordance with the
German GAAP.
German GAAP differs in certain material respects from IFRS and generally accepted accounting
principles in the United States (U.S. GAAP). Therefore, the results of operations and financial condition
derived from the financial statements that are included in this prospectus may differ substantially from the results
of operations and financial condition derived from financial statements prepared in accordance with IFRS or
U.S. GAAP. We have not prepared a reconciliation of our financial information to IFRS or U.S. GAAP or a
summary of significant accounting differences in the accounting and valuation methods of German GAAP, IFRS
and U.S. GAAP nor have we otherwise reviewed the impact the application of IFRS or U.S. GAAP would have
on our financial reporting. Accordingly, in making an investment decision, investors must rely on their own
examination of our financial information.
Exchange Rate Information
The functional currency of the majority of the Groups foreign operations is the Euro. The Issuers
functional currency and the Groups presentation currency is the Euro and the Issuer prepares its financial
statements in Euro.
The table below shows the average Euro foreign exchange reference rates expressed in U.S. dollars per
Euro, as announced by the European Central Bank for the five years ended December 31, 2013. The averages set
forth in the table below have been computed using the Euro foreign exchange reference rate on the last business
day of each month during the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4406 1.3955 1.5120 1.2555
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3362 1.3207 1.4563 1.1942
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2939 1.4000 1.4882 1.2889
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3194 1.2932 1.3454 1.2089
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3791 1.3308 1.3791 1.2805
36
The following table shows the Euro foreign exchange reference rates for U.S. dollars per Euro for the
previous six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3942 1.3732
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3872 1.3700
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3953 1.3607
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3658 1.3528
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3688 1.3379
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3422 1.3177
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 1.3151 1.2852
The table below shows the average Euro foreign exchange reference rates expressed in Euro per AED,
as announced by Bloomberg for the five years ended December 31, 2013. The averages set forth in the table
below have been computed using the Euro foreign exchange end of day rates over the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1901 0.1957 0.2173 0.1799
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2034 0.2056 0.2283 0.1876
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2101 0.1957 0.2109 0.1836
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2063 0.2119 0.2257 0.2023
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1975 0.2051 0.2132 0.1972
The following table shows the Euro foreign exchange reference rates for Euro per AED for the previous
six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1982 0.1955
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1987 0.1959
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2003 0.1955
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2012 0.1989
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2035 0.1988
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2071 0.2027
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 0.2122 0.2069
The table below shows the average Euro foreign exchange reference rates expressed in Euro per AUD,
as announced by Bloomberg for the five years ended December 31, 2013. The averages set forth in the table
below have been computed using the Euro foreign exchange end of day rates over the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6267 0.5669 0.6267 0.4931
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7652 0.6943 0.7708 0.6270
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7914 0.7420 0.7914 0.6998
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7868 0.8058 0.8608 0.7721
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6475 0.7293 0.8174 0.6454
The following table shows the Euro foreign exchange reference rates for Euro per AUD for the previous
six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6735 0.6461
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6809 0.6680
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6843 0.6676
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6962 0.6788
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7019 0.6879
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7105 0.6913
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 0.7247 0.6926
37
The table below shows the average Euro foreign exchange reference rates expressed in Euro per BRL,
as announced by Bloomberg for the five years ended December 31, 2013. The averages set forth in the table
below have been computed using the Euro foreign exchange end of day rates over the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4003 0.3626 0.4004 0.3071
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4506 0.4295 0.4605 0.3819
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4141 0.4301 0.4586 0.3962
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3699 0.3996 0.4448 0.3613
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3071 0.3489 0.3950 0.3069
The following table shows the Euro foreign exchange reference rates for Euro per BRL for the previous
six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3215 0.3041
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3294 0.3197
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3311 0.3220
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3331 0.3220
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3358 0.3292
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3402 0.3244
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 0.3461 0.3265
The table below shows the average Euro foreign exchange reference rates expressed in Euro per INR, as
announced by Bloomberg for the five years ended December 31, 2013. The averages set forth in the table below
have been computed using the Euro foreign exchange end of day rates over the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0150 0.0149 0.0160 0.0140
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0167 0.0165 0.0178 0.0150
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0145 0.0154 0.0171 0.0141
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0138 0.0146 0.0156 0.0138
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0117 0.0129 0.0144 0.0111
The following table shows the Euro foreign exchange reference rates for Euro per INR for the previous
six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0121 0.0117
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0122 0.0118
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0126 0.0120
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0125 0.0122
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0124 0.0122
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0126 0.0122
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 0.0129 0.0125
The table below shows the average Euro foreign exchange reference rates expressed in Euro per RUB,
as announced by Bloomberg for the five years ended December 31, 2013. The averages set forth in the table
below have been computed using the Euro foreign exchange end of day rates over the periods indicated.
Year ended December 31, Period End Average High Low
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0232 0.0227 0.0254 0.0214
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0245 0.0249 0.0267 0.0230
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0240 0.0245 0.0254 0.0230
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0248 0.0251 0.0260 0.0239
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0221 0.0237 0.0253 0.0220
38
The following table shows the Euro foreign exchange reference rates for Euro per RUB for the previous
six months:
Month High Low
March 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0206 0.0196
April 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0207 0.0200
May 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0215 0.0201
June 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0218 0.0209
July 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0216 0.0209
August 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0210 0.0205
September 2014 (through September 19, 2014) . . . . . . . . . . . . . . . . . . . . 0.0210 0.0199
39
THE OFFERING
Subject Matter of the Offering
The offering (including any potential over-allotment) relates to the sale of 37,882,353 Offer Shares with
no par value (Stckaktien), each representing a notional value of 1.00 and with full dividend rights from
January 1, 2014, consisting of:
32,941,177 newly issued bearer shares with no par value (Stckaktien) from a capital increase (the
IPO Capital Increase) against contribution in cash expected to be resolved by the Issuers
management board on October 6, 2014, to be approved by a committee of the Issuers supervisory
board on the same day, utilizing the Authorized Capital 2014 under exclusion of the subscription
rights of existing shareholders of the Issuer (the New Shares); and
4,941,176 ordinary bearer shares with no-par value (Stckaktien) from the holdings of GFG to
cover a potential over-allotment (the Over-Allotment Shares and, together with the New Shares,
the Offer Shares).
The offering consists of a public offering of the Offer Shares in Germany and the Grand Duchy of
Luxembourg (Luxembourg) and private placements of the Offer Shares in certain jurisdictions outside
Germany and Luxembourg. In the United States, the Offer Shares will be offered for sale to persons who are
qualified institutional buyers as defined in Rule 144A (Rule 144A) under the U.S. Securities Act of 1933, as
amended (the Securities Act) and qualified purchasers as defined in the U.S. Investment Company Act of
1940, as amended (the Investment Company Act). Outside the United States, the Offer Shares will be offered
to non-U.S. persons in reliance on the exemption from registration provided by Regulation S (Regulation S)
under the Securities Act. As part of the offering, Offer Shares in an aggregate investment amount of 582.5
million will be acquired by Scottish Mortgage Investment Trust Plc (SMIT), J.P. Morgan Securities LLC
(JPM), FAR Global Private Markets Ltd. (FAR), Discovery Global Opportunity Master Fund, Ltd.
(Discovery), Makshaff Trading Investments Company Limited (Makshaff) and Credit Suisse AG (Credit
Suisse, together with SMIT, JPM, FAR, Discovery and Makshaff, the Cornerstone Investors), who have
agreed, subject to certain termination rights and the condition precedent of the closing of the offering, to
purchase Offer Shares at the offer price. Each Cornerstone Investor has been guaranteed full allocation of such
number of Offer Shares for which it has provided a purchase commitment.
The capital increase out of the Authorized Capital 2014 (see Description of Share Capital of Rocket
Internet AG and Applicable RegulationsAuthorized Capital) to create the New Shares, which is expected to be
resolved by the Management Board with the approval of a committee of the Supervisory Board of the Issuer on
or around October 6, 2014 and is expected to be registered with the Commercial Register on October 8, 2014,
would result in a capital increase of the Issuers share capital of up to 32,941,177.00. Upon registration of the
capital increase with the Commercial Register, the New Shares are issued. Assuming this capital increase is
resolved by the Management Board with the approval of a committee of the Supervisory Board of the Issuer and
registered with the Commercial Register in the maximum amount, the share capital of the Issuer will amount to
153,043,432.00. Assuming further a complete exercise of the Greenshoe Option, the Issuer will issue additional
4,941,176 ordinary bearer shares with no-par value from the Authorized Capital 2014. In such event, the Issuers
share capital will amount to a total of 157,984,608.00. The share capital of the Issuer represented by the Offer
Shares that are the subject of the offering including potential over-allotments will total 37,882,353.00 million.
Thus, approximately 24.0% of the Issuers shares (after effectuation of the issuance of all New Shares and of all
shares under the Greenshoe Option) will be offered. Without the Over-Allotment Shares, approximately 21.5% of
the Issuers shares (after effectuation of the issuance of all New Shares) will be offered.
Immediately prior to the offering, all of the Issuers share capital was held by GFG, Emesco, United
Internet Ventures AG, Philippine Long Distance Telephone Company, AI European Holdings S. r.l. and
Holtzbrinck Ventures. For more information, see Information on the Existing Shareholders. Following
completion of the offering and assuming full placement of the Offer Shares, issuance of all New Shares and full
exercise of the Greenshoe Option (see Stabilization Measures, Over Allotments and Greenshoe Option), the
existing shareholders will hold approximately 76.0% of the Issuers share capital. The Issuer will receive the
proceeds of the offering resulting from the sale of the New Shares and, if and to the extent the Greenshoe Option
is exercised, from the exercise of the Greenshoe Option, in each case after deduction of fees and commissions.
The Underwriters are acting in the following capacities: Berenberg, Morgan Stanley and J.P. Morgan
are acting as Joint Global Coordinators, BofA Merrill Lynch, Citigroup and UBS together with Berenberg,
Morgan Stanley and J.P. Morgan are acting as Joint Bookrunners.
40
Price Range, Offer Period, Offer Price and Allotment
The price range within which purchase orders may be placed is 35.50 to 42.50 per Offer Share (the
Price Range).
The offer period, during which investors may submit purchase orders for the shares, is expected to begin
on September 24, 2014 and is expected to end on October 7, 2014, at 12:00 noon CEST (Central European
Summer Time) for private investors (natural persons) and at 16:00 CEST (Central European Summer Time) for
institutional investors (the Offer Period). Private investors (natural persons) may submit purchase orders for
the public offering in Germany and Luxembourg during the Offer Period at the branch offices of the
Underwriters. Purchase orders must be denominated in full euro amounts or euro cent figures of 25, 50, or
75 cents. Multiple purchase orders are permitted.
The Issuer, together with the Joint Global Coordinators, reserves the right to increase or decrease the
total number of Offer Shares, to increase or decrease the upper limit and/or the lower limit of the Price Range
and/or to extend or shorten the Offer Period. The Offer Period will at least last 6 days. Changes in the number of
Offer Shares, changes to the Price Range or the extension or shortening of the Offer Period will not invalidate
any offers to purchase that have already been submitted. If such change requires the publication of a supplement
to this prospectus, investors who submitted purchase orders before the supplement is published shall have the
right, under the German Securities Prospectus Act, to withdraw these offers to purchase within two business days
of the publication of the supplement. Instead of withdrawing the offers to purchase placed prior to the publication
of the supplement, investors may change their orders or place new limited or unlimited offers to purchase within
two business days of the publication of the supplement. To the extent that the terms of the offering are changed,
such change will be published by means of electronic media (such as Reuters or Bloomberg) and, if required by
the German Securities Prospectus Act or the General Terms and Conditions of Deutsche Brse AG for the
regulated Unofficial Market (Freiverkehr) on the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse), as a
publication of significant information via an electronic information system, on the Issuers website and as a
supplement to this prospectus. Investors who have submitted offers to purchase will not be notified individually.
Under certain conditions, the Joint Global Coordinators, acting on behalf of the Underwriters, may terminate the
underwriting agreement relating to the offering entered into with the Issuer on September 23, 2014 (the
Underwriting Agreement), even after commencement of trading (Aufnahme des Handels) of the Issuers
shares on the non-regulated market (Entry Standard) of the Frankfurt Stock Exchange (Frankfurter
Wertpapierbrse), see also UnderwritingTermination/Indemnification.
After the expiration of the Offer Period, the offer price and the final number of the Offer Shares placed
in the offering will be set jointly by the Issuer and the Joint Bookrunners. The price will be set on the basis of the
purchase orders submitted by investors during the Offer Period that have been collated in the order book prepared
during the bookbuilding process. Price setting is expected to take place on or about October 7, 2014. These
orders will be evaluated according to the prices offered and the investment horizons of the respective investors.
This method of setting the number of shares that will be placed at the offer price is, in principle, aimed at
maximizing proceeds. Consideration will also be given to whether the offer price and the number of shares to be
placed allow for the reasonable expectation that the share price will demonstrate steady performance in the
secondary market given the demand for the Issuers shares noted in the order book. Attention will be paid not
only to the prices offered by investors and the number of investors wanting shares at a particular price, but also to
the composition of the group of shareholders in the Issuer that would result at a given price, and expected
investor behavior. For further information regarding allotment criteria, see Allotment Criteria. The Issuer
will not specifically charge any expenses and taxes related to the offering to investors.
After the offer price has been set, the Offer Shares will be allotted to investors on the basis of the offers
to purchase then available. The offer price and the final number of Offer Shares and the final number of New
Shares, placed in the offering (that is, the result of the offering) are expected to be published on or about
October 7, 2014 by means of a press release on an electronic information system and on the Issuers website.
Investors who have placed orders to purchase Offer Shares with one of the Underwriters can obtain information
from that Underwriter about the offer price and the number of Offer Shares allotted to them on the business day
following the setting of the offer price. As commencement of trading (Aufnahme des Handels) of the Issuers
shares on the non-regulated market segment (Entry Standard) of the Frankfurt Stock Exchange (Frankfurter
Wertpapierbrse) is expected to take place on the business day following the setting of the offer price, investors
may not have obtained information about the number of Offer Shares allotted to them at the time of
commencement of trading. Book-entry delivery of the allotted Offer Shares against payment of the offer price is
expected to take place two business days after commencement of stock exchange trading. Should the placement
volume prove insufficient to satisfy all orders placed at the offer price, the Underwriters reserve the right to reject
orders, or to accept them only in part.
41
Cornerstone Investors
The Issuer entered into private placement agreements with SMIT, JPM, FAR, Discovery, Makshaff and
Credit Suisse (the Cornerstone Investor Agreements). The key terms of the agreement with the Cornerstone
Investor Agreements are summarized under Cornerstone Investor Agreements below.
The Cornerstone Investors have in aggregate committed to invest a total amount of 582.5 million under and
as part of the offering. Based on an offer price at the mid-point of the Price Range, the total number of Offer
Shares purchased by the Cornerstone Investors would be approximately 14,935,897 Offer Shares, which
represent approximately 39.4% of the Offer Shares, assuming that all Over-Allotment Shares are fully allocated.
The placements of Offer Shares with the Cornerstone Investors will be made under and as part of the
offering at the offer price per Offer Share. The Cornerstone Investors are guaranteed full allocation of their Offer
Shares. Subject to certain exceptions, including any disposal that is required by law or regulation, the
Cornerstone Investors have agreed to a lock-up period of twelve months with respect to the disposal of their
Offer Shares.
Description of Cornerstone Investors
A brief description of the Cornerstone Investors is given below, which has been provided by the
Cornerstone Investors.
Scottish Mortgage Investment Trust Plc is an investment trust managed by Baillie Gifford & Co,
incorporated under the laws of Scotland and registered as an investment company pursuant to the Companies Act
of the United Kingdom. Its shares have been admitted to the Official List of the UK Listing Authority and to
trading on the main market for listed securities of the London Stock Exchange, and none of its shareholders
currently holds more than 10% of the share capital of SMIT.
J.P. Morgan Securities LLC is a limited liability company incorporated under the law of Delaware, United
States of America, and a registered broker-dealer and investment adviser with the United States Securities and
Exchange Commission (SEC) and futures commission merchant with the United States Commodities Futures
Trading Commission (CFTC). J.P. Morgan Securities LLC is a wholly-owned subsidiary of JPMorgan
Chase & Co., which is a leading global financial services firm and one of the largest banking institutions in the
United States, with operations worldwide.
FAR Global Private Markets Ltd. is a limited liability company incorporated under the laws of the British
Virgin Islands and an investment company. Its ultimate controlling shareholder is Mr. Fahad Abdullah
A. Alrajhi, who is resident and an entrepreneur in the Kingdom of Saudi Arabia.
Discovery Global Opportunity Master Fund, Ltd., is an investment fund managed by Discovery Capital
Management, LLC and is incorporated under the laws of the Cayman Islands. None of its shareholders currently
holds more than 5% of the share capital of the fund.
Makshaff Trading Investments Company Limited is a limited liability company incorporated under the laws
of Saudi Arabia and active in investments and project management. Its ultimate controlling shareholder is HRH
Prince Khaled bin Sultan bin Abdulaziz Al Saud, who is resident in the Kingdom of Saudi Arabia.
Credit Suisse AG is a Swiss bank incorporated under the laws of Switzerland and a leading global bank,
providing financial advice to corporate, institutional and government clients, to wealthy individuals worldwide,
as well as affluent and retail clients in Switzerland.
Cornerstone Investor Agreements
The obligations of each Cornerstone Investor to purchase and acquire the respective Offer Shares, the
Companys obligations to issue the respective Offer Shares, and the Underwriters obligations to deliver (acting
through a settlement agent) the respective Offer Shares, are all subject to the condition precedent that the closing
of the offering occurs. The settlement of the Cornerstone Investors Offer Shares shall occur simultaneously with
the closing of the offering.
Each Cornerstone Investor Agreement may be terminated under certain circumstances, e.g., by the relevant
Cornerstone Investor within twelve hours after a release has been published by the Issuer that includes
information that requires the subsequent publication of a supplement to the prospectus if such information would
be reasonably expected to constitute a material adverse development in the condition, financial or otherwise,
shareholders equity, results of operations, business or prospects of the Issuer and its consolidated subsidiaries,
taken as a whole, that makes it inadvisable for the Cornerstone Investor to continue with its investment decision.
42
Under the Cornerstone Investor Agreements the Cornerstone Investors have agreed to purchase such number
of Offer Shares that may be acquired with their respective investment amount at the offer price as reflected in the
table below.
Name of Cornerstone Investor
Number of Offer Shares
(rounded to the nearest
whole number and assuming
that the offer price is at the
mid-point of the price range)
Investment amount
committed by the
Cornerstone Investors
(in million)
Scottish Mortgage Investment Trust Plc . . . . . . . . . . . . . . . . . . . . 8,974,359 350.00
J.P. Morgan Securities LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,564,103 100.00
FAR Global Private Markets Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,282,051 50.00
Discovery Global Opportunity Master Fund, Ltd. . . . . . . . . . . 961,538 37.50
Makshaff Trading Investments Company Limited . . . . . . . . . 641,026 25.00
Credit Suisse AG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,821 20.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,935,897 582.50
Expected Timetable for the Offering
The following is the expected timetable of the offering, which may be extended or shortened:
September 23, 2014 . . . . . . . . . . . . . . . . Approval of this prospectus by the BaFin and publication of the approved
prospectus on the Issuers website.
Notification of the approved prospectus to the Luxembourg Commission for
the Supervision of the Financial Sector (Commission de Surveillance du
Secteur Financier).
September 24, 2014 . . . . . . . . . . . . . . . . Commencement of the Offer Period.
Application for inclusion to trading filed with the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse).
October 7, 2014 . . . . . . . . . . . . . . . . . . . . Close of the Offer Period for private investors (natural persons) at
12:00 noon CEST (Central European Summer Time) and for institutional
investors at 16:00 CEST (Central European Summer Time).
October 7, 2014 . . . . . . . . . . . . . . . . . . . . Determination of the offer price and allotment; publication of the offer price
in the form of a press announcement on an electronic information system
and on the Issuers website.
October 8, 2014 . . . . . . . . . . . . . . . . . . . . Registration of the consummation of the IPO Capital Increase with the
Commercial Register and creation of the New Shares to be delivered on the
date of settlement (October 10, 2014).
October 8, 2014 . . . . . . . . . . . . . . . . . . . . Approval of inclusion to trading issued by the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse).
October 9, 2014 . . . . . . . . . . . . . . . . . . . . First day of trading.
October 10, 2014 . . . . . . . . . . . . . . . . . . . Book-entry delivery of the Offer Shares against payment of the offer price
(closing).
Intended Change of Legal Form
We currently expect that the extraordinary shareholders meeting to be held on September 30, 2014 will
approve a resolution to change the Issuers legal form to a European company (Societas Europaea SE)
governed by German and European law and its legal name to Rocket Internet SE. The change in legal form and
name is expected to be registered in late 2014.
Information on the Shares
Voting Rights
Each share in the Issuer carries one vote at the Issuers shareholders meeting. The Issuers existing
shareholders do not have different voting rights.
Dividend and Liquidation Rights
The Offer Shares carry full dividend rights from January 1, 2014. In the event of the Issuers liquidation,
any proceeds will be distributed to the holders of the Issuers shares in proportion to their interest in the Issuers
share capital. There will be no preferential rights upon liquidation.
43
Form and Certification of the Shares
All of the Issuers shares are bearer shares with no par value. The Issuers current share capital in the
amount of 120,102,255.00 is represented by one global share certificate with one global dividend coupon, which
will be deposited with Clearstream Banking Aktiengesellschaft, Mergenthalerallee 61, 65760 Eschborn,
Germany.
Section 5 para. 2 of the Articles of Association excludes the shareholders right to receive individual
share certificates to the extent permitted by law and unless mandated by the rules of a stock exchange to which
the shares are admitted. The Issuers Management Board, in consultation with the Issuers Supervisory Board,
determines pursuant to Section 5 para. 3 of the Articles of Association the form of the share certificates. The
Offer Shares provide holders thereof with the same rights as all of the other shares of the Issuer and do not
provide any additional rights or advantages.
Delivery and Settlement
The delivery of the Offer Shares against payment of the offer price is expected to take place on
October 10, 2014. The Offer Shares will be made available to the shareholders as co-ownership interests in the
global share certificate.
At the shareholders option, the Offer Shares purchased in the offering will be credited either to a
securities deposit account maintained by a German bank with Clearstream Banking Aktiengesellschaft or to a
securities account of a participant in Euroclear Bank S.A./N.V., 1, Boulevard Roi Albert II, 1120 Brussels,
Belgium, as the operator of the Euroclear system, or to Clearstream Banking S.A., 42 Avenue JF Kennedy, 1855
Luxembourg, Luxembourg for the account of such shareholder.
ISIN/WKN/Common Code/Ticker Symbol
International Securities Identification Number (ISIN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DE000A12UKK6
German Securities Code (Wertpapierkennnummer, WKN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A12UKK
Common Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111314110
Ticker Symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . RKET
Transferability of the Shares
The Issuers shares are freely transferable in accordance with the legal requirements for bearer shares.
Except for the restrictions set forth in Lock-up Agreement, Limitations on Disposal and Underwriting
Selling Restrictions, there are no prohibitions on disposals or restrictions with respect to the transferability of
the Issuers shares.
Existing Shareholders
Immediately prior to the offering, GFG holds 52.3%, Emesco holds 18.1%, United Internet holds
10.4%, PLDT Online Investments PTE. LTD. holds 8.4%, AI European Holdings S.. r.l. holds 8.3% and
Holtzbrinck Ventures holds 2.5% of the Issuers outstanding share capital. For a discussion of the ownership
structure of the existing shareholders, see Information on the Existing ShareholdersShareholder Structure
(Before and After the Offering).
Allotment Criteria
The allotment of Offer Shares to private investors and institutional investors will be decided by the
Issuer. In the case of institutional investors, allotments will be made on the basis of the quality of the individual
investor, individual orders and other relevant allotment criteria, such as the expected investment horizon of the
respective investor. In particular, the Issuer will also give consideration to allocate the Offer Shares in a manner
that will likely allow for an orderly and liquid trading of the Offer Shares after completion of the offering. The
allocation to private investors will be compatible with the Principles for the Allotment of Share Issues to Private
Investors published by the Commission of Stock Exchange Experts (Brsensachverstndigenkommission).
44
Stabilization Measures, Over-Allotments and Greenshoe Option
In connection with the offering of the Offer Shares and the exercise of the Greenshoe Option, Berenberg
or its affiliates, acting for the account of the Underwriters, will act as the stabilization manager and may, as
stabilization manager acting in accordance with legal requirements (Section 20a (3) of the German Securities
Trading Act (Wertpapierhandelsgesetz) in conjunction with Commission Regulation (EC) No. 2273/2003 of
December 22, 2003), make over-allotments and take stabilization measures to support the market price of the
Issuers shares and thereby counteract any selling pressure.
The stabilization manager is under no obligation to take any stabilization measures. Therefore, no
assurance can be provided that any stabilization measures will be taken. Where stabilization measures are taken,
these may be terminated at any time without notice. Such measures may be taken as of the date of the
commencement of trading of the Issuers shares and must be terminated no later than the thirtieth calendar day
after this date (the Stabilization Period).
These measures may result in the market price of the Issuers shares being higher than would otherwise
have been the case. Moreover, the market price may temporarily be at an unsustainable level.
Under the possible stabilization measures, investors may, in addition to the Issuer shares being offered,
be allocated up to 4,941,176 additional shares in the Issuer (Over-Allotment Shares) as part of the allocation
of the shares to be placed (Over-Allotment). For the purpose of a possible Over-Allotment, the stabilization
manager, for the account of the Underwriters, will be provided with up to 4,941,176 shares from the holdings of
GFG in the form of a securities loan; this number of shares will not exceed 15% of the New Shares. In
connection with the Over-Allotment, the Issuer will grant the Underwriters an option to acquire up to 4,941,176
additional Issuers shares at the offer price less agreed commissions (the Greenshoe Option), which would be
issued by the Issuer from the Authorized Capital 2014 for the sole purpose of enabling the stabilization manager
to perform its redelivery obligation under the securities loan with GFG. This option will terminate 30 calendar
days after the first day of trading.
The stabilization manager is entitled to exercise the Greenshoe Option to the extent over-allotments of
shares were initially made; the amount of shares is to be reduced by the number of shares held by the
stabilization manager as of the date on which the Greenshoe Option is exercised and that were acquired by the
stabilization manager in the context of stabilization measures.
Once the Stabilization Period has ended, an announcement will be made within one week in various
media outlets distributed across the entire European Economic Area as to whether stabilization measures were
taken, when price stabilization started and finished, and the Price Range within which stabilization was taken; the
latter will be made known for each occasion on which price stabilization measures were taken. Exercise of the
Greenshoe Option, the timing of its exercise and the number and type of shares concerned will also be announced
promptly in the same manner.
Lock-up Agreement, Limitations on Disposal
In the Underwriting Agreement, the Issuer agreed with each Underwriter that, to the extent legally
permissible, it will not, without the prior written consent of the Joint Global Coordinators (which shall not be
unreasonably withheld or delayed) for a period of six months following the first day of trading of the Issuers
share (currently expected to take place on October 9, 2014):
announce or execute any capital increase from authorized capital,
propose a capital increase to its shareholders, or
announce, execute or propose to its shareholders any offering of financial instruments that carry
conversion or option rights to shares in the Issuer or other transactions with a similar economic
effect.
The foregoing does not apply to the IPO Capital Increase and the capital increase in connection with an
exercise of the Greenshoe Option.
By way of separate lock-up agreements, the existing shareholders undertook not to, without the prior
written consent of the Joint Global Coordinators (which shall not be unreasonably withheld), prior to the end of a
period of twelve months following the first day of trading of the Issuers shares on the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse) (currently expected to take place on October 9, 2014), sell, distribute, pledge
(without transferring legal title), transfer or otherwise dispose of any of their shares or securities in the Issuer.
The same rule applies to transactions having the same economic effect as a sale.
45
The foregoing lock-up restrictions do not restrict the (i) tender, sale and transfer of the Issuers shares in
a takeover bid for the Issuer, (ii) the off-exchange (auerbrsliche) transfer of the Issuers shares by its existing
shareholders to any of their affiliates, (iii) the distribution of the Issuers shares by such shareholder to its
shareholder(s), member(s) or partner(s) (as applicable) through dividend in kind, provided that the recipient of
such transfer assumes, by written confirmation to the Joint Global Coordinators, the obligations of the Issuers
existing shareholder hereunder for the then remaining term of the lock-up agreement.
Inclusion on the Frankfurt Stock Exchange and Commencement of Trading
The Issuer expects to apply for inclusion of its shares to trading on the non-regulated market segment
(Entry Standard) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) on or about September 24,
2014. The approval for inclusion to trading is expected to be announced October 8, 2014. Trading on the
Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) is currently expected to commence on October 9,
2014. The Issuer currently intends to apply for admission of its shares to trading on the regulated market
(regulierter Markt) with simultaneous admission to the Prime Standard sub-segment of the Frankfurt Stock
Exchange (Frankfurter Wertpapierbrse), or a comparable market segment of another national or international
stock exchange, in the next 18 to 24 months, assuming that it meets the applicable listing requirements.
Designated Sponsor
Berenberg has agreed to assume the function of a designated sponsor of the Issuers shares traded on the
Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) for a period of at least two years. Pursuant to the
designated sponsor agreement expected to be concluded among the designated sponsor and the Issuer, the
designated sponsor will, among other things, place limited buy and sell orders for the Issuers shares in the
electronic trading system of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) during regular trading
hours. This is intended to achieve greater liquidity in the market for the shares.
Interests of Parties Participating in the Offering
In connection with the offering and the inclusion to trading of the Issuers shares, the Underwriters have
formed a contractual relationship with the Issuer.
The Underwriters act for the Issuer on the offering and coordinate the structuring and execution of the
offering. In addition, Berenberg has been appointed to act as designated sponsor for the Issuers shares and
Deutsche Bank Aktiengesellschaft to act as paying agent and registrar. Upon successful implementation of the
offering, the Underwriters will receive a commission.
Either one of the Underwriters or their affiliates have, and may from time to time in the future continue
to have, business relations with Rocket Internet, the Group and its existing shareholders (including lending and
other financing activities) or may perform services for the Group and its existing shareholders in the ordinary
course of business.
In connection with the offering, the Underwriters and any of their affiliated companies will be able to
acquire Offer Shares for their own accounts and hold, purchase or sell for their own accounts and can also offer
or sell these Offer Shares outside of the offering. Accordingly, references in the Prospectus to Offer Shares being
offered or placed should be read as including any offering or placement of Offer Shares to any of the
Underwriters or any of their respective affiliates acting in such capacity. In addition, certain of the Underwriters
or their affiliates may enter into financing arrangements (including swaps) with investors in connection with
which such Underwriters (or their affiliates) may from time to time acquire, hold or dispose of Offer Shares.
None of the Underwriters intend to disclose the extent of any such investment or transaction other than in
accordance with any legal or regulatory obligation to do so.
An affiliate of J.P. Morgan, one of our Joint Global Coordinators, will, subject to certain termination
rights and the condition precedent of the closing of the offering, acquire Offer Shares in an aggregate amount of
100 million as a cornerstone investor (see section Cornerstone InvestorsDescription of Cornerstone
Investors).
While the Issuers existing shareholders will not participate in the offering, they will benefit from the
listing of the Issuers shares, as they will hold more liquid securities.
46
PROCEEDS OF THE OFFERING AND COSTS OF THE OFFERING AND LISTING
The Issuer will receive the proceeds of the offering resulting from the sale of the New Shares and, if and
to the extent the Greenshoe Option is exercised, from the exercise of the Greenshoe Option, in each case after
deduction of fees and commissions.
Assuming (i) placement of all Offer Shares (37,882,353 shares) and (ii) full exercise of the Greenshoe
Option, the Issuer estimates that gross proceeds would amount to approximately 1,344.8 million,
1,477.4 million and 1,610.0 million, respectively, and net proceeds of approximately 1,293.0 million,
1,421.7 million and 1,550.4 million, respectively, at the low end, mid-point and high end of the Price Range
set for the offering of the Offer Shares.
Assuming (i) an offer price at the low end, mid-point and high end of the Price Range, (ii) placement of
the maximum number of Offer Shares, (iii) full exercise of the Greenshoe Option, and (iv) payment in full of the
discretionary fee of up to 20.2 million, 22.2 million and 24.2 million, at the low end, mid-point and high end
of the Price Range, respectively; the commission payable to the Underwriters will amount to 39.3 million,
43.2 million and 47.1 million, respectively.
Based on the assumptions described in the preceding paragraph, the total expenses of the offering and
listing to be borne by the Issuer are expected to amount to 51.8 million, 55.7 million and 59.6 million,
respectively.
Investors will not be charged expenses by the Issuer or the Underwriters.
47
REASONS FOR THE OFFERING AND LISTING
The Issuer currently intends to (i) sell the New Shares to finance the growth and development of its
companies and (ii) list the Issuers shares on the non-regulated market segment (Entry Standard) of the Frankfurt
Stock Exchange (Frankfurter Wertpapierbrse) to achieve better access to the capital markets.
The Issuer will receive the proceeds of the offering resulting from the sale of the New Shares and, if and
to the extent the Greenshoe Option is exercised, from the exercise of the Greenshoe Shares, in each case after
deduction of fees and commissions.
Assuming a placement of all New Shares (32,941,177 shares), the Issuer estimates that gross proceeds
would amount to approximately 1,169.4 million, 1,284.7 million and 1,400.0 million, respectively, at the low
end, mid-point and high end of the Price Range; net proceeds would amount to approximately 1,123.5 million,
1,235.5 million and 1,347.5 million, respectively, at the low end, mid-point and high end of the Price Range.
Assuming full exercise of the Greenshoe Option and a placement of all Offer Shares, the Issuer
estimates that gross proceeds would amount to approximately 1,344.8 million, 1,477.4 million and 1,610.0
million, respectively, at the low end, mid-point and high end of the Price Range; net proceeds would amount to
approximately 1,293.0 million, 1,421.7 million and 1,550.4 million, respectively, at the low end, mid-point
and high end of the Price Range.
The Issuer currently expects to receive total net proceeds of 1,293.0 million to 1,550.4 million from
the offering (assuming placement of the maximum number of Offer Shares and full exercise of the Greenshoe
Option). The Issuer currently intends to spend approximately 400 million to 500 million of the proceeds from
the offering on investments in proven winners in order to increase its stakes in these companies. The Issuer
currently intends to spend 250 million to 350 million on equity capital investments in selected emerging stars,
including in particular foodpanda, Helpling and Lendico, in order to retain or attain a majority position over the
long-term and to reduce their reliance on outside funding sources. Further, the Issuer currently intends to spend
600 million to 700 million on concepts and new companies in order to be in a position to expand the funding
of new companies significantly beyond seed round to retain a majority ownership position also over the long-
term.
The Issuer currently intends to use its total funds consisting of existing cash of 726 million and the net
proceeds from the offering of 1,293.0 million to 1,550.4 million from the offering (assuming placement of the
maximum number of Offer Shares and full exercise of the Greenshoe Option) for investments in proven winners,
emerging stars, concepts and new companies and to broaden its presence in the financial technology sector. The
Issuer currently intends to spend about 40% to 50% of the proceeds on concepts and new companies. It currently
intends to spend about 15% to 25% of its total funds on investments in proven winners. Further, the Issuer
currently intends to spend 15% to 25% of its total funds on investments in selected emerging stars and about 15%
to broaden its presence in the financial technology sector by launching new companies and accelerating existing
investments.
48
DIVIDEND POLICY; RESULTS AND DIVIDENDS PER SHARE; USE OF PROFITS
General Provisions Relating to Profit Allocation and Dividend Payments
The shareholders share of the Issuers profits is determined based on their respective interests in the
Issuers share capital. In a German stock corporation (Aktiengesellschaft) under German law as well as in a
European company (SE) after the Issuers intended transformation, the distribution of dividends for a given fiscal
year, and the amount and payment date thereof, are resolved by the general shareholders meeting of the
subsequent fiscal year either upon a joint proposal by the Management Board and the Supervisory Board or upon
the Management Boards or the Supervisory Boards proposal. The general shareholders meeting for a German
stock corporation must be held within the first eight months of each fiscal year (six months for a European
company (SE)).
Dividends may only be distributed from the distributable profit (Bilanzgewinn) of the Issuer. The
distributable profit is calculated based on the Issuers unconsolidated annual financial statements prepared in
accordance with the accounting principles of German GAAP. Accounting principles set forth in German GAAP
differ from International Financial Reporting Standards as adopted by the EU in material respects.
When determining the distributable profit, net income or loss for the fiscal year (Jahresberschuss/
-fehlbetrag) must be adjusted for profit/loss carry forwards (Gewinn-/Verlustvortrge) from the prior fiscal year
and releases of or allocations to reserves. Certain reserves are required to be set up by law, and amounts
mandatorily allocated to these reserves in the given fiscal year must be deducted when calculating the
distributable profit. The Management Board must prepare financial statements (balance sheet, income statement
and notes to the financial statements) and a management report for the previous fiscal year by the statutory
deadline and present these to the Supervisory Board and the auditors immediately after preparation. At the same
time, the Management Board must present to the Supervisory Board a proposal for the allocation of the Issuers
distributable profit pursuant to Section 170 of the German Stock Corporation Act (Aktiengesetz) and after the
transformation into an European company (SE) together with Article 61 of the Council Regulation (EC)
2157/2001 of October 8, 2001 on the Statute for a European company (SE) (SE-Regulation). According to
Section 171 of the German Stock Corporation Act (Aktiengesetz), the Supervisory Board must review the
financial statements, the Management Boards management report and the proposal for the allocation of the
distributable profit and report to the general shareholders meeting in writing on the results.
The general shareholders meetings resolution on the allocation of the distributable profit requires a
simple majority of votes to be passed. Pursuant to Section 21 para. 4 of the Articles of Association, the general
shareholders meeting may also resolve that the dividends be distributed partially or entirely in kind, for example
as a distribution of treasury shares if held by the Issuer at that time. At the same time, the Management Board
must present to the Supervisory Board a proposal for the allocation of the Issuers distributable profit pursuant to
Section 170 of the German Stock Corporation Act (Aktiengesetz). According to Section 171 of the German Stock
Corporation Act (Aktiengesetz), the Supervisory Board must review the financial statements, the Management
Boards management report and the proposal for the allocation of the distributable profit and report to the general
shareholders meeting in writing on the results. Dividends resolved by the general shareholders meeting are due
and payable immediately after the relevant general shareholders meeting, unless provided otherwise in the
dividend resolution, in compliance with the rules of the respective clearing system. Any dividends not claimed
within the past three years become time-barred. Once the statute of limitations applies, the dividend payment
claim passes to the Issuer. Since all of the Issuers dividend entitlements are evidenced by one global dividend
coupon deposited with Clearstream Banking Aktiengesellschaft, Clearstream Banking Aktiengesellschaft
transfers the dividends to the shareholders custodian banks for crediting to their accounts. German custodian
banks are under the same obligation to distribute the funds to their customers. Shareholders using a custodian
bank located outside Germany must inquire at their respective bank regarding the terms and conditions
applicable in their case. Notifications of any distribution of dividends resolved upon are published in the German
Federal Gazette (Bundesanzeiger) immediately after the general shareholders meeting. To the extent dividends
can be distributed by the Issuer in accordance with German GAAP and corresponding decisions are taken, there
are no restrictions on shareholder rights to receive dividends. Generally, withholding tax (Kapitalertragsteuer) is
withheld from dividends paid. For more information on the taxation of dividends, see Taxation in Germany
Taxation of Shareholders and Taxation in LuxembourgLuxembourg Taxation of Shares of a Non-Resident
CompanyWithholding Taxes.
Dividend Policy and Earnings per Share
The Issuer currently intends to retain all available funds and future earnings, if any, to provide more
equity capital to its companies to support their operations and to position them to grow. The Issuer currently
49
does not intend to pay cash dividends in the foreseeable future. Any future determination to pay dividends will be
made in accordance with applicable laws, and will depend upon, among other factors, the Issuers results of
operations, financial condition, contractual restrictions and capital requirements. The Issuers future ability to pay
dividends may be limited by the terms of any future debt or preferred securities.
The following table shows the total and per share net income for fiscal year 2013 attributable to the
Issuers shareholders, as shown in (i) the Issuers audited unconsolidated financial statements prepared in
accordance with German GAAP for such year and (ii) the Issuers audited consolidated financial statements
prepared in accordance with German GAAP for such year. The per share figures are calculated assuming that
120,102,255 bearer shares the number of the bearer shares issued and outstanding as of the date of the
prospectus but prior to the issuance of the New Shares were issued and outstanding during the entire fiscal year
2013.
Per share Total
(unaudited) (in ) (audited) (in million)
Net income as shown in the Issuers audited unconsolidated
annual financial statements prepared in accordance with
German GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.23 147.1
Consolidated profit for the period attributable to the
shareholders of the Issuer as shown in the Issuers audited
consolidated financial statements prepared in accordance
with German GAAP
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.57 188.4
(1) Corresponds to consolidated net income for the year in 2013 plus loss attributable to minority interests in 2013.
The following table shows the total distributions of profits or reserves made to shareholders of the Issuer
in fiscal years 2011, 2012 and 2013, which have been taken from the audited unconsolidated financial statements
of the Issuer as of and for the fiscal years ended December 31, 2011, December 31, 2012 and December 31,
2013, and in the six months ended June 30, 2014, which have been taken from the unaudited condensed interim
consolidated financial statements of the Group as of and for the six months ended June 30, 2014.
Year ended
December 31,
Six months ended
June 30,
2011 2012 2013 2014
(audited) (unaudited)
(in million) (in million)
Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . (470.8)
(1)
(80.6)
(2)
(323.9)
(3)
(1) Includes a cash component of 414.2 million and a distribution in kind relating to shares in Groupon, Inc. For further information on the
distribution in kind, see Groupon, Inc. Dividend in Kind below. The cash component served the primary purposes of passing on
profits from the sale of shares in Groupon, Inc. and profits from the sale of shares in Zalando.
(2) Includes a cash component only. The cash component served the primary purposes of passing on profits from the sale of shares in
Zalando.
(3) Includes a cash component of 286.8 million and a distribution in kind relating to shares in Bigfoot I and Bigfoot II. For more
information, see Bigfoot I and Bigfoot II Dividend in Kind below.
Groupon, Inc. Dividend in Kind
On October 15, 2012, the then existing shareholders of the Issuer resolved on granting all shareholders
of the Issuer a dividend in kind relating to shares in Groupon, Inc. Accordingly, the Issuer transferred 10,400,357
shares in Groupon, Inc. to GFG and 3,466,786 shares in Groupon, Inc. to Emesco. The value of these shares in
Groupon, Inc. is included in the distribution pay-outs for the year ended December 31, 2012 shown in the table
under Dividend Policy and Earnings per Share above.
Bigfoot I and Bigfoot II Dividend in Kind
On May 30, 2014, the then existing shareholders of the Issuer resolved on granting certain shareholders
of the Issuer a dividend in kind and, consequently, the Issuer transferred by way of a separate share transfer
agreement 4,145 and 1,892 shares in Bigfoot I to Emesco and AI European Holdings S. r.l., respectively, as well
as 4,559 and 2,082 shares in Bigfoot II to Emesco and AI European Holdings S. r.l., respectively, as a dividend
in kind. In addition, a cash dividend of 286.8 million was paid to GFG. The cash payment and the value of the
shares distributed are included in the distribution pay-outs for the six months ended June 30, 2014 in the table
under Dividend Policy and Earnings per Share above.
50
CAPITALIZATION AND INDEBTEDNESS; STATEMENT ON WORKING CAPITAL
The following tables set forth the Groups actual capitalization and indebtedness of the Issuer (i) as of
June 30, 2014, as well as adjustments for (ii) the effects of the capital increases that took place between July 1,
2014 and September 22, 2014, (iii) the effects of the capital increase from own resources by 119,912,520.00
from 189,735.00 to 120,102,255.00, (iv) the effects of the offering and the currently intended use of proceeds
and (v) the Groups total capitalization and indebtedness to reflect the adjustments described in (ii) to (iv), as if
the capital increases that took place between July 1, 2014 and September 14, 2014 (see ii), the capital increases
from own resources (see iii) and the offering (see iv) each had taken place at June 30, 2014, without regard to tax
effects. The effects of the capital increase from own resources and the effects of the offering and the currently
intended use of proceeds are presented in separate columns in order to disclose the effects of the proceeds raised
in the offering. Investors should read these tables in conjunction with Selected Consolidated Financial
Information and Issuer Information, Managements Discussion and Analysis of Financial Condition and
Results of Operations, and the unaudited condensed interim consolidated financial statements as of and for the
six months ended June 30, 2014, including the notes thereto, which are included in this prospectus, beginning on
page F-1. For more information on the capital increases shown under (ii) in the table below, please see
Corporate Structure, Financing Rounds and Cash ManagementIssuer Financing and Description of Share
Capital of Rocket Internet AG and Applicable RegulationsDevelopment of the Share Capital since the Issuers
Foundation.
Capitalization
Actual as of
June 30,
2014
(i)
Effects of
capital
increases
(1)
(ii)
Effects of
capital
increase
from own
resources
(2)
(iii)
Effects of the offering
and currently intended
use of proceeds
(3)
(iv)
Total
(4)
(v)
(excluding
exercise of
the
Greenshoe
Option)
(assuming
full exercise
of the
Greenshoe
Option)
Prior to implementation
of the offering
Upon completion of the offering
(assuming an offer price at the mid-
point of the Price Range)
(unaudited)
(in million)
Total current debt
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . 54.4 54.4
guaranteed
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
secured
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
unguaranteed/unsecured . . . . . . . . . . . . . . . . . 54.4 54.4
Total non-current debt (excluding current
portion of long-term debt)
(8)
. . . . . . . . . . . . . 0.5 0.5
guaranteed
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
secured
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
unguaranteed/unsecured . . . . . . . . . . . . . . . . . 0.5 0.5
Shareholders equity
(9)
. . . . . . . . . . . . . . . . . . . . . . 468.9 1,048.5 0.0 1,235.5 1,421.7 2,939.1
Share capital
(10)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1 119.9 32.9 37.9 158.0
Legal reserve
(11)
. . . . . . . . . . . . . . . . . . . . . . . . . . 501.2 1,048.4 (119.9) 1,251.8 1,439.5 2,869.2
Other reserves
(12)
. . . . . . . . . . . . . . . . . . . . . . . . . (32.3) (49.2) (55.7) (88.0)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523.8 1,048.5 0.0 1,235.5 1,421.7 2,994.0
(1) Reflects the capital increases resolved by the shareholders meeting of the Issuer held on August 22, 2014. Following the redemption of
38,597 treasury shares the Issuers subscribed capital was increased from its own resources by 33,152.00 from 110,346.00 to
143,498.00 and subsequently increased against contributions in cash in three resolutions by 15,944.00 to 159,442.00, by 25,527.00
to 184,969.00 and lastly by 4,766.00 to 189,735.00. The subscribed capital increases are fully paid and were registered with the
Commercial Register on September 1, 2014. In conjunction with the abovementioned subscribed capital increases the investors PLDT
and United Internet undertook to make additional cash payments totaling 666.7 million into the Issuers capital reserves. In addition, in
conjunction with the aforesaid subscribed capital increases resolved on August 22, 2014, the investors United Internet, GFG and
Holtzbrinck undertook vis--vis the other shareholders, but not vis--vis the Issuer (except with respect to certain participations
contributed by Holtzbrinck), to make additional non-cash contributions consisting of participations in several companies into the Issuers
capital reserves. According to the terms of the underlying investment agreements the fair value of the contributed participations
aggregates to approximately 381.8 million. It is assumed hereby that the contribution of those participations in several companies into
the Issuers capital reserves is recognized at the above-stated fair value of approximately 381.8 million.
51
(2) By resolution of the extraordinary shareholders meeting of the Issuer held on August 22, 2014, the Issuers subscribed capital was
increased from its own resources by 119,912,520.00 from 189,735.00 to 120,102,255.00. The subscribed capital increase was
registered with the Commercial Register on September 1, 2014.
(3) It is assumed that all New Shares were fully placed at the mid-point of the Price Range resulting in gross proceeds of 1,284.7 million
and net proceeds of 1,235.5 million; it is further assumed that the proceeds generated are used as described under Reasons for the
Offering and Listing and Use of Proceeds.
(4) The column Total presents the Groups capitalization as of June 30, 2014, adjusted for the effects of the capital increase from own
resources presented in column (ii) and the offering and the currently intended use of proceeds presented in column (iii) assuming full
exercise of the Greenshoe Option.
(5) Sum of liabilities with a residual term of up to one year, each shown in the Issuers unaudited condensed interim consolidated financial
statements as of and for the six months ended June 30, 2014.
(6) As of June 30, 2014, the Issuer did not have any guaranteed liabilities.
(7) As of June 30, 2014, the Issuer did not have any secured liabilities.
(8) Liabilities of 54.8 million less the sum of liabilities with a residual term of up to 1 year of 54.3 million, each as shown in the Issuers
unaudited condensed interim consolidated financial statements as of and for the six months ended June 30, 2014.
(9) Equity capital of 491.5 million excluding minority interests of 22.5 million, each as shown in the Issuers unaudited condensed interim
consolidated financial statements as of and for the six months ended June 30, 2014.
(10) Shown as subscribed capital in the Issuers unaudited condensed interim consolidated financial statements as of and for the six months
ended June 30, 2014.
(11) Shown as capital reserves in the Issuers unaudited condensed interim consolidated financial statements as of and for the six months
ended June 30, 2014.
(12) Comprises revenue reserves of 208.6 million, accumulated other comprehensive income of negative 2.1 million and unappropriated
retained earnings of negative 238.8 million, each shown in the Issuers unaudited condensed interim consolidated financial statements
as of and for the six months ended June 30, 2014.
Indebtedness
Actual as of
June 30,
2014
(i)
Effects of
capital
increases
(1)
(ii)
Effects of
capital
increase
from own
resources
(2)
(iii)
Effects of the offering
and currently intended
use of proceeds
(3)
(iv)
Total
(4)
(v)
(excluding
exercise of
the
Greenshoe
Option)
(assuming
full exercise
of the
Greenshoe
Option)
Prior to implementation
of the offering
Upon completion of the offering
(assuming an offer price at the mid-
point of the Price Range)
(unaudited)
(in million)
A. Cash
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.5 666.7 1,235.5 1,421.7 2,168.9
B. Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Trading securities
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . 41.0 41.0
D. Liquidity (A)+(B)+(C) . . . . . . . . . . . . . . . . . . . . . . 121.5 666.7 1,235.5 1,421.7 2,209.9
E. Current financial receivable
(7)
. . . . . . . . . . . . 69.6 69.6
F. Current bank debt
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
G. Current portion of non current debt . . . . . . . . .
H. Other current financial debt
(9)
. . . . . . . . . . . . . . . 54.3 54.3
I. Current financial debt (F)+(G)+(H) . . . . . . . 54.4 54.4
J. Net current financial indebtedness
(I)-(E)-(D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (136.8) (666.7) (1,235.5) (1,421.7) (2,225.2)
K. Non current bank loans . . . . . . . . . . . . . . . . . . . . . .
L. Bonds issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
M. Other non current loans
(10)
. . . . . . . . . . . . . . . . . . 0.5 0.5
N. Non current financial indebtedness
(K)+(L)+(M) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.5
O. Net financial indebtedness (J)+(N) . . . . . . . . (136.3) (666.7) (1,235.5) (1,421.7) (2,224.7)
(1) Reflects the capital increases resolved by the shareholders meeting of the Issuer held on August 22, 2014. Following the redemption of
38,597 treasury shares the Issuers subscribed capital was increased from its own resources by 33,152.00 from 110,346.00 to
143,498.00 and subsequently increased against contributions in cash in three resolutions by 15,944.00 to 159,442.00, by 25,527.00
to 184,969.00 and lastly by 4,766.00 to 189,735.00. The subscribed capital increases are fully paid and were registered with the
Commercial Register on September 1, 2014. In conjunction with the abovementioned subscribed capital increases the investors PLDT
and United Internet undertook to make additional cash payments totaling 666.7 million into the Issuers capital reserves. In addition, in
conjunction with the aforesaid subscribed capital increases resolved on August 22, 2014, the investors United Internet, GFG and
Holtzbrinck undertook vis--vis the other shareholders, but not vis--vis the Issuer (except with respect to certain participations
contributed by Holtzbrinck), to make additional non-cash contributions consisting of participations in several companies into the Issuers
capital reserves. According to the terms of the underlying investment agreements the fair value of the contributed participations
52
aggregates to approximately 381.8 million. It is assumed hereby that the contribution of those participations in several companies into
the Issuers capital reserves is recognized at the above-stated fair value of approximately 381.8 million.
(2) By resolution of the extraordinary shareholders meeting of the Issuer held on August 22, 2014, the Issuers subscribed capital was
increased from its own resources by 119,912,520.00 from 189,735.00 to 120,102,255.00. The subscribed capital increase was
registered with the Commercial Register on September 1, 2014.
(3) It is assumed that all New Shares were fully placed at the mid-point of the Price Range resulting in gross proceeds of 1,284.7 million
and net proceeds of 1,235.5 million; it is further assumed that the proceeds generated are used as described under Reasons for the
Offering and Listing and Use of Proceeds.
(4) The column Total presents the Groups capitalization as of June 30, 2014, adjusted for the effects of the capital increase from own
resources presented in column (ii) and the effects of the offering and the currently intended use of proceeds presented in column
(iii) assuming full exercise of the Greenshoe Option.
(5) Shown as cash in hand, bank balances and checks in the Issuers unaudited condensed interim consolidated financial statements as of and
for the six months ended June 30, 2014.
(6) Shown as other securities in the Issuers unaudited condensed interim consolidated financial statements as of and for the six months
ended June 30, 2014.
(7) Receivables and other assets of 70.1 million less receivables and other assets with a residual term of more than one year of 0.5 million,
each shown in the Issuers unaudited condensed interim consolidated financial statements as of and for the six months ended June 30,
2014.
(8) Shown as liabilities to banks with a residual term of up to one year in the Issuers unaudited condensed interim consolidated financial
statements as of and for the six months ended June 30, 2014.
(9) Sum of liabilities (except for liabilities to banks) with a residual term of up to one year, each shown in the Issuers unaudited condensed
interim consolidated financial statements as of and for the six months ended June 30, 2014.
(10) Other liabilities of 9.1 million less other liabilities with a residual term of up to one year of 8.6 million, each shown in the Issuers
unaudited condensed interim consolidated financial statements as of and for the six months ended June 30, 2014.
Indirect Liabilities, Contingent Liabilities
The Groups other financial obligations, which are also referred to as indirect liabilities, amounted to
4.9 million as of June 30, 2014. These comprise mainly obligations from operating leases. The Group did not
have any material contingent liabilities as of June 30, 2014.
Statement on Working Capital
The Issuer is of the opinion that the Group has sufficient working capital to meet the payment
obligations that become due within the twelve-month period following the date of this prospectus.
53
DILUTION
The dilutive effect of the offering is illustrated in the table below demonstrating the amount by which
the offer price at the low end, mid-point and high end of the Price Range exceeds the total equity attributable to
shareholders per share after completion of the offering. After giving effect to the capital increases that took place
between July 1, 2014 and September 22, 2014 and the issuance of the New Shares in the context of the offering,
assuming an offer price of 39.00 at the mid-point of the Price Range and full exercise of the Greenshoe Option,
the equity attributable to the Issuers shareholders based on the total net proceeds from the offering would have
been 2,939.1 million as of June 30, 2014, or 18.6 per Issuers share. That would correspond to a direct dilution
of 20.4, corresponding to 52.3%, per Issuers share for the parties acquiring the Offer Shares, based on
157,984,608 outstanding Issuers shares following the completion of the offering (assuming a placement of all
New Shares and full exercise of the Greenshoe Option).
Low End Mid-Point High End
Offer price per share (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.50 39.00 42.50
Total equity attributable to shareholders per share as of June 30, 2014
(pre-IPO net book value
(1)
) (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.63 12.63 12.63
Post-IPO equity per Share (post-IPO net book value
(2)
) (in ) . . . . . . . . . . . . . . . . . . . . 17.79 18.60 19.42
Amount by which the post-IPO net book value exceeds the pre-IPO net book
value (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.15 5.97 6.78
Amount by which the offer price per share exceeds the post-IPO net book
value (immediate dilution per share) (in ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.71 20.40 23.08
(1) Pre-IPO net book value refers to the sum of subscribed capital minus treasury shares plus capital reserves plus revenue reserves plus
accumulated other comprehensive income plus unappropriated retained earnings as of June 30, 2014 plus the equity capital contributed in
the capital increases that took place between July 1, 2014 and September 22, 2014 divided by the number of outstanding shares
immediately prior to the offering.
(2) Post-IPO net book value refers to the sum of subscribed capital minus treasury shares plus capital reserves plus revenue reserves plus
accumulated other comprehensive income plus unappropriated retained earnings as of June 30, 2014 plus the equity capital contributed in
the capital increased that took place between July 1, 2014 and September 22, 2014 plus the net proceeds from the issuance of all New
Shares at the low-point, mid-point and high-point of the price range plus the proceeds from the exercise of the Greenshoe Option in full
divided by the number of outstanding shares (assuming a placement of all New Shares and full exercise of the Greenshoe Option).
54
SELECTED CONSOLIDATED FINANCIAL INFORMATION AND ISSUER INFORMATION
The financial information contained in the following tables is taken or derived from the audited
consolidated financial statements of the Issuer as of and for the fiscal year ended December 31, 2013 and the
unaudited condensed interim consolidated financial statements of the Group as of and for the six months ended
June 30, 2014 and the Groups accounting or controlling records, or has been calculated on the basis of figures
taken from the above-mentioned sources, unless otherwise indicated. These consolidated financial statements
have been prepared in accordance with German GAAP. The Issuer has not prepared any consolidated financial
statements for any prior period. Additional information included in this prospectus has been taken from the
audited unconsolidated financial statements of the Issuer for the fiscal years ended December 31, 2013, 2012
and 2011, which were prepared in accordance with German GAAP.
E&Y has audited the consolidated financial statements for the fiscal year ended December 31, 2013,
which do not contain comparative financial information for the fiscal year ended December 31, 2012 and issued
an unqualified auditors report thereon. PwC has audited the unconsolidated financial statements for the fiscal
years ended December 31, 2011, December 31, 2012 and December 31, 2013 and issued an unqualified
auditors report on each of these unconsolidated financial statements. The aforementioned German GAAP
financial statements of the Issuer and the auditors reports thereon are included in this prospectus.
Where financial data in the following tables is labelled audited, this means that it has been taken
from the audited financial statements mentioned above. The label unaudited is used in the following tables to
indicate financial data that has not been taken from the audited financial statements mentioned above but was
taken either from the Groups unaudited condensed interim consolidated financial statements or the Groups
accounting or controlling records, or has been calculated on the basis of figures taken from the above-mentioned
sources, unless otherwise indicated. All of the financial data presented in the text and tables below are shown in
millions of euro (in million), except as otherwise stated. Certain financial data in the text and in the tables
(including percentages) in this prospectus have been rounded according to established commercial standards,
whereby aggregate amounts (sum totals, sub-totals, differences or amounts put in relation) are calculated on the
underlying unrounded amounts. As a result, the aggregate amounts (sum totals or sub-totals or differences or if
numbers are put in relation) may not correspond in all cases to the corresponding rounded amounts contained in
the following text and tables. Furthermore, in the following tables, these rounded figures may not add up exactly
to the totals contained in the respective tables and charts. The percentage changes that are stated in the text and
the tables have been commercially rounded to one decimal place unless stated otherwise. Financial information
presented in parentheses denotes the presented number is a negative number. In respect of financial data set out
in the main body of the prospectus (i.e. other than in the section entitled Financial Information), a dash ()
signifies that the relevant figure is not available, while a zero (0) signifies that the relevant figure is available
but has been rounded to or equals zero.
The following selected financial information should be read together with the section Managements
Discussion and Analysis of Financial Condition and Results of Operations, the consolidated financial
statements, the unconsolidated financial statements as well as the related notes contained in this prospectus and
additional financial information contained elsewhere in this prospectus.
55
Consolidated Income Statement
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.5 33.0 47.0
Increase / (decrease) in the work in process inventory . . . . . . . . . . . . . (0.5) 1.3 0.7
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.9 0.9 18.2
137.9 35.2 65.8
Cost of materials
Cost of raw materials, consumables and supplies and of
purchased merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27.7) (12.1) (16.7)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.6) (3.2) (4.2)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.5) (16.0) (23.5)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . (7.0) (3.2) (4.5)
Amortization / depreciation
of intangible assets and of property, plant and equipment . . . . (1.1) (0.5) (0.8)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.8) (18.2) (40.3)
(150.6) (53.3) (89.9)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 0.1
Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199.9 41.0 13.2
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.2 0.2
Write-downs of financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) 0.0 (0.0)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (0.2) (0.7)
199.7 40.9 12.7
Result from ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187.0 22.8 (11.3)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12.3) (0.2) (1.5)
Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.3) (0.4)
(12.8) (0.5) (1.9)
Consolidated net income / net loss for the period . . . . . . . . . . . . . . . . 174.2 22.3 (13.3)
Profit / (loss) carried forward from previous period . . . . . . . . . . . . . . . . (23.4) (23.4) 84.4
Advance dividend pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.6) (323.9)
Loss attributable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 5.5 13.9
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 4.4 (238.8)
56
Consolidated Balance Sheet Data
As of December 31, As of June 30,
2013 2014
(audited) (unaudited)
(in million) (in million)
ASSETS
Fixed assets
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.3
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 3.0
Financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390.5 380.7
thereof equity investments in associates . . . . . . . . . . . . . . . . . . . . . . . 361.1 351.1
394.2 385.1
Current assets
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 9.8
Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.5 70.1
thereof receivables from associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.6 47.1
45.0
(1)
79.9
Other securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.0
Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437.4 80.5
482.4 201.5
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 0.7
Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.3
877.4 587.6
EQUITY AND LIABILITIES
Equity capital
Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1
treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0)
0.1 0.1
Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462.2 501.2
Revenue reserves
Other revenue reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208.9 208.6
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (2.1)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 (238.8)
Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.0 22.5
773.0 491.5
Negative consolidation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.0
Provisions
Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 14.0
Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.1 27.1
37.2 41.1
Liabilities
Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
Prepayments received on an account of orders . . . . . . . . . . . . . . . . . . . . . . 0.5 0.3
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2 20.4
Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5 0.0
Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 1.1
Liabilities to associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.4 24.0
Other liabilities
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 9.1
66.8 54.8
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 0.2
Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
877.4 587.6
(1) Unaudited.
(2) Other liabilities include liabilities for taxes in the amount of 3.1 million as of June 30, 2014 and 4.1 million as of December 31, 2013
and liabilities for social security in the amount of 0.5 million as of June 30, 2014 and 0.2 million as of December 31, 2013.
57
Consolidated Cash Flow Statement Data
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38.9) (18.4) (55.5)
Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.5 (6.8) (62.2)
Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116.8 6.9 (229.7)
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.4 (18.3) (347.4)
Changes in cash and cash equivalents due to exchange rates,
changes in the basis of consolidation and valuation . . . . . . . . . . . . 0.0 0.0 (9.5)
Cash and cash equivalents at the beginning of the period . . . . . . . . . 187.0 187.0 437.4
Cash and cash equivalents at the end of period . . . . . . . . . . . . . . . . . . . . 437.4 168.8 80.5
Unconsolidated Income Statement
The following financial data has been taken from the audited unconsolidated financial statements of
Rocket Internet GmbH as of and for the financial years ended December 31, 2011, December 31, 2012 and
December 31, 2013.
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 24.3 26.0
Increase/(decrease) in the work process inventory . . . . . . . . . . . . . . . . . . . . 0.1 2.4 (0.5)
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.7 176.8 187.5
Cost of materials
Cost of raw materials and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.3) (0.1) (0.8)
Cost of purchase services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (10.3) (7.2)
(0.4) (10.4) (8.0)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6) (14.1) (22.9)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (1.9) (2.1)
(4.3) (16.0) (25.0)
Amortization/depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of intangible assets and of property, plant and equipment . . . . . . . . . . (0.1) (0.4) (0.4)
of current assets in excess of what is usual in the corporation . . . . . . (0.9)
(0.1) (0.4) (1.3)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.9) (11.3) (17.4)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.6 218.1 0.3
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.2 0.4
Write-downs on financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.7) (3.1) (3.1)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0)
Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.2 380.6 158.9
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (2.5) (11.7)
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 378.1 147.1
Profit carried forward from previous year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.2
Withdrawals from capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4
Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (470.8) (80.6)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 66.6
58
Additional Key Figures
According to available financial information, our proven winners, emerging stars, regional Internet groups,
concepts, strategic participations and other investments (excluding results of participations that belonged to the
Global Founders Capital Fund portfolio and were contributed in August 2014), were, each in the aggregate, loss
making (based on the respective last financial year). However, with the exception of the proven winners, the
Issuer is not in possession of information that would allow it to reliably quantify the aggregate loss of the
companies in any other category. For our proven winners, the Issuer has reliable and meaningful financial
information. Our proven winners generated aggregated net losses of 442 million (unaudited sum total of their
net losses based on generally accepted accounting principles applicable for the relevant company, in each case
taking the last financial year for which data was available and excluding extraordinary gains of Dafiti resulting
from the measurement of limited partnership interests). For our emerging stars, the Issuer has reliable and
meaningful financial information for CupoNation, Lendico, Paymill and Zencap.
The following table presents a summary of certain additional key figures of our proven winners and for
CupoNation, Lendico, Paymill and Zencap for the periods presented. The data has been derived from accounting
or controlling records of these companies. While we believe that our proven winners show promise, there is no
guarantee that they will in fact become successful businesses.
Year ended December 31,
2012 2013
(unaudited)
Proven Winners
Dafiti
(1)
Net revenues (in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.5 419.3
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 88
Gross profit margin
(2)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 34
EBITDA
(3)
(in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (168.5) (205.3)
Loss for the year
(4)
(in BRL million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) (2.3)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (0.8)
Lamoda
(5)
Net revenues
(6)
(in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475.8 5,150.0
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 249
Gross profit margin
(7)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 40
EBITDA
(8)
(in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,603.7) (1,920.9)
Loss for the year (in RUB million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,370.1) (1,692.1)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (34.4) (40.1)
Zalora
(9)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 68.9
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(10)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 38
EBITDA
(11)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (68.3)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (71.1)
Jabong
(12)
Net revenues
(13)
(in INR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433.1 4,385.7
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 206
Gross profit margin
(14)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26) (10)
EBITDA
(15)
(in INR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,875.7) (2,491.5)
Net loss (in INR million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,186.5) (2,934.4)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46.5) (37.9)
Namshi
(16)
Net revenues
(17)
(in AED million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 53.2
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 226
Gross profit margin
(18)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 46
EBITDA
(19)
(in AED million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58.6) (49.3)
Loss for the year
(20)
(in AED milliion) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.2) (50.5)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.1) (10.4)
Lazada
(21)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 56.8
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(22)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 6
EBITDA
(23)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (50.7)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (51.8)
Linio
(24)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 47.9
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 633
Gross profit margin
(25)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) 10
EBITDA
(26)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (34.1)
Profit/(loss) for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (35.9)
59
Year ended December 31,
2012 2013
(unaudited)
Proven Winners
Jumia
(27)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 29.0
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
Gross profit margin
(28)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 19
EBITDA
(29)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (33.6)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (35.1)
Westwing
(30)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.8 111.4
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 143
Gross profit margin
(31)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 40
EBITDA
(32)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.9) (39.5)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64.0) (41.5)
Home24
(33)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.1 92.8
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 50
Gross profit margin
(34)
(in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 39
EBITDA
(35)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.7) (37.9)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81.6) (41.8)
Hellofresh
(36)
Net revenues (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 14.2
Net revenues growth (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 510
Gross profit margin (in %) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a
EBITDA
(37)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.2)
Loss for the year (in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.4)
Emerging stars
CupoNation (net loss for the period)
(38)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3.0)
Lendico (net loss for the period)
(39)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (3.2)
Paymill (net loss for the period)
(40)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (4.7)
Zencap (net loss for the period)
(41)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a (0.0)
(1) Dafitis consolidated key financial indicators have been prepared on the basis of Full IFRS.
(2) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: BRL 419.3 million;
2012: BRL 223.5 million) minus (ii) cost of goods sold (2013: BRL 276.3 million; 2012: BRL 132.9 million).
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of BRL 208.1 million; 2012: loss of BRL 170.4 million) plus
(ii) depreciation of property, plant and equipment (2013: BRL 2.3 million; 2012: BRL 1.5 million) plus (iii) amortization of intangible
assets (2013: BRL 0.5 million; 2012: BRL 0.3 million). EBITDA includes share based payment expense that amounted to
BRL 4.0 million in 2013 and BRL 14.6 million in 2012.
(4) Loss for the year included change in redemption value of puttable shares (2013: BRL 202.1 million, 2012: 172.4 million) and, therefore,
loss for the year before change in redemption value of puttable shares was BRL 204.4 million in 2013 and BRL 173.4 million in 2012.
The gain from the change of redemption amount results from the measurement of limited partnership interests that are classified as
liabilities in accordance with IAS 32.
(5) Lamodas consolidated key financial indicators have been prepared on the basis of Full IFRS.
(6) Referred to as revenue in Lamodas accounting or controlling records.
(7) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: RUB 5,150.0 million;
2012: RUB 1,475.8 million) minus (ii) cost of sales (2013: RUB 3,111.8 million; 2012: RUB 1,013.1 million).
(8) EBITDA is calculated as (i) operating profit or loss (2013: loss of RUB 1,982.7 million; 2012: loss of RUB 1,616.1 million) plus
(ii) depreciation of property, plant and equipment (2013: RUB 47.0 million; 2012: RUB 10.9 million) plus (iii) amortisation of
intangible assets (2013: RUB 14.7 million; 2012: RUB 1.5 million). EBITDA includes share based payment expenses of
RUB 37.9 million in 2013 and RUB 21.5 million in 2012.
(9) Zaloras consolidated key financial indicators have been prepared on the basis of Full IFRS.
(10) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 68.9 million) minus
(ii) cost of goods sold (2013: 42.6 million).
(11) EBITDA is calculated as (i) operating profit or loss (2013: loss of 69.2 million) plus (ii) depreciation and impairment of property, plant
and equipment (2013: 0.6 million) plus (iii) amortization of intangible assets (2013: 0.3 million). EBITDA includes share based
payment expense that amounted to 6.9 million in 2013.
(12) Jabong consolidated key financial indicators for the twelve-month period ended March 31, 2013 and March 31, 2014 have been
prepared on the basis of Full IFRS.
(13) Referred to as revenue in Jabongs accounting or controlling records.
(14) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (twelve-month period ended
March 31, 2014: INR 4,385.7 million; twelve-month period ended March 31, 2013: INR 1,433.1 million) minus (ii) cost of sales
(twelve-month period ended March 31, 2014: INR 4,832.8 million; twelve-month period ended March 31, 2013: INR 1,810.7 million).
(15) EBITDA is calculated as (i) loss from operations (twelve-month period ended March 31, 2014: loss of INR 2,573.7 million; twelve-
month period ended March 31, 2013: loss of INR 2,953.5 million) plus (ii) depreciation and amortization (twelve-month period ended
March 31, 2014: INR 82.2 million; twelve-month period ended March 31, 2013: INR 77.8 million). EBITDA includes share-based
payment transaction expense that amounted to INR 65.7 million in the twelve-month period ended March 31, 2014 and INR
153.6 million in the twelve-month period ended March 31, 2013.
60
(16) Consolidated key financial indicators of MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG (prepared on the basis of Full IFRS).
MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG is a 91.1%-owned subsidiary of Middle East eCommerce Holding GmbH and
Middle East eCommerce Holding GmbHs only meaningful asset.
(17) Referred to as sale of goods in Namshis accounting or controlling records.
(18) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: AED 53.2 million;
2012: AED 16.3 million) minus (ii) cost of goods sold (2013: AED 28.9 million; 2012: AED 10.9 million).
(19) EBITDA is calculated as (i) operating profit or loss (2013: loss of AED 50.1 million; 2012: loss of AED 59.0 million) plus
(ii) depreciation of property and equipment (2013: AED 0.6 million; 2012: AED 0.2 million) plus (iii) amortization of intangible assets
(2013: AED 0.2 million; 2012: AED 0.1 million). EBITDA includes expense arising from equity-settled share-based payment
transactions that amounted to AED 12.2 million in 2013 and AED 9.0 million in 2012.
(20) Loss for the year included change of redemption amount of financial liability (2012: AED 34.9 million) and, therefore, loss before
change of redemption amount was AED 59.2 million in 2012. The gain from the change of redemption amount results from the
measurement of limited partnership interests that are classified as liabilities in accordance with IAS 32.
(21) Lazadas consolidated key financial indicators have been prepared on the basis of Full IFRS.
(22) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 56.8 million) minus
(ii) cost of goods sold (2013: 53.2 million).
(23) EBITDA is calculated as (i) operating profit or loss (2013: loss of 51.3 million) plus (ii) depreciation of property, plant and equipment
(2013: 0.5 million) plus (iii) amortization of intangible assets (2013: 0.1 million). EBITDA includes share based payment expense that
amounted to 6.5 million in 2013.
(24) Linios consolidated key financial indicators have been prepared on the basis of Full IFRS.
(25) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 47.9 million; 2012:
6.5 million) minus (ii) cost of goods sold (2013: 43.2 million; 2012: 6.9 million).
(26) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.5 million; 2012: loss of 14.6 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.1 million) plus (iii) amortization of intangible assets (2013: 0.05 million;
2012: 0.01 million). EBITDA includes share based payment expense that amounted to 4.5 million in 2013 and 3.1 million in 2012.
(27) Jumias consolidated key financial indicators have been prepared on the basis of Full IFRS.
(28) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 29.0 million) minus
(ii) cost of goods sold (2013: 23.6 million).
(29) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.1 million) plus (ii) depreciation and impairment of property, plant
and equipment (2013: 0.4 million) plus (iii) amortization and impairment of intangible assets of (2013: 0.03 million). EBITDA
includes share based payment expense that amounted to 3.1 million in 2013.
(30) Westwings consolidated key financial indicators have been prepared on the basis of German GAAP.
(31) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 111.4 million; 2012:
45.8 million) minus (ii) cost of goods sold (2013: 66.6 million; 2012: 34.0 million).
(32) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 62.2 million) plus (ii) depreciation of
fixed assets (2013: 0.7 million; 2012: 0.3 million). Operating profit or loss is calculated as (i) gross profit (2013: 44.8 million; 2012:
11.8 million) minus (ii) selling expenses (2013: 64.4 million; 2012: 50.9 million) minus (iii) general and administrative expenses
(2013: 19.6 million; 2012: 22.4 million) plus (iv) other income (2013: 0.5 million; 2012: 0.2 million) minus (v) other operating
expenses (2013: 1.5 million; 2012: 0.9 million).
(33) Home24s consolidated key financial indicators have been prepared on the basis of the EU-IFRS.
(34) Gross profit margin is the ratio of gross profit to net revenues. Gross profit is calculated as (i) net revenues (2013: 92.8 million; 2012:
62.1 million) minus (ii) cost of goods sold (2013: 56.6 million; 2012: 43.7 million).
(35) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 81.1 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.4 million) plus (iii) amortization of intangible assets (2013: 1.9 million;
2012: 0.03 million). EBITDA includes share based payment expense that amounted to 6.4 million in 2013 and 5.6 million in 2012.
(36) Hellofreshs consolidated key financial indicators have been prepared on the basis of German GAAP.
(37) EBITDA is calculated as (i) result of ordinary business (2013: loss of 5.4 million; 2012: loss of 6.0 million) plus (ii) interest and
similar expenses (0.0 million; 2012: 0.0 million) minus (iii) interest and similar income (2013: 0.0 million; 2012: 0.0 million) plus
(iv) amortization and depreciation of intangible assets and of property, plant and equipment (2013: 0.1 million, 2012: 0.0 million).
(38) Based on CupoNation GmbHs accounting and controlling records that were prepared in accordance with German GAAP.
(39) Net loss for the period from August 30, 2013 to December 31, 2013, based on ECommerce Holding II S. r.l.s accounting and
controlling records that were prepared in accordance with German GAAP.
(40) Based on Paymill GmbHs accounting and controlling records that were prepared in accordance with German GAAP.
(41) Loss for the financial year for the period from September 27, 2013 to December 2013, based on Zencap Global S. r.l.s accounting and
controlling records that were prepared in accordance with Luxembourg generally accepted accounting principles.
61
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The financial information contained in the following discussion is taken or derived from the audited
consolidated financial statements of the Issuer as of and for the fiscal year ended December 31, 2013 and the
unaudited condensed interim consolidated financial statements of the Group as of and for the six months ended
June 30, 2014 and the Groups accounting or controlling records, or has been calculated on the basis of figures
taken from the above-mentioned sources, unless otherwise indicated. These consolidated financial statements
have been prepared in accordance with German GAAP. The Issuer has not prepared any consolidated financial
statements for any prior period. Additional information included in this discussion has been taken from the
audited unconsolidated financial statements of the Issuer for the fiscal years ended December 31, 2013, 2012
and 2011, which were prepared in accordance with German GAAP.
E&Y has audited the consolidated financial statements for the fiscal year ended December 31, 2013,
which do not contain comparative financial information for the fiscal year ended December 31, 2012 and issued
an unqualified auditors report thereon. PwC has audited the unconsolidated financial statements for the fiscal
years ended December 31, December 31, 2012 and December 31, 2013 and issued an unqualified auditors
report on each of these unconsolidated financial statements. The aforementioned German GAAP financial
statements of the Issuer and the auditors reports thereon are included in this prospectus.
Where financial data in the following tables is labelled audited, this means that it has been taken
from the audited financial statements mentioned above. The label unaudited is used in the following tables to
indicate financial data that has not been taken from the audited financial statements mentioned above but was
taken either from the Groups unaudited condensed interim consolidated financial statements or the Groups
accounting or controlling records, or has been calculated on the basis of figures taken from the above-mentioned
sources, unless otherwise indicated. All of the financial data presented in the text and tables below are shown in
millions of euro (in million), except as otherwise stated. Certain financial data in the text and in the tables
(including percentages) in this prospectus have been rounded according to established commercial standards,
whereby aggregate amounts (sum totals, sub-totals, differences or amounts put in relation) are calculated on the
underlying unrounded amounts. As a result, the aggregate amounts (sum totals or sub-totals or differences or if
numbers are put in relation) may not correspond in all cases to the corresponding rounded amounts contained in
the following text and tables. Furthermore, in the following tables, these rounded figures may not add up exactly
to the totals contained in the respective tables and charts. The percentage changes that are stated in the text and
the tables have been commercially rounded to one decimal place unless stated otherwise. Financial information
presented in parentheses denotes the presented number is a negative number. In respect of financial data set out
in the main body of the prospectus (i.e. other than in the section entitled Financial Information), a dash ()
signifies that the relevant figure is not available, while a zero (0) signifies that the relevant figure is available
but has been rounded to or equals zero.
The following discussion should be read together with the consolidated financial statements, the
unconsolidated financial statements as well as the related notes contained in this prospectus and additional
financial information contained elsewhere in this prospectus.
Overview
We identify and build proven Internet business models and transfer them to new, underserved or
untapped markets, mainly outside the United States and China, where we seek to scale them into market leading
online companies. We started in 2007 with 4 employees and 2 consumer brands, based on an initial investment of
0.5 million from European Founders Fund GmbH & Co. Beteiligungs KG Nr. 1 (later renamed Global Founders
Capital GmbH & Co. Beteiligungs KG Nr. 1). As of the date of this prospectus, on an aggregate basis, more than
20,000 employees work across our network of companies, which conducts business in 116 countries on
5 continents. Our most mature companies, which we refer to as proven winners, generated aggregate net revenues
of 757 million (unaudited sum total of their reported net revenues based on the applicable GAAP for the
relevant company, in each case taking the last fiscal year for which data was available) and aggregated net losses
of 442 million (unaudited sum total of their net losses based on applicable GAAP for the relevant company, in
each case taking the last financial year for which data was available and excluding extraordinary gains of Dafiti
resulting from the measurement of limited partnership interests). The Issuers aggregate direct and indirect stakes
in all of our companies, including proven winners, our growing companies that have already achieved a
significant size, which we refer to as emerging stars, our regional Internet groups and our strategic participations
and other investments, have a combined value of 2.6 billion
(1)
based on the respective latest third party
financing rounds, as described more fully elsewhere in this prospectus.
(1) Unaudited. Calculated based on accounting and controlling records of the Issuer.
62
Our business model involves routine launches of new companies. We typically own a direct or indirect
stake of 80% to 90% in our companies at the time of launch, with the remainder being set aside for management
equity participation. In subsequent consecutive financing rounds, we bring in external equity financing, which is
provided by our local strategic partners and other strategic and financial investors, including existing
shareholders of the Issuer. These investments are either made directly into the company or indirectly into an
intermediate holding company or regional Internet group. For more information on financing rounds, see
Corporate Structure, Financing Rounds and Cash Management. Historically, this has meant that the direct and
indirect stake of the Issuer in a company have decreased over time to less than 50% as the companies became
larger and more mature. Accordingly, the Issuer does not directly or indirectly control most of our companies.
The Issuer currently intends to maintain beneficial ownership stakes in most of our new companies of at least
50% going forward. This means that its investments in our companies will increase and that it will participate
more significantly in their development.
Our companies operate mainly in three focus sectors. Our e-commerce companies include retail
companies in the areas of fashion, general merchandise, home and living, office supplies and food and groceries.
Our marketplace companies seek to displace traditional supply chains by creating venues where buyers and
sellers can transact directly, and include real estate and car online classifieds, travel and transport, and food
delivery companies. Our third sector, financial technology, includes companies that focus on bringing together
borrowers and lenders in regions and segments that are underserved by traditional banks, particularly in the
consumer and small and medium-sized enterprise segments, and on facilitating payments. For more information,
see BusinessOur Companies.
Our parent holding company, Rocket Internet AG, holds interests in a number of operating subsidiaries,
regional Internet groups, intermediate holding companies and other companies. We distinguish between our four
regional Internet groups that are organized by geographic regions, including Africa, Asia Pacific, Latin America
and the Middle East, and intermediate holding companies. Depending on the level of control the Issuer exercises
over our companies, we classify them as fully consolidated subsidiaries, unconsolidated associates accounted for
at equity and companies accounted for at cost. For more information, see Key Factors Influencing Our Net
Assets, Financial Condition, and Results of OperationsConsolidated Financial StatementsEffect of
Consolidation Treatment on our Results of Operations.
The Issuer prepares unconsolidated financial statements that reflect its performance on a standalone
basis. Starting with the financial statements as of and for the year ended December 31, 2013, the Issuer has
prepared consolidated financial statements that show the net assets, financial position and results of operations of
the Group as a whole, which comprises the Issuer and its fully consolidated subsidiaries. In addition, certain of
our regional Internet groups and intermediate holding companies and/or their companies prepare consolidated
accounts. The manner in which the consolidated results of these holding companies are reflected in the Groups
consolidated financial statements depends on the consolidation method used to account for the relevant holding
company.
The Groups consolidated income statement reflects the results of operations of our fully consolidated
subsidiaries and the proportional share of net income or net loss and other changes in the Issuers share of the net
assets of our associates accounted for using the equity method, while revenues of the companies that the Issuer
does not directly or indirectly control and over which it does not have significant influence are generally not
reflected in the Groups income statement. Similarly, the Groups balance sheet reflects the assets and liabilities
of our fully consolidated subsidiaries and the relevant value of each of our associates accounted for using the
equity method, while the assets and liabilities of companies that the Issuer does not directly or indirectly control
and over which it does not have significant influence are not reflected on the Groups balance sheet. The Groups
consolidated financial statements as of and for the year ended December 31, 2013 show sales revenues of
73 million, a result from ordinary activities of 187 million and total assets of 877 million in 2013.
The direct or indirect ownership stakes of the Issuer in the proven winners, emerging stars, intermediate
holding companies, regional Internet groups and concepts shown in all parts of this prospectus outside of the
sections Managements Discussion and Analysis of Financial Condition and Results of Operation and
Financial Information may differ from those used for accounting purposes and shown in the sections
Managements Discussion and Analysis of Financial Condition and Results of Operation and Financial
Information mainly due to cut-off differences and differences between notarized transactions used as basis for
inclusion in LPV calculations and transaction closing which is the prerequisite for accounting purposes. Also,
under German GAAP, shares held by trust entities that are owned by the Issuer but held for future distribution to
former or current managers, such as the Issuers remaining stake in Zalando, are considered as owned by the
Issuer to the extent that those shares have not yet been allocated to a specific manager. In addition, under German
GAAP, treasury shares are excluded from the total share count used to compute ownership stakes, i.e., increasing
the ownership stakes shown. This last point has, however, no impact on the value of the ownership stake.
63
Key Factors Influencing Our Net Assets, Financial Condition, and Results of Operations
Consolidated Financial Statements
Effect of Consolidation Treatment on our Results of Operations
The extent to which financial information relating to our companies is included in the consolidated
financial statements of the Issuer depends on the method by which we account for such companies and whether
the Issuer holds a direct or an indirect stake in the company. For more information on the structure of our
network, see Corporate Structure, Financing Rounds and Cash Management. There are three methods: full
consolidation method, equity method and cost method.
As of December 31, 2013, the Issuer had 114 subsidiaries that were fully consolidated in its financial
statements and 195 subsidiaries were not fully consolidated due to their minor importance. Further, as of
December 31, 2013, the Issuer held stakes in about 130 dormant companies and 29 legal entities were accounted
for at equity (June 30, 2014: 35 legal entities).
The applicable method is generally determined based on the Issuers influence over the company, most
importantly by the Issuers voting interest in the company.
Full Consolidation Method
Subsidiaries that the Issuer controls are accounted for under the full consolidation method. Whether or
not the Issuer controls a subsidiary depends on an evaluation of a number of factors, including, among others,
representation on its board of directors and the voting and other rights of other investors (minority shareholders)
including their participation in significant decisions made in the ordinary course of business (e.g., approval of the
annual operating budget), as well as the Issuers ownership level of the outstanding voting rights of the relevant
subsidiary. While we generally consolidate subsidiaries in which the Issuer directly or indirectly holds 50% or
more of the outstanding voting rights, certain of these companies are accounted for under the equity method in
accordance with Sec. 296 (1) Sentence 1 of the German Commercial Code (HGB) instead of being fully
consolidated in the Issuers financial statements.
The Groups consolidated subsidiaries tend to be our youngest and least mature companies, and often
have not generated significant net revenues (for more information, see Factors Affecting our Results of
OperationsLaunch and Development Cycles of Our Companies). Under the full consolidation method, all line
items from the consolidated subsidiarys financial statements, including net income, assets and liabilities and
cash flows, are included in the Groups consolidated financial statements. The line item Profit/loss attributable
to minority interests adjusts the Groups consolidated net income to reflect only the share of the earnings or
losses of a consolidated subsidiary attributable to the shareholders of the parent of the Group.
The subsidiaries accounted for under the full consolidation method of accounting as of December 31,
2013 and June 30, 2014 included, among others:
Ownership
(Direct and/or Indirect)
As of December 31,
2013
As of June 30,
2014
(unaudited)
Helpling
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a
(2)
70.9%
Global Fin Tech
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a
(2)
100%
Kanui
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.6% 44.0%
Tricae
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.7% 46.3%
Bonnyprints
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.5% 77.1%
(1) Helpling Group Holding S. r.l.
(2) Operations were launched in the first half of 2014, and they were not included in the Issuers consolidated financial statements as of
December 31, 2013.
(3) Global Fin Tech Holding S. r.l.
(4) Indirect equity investment through MKC Brillant Services GmbH, Jade 1159. GmbH and VRB GmbH & Co. B-195 KG.
(5) Indirect equity investment through MKC Brillant Services GmbH, Jade 1218. GmbH and VRB GmbH & Co. B-196 KG.
(6) Bonnyprints GmbH.
The results of certain of our regional Internet groups are fully consolidated (for more information, see
Accounting for Regional Internet Groups and Intermediate Holding Companies).
64
Equity Method
Companies that the Issuer does not directly or indirectly control but over which it has significant
influence are referred to as associated companies or associates. We generally account for our associated
companies under the equity method. Whether or not the Issuer exercises significant influence with respect to an
associated company depends on an evaluation of several factors including, among others, representation on its
board of directors and ownership level, which is generally 20% to 50% of the voting rights of the relevant
associated company, including voting rights attributable to the Issuers holdings in common, preferred and other
convertible instruments.
Under the equity method of accounting, neither the associated companys revenue nor any other
individual line item of the associated companys consolidated income statement is included in the corresponding
line items of the Groups consolidated income statement. Changes in the Groups share in the equity of the
associated company are, however, reflected in the line item Income/loss from associated companies in the
Groups consolidated income statement. These changes may be due to earnings or losses of the associated
company or due to other changes in the associated companys equity capital, for example, as a result of financing
rounds. On the Groups balance sheet, the Groups investments in associated companies accounted for at equity
are reported as Equity investments in associates. These investments are initially recorded at cost and are
subsequently adjusted to reflect the Groups share of equity of the associated companies.
Our associated companies accounted for under the equity method as of December 31, 2013 and June 30,
2014 included, among others:
Ownership
(Direct and/or Indirect)
As of December 31,
2013
As of June 30,
2014
(unaudited)
Bigfoot I
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.3% 25.2%
Bigfoot II
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.4% 34.1%
(2)
BigCommerce
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.5% 51.6%
PAYMILL
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.8% 49.6%
CupoNation
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.6% 50.6%
Home24
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.8% 46.8%
Hellofresh
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.0% 29.1%
Westwing
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.4% 30.3%
Wimdu
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.5% 52.5%
(1) For more information, see Accounting for Regional Internet Groups and Intermediate Holding Companies below.
(2) The difference to the 33.8% shown in other parts of this prospectus relate to 26 unallocated trust shares held by Bambino 53. VV UG
(haftungsbeschrnkt), which have for accounting purposes been allocated to the Issuer, and the elimination of 757 treasury shares.
(3) Paymill Holding GmbH.
(4) CupoNation Group GmbH.
(5) Home24 GmbH.
(6) HelloFresh GmbH.
(7) Westwing Group GmbH.
(8) Wimdu GmbH.
Cost Method
Companies not accounted for under either the full consolidation or the equity method of accounting are
accounted for at cost. These companies in our structure tend to be either immaterial unconsolidated companies or
participations in which the Issuer directly or indirectly owns less than 20% interest of the outstanding voting
rights. Under the cost method, the Issuers share of the earnings or losses of these companies is not represented in
the Issuers consolidated financial statements and therefore affect the Groups consolidated results of operations
only if a dividend distribution is received from a company accounted for at cost, the fair value of such company
falls below the historical cost recorded on the balance sheet (or recovers to historical cost after a prior write-
down) or an investment is sold.
65
Among others, the following legal entities were accounted for under the cost method of accounting as of
December 31, 2013 and June 30, 2014:
Ownership
(Direct and/or Indirect)
As of December 31,
2013
As of June 30,
2014
(unaudited)
Zalando
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9% 0.9%
Care.com
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3% 3.3%
Wonga
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0% 1.0%
(1) Zalando SE (formerly Zalando AG). Prior to the Zalando Spin-Off (as defined below), Zalando was part of our network of companies.
The Issuer holds the shares in Zalando primarily to satisfy its obligations resulting from options granted to former employees. As of the
date of this prospectus, these shares have been lent to Morgan Stanley & Co. International plc to cover potential over-allotments in the
initial public offering of Zalando.
(2) Care.com, Inc.
(3) Wonga Group Limited.
Accounting for Regional Internet Groups and Intermediate Holding Companies
The Issuer holds stakes in companies indirectly through regional Internet groups and intermediate
holding companies. Our network includes four regional Internet groups in Africa, Asia Pacific, Latin America
and the Middle East, as well as a number of intermediate holding companies held directly by the Issuer, including
Bigfoot I, Bigfoot II and BigCommerce. Most of our regional Internet groups and intermediate holding
companies are accounted for using the equity method, while our regional Internet groups in Africa, Asia Pacific,
Latin America and Middle East are fully consolidated starting in 2013. The Middle East Internet Group was
deconsolidated in the first half of 2014. Bigfoot I and, starting in fiscal year 2014, most of our regional Internet
groups, prepare consolidated financial statements at their respective levels. Operating results of their direct
subsidiaries are generally reflected in such consolidated financial statements, if the subsidiaries are fully
consolidated. Bigfoot II and BigCommerce report on an unconsolidated basis only. Certain of the subsidiaries of
our regional Internet groups and intermediate holding companies act as direct and indirect holding companies for
other entities in our network of companies. The same consolidation principles as described above apply in
accounting for their direct and indirect subsidiaries. For more information on our regional Internet groups and
intermediate holding companies, see BusinessOur CompaniesRegional Internet Groups and Business
Our CompaniesIntermediate Holding Companies.
Bigfoot I holds stakes in Dafiti, Lamoda, Jabong, Namshi and FabFurnish. Bigfoot I fully consolidated
Dafiti (in 2012 and 2013) and FabFurnish (from 2013 onwards). Lamoda and Jabong were fully consolidated by
Bigfoot I until September 2013 and November 2013, respectively. Since then, these companies have been
accounted for at equity in Bigfoot Is consolidated financial statements. Namshi (MEEH), which holds the
interest in MENA Style Fashion KG (haftungsbeschrnkt) & Co. KG (holding company of Namshis operating
entity), is held by Bigfoot I and accounted for at equity. MEEH does not prepare consolidated financial
statements and, accordingly, neither fully consolidates MENA Style Fashion KG (haftungsbeschrnkt) & Co. KG
nor reflects the share it holds in MENA Style Fashion KG (haftungsbeschrnkt) & Co. KG at equity. Its interest
in MENA Style Fashion KG (haftungsbeschrnkt) & Co. KG is included in MEEHs unconsolidated financial
statements at cost. Financing rounds on the level of fully consolidated subsidiaries do not have an impact on
Bigfoot Is results, whereas financing rounds at the level of companies accounted for at equity do impact Bigfoot
Is results.
As Bigfoot II and BigCommerce do not prepare consolidated financial statements, their subsidiaries and
participations are accounted for at cost. Accordingly, the operating results of their companies, which include
Zalora, Linio, Lazada and Namshi, do not have an impact on their respective unconsolidated financial statements
or, in turn, on the Issuers consolidated financial statements, unless a dividend distribution is made, the fair value
of the company falls below the historical cost recorded on the balance sheet of the intermediate holding company
or an investment is disposed of by the intermediate holding company.
66
Our regional Internet groups and intermediate holding companies as of December 31, 2013 and June 30,
2014 included, among others:
Ownership
(Direct and/or Indirect)
As of December 31,
2013
As of June 30,
2014
(unaudited)
Regional Internet Groups:
Africa
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.0% 80.0%
Asia Pacific
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0%
Latin America
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.0% 65.0%
Middle East
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 50.0%
Intermediate Holding Companies:
Bigfoot I
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.3% 25.2%
Bigfoot II
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.4% 34.1%
(7)
BigCommerce
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53.5% 51.6%
(1) Africa Internet Holding GmbH. The stake decreased to 33.3% due to a capital increase in July 2014.
(2) Asia Internet Holding S. r.l.
(3) MKC Brillant Services GmbH
(4) Middle East Internet Holding S. r.l.; deconsolidated in first half of 2014.
(5) Bigfoot GmbH.
(6) BGN Brillant Services GmbH.
(7) The difference to the 33.8% shown in other parts of this prospectus relate to 26 unallocated trust shares held by Bambino 53. VV UG
(haftungsbeschrnkt), which have for accounting purposes been allocated to the Issuer, and the elimination of 757 treasury shares.
(8) TIN Brillant Services GmbH.
Unconsolidated Financial Statements
The Issuers unconsolidated financial statements present the results of operations of the Issuer on a
standalone basis. Due to the structure of the Group, the Issuer mainly serves as a holding company that owns
interests in operating and holding companies with only limited operations carried out at the level of the Issuer
itself. Therefore, the Issuers results of operations on a standalone basis are not indicative of our results of
operations or the consolidated results of operations of the Group. In addition, all transactions between the Issuer
and its fully consolidated subsidiaries, which are eliminated in the Groups consolidated financial statements, are
shown in the Issuers standalone financial statements in full. The main asset on the Issuers unconsolidated
balance sheet is Financial assets, which reflects the Issuers direct holdings in its companies.
Factors Affecting our Results of Operations
Launch and Development Cycles of Our Companies
One of the key elements of our business is the founding of, and investing in, new businesses, their
launch and their growth. We typically finance launches of new companies with our own funds and initiate
financing rounds for our companies, typically with third-party equity contributions, at a later stage in their
development cycles. Our total investments in equity capital of a new company have generally been in the range
of 0.5 million to 2.0 million. Our new businesses typically do not generate revenues for the first three to
four months of their operations. In the past three years, we launched 57 new businesses that have become
operationally active.
The Issuer typically directly or indirectly controls our new companies at the time of their launch and
would, as a result, fully consolidate these companies in the Groups consolidated financial statements. As the
companies grow, the Issuers interest is typically diluted as a result of financing rounds, at which all funding is
provided by external investors or by external investors and by us, provided that our financing share is below our
pro rata ownership share, and our accounting treatment of them may change. Accordingly, our largest companies
are typically not fully consolidated. The Groups consolidated results of operations include the results of
operations of our youngest, least mature and typically smallest companies. As a result, the Groups consolidated
results of operations may not be representative of the Groups total financial performance and may experience
significant fluctuations due to the performance of these companies, which is typically less predictable than the
performance of our larger, more mature companies. For additional information regarding indirectly held
companies, see Consolidated Financial StatementsEffect of Consolidation Treatment on our Results of
OperationsAccounting for Regional Internet Groups and Intermediate Holding Companies.
67
Financing Rounds
The Issuer and our companies, after having been originally incubated and sometimes seed funded by us,
have typically relied on equity capital financing rounds in order to fund their ongoing operations. These
investments are mostly made into a company, but also indirectly into an intermediate holding company or
regional Internet company. In total, the Issuer invested about 0.1 billion in its current network of companies and
we have raised more than 2.8 billion in equity capital or capital commitments for our current network of
companies from a large number of investors. These investments compare to a total value of the companies in our
current network of companies of 6.7 billion
(1)
. For uncertainties around this valuation, see Risk FactorsRisks
Related to the Issuer and our CompaniesWe disclose in this prospectus valuations derived from investments in
the Issuer and our companies. These valuations may not reflect the past, present or future fair values of the
Issuer or our companies, and potential investors in this offering should not place undue reliance on these
valuations. In addition, the Issuer itself has attracted significant equity financing from our long-term partners
Kinnevik and Access Industries, and most recently, PLDT and United Internet. During the financing rounds at
the level of our companies, the Issuers direct and indirect ownership interests in our companies are often diluted,
which may result in a change in the accounting method for the company in the Groups consolidated financial
statements. For more information, see Consolidated Financial StatementsEffect of Consolidation Treatment
on our Results of Operations and Factors Affecting the Comparability of Financial InformationEffect of
Consolidation on the Presentation of Financial Statements.
Investments made directly in the Issuers equity capital have no effect on the Groups consolidated net
income. The effect of financing rounds below the level of the Issuer on the Groups consolidated net income
depends on the method used to account for the relevant company. Investments in subsidiaries accounted for using
the full consolidation method impact the Groups balance sheet, but do not have an effect on the Groups
consolidated net income. For associated companies accounted for using the equity method, if the effect of
dilution on the Issuers interest is less than the overall increase in equity in the relevant company, the Groups
consolidated net income will show a gain in the line item Income from associated companies in the Groups
consolidated income statement, reflecting the increase in the Groups share of the equity of the associated
company. For example, in 2013 the entire volume of financing rounds in Bigfoot I, Bigfoot II and BigCommerce
amounted to 220.5 million, 107.1 million and 91.8 million, respectively. The volume of these financing
rounds multiplied by the Issuers stakes in Bigfoot I, Bigfoot II and BigCommerce corresponds to 51.5 million,
29.6 million and 37.1 million, respectively, being included in income/loss from associated companies in the
Group consolidated financial statements, reflecting the relevant proportions attributable to the Group and dilution
effects. Results of operations of companies accounted for using the cost method (i.e., unconsolidated companies)
are not reflected in the Groups consolidated financial statements because the Groups interests in these
companies are valued at historical cost on its consolidated balance sheet.
In the Issuers unconsolidated financial statements, investments made in the Issuers equity capital are
fully reflected, while investments made by third parties in any of our other companies are not reflected in the
Issuers unconsolidated financial statements because the Issuers interests in unconsolidated companies are
valued at historical cost on its unconsolidated balance sheet.
Dividend Payments by Our Companies and Intermediate Holding Companies
Although nearly all of our companies are still loss making and do not pay dividends on a regular basis,
our companies and intermediate holding companies have occasionally made significant dividend distributions.
For example, in 2012, two of our legal entities made upstream dividend distributions in a total amount of
218.1 million. These distributions primarily concerned proceeds from the sale of shares in Groupon, which the
Issuer had acquired in 2010 in exchange for its interest in Citydeal. Citydeal was founded in 2009 by the Issuer.
In the Groups consolidated financial statements, upstream dividend payments received from fully
consolidated subsidiaries or from associated companies accounted for at equity have no effect on net income,
while dividend payments by companies accounted for at cost are recorded in the line item Income/loss from
participations in the Groups consolidated income statement.
In the Issuers unconsolidated financial statements, these distributions resulted in a sharp increase in the
line item Income from participations for fiscal year 2012. Income from participations on an unconsolidated
basis amounted to 39.6 million in 2011, 218.1 million in 2012 and 0.3 million in 2013.
Disposals of Interests in Our Companies
Historically, we opportunistically sold positions in our companies once they had reached an appropriate
stage in their development cycle. The size and number of these sales transactions varied significantly from one
(1) Unaudited. Calculated on accounting and controlling records of the Issuer.
68
reporting period to another depending on general market conditions and the level of interest of potential strategic
and financial investors. The largest disposals of interests in our companies in the last three years included sales of
shares in Zalando, Groupon and the Zalando Spin-Off (as defined below) in the second half of 2013.
On July 8, 2013, the Issuer made a constructive contribution (verdeckte Einlage) of its 34,440 shares in
Zalando to a wholly-owned subsidiary of the Issuer, Rocket Beteiligung. Immediately upon receipt of the shares
in Zalando on July 8, 2013, Rocket Beteiligung sold and transferred these shares in Zalando to GFG and Emesco
in accordance with their proportional shareholdings in the Issuer. Simultaneously, GFG and Emesco sold and
transferred initially 43,050 shares in the Issuer to Rocket Beteiligung. This consideration was subsequently
reduced to 38,597 shares in the Issuer due to a purchase price adjustment mechanism. The mutual purchase price
claims arising out of both transactions were set off against each other (the entire foregoing transaction is
hereinafter referred to as the Zalando Spin-Off). On August 19, 2014, Rocket Beteiligung was merged into the
Issuer, which thereby acquired 38,597 treasury shares that were subsequently cancelled.
In the Groups consolidated financial statements, the effect of disposals of interests in our companies on
the Groups consolidated net income depends on the method used to account for the relevant company, which
determines together with the magnitude of the disposal whether the relevant company will be deconsolidated or
excluded from the list of entities accounted for using the equity or the cost method, as the case may be. The
Group reports sales proceeds from disposals of its interests in fully consolidated subsidiaries as Other operating
income in its consolidated income statement and of its interest in associated companies accounted for on the
basis of the equity method as Income from associated companies in its consolidated income statements. For
example, the sale of shares in Zalando resulted in Other operating income of 63.8 million in 2013, nearly all
of the Groups Other operating income in that year.
In the Issuers unconsolidated financial statements, sales of Zalando shares in 2012 and 2013, as well as
the Zalando Spin-Off in 2013 resulted in a significant increase in Other operating income in 2012 and 2013 as
compared to 2011. Other operating income on an unconsolidated basis amounted to 14.7 million in 2011,
176.8 million in 2012 and 187.5 million in 2013.
Tax Treatment
The consolidated and unconsolidated net income is influenced by our tax treatment in Germany. The
Issuers respective taxable income is generally subject to corporate income tax (plus the solidarity surcharge)
with a total tax rate of 15.825%, and trade tax at a rate currently amounting to up to 17%.
Dividends the Issuer receives from domestic and foreign affiliates, however, are for the most part 95%
exempted from corporate income tax and trade tax. Therefore, the Issuers Income from associated companies
is taxed at a lower rate than its other corporate income.
Purchase of Services by Companies
On an unconsolidated basis, the Issuers Sales revenues on its unconsolidated income statement
consist almost entirely of revenues the Issuer receives for providing IT, marketing and certain other services, as
well as central services, to our companies. The Issuer generally targets billing our companies at a price that
compensates for its cost of providing these services, and it generally does not generate profit through such
activities (for more information, see Key Income Statement ItemsSales Revenues). Because the Issuer does
not generally generate a profit from providing these services, nearly all of its Sales revenues on its
unconsolidated income statement are offset by the costs of providing these services.
Factors Affecting the Comparability of Financial Information
Effect of Consolidation on Presentation of Consolidated Financial Statements
The presentation of the Issuers consolidated financial statements may differ from period to period
primarily due to whether or not the full consolidation method, equity method or cost method was applied to our
companies. Changes in the accounting method are often due to fluctuations in ownership interest resulting from
financing rounds or other liquidity events (for more information, see Factors Affecting our Results of
OperationsFinancing Rounds). See also Risk FactorsRisks Related to the Issuer and Our
CompaniesPotential investors in this offering have to make an investment decision based on limited historical
information that does not reflect the operating performance of our unconsolidated companies.
69
Key Income Statement Items
Sales Revenues
On a consolidated basis, Sales revenues consist of revenues that the Issuer and its fully consolidated
subsidiaries generate by engaging in transactions with third parties and associates. The Group generates three
major categories of sales revenues: (i) revenues generated by e-commerce, (ii) revenues from marketplaces and
(iii) revenues generated by rendering other services.
On an unconsolidated basis, Sales revenues consists of revenues the Issuer receives for providing IT,
marketing and certain other services, as well as central services to its subsidiaries and associates. Most of these
services are provided by the Issuers own employees, while a smaller portion is rendered by independent
contractors or purchased from other third-party providers and resold to our companies. Sales revenues also
include license fees that are paid to the Issuer by its subsidiaries for use of its platform technology. The Issuer
generally targets billing our companies at a price that compensates its cost of providing these services and
generally does not generate profit through such activities.
Increase/Decrease in the Work in Process Inventory
Increase/decrease in the work in process inventory consists of the difference in the value of partially
finished goods and services between the beginning and the end of the relevant reporting period. This line item is
reported due to our use of the total cost method format for our income statements, which means that costs
included in the income statement relate to the entire production of goods and services in the relevant period,
regardless of whether the work has been completed and the goods and services have been sold or not.
Other Operating Income
On a consolidated basis, Other operating income primarily includes gains from disposals of the
Issuers direct and indirect interests in companies accounted for at cost and other financial assets, income from
written-off receivables and reversal of provisions. A smaller portion of Other operating income also reflects
currency translation effects, which are generally immaterial, as most of the Groups revenues and expenses are
denominated in Euro.
On an unconsolidated basis, the Issuers Other operating income includes all disposals of the Issuers
interests in our companies in the relevant reporting period.
Cost of Materials
On a consolidated basis, Cost of materials mainly includes cost of purchased merchandise, as well as
cost of related purchased services (e.g., outbound shipping, payment and logistics services). On an
unconsolidated basis, cost of raw materials and supplies mainly includes purchases of hardware and software
developed by third parties. Cost of purchased services represents costs of services provided to us by independent
contractors and other third parties, as opposed to our own employees. These services are partially consumed by
us and partially resold to our subsidiaries and associates.
Personnel Expenses
Personnel expenses include wages and salaries, including share-based compensation components of
our employees, as well as social security and other pension costs. Social security and other pension costs
represent retirement benefits and other statutory pension and social security payments. Personnel expenses are
typically one of the two most significant cost items on our income statements.
Amortization and Depreciation
On a consolidated basis, Amortization and depreciation includes regular amortization and
depreciation. Depreciation mainly relates to write-downs of hardware, office and IT equipment. Amortization of
intangible assets refers to concessions, intellectual property rights and similar rights and assets, as well as
licenses in such rights and assets.
In addition to regular amortization and depreciation, Amortization and depreciation reported on an
unconsolidated basis also includes amortization and depreciation of current assets in excess of what is usual in
the corporation, which represents amortization and depreciation of certain assets that are accumulated over the
lifetime of a particular project and is recognized in full at the time of its completion.
70
Other Operating Expenses
Other operating expenses include effects from call option obligations, derecognition and value
adjustments of receivables, losses from the disposal of fixed assets and further off-period expenses, as well as
rental, office and IT expenses. A smaller portion of Other operating expenses also reflects currency translation
effects. These effects on net income are generally immaterial, as most of the Groups revenues and expenses are
denominated in Euro.
Income from Participations and Income from Associated Companies
On a consolidated basis, the Group reports dividends received from our companies accounted for at cost
as Income from participations, while dividend distributions received from associated companies accounted for
using the equity method reduce the carrying amount of the balance sheet line item Equity investments in
associates. Income from associated companies includes income recognized as a result of changes in equity of
our associates accounted for using the equity method, reflecting both new financing rounds and net income/loss
of the relevant company (for more information see Factors Affecting our Results of OperationsFinancing
Rounds). Income from associated companies also includes gains or losses from disposals of the Issuers direct
and indirect interests in associated companies, as well as impairment losses (write-downs) relating to associates.
On an unconsolidated basis, the Issuer reports all dividend payments and other distributions on its
interests in affiliated companies, participations and securities held as fixed assets as Income from
participations.
Interest and Similar Income and Expenses
Other interest and similar income is mainly interest paid on loans granted by members of the Group to
our unconsolidated companies. Group entities generally extend credit to companies fully controlled by the Group
at an interest rate of approximately 0.5% per annum, while most loans granted by the Issuer and its consolidated
subsidiaries to other affiliated companies bear interest in the range of 4.5% to 5.0% per annum. Other interest
and similar income also includes interest on bank balances.
Our business is primarily equity-financed and therefore the amounts of Interest and similar expenses
incurred in each of the periods under discussion are immaterial. Interest and similar expenses reported in our
income statements are mainly interest paid on bank overdrafts and loans granted by our companies to the Issuer
or other members of the Group.
Write-downs on Financial Assets
Financial assets recorded on our balance sheet are mainly the Issuers direct and indirect interests in
affiliated companies that are not designated for trading. Financial assets are written down when impairments of
these assets have occurred and such impairments are of a permanent nature, generally due to the discontinuation
of a particular business. On a consolidated basis, the Group reports impairment losses (write-downs) relating to
associates as Income from associated companies.
Income and Other Taxes
The Issuer receives income from our companies primarily in the form of dividend payments, other
distributions and sales proceeds. Ninety-five percent of this income is generally exempted from corporate income
and trade tax (for more information, see Factors Affecting our Results of OperationsTax Treatment). Our
Sales revenue and Other operating income are subject to corporate income and trade tax.
On a consolidated basis, in addition to income taxes, the Group also reports Other taxes that mainly
relate to the Brazilian taxes for imported goods and services.
71
Results of Operations (consolidated)
The following table provides an overview of the Groups consolidated results of operations for the six-
month periods ended June 30, 2014 and 2013 and for the year ended December 31, 2013. The Group has not
prepared consolidated financial statements for any other prior year period. See also Risk FactorsRisks Related
to the Issuer and Our CompaniesPotential investors in this offering have to make an investment decision based
on limited historical information that does not reflect the operating performance of our unconsolidated
companies:
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.5 33.0 47.0
Increase / (decrease) in the work in process inventory . . . . . . . . . . . . . (0.5) 1.3 0.7
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65.9 0.9 18.2
137.9 35.2 65.8
Cost of materials
Cost of raw materials, consumables and supplies and of
purchased merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27.7) (12.1) (16.7)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.6) (3.2) (4.2)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.5) (16.0) (23.5)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . (7.0) (3.2) (4.5)
Amortization / depreciation of intangible assets and of property,
plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.1) (0.5) (0.8)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.8) (18.2) (40.3)
(150.6) (53.3) (89.9)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 0.1
Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199.9 41.0 13.2
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.2 0.2
Write-downs of financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) 0.0 (0.0)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (0.2) (0.7)
199.7 40.9 12.7
Result from ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187.0 22.8 (11.3)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12.3) (0.2) (1.5)
Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (0.3) (0.4)
(12.8) (0.5) (1.9)
Consolidated net income / net loss for the period . . . . . . . . . . . . . . . 174.2 22.3 (13.3)
Profit / (loss) carried forward from previous period . . . . . . . . . . . . . . . . (23.4) (23.4) 84.4
Advance dividend pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.6) (323.9)
Loss attributable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 5.5 13.9
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84.4 4.4 (238.8)
Sales Revenues
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Sales revenues increased by 43% from 33.0 million in the six months ended June 30, 2013 to
47.0 million in the six months ended June 30, 2014. This increase was attributable to an increase of sales
revenues from e-commerce businesses and to an increase in sales revenues from consulting services, nearly all of
which related to companies in our network of companies.
Year Ended December 31, 2013 (consolidated)
Groups sales revenues in 2013 amounted to 72.5 million. Nearly two-thirds of these sales revenues
were generated by the Groups e-commerce activities mainly attributable to our companies Kanui, Tricae and
Bonnyprints and our activities in Latin America. Other services accounted for 36% of the sales revenues in 2013.
The contribution of marketplace activities to sales revenues was not significant in 2013.
72
Other Operating Income
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Other operating income increased from 0.9 million in the six months ended June 30, 2013 to
18.2 million in the six months ended June 30, 2014. In the six months ended June 30, 2014, other operating
income was mainly attributable to the deconsolidation of subsidiaries (15.7 million), gains on disposal of fixed
assets (0.8 million), reversal of provisions (0.8 million) and rental income from sublease of the office space to
associates (0.8 million). In the six months ended June 30, 2013, other operating income was mainly attributable
to the sublease of office space to associates.
Year Ended December 31, 2013 (consolidated)
Other operating income amounted to 65.9 million, whereof 63.8 million were attributable to the sale
of shares in Zalando in the second half of 2013. The effects of the Zalando Spin-Off are recorded in Income
from associated companies.
Cost of Materials
The following table shows a breakdown of the Groups cost of materials on a consolidated basis for the
periods indicated:
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Cost of raw materials, consumables and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27.7) (12.1) (16.7)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.6) (3.2) (4.2)
Cost of materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36.3) (15.4) (20.9)
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
As a result of the increase in sales volumes, the cost of materials increased by 36% from 15.4 million
in the six months ended June 30, 2013 to 20.9 million in the six months ended June 30, 2014. Cost of materials
mainly included cost of raw materials, consumables and supplies and of purchased merchandise of 16.7 million
in the six months ended June 30, 2014, an increase of 38% when compared to the six months ended June 30,
2013, in which the cost of raw materials, consumables and supplies and of purchased merchandise was
12.1 million. Costs of purchased services for shipping, freight/logistics and payment services costs increased by
30% from 3.2 million in the six months ended June 30, 2013 to 4.2 million in the six months ended June 30,
2014.
Year Ended December 31, 2013 (consolidated)
Cost of materials amounted to 36.3 million in 2013, of which 27.7 million were attributable to cost of
raw materials, consumables and supplies of purchased merchandise and 8.6 million to cost of purchased
services, primarily outbound shipping, payment and logistic expenses.
Personnel expenses
The following table shows a breakdown of the Groups personnel expenses on a consolidated basis for
the periods indicated:
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44.5) (16.0) (23.5)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.0) (3.2) (4.5)
Personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51.4) (19.3) (27.9)
73
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Personnel expenses increased by 45% from 19.3 million in the six months ended June 30, 2013 to
27.9 million in the six months ended June 30, 2014. Personnel expenses represented a major expense item for
the Group in both periods and included the current remuneration as well as expenses arising from share-based
remuneration (subscription rights to employees). On average, the headcount in the fully consolidated companies
increased stronger than personnel expenses by 67% from an average of 1,137 employees for the six months
ended June 30, 2013 to an average of 1,902 employees for the six months ended June 30, 2014.
Year Ended December 31, 2013 (consolidated)
Personnel expenses amounted to 51.4 million in 2013 and related predominantly to wages and salaries.
Rocket Internet AG and its fully consolidated subsidiaries had on average 1,282 employees in 2013, out of which
985 were located outside of Germany. Out of 7.0 million recorded as social security and other pension costs,
1.1 million was attributable to retirement benefits in 2013.
Other Operating Expenses
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Other operating expenses included primarily advertising and marketing costs (six months ended
June 30, 2014: 14.1 million; six months ended June 30, 2013: 6.1 million), rental, office and IT costs (six
months ended June 30, 2014: 6.3 million; six months ended June 30, 2013: 4.6 million) external services/
freelancers (six months ended June 30, 2014: 7.2 million; six months ended June 30, 2013: 2.0 million) and
legal and consultancy fees (six months ended June 30, 2014: 6.4 million; six months ended June 30, 2013: 1.1
million). The increase in advertising and marketing costs results from the Groups efforts to grow market shares
and to increase brand awareness. Online marketing activities were particularly aimed at the generation of traffic
and included traditional search engine marketing, search engine optimization and affiliate and display marketing.
Year Ended December 31, 2013 (consolidated)
Other operating expenses amounted to 61.8 million in 2013 and included primarily marketing expenses
of 17.1 million, rental, office and IT expenses of 11.0 million and expenses of 11.4 million in connection with
call option obligations in respect of several of our companies, including shares of Zalando that the Issuer has
retained. In addition, other operating expenses in 2013 included currency translation effects of 0.2 million.
Income from Associated Companies
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Income from associated companies decreased by 68% from 41.0 million in the six months ended
June 30, 2013 to 13.2 million in the six months ended June 30, 2014. As financing rounds have a significant
impact on income from associated companies, income from associated companies is driven by one-off effects
related to such financing rounds. Accordingly, the companies that primarily drive income from associated
companies typically change from one period to the other. Income from associated companies in the six months
ended June 30, 2014 included income attributable to Middle East Internet Group of 19.4 million and to Azmalo
S. r.l. of 6.2 million, which were only partially offset by losses attributable to Africa eCommerce Holding
GmbH of 24.3 million. In the six months ended June 30, 2013, income from associated companies mainly
related to income attributable to BigCommerce of 37.0 million and to Bigfoot II of 31.7 million, which were
only partially offset by losses attributable to Zalando of 28.1 million.
Year Ended December 31, 2013 (consolidated)
In 2013, income from associated companies amounted to 199.9 million, whereof 87.5 million was
attributable to the Zalando Spin-Off. Bigfoot I contributed 42.1 million to income from associated companies
mainly due to the effects of financing rounds at the level of Bigfoot I, Lamoda and Jabong, which were only
partially offset by net losses incurred by Lamoda and Jabong. BigCommerce and Bigfoot II contributed
37.1 million and 30.7 million, respectively, to income from associated companies in 2013.
Taxes
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Income taxes increased from 0.2 million in the six months ended June 30, 2013 to 1.5 million in the
six months ended June 30, 2014.
74
Year Ended December 31, 2013 (consolidated)
In 2013, income taxes amounted to 12.3 million and were mainly attributable to the Groups regular
operational activities in the period under discussion and included 0.3 million which were recorded to reflect
changes in deferred tax.
Consolidated Net Income for the Period
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Consolidated net loss / net income for the period deteriorated by 35.6 million from a net income of
22.3 million in the six months ended June 30, 2013 to a net loss of 13.3 million in the six months ended
June 30, 2014. This deterioration was mainly driven by a decrease in income from associated companies and
increases in other operating expenses and personnel expenses.
Year Ended December 31, 2013 (consolidated)
Consolidated net income for the year amounted to 174.2 million, mainly due to the Zalando Spin-Off
and effects of financing rounds on income from associated companies.
Results of Operations (unconsolidated)
The following table provides an overview of the Issuers results of operations on an unconsolidated
basis for the years ended December 31, 2011, 2012 and 2013:
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 24.3 26.0
Increase/(decrease) in the work in process inventory . . . . . . . . . . . . . . . . . . . . . . 0.1 2.4 (0.5)
Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.7 176.8 187.5
Cost of materials
Cost of raw materials and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.3) (0.1) (0.8)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (10.3) (7.2)
(0.4) (10.4) (8.0)
Personnel expenses
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6) (14.1) (22.9)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (1.9) (2.1)
(4.3) (16.0) (25.0)
Amortization/depreciation
of intangible assets and of property, plant and equipment . . . . . . . . . . . (0.1) (0.4) (0.4)
of current assets in excess of what is usual in the corporation . . . . . . . (0.9)
(0.1) (0.4) (1.3)
Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.9) (11.3) (17.4)
Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.6 218.1 0.3
Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.2 0.4
Write-downs on financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.7) (3.1) (3.1)
Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.0) (0.0)
Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.2 380.6 158.9
Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5) (2.5) (11.7)
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 378.1 147.1
Profit carried forward from previous year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.2
Withdrawals from capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4
Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (470.8) (80.6)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 66.6
75
Sales Revenues
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Sales revenues increased by 7%, from 24.3 million in 2012 to 26.0 million in 2013. This increase was
primarily attributable to an increase in the range of services the Issuer provides to its subsidiaries and network of
companies, including the creation of a corporate center.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Sales revenues increased more than three times from 6.7 million in 2011 to 24.3 million in 2012. This
increase was in line with general growth of the Issuers business and the increase in services provided by the
Issuer to its subsidiaries and network of companies, including both the range of services and the amount of time
spent by its employees and third parties on providing such services.
Other Operating Income
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Other operating income increased by 6%, from 176.8 million in 2012 to 187.5 million in 2013 and
related in both years primarily to the Zalando Spin-Off and further sales of shares in Zalando.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Other operating income increased more than ten times from 14.7 million in 2011 to 176.8 million in
2012, due to a sharp increase in disposal activities in the later period. The Issuers disposals in fiscal year 2011
included the sale of shares in Visual Meta GmbH, while the major disposal in 2012 was the sale of a part of
shares in Zalando.
Cost of Materials
The following table shows a breakdown of the Issuers cost of materials on an unconsolidated basis for
the years indicated:
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Cost of raw materials and supplies and of purchased merchandise . . . . . . . (0.3) (0.1) (0.8)
Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (10.3) (7.2)
Cost of materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) (10.4) (8.0)
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Cost of materials decreased by 23%, from 10.4 million in 2012 to 8.0 million in 2013, due to a
decrease in cost of purchased services that was partially offset by an increase in cost of raw materials and
supplies and of purchased merchandise.
Cost of purchased services decreased by 30%, from 10.3 million in 2012 to 7.2 million in 2013,
mainly due to the in-sourcing of certain functions that were previously purchased from independent contractors
and other third-party providers.
Cost of raw materials and supplies and of purchased merchandise increased eight times, from
0.1 million in 2012 to 0.8 million in 2013, primarily reflecting server and software costs, e.g., payments for
IBM-Unica licenses of 0.6 million in 2013 and Amazon costs.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Cost of materials increased more than twentyfold, from 0.4 million in 2011 to 10.4 million in 2012,
due to a sharp increase in cost of purchased services that was partially offset by a decrease in cost of raw
materials and supplies and of purchased merchandise.
Cost of purchased services increased from 0.1 million in 2011 to 10.3 million in 2012, mainly as a
result of the increased amount of services purchased from independent contractors for resales to subsidiaries of
the Issuer.
76
Cost of raw materials and supplies and of purchased merchandise decreased threefold, from 0.3 million
in 2011 to 0.1 million in 2012.
Personnel Expenses
The following table shows a breakdown of the Issuers personnel expenses on an unconsolidated basis
for the years indicated:
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.6) (14.1) (22.9)
Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.7) (1.9) (2.1)
Personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.3) (16.0) (25.0)
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Personnel expenses, which consist of wages and salaries and social security and other pension costs,
increased by 56%, from 16.0 million in 2012 to 25.0 million in 2013, primarily due to a 62% increase in wages
and salaries from 14.1 million in 2012 to 22.9 million in 2013. This increase was mainly attributable to a
strong increase in costs associated with stock options, which increased from 3.1 million to 11.3 million over
the same period. Without the costs from stock options, the personnel expenses increased only by 6%, reflecting
the development of the personnel structure towards an increasing share of higher-paid specialists. The average
number of employees remained relatively stable and amounted to 238 in 2012 and 233 in 2013.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Personnel expenses more than tripled, from 4.3 million in 2011 to 16.0 million in 2012, driven by a
sharp increase in headcount attributable to general growth of our business. This increase drove up both wages
and salaries, which almost quadrupled, from 3.6 million in 2011 to 14.1 million in 2012, and social security
and other pension costs, which more than doubled, from 0.7 million to 1.9 million, over the same period.
Amortization and Depreciation
The following table shows a breakdown of the Issuers amortization and depreciation on an
unconsolidated basis for the years indicated:
Year ended
December 31,
2011 2012 2013
(audited)
(in million)
Amortization/depreciation of intangible assets and of property, plant
and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (0.4) (0.4)
Amortization/depreciation of current assets in excess of what is usual in
the corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.9)
Amortization/Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (0.4) (1.3)
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Amortization and depreciation increased more than threefold, from 0.4 million in 2012 to 1.3 million
in 2013, primarily due to amortization and depreciation of current assets in excess of what is usual in the
corporation recognized in the later period.
In 2013, amortization and depreciation of current assets in excess of what is usual in the corporation
amounted to 0.9 million and was attributable to write-offs of receivables from delivered services.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Amortization and depreciation increased fourfold, from 0.1 million in 2011 to 0.4 million in 2012.
This increase was fully attributable to amortization and depreciation of intangible assets and of property, plant
and equipment, and was in line with the build-up of non-financial assets on the Issuers balance sheet. The
Issuers property, plant and equipment increased more than four times, from 0.2 million as of December 31,
2011 to 0.9 million as of December 31, 2012, while its intangible assets more than doubled over the same
period.
77
Other Operating Expenses
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Other operating expenses increased by 54%, from 11.3 million in 2012 to 17.4 million in 2013,
primarily due to compensation costs for stock options held by freelancers and employees of companies in our
network of companies and fees paid in connection with the sale of the Issuers interest in Zalando in the second
half of 2013.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Other operating expenses increased almost fourfold, from 2.9 million in 2011 to 11.3 million in 2012,
due to a general increase in business activities, especially in the amount of services received from freelancers,
and an increase in disposal activities in the later period.
Income from Participations
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Income from participations decreased significantly, from 218.1 million in 2012 to 0.3 million in 2013.
In 2012, income from participations was positively affected by upstream dividend distributions made by our
intermediate holding companies, which primarily related to proceeds from the sale of our interests in Groupon.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Income from participations increased more than fivefold, from 39.6 million in 2011 to 218.1 million
in 2012, mainly as a result of upstream dividend distributions made by our intermediate holding companies in
2012, which primarily related to proceeds from the sale of our interests in Groupon. In 2011, income from
participations also included upstream dividends attributable to Groupon.
Other Interest and Similar Income and Expenses
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Other interest and similar income and expenses doubled from 0.2 million in 2012 to 0.4 million in
2013. This increase was mainly attributable to generally higher cash balances held with banks in the later period
and consequently higher interest received thereon.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Other interest and similar income and expenses decreased by 50%, from 0.4 million in 2011 to
0.2 million in 2012. This decrease was mainly attributable to a decreased in loans granted to associated
companies in 2012 compared to the previous year.
Write-downs on Financial Assets
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Write-downs on financial assets remained stable and amounted to 3.1 million in 2012 and to
3.1 million in 2013. In both periods, write-downs of financial assets represented revaluations of investments.
For example, in 2012, they included revaluations of Toptarif GmbH, Jade 1238. GmbH or Jade 1223. GmbH,
while in 2013, revaluations of Beauty Trend Holding GmbH or Payleven Holding GmbH.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Write-downs on financial assets increased by 15%, from 2.7 million in 2011 to 3.1 million in 2012. In
2011, write-downs of financial assets included revaluations of Jade 1158. GmbH, while in 2012, they included
revaluations of Toptarif GmbH, Jade 1238. GmbH or Jade 1223. GmbH.
Taxes on Income
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Taxes on income increased more than four times, from 2.5 million in 2012 to 11.7 million in 2013,
despite a 58% decrease in profit on ordinary activities. The increase in taxes on income was mainly the result of a
tax accrual on the contribution of Zalando shares into Rocket Beteiligungs GmbH. This transaction was taxable
at market value, although shown at book value in the trade balance.
78
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Taxes on income increased five times, from 0.5 million in 2011 to 2.5 million in 2012. This increase
was primarily driven by a sharp increase in profit on ordinary operations, which increased from 51.2 million in
2011 to 380.6 million in 2012.
Net Income for the Year
Comparison of the Years Ended December 31, 2012 and December 31, 2013 (unconsolidated)
Net income for the year decreased by 61% from 378.1 million in 2012 to 147.1 million in 2013,
primarily due to a decrease in income from participations and an increase in personnel expenses.
Comparison of the Years Ended December 31, 2011 and December 31, 2012 (unconsolidated)
Net income for the year increased strongly from 50.7 million in 2011 to 378.1 million in 2012
primarily due to increases in income from participations and other operating income, due to sales of shares in
Groupon and Zalando.
Liquidity and Capital Resources (consolidated)
The Groups operating activities required liquidity in 2013, as the Group had a negative cash flow from
operating activities. Cash was provided to the Group from investing and financing activities. Disposals of fixed
financial assets added 194.8 million to the Groups cash in 2013. Disposals of stakes in companies are reflected
in the Groups cash flow from investing activities. The other main sources of liquidity are equity capital
financing rounds. At the level of the Issuer, equity financing rounds are a significant source of liquidity. In 2013,
an equity financing round with Access Industries provided the Issuer with 93.2 million in cash (included in
proceeds from the issuance of shares to the equity holders of the parent in the consolidated financial statements).
The cash inflows from equity financing rounds at the level of the Issuer are reflected in the cash flow from
financing activities. For more information on the liquidity status of our network, see Corporate Structure,
Financing Rounds and ManagementCash Requirements and Cash Management.
Consolidated Cash Flow Statement Data
Year ended
December 31,
Six months ended
June 30,
2013 2013 2014
(audited) (unaudited)
(in million) (in million)
Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38.9) (18.4) (55.5)
Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.5 (6.8) (62.2)
Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116.8 6.9 (229.7)
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250.4 (18.3) (347.4)
Changes in cash and cash equivalents due to exchange rates,
changes in the basis of consolidation and valuation . . . . . . . . . . . . . . . 0.0 0.0 (9.5)
Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . 187.0 187.0 437.4
Cash and cash equivalents at the end of period. . . . . . . . . . . . . . . . . . . . . . . 437.4 168.8 80.5
Comparison of the Six Months Ended June 30, 2013 and June 30, 2014 (consolidated)
Cash flow from Operating Activities
Cash flow from operating activities deteriorated from a cash outflow of 18.4 million in the six months
ended June 30, 2013 to a cash outflow of 55.5 million in the six months ended June 30, 2014 due to the losses
incurred by consolidated subsidiaries.
Cash flow from Investing Activities
Cash flow from investing activities deteriorated from a cash outflow of 6.8 million in the six months
ended June 30, 2013 to a cash outflow of 62.2 million in the six months ended June 30, 2014 mainly due to an
increase of net cash paid in connection with short-term management of cash investments from 3.1 million in the
six months ended June 30, 2013 to 50.9 million in the six months ended June 30, 2014. These payments related
to the investments in money market funds as well as to payments in conjunction with short-term loans to
associates and to non-consolidated subsidiaries. Payments for investments in non-current financial assets and the
79
acquisition of consolidated companies increased from 3.3 million in the six months ended June 30, 2013 to
10.9 million in the six months ended June 30, 2014. Furthermore, investments in tangible and intangible assets
increased from 0.7 million in the six months ended June 30, 2013 to 1.8 million in the six months ended
June 30, 2014. These instruments related, in particular, to the expansion of operating and business equipment and
software.
Cash flow from Financing Activities
Cash flow from financing activities deteriorated from a cash inflow of 6.9 million in the six months ended
June 30, 2013 to a cash outflow of 229.7 million in the six months ended June 30, 2014. Cash inflows from the
equity capital increases performed by minority shareholders increased from 1.2 million in the six months ended
June 30, 2013 to 55.9 million in the six months ended June 30, 2014. This increase in cash inflows was more
than offset by cash outflows to the shareholders of the Issuer related to advance dividends in the amount of
286.8 million in the six months ended June 30, 2014. For more information, see Dividend Policy; Results and
Dividends per Share; Use of ProfitsBigfoot I and Bigfoot II Dividend in Kind.
Discussion of the Year Ended December 31, 2013 (consolidated)
Cash flow from Operating Activities
In 2013, cash outflow from operating activities amounted to 38.9 million, despite a cash inflow from
the change in net working capital of 16.4 million. The cash outflow from operating activities was generally
attributable to industry typical start-up losses of our consolidated subsidiaries.
Cash flow from Investing Activities
In 2013, cash inflow from investing activities amounted to 172.5 million and included 194.8 million
of cash received from disposals of fixed financial assets, mainly relating to sales of shares in Zalando. Cash flow
from investing activities also included an outflow of 11.1 million representing investments in fixed financial
assets, in particular 7.7 million for Africa eCommerce Holding and 1.5 million for Westwing, and an outflow
of 20.6 million classified as short-term financial management of cash investments representing payments in
connection with short-term loans to associates and unconsolidated associates.
Cash flow from Financing Activities
In 2013, cash inflow from financing activities amounted to 116.8 million, and primarily reflected
159.9 million of proceeds from the issuance of shares to the equity holders of the Issuer, 16.7 million from
proceeds from minority interests, and an outflow of 80.6 million of advance dividend payments to the equity
holders of the Issuer.
Changes in Cash and Cash Equivalents due to Exchange Rates, Changes in the Basis of Consolidation and
Valuation
Those changes in cash and cash equivalents primarily relate to deconsolidation of subsidiaries during
the six months ended June 30, 2014.
Net Working Capital
We define net working capital as (i) current assets and prepaid expenses (excluding all short-term loans
to associates, non-consolidated subsidiaries and other parties classified as short-term financial management of
cash investments in the consolidated cash flow statement) minus (ii) current liabilities and deferred income
(excluding all short-term loans from associates, non-consolidated subsidiaries and other parties classified as
short-term financial management of cash investments in the consolidated cash flow statement).
80
The following table shows a breakdown of the Groups net working capital on a consolidated basis as of
the dates indicated:
As of
January 1,
As of
December 31,
As of
June 30,
2013 2014
(audited) (unaudited)
(in million) (in million)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 8.5 9.8
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 2.7 2.4
Receivables from associated companies, non-consolidated subsidiaries
and other receivables
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.7 10.1 34.0
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.5 0.7
Prepayments received on account of orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (0.5) (0.3)
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.8) (20.2) (20.4)
Payables towards associated companies, non-consolidated subsidiaries
and other payables
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.6) (8.7) (9.9)
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.1) (0.3) (0.2)
Net working capital
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.5 (7.9) 16.1
(1) Unaudited. Includes trade receivables from affiliated companies of 2.3 million (June 30, 2014), 1.3 million (December 31, 2013) and
1.4 million (January 1, 2013), trade receivables from associates 24.9 million (June 30, 2014), 3.6 million (December 31, 2013) and
14.6 million (January 1, 2013) and other assets of 6.8 million (June 30, 2014), 5.3 million (December 31, 2013) and 1.8 million
(January 1, 2013).
(2) Unaudited. Includes trade payables to associates of 2.4 million (June 30, 2014), 1.4 million (December 31, 2013) and 0.6 million
(January 1, 2013), trade payables to affiliated companies outside the scope of consolidation of 0.7 million (June 30, 2014), 0.6 million
(December 31, 2013) and 0.2 million (January 1, 2013) and other liabilities excluding loans of 6.8 million (June 30, 2014),
6.7 million (December 31, 2013) and 5.8 million (January 1, 2013). Other liabilities excluding loans have been taken from the Issuers
accounting records.
(3) Unaudited.
Comparison of December 31, 2013 and June 30, 2014 (consolidated)
Net working capital increased by 24.0 million, from negative 7.9 million as of December 31, 2013 to
positive 16.1 million as of June 30, 2014, mainly driven by an increase in receivables from associated
companies, non-consolidated subsidiaries and other receivables and a decrease in payables towards associated
companies, non-consolidated subsidiaries and other payables.
Comparison of January 1, 2013 and December 31, 2013 (consolidated)
Net working capital decreased by 16.4 million, from positive 8.5 million as of January 1, 2013 to
negative 7.9 million as of December 31, 2013, mainly driven by the reduction of receivables towards associates,
as well as increased trade payables, which was partially offset by higher inventories and higher trade receivables.
Liquidity and Capital Resources (unconsolidated)
The following table presents an overview of the development of the Companys cash flows in 2011 and
2012, based on the Issuers cash flow statements for the financial years 2011 and 2012.
Year ended December 31,
2011 2012
(audited)
(in million)
Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 237.5
Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (54.4) 157.0
Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.9 (301.3)
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11.7) 93.1
Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.8 8.0
Cash and cash equivalents at the end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 101.1
A comparison of the unconsolidated cash flows in 2012 with the consolidated cash flows in 2013 is not
meaningful and accordingly not presented in this prospectus. The Issuer prepared consolidated financial
statements for the first time for the year ended December 31, 2013. For the year ended December 31, 2012 and
prior periods, the Issuer was exempt from the duty to prepare consolidated financial statements due to size related
exemptions pursuant to Section 293 HGB.
81
Cash Flow from Operating Activities
Cash flow from operating activities increased from 1.7 million in 2011 to 237.5 million in 2012. This
increase was due to a significant increase in net income. Cash flow from operating activities profited in 2012
from net working capital management, as inventories, trade receivables and other assets decreased while trade
payables and other liabilities increased. In 2011, cash flow from operating activities was held back by net
working capital development, as inventories, trade receivables and other assets increased.
Cash Flow from Investing Activities
Cash flow from investing activities improved from a cash outflow of 54.4 million in 2011 to a cash
inflow of 157.0 million in 2012. This development was primarily due to a significant increase in cash received
from disposal of fixed financial assets. In addition, cash paid for investments in fixed financial assets decreased
and cash received in connection with short-term financial management of cash investments increased. These
developments were only partially offset by an increase in cash paid in connection with short-term financial
management of cash investments.
Cash Flow from Financing Activities
Cash flow from financing activities deteriorated from a cash inflow of 40.9 million in 2011 to a cash
outflow of 301.3 million in 2012. This change was primarily due to cash paid to shareholders, which served the
primary purpose of passing on profits from the sale of shares in Groupon, Inc. and Zalando, and repayments of
loans in 2012, which were only partially offset by higher cash received from equity contributions and cash
received from loans.
Investments
On its consolidated balance sheet, the Group classifies shareholdings in each of its unconsolidated
companies as one of the four categories depending on the level of control it exercises over the relevant company.
When the Group exercises full control over the subsidiary which is an immaterial member of the Group, the
relevant holding is recorded at cost as Shares in affiliated companies. When the Group has significant
influence over the business of a standalone company but does not control it, generally when the Group has
between 20% and 50% of the total voting power of the entity, respective holdings are recorded as Equity
investments in associates. In all other cases, the Group reports its shareholdings as Securities held as fixed
assets or as Other participations, depending on whether or not the relevant participation is structured and
documented as a security. We do not mark our investments to market on a regular basis.
The following table presents an overview of the development of the Groups financial investments in the
periods from January 1, 2013 through June 30, 2014 on a consolidated basis. The data for the period from
January 1, 2013 through December 31, 2013 has been taken from the Issuers consolidated financial statements
for the fiscal year ended December 31, 2013. The data for the period from January 1, 2014 through June 30, 2014
has been taken from the Issuers unaudited condensed interim consolidated financial statements for the six
months ended June 30, 2014.
Shares in
affiliated
companies
Equity
investments
in associates
Securities
held as fixed
assets
Other
participations
and other
loans Total
(audited) (audited)
(in million) (in million)
Net book value as of January 1, 2013 . . . . . . . . 2.0 416.9 6.7 5.0 430.6
Additions (at acquisition cost) . . . . . . . . . . . . . . . . . . 0.6 165.2 0.1 0.3 166.2
Disposals (at acquisition cost) . . . . . . . . . . . . . . . . . . (0.0) (193.4) (0.0) (3.9) (197.3)
Reclassifications (at acquisition cost) . . . . . . . . . . 0.0 (19.0) 1.5 17.5 0.0
Accumulated amortization,
depreciation and write-downs . . . . . . . . . . . . . . . . . . (0.4) (8.6) 0.0 0.0 (9.0)
Net book value as of December 31, 2013. . . . . 2.2 361.1 8.3 18.9 390.5
(unaudited) (unaudited)
(in million) (in million)
Additions (at acquisition cost) . . . . . . . . . . . . . . . . . . 1.8 55.3 0.7 0.0 57.8
Disposals (at acquisition cost) . . . . . . . . . . . . . . . . . . (1.9) (65.7) 0.0 0.0 (67.6)
Reclassifications (at acquisition cost) . . . . . . . . . . (0.3) 0.3 (0.0) (0.0) 0.0
Accumulated amortization,
depreciation and write-downs . . . . . . . . . . . . . . . . . . 0.0 0.0 0.0 0.0 0.0
Net book value as of June 30, 2014 . . . . . . . . . . . 1.7 351.1 9.1 18.9 380.7
82
Historical Investments (consolidated)
Additions (at acquisition cost) to equity investments in associates predominantly includes the changes in
the Groups share in the equity capital of the associated company reflected in income/loss from associated
companies in the consolidated income statement, which also includes the acquisition costs of the acquired shares
in associates.
In 2013, the Group invested 11.1 million in equity capital of associates and immaterial amounts in
shares in affiliated companies and securities held as fixed assets. Significant investments in associates were
investments in Africa eCommerce Holding GmbH, Berlin, Germany, amounting to 7.7 million, Westwing
Group GmbH, Berlin, Germany, amounting to 1.5 million and Payleven Holding GmbH, Berlin, Germany,
amounting to 0.5 million. Non-cash investments included the exchange of shares in the associated company,
Billpay GmbH, Berlin, Germany, against shares in Wonga Group Limited amounting to 1.5 million. These
investments were financed from equity capital of the Issuer.
In addition, in 2013 the Group invested 2.4 million in fixed assets that are not financial assets (sum of
cash paid for investments in property, plant and equipment plus cash paid for investments in intangible assets),
each as shown in the consolidated financial statements. Capital consolidation of the newly acquired shares in
Easy Taxi Servios S.A., Brazil, led to goodwill in the amount of 0.9 million. The subsidiary Hellofood
Intermediacao de Negocios Ltda., Brazil, acquired a customer base in the amount of 0.1 million. Furthermore
there were investments in other equipment, operating and business equipment amounting to 0.9 million; thereof
the 0.4 million was made by Kanui Comercio Varejista Ltda., Brazil. These investments were financed from
equity capital of the Issuer.
In the six months ended June 30, 2014, the Group made investments in fixed financial assets amounting
to 10.9 million, thereof 9.3 million for capital increase at the associated company Emerging Markets Online
Food Delivery Holding S. r.l., Luxembourg. In addition, during the six months ended June 30, 2014, the Group
invested 1.5 million in property, plant and equipment, thereof 1.1 million in office, operating and business
equipment. In the six months ended June 30, 2014, the Group purchased software and other licenses amounting
to 0.2 million. These investments were financed from equity capital of the Issuer.
Historical Investments (Unconsolidated)
In 2011, on an unconsolidated basis, the Issuer invested 58.4 million in shares in affiliated companies,
thereof 20.0 million in Zalando SE, 18.0 million in Wimdu GmbH and 7.4 million in Bigfoot I. Furthermore,
the Issuer invested 5.2 million in participations and 0.2 million in other equipment, operating and business
equipment. These investments were financed from equity capital of the Issuer.
In 2012, on an unconsolidated basis, the Issuer invested 14.4 million in shares in affiliated companies,
thereof 4.1 million in BigCommerce, 3.3 million in Bigfoot I, 2.8 million in Home24 GmbH and 2.6 million
in Bigfoot II. Furthermore, the Issuer invested 6.7 million in shares of Care.com, Inc., Waltham, MA, USA,
1.0 million in other equipment, operating and business equipment, 0.1 million in participations and
0.1 million in long term intangible assets. These investments were financed from equity capital of the Issuer.
In 2013, on an unconsolidated basis, the Issuer invested 9.1 million in shares in affiliated companies,
thereof 7.3 million in Rocket Beteiligungs GmbH and 0.8 million in ECommerce Holding I S. r.l.
Furthermore the Issuer invested 1.9 million in participations, thereof 1.5 million in Westwing Group GmbH,
1.6 million in securities held as fixed assets and 0.2 million in other equipment, operating and business
equipment. These investments were financed from equity capital of the Issuer.
In the six months ended June 30, 2014, on an unconsolidated basis, the Issuer invested 11.9 million in
fixed financial assets, including a 9.3 million into Emerging Markets Onlinefood Delivery Holding S.. r.l.
Furthermore, the Issuer invested 0.5 million in other equipment, operating and business equipment. These
investments were financed from equity capital of the Issuer.
Investments that are in Progress
Since July 1, 2014, there have not been and there are no principal investments that are in progress.
Accordingly, the Issuer does not require funding for investments that are in progress.
Principal Future Investments
As of the date of this prospectus, there are no principal future investments on which the Issuers
management board has already made a firm commitment. Accordingly, the Issuer currently does not require
funding for such investments.
83
Bank and Loan Liabilities (consolidated)
Our business is primarily equity-financed resulting in a financing structure that is dominated by equity
capital. The Group utilizes only de minimis amounts of bank debt, which is recorded as Liabilities to banks on
its balance sheet, and represents overdraft amounts drawn on its bank accounts. Accordingly, the Issuer and the
Group do not use any significant hedging instruments to cover interest rate risks in connection with bank debt. In
the medium to long term, the Issuer could require additional capital, such as cash to finance its corporate
overhead and to meet its existing funding plans.
To cover time gaps between rounds of equity financing and in certain other cases, the Issuer extends
loans to its subsidiaries and makes borrowings from affiliated companies. The Groups outstanding debt to its
shareholders, associates and non-consolidated subsidiaries constitutes the bulk of its financial liabilities
calculated on a consolidated basis.
The following table presents a maturity profile of the Groups bank and loan liabilities as of
December 31, 2013 on a consolidated basis:
As of December 31, 2013
Up to 1 year 1 to 5 years
More than 5
years
Secured by
collateral Total
(audited)
(in million)
Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0 0.0 0.0 0.0
Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5 0.0 0.0 0.0 14.5
Liabilities to affiliated companies
(1)
. . . . . . . . . . . . . . . . . . . 0.3 0.0 0.0 0.0 0.3
Liabilities to associated companies
(1)
. . . . . . . . . . . . . . . . . . 21.0 0.0 0.0 0.0 21.0
Other liabilities
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.0 0.7 0.0 1.4
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.5 0.0 0.7 0.0 37.2
(1) Represent obligations under loan agreements.
Other Financial and Non-financial Liabilities (consolidated)
The Groups other financial (except bank and loans) and non-financial liabilities mainly consist of trade
accounts payable and other liabilities. Other liabilities are mainly tax liabilities.
The following table presents a maturity profile of the Groups non-financial liabilities as of
December 31, 2013 on a consolidated basis:
As of December 31, 2013
Up to 1 year 1 to 5 years
More than 5
years
Secured by
collateral Total
(in million)
(audited)
Prepayments received on account of orders . . . . . . . . 0.5 0.0 0.0 0.0 0.5
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.3 0.0 0.0 0.0 20.3
Liabilities to affiliated companies
(1)
. . . . . . . . . . . . . . . . 0.6 0.0 0.0 0.0 0.6
Liabilities to associated companies
(1)
. . . . . . . . . . . . . . . 1.4 0.0 0.0 0.0 1.4
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 0.0 0.0 0.0 6.7
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.6 0.0 0.0 0.0 29.6
(1) Represent payment obligations for services provided to the Group.
Other Financial Commitments and Off-Balance Sheet Transactions (consolidated)
The following table shows a breakdown of the Groups other financial commitments and off-balance
sheet transactions on a consolidated basis as of the dates indicated:
As of
December 31,
As of
June 30,
2013 2014
(audited) (unaudited)
(in million) (in million)
Rental and lease agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6 4.8
Purchase commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.0
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.8 4.9
84
Equity (consolidated)
The following table shows a breakdown of the Groups equity on a consolidated basis as of the dates
indicated:
As of
January 1,
As of
December 31,
As of
June 30,
2013 2014
(audited) (unaudited)
(in million) (in million)
Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.1 0.1
Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289.0 462.2 501.2
Revenue reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328.5 208.9 208.6
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . (0.3) (0.7) (2.1)
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . (23.4) 84.4 (238.8)
Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.6 18.0 22.5
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622.5 773.0 491.5
Comparison of December 31, 2013 and June 30, 2014 (consolidated)
Consolidated equity decreased by 281.5 million from 773.0 million as of December 31, 2013 to
491.5 million as of June 30, 2014. Non-cash contributions made by the parent companys shareholders in the
amount of 14.5 million and capital paid in by minority shareholders in the amount of 55.9 million were more
than offset by a decrease in equity capital following the cash distributions to shareholders in the amount of
286.8 million, non-cash distributions of 37.1 million, changes in the basis of consolidation of 12.6 million
and consolidated net loss for the period of 13.3 million. Broken down by line items, this resulted in stable
subscribed capital of 0.1 million both as of December 31, 2013 and June 30, 2014, an increase in capital
reserves from 462.2 million as of December 31, 2013 to 501.2 million as of June 30, 2014, a slight decrease in
revenue reserves from 208.9 million as of December 31, 2013 to 208.6 million as of June 30, 2014, a decrease
in accumulated other comprehensive income from negative 0.7 million as of December 31, 2013 to negative
2.1 million as of June 30, 2014, a decrease in unappropriated retained earnings from 84.4 million as of
December 31, 2013 to negative 238.8 million as of June 30, 2014 and an increase in minority interests from
18.0 million as of December 31, 2013 to 22.5 million as of June 30, 2014.
Comparison of January 1, 2013 and December 31, 2013 (consolidated)
Total equity increased by 24%, from 622.5 million as of January 1, 2013 to 773.0 million as of
December 31, 2013, mainly driven by consolidated net income for the year of 174.2 million, as well as
proceeds from the issuance of shares to the equity holders of the parent amounting to 159.9 million and
proceeds from the minority interests amounting to 16.7 million. These increases were partially offset by effects
of the purchase of treasury shares of 119.6 million and dividends paid to equity holders of the Issuer of
80.6 million. Broken down by line items, this resulted in stable subscribed capital of 0.1 million both as of
January 1, 2013 and December 31, 2013, an increase in capital reserves from 289.0 million as of January 1,
2013 to 462.2 million as of December 31, 2013, a decrease in revenue reserves from 328.5 million as of
January 1, 2013 to 208.9 million as of December 31, 2013, a decrease in accumulated other comprehensive
income from negative 0.3 million as of January 1, 2013 to negative 0.7 million as of December 31, 2013, an
increase in unappropriated retained earnings from negative 23.4 million as of January 1, 2013 to 84.4 million
as of December 31, 2013 and a decrease in minority interests from 28.6 million as of January 1, 2013 to 18.0
million as of December 31, 2013.
85
Balance Sheet (unconsolidated)
The following table sets forth selected information from the Issuers unconsolidated balance sheet as of
December 31, 2011, December 31, 2012 and December 31, 2013.
As of December 31,
2011 2012 2013
(audited)
(in million)
ASSETS
Fixed assets
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.1 0.1
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.9 0.7
Financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.5 98.0 90.6
87.8 99.1 91.4
Current assets
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 2.6 1.2
Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.5 22.0 11.4
Cash in hand, bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 101.1 385.4
106.7 125.7 398.0
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.1 0.1
194.5 224.9 489.5
EQUITY AND LIABILITIES
Equity capital
Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.1 0.1
Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58.8 210.7 370.5
Profit/loss carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.5
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.7 66.6
150.1 210.8 437.2
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 7.2 31.9
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.0 6.9 20.4
Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 0.0
194.5 224.9 489.5
Assets
Total assets increased by 16% from 194.5 million as of December 31, 2011 to 224.9 million as of
December 31, 2012 and by an additional 118% to 489.5 million as of December 31, 2013. This increase was
largely due to an increase of cash in hand, banks balances, which was only partially offset by a significant
decrease in receivables from affiliated companies.
Equity Capital
Equity capital increased by 40% from 150.1 million as of December 31, 2011 to 210.8 million as of
December 31, 2012 and by an additional 107% to 437.2 million as of December 31, 2013. These increases were
primarily due to payments into capital reserves as a result of investments into the Issuer by AI European
Holdings S. r.l. For more information, see Corporate Structure, Financing Rounds and Cash Management
Issuer Financing. Broken down by line items, subscribed capital remained relatively stable. It increased from
0.0 million as of December 31, 2011 to 0.1 million as of December 31, 2012. As of December 31, 2013, it also
amounted to 0.1 million. Capital reserves increased from 58.8 million as of December 31, 2011 to
210.7 million as of December 31, 2012 and 370.5 million as of December 31, 2013. Profit/loss carried forward
amounted to 40.5 million as of December 31, 2011. There was no profit/loss carried forward as of
December 31, 2012 or December 31, 2013. Unappropriated retained earnings amounted to 50.7 million as of
December 31, 2011. There were no unappropriated retained earnings as of December 31, 2012. As of
December 31, 2013, unappropriated retained earnings amounted to 66.6 million.
86
Liabilities
Liabilities decreased by 84% from 42.0 million as of December 31, 2011 to 6.9 million as of
December 31, 2012 due to a significant reduction in liabilities to affiliated companies. From December 31, 2012
to December 31, 2013, liabilities nearly tripled to 20.4 million as of December 31, 2013 due to an increase in
other liabilities.
Quantitative and Qualitative Description of Market and Other Risks
Credit Risk
We define credit or default risk as the risk that our business partners will be unable to meet their
contractual payment obligations, thereby resulting in a loss for the Group. Credit risk encompasses the direct risk
of default and the risk of a deterioration of creditworthiness, as well as concentration risks.
The credit risks exist for all classes of financial instruments, and in particular for cash and cash
equivalents, receivables from associates and trade receivables. The Groups receivables are unsecured. The
maximum risk positions of financial assets, which are generally subject to credit risk, are equal to their carrying
amounts.
As of June 30, 2014, on a consolidated basis, the Group had cash and cash equivalents of 80.5 million
(December 31, 2013: 437.4 million). Regarding cash in hands, bank balances and checks, the Group generally
only enters into agreements with banks with an excellent credit rating. Counterparty creditworthiness is
continuously monitored and assessed by the Group.
The credit risk related to receivables from associates, which amounted to 47.1 million as of June 30,
2014 (December 31, 2013: 22.6 million), are managed by the Groups investment controlling department. Trade
receivables, which amounted to 2.4 million as of June 30, 2014 (December 31, 2013: 2.7 million), are mainly
generated in the course of e-commerce business activities of the Group. Credit risk is managed and controlled by
verifying the customer creditworthiness as part of the online ordering process. If a deterioration in payment
behavior or other causes potentially triggering impairment of receivables are recognized, the accounts receivable
management either urges the customer to pay, or takes actions to reclaim the sold goods. Customer
creditworthiness is monitored on an ongoing basis. The concentration of credit risk is limited as a result of the
Groups broad, heterogeneous customer base.
Identified credit risks are covered by appropriate valuation allowances. The Groups Other operating
expenses include expenses for derecognition and impairment of receivables, which amounted to 0.4 million in
the six-month period ended June 30, 2014 (year ended December 31, 2013: 3.6 million).
Liquidity Risk
We define liquidity risk as the risk that we will be unable to meet our payment obligations at a
contractually agreed date. To ensure sufficient liquidity, we monitor and plan our liquidity requirements on a
continuous basis. We maintain sufficient cash and cash equivalents to ensure that we can meet our obligations for
a defined period at all times.
The capital requirements of the Group include investment in new and existing companies, as well as the
ongoing capital requirements for the operating activities of the Group. We monitor the risk of liquidity shortages
(liquidity risk) by means of cash budgets and reforecasts. In this regard, the maturities of financial investments
and financial assets (receivables and other financial assets, for example) as well as projected cash flows from
operations are considered. Besides existing cash and cash equivalents and proceeds from the sale of financial
assets or investments, the future cash inflows from business operations represent an additional source of
liquidity.
Risks from Changes in Foreign Currency Exchange Rates
A foreign exchange risk exists due to operations outside the Eurozone, resulting in fluctuations in
exchange rates having a potential impact on the consolidated financial statements. The individual transactions in
foreign currencies are not hedged because they are generally short term. The transactions are not hedged through
financial techniques, instead, when possible and appropriate, they are hedged through the setup of the real
economic conditions of the respective business (natural hedges).
The Groups Other operating expenses include expenses from currency translation effects of
0.3 million in the six-month period ended June 30, 2014 (year ended December 31, 2013: 0.2 million). Effects
87
of exchange rate fluctuations on the translation of net asset positions in the reporting currency are recorded in
Accumulated other comprehensive income within equity in the Group consolidated financial statements.
Critical Accounting Policies
The preparation of the Groups consolidated financial statements in accordance with German GAAP
requires our management to make judgments, estimates and assumptions that affect the reported amounts of
income or revenue, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of each
reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of the asset or liability affected in future periods.
Significant accounting policies are those that require the most complex or subjective judgments, often as
a result of the need to make estimates about the effects of matters that are inherently uncertain. The critical
accounting policies are those related to accounting for the Groups subsidiaries, associates and other
participations, as well as to the scope of consolidation.
Classification of equity investments in the consolidated financial statements
On its consolidated balance sheet, the Group classifies shareholdings in each of its companies as one of
the four categories depending on the level of control it exercises over the relevant company.
Material subsidiaries
When the Group exercises full control over the business of a material company such subsidiary is fully
consolidated.
Non-material subsidiaries
Non-material fully controlled companies are reported as Shares in affiliated companies.
Associates
When the Group has significant influence over the business of a standalone entity but does not control
it, generally when the Group has between 20% and 50% of the total voting power of the entity, respective
holdings are recorded as Equity investments in associates.
Other equity investments
In all other cases, the Group reports its shareholdings as Securities held as fixed assets or as Other
participations, depending on whether or not the relevant participation is structured and documented as a
security.
Application of consolidation method in the consolidated financial statements
Subsidiaries that the Group controls are accounted for under the full consolidation method. While the
Group generally consolidates companies in which it directly or indirectly holds 50% or more of the outstanding
voting rights, certain of these companies are accounted for under the equity method in accordance with
Sec. 296 (1) Sentence 1 of the German Commercial Code (HGB).
Whether or not the Group controls a subsidiary depends on an evaluation of a number of factors,
including, among others, representation on its board of directors and the voting and other rights of other investors
(minority shareholders), including their participation in significant decisions made in the ordinary course of
business (e.g., approval of the annual operating budget), as well as the Groups ownership level of the
outstanding voting rights of the subsidiary.
Application of the equity method in the consolidated financial statements
Companies that are not controlled by the Group but that are under its significant influence are generally
accounted for under the equity method. To determine the level of control imposed by the Group, a number of
measures are applicable. Generally, if the share interest in the voting securities of the associated company is
between 20% and 50%, the Group does not have control over such company, resulting in the accounting for it
under the equity method.
On initial recognition, equity investments in associates are measured at acquisition cost. On subsequent
measurement, the equity investments in associates are recognized at the lower of the Groups share in the equity
capital of the associated company and fair value, if permanent impairment is assumed.
88
Changes in the Groups share in the equity capital of the associated company are reflected in the line
item Income/loss from associated companies in the consolidated income statement. These changes may be due
to earnings or losses of the company or due to other changes in the associated companys equity capital, for
example, as a result of financing rounds. Income/loss from associated companies also includes gains or losses
from disposals of the Issuers direct or indirect interests in associated companies, as well as impairment losses
(write-downs) relating to associates.
Measurement of long-term equity investments in the unconsolidated financial statements
On initial recognition shares in affiliated companies, participations and securities held by the Issuer as
fixed assets are measured at acquisition cost and subsequently stated at the lower of acquisition costs and fair
value. Financial assets are written down when impairments of these assets have occurred and such impairments
are of a permanent nature, generally due to the discontinuation of a particular business.
Impairment recognized in the income statement line item Write-downs on financial assets on an
unconsolidated basis amounted to 3.1 million in 2013, 3.1 million in 2012 and 2.7 million in 2011.
89
BUSINESS
Overview
We identify and build proven Internet business models and transfer them to new, underserved or
untapped markets, mainly outside the United States and China, where we seek to scale them into market leading
online companies. We started in 2007 with 4 employees and 2 consumer brands, based on an initial investment of
0.5 million from European Founders Fund GmbH & Co. Beteiligungs KG Nr. 1 (later renamed Global Founders
Capital GmbH & Co. Beteiligungs KG Nr. 1). As of the date of this prospectus, on an aggregate basis, more than
20,000 employees work across our network of companies, which conducts business in 116 countries on
5 continents. Our most mature companies, which we refer to as proven winners, generated aggregate net revenues
of 757 million (unaudited sum total of their reported net revenues based on the applicable GAAP for the
relevant company, in each case taking the last fiscal year for which data was available) and aggregated net losses
of 442 million (unaudited sum total of their net losses based on generally accepted accounting principles
applicable for the relevant company, in each case taking the last financial year for which data was available and
excluding extraordinary gains of Dafiti resulting from the measurement of limited partnership interests). The
Issuers aggregate direct and indirect stakes in all of our companies, including proven winners, our growing
companies that have already achieved a significant size, which we refer to as emerging stars, our regional
Internet groups and our strategic participations and other investments, have a combined value of 2.6 billion
(1)
based on the respective latest third party financing rounds (including a financing round of Lamoda, solely
subscribed by its majority owner Bigfoot I), secondary transactions or with respect to some of the stakes in the
category others, the value assigned to them in connection with their contribution to the Issuer.
We build online business models that satisfy basic consumer needs mainly across three focus sectors.
Our e-commerce companies include retail companies in the areas of fashion, general merchandise, home and
living, office supplies and food and groceries. Our marketplace companies seek to displace traditional supply
chains by creating venues where buyers and sellers can transact directly, and include real estate and car online
classifieds, travel and transport, and food delivery companies. Our third sector, financial technology, includes
companies that focus on bringing together borrowers and lenders in regions and segments that are underserved by
traditional banks, particularly in the consumer and small and medium-sized enterprise segments, and on
facilitating payments.
As part of our global strategy, we have created regional Internet groups in Africa, Asia Pacific, Latin
America and the Middle East in order to bundle local market and business model insights, facilitate regional
commercial, strategic and investment partnerships, in particular with mobile telecommunication providers,
enable local recruiting and sourcing and accelerate the regional rollout of our companies. Our local strategic
partners, such as MTN, ooredoo and Millicom, are co-investors in our regional Internet groups and provide them
and our companies with significant strategic support and opportunities to benefit from synergies.
The Issuer has developed proprietary technology where it believes it provides the network of companies
with a competitive advantage. In particular, the Issuer has created a core platform for each of our three focus
sectors, which allows a plug and play setup, scales with the business and is easily adaptable to the specific needs
of the individual companies. The Issuer has entered into framework agreements with major Internet and software
players, such as Google, Facebook, Rackspace, Responsys and Salesforce, in order to complement the Issuers
technology platform and provide the network of companies with competitively priced, state-of-the-art
technology, payment, online advertising and other services. The Issuer has created analytical tools for the
analysis of key performance indicators which allows us to benchmark our companies, identify best-in-class
performance among our companies and share the knowledge across our network of companies.
The Issuers platform has enabled us to build a large, global network of companies and has historically
put us in a position to launch more than 10 new companies every year through application of a standardized
business model identification and development process. Every new company that the Issuer starts accelerates the
virtuous circle of synergy creation among our companies. The larger the size of our network of companies, the
more significant our opportunity is to benefit from synergies and network effects with respect to our suppliers,
solution providers, customers and employees. A new company joining our network increases our overall
purchasing volume and negotiation power, and contributes new data and knowledge, which is typically shared on
a voluntary basis across our entire network. The addition of new companies also establishes new customer
relations and additional opportunities for cross-marketing that benefit all of the companies in our network.
(1)
Unaudited. Calculated based on accounting and controlling records of the Issuer.
90
The Issuer typically owns a direct or indirect stake of 80% to 90% in our companies at the time of
launch, with the remainder being set aside for management equity participation. In subsequent financing rounds,
we bring in external equity financing, which is provided by our local strategic partners and other strategic and
financial investors, including existing shareholders of the Issuer. These investments are either made directly into
the company or indirectly into an intermediate holding company or regional Internet group. Historically, this has
meant that the direct and indirect stakes of the Issuer in a company have decreased over time to less than 50% as
the company grows and matures. Accordingly, the Issuer does not directly or indirectly control most of our
companies. The Issuer currently intends to maintain beneficial ownership stakes in most of our new companies of
at least 50% going forward, which means that its overall investment in our new companies will increase and that
it will participate more significantly in their development.
The revenues of the companies that the Issuer does not directly or indirectly control are not reflected in
the Issuers consolidated income statement and its balance sheet only reflects their historical value. The Issuers
consolidated financial statement as of and for the year ended December 31, 2013 show sales revenues of
73 million, a result from ordinary activities of 187 million and total assets of 877 million in 2013. For more
information, see Managements Discussion and Analysis of Financial Condition and Results of Operations
Result of Operations (consolidated).
Origins
The Issuers co-founder and CEO, Oliver Samwer, has a proven track record as an Internet entrepreneur.
In 1999, Oliver Samwer, together with his two brothers, Marc and Alexander Samwer, and three other founders,
co-founded Alando, which became the leading Internet auction marketplace in Germany. Within 129 days from
the start of operations, Alando was sold to eBay in an all-share deal valued at over US$43 million at the time of
the transaction.
The Issuer was founded in 2007 as a subsidiary of European Founders Fund GmbH & Co. Beteiligungs
KG Nr. 1 (later renamed Global Founders Capital GmbH & Co. Beteiligungs KG Nr. 1), which sold the Issuer to
the European Founder Fund GmbH (now Global Founders GmbH (GFG)) in 2009. Since then, we have evolved
into a global network of companies that operates under 66 consumer brands and conducts business in
116 countries. The following graphic shows our rapid growth in terms of numbers of countries, number of
consumer brands, number of employees (including those of our companies) and the total population in the
markets in which we operate.
>3
>5
>10
>15
>45
>70
>90
>100
>5
11
16
21
41
51
56
66
# of Countries # of Consumer Brands
2013
>20 >120 >220 >420 >2,400 >10,500 >15,500 >20,000 # of Employees
>95 MM >120 MM >750 MM >1.1 BN >3.2 BN >4.0 BN >4.5 BN >5.4 BN
Population in Live
Countries
2014 2012 2011 2010 2009 2008 2007
>>>>>115
>45
>>70
>>>900
>>100
16
222222222222111
44444444444111111111
5555555555555555555555111111111111111
56
66
Source: Issuer information.
(1) Total number of employees across our network of companies.
One important driver of our growth has been the launch of various e-commerce companies. Our first
major e-commerce company was Zalando, which engages in online fashion retail and quickly became Europes
market leader. In a series of transactions, we spun off nearly our entire stake in Zalando in 2013. Accordingly,
91
Zalando is no longer part of our network of companies. For more information, see Certain Relationships and
Related-Party TransactionsZalando Spin-Off.
Between 2010 and 2012, we launched the next wave of e-commerce companies with a focus on
emerging market economies. This wave included Dafiti in Latin America and Lazada in Southeast Asia.
In 2009, we founded our first major marketplace company, CityDeal. CityDeal was a deal-of-the-day
website that offered discounted vouchers for products and services. In May 2010, the Issuer sold its stake in
CityDeal to Groupon, Inc. in an all-share deal valued at US$222 million at the time of the transaction. In the
same year, we founded Wimdu, a global marketplace for short-term rentals and private accommodation. Our
marketplace companies further include foodpanda, which launched in 2013, and Helpling, which launched in
2014.
Recently, we expanded our financial technology sector by starting a number of new companies,
including Lendico, which launched in 2013, and Zencap, which launched in 2014. For more information on the
companies in our network of companies, see Our Companies below.
In order to finance the growth of our companies, we have raised equity capital on the level of our
companies and holding companies in numerous financing rounds. In total, we have raised about 2.8 billion
(1)
in
equity capital or capital commitments for the companies currently in our network from a large number of
investors, including Internet sector specialists such as DST, Holtzbrinck Ventures, NEA, Phenomen Ventures and
Summit Partners; financial investors such as Fidelity Investments, IFC, certain funds attributable to J.P. Morgan
Investment Management Inc., Ontario Teachers Pension Plan, Putnam Investments and Verlinvest; high net
worth individuals and family offices; and strategic investors such as MTN, ooredoo, Millicom, Tesco, Rewe, and
Tengelmann. The total value of our companies in our current network of companies amounted to 6.7 billion
(1)
based on the respective latest financing rounds or secondary transactions. Stakes in these companies valued at
4.5 billion
(1)
are held by third party investors, such as the ones named in the second preceding sentence, and
stakes in these companies valued at 2.2 billion
(1)
are held, directly or indirectly, by the Issuer. For uncertainties
around this valuation, see Risk FactorsRisks Related to the Issuer and our CompaniesWe disclose in this
prospectus valuations derived from investments in the Issuer and our companies. These valuations may not
reflect the past, present or future fair values of the Issuer or our companies, and potential investors in this
offering should not place undue reliance on these valuations.
Our long-term partners Kinnevik and Access Industries, who have also made significant equity
investments in our network of companies, have contributed significant amounts of equity capital to the Issuer.
These financing rounds were agreed based on significant premiums to the latest valuation of our companies at the
time of signing of the investment agreement for the relevant financing round. In August 2014, additional strategic
partners became shareholders of the Issuer. These include PLDT, a leading telecommunication services provider
in the Philippines with a market capitalization of approximately 12.0 billion. Through its subsidiary, Smart
eMoney, PLDT is a world-leading pioneer in financial technology, including mobile banking, electronic
remittance and mobile wallet services. We believe that PLDT and we have many complementary strengths that
will help us to significantly accelerate our presence and growth in the financial technology sector. In
August 2014, PLDT invested 333 million in cash in return for a 10.0% stake of the Issuer at the time the
investment was agreed. The purchase price reflects our expectation that PLDT will contribute know-how and will
position us to benefit from significant synergies. The Issuer currently plans to spend the money invested to drive
the development of online and mobile payment solutions in emerging markets. After PLDT, United Internet, a
leading European Internet specialist, invested a total of 435 million for an 10.7% stake in the Issuer based on
the Issuers capital including the full PLDT investment. United Internets investment consisted of 333 million in
cash and a contribution in kind valued at 102 million pursuant to the contribution agreement among United
Internet, the Issuer and the Issuers existing shareholders at the time of signing of the contribution agreement.
The full value of the contribution in kind was not subject to an audit by an independent auditor. We believe that
United Internets investment will further strengthen the long-standing relationship between United Internet and
us. Finally, affiliates of Holtzbrinck, which hold a large number of investments in our companies and
intermediate holding companies, contributed stakes in BigFoot I and BigCommerce as well as stakes in Home24,
Westwing and HelloFresh (the Holtzbrinck Contribution-in-Kind). In return for this contribution, which was
valued in aggregate at 127 million, the affiliates of Holtzbrinck received in the aggregate a 2.5% stake in the
Issuer based on the Issuers capital including the full PLDT and United Internet investments. All contributed
stakes were valued on the basis of the last external funding round of the respective companies, with no
independent investment bank involved. The share-for-share transaction builds on a long-standing and successful
partnership between Holtzbrinck and us and allows the Issuer to progress its strategic objective of owning larger
stakes in our companies.
(1)
Unaudited. Calculated based on accounting and controlling records of the Issuer.
92
Our Market Opportunity
The Issuer has built its platform around three core beliefs:
Internet will go much further and faster than anyone had thought before.
Once industries have been created, the innovation is in the operations.
As industries mature, the value is in the platform.
We believe that there were two Internet revolutions, the first through a significant increase of online
penetration from 1994 to 2006 and the second thereafter driven by the increase in smartphone penetration, which
we believe will significantly accelerate the prevalence of Internet enabled business models that target consumers
and small and medium sized enterprises, such as our business models, on a global scale. We believe that more
and more commerce will be effected online and increasingly substitute for offline transactions, in particular in
emerging markets where offline retail is underdeveloped or certain segments of offline retail do not exist at all.
We also believe that our regions will show significant growth, both in terms of population and GDP as well as in
terms of Internet penetration. The following graphic illustrates the development of Internet and smartphone
penetration for three of the countries in which we operate: Nigeria, the Philippines and Colombia.
Nigeria
Examples of % of Population Using the Internet:
Philippines
Colombia
38
37
40
24
28
33
38
25
29
36
37
25
29
31
35
16
20
9
19
0 0 0 1
1
4
6
2
3
4
5
5 5
6
6
9
1
3
4 4
5
6
7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
11
7
6
1
Online
Revolution
Smartphone
Revolution
1
2
Source: ITU Data.
In 2013, 76% of the worlds total population of 7.2 billion people lived outside the United States and
China (Source: IMF, WEO Database). This share is forecast to increase over the next 10 years, as the population
outside the United States and China is expected to grow by 14% between 2013 and 2024, while the population in
the United States and China is forecast to increase by 5% over the same period (Source: IMF, WEO Database).
This increase in population is expected to be accompanied by a surge in purchasing power, largely due to rising
middle classes in emerging markets. For example, the share of people in Brazil with an annual income between
US$30,000 and US$70,000 is expected to increase from 1% in 2006 to 12% in 2022, corresponding to a
compounded annual growth rate of 16% (Source: Euromonitor, Countries and Consumers, 2014). Russia, India,
Indonesia and many others are expected to follow a similar path (Source: Euromonitor, Countries and
Consumers, 2014).
Consumers need to have stationary or mobile access to the Internet in order to be in a position to engage
in online commerce. In 2013, 69% of the total 2.7 billion global Internet users were located outside the
United States and China, with the share expected to increase (Source: IDC Database). The number of Internet
users outside the United States and China is expected to grow by 34% between 2013 and 2018, 1.2 times the
expected growth in the United States and China over the same period (Source: IDC Database). Our markets
account for an even higher share of mobile users. In 2013, 74% of the total 4.5 billion global mobile users were
located outside the United States and China (Source: WCIS, Cellular Forecasts). Again, the forecast growth in
our regions of 20% between 2013 and 2018 is expected to be 1.2 times the growth in the United States and China
over the same period (Source: WCIS, Cellular Forecasts). Finally, the smartphone penetration rate in our markets
is forecast to increase by 21% from 2013 to 2018, while the growth in the United States and China is expected to
amount to 10% over the same period (Source: WCIS, Cellular Forecasts).
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A large number of our markets are challenging in their complexity, which we seek to turn to our
advantage. The complexity of the markets in which we are present increases the barriers to entry significantly.
Our companies have to adapt to different customs and customer habits and develop solutions to address local
needs and circumstances, such as a lack of appropriate infrastructure and reliable logistics providers, less
developed cashless payment systems and opaque legal systems. Therefore, we have had to develop our own
infrastructure with e.g. last mile delivery and proprietary assets across all steps of our value chain, such as
assortment and warehousing. We believe that the more complex a market, the lower the number of active players
in the market and, accordingly, the higher the market share of each active player, resulting in the potential for
higher margins than in less complex markets and therefore resulting in superior economics.
The offline retail infrastructure in a number of our markets is less developed than that in the
United States or in Western Europe. This provides our companies operating in Latin America, Africa and parts of
Asia Pacific with a unique opportunity to leapfrog the development of brick-and-mortar retail stores and to gain a
high market share before large offline retail brands develop. The following graphic shows a comparison of
persons per offline retail outlet.
Source: Planet Retail Database, IMF, WEO Database.
Overall, we believe that our regions represent a very active market with a large number of potential
customers and that we have developed an impressive footprint.
We have one or more companies that are active in each of Facebooks top 10 user cities, none of
which is located in the United States (Source: Socialbakers.com, Blog, 2012).
We are present in 26 out of the top 30 most populous countries (Source: IMF, WEO Database,
2013).
We are present in 27 out of the top 30 fastest growing economies (Source: IMF, WEO Database,
2013).
We are present in 26 out of the top 30 countries by GDP (on a purchase power parity basis)
(Source: IMF, WEO Database, 2013). We are present in 27 out of the top 30 countries by number
of Internet users (Source: IDC Database, 2013; BMI Market Data, 2013).
We are present in 26 out of the top 30 countries by mobile users (Source: WCIS, Cellular Forecasts,
2013).
Market Trends in Our Regions
Europe
In Europe (excluding Russia), we address the 20 largest economies (Source: IMF, WEO Database,
2013). In 2013, the GDP of the countries addressed by Rocket Internet in this region amounted to
US$19,303 billion (Source: IMF, WEO Database). In 2013, this region, with approximately 601 million
94
inhabitants, was the fourth largest in terms of population (following Asia Pacific (excluding China), China and
Africa & the Middle East) (Source: IMF, WEO Database). Between 2013 and 2018, the population of this region
is expected to grow by 0.3% (Source: IMF, WEO Database). With 445 million Internet users, this region has the
third highest number of Internet users worldwide and the second highest Internet penetration rate (74%)
worldwide (Source: IDC Database, 2013). Europe ranks third only to China and Asia Pacific in terms of its
number of smartphone users (281 million) and has the highest smartphone user penetration rate (48%) worldwide
(Source: WCIS Cellular Forecasts, 2013). Internet retail has grown to US$189 billion in Europe in 2013 (Source:
Euromonitor, Retailing and Internet Retailing by Country, 2014 (Western Europe and Eastern Europe, excluding
Russia)). The e-commerce penetration rate in Europe is the third highest in the world (5.2%) (Source:
Euromonitor, Retailing and Internet Retailing by Country, 2014 (Western Europe and Eastern Europe, excluding
Russia, compared to USA, China, Asia Pacific (excluding China), Latin America, Russia and CIS, Middle East
and Africa)), and Europes business-to-consumer e-commerce market has a size of US$341 billion (Source:
eMarketer, Market Data, 2013). Europes total retail market had a size of US$3,658 billion in 2013 (Source:
Euromonitor, Retailing and Internet Retailing by Country, 2014 (Western Europe and Eastern Europe, excluding
Russia)).
Latin America
In Latin America, we address 14 of the 20 largest economies (Source: IMF, WEO Database, 2013). As
such, the GDP of the countries we address in this region amounted to US$5,528 billion in 2013 (Source: IMF,
WEO Database). In 2013, this region, with approximately 586 million inhabitants, was the fifth largest in terms
of population (following Asia Pacific (excluding China), China, Africa & the Middle East and Europe (excluding
Russia)) (Source: IMF, WEO Database). Between 2013 and 2018, the population of this region is expected to
grow by 1.1% (Source: IMF, WEO Database). With 268 million Internet users, this region has the third lowest
number of Internet users worldwide, but the fourth highest Internet penetration rate (46%) worldwide
(Source: IDC Database, 2013). Latin America ranks second to last, followed only by Russia & CIS, in terms of
its number of smartphone users (152 million) and has the third lowest smartphone user penetration rate (26%)
worldwide (Source: WCIS Cellular Forecasts, 2013). As a result of the low Internet and smartphone penetration
rates, Latin Americas e-commerce market is currently one of the three smallest worldwide (Source:
Euromonitor, Retailing and Internet Retailing by Country, 2014, compared to USA, China, Europe (excluding
Russia), Asia Pacific (excluding China), Russia and CIS, Middle East and Africa). Internet retail amounts to
US$23 billion in Latin America, and the regions e-commerce penetration rate is currently the second smallest in
the world (2.1%) (Source: Euromonitor, Retailing and Internet Retailing by Country, 2014, compared to USA,
China, Europe (excluding Russia), Asia Pacific (excluding China), Russia and CIS, Middle East and Africa),
which we believe indicates significant growth potential. We believe that the relatively low e-commerce
penetration rate provides significant growth potential for Internet-based business. Latin Americas business-to-
consumer e-commerce market has a size of US$48 billion (Source: eMarketer, Market Data, 2013). Latin
Americas total retail market had a size of US$1,091 billion in 2013 (Source: Euromonitor, Retailing and Internet
Retailing by Country, 2014).
Russia & CIS
By addressing Russia & CIS, we are addressing one of the largest economies worldwide (Source: IMF,
WEO Database, 2013). In 2013, the GDP of the countries we address in this region amounted to
US$2,614 billion (Source: IMF, WEO Database). In 2013, this region, with approximately 285 million
inhabitants, was our smallest region in terms of population (Source: IMF, WEO Database). Between 2013 and
2018, the population of this region is expected to increase by 0.4% (Source: IMF, WEO Database). With
138 million Internet users, this region has the lowest number of Internet users worldwide, but the third highest
Internet penetration rate (48%) worldwide (Source: IDC Database, 2013). Russia & CIS also ranks last in terms
of its number of smartphone users (58 million), but has the fourth highest smartphone user penetration rate (28%)
worldwide (Source: WCIS Cellular Forecasts, 2013). The regions e-commerce market is the second smallest
worldwide (Source: Euromonitor, Retailing and Internet Retailing by Country, 2014, compared to USA, China,
Europe (excluding Russia), Asia Pacific (excluding China), Latin America, Middle East and Africa). Internet
retail has grown to US$17 billion in Russia & CIS (Source: Euromonitor, Retailing and Internet Retailing by
Country, 2014). The e-commerce penetration rate in Russia & CIS is currently the third smallest in the world
(2.5%) (Source: Euromonitor, Retailing and Internet Retailing by Country, 2014, compared to USA, China,
Europe (excluding Russia), Asia Pacific (excluding China), Latin America, Middle East and Africa), which we
believe indicates significant growth potential. The regions business-to-consumer e-commerce market has a size
of US$18 billion (Source: eMarketer, Market Data, 2013). Russia and CISs total retail market had a size of
US$681 billion in 2013 (Source: Euromonitor, Retailing and Internet Retailing by Country, 2014).
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Asia Pacific
In the Asia Pacific region (excluding China), we address 17 of the 20 largest economies in terms of
GDP (Source: IMF, WEO Database, 2013). In 2013, the GDP of the countries we address in this region
amounted to US$11,602 billion (Source: IMF, WEO Database). In 2013, this region, with approximately
2,470 million inhabitants, was the largest in terms of population (Source: IMF, WEO Database). Between 2013
and 2018, the population of this region is expected to grow an additional 1.3% (Source: IMF, WEO Database).
With 562 million Internet users, this region has the second highest number of Internet users worldwide
(following China), but the lowest Internet penetration rate (23%) worldwide (Source: IDC Database, 2013). Asia
Pacific ranks second only to China in terms of its number of smartphone users (376 million), but has the second
lowest smartphone user penetration rate (18%) worldwide (Source: WCIS, Cellular Forecasts, 2013). Despite low
Internet and smartphone penetration rates, Asia-Pacifics e-commerce market (excluding China) is well
developed. Internet retail has grown to US$88 billion (Source: Euromonitor, Retailing and Internet Retailing by
Country, 2014, compared to USA, China, Europe (excluding Russia), Latin America, Russia and CIS, Middle
East and Africa). The e-commerce penetration rate in Asia Pacific is the fourth highest in the world (3.4%)
(Source: Euromonitor, Retailing and Internet Retailing by Country, 2014, compared to USA, China, Europe
(excluding Russia), Latin America, Russia and CIS, Middle East and Africa), and Asia Pacifics business-to-
consumer e-commerce market, with a size of US$115 billion, is even more developed (Source: eMarketer,
Market Data, 2013). Asia Pacifics total retail market had a size of US$4,313 billion in 2013
(Source: Euromonitor, Retailing and Internet Retailing by Country, 2014).
Africa & the Middle East
In Africa & the Middle East, we address 17 of the 20 largest economies (Source: IMF, WEO Database,
2013). In 2013, the GDP of the countries we address in this region amounted to US$4,134 billion (Source: IMF,
WEO Database). In 2013, this region, with approximately 1,306 million inhabitants, was the third largest in
terms of population (following Asia Pacific and China) (Source: IMF, WEO Database). Between 2013 and 2018,
the population of this region is expected to grow by 2.4% (Source: IMF, WEO Database). With 319 million
Internet users, this region has the fourth highest number of Internet users worldwide but the second lowest
Internet penetration rate (23%) worldwide (Source: IDC Database, 2013). Similarly, Africa & the Middle East
ranks fourth highest in terms of its number of smartphone users (188 million) but has the lowest smartphone user
penetration rate (14%) worldwide (Source: WCIS, Cellular Forecasts, 2013). As a result of the low Internet and
smartphone penetration rates, Africa & Middle Easts e-commerce market is the smallest (US$3 billion)
worldwide and least penetrated (0.4%) worldwide (Source: Euromonitor, Retailing and Internet Retailing by
Country, 2014, compared to USA, China, Europe (excluding Russia), Asia Pacific (excluding China), Latin
America, Russia and CIS), and Africa & the Middle Easts business-to-consumer e-commerce market had a size
of US$27 billion (Source: eMarketer, Market data, 2013). Africa & Middle Easts total retail market had a size of
US$894 billion in 2013 (Source: Euromonitor, Retailing and Internet Retailing by Country, 2014).
Summary of Key Trends
Overall, we believe that our markets have significant upside potential and will be formed and shaped by
four megatrends. We believe that these four megatrends will be tailwinds for our network of companies across
our focus sectors and geographies, in particular when compared with the United States and China:
Smartphone penetration will become ubiquitous, significantly accelerating the prevalence of
Internet enabled business models. By 2018, smartphone user growth is predicted to increase by
21% in our focus regions compared to 10% in the United States and China (Source: WCIS, Cellular
Forecasts). An increase in the number of smartphone users results in a higher number of persons
with Internet access. We believe this means that the Internet will go much further and faster than
was expected in the past.
The population in many of our markets is younger than in the United States
(Source: United Nations, World Population Prospects, 2009), which we believe increases the
potential for Internet based business models. For example, the proportion of the total population
aged 65 and over is only 5% in India and 7% in Mexico and Brazil compared to 13% in the United
States. We believe that a higher share of younger people corresponds to a higher share of
smartphone users who are digital natives.
The middle class in many of our emerging market economies is expected to grow strongly
(Source: Euromonitor, Countries and Consumers, 2014). For example, the middle class in
Indonesia is expected to grow from 1% to 16% of total population between 2006 and 2022
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compared to the United States where the middle class is expected to grow from 31% to 33% of the
total population between 2006 and 2022. As these economies continue to develop, we anticipate
that significant middle class growth will result in a substantial increase in discretionary consumer
spending.
The offline retail infrastructure in many of our target markets is underdeveloped (Source: Planet
Retail Database, 2014). For example, while there are more than 90,000 people per retail outlet in
Asia Pacific (excluding China, Japan, South Korea), there are less than 1,200 people per retail
outlet in the United States. This means that we are provided with the opportunity to establish an
online retail market before offline infrastructure develops, allowing customers to leapfrog the
physical retail market development. The limited offline competition positions e-commerce
businesses to grow faster and capture a larger share of wallet than e-commerce companies active in
markets with significant offline competition, such as the United States.
We believe that the expected increase in Internet penetration, our presence in high growth markets,
increasing spending power and limited competition provide us with the opportunity to become the proxy for
Internet outside the United States and China.
Our Business Model
The Issuer has developed an operating platform for building and scaling online companies that address
basic consumer needs through Internet-based business models. By taking proven models to new markets, we
target a market with 5.4 billion potential customers in all countries other than the United States and China.
Our companies are active in a large number of sectors, targeting to cover virtually 100% of a
consumers online retail and services wallet via a multitude of different business models.
We have built our companies by using a four step process that aims to create sustainable value.
Throughout this process, the Issuer provides our companies with funding support and support through operational
involvement.
Identify. The first step of our business development process is to identify proven Internet business
models and potential target markets. We do not passively wait for founders to approach us with ideas for
potential companies. Instead, we actively search for proven business models that have attracted significant
funding from well-known investors, exhibit strong operational traction, have been successful in other regions and
have limited customer adoption risk. We then identify associated target markets for these business models,
looking for fast-growing markets with no or limited competition, where we believe we can achieve leading
positions quickly. After a potential business model and target markets have been identified, we evaluate the
model based on its suitability for each region and decide whether development of a company executing the model
should be launched. Our launch process moves quickly without unnecessary bureaucratic decision making,
allowing us to make a launch decision in as little as one day if necessary.
Build. Once the decision has been made to launch a new business model, our company building follows
a highly standardized process, which allows us to take advantage of network effects and synergies across our
platform and network of companies, including learning curve effects. Our company building process is based on
the best practices that we have developed in the course of building and launching our current network of
companies and the commonalities that we have identified across the 20 business models on which we have built
companies to date. Our development process is driven by a standardized division between centralized and
localized processes in which we seek to keep our local presence lean and focused on physical implementation,
while our centralized functions provide the software and focus on the support of the new company. Our typical
standardized timeframe for the launch of a new company is 100 days from the decision to launch a new business
model. It is our goal that our new companies operate independently within 200 days.
Rollout and Scale. Once a new company has been launched, we focus on rolling out the business model
to emerging markets globally. We try to grow as quickly as possible with the goal of becoming a market leader in
the markets in which the company operates. We believe that our regional strength and the functional expertise of
the Issuers platform allows us to execute and expand faster than our peers. The Issuers platform and our
geographic footprint allow us in particular to orchestrate a rollout to many countries in parallel, while
independent start-ups typically engage in sequential rollouts.
Within each market, we focus on scaling and growing our companies to market leading positions. Our
growth culture is focused on the key principle of measure and optimize. We leverage very granular functional
reporting and benchmarking of our companies to identify the leaders in specific functions, such as customer
acquisition and customer relationship management. We share rankings to foster internal competition. Starting
97
from their launch, our companies are heavily involved in an ongoing process of reporting and optimization,
which is driven by the feedback of our centralized and localized groups. We also engage in a process of ongoing
market leadership review as we continue to scale our new companies, and have a well-defined and rigorous
process for shutting down companies that have not met expectations. We believe that we have consistently scaled
our companies more quickly than our peers, including conventional venture capital-backed start-ups, and that our
highly standardized business development process will continue to provide us with learning curve advantages
and synergies across our business development network.
Value Creation. We have historically created significant value for our shareholders. The Issuers
platform and our focus on proven models and underserved markets position us to reduce customer adoption risk
and competition risk, which allows us to focus mainly on mitigating execution risk. As we act as founders of our
companies, we are able to benefit from founder economics, which we define as securing relatively large stakes in
these companies on the basis of limited initial equity capital investments. These limited investment amounts
allow us to build and maintain a diversified network of companies. In addition, in the past we have been able to
abandon new companies that do not fulfill our expectations quickly without incurring significant losses.
The Issuer has invested in total approximately 0.1 billion in equity capital into our current network of
companies, and out of this we have created a total aggregated value of 2.2 billion
(1)
for the Issuer, which
represents the sum of the Issuers direct and indirect stakes in our companies and regional Internet groups (based
on the last financing rounds, including a financing round of Lamoda (solely subscribed by its majority owner
Bigfoot I), or secondary transactions, excluding the Global Founders Capital portfolio), after eliminating double-
counting, through the date of this prospectus. We believe that we have been able to create this value due to the
unique nature of the Issuers platform, which can be summarized as follows:
We take proven models into new markets to fulfill basic consumer needs online and mobile,
globally and mainly outside the United States and China
We are able to identify suitable business models and launch more than 10 new companies per year
on average.
We limit the business concept risk by taking proven basic consumer need business concepts to
underpenetrated markets.
Our companies target a significant share of the consumer wallet.
We have accumulated significant operational expertise that is embodied in our infrastructure,
processes and technology.
To master the complexity of our markets, we have built a unique Rocket Internet ecosystem.
We have a large network that allows our companies to benefit from synergies from being part of the
Rocket Internet ecosystem.
Our ability to bring new companies fast to the market positions us to be one of the first movers and
to benefit from leadership positions, economies of scale and higher margins.
A strong set of regional strategic and commercial partners provides us with local know-how, access
to distribution channels and capital.
We have a relatively low failure rate for companies that we have launched, with only
18 unsuccessful companies out of the 103 companies that we have started since 2007,
corresponding to 6% of the amounts invested by the Issuer. For purposes of these calculations, a
company is considered a failure if the last financing round valuation and/or exit proceeds are
more than 50,000 lower than the Issuers investment. While pure financial investments have been
included, intermediate holding companies and companies that were never operationally active have
been excluded. Some of the 103 companies that have been started were subsequently merged or
contributed to other companies.
The Issuers platform provides investors with access to founder economics, i.e., the Issuers initial
stake in a new company is high, while its investment is low.
Overall, we believe that our business model provides a unique combination of comparably low risk,
high capital efficiency and scalability.
(1) Unaudited. Calculated based on accounting and controlling records of the Issuer.
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Competitive Strengths
We believe that the following competitive strengths have driven our rapid growth and value creation in
the past and will continue to distinguish us in the future:
Leading Operating Platform for Identifying, Building and Scaling Proven Internet Business Models.
We believe that the Issuers unique operating platform positions us for rapid organic growth, and we have
repeatedly proven our ability to rapidly grow new businesses into market leading companies. By identifying
commonalities across different business concepts, the Issuer has systemized a platform approach to identifying,
building and scaling new companies. Typically, it takes us only around 100 days from the point at which we
identify a promising business model to the launch of a website and operating infrastructure and generation of the
companys first revenues. It typically takes us 200 days from launch to enable the company to run its day-to-day
operations independently. We have built a large, global network of companies conducting business in
116 countries. The Issuers platform allows us to launch more than 10 new companies every year. Because of our
operational experience and local know-how, we can launch companies in parallel across many markets, often
including emerging economies that present significant operational complexity but also substantial opportunities
for rapid growth. We have developed an impressive track record of repeated success in such markets.
Unique Geographic Footprint Positions us to Move Faster and Adapt Better. We have a unique
geographic footprint, with more than 20,000 employees on 5 continents across our network of companies, which
positions us to quickly rollout new business models on a global scale and adapt our offerings locally in order to
master the challenges of complex emerging markets. The Issuer provides our companies with significant
technological, operational and strategic support and guidance, allowing them to execute better and faster than
independent start-ups. As a result, we are typically able to capture the first mover advantage in the markets which
we choose to enter, and we have established market leading positions in a number of highly attractive Internet
markets worldwide. The complexity of the markets in which we operate and the positive network effects of every
additional company that we launch in our current markets increase barriers to entry and strengthen our
competitive situation relative to potential competitors. We believe that the complexity of the markets in which
we operate, as well as our lower marginal costs in launching new companies, will allow us to maintain our
market-leading positions in our target markets and obtain higher profit margins than our competitors in more
developed markets.
Proprietary Technology Platform and Offline Infrastructure Providing Our Network of Companies
with a Unique Advantage in Time to Market. We have made significant investments into the development of our
own proprietary technology to the extent we believe it provides a competitive advantage. In particular, we have
created a core technology platform for each of our three focus sectors, e-commerce (Alice), marketplace (Nico)
and financial technology (Yoda), which allows for a plug-and-play setup and launch of new businesses. Our
technology platform scales with the needs of our businesses and is easily adaptable to the specific needs of
individual companies and markets. As a result, our companies launch and operate with significant cost and speed
advantages relative to their competitors. Improvements to our technology platform are typically fed back to us by
our network of companies on a voluntary basis, which allows us to crowd source our innovation process and
incorporate key innovations into our central technology platform. We have also created highly granular analytical
tools to monitor overall business performance and key performance indicators which allow us to benchmark our
companies, identify best-in-class performance and share the resulting knowledge across our network of
companies. In order to support our technology platform, our companies have also developed significant offline
infrastructure to master the operational complexity of some of the markets in which they operate. For example,
our companies operate warehouses in more than 30 countries and provide directly or through partners customized
last mile delivery services already in more than 10 of them.
Leveraging the Power of Network Effects Throughout Our Network of Companies. We have a culture
of knowledge-sharing and cross-learning at all stages of development across our companies and the various
regions, functions and verticals, such as online fashion retail, in our network. Our culture of knowledge-sharing
allows us to unlock a virtuous cycle of synergy creation: the more companies we build, the greater the synergies
among them, the more competitive we become and the faster we can add new companies to our network. Our
companies also benefit from substantial commercial networking effects due to the size of the Issuers platform,
which allows them to more cheaply source products and services and more easily acquire new customers through
coordinated initiatives such as cross- and co-marketing.
Strong Strategic and Commercial Partners. Our strategic and commercial partners, such as mobile
telecommunication providers PLDT, MTN, ooredoo and Millicom, retailers Tesco and Rewe and internet service
provider United Internet, are invested in our success. These partners provide our companies with financing,
strategic and targeted operational support. Our mutually beneficial interactions with these partners create
additional value as we expand and generate strong network effects. For example, we expect that our long-term
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strategic partnership with PLDT will help us to significantly accelerate and grow our presence in the financial
technology sector. PLDT and we have many complementary strengths, which we expect to leverage in the
development of online and mobile payment solutions in emerging markets. Another example is our partnership
with MTN, which allows us to reach a large number of people through pre-installed apps on smartphones sold by
MTN. In addition, the Issuer has entered into framework agreements with leading global technology companies,
such as Criteo, Google, Facebook, Rackspace, Responsys and Salesforce, to complement our technology
platform and provide our network of companies with competitively priced, state-of-the-art technology, online
advertising and other services on the basis of framework agreements. Due to the purchasing volume of our
network of companies, the Issuer has obtained favorable commercial terms from these providers, such as
discounts on list prices, extended payment terms, improved service levels through a single point of contact for all
of our companies, dedicated key account management and favorable termination provisions. The same terms
typically apply to all of our companies, regardless of their maturity or regional footprint, which allows all of our
companies worldwide to benefit from the same speed and quality when they work with these global technology
companies.
Proven Access to Funding from Our Investment Partners. We have strong partnerships with a large
group of investors. In total, we have raised more than 2.8 billion in equity capital or capital commitments in
numerous financing rounds from a large number of investors on the level of our companies and holding companies
in order to finance the growth and operations of our companies. The investors in our network of companies include
Internet sector specialists such as DST, Holtzbrinck Ventures, NEA, Phenomen Ventures and Summit Partners;
financial investors such as Fidelity Investments, IFC, certain funds attributable to J.P. Morgan Investment
Management Inc., Ontario Teachers Pension Plan, Putnam Investments and Verlinvest; strategic investors such as
PLDT, MTN, ooredoo, Millicom, Tesco, Rewe and Tengelmann; and high net worth individuals and family offices.
In addition, the Issuer has received significant equity capital funding from its long-term partners, Kinnevik and
Access Industries, who have also made significant investments in our network of companies, and United Internet.
Experienced and Committed Leadership Team with Highly Relevant Knowledge and Skills and
Strongly Aligned Incentives. We are led by a high-caliber management team. The Issuers CEO and co-founder,
Oliver Samwer, has more than 15 years of successful Internet entrepreneurial experience across many business
models. Our global organization consists of a functional leadership team that focuses on building successful
Internet businesses, which provides us with a key advantage relative to venture backed start-ups. In addition, we
have regional leadership teams for Latin America, Africa, the Middle East, Asia Pacific and India that provide
local know-how and operational support for our new companies and separate leadership teams for each business
in order to accelerate the rollout of business models in those regions. We carefully select managers for our
companies and the Issuer with outstanding analytical skills from dynamic backgrounds, such as management
consulting (e.g., McKinsey, Boston Consulting Group), investment banking (e.g., Goldman Sachs), private
equity, leading Internet and technology companies (e.g., Amazon, ebay, Google, Microsoft) and media and
consumer goods companies, as well as from leading business schools (e.g., Harvard, Stanford). Our management
participates directly in our development through various equity incentive plans.
Significant Track Record of Value Generation. We have a proven track record of building successful
Internet businesses. By leveraging the Issuers platform and the network effects across our companies, and by
acting as founders, we believe that we are able to achieve significantly better economics across our network of
companies than those companies founded by venture capital firms. The Issuer secures a high ownership stake in
our new companies on the basis of limited initial investments and subsequently brings in additional outside
equity capital at far higher valuations. The Issuer has invested in total approximately 0.1 billion in equity capital
into our current network of companies, while creating a total aggregate value of 2.2 billion
(1)
for the Issuer
(based on the respective latest financing rounds or secondary transactions, excluding the Global Founders Capital
portfolio). While a large portion of our value creation has not yet been realized, the Issuers shareholders have
already participated in the value we have created, for example through the Zalando Spin-Off in 2013, the sale of
Citydeal to Groupon, Inc. or the sale of Ladenzeile to Axel Springer. For more information on the Zalando Spin-
Off, see Certain Relationships and Related-Party TransactionsZalando Spin-Off. We also have a proven
track record of successful exits from our companies through sales to strategic buyers in cash or share deals.
Strategy
The Issuer strives to become the worlds largest Internet platform outside the United States and China.
The key elements of the Issuers current strategy include:
Master the Complexity of Our Markets and Localize Across Every Dimension. We embrace
complexity. Our target markets are very complex due to the lack of infrastructure, differing requirements for
(1) Unaudited. Calculated based on accounting and controlling records of the Issuer.
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logistics, suppliers and sourcing arrangements, specific requirements concerning payment methods, challenging
legal and tax systems and demanding customer acquisition processes. Together these factors create high barriers
to entry for these markets. However, if we overcome this complexity, we believe that there is a reward in terms
of superior economics, higher market share due to less competition and higher bargaining power. Therefore, we
intend to continuously evolve from an Internet company into a business with a larger span of the value chain by
adding logistics and infrastructure capabilities. We have accumulated significant operations and logistics
know-how and have developed proprietary assets across many of the steps of our value chain. For example,
Jabong has developed a proprietary assortment of products (private label), proprietary warehousing and
proprietary technology. We seek to further leverage this know-how and the solutions developed by companies in
our network in order to continue to cover an increasing share of the value chain across our network of companies.
Cover a Large Share of the Consumer Wallet by Leveraging the Mobile Ecosystem to Benefit from
the Smartphone Revolution. Our companies are active in a large number of sectors, covering a significant
portion of a consumers online retail and services wallet via a multitude of different business models. With our
mobile apps, we seek to own the mobile homescreen in emerging markets. To achieve this, we continue to
leverage our strong strategic partnerships with some of the largest mobile telecom operators in our focus regions.
These partnerships provide us with access to a mobile subscriber base, SMS marketing capabilities, significant
physical distribution networks and billing relationships. Most importantly, these operators provide us with pre-
installs of our mobile apps on their smartphones. We currently plan to continue our active dialogue with the
editorial teams of Apples and Googles large mobile app stores and aim to have our apps featured regularly. We
also aim to be first movers that leverage key mobile consumer trends, such as the growing popularity of
messaging applications.
Grow our Existing Network of Companies. We currently intend to expand the size and scope of our
network through six targeted growth initiatives designed to support our objective of owning the largest possible
share of consumer spending in our markets.
Grow Our Existing Companies. We will continue to develop and market the value proposition that
the companies in our network offer to their customers. In order to grow our companies, we plan to
continue to enhance the user experience and to promote brand awareness, including through
targeted marketing initiatives. The increased brand awareness will position our companies to direct
more traffic to their websites, which will help them to increase monetization. Higher customer
numbers will allow our companies to broaden their offerings, including through the attraction of
more sellers with respect to our marketplace companies.
Expand Country Coverage. While our companies conduct business in 116 countries in the
aggregate, the regional coverage of our individual companies is often more limited. We currently
intend to increase the geographical reach of our individual companies by leveraging the presence of
our network of companies throughout our target markets and the expertise and strategic support of
our local partners.
Build New Business Models within our Current Sectors. We are currently primarily active in three
focus sectors: e-commerce, marketplace and financial technology. We constantly look for
additional proven business models that satisfy basic consumer needs online. We currently plan to
broaden our presence in these three focus sectors by launching more than 10 new companies each
year. In addition, we currently intend to broaden the offerings of our companies targeting
smartphone and tablet users.
Increase our Sector Coverage. We are also constantly looking into the development of new sectors
that would allow us to convert offline offerings of consumer products and services into online
business models or allow customers to leapfrog the development of corresponding offline offerings,
particularly in emerging markets. A fourth focus sector we have already identified is the sector of
mobile urban on-demand services. All companies in this sector make living in urban cities easier.
The growth of businesses in this sector has only become possible recently due to the significantly
increased penetration of smartphones with GPS and push notifications. These models work best in
densely populated areas and the services are often time and location bound. They show elements of
vertical integration towards logistics and with or without aggregation of the supply side. Our newly
launched concept company Spaceways, a next-generation self-storage company that collects,
stores and redelivers customers items, is the first company in this new sector. We expect more
companies to be launched in this segment in the second half of 2014 and throughout the next years.
Benefit from Strong and Increasing Network Effects Across Our Platform and Our Network of
Companies. We have built a large and geographically diverse network of companies. Our
companies conduct business in 116 countries on 5 continents. We aim to launch more than 10 new
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companies per year. The size of our network of companies and their different stages of
development provide our companies with an unprecedented opportunity to benefit from synergies
and network effects across four dimensions: sourcing, knowledge sharing and crowdsourcing,
customer acquisition, and talent attraction. In addition, we believe that our growth strategy
positions us to benefit from significant additional economies of scale and network effects. The
larger our network, the more our companies benefit from these network effects. They may partner
in cross-company loyalty programs, share data for cross-company customer behavior analytics,
utilize our proprietary payment infrastructure, profit from our display advertising network and
leverage the global purchasing power of our network in negotiations with suppliers.
Build New Companies Based on Network Effects. As our network grows, we will be able to build
companies based on the network effects among our companies. We may, for example, decide to
build advertising, payment, big data and analytics companies that initially serve our own companies
and then also third parties.
Retain Majority Ownership in New Companies, Increase Stakes in Emerging Stars. The Issuer
typically owns directly or indirectly 80% to 90% of our companies at the time of launch, with the remainder set
aside for management equity participation. In subsequent financing rounds, we bring in external equity financing,
which is provided by our local strategic partners and strategic and financial investors, including existing
shareholders of the Issuer. These investments are either made directly into the company or indirectly into an
intermediate holding company or regional group holding company. Historically, this has meant that the direct
and indirect stakes of the Issuer in a company has decreased over time to less than 50%. Accordingly, the Issuer
does not directly or indirectly control most of our companies. Going forward, the Issuer seeks to retain a larger
share of the absolute value creation, and therefore the Issuer currently intends to maintain beneficial ownership
stakes in most of our new companies of at least 50% and control more of our companies, resulting in their
inclusion in the Issuers consolidated financial statements. With the proceeds from this offering, the Issuer plans
to extend the period over which it provides funding to our new companies and consequently increase the absolute
amounts it invests in each of our companies using its own funds. Accordingly, we expect that we will bring in
third-party equity capital only at a later stage and that the Issuer will therefore participate more significantly in
the development and value creation of our new companies. Further, the Issuer currently intends to provide
additional equity capital to some of our emerging stars or to purchase additional stakes in secondary transactions.
Pursue a Balanced Strategy of Continued High Growth in Combination with Improved Profitability
Over Time for Our Proven Winners. We generally aim for our companies to reach break-even on EBIT level
within 6 to 9 years after launch of the company. We believe that the typical e-commerce sector gross profit
margin for businesses in the fashion, home & living and food subscription markets amounts to 40-55%, based on
an analysis of publicly available information of a selection of peer companies. The typical sector EBIT margin
for these businesses amounts to 7-12%. Our companies in these business areas typically target the higher end of
the sector margins, with our food company Hellofresh aiming at a higher gross profit margin and EBIT margin
than the sector range due to the subscription business model. For general merchandise businesses, we believe that
the typical sector gross profit margin amounts to 25-30%, while the typical sector EBIT margin amounts to
4-6%, based on an analysis of publicly available information of a selection of peer companies. Our general
merchandise companies aim to blend the general merchandise model with the marketplace model, which is
typically characterized by higher margins than traditional e-commerce general merchandise, thus positioning our
general merchandise companies to outperform their pure e-commerce general merchandise peers.
The Issuers Platform
The Issuer has built a large and geographically diverse platform. Our websites allowed us to conduct
business in 116 countries as of July 1, 2014, and our companies had a total of more than 47 million fans on
Facebook. More than 339 million keywords are covered by our search engine advertising, helping us to direct
traffic to our websites. Our websites have recorded more than 5.3 billion visits since January 2011. Twenty-eight
percent of these visits originated from mobile devices.
We believe that the Issuer has developed the first platform to systematize the process of identifying,
building and scaling Internet companies around the world. The Issuer seeks to identify commonalities within
different business models and leverage these via a platform approach to optimize the building and scaling
process. The Issuers platform rests on four pillars:
infrastructure;
processes;
technology; and
network.
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Infrastructure
The first pillar of the Issuers platform is our infrastructure. Our infrastructure positions us to achieve
economies of scale and scope for our companies, to realize synergies that improve the performance of our
companies and to increase barriers to entry for potential competitors. We believe that there is no other Internet
company with as many people on the ground in our target regions as us. The following chart shows the
significant size and geographic reach of our employees active in our network of companies.
Singapore
London
Berlin
2,800+
5,800+
Paris
Sao
Paulo
Dubai
New Delhi
Lagos
3,000+
6,300+
2,100+
Countries of Operations in:
# Headcount
Europe
Russia & CIS
Asia Pacific
Latin America
Africa & Middle East
Local Offices
Source: Issuer information.
We believe that our more than 20,000 people on the ground in 5 regions across our network of
companies provide us with strong competitive advantages and create significant barriers to entry for potential
competitors in our target markets. The presence of our companies and people in our target markets lead to lower
marginal costs for building additional companies due to a local learning curve and positive network effects. Our
local professionals provide us with the ability to scale our companies more quickly and to identify opportunities
faster than our competitors. In the process of doing so, we have accumulated significant Internet know-how and
substantial local operations and logistics know-how, particularly in the fields of marketing, warehousing, content
production, sales, last mile delivery, payment and customer care. This knowledge, when coupled with our speed
of execution, allows for better results, helps us create competitive advantages and, as a result, significant barriers
to entry through our ability to rapidly start and grow our companies in markets worldwide.
Early entry in many of our target markets has allowed us to benefit from first mover advantages and
network effects. Our size and geographical footprint allows us to have on-site teams from the start of our
operations, providing us with a better understanding of the unique opportunities and challenges of our local
markets. In addition, partnerships with regional and global leaders have given our companies a unique
competitive edge by allowing us to leverage their existing capabilities and establishing a local ecosystem that can
be utilized by all our companies.
Our central and local infrastructure is based on four pillars:
our functional experts;
our regional leaders;
our entrepreneurs; and
our strategic partners.
Our functional experts provide our organization with central technology, marketing, product, customer
relationship management, business intelligence and business development support. In addition, they provide
operations, finance, public relations, human resources, legal and security services. Regional leaders coordinate
our activities in our five target regions, and entrepreneurs co-found and head our companies. These teams are
operationally most involved in the company building phase, i.e., in the first 200 days from idea generation to
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defining and implementing the system landscape, recruiting, training and onboarding permanent teams and
handing over the operational day-to-day management to the permanent team of each new company. Thereafter,
their responsibility shifts to functional key performance indicators controlling, best practice management and
knowledge sharing. Specific share or stock option grants in the companies that are supported by our functional
teams are designed to support their long-term incentivization.
Regional leadership teams coordinate our activities in six target regions (Latin America, Africa, India,
Middle East, Africa and Asia Pacific) and support the companies through the local ecosystem. We have set up
regional Internet groups in Africa, Asia Pacific, the Middle East and Latin America in order to bundle local
market and business model insights, facilitate regional strategic and commercial partnerships, enable local
recruiting and sourcing and accelerate the regional rollout of our business concepts. Long-term incentives for our
regional leaders are provided through shares or stock options in the companies in their regions.
Each company is run by an independent leadership team, which we refer to as entrepreneurs,
co-founders or managing directors. They are recruited locally or globally and typically have entrepreneurial
general management profiles with excellent analytical backgrounds. Their role is to head our companies from
concept stage through proven winner stage. In most cases these co-founders have been recruited by us for each
new company. Long-term incentives for our entrepreneurs are provided through shares or stock options in the
companies they manage.
As a fourth and last pillar of our global infrastructure, we also profit from strategic partners, such as
telecommunications and internet providers (United Internet, PLDT, MTN, ooredoo, Millicom), retailers of
consumer goods (Tesco, Rewe, Tengelmann, Kering) and financial investors (Kinnevik, Access Industries and
Holtzbrinck). These partners have made significant investments in our companies and regional Internet groups.
Accordingly, they are strongly incentivized to support our regional or vertical rollouts. They provide us with
extensive operational and strategic support. For example, our partnerships with telecommunications providers
position us to benefit from billing relationships, their physical distribution network, their mobile subscriber base,
SMS marketing capabilities, local customer relationship infrastructure and pre-installations of our mobile
applications on handsets distributed by the telecom operators. In turn, these telecommunications providers
benefit from our participation, as the companies in which they invest get access to our proprietary platform, our
network of companies, our last mile delivery infrastructure and benefits from our execution experience. Further,
these telecommunications providers are able to provide their customers a broader content range. On top of this
we manage a large network of operational partners and suppliers in order to reduce complexity for our companies
and on the other hand negotiate better terms and service levels on behalf of our network of companies.
Processes
Our business development process focuses on launching proven Internet business concepts into new,
underserved or untapped markets in order to address basic consumer needs online. Unlike traditional business
development processes in which customer adoption risk is high due to the development of new concepts in
existing markets, the goal of our business development process is to launch existing concepts into new markets,
which minimizes customer adoption risk and allows us to focus nearly entirely on managing the execution risk of
launching the existing concept.
To accomplish this goal, our business development process proceeds in four core steps: identifying
existing Internet business concepts and potential target markets, building companies to implement them, rolling
those companies out globally and then scaling them into market-leading businesses.
Identify
The first step of our business development process is to identify proven Internet business concepts and
potential target markets. In order to identify suitable business concepts, we consider three questions:
One, is the business concept proven? We look for business concepts that have significant or fast
growing net revenue and transaction run rates.
Two, is there a window of opportunity? We look for business concepts that are suited to our target
regions (Europe, Latin America, Africa, the Middle East, Asia Pacific and Russia), fit the consumer
habits in these markets and do not already have proven peers or well-established local competitors
in those regions.
Three, can we leverage our strengths? We look for business concepts that play to the strengths of
our platform and experience: a clear revenue model from day one, with systemic supply and
demand side growth potential and sufficient supply and demand side fragmentation; the potential
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for a country-by-country rollout based on a strong local footprint; independence from intellectual
property or license requirements; the opportunity to scale demand through paid advertising; a
strong business-to-consumer focus.
Once a business model has passed through our initial analysis, we then verify potential business model
candidates with a structured business case analysis based around forecast profit and loss, unit economics and
required investments and resources. Then, we seek to identify target regions, countries and cities, carefully
selecting countries and sometimes cities with limited competition. Business models that pass this analysis are
then subject to a final review by our launch committee during which the business model is evaluated and voted
upon by central management members and leaders from the regions.
Build
Once the decision has been made to launch a new business concept, our company building follows a
highly standardized process, which allows us to take advantage of our experience and learning curve and to
benefit from operational leverage and synergies across our platform and network of businesses.
Our company building process is based on standardized practices that we have developed in the course
of building and launching a large number of different companies. We have bifurcated the division of labor of our
company building process into two parts. The first, the centralized process, involves our product and user
experience, engineering, customer acquisition, customer relation management (CRM), business intelligence,
legal and finance teams, which are focused on website and application design and development of marketing
channels, CRM tools and data warehouses, as well as legal entities, brands and accounting associated with the
new company. The second part, the localized process, involves our local operations, sales and customer care
teams, which are focused on our local operations management systems, sales and business development
processes and local call center and support. The entire building process follows a standardized sequence of
activities aiming to keep the process within our standardized timeframe. Throughout this process, our central and
local human resources teams engage in continuous recruiting of central and local founders and managers who
will manage the new company.
As a result of our company building process, we are positioned to launch a new company within
100 days, and our goal is for our new companies to operate independently within 200 days. For example, our
company Helpling was launched in Germany in less than 80 days, and was live in four additional countries,
Austria, France, the Netherlands, Sweden, in less than 150 days after kickoff of the building process. The
following graphic shows the timeline for Helplings launch.
LAUNCH
June 2: LIVE in
Sweden
U C
May 28: LIVE in
the Netherlands
May 27: LIVE in France
Apr 30: LIVE in Dsseldorf, Frankfurt & Stuttgart
May 21: LIVE in Austria
Feb 18: Head of
Mar 29: LIVE in Germany
Mar 30: First Apartment in Berlin Cleaned
Apr 10: LIVE in Hamburg, Munich & Cologne
1 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160
Jan 10: Decision to Launch Helpling
Jan 20: Founders Join
Feb 18: Head of
Operations Joins
Days
Source: Issuer information.
Rollout
Once a new company has been launched, we focus on rolling out the business concept to emerging
markets globally. We seek to first prove a business concept in a mature market and then transfer that proven
concept to underserved, high-growth emerging markets, such as India, Russia, Indonesia, Nigeria and Brazil, in
parallel in order to grow as quickly as possible and to become a market leader in these markets.
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The regional strength and functional expertise of the Issuers platform allows us to quickly and
successfully rollout our companies globally. Unlike standalone startups, which often grow globally in sequential
fashion, i.e., expanding only in one country at a time, the Issuers operational platform positions our companies
to enter a number of new markets in parallel. For example, our company Zalora spread across eight countries in
188 days, starting with Australia and then moving to Malaysia, Singapore, Thailand, Indonesia, Vietnam, the
Philippines and finally Hong Kong, and our recently launched company foodpanda is already present in 40
markets across our seven target regions, while our Kaymu consumer-to-consumer marketplace has been rolled
out to more than 20 markets. We believe that we have consistently expanded our companies more quickly than
our peers and that our highly standardized business building process will continue to provide us with learning
curve advantages and synergies across our network of companies.
Scale
As the rollout of a new business concept continues, we also focus on scaling that model within its target
markets to market leading positions. Our growth culture is data, metrics and learning driven. From launch on, our
companies are focused on reporting and optimization, which is driven by the input of our centralized and
localized groups. We collect a large amount of data from our companies, making our companies very transparent
for us. We share benchmarkings with our companies in order to generate healthy internal competition.
Several factors help drive the success of our reporting and optimization process. First, all of our
companies start from day one with comprehensive analytics based on key management indicators across all of
their business functions, and this information is automatically made available to all the companies in our
network. Because our companies are established with a strong focus on key management indicator reporting and
benchmarking, we are able to rapidly implement data driven performance optimizations, such as adapting
customer acquisition cost (CAC) to the expected customer lifetime value (CLV) and reducing website load
time in order to increase customer conversion rates.
We focus on minimizing CACs and maximizing CLV. We use the key management indicators generated
by our automated reporting to gauge important trends such as the development of our customer retention, the
marginal profits of our transactions, the value of our customer relationships, the cost to acquire a customer and
our position vis--vis competitors in the market.
For all of our companies, we seek to minimize CAC through search engine optimization, automated
optimization and standardization of online marketing, rapid entry into new marketing channels (e.g., messaging
apps), and ecosystem partnerships. For example, we have developed a robust process designed to increase the
chances that our apps are featured in online app stores, and have also secured preinstalls on millions of
smartphones shipped around the world, with several million preinstalls planned until the end of 2014. We have
also partnered with messaging apps which can serve as powerful customer acquisition channels in our markets.
We use a similar process to increase CLV and customer repurchase rates, and focus our processes on
key factors, including CRM automation, net promoter score (NPS) tracking and overall operational
improvements, onsite personalization and systematic inventory management. As a result of our efforts, our
proven winners are among the market leaders in their target markets.
In addition, we also follow a rigorous process to shutdown unsuccessful companies when necessary.
This process is based on ongoing market leadership review as we continue to scale our new companies. In
monthly company reviews we evaluate all companies that have been launched in the last six to twelve months on
the basis of three questions. One, is the company, or is it possible for the company to be, number one in its target
market? Two, is the distance between the company and its closest competitor in the target market increasing over
time? Three, are the unit economics of the company improving over time?
We also manage our investment risks for our companies by subjecting them to tight financial controls.
Each local operating entity submits monthly funding requests in which they explain and justify the intended use
of the requested funds for the following month. The company then evaluates the funding request, compares the
local operating entitys actual performance in the past month with its planned performance, typically consults
with the Issuer and determines whether the funding request is in line with future needs. Based on the difference
between planned and actual performance, the requested funding is then approved or adjusted.
Scalable and repeatable processes are at the heart of our platform. By systematizing and optimizing our
business development process, we believe that we have created the leading platform for identifying proven
business concepts and potential target markets, building the companies to implement those concepts and then
rolling out and scaling those companies globally. Together with our infrastructure, technology and network, these
processes form the foundation for our consistent operational financial performance track record.
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Technology
Our technology strategy is focused on six key concepts:
We build proprietary technology where it provides us with a competitive advantage.
We give our companies 100% ownership of the technology.
Our architecture is highly modular and device independent.
We use commodity platforms and tools when available.
We unlock the power of crowdsourcing and of research and development.
We focus on the 5S: speed, stability, security, scalability and standardization.
Our technology platform is based on three proprietary core platforms, e-commerce, marketplace and
financial technology, or fintech. These platforms provide the essential elements of our technology platform and
can be easily adapted to the specific needs of our companies.
We strive to provide our companies with a robust, scalable platform that can address their complete
business cycle needs. We provide our companies with plug-and-play solutions so they can focus from day one on
their business.
Our e-commerce platform, named Alice, is used by most of our e-commerce companies, in total more
than 40 websites and applications including Jabong, Jumia and Zalora. We have developed our e-commerce
platform through a holistic approach that aims to integrate the three components that are relevant for an
e-commerce company, namely development of an Internet company, development of a logistics company
through order and warehouse management models and finally development of an infrastructure company that
covers the entire e-commerce value chain including last mile logistics.
Our marketplace platform, named Nico, is used by more than 70 of our websites and applications,
including Carmudi, Kaymu and Lamudi. Our marketplace platform involves an omni-channel approach, allowing
users to serve marketplace offerings in a variety of different environments, and also provides an application
programming interface (API) for mobile apps.
Our third core platform is our fintech platform, named Yoda, which is used to power most of our
financial technology companies. Seven different websites take advantage of our fintech platform, and our credit
scoring API allows for integrated connections with international credit scoring providers.
In total, a significant amount of time has been put into the development of our technology platform,
which we believe provides us with a strong competitive advantage. In our development process, we typically
focus on building mobile technology, such as native apps and mobile websites, together with desktop versions. In
order to be in a position to measure our performance, we seek to segment important key performance indicators
into mobile and non-mobile websites. In our improvement process, we often think about new features and
improvements to the mobile experience first and then seek to integrate the changes into our desktop technology.
Our open source approach allows the companies to make improvements and adaptations to the
technology. Our platform is designed so that any improvements made by individual companies can be easily
incorporated into the core platform if the company decides to share them with us. This positions us to spread the
benefits of these developments rapidly across our network of companies, and allows us to decentralize parts of
our research and development efforts.
We have also developed a series of proprietary modules that our companies can integrate with our core
platforms in order to extend their functionality. These additional proprietary modules include data warehouses,
CRM automation, warehouse management, payment integration, marketing optimization and fleet management.
We have also developed backend processes to help manage catalogs, orders, customer service and content.
Our core platforms are designed to allow the integration of modules and technology of our external
solutions providers, such as Amazon web services, Salesforce and Akamai. Due to the size of our network of
companies, we are able to negotiate framework agreements with our external solutions providers in order to
provide our companies, independent of their development stage, preferential access to third party technology at
favorable rates. These framework agreements fix the pricing, termination and payment terms and service levels
for a large number of our companies globally that have agreements with these partners. In addition, the
framework agreements often grant preferred access to customer executives, allowing in particular young
companies to enjoy much more direct access than what would be typical for young companies of their age and
size. As of the date of this prospectus, we have framework agreements with Google (advertising solutions),
Facebook (advertising solutions), Responsys (direct marketing solutions), Sociomantic (advertising solutions),
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Criteo (advertising solutions) and many other partners. The framework agreements position the companies in our
network to use the same provider, which reduces complexity in our network, simplifies the company building
process and facilitates knowledge sharing across our network.
In the development of our technology, we focus on speed, stability, security, scalability and
standardization. Speed means that we optimize our technology for very fast user response times under high
traffic. Stability means that we seek to limit downtime per month. Security means that we implement central
security policies and best practices from the start. Scalability means that we design our technology with a view to
scaling it to millions of users (vertical scalability) in 100 or more countries at low average cost (horizontal
scalability). Standardization means that our companies follow a standard set of proven design and operation
principles. Our standard team setup for the first 200 days consists of a product manager and a tech lead, which
are responsible for overseeing a systems engineer, three to six developers and a quality assurance engineer. Our
development teams use proven toolsets, including the Kanban development system and automated tests and
releases. Our centralized development team also provides ongoing technical services to our companies at a rate
that is designed to reflect our costs. The Issuer generally recoups its overhead related to technology and other
expenses by charging our companies for these services.
Our technology platform enables us to launch more than 19 new country websites per month. In
addition, we believe that our proven technology platform provides us with a strong advantage in positioning us to
rapidly scale and grow our companies globally.
Rocket Network of Companies
We have built a large and geographically diverse network of companies. Our companies conduct
business in 116 countries on 5 continents. The following graphic shows our significant geographic footprint and a
selection of the companies in our current network of companies.
Source: Issuer information.
In addition to our largest and most mature companies, which we refer to as proven winners, and our
growing companies that have already achieved a significant size, which we refer to as emerging stars, we target
to launch more than 10 new business models per year. For more information on proven winners and emerging
stars, see Our Companies. The size of our network of companies and their different stages of development
provide our companies with an unprecedented opportunity to benefit from synergies and network effects.
Sourcing. The more companies we have in our network and the larger they are, the greater our overall
purchasing volume and negotiating power. For example, the Issuer has negotiated global framework agreements
with our key technology and advertising partners. These framework agreements fix the pricing, termination and
payment terms and service levels for our companies that have entered into agreements with these partners. In
addition, these framework agreements often grant preferred access to customer account managers, allowing in
particular our younger companies to get more direct access to our partners than what would be typical for
companies of their size and age. The same is true for our private label collaboration among our fashion
companies.
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Knowledge Sharing. We have a strong culture of knowledge sharing. Overall, we are a knowledge-based
organization that spreads knowledge centrally and locally in a systematic way on a daily, weekly and monthly basis.
Institutionalized knowledge sharing takes place at various levels, as depicted in the following chart.
Knowledge Calls
for key functions, including 1st, 2nd
and 3rd level experts of companies
Fashion
...
Europe
Russia
&
CIS
Email lists
for all models (fashion@rocket etc) and
functions (marketing@rocket etc.)
Regional Workshops
Connecting all companies within a
region physically
C2C
(1)
Market-
place
Latin
America
Best Practice Guidelines
for all functional topics shared with
and improved by all Rocket companies
Food
Delivery
Africa &
Middle
East
...
Health Checks
Week-long focus reviews of individual
functions at companies by central team
Marketing
CRM
...
Benchmarking
Weekly and monthly league tables for
all functions, comparing all companies
TECH
FOR EACH
MODEL
ACROSS
FUNCTIONS
FOR EACH
REGION
Asia
Pacific
KNOWLEDGE
SHARING
AT ROCKET
FOR EACH
FUNCTION
ACROSS
COMPANIES
...
Source: Issuer information.
(1) C2C stands for consumer-to-consumer.
We share knowledge within our network of companies along four dimensions:
Vertical knowledge sharing;
Functional knowledge sharing;
Regional knowledge sharing; and
Global knowledge sharing.
Knowledge sharing starts within the same business model. Our significant global footprint positions us
to share lessons learned among those companies of ours that operate based on the same business model, often on
a daily basis. This knowledge transfer is effected on the basis of detailed cross-country data and peer
comparisons.
Knowledge sharing also takes place across companies on a functional level, such as among various
marketing, technology and CRM groups. To this end, we maintain best practice guidelines, which we regularly
revise based on input from our companies. Dedicated e-mail lists also allow for the rapid exchange of ideas and
new developments.
Knowledge is also shared among all our companies that are active in a specific region, such as Latin
America. We often organize regional workshops in which representatives of our companies can connect
physically and exchange insights and best practices regarding their local markets.
Globally, knowledge is shared directly between our companies and via the Issuer on a daily, weekly and
monthly basis across business models, companies, and regions. Often management teams reach out directly to
other companies management teams based on the peer comparisons they regularly receive from our
headquarters. In addition, we foster knowledge sharing across our companies and the 116 countries in which we
conduct business through global workshops and global conference calls on specific topics.
With respect to our technology, improvements made locally by one of our companies to our technology
are often fed back and integrated into our centralized platform, leading to a constant user-driven improvement of
our technology.
Cross Marketing. The scope of our network allows our companies to benefit from significant cross
marketing opportunities. For example, we frequently cross market the offerings of our companies in the same
region by linking their websites to each other and encouraging customers to take advantage of their different
services. In addition, our companies leverage offline cross marketing opportunities, such as the placing of printed
advertising materials in shipments ordered from another company in the same geographic area. Our companies
can also profit from common marketing e-mails.
Talent Attraction. The larger our network grows, the more opportunities we see to attract top talent.
This development is driven by our global reach and brands, our entrepreneurial decision making process, our
109
strong reputation, a variety of challenges inside our organization, attractive advancement options and our team
spirit. Our size and scale position us to attract talent that a standalone start-up would typically not be able to
attract. We also have a significant internal labor market, providing our employees with various options to utilize
their skills and knowledge over the course of their career.
Further Areas. Our network positions our companies to cooperate in a large number of other areas, such
as warehousing, last mile logistics and joint software development.
Overall, we believe that we have evolved into a network of companies that is positioned to own the
mobile homescreen in emerging markets.
Sectors and Verticals
Our companies are primarily active in three focus sectors, e-commerce, marketplace, or fintech. In each
of these three focus sectors, we have companies based on different business concepts (which are also referred to
as verticals). The following chart provides an overview of our sectors and verticals.
Source: Issuer information.
We also group our companies based on the value of their last financing round and the maturity of their
business concept, i.e., proven winners, emerging stars, concepts, strategic participations and other investments.
Proven winners are our largest and most mature companies. They typically show a last financing round
valuation of more than 100 million and have a track record of at least two years or more than 50 million in
revenues. Eleven of our e-commerce companies are included in this category, including Dafiti, Lamoda and Zalora.
Our emerging stars companies are typically smaller than our proven winners. They have completed a
financing round beyond the seed funding, generate revenue and have measurable key performance indicators that
show significant growth. Nine of our companies are grouped in this category, including foodpanda and Helpling.
Four of these nine companies are based on marketplace business concepts.
Concepts are companies that are currently in the process of being launched or in the seed financing
stage. Businesses in this segment include Spaceways and EatFirst.
While the Issuer holds a number of its stakes directly, a significant portion of the Issuers stakes is held
indirectly via regional Internet groups and intermediate holding companies. Leading mobile telecommunications
operators in Africa, Asia, Latin America and the Middle East with a strong presence in the relevant region are co-
investors in our regional Internet groups and are important commercial and strategic partners for our regional
Internet groups.
The following sections provide an overview of our three focus sectors.
E-Commerce
Our e-commerce companies sell mostly physical retail products to customers online and deliver these
products to the desired destination, thus typically requiring the company to procure, stock and ship the products
110
sold. Our e-commerce companies engage in fashion retail (e.g., Dafiti, Lamoda, Zalora), general merchandise
retail (e.g., Lazada, Linio, Jumia) or home and living (e.g., Home24, Westwing). Some companies deliver
groceries as subscription or sell office supplies, and we also have companies that are active in online printing.
We are in the process of broadening the offerings of our e-commerce companies by increasing the listing of
offerings from third parties on their websites.
We believe that the e-commerce sector will grow significantly over the next years. E-commerce sales in
our regions are forecast to increase from US$219 billion in 2010 to US$603 billion in 2018, corresponding to a
cumulative annual growth rate of 13.5% (Source: Euromonitor, Retailing and Internet Retailing by Country,
2014). The growth is expected to be based on an increasing e-commerce penetration rate, which shows the share
of e-commerce in the overall market. The e-commerce penetration rate is forecast to increase significantly in our
regions from 2.6% in 2010 to 5.1% in 2018 (Source: Euromonitor, Retailing and Internet Retailing by Country,
2014), positioning our companies to capture a larger share of wallet.
Marketplace
Our marketplace companies act as intermediaries where a fragmented supply side of sellers offer their
services or products to users or list services or products from selected suppliers. Marketplace companies neither
stock the products nor provide the services themselves that are listed on their website. Accordingly, they do not
run an inventory risk, and they benefit from comparatively low capital requirements. We believe that we are
experiencing a strong shift in customer behavior from offline to online in our regions in a large number of market
segments. We believe further that our network positions our marketplace companies to build up a large and high
quality base of sellers or service providers, which is one of the major challenges posed by marketplace business
models. Our infrastructure processes, technology and network position our companies to grow faster than their
competitors, which is highly important as market leading companies often benefit from substantial economic
advantages, and to progress towards profitability quicker than their peers.
Our marketplace companies operate based on a large number of business concepts, including
automotive classifieds (Carmudi), bus tickets (Clickbus), consumer-to-consumer offerings (Kaymu), food
delivery (foodpanda), home services (Helpling) and taxi hailing (Easytaxi).
Financial Technology
Financial technology companies enable the intermediation of payment and finance between parties be
it business-to-business, business-to-consumer or consumer-to-consumer through Internet and/or mobile
devices. For example, our company Lendico is a peer-to-peer provider of personal loans that connects private
borrowers and investors as an alternative to traditional banking.
We believe that both mature as well as emerging markets offer significant opportunities in this segment.
Banking and payments infrastructure in the emerging markets is largely underdeveloped and expensive and
incumbents are not focused on enhancing customer experience and are not capitalizing on opportunities created
by the digital revolution. While only 10% of the population of the United States does not have a bank account
(Source: PBS Report, 2014), the corresponding ratios are 90% for Pakistan (total population: 183 million), 80%
for Indonesia (total population: 248 million), 70% for Nigeria (total population: 169 million) and 65% for India
(total population: 1.24 billion) (Sources: Global Envision Report, 2013; IMF, WEO Database, 2013). Moreover,
the penetration of non-cash payments is much lower in these markets (Source: Euromonitor, Consumer Finance,
2014). In more mature markets we see attractive disruptive business models for payment processing as well as
for credit intermediation. We capture this segment via companies like the aforementioned Lendico, PAYMILL
(an online payment provider for small and medium sized online merchants) or Zencap (a peer-to-peer lending
business for small and medium sized enterprises).
Our Companies
Overview
We group our companies into six categories based on their size and maturity. We refer to our largest and
most mature companies as our proven winners. We refer to a selection of our younger companies with less
revenue as our emerging stars. For more information, see Sectors and Verticals. Our concept companies
are at the earliest stage of development; they have not yet generated significant revenues and most of them have
not yet completed a third party funding round. In addition, we founded four regional Internet groups that function
as platforms in Asia, Africa, Latin America and the Middle East. Our fifth category, strategic participations,
groups stakes in companies and other legal entities that we currently intend to keep in the medium term. Our
sixth category, other investments, is comprised of stakes in companies and other legal entities, which we see as
111
pure financial investments. The categories strategic participations and other investments include stakes in legal
entities that were part of the Global Founders Capital Fund portfolio and do not form part of our network of
companies. We hold our interests in our companies directly or indirectly through one of the regional Internet
groups mentioned above or one of our three intermediate holding companies. While we believe that all of our
companies show promise, there is no guarantee that they will in fact become successful businesses.
For our proven winners, the Issuer has reliable and meaningful financial information. Our proven winners
generated aggregated net losses of 442 million (unaudited sum total of their net losses based on generally
accepted accounting principles applicable for the relevant company, in each case taking the last financial year for
which data was available and excluding extraordinary gains of Dafiti resulting from the measurement of limited
partnership interests).
The Issuers consolidated financial statements as of and for the year ended December 31, 2013 included
each of the holding companies of our regional Internet groups and their significant subsidiaries. However, the
holding companies of our regional Internet groups were not required to prepare consolidated financial statements
nor to consolidate their subsidiaries for purposes of preparing the Issuers consolidated financial statements. The
Issuer does not have reliable and meaningful consolidated financial information for the regional Internet groups
as a whole.
For our emerging stars, the Issuer has reliable financial information for Lendico, which prepares
consolidated financial statements. In addition, the Issuer believes that the unconsolidated statements of
CupoNation, Paymill and Zencap provide a sufficiently meaningful approximation for the losses of these
emerging stars. For most of the other emerging stars, the Issuer does not have reliable and meaningful financial
information, as the Issuer does not have consolidated financial statements that provide a sufficiently reliable and/
or meaningful indication of the losses of these emerging stars. These emerging stars include foodpanda,
FabFurnish, Zanui and Wimdu. In addition, the Issuer does not have financial information for Helpling for 2013,
as Helpling only started its operations in 2014.
For companies and participations in the categories concepts, strategic participations and other investments,
the Issuer does not have reliable and meaningful financial information either. Concepts are very young
companies that are preparing to start operations or have started their operations very recently. Accordingly, no
reliable and meaningful financial information is available for these companies. The categories strategic
participations and other investments include for the most part participations that belonged to the Global Founders
Capital Fund portfolio and were contributed in August 2014 as well as some companies that were founded by the
Issuer. For the participations that were contributed in August 2014, the Issuer was not involved in the launch of
these businesses and has only very limited access to their financial information. With respect to the companies
that were launched by the Issuer, these companies were not required to prepare audited unconsolidated or
consolidated financial statements in their last fiscal year.
112
The following chart provides an overview of our proven winners and emerging stars, the business model
they are based on, the region in which they operate, or direct and indirect ownership percentage as of August 31,
2014 and the consolidation status as of June 30, 2014.
(1) Fully consolidated in Bigfoot Is financial statements. Bigfoot I is consolidated at equity in the Groups consolidated financial
statements.
(2) Consolidated at equity in Bigfoot Is financial statements. Bigfoot I is consolidated at equity in the Groups consolidated financial
statements.
(3) On August 27, 2014, Bigfoot II provided additional cash to Zalora in return for additional shares in Zalora, resulting in an increase of the
stake of the issuer in Zalora to 25.5%.
(4) Held via Bigfoot II, which does not prepare consolidated financial statements.
(5) Held via MEEH, which is held by Bigfoot I and BigCommerce. MEEH does not prepare consolidated financial statements.
(6) Held via BigCommerce, which does not prepare consolidated financial statements.
(7) Consolidated at equity via Africa Internet Groups subsidiary Africa eCommerce Holding GmbH, which prepares special purpose
consolidated financial statements. Jumia is also partially held via Bigfoot II, which does not prepare consolidated financial statements.
(8) Consolidated at equity on the basis of Emerging Markets Online Food Delivery Holding S. r.l.s standalone financial statements.
Emerging Markets Online Food Delivery Holding S. r.l. does not prepare consolidated financial statements.
(9) Consolidated at equity on the basis of Wimdu GmbHs standalone financial statements. Wimdu GmbH does not prepare consolidated
financial statements.
(10) Helpling was not consolidated as of December 31, 2013, but fully consolidated as of June 30, 2014 as it commenced operations in the
first quarter of 2014.
(11) Fully consolidated as of December 31, 2013. Due to financing rounds and further dilution in the first half of 2014, Lendico is
consolidated at equity as of June 30, 2014.
In the following sections, we describe our proven winners and emerging stars in more detail and provide
key financial and non-financial performance indicators. The key financial and non-financial performance
indicators have been computed individually for each company and are based on their data and systems.
Accordingly, the definitions of the key financial indicators used by the individual companies may vary, which
can impact the comparability between the key financial indicators used by our companies. While we seek to use
comparable definitions of similarly labelled non-financial performance indicators for companies that operate in
the same sector, the definitions need to take into account the individual characteristics of each sector. As a result,
they may vary from one sector to the other and, accordingly, similarly labelled key operating figures for
companies that operate in different sectors may have been defined differently and may not be comparable.
We aim to achieve break even on EBIT level within six to nine years from launch, with a focus on
achieving this target close to the shorter end of the range. Some of our companies have been growing very
113
quickly. Once they reach leading positions in their markets, we aim to continue to grow quicker than the markets.
Nonetheless, the growth rates will typically decrease significantly, with the decrease getting flatter over time. We
also provide an overview of our concept, our other companies, our regional Internet groups and our intermediate
holding companies.
Some of our business models have both independent operations and operations in a regional Internet
group. While they operate under the same umbrella brand and share services and information technology, they
are legally distinct entities and have different shareholders. The valuation and key performance indicator
information for entities that operate under the same umbrella brand include only contributions from operations
that are not carried out in a regional Internet group.
Proven Winners
Our proven winners include five emerging market fashion e-commerce companies, three emerging
market general merchandise e-commerce companies, two home & living companies (one being a shopping club)
and one groceries-based subscription company. Our proven winners accounted directly or indirectly for about
74% of the Groups total assets (excluding cash in hand, bank balances and checks) as of December 31, 2013.
Based on a good faith estimate of the Issuer, our proven winners accounted for the majority of the sum total of
the losses of all companies in the network of companies (based on their respective last financial year). Based on
the latest financing rounds, which took place between December 2012 and July 2014, our proven winners were
valued at 4.5 billion
(*)
, corresponding to a valuation of the Issuers direct or indirect stakes in these companies
of 1.3 billion
(*)
. The following table provides an overview of the last portfolio values (LPV) of our proven
winners and our stakes. The LPVs shown in the following table are unaudited numbers that were calculated
based on accounting and controlling records of the Issuer. The LPVs are based on the investment or capital
commitment made by a third party (Lamodas last financing round being an exception), i.e., an investor other
than the Issuer, in the latest financing round divided by the stake acquired by such third party in the financing
round or a secondary transaction. This means that the valuations shown represent post-money, post-capital
commitment valuations. Our quotas are based on the data as of August 31, 2014. The valuations reflect the
specific circumstances under which the relevant investments were made, including the specific terms of the
investments, such as liquidation preferences, and the insights, assumptions and expectations of the relevant
investors at that point in time. The calculation of LPVs is not defined by German GAAP and other companies
may compute LPVs using other methods or definitions than the Issuer. Our share in Jumias value only reflects
our 9.6% stake held via Bigfoot II. See also Risk FactorsRisks Related to the Issuer and Our CompaniesWe
disclose in this prospectus valuations derived from investments in the Issuer and our companies. These
valuations may not reflect the past, present or future fair values of the Issuer or our companies, and potential
investors in this offering should not place undue reliance on these valuations.
247
177 169
135 131
119
91 83
49
36
20
1,256
498
778
720
504
524
353
259
388
131
105
212
4,473
Total
Last
Funding
Round
Date
(2)

c.11 months Jul 2013 Oct 2013 Feb 2013 Apr 2014 Apr 2013 Jul 2013 Jul 2014 Aug 2013 Jan 2014 Dec 2012 Jun 2014
Inception
date
(1)

Apr 2009 Sep 2011 May 2010 Nov 2010 Jul 2012 Nov 2010 Nov 2011 Sep 2011 Nov 2011 May 2012 Jan 2011
(3)
funding
round age
(4)
(5)
Company LPV (unaudited) Commpany LPV (unaudited) Commpany LPV (unaudited)
Issuer share of company LPV (unaudited)
(1) Date reflects first commercial registry entry (operational launch date may differ slightly).
(2) Date reflects capital-weighted average between first and last closing (notarization date) of respective funding round where last funding
round comprises all investments made at the current price per share.
(3) Lamoda LPV based on latest investment by Bigfoot I.
(4) Issuer share of LPV for Jumia represents stake held through Bigfoot II only, additional stake (17.2%) in Jumia held through Africa
Internet Group not shown.
(5) As of August 31, 2014.
(*) Unaudited. Calculated based on accounting and controlling records of the Issuer.
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Below we present an overview of our proven winners. In 2013, all of our proven winners had a negative
EBITDA and a negative EBIT. As indicated above, we aim to achieve break even on EBIT level within six to
nine years from launch. In the long term, we aim to achieve a gross profit margin and EBIT margin at the higher
end of the range of peer e-commerce companies, which we believe to be in the range from 40% to 55% for gross
profit margins and from 7% to 12% for EBIT margins. We believe that the typical margins for general
merchandise peers are a bit lower, ranging from 25% to 30% for gross profit margins and from 4% to 6% for
EBIT margins. Our proven winners typically aim to achieve the higher end of the range margins.
Fashion e-commerce companies
Our emerging market fashion e-commerce companies are retail online stores that typically offer a
variety of mens, womens and childrens clothing, shoes and accessories, as well as a certain selection of home
dcor and beauty items. Each company targets a particular geographic area. The regional focus of these
companies allows them to tailor their brands, product offering, delivery options, marketing mix and payment
methods to match local demand and reflect customer preferences in the relevant market. In a number of markets
this means that our companies set up their own warehouse and delivery infrastructure.
Currently, the core business of our fashion e-commerce companies is online retail sales of third-party
products, including international and local fashion brands.
As part of their growth strategy, our fashion e-commerce companies also develop their own private
labels that cover both their own developments and white label purchases from third parties and generally target
affordable segments of the market. Private labels enable fashion retailers to fill gaps in their offering in a
particular geographic region, covering assortment, size and price range opportunities, and to react more quickly
to market and customer demands, including fast replenishment of bestsellers. Due to the large scale of operations
of our fashion companies, they are generally able to ensure efficient pricing on bulk purchases of materials and
bulk shipments that, combined with efficient manufacturing processes, lead to higher margins on private label
products and greater price flexibility. In certain regions, private labels are also used to promote customer loyalty,
as local customers are more willing to purchase home-grown brands. In addition, private labels provide
strategic benefits of a broader product offering, including the number of items and styles, differentiating against
competitors, as well as the ability to leverage brand awareness and foster fashion authority.
Our fashion e-commerce companies generate additional revenues by providing delivery services and by
charging a premium on expedite processing of orders delivered by third parties, including same-day and next-day
shipment options available to customers in certain regions. In emerging markets with weak delivery infrastructures,
being able to provide ones own high quality delivery services becomes an essential part of a positive online
shopping experience and increases general customer satisfaction. In addition, our companies offer free delivery on
all purchases or purchases over a certain amount in many markets, which helps them enhance customer loyalty.
Launched in 2011, Dafiti is a leading online retailer for clothing, shoes and accessories across five
major countries in Latin America, including Brazil, Argentina, Chile, Colombia and Mexico, with
BRL 419.3 million of net revenues and approximately 2,100 employees at the end of fiscal 2013, as well as the
largest online portfolio of products in the region, with more than 75,000 products across over 1,000 national and
international brands in Brazil alone. In Brazil, Dafiti is one of the most well-known online e-commerce
companies with almost 90% of the Brazilian population recognizing the Dafiti brand (Source: NetQuest, Market
Research, March 2014) and one of the most influential e-commerce company on Facebook with 6.1 million
followers (Sources: Data Popular, 2012; EXAME Report, 2012). Dafiti offers an evolving variety of mens,
womens and childrens clothing, shoes and accessories, as well as home decor products sourced from a vast
variety of third-party vendors, ranging from popular high-street brands to designer labels, as well as exclusive
private label brands launched by Dafiti that have already established themselves as top-sellers in key categories.
Dafitis customers in Brazil, Argentina, Chile, Colombia and Mexico can browse and shop using its desktop and
mobile websites, as well as through Dafitis proprietary universal iOS and Android applications created to
support mobile sales. Since the time of their launch, these apps have been downloaded more than 900,000 times,
which supported the increase in the share of customer visits generated via mobile devices from 4.2% in the first
quarter of 2013 to 15.8% in the second quarter of 2014 and helped Dafiti become the mobile leader in its market
by its own estimate.
To support its online sales, Dafiti established a strong logistics network in Latin America and its own
customer care services. Traditionally, this market represents a challenging environment for transportation due to
long delivery distances, the absence of major international carriers, regional nature of local transporters, as well
115
as a limited range and inconsistent quality of services provided by national carriers and postal systems. Dafitis
own storage, distribution and delivery capabilities, including its own warehouses and transporters, combined with
efficient cooperation and frequent assessments of performance levels of a number of partnering carriers enabling
Dafiti to swap between transporters when necessary and combine carriers with different levels of services to
increase delivery alternatives for customers, allow Dafiti to complete customer orders in a timely manner, reduce
shipping costs and offer a range of expedite delivery and return options, as well as provide customers with an
additional benefit of accepting payments on delivery, if such delivery is carried out by Dafitis own personnel.
Dafiti also established and maintains a leading customer care service in the industry that is aimed at increasing
customer satisfaction. Since its launch in 2011, Dafiti has experienced strong new customer growth and an
increasing number of repeat purchasing by existing customers. For issues in connection with a recent software
change, see Risk FactorsRisks Related to the Issuer and Our CompaniesOur business may be disrupted if
we are unable to upgrade our technology platform to meet increased demand.
Dafiti believes that customer loyalty is one of the most important indicators of the quality of its service
and sustainable long-term growth.
Along with an increase in net revenues, the share of net revenues generated by Dafitis existing
customers has also risen, from 38% in the first quarter of fiscal 2012 to 70% in the first quarter of
fiscal of 2014 (Sources: company information; NetQuest, Market Research).
Dafitis NPS, a customer loyalty metric measuring whether customers would recommend a
company to their family and friends, has also been on the rise from 76% in the first quarter of 2013
to 90% in the first quarter of 2014 (Sources: NetQuest, Market Research).
Dafiti strives to build on customer loyalty by introducing various ways to retain existing customers,
such as by providing high quality content through its own fashion magazine DafitiMag. It is one
of the biggest pure fashion magazines in Brazil with a circulation to more than 1 million readers
every year. DafitiMag is not only a printed platform but also a digital medium. Every day its team
publishes on Dafitis website articles on the latest trends in fashion, beauty and lifestyle based on
interviews with the best professionals in the market.
Dafiti also offers an exclusive shopping platform, Dafiti VIP, to its most loyal and high-spending
customers.
Dafitis overall market encompasses a population of over 420 million people across the five major
economies in Latin America (Source: IMF, WEO Database, 2013). Dafitis largest market is Brazil, with a
growing population of 198 million as of 2013 (Source: IMF, WEO Database). Dafiti also operates country-
specific websites and mobile applications in Argentina (population: 41 million), Chile (population: 18 million),
Colombia (population: 47 million) and Mexico (population: 118 million) (Source: IMF, WEO Database, 2013).
The overall fashion retail market (consists of apparel and footwear) in Latin America is expected to amount to
US$172 billion in 2014 and is expected to grow more than 50% to US$263 billion by 2018 (Source:
Euromonitor, Apparel and Footwear, 2014). Fashion e-commerce in the Latin American region constitutes a
relatively new trend, with a relatively low expected penetration level of 1.7% compared to 11.3% in the United
States in 2014 (Source: Euromonitor, Apparel and Footwear, 2014).
In line with its overall goal to acquire new customers and retain existing ones to drive net revenues
growth, Dafiti is focusing on enabling partial automation of the logistics network in Brazil to offer faster delivery
time for its customers, which is expected to further decrease fulfillment time and related costs significantly.
Dafiti also strives to enhance its logistics infrastructure in each of the countries where it operates by setting up its
own additional warehouses, expanding its chain of partnering carriers, including private and national transport
companies, and frequently assessing performance levels of these carriers in order to reduce net shipping costs
and delivery times. In addition to strengthening its position in existing markets and in view of the growth of the
fashion e-commerce market in the region, Dafiti is currently analyzing opportunities for geographical expansion
in other Latin American countries.
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The following table provides an overview of Dafitis consolidated key financial indicators, which have
been derived from accounting or controlling records of Dafiti and have been prepared on the basis of Full IFRS:
Year ended
December 31,
2012 2013
(unaudited)
(in BRL million)
Net revenues
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223.5 419.3
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 88%
Gross profit
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90.6 143.0
Gross profit margin
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41% 34%
EBITDA
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (168.5) (205.3)
EBITDA margin
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75%) (49%)
Loss for the year
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) (2.3)
Capital expenditures
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6 22.8
Capital expenditure ratio
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% 5%
(1) Net revenues in 2013 correspond to 146.3 million (converted at the average EUR/BRL exchange rate for 2013 of 0.3489).
(2) Gross profit is calculated as (i) net revenues (2013: BRL 419.3 million; 2012: BRL 223.5 million) minus (ii) cost of goods sold (2013:
BRL 276.3 million; 2012: BRL 132.9 million).
(3) Gross profit margin is the ratio of gross profit to net revenues.
(4) EBITDA is calculated as (i) operating profit or loss (2013: loss of BRL 208.1 million; 2012: loss of BRL 170.4 million) plus
(ii) depreciation of property, plant and equipment (2013: BRL 2.3 million; 2012: BRL 1.5 million) plus (iii) amortization of intangible
assets (2013: BRL 0.5 million; 2012: BRL 0.3 million). EBITDA includes share based payment expense that amounted to
BRL 4.0 million in 2013 and BRL 14.6 million in 2012.
(5) EBITDA margin is the ratio of EBITDA to net revenues.
(6) Loss for the year corresponds to 0.4 million in 2012 and 0.8 million in 2013. Loss for the year included change in redemption value of
puttable shares (2013: BRL 202.1 million, 2012: 172.4 million) and, therefore, loss for the year before change in redemption value of
puttable shares was BRL 204.4 million in 2013 and BRL 173.4 million in 2012. The gain from the change of redemption amount results
from the measurement of limited partnership interests that are classified as liabilities in accordance with IAS 32.
(7) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: BRL 16.2 million; 2012: BRL 9.7 million)
plus (ii) acquisition of intangible assets (2013: BRL 6.6 million; 2012: BRL 0.9 million).
(8) The capital expenditure ratio corresponds to the ratio of capital expenditures to net revenues.
As of December 31,
2012 2013
(unaudited)
(in BRL million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.8 (9.9)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.3 193.8
(1) Net working capital is calculated as (i) inventories (December 31, 2013: BRL 74.5 million; December 31, 2012: BRL 97.3 million) plus
(ii) trade and other receivables (December 31, 2013: BRL 29.1 million; December 31, 2012: BRL 11.7 million) minus (iii) trade and
other payables (December 31, 2013: BRL 113.5 million; December 31, 2012: BRL 67.2 million).
Dafitis net revenues increased by 88%, from BRL 223.5 million in 2012 to BRL 419.3 million in 2013,
driven by three major factors (i) growth in the number of new customers buying at Dafiti every month, (ii) high
levels of customer engagement as shown by an increase in the number of orders per customer and (iii) an
increase in the average basket size at check-out.
Gross profit margin decreased by seven percentage points, from 41% in 2012 to 34% in 2013, due to
higher discount levels resulting from the implementation of new inventory management methodologies that led
to a significant increase in inventory turnover (inventories decreased by 23%, while net revenues increased 88%
over the period under discussion) and an improvement of net working capital.
EBITDA margin improved by 26 percentage points, from negative 75% in 2012 to negative 49% in
2013, due to active management of cost key performance indicators in the area of logistics, customer service,
content production and payment processing, together with the optimization of marketing spending and the
dilution of the fixed cost base.
Net working capital changed from BRL 41.8 million as of December 31, 2012 to BRL negative
9.9 million as of December 31, 2013 as a result of (i) strong bargaining power with suppliers, most of which have
Dafiti as their biggest account, (ii) active management of accounts receivables and (iii) major improvements in
inventory management with reductions of 23% in inventories coupled with increases in net revenues of 88%,
resulting in a significant increase in inventory turnover.
Dafitis cash and cash equivalents also improved from BRL 46.3 million as of December 31, 2012 to
BRL 193.8 million as of December 31, 2013 due to significant investor commitments.
117
Based on preliminary management information data, Dafitis net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the increase in gross
merchandise volume. EBITDA loss remained broadly stable in the six months ended June 30, 2014, compared to
the six months ended June 30, 2013, while EBITDA margin improved.
The following non-financial key performance indicators are used to evaluate and steer Dafitis
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless indicated
otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 1,140 2,356 1,762 2,967
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 1,039 1,632 1,411 1,792
Number of total unique visitors
(3)
(in million) . . . . . . . . . 167 208 112 102
Number of total orders
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,867 3,304 1,517 1,907
Gross merchandise volume
(5)
(in BRL million) . . . . . . . 246 457 208 272
(1) Number of customers that have made at least one order as defined in total orders.
(2) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(4) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(5) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies), including value of vouchers.
Launched in 2011 in Russia, Lamoda has become one of the leading full price online retailers for
clothing, shoes and accessories in the CIS, with RUB 5,150.0 million of net revenues in fiscal 2013. In March
2012, Lamoda launched Lamoda.kz in Kazakhstan, and since then has become the largest online fashion retailer
in this market. In early 2014, Lamoda expanded into Ukraine. Through its desktop and mobile websites, as well
as iOS and Android applications, Lamoda provides its customers with access to more than 86,000 stock keeping
units (SKUs). Lamoda offers an evolving variety of mens, womens and childrens clothing, shoes and
accessories sourced from famous designers and promising young brands, as well as its own complementary, fast
growing private label portfolio. Currently Lamoda is in the third season with four private labels presented online,
a mix of own developments and white label buying sourced in the Far East, Eastern Europe and Turkey. The
Lamoda brand is among the most recognized fashion retail brands in the CIS with 84% of the Russian population
recognizing Lamoda (Source: BD RCI, Brand Awareness Study, March/April 2014). Since its launch in 2011,
Lamoda has experienced strong new customer growth and an increasing number of repeat purchases by existing
customers. These factors, combined with cost savings measures and improved inventory planning, have been the
keys to the economic success of Lamodas business.
Shipping is one of the main challenges retail e-commerce vendors face in Russia due to the size of the
country, along with unreliable, relatively expensive services provided by the national postal systems and the
limitation of geographic regions served by larger international carriers to major cities and/or the European part of
the country, both with limited focus on customer experience. Existing carrier services face a demanding customer
base expecting timely delivery and certain additional delivery options, such as next day and cash on delivery.
Lamoda successfully overcame this challenge and established its own distribution and delivery capabilities that
reach approximately 40% of the Russian population representing approximately 70% of the purchasing power.
Lamoda believes that, in addition to its offer of merchandise, it distinguishes itself by the quality of service it is
able to provide as a result of controlling all aspects of its logistics infrastructure and its competitive pricing.
Through its own delivery service, Lamoda Express, Lamoda offers extensive free delivery options, including
next-day delivery in nearly 80 major cities. Lamodas sales representatives, which are remunerated on an
incentive-based model, provide a high level of service while exhibiting a high degree of professionalism and a
uniform appearance, which helps Lamoda provide a constant quality of service and customer satisfaction and to
reduce return rates. In addition, the insourcing of delivery services allows Lamoda to accept payments on
delivery and provide try at the door services that are in high demand by CIS customers.
Lamodas market encompasses a population of over 285 million people across the CIS region (Source:
IMF, WEO Database, 2013). Lamodas largest market is Russia with a population of approximately 143 million
(Source: IMF, WEO Database, 2013). Lamoda also serves Kazakhstan (population: 17 million) and Ukraine
118
(population: 45 million) (Source: IMF, WEO Database, 2013). While the retail infrastructure outside of a small
number of major cities is in a significantly less developed stage than in Western European countries, each of
these countries has an established base of active Internet users, comprising over 56% of the population in Russia
and 57% in Kazakhstan (Sources: IMF, WEO Database, 2013; IDC Database, 2013; Internet Live Stats, 2014). In
addition to the existing customer base, the CIS market has significant growth potential over the coming years.
The overall fashion retail market (consists of apparel and footwear) in Russia and Ukraine is expected to amount
to US$98 billion in 2014 and is expected to grow approximately 40% to US$137 billion by 2018 (Source:
Euromonitor, Apparel and Footwear, 2014). The online fashion penetration rate in these two countries is
expected to be at a relatively low level of 6.3% of the overall fashion retail compared to 11.3% in the United
States in 2014 (Source: Euromonitor, Apparel and Footwear, 2014). As the industry continues to grow, Lamoda
strives to expand its business. For instance, since the Spring/Summer season of 2012, Lamoda has increased the
number of products it offers tenfold from 39,000 to 86,000 as of the Spring/Summer season of 2014.
In addition to financing rounds, the development of revenue is another growth factor for the company,
which increases operating leverage and Lamodas ability to offer a broader selection, more affordable prices and
a higher level of customer service, including the development of its own brands and collections. Superior
customer experience drives greater customer growth, increased loyalty and repeat purchasing, which in turn
attracts more vendors. Lamoda is considering a further expansion of its delivery services to cover 30 additional
cities and an introduction of shipping control tools for its customers, as well as more convenient order handling
at the door. In addition, Lamoda contemplates further geographic expansion into new CIS markets.
The following table provides an overview of Lamodas consolidated key financial indicators, which have
been derived from accounting or controlling records of Lamoda and have been prepared on the basis of Full IFRS:
Year ended
December 31,
2012 2013
(unaudited)
(in RUB million)
Net revenues
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475.8 5,150.0
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 249%
Gross profit
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462.7 2,038.2
Gross profit margin
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31% 40%
EBITDA
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,603.7) (1,920.9)
EBITDA margin
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (109%) (37%)
Loss for the year
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,370.1) (1,692.1)
Capital expenditures
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92.8 254.9
Capital expenditure ratio
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% 5%
(1) Referred to as revenue in Lamodas accounting or controlling records. Net revenues in 2013 correspond to 122.1 million (converted
at the average EUR/RUB exchange rate for 2013 of 0.0237).
(2) Gross profit is calculated as (i) revenue (2013: RUB 5,150.0 million; 2012: RUB 1,475.8 million) minus (ii) cost of sales (2013:
RUB 3,111.8 million; 2012: RUB 1,013.1 million).
(3) Gross profit margin is the ratio of gross profit to net revenues.
(4) EBITDA is calculated as (i) operating profit or loss (2013: loss of RUB 1,982.7 million; 2012: loss of RUB 1,616.1 million) plus
(ii) depreciation of property, plant and equipment (2013: RUB 47.0 million; 2012: RUB 10.9 million) plus (iii) amortisation of
intangible assets (2013: RUB 14.7 million; 2012: RUB 1.5 million). EBITDA includes share based payment expenses of
RUB 37.9 million in 2013 and RUB 21.5 million in 2012.
(5) EBITDA margin is the ratio of EBITDA to net revenues.
(6) Loss for the year corresponds to 34.4 million in 2012 and 40.1 million in 2013.
(7) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: RUB 195.6 million; 2012:
RUB 80.7 million) plus (ii) acquisition of intangible assets (2013: RUB 59.3 million; 2012: RUB 12.1 million).
(8) The capital expenditure ratio is the ratio of capital expenditure to net revenues.
As of December 31,
2012 2013
(unaudited)
(in RUB million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (206.2) (343.7)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.0 2,607.9
(1) Net working capital is calculated as (i) inventories (December 31, 2013: RUB 1,084.3 million; December 31, 2012: RUB 597.9 million)
plus (ii) trade receivables (December 31, 2013: RUB 105.6 million; December 31, 2012: RUB 74.3 million) minus (iii) trade and other
payables (December 31, 2013: RUB 1,533.6 million; December 31, 2012: RUB 878.4 million).
119
Lamodas net revenues increased by 249%, from RUB 1,475.8 million in 2012 to RUB 5,150.0 million
in 2013, driven largely by an increase in both customer base and orders but also by increased order size.
Increased order size was, in turn, caused by improvements in inventory management and merchandising and
improved customer experience.
Gross profit margin increased by nine percentage points, from 31% in 2012 to 40% in 2013, driven by
improved stock management, gains in sourcing and reduced price investments.
EBITDA margin improved by 71 percentage points, from negative 109% in 2012 to negative 37% in
2013, as a result of improved operating efficiency across all cost lines (for example, marketing expenses
decreased from 60% of net revenues in 2012 to 25% of net revenues in 2013).
Lamoda made continuing investments in its proprietary IT infrastructure and logistics backbone
throughout 2013 in order to ensure scalability and consistency of the Lamoda customer experience, resulting in
an increase in capital expenditure.
Based on preliminary management information data, Lamodas net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the increase in gross
merchandise volume. Due to the expansion in business, EBITDA loss increased in the six months ended June 30,
2014, compared to the six months ended June 30, 2013, while EBITDA margin improved considerably.
The following non-financial key performance indicators are used to evaluate and steer Lamodas
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless indicated
otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 488 1,427 864 2,002
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 419 1,088 705 1,396
Number of total unique visitors
(3)
(in million) . . . . . . . . . 44 68 35 45
Number of total orders
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756 2,287 828 1,677
Gross merchandise volume
(5)
(in RUB million) . . . . . . . 3,232 11,773 3,879 8,672
(1) Number of customers that have made at least one order as defined in total orders.
(2) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(4) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(5) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies).
The Zalora online stores were launched in Hong Kong, Indonesia, Malaysia, Philippines, Thailand,
Vietnam and Singapore in early 2012. Together with The Iconic online store, which was launched in Australia
and New Zealand in late 2011, the Zalora stores are part of the Zalora Group its associated legal entities) since
2012. Zalora Group believes it is Asia Pacifics leading group of online fashion retailers, offering clothing, shoes,
accessories and beauty products across Southeast Asia under the Zalora brand, and to customers in Australia and
New Zealand under The Iconic brand. Zalora Groups net revenues amounted to 68.9 million in fiscal 2013.
Zalora Group has a loyal customer base with a high share of orders placed by returning customers. Zalora
Groups websites and mobile applications offer a highly attractive mix of compelling third-party brands and
differentiating private labels. The country-specific websites, as well as the iOS and Android applications branded
Zalora are available to its customers in Indonesia, Malaysia/Brunei, Singapore, Thailand, the Philippines, Hong
Kong and Vietnam, and the customers located in Australia and New Zealand can access the online store on The
Iconic website and mobile applications. Based on a pan-regional approach with localized service and products,
Zalora Group strives to expand its customer reach by focusing on mobile devices as one of its key channels.
Today over 30% of Zaloras users and over 50% of the Iconics users access Zalora Groups online stores using a
mobile device. Zalora Groups iOS and Android applications have been downloaded more than 1 million times.
Currently, Zalora Group is among the few online fashion retailers in Asia Pacific, offering a variety of
products consisting of 180,000 SKUs (sum of unique combinations of styles and colors offered on any of Zalora
Groups online stores), including Muslimwear offered to customers in Malaysia and Indonesia, from over 3,000
third-party and private label brands.
120
Since launching the Zalora stores in 2012, Zalora Group has been filling the gap that exists in many
of the emerging markets of Asia Pacific, where affordable high-street fashion has not been readily
available to offline shoppers. Through an assortment of local and global brands and proprietary
private labels, Zalora Group is redefining how fashion is accessed in the emerging markets where it
operates, by filling the price-range and product gap between traditional street markets and
comparatively high-end department stores.
Zalora Group established and operates a local distribution network with seven warehouses and its
own last-mile delivery fleet that enables it to offer cost effective next-day deliveries in most capital
cities and its average delivery time amounted to 2.4 days in the first quarter of 2014, despite
serving a very wide spread territory that includes Indonesia and the Philippines. In Sydney and
Melbourne, The Iconic offers a 3-hour delivery option which now represents approximately 12% of
its revenues. Zalora directly manages last mile delivery for more than 30% of all orders in
Southeast Asia, and a launch of same-day delivery in selected capital cities of this region is
envisaged.
Zalora offers to its customers additional payment options, such as payment on delivery which
comprises up to 90% of payments in certain emerging markets.
Due to its assortment offering, platforms quality and quality of service, including fast delivery and easy
and free returns, Zalora Group has experienced strong new customer growth and an increasing number of repeat
purchases from existing customers, which have both been essential to its growth. To further promote customer
loyalty and general brand awareness, Zalora Group facilitates customer communication, including the offering of
a fashion blog, and has approximately 5.3 million followers on Facebook.
Zalora Group addresses a market with a population of approximately 570 million across the Asia Pacific
region in 2013 (Source: IMF, WEO Database). Zaloras largest market is Indonesia with a population of
approximately 248 million (Source: IMF, WEO Database, 2013). Zalora Group also serves the emerging markets
of Malaysia/Brunei, Thailand, the Philippines and Vietnam, which together constitute a population of
approximately 285 million, as well as Hong Kong (population: 7 million) and Singapore (population: 5 million)
(Source: IMF, WEO Database, 2013). Zalora Groups The Iconic store serves Australia (population: 23 million)
and New Zealand (population: 4 million) (Source: IMF, WEO Database, 2013). The number of people with
Internet access in the Asia Pacific region is already significant and growing at a fast speed, with the share of
mobile Internet access constantly on the rise. The overall fashion retail market in Zalora Groups markets
(consists of apparel and footwear) is expected to amount to US$82 billion in 2014 and is expected to grow
approximately 28% to US$105 billion by 2018 (Source: Euromonitor, Apparel and Footwear, 2014). The online
fashion penetration rate in Zalora Groups markets is expected to be at a relatively low level of 3.8% of the
overall fashion retail compared to 11.3% in the United States in 2014 (Source: Euromonitor, Apparel and
Footwear, 2014).
Private label products alongside the best global and local brands constitute a key growth driver for its
business. Zalora Groups private label brands include Zalia, EZRA, 24:01, Something Borrowed and Kei&Kori,
offering distinct styles that reflect the latest trends at affordable prices. The share of private label sales in the total
Zalora Group net revenues has reached 32% in the second quarter of 2014, validating Zalora Groups strategy to
place private label at the core of its product assortment. Zalora Group believes that its brands and private labels
will continue to attract new customers and retain existing ones by quickly adopting the latest fashion trends and
offering high-quality products at affordable prices. In the near future, Zalora Group intends to focus on branding
and positioning its brands and online stores in existing markets to further increase the customer base and
optimize customer loyalty. Furthermore, to improve customer experience, providing a cutting-edge customer
service through 24/7 chat, exchanges at the door and introduction of seamless return and refund process are
Zalora Groups strategic initiative going forward.
121
The following table provides an overview of Zalora Groups consolidated key financial indicators, which
have been derived from accounting or controlling records of Zalora and have been prepared on the basis of Full
IFRS:
Year ended
December 31,
2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.9
Year-on-year growth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.3
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (68.3)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (99%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (71.1)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2%
(1) Gross profit is calculated as (i) net revenues (2013: 68.9 million) minus (ii) cost of goods sold (2013: 42.6 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 69.2 million) plus (ii) depreciation of property, plant and equipment
(2013: 0.6 million) plus (iii) amortization of intangible assets (2013: 0.3 million). EBITDA includes share based payment expense that
amounted to 6.9 million in 2013.
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 0.8 million) plus (ii) acquisition of
intangible assets (2013: 0.7 million).
(6) The capital expenditure ratio is the ratio of capital expenditure to net revenues.
As of December 31,
2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90.9
(1) Net working capital is calculated as (i) inventories (December 31, 2013: 10.6 million) plus (ii) trade and other receivables
(December 31, 2013: 2.1 million) plus (iii) prepaid expenses (December 31, 2013: 1.5 million) minus (iv) trade and other liabilities
(December 31, 2013: 13.3 million).
The year 2013 was Zalora Groups first full year of operations. Zalora continued its growth and reached
net revenues of 68.9 million, accompanied by a positive trend in gross profit margin which was led by the
launch of private labels that now represent 32% of the business.
Low net working capital and capital expenditures allowed for efficient cash management, and cash and
cash equivalents of 90.9 million (as of December 31, 2013) helped lay the groundwork for future growth.
Based on preliminary management information data, Zalora Groups net revenues increased in the
six months ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the
increase in gross merchandise volume. EBITDA loss also improved in the six months ended June 30, 2014,
compared to the six months ended June 30, 2013, with EBITDA margin improving significantly.
The following non-financial key performance indicators are used to evaluate and steer Zalora Groups
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless
indicated otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 451 1,331 885 1,889
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 450 1,023 815 1,246
Number of total unique visitors
(3)
(in million) . . . . . . . . . 57 98 52 45
Number of total orders
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 802 2,025 929 1,493
Gross merchandise volume
(5)
(in million) . . . . . . . . . . . 40 84 39 56
(1) Number of customers that have made at least one transaction as defined in total transactions.
122
(2) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of
period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(4) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace).
(5) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for
comparison reasons between countries and companies), including value of vouchers and coupons.
Jabong.com is an Indian online fashion and lifestyle e-commerce portal, offering a variety of mens,
womens and childrens clothing, shoes and accessories as well as home fashion. In compliance with the
regulatory framework for foreign investment in India, Jabongs own operations are limited to business-to-
business transactions and Jabong works together with an independent third party, which enters into contracts
with, and delivers products to, Indian customers under the Jabong brand. Due to the structural differences of the
Indian market, Jabongs target margins are significantly lower than those of peer companies described above
under Proven Winners. Since its launch, Jabong.com has become the leading online fashion portal in India
with INR 4,385.7 million in net revenues in fiscal 2013. Jabong also operates an international store on
Jabongworld.com, offering ethnic Indian wear to international customers. Currently users can browse and shop
by accessing the store website on desktops and mobile devices, as well as via its iOS and Android applications
launched in the second quarter of 2014. Offering more than 139,000 SKUs and 1,600 brands across nine lifestyle
categories on its online store, Jabong.com aims to provide fashion that appeals to the young Indian population,
with a focus on reaching customers located throughout the country. It is one of the best recognized online fashion
brands in India. The brand has a loyal customer base, with the majority of purchase orders placed by returning
customers and 2.6 million followers on Facebook.
Jabong offers a wide range of trendy attire and home decor sourced from well-known local and
international brands, as well as ten of its own private labels, which are available for sale and delivery to
customers by the independent third party (JaVas) that is active under the brand name Jabong in the Indian market
and offers deliveries to more than 12,000 postal code areas in India. In a country where the infrastructure
environment may be characterized as highly complex and challenging, approximately 93% of shipped orders
under the Jabong brand were successfully fulfilled in the second quarter of fiscal 2014. In the second quarter of
fiscal 2014, approximately 72% of total deliveries under the Jabong brand were made using JaVas, while the rest
of the orders were serviced by state carriers. Approximately 70% of all Jabong.coms orders in locations that
offer same-day delivery are delivered within one day. Jabong has also established its own production
infrastructure, allowing it to create photos and website content for approximately 1,200 SKUs per day.
The market for Jabongs fashion encompasses an immense population of over one billion people across
India (Source: IMF, WEO Database, 2013). India, whose number of people with Internet access is expected to
grow from 177 million in 2013 to 278 million by 2018, is anticipated to catch up with the United States, which is
expected to have 283 million people with Internet access, the second largest Internet population after China
(Source: IDC Database). The overall fashion retail market (consists of apparel and footwear) in India is expected
to amount to US$55 million in 2014 and is expected to grow by approximately 60% to US$88 billion by 2018
(Source: Euromonitor, Apparel and Footwear, 2014). The online fashion penetration rate in India is expected to
be at a relatively low level of 0.8% of the overall fashion retail market compared to 11.3% in the United States in
2014 (Source: Euromonitor, Apparel and Footwear, 2014). Jabong.com, as one of the forefront market leaders in
e-commerce in India, aims to benefit from these market trends by expanding its geographical reach within India
and focusing on young consumers through various media, such as blogs, magazine and social media platforms,
look books, Bollywood collaboration and fashion events.
In seeking to develop its sources of revenue, Jabong.com strives to extend its reach by making the latest
fashion trends available to Indias urban population living in the so-called tier 2 and tier 3 cities, where
offline retail stores have generally not satisfied the market demand so far.
More than a half of high-street offline retail stores in India are located in the tier 1 cities,
comprising the major cities of Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai,
whereas the majority of the population lives outside these cities (Source: Issuers research based on
location of stores listed on selected retailers websites, as of July 18, 2014).
Jabong has tapped the demand in Indias tier 2 and tier 3 cities, generating approximately 62% of
its net revenues from these areas in the second quarter of fiscal 2014.
Jabong also strives to extend its product offering by introducing new international brands and
celebrity designed lines to the Indian market, as well as by further developing its private labels,
which already account for every fifth item shipped.
123
Jabong sees additional growth opportunities in promoting its mobile offering. The share of
Jabongs mobile transactions increased from 4.4% in the first quarter of 2013 to 27.0% in the
second quarter of 2014, while its monthly average visits using mobile devices increased from
1.8 million to 13.5 million over the same period. Jabong expects the mobile share of its business to
show faster growth going forward and believes that the upcoming launch of its mobile applications
will further support its net revenues.
The following table provides an overview of Jabongs consolidated key financial indicators, which have
been derived from accounting or controlling records of Jabong and have been prepared on the basis of Full IFRS:
Year ended
March 31,
(1)
2013 2014
(unaudited)
(in INR million)
Net revenues
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,433.1 4,385.7
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 206%
Gross profit
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (377.5) (447.1)
Gross profit margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26%) (10%)
EBITDA
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,875.7) (2,491.5)
EBITDA margin
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (201%) (57%)
Net loss
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,186.5) (2,934.4)
Capital expenditures
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208.1 266.3
Capital expenditure ratio
(9)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15% 6%
(1) Jabongs fiscal year ends on March 31.
(2) Referred to as revenue in Jabongs accounting or controlling records. Net revenues in the twelve-month period ended March 31, 2014
correspond to 56.6 million (converted at 2014 average exchange rate of EUR/INR = 0.0129).
(3) Referred to as gross loss in Jabongs accounting or controlling records. Gross profit is calculated as (i) net revenues (twelve-month period
ended March 31, 2014: INR 4,385.7 million; twelve-month period ended March 31, 2013: INR 1,433.1 million) minus (ii) cost of sales
(twelve-month period ended March 31, 2014: INR 4,832.8 million; twelve-month period ended March 31, 2013: INR 1,810.7 million).
(4) Gross profit margin is the ratio of gross profit to net revenues.
(5) EBITDA is calculated as (i) loss from operations (twelve-month period ended March 31, 2014: loss of INR 2,573.7 million; twelve-
month period ended March 31, 2013: loss of INR 2,953.5 million) plus (ii) depreciation and amortization (twelve-month period ended
March 31, 2014: INR 82.2 million; twelve-month period ended March 31, 2013: INR 77.8 million). EBITDA includes share-based
payment transaction expense that amounted to INR 65.7 million in the twelve-month period ended March 31, 2014 and INR
153.6 million in the twelve-month period ended March 31, 2013.
(6) EBITDA margin is the ratio of EBITDA to net revenues.
(7) Loss for the year corresponds to 46.5 million in 2012 and 37.9 million in 2013.
(8) Capital expenditures are calculated as purchase of long lived assets that amounted to INR 266.3 million in twelve-month period ended
March 31, 2014 and INR 208.1 million in twelve-month period ended March 31, 2013.
(9) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of March 31,
(1)
2013 2014
(unaudited)
(in INR million)
Net working capital
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33.0) 504.8
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432.7 7,775.1
(1) Jabongs fiscal year ends on March 31.
(2) Net working capital is calculated as (i) inventories (March 31, 2014: INR 1,365.9 million; March 31, 2013: INR 437.2 million) plus
(ii) trade and other receivables (March 31, 2014: INR 532.5 million; March 31, 2013: INR 282.1 million) plus (iii) prepayments and
other assets (March 31, 2014: INR 43.9 million; March 31, 2013: INR 110.8 million) minus (iv) trade and other payables (March 31,
2014: INR 1,437.5 million; March 31, 2013: INR 863.2 million).
Jabongs net revenues more than tripled, from INR 1,433.1 million in the year ended March 31, 2013 to
INR 4,385.7 million in the year ended March 31, 2014, led by an increase in product assortment, launch of
international brands, exclusive tie-ups and brand building activities.
Gross profit declined from negative INR 377.5 million in the year ended March 31, 2013 to negative
INR 447.1 million in the year ended March 31, 2014, but increased in percentage terms from negative 26% of net
revenues to negative 10%, as a result of numerous factors, including an increase in scale, more efficient pricing
by partners and an increase in the share of private label sales.
Capital expenditures decreased by nine percentage points, from 15% of net revenues in the year ended
March 31, 2013 to 6% in the year ended March 31, 2014, although increasing in absolute value from
INR 208.1 million to INR 266.3 million over the same period, due to expenditures required to scale up and build
required infrastructure.
124
Net working capital increased from negative INR 33.0 million as of March 31, 2013 to
INR 504.8 million as of March 31, 2014 due to an increase in scale and number of orders.
Cash and cash equivalents increased from INR 432.7 million as of March 31, 2013 to
INR 7,775.1 million as of March 31, 2014.
Based on preliminary management information data, Jabongs net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, but slightly less than the corresponding
increase in gross merchandise volume. Due to an expansion of business EBITDA loss increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, while EBITDA margin improved
significantly.
The following non-financial key performance indicators are used to evaluate and steer Jabongs
operations:
Year ended December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless indicated
otherwise)
Number of total unique visitors
(1)
(in million) . . . . . . . . . 70 180 73 155
Number of total orders
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,143 3,372 1,181 3,197
Gross merchandise volume
(3)
(in INR million) . . . . . . . . 1,495 5,114 1,726 5,095
(1) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace).
(3) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies), including value of vouchers and coupons.
Namshi is a 91.1% subsidiary and the only substantial asset held by Middle East eCommerce Holding
GmbH. Since its inception in 2012, Namshi has been focusing on fashion-conscious customers in the Gulf
Cooperation Council countries of the Middle East: Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain
and Oman. As the largest in-season fashion e-commerce player in the region, Namshi has over 180,000
customers to date, generating net revenues of AED 53.2 million in fiscal 2013. Namshi offers an assortment of
clothing, shoes and accessories for men, women and children from local and international designers, and has
exclusive contracts with certain major international brands, as well as its own private labels and provides a fast
and reliable delivery service. Namshi has approximately 600,000 followers on Facebook and 400,000 subscribers
to its newsletters.
Namshi is the leading full-price online fashion retailer in the Middle East, with its own warehouse and
its own last-mile delivery capabilities in the United Arab Emirates. Namshi seized the opportunity to build a
successful online fashion store in the region, where the offline fashion retail industry has been underserving the
local demand due to the underdeveloped retail infrastructure (e.g., lack of street addresses and qualified
third-party logistics and delivery service providers), the fragmented nature of the markets and cultural challenges.
By operating its own warehouse and last-mile delivery infrastructure, Namshi has made same-day delivery and
end-to-end customer experience service available to its customers in the United Arab Emirates and has overcome
the operational challenges that retailers often face in the region. Namshis customers can browse and choose
from an extensive range of the trendiest local and international brands, as well as a growing private label
portfolio, on their desktop and mobile devices from the comfort of their home. Focused on providing an excellent
shopping experience to its customers across the Gulf Cooperation Council countries, Namshi endeavors to offer
optimized access through all platforms. It has re-launched its mobile website and introduced a mobile application
for the iOS platform, which together account for the majority of user sessions today. The iOS application alone
accounted for over 10% of all placed orders only a week after its launch.
The six countries in which Namshi is active comprise a population of over 50 million people (Source:
IMF, WEO Database, 2013). The Gulf Cooperation Council region has a combined GDP of over US$1.6 trillion,
with an annual growth of approximately 4% (Source: IMF, WEO Database, 2013). Namshi believes that there is
major development potential for the online fashion industry in this region, where online participation rates are
high, with Saudi Arabia taking the first place in Twitter penetration and one of the highest penetration rates on
Facebook and YouTube worldwide (Source: The Guardian Report, 2013). It is expected that the e-commerce
market in the Middle East will grow over the coming years. The overall fashion retail market (consists of apparel
125
and footwear) in Saudi Arabia and the United Arab Emirates is expected to amount to US$30 billion in 2014 and
is expected to grow by approximately 38% to US$41 billion by 2018 (Source: Euromonitor, Apparel and
Footwear, 2014). The online fashion penetration rate in these two countries is expected to be at a relatively low
level of 0.4% of the overall fashion retail market compared to 11.3% in the United States in 2014 (Source:
Euromonitor, Apparel and Footwear, 2014).
Namshi primarily focuses on igniting growth while maintaining its profitability objectives. It plans to
upgrade the look and feel of its website to communicate an even more fashionable brand to its current and
potential customers. By launching an Android application and utilizing new offline marketing channels, such as
through television advertisements, Namshi aims to increase its brand recognition and the number of new
customers on its online stores in the future. It also explores opportunities for a geographic expansion by creating
a delivery infrastructure for shipments into Jordan and Lebanon. In addition, Namshi plans to broaden its
assortment targeting to raise the number of offered items, as well as to further develop its private labels by hiring
in-house production and design talents from top fashion producers, further driving differentiation and growth in
profitability. In the meantime, Namshi is taking measures to reduce costs by improving inventory management,
expanding its warehouse capacity and lowering delivery expenses through negotiations with third-party vendors
and service providers, as well as by analyzing customer behavior and data to better predict customer preference
and levels of return.
The following table provides an overview of the consolidated key financial indicators of MENA Style
Fashion UG (haftungsbeschrnkt) & Co. KG (holding company of Namshis operating entity), which have been
derived from accounting or controlling records of MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG and
have been prepared on the basis of Full IFRS:
Year ended
December 31,
2012 2013
(unaudited)
(in AED million)
Net revenues
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 53.2
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 226%
Gross profit
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 24.3
Gross profit margin
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33% 46%
EBITDA
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58.6) (49.3)
EBITDA margin
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (359%) (93%)
Loss for the year
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.2) (50.5)
Capital expenditures
(7)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 2.7
Capital expenditure ratio
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% 5%
(1) Referred to as sale of goods in Namshis accounting or controlling records. Net revenues in 2013 correspond to 10.9 million
(converted at 2013 average exchange rate of EUR/AED = 0.2051).
(2) Gross profit is calculated as (i) net revenues (2013: AED 53.2 million; 2012: AED 16.3 million) minus (ii) cost of goods sold (2013:
AED 28.9 million; 2012: AED 10.9 million).
(3) Gross profit margin is the ratio of gross profit to net revenues.
(4) EBITDA is calculated as (i) operating profit or loss (2013: loss of AED 50.1 million; 2012: loss of AED 59.0 million) plus
(ii) depreciation of property and equipment (2013: AED 0.6 million; 2012: AED 0.2 million) plus (iii) amortization of intangible assets
(2013: AED 0.2 million; 2012: AED 0.1 million). EBITDA includes expense arising from equity-settled share-based payment
transactions that amounted to AED 12.2 million in 2013 and AED 9.0 million in 2012.
(5) EBITDA margin is the ratio of EBITDA to net revenues.
(6) Loss for the year corresponds to 5.1 million in 2012 and 10.4 million in 2013. Loss for the year included change of redemption
amount of financial liability (2012: AED 34.9 million) and, therefore, loss before change of redemption amount was AED 59.2 million
in 2012. The gain from the change of redemption amount results from the measurement of limited partnership interests that are classified
as liabilities in accordance with IAS 32.
(7) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: AED 2.2 million; 2012: AED 0.9 million)
plus (ii) acquisition of intangible assets (2013: AED 0.5 million; 2012: AED 0.04 million).
(8) The capital expenditure ratio is the ratio of capital expenditures to net revenues.
As of December 31,
2012 2013
(unaudited)
(in AED million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 (0.2)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 17.9
(1) Net working capital is calculated as (i) inventories (December 31, 2013: AED 6.9 million; December 31, 2012: AED 9.9 million) plus
(ii) trade and other receivables (December 31, 2013: AED 7.7 million; December 31, 2012: AED 3.1 million) minus (iii) trade and other
payables (December 31, 2013: AED 14.7 million; December 31, 2012: AED 8.4 million).
126
Namshis net revenues more than tripled, from AED 16.3 million in 2012 to AED 53.2 million in 2013,
with gross profit improving from AED 5.4 million in 2012 to AED 24.3 million in 2013 due to growth of private
label merchandise and better management of inventory, which led to reduced discounting levels.
EBITDA margin improved from negative 359% in 2012 to negative 93% in 2013 due to scale effects
and significant improvement in marketing efficiency.
Net working capital decreased from AED 4.6 million as of December 31, 2012 to negative AED 0.2
million as of December 31, 2013 due to more efficient inventory management and supplier credit terms.
Cash and cash equivalents increased from AED 4.5 million as of December 31, 2012 to
AED 17.9 million as of December 31, 2013.
Based on preliminary management information data, Namshis net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the increase in gross
merchandise volume. EBITDA also improved in the six months ended June 30, 2014, compared to the six
months ended June 30, 2013, with EBITDA margin improving significantly.
The following non-financial key performance indicators are used to evaluate and steer Namshis
operations:
Year ended December 31, Six months ended June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless indicated
otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 36 108 67 184
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 36 76 57 128
Number of total unique visitors
(3)
(in million) . . . . . . . . . 9 8 4 5
Number of total orders
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 152 59 170
Gross merchandise volume
(5)
(in AED million) . . . . . . . 23 63 24 72
(1) Number of customers that have made at least one order as defined in total orders.
(2) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets and through mobile apps) (Google
analytics definition of users).
(4) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(5) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies), including value of vouchers.
General merchandise e-commerce companies
Our general merchandise companies offer a wide range of consumer goods in several categories
including electronics, home & living, fashion, sports, kids & babies, health & beauty and media. Each company
targets a particular high-growth region of the world.
The regional focus of these companies allows them to tailor their brands, product offering, delivery
options, marketing mix and payment methods to match local needs and reflect customer preferences. This
approach often demands that proprietary solutions are developed in order to ensure high service quality and
generate a sustainable competitive advantage, which often includes operating an own warehouse, in-housing
entire call centers, deploying dedicated last-mile delivery fleets, creating new payment methods, training local
talent in new disciplines, developing new systems and so forth.
The general merchandise companies operate a multifaceted business model that may include
(i) inventory-based business-to-consumer e-commerce, (ii) a third-party seller marketplace platform, (iii) a
consumer-to-consumer marketplace, (iv) fulfillment services and (v) proprietary payment solutions. An increased
focus on marketplace solutions is observed across the entire general merchandise portfolio, leading to a
fast-paced increase in product assortment and price competitiveness while preserving the companies economics
and mitigating inventory risk.
All companies provide their services both via advanced desktop platforms and, increasingly, through
native mobile applications for all major operating systems.
Launched in February 2012, Lazada Group has become a leading e-commerce department store for
assorted merchandise in Southeast Asia, specifically Indonesia, Malaysia, the Philippines, Singapore, Thailand
and Vietnam. Its operations also extend to Hong Kong/Shenzhen, which functions as a sourcing hub. Through
Lazada, its main online shopping destination retail platform, Lazada Group offers a marketplace solution
127
enabling third-party retailers to sell their products in addition to selling products owned by Lazada Groups retail
operations. Through Lamido, Lazada Groups consumer-to-consumer marketplace solution, transactions are
facilitated between third party sellers and buyers. Lazada Group has improved its visibility on social networks, as
evidenced by the increase in Facebook fans from 0.3 million in September 2012 to 7.5 million in June 2014. In
fiscal 2013, Lazada Group reported 56.8 million of net revenues.
Lazada Group addresses a population of approximately 540 million consumers across six fast growing
economies in Southeast Asia (Source: IMF, WEO Database, 2013). This population is very young, tech-savvy
and growing rapidly: 60% of the worlds youth population is located in the Asia Pacific region (Source: UN
ESCAP, Asia Pacific Forum on Sustainable Development, 2014). In terms of economic growth, the region is also
very promising. By 2018, the GDP of each country where Lazada Group operates is forecast to grow at rates
between 5.6% and 12.4% (Source: IMF, WEO Database, not including Singapore). Consumers are benefiting
from this strong economic growth, and the number of people with a disposable income above US$3,000 is
expected to exceed 145 million by 2015 (Source: WSJ Report, 2012).
Lazada Groups multi-tiered operating model can be divided into five segments, each offering a separate
stream of revenue.
Lazadas business-to-consumer segment enables Lazada to control its supply chain and directly
build reputation and trust with its customers.
Lazada operates an online marketplace platform, expanding the assortment of products on Lazadas
websites while reducing inventory risk.
Through its consumer-to-consumer segment (Lamido), Lazada Group is able to bring smaller
sellers online.
Through the fulfillment segment (Lazadaexpress), Lazada Group provides merchants e-commerce
logistics services, further driving operational efficiency.
Lazada Group is developing its own payment systems (helloPay), which will offer customers
trustworthy and reliable payment options while reducing costs for sellers.
A key driver of growth for Lazada is its market-leading mobile platform. Mobile visitors are directed to
a dedicated mobile site for an optimized user experience, and customers with Android, iOS or Windows Phone
can download Lazada apps designed specifically for their operating system. With approximately 2.0 million
downloads as of August 2014, the Lazada app for Android is ranked among the top four shopping applications in
Google Play across all of Lazadas markets (Source: Google Play App Store). Recently launched in January
2014, the Lazada app for iOS already has around 1.1 million downloads as of August 2014 and was featured as a
Best New App by Apple (Source: Apple App Store). Additionally, Lazada has partnered with key mobile
players in Southeast Asia, including LINE, WeChat and KakaoTalk. Lazadas visits from mobile devices, tablets
and Lazadas app increased from about 12% in the first quarter of 2013 to about 49% in the second quarter of
2014.
Lazada Group distinguishes itself in terms of its assortment with over 390,000 curated SKUs across
15 categories (as of second quarter 2014), its onsite experience and its fulfillment logistics.
In order to offer a broad assortment to its customers, Lazada leverages the online marketplace model,
which comprised approximately 45% of net merchandise value as of June 2014. In addition to its roughly 2,900
retail suppliers, Lazada has about 3,000 active marketplace merchants who currently drive assortment growth and
facilitate multi-source price competition (both numbers are as of the second quarter of 2014 and exclude
Lamido). Lazadas marketplace merchants contribute approximately 258,000 products to Lazadas online
assortment on top of Lazadas roughly 134,000 retail products (both numbers are as of the second quarter of 2014
and exclude Lamido).
Furthermore, Lazada Group focuses on making the onsite experience effortless and engaging. In
addition to offering a platform agnostic website, Lazada Group affords returning visitors a personalized
experience including product recommendations based on data such as the visitors browsing history. Lazada
Group is also focused on improving the relevance of search results and refining filter navigation.
Despite the logistical challenges posed by the geography and cultural diversity of Southeast Asia,
Lazada Groups fulfillment infrastructure has an unparalleled reach across the region. By finding logistical
partners, Lazada Group has developed a unique and complex supply chain that targets customers in rural areas
that were previously deemed hard to reach. As a result, more than 50% of its customers are located outside of tier
one metropolitan areas. To overcome the high variability of supplier sophistication in the region, Lazada Group
provides training for its merchants, offers merchants simple and intuitive online platforms, and has a diversified
128
supply system. Despite the multitude of languages spoken by its customers, Lazada Group strives to offer
superior customer service through multiple call centers that follow standardized processes and are centrally
controlled.
The following table provides an overview of Lazada Groups consolidated key financial indicators,
which have been derived from accounting or controlling records of Lazada Group and have been prepared on the
basis of Full IFRS:
Year ended
December 31,
2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.8
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50.7)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (89%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51.8)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2%
(1) Gross profit is calculated as (i) net revenues (2013: 56.8 million) minus (ii) cost of goods sold (2013: 53.2 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 51.3 million) plus (ii) depreciation of property, plant and equipment
(2013: 0.5 million) plus (iii) amortization of intangible assets (2013: 0.1 million). EBITDA includes share based payment expense that
amounted to 6.5 million in 2013.
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 0.6 million) plus (ii) acquisition of
intangible assets (2013: 0.4 million).
(6) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of December 31,
2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5.3)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182.6
(1) Net working capital is calculated as (i) inventories (December 31, 2013: 5.7 million) plus (ii) trade and other receivables
(December 31, 2013: 2.1 million) plus (iii) prepaid expenses (December 31, 2013: 0.3 million) minus (iv) trade and other payables
(December 31, 2013: 13.4 million).
Lazada Group experienced growing net revenues throughout the year, resulting in net revenues of
56.8 million for 2013. Cash generating working capital supported Lazada Groups capital efficiency. A change
in working capital from operations provided approximately 3 million in cash in 2013. Lazada Groups cash and
cash equivalents at the end of 2013 was 182.6 million.
Based on preliminary management information data, Lazada Groups net revenues increased in the six
months ended June 30, 2014, compared to the six months ended June 30, 2013, although by roughly half relative
to the corresponding increase in gross merchandise volume due to the shift from a pure e-commerce model
towards the attractive marketplace model. Due to the expansion of business, EBITDA loss increased in the six
months ended June 30, 2014, compared to the six months ended June 30, 2013, while EBITDA margin improved
considerably.
129
The following non-financial key performance indicators are used to evaluate and steer Lazada Groups
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 132 871 411 1,757
Number of total transactions
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 192 1,289 446 1,841
Number of total orders
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 1,244 444 1,365
Number of active customers
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . 132 774 402 1,410
Number of total unique visitors
(5)
(in million) . . . . . . . . . 43 103 54 70
Gross merchandise volume
(6)
(in million) . . . . . . . . . . . 9 65 24 73
(1) Number of customers that have made at least one transaction as defined in total transactions.
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace).
(3) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce excluding marketplace).
(4) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of
period.
(5) Number of total unique identifiers visiting the website in the period (including from mobile & tablets and through mobile apps)
(Google analytics definition of users).
(6) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for
comparison reasons between countries and companies).
Launched in May 2012, Linio believes it has become the most visited multi-category e-commerce
company addressing major Spanish-speaking Latin American countries, namely Colombia, Mexico, Peru,
Venezuela and, since July/August 2014, also Chile and Panama. Linio reported 48 million of net revenues in
fiscal 2013, a growth rate of 633% over 2012.
Linio is positioned in a highly attractive region. Latin America is expected to present strong growth,
with GDP projected to increase by 4.5% per annum in the coming five years (Source: IMF, WEO Database) and
non-food retail sales expected to grow 6.7% per annum, from US$462 billion in 2014 to US$600 billion in 2018
(Source: IMF, Goldman Sachs Research). The region is also home to an increasingly tech-savvy population, with
Mexico, for instance, having the fifth largest Facebook market worldwide (Source: Socialbaker). E-commerce
makes up 2.1% (Source: IMF, Goldman Sachs Research) of the non-food-retail sales but is expected to progress
rapidly as it has in other newly advanced economies. China, for example, is already expected to achieve a non-
food e-commerce penetration rate (excludes vending and grocery retailers) of around 10.9% (Source:
Euromonitor, Retailing and Internet Retailing by Country, 2014, based on fixed 2013 exchange rates).
Linios current target markets encompass a population of approximately 248 million (Source: IMF,
WEO Database, 2013), and with the companys planned expansion to an additional five Spanish-speaking Latin
American countries, this addressable market is expected to further increase by approximately 100 million people
(Source: IMF, WEO Database, 2013) and US$197 billion of non-food retail sales (Source: IMF, Goldman Sachs
Research). The companys unique value proposition is focused on offering a large product assortment at market-
leading prices, with a wide range of payment methods, a very reliable delivery service (reaching over 95% of the
population) and a very convenient shopping experience in the market.
To achieve such a goal, Linio is developing a multi-tiered operating model that can be divided into four
segments, each offering a separate stream of revenue.
Linios original inventory-based, business-to-consumer segment enables the company to control its
supply chain and make targeted assortment investments to boost sales and build customer loyalty.
Linio now also operates an online marketplace platform where third-party sellers can offer their
products, thereby expanding product assortment and mitigating inventory risk.
Through its nascent fulfillment services, Linio expects to be able to provide merchants with
e-commerce logistics solutions, further driving operational efficiency and increasing service quality
to end customers.
A proprietary payment solution will be developed in order to offer customers a trustworthy and
reliable payment option while reducing transaction costs.
130
One of the main drivers of Linios recent growth, the online marketplace model allows reputable
retailers to sell original/new products to Linio customers via a modern intermediating platform, in exchange for a
commission over the revenue generated. The platform handles the entire payment process and monitors
fulfillment so as to ensure a seamless purchase experience. For additional charges, Linio can also customize
dedicated shop-in-shops for selected vendors and brands, as well as operate their marketing and logistics fronts.
Finally, the marketplace model also allows for competing offers for similar products, thereby rendering attractive
prices for end customers without jeopardizing the companys economics.
The marketplace model has allowed for significant growth of Linios assortment. In July 2014, Linios
customers had access to more than 450 thousand active SKUs across 60 sub-categories (as of July 2014),
including electronics, home & living, fashion, sports, kids & babies, health & beauty and media. Linio has more
than 2 thousand active marketplace merchants (as of July 2014) who currently drive assortment growth and
facilitate price competition. Linio marketplace merchants contribute more than 150 thousand active SKUs to
Linios online assortment.
Accessibility through mobile devices is key to reaching potential customers in the regions where mobile
penetration outpaces internet desktop penetration. About 24% (as of July 2014) of all Linio traffic already comes
from mobile devices, compared to less than 5% in the second quarter of 2012, and accelerated growth is expected
as Linio has recently launched proprietary native iOS and Android apps.
Finally, as a genuinely customer-centric organization, Linio places the needs and convenience of its
shoppers in first place when designing its strategic and tactical approach. Linio was the first major e-commerce
platform in the region to offer cash-on-delivery as a payment method (which is quite important in a region with
such low credit card penetration), and it now offers delivery options that are faster than those of all its
competitors. As a core part of the business, customer service is handled by an internal team operating out of four
fully-owned call center facilities. In order to control the end-to-end fulfillment chain, Linio utilizes a proprietary
inventory management system and operates four warehouses in metropolitan areas. By partnering with major
logistics carriers and using dedicated last-mile delivery fleets in selected locations, Linio has been able to address
second, third and fourth tier areas that were not previously served by incumbents. As a result, the company has
rapidly achieved a highly engaged customer base, as evidenced by the approximately 2.0 million subscribers to
its daily newsletter and its 2.7 million fans on Facebook.
The following table provides an overview of Linios consolidated key financial indicators, which have
been derived from accounting or controlling records of Linio and have been prepared on the basis of Full IFRS:
Year ended
December 31,
2012 2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 47.9
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 633%
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.4) 4.7
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6%) 10%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (34.1)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (221%) (71%)
Profit / (loss) for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14.5) (35.9)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 1.5
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8% 3%
(1) Gross profit is calculated as (i) net revenues (2013: 47.9 million; 2012: 6.5 million) minus (ii) cost of goods sold (2013: 43.2 million;
2012: 6.9 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.5 million; 2012: loss of 14.6 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.1 million) plus (iii) amortization of intangible assets (2013: 0.05 million;
2012: 0.01 million). EBITDA includes share based payment expense that amounted to 4.5 million in 2013 and 3.1 million in 2012.
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 1.4 million; 2012: 0.4 million) plus
(ii) acquisition of intangible assets (2013: 0.1 million; 2012: 0.1 million).
(6) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
131
As of December 31,
2012 2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16.3) (4.0)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 21.1
(1) Net working capital is calculated as (i) inventories (December 31, 2013: 5.0 million; December 31, 2012: 2.5 million) plus (ii) trade
and other receivables (December 31, 2013: 1.6 million; December 31, 2012: 0.4 million) minus (iii) trade and other payables
(December 31, 2013: 10.7 million; December 31, 2012: 19.2 million).
As shown above, Linios net revenues increased strongly from 6.5 million in 2012 to 47.9 million in
2013 driven by an increase in both customer base and orders. Gross profit margin increased by 16 percentage
points as a result of Linios increasing scale and better negotiating power with suppliers. EBITDA margin
improved by 150 percentage points, from negative 221% in 2012 to negative 71% in 2013, as a result of
improved operating efficiency across all cost lines, such as more efficient marketing spend. At the same time,
Linios employee base more than doubled from 514 persons as of December 2012 to 1,246 persons as of
December 2013. During fiscal year 2013, Linio controlled its capital expenditures, reflected in the steady
decrease over net revenues. By the end of fiscal year 2013, Linio had cash and cash equivalents of 21.1 million.
Based on preliminary management information data, Linios net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, although significantly less than the
corresponding increase in gross merchandise volume due to the shift from a pure e-commerce model towards a
marketplace model. Due to the expansion of business, EBITDA loss increased in the six months ended June 30,
2014, compared to the six months ended June 30, 2013, while EBITDA margin improved.
The following non-financial key performance indicators are used to evaluate and steer Linios
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 38 343 145 561
Number of total transactions
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 54 569 176 476
Number of total orders
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 558 176 397
Number of active customers
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . 38 318 144 465
Number of total unique visitors
(5)
(in million) . . . . . . . . . 12 31 16 20
Gross merchandise volume
(6)
(in million) . . . . . . . . . . . 7 52 19 33
(1) Number of customers that have made at least one transaction as defined in total transactions.
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace).
(3) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(4) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of
period.
(5) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(6) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for
comparison reasons between countries and companies).
Launched in 2012, Jumia has become a frontrunner in bringing e-commerce to Nigeria, Cameroon,
Egypt, Ghana, Ivory Coast, Kenya, Morocco and Uganda. Today, Jumia is the largest online shopping mall in
Africa and expects to strengthen its market leadership with the launch of operations in various additional
countries across the continent by the end of 2014. Operations in South Africa are run by Jumias sister company,
Zando. In 2013, Jumia was named the best new retail launch of the year by the World Retail Congress and
became the first African company to receive the World Retail Award (Source: Ian McGarrigle, chairman of the
World Retail Congress). Through its desktop and mobile websites and mobile applications, Jumia currently gives
its customers access to over 56,000 SKUs offered by more than 3,800 brands in 11 different categories (as of
January 2014). It primarily focuses on fashion and electronics, with fashion comprising circa 30% of total net
merchandise value as of May 2014. Jumias operating model is based both on business-to-consumer e-commerce
and online marketplace, which allows retailers to sell their products to customers online via Jumias platform. In
fiscal 2013, Jumia reported 29.0 million of net revenues.
132
Jumia and Zandos geographic markets (Nigeria, Cameroon, Egypt, Ghana, Ivory Coast, Kenya,
Morocco, South Africa and Uganda) have a total population of approximately 492 million and a GDP of
approximately US$1.2 trillion. By 2018, the population is forecast to grow by one to three percent, and the GDP
of each country is expected to grow at rates between 4 and 13 percent (Source: IMF, WEO Database).
Currently, the African market is largely dominated by mobile use with an Internet penetration rate that is
expected to grow. Although the broadband penetration rate in Africa is currently at 5.1% (Source: BMI, Market
Data, 2014), approximately 13.6% of the population has a smartphone in 2014 (Source: WCIS Cellular
Forecasts). Smartphone use is forecasted to grow in the coming years, and by 2018, 33.3% of the population is
expected to have a smartphone (Source: WCIS Cellular Forecasts). Internet penetration rates are also forecasted
to increase in the markets where Jumia and Zando are active. In South Africa, for example, the Internet
penetration rate is expected to grow from 44.2% in 2013 to 52.4% in 2018 (Sources: IMF, WEO Database; IDC
Database). In Uganda, the Internet penetration is forecast to grow by 19.8% from 22.7% in 2013 to 42.4% in
2018 (Sources: IMF, WEO Database; BMI, Market Date). As a result, e-commerce sales are expected to grow in
the coming years.
Jumia has adapted to address the operational challenges in the region and is seen as the destination for
quality, which enables brands to quickly have access to the fast growing middle class in Africa. Jumias
operations are characterized by a balance of in-house and outsourced processes, with its own delivery fleets,
warehouses, production and call centers working closely together with selected partners. Jumia operates more
than 120,000 square feet of warehousing space in Lagos, Cairo, Casablanca, Nairobi and Abidjan, which help to
increase fulfillment speed and accuracy and improve the customer experience. In Nigeria, Jumias nine hubs and
its own delivery fleet gives it a target population reach exceeding 75%. Through its largely non-owned inventory
model involving a high share of consignment and cross-docking, Jumia minimizes inventory risk without
sacrificing the breadth of goods offered on its websites. Further, Jumia uses the cash on delivery payment method
to address a market in which approximately 80% of the population does not have a bank account (Sources:
Global Envision Report, 2013; IMF, WEO Database, 2013) and to overcome fears of Internet fraud.
The accessibility of Jumias websites on mobile devices is a key to reaching potential customers in its
target markets. Through the Jumia App for Android, customers can receive notifications of special offers and
daily deals, browse by category, brand, price, color and more, view detailed product descriptions with images and
customer ratings, manage their account and shopping bag, and select cash on delivery or secure mobile payment
options. In the first quarter of 2014, 28% of total visits to Jumias websites came from mobile devices, up from
14% a year before.
In order to drive future growth, Jumia aims to leverage synergies from its existing partnerships with
MTN and Millicom, two major telecommunications companies in Africa with over 170 million subscribers in
22 countries (Source: MTN and Millicom data as of December 31, 2013). Through these partnerships, Jumia
aims to increase traffic from mobile users through cross promotions, shared marketing campaigns, mobile apps,
the sharing of business data, cross-selling and cross-fertilization, as well as the joint use and construction of
certain infrastructure (e.g., the creation of Internet stations). In collaboration with MTN and Millicom, Jumia
plans to develop and grow a mobile payment platform. Further, these partnerships will foster an exchange of
knowledge and best practices across key functions such as human resources, marketing and information
technology and therefore facilitate development and growth of business.
To build the largest shopping mall in the African continent, Jumia plans to continue to develop its
marketplace model, thereby improving its assortment of goods while further reducing inventory risk. In addition,
Jumia aims to enhance the mix between fashion and electronics while continuing to improve its margins. Lastly,
Jumia aspires to acquire more customers and to expand to more untapped markets in Africa.
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The following table provides an overview of Jumias consolidated key financial indicators, which have
been derived from accounting or controlling records of Jumia and have been prepared on the basis of Full IFRS:
Year ended
December 31,
2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.0
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33.6)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (116%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35.1)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4%
(1) Gross profit is calculated as (i) net revenues (2013: 29.0 million) minus (ii) cost of goods sold (2013: 23.6 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 34.1 million) plus (ii) depreciation and impairment of property, plant
and equipment (2013: 0.4 million) plus (iii) amortization and impairment of intangible assets of (2013: 0.03 million). EBITDA
includes share based payment expense that amounted to 3.1 million in 2013.
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 1.1 million) plus (ii) acquisition of
intangible assets (2013: 0.1 million).
(6) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of
December 31,
2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.0)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2
(1) Net working capital is calculated as (i) inventories (December 31, 2013:3.9 million) plus (ii) trade and other receivables (December 31,
2013: 4.7 million) minus (iii) trade and other payables (December 31, 2013: 10.6 million).
Net revenues in 2013 were driven by significant order intakes in Jumias markets. The negative
EBITDA was due to overhead and marketing expenses in order to increase net revenues. Jumias capital
expenditure amounted to 4% of net revenues in 2013. Jumias net working capital was negative in 2013 on
account of their non-owned inventory strategy, particularly their high usage of cross-docking and consignment.
Based on preliminary management information data, Jumias net revenues increased in the six months
ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the corresponding
increase in gross merchandise volume. EBITDA loss remained broadly stable in the six months ended June 30,
2014, compared to the six months ended June 30, 2013, while EBITDA margin improved significantly.
The following non-financial key performance indicators are used to evaluate and steer Jumias
operations (Jumia and Zando). The key performance indicators presented below do not include Uganda:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 50 228 123 361
Number of total transactions
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 88 460 172 429
Number of active customers
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . 50 195 119 274
Number of total unique visitors
(4)
(in million) . . . . . . . . . 8 25 14 15
Gross merchandise volume
(5)
(in million) . . . . . . . . . . . 6 33 13 27
(1) Number of customers that have made at least one transaction as defined in total transactions.
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period (e-commerce and marketplace).
134
(3) Number of customers having made at least one transaction as defined in total transactions within the last 12 months before end of
period.
(4) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(5) The total value of total transactions sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for
comparison reasons between countries and companies).
Home & Living Companies
Westwing is an online retailer for a frequently changing, curated selection of home and living products
in 12 countries, including Germany, Italy, Brazil, Russia, France, Spain, Poland, the Netherlands, Austria,
Switzerland and most recently Kazakhstan and Belgium, with 111.4 million of net revenues in 2013 and
more than 70% of its revenues outside of Germany. Through its desktop and mobile websites and mobile
applications, Westwing inspires its mostly female customers to shop a hand-picked selection of deco products
and textiles for home and living as well as small and large (on-demand) furniture pieces sourced from a vast
variety of suppliers and from its own private labels.
Westwing distinguishes itself by its global and local sourcing of its inspiring curation of products and
the resulting high engagement and loyalty of its customers. Westwing sources the merchandise locally in a highly
fragmented market from over 3,000 suppliers relying on 7 logistics centers with more than 50,000 square meters.
By selling its merchandise internationally, Westwing is able to provide its customers with high value as a result
of its daily curated selection of brands and products in an inspiring and content-rich editorial environment as well
as a favorable competitive situation in a fragmented supplier environment. Westwings daily and inspiring
curation of selected brands and products leads to excellent customer loyalty, evidenced by Westwings over 70%
share of monthly orders from repeat customers. In addition, the high engagement on Westwings website with on
average more than 4 visits per month per unique logged-in member, as well as the average monthly engagement
on the site of over 20 minute per unique logged-in member with 2.9 million unique logged-in members in June
2014, further demonstrate the high loyalty of Westwings business model.
Strong local presence in its international markets with more than 1,100 employees and highly complex
multinational logistics helps Westwing to provide a constant quality of service and customer satisfaction and to
reduce return rates. Westwing pursues a zero-inventory model with a sell-first approach. Accordingly,
Westwing does not need to keep significant inventory. Westwing relies on a largely in-house developed and
maintained software architecture which is highly scalable and which includes full support for mobile platforms.
The server hardware is mostly owned by Westwing. Since its founding in 2011, Westwing has experienced
strong new customer growth and an increasing number of repeat purchases by existing customers, which have
been the keys to the economic success of Westwings business.
Westwings market encompasses a population of over 690 million people across 12 countries on
3 continents (Source: IMF, WEO Database, 2013). The overall size of the Western European home and living
market alone amounts to around US$204 billion in 2014 and is expected to grow by approximately 8% to around
US$221 billion in 2018 (Source: Euromonitor, Home and Garden, 2014 (consists of home furnishings and
homewares)). Westwing believes that home and living as a category has started to move online just recently and
therefore e-commerce penetration is expected to massively grow. In addition, home and living as a category has
advantages over other e-commerce categories, e.g. no fit problems. Westwing believes that it is ideally
positioned to continue gaining market share. A recent TV advertising campaign for its Italian business led to a
clear step-up in aided brand awareness. Westwing believes based on this successful TV advertising campaign
that TV is a significant opportunity to further accelerate Westwings growth. Westwing has seen a fast-growing
active customer base.
Westwing believes that it enjoys a strong competitive position. It is uniquely differentiated from its
competitors as a destination for curated, inspirational and at the same time affordable home and living products.
In addition, Westwing differentiates by offering consumers a huge variety of exciting and inspiring products
from over 3,000 suppliers which leads to a high degree of customer loyalty.
We invested in Westwing in September/October 2011 only shortly after the company had been founded
by the current CEO, the style director and three other co-founders in April 2011 and financed by business angels
and Holtzbrinck Ventures in June 2011.
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The following table provides an overview of Westwings key financial indicators, which have been
derived from accounting or controlling records of Westwing and have been prepared in accordance with German
GAAP:
Year ended
December 31,
2012 2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.8 111.4
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 143%
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.8 44.8
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26% 40%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (61.9) (39.5)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (135%) (35%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64.0) (41.5)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.2
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3% 1%
(1) Gross profit is calculated as (i) net revenues (2013: 111.4 million; 2012: 45.8 million) minus (ii) cost of goods sold (2013:
66.6 million; 2012: 34.0 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 62.2 million) plus (ii) depreciation of
property, plant and equipment and amortization of intangible assets (2013: 0.7 million; 2012: 0.3 million). Operating profit or loss is
calculated as (i) gross profit (2013: 44.8 million; 2012: 11.8 million) minus (ii) selling expenses (2013: 64.4 million; 2012:
50.9 million) minus (iii) general and administrative expenses (2013: 19.6 million; 2012: 22.4 million) plus (iv) other income (2013:
0.5 million; 2012: 0.2 million) minus (v) other operating expenses (2013: 1.5 million; 2012: 0.9 million).
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 1.1 million; 2012: 1.4 million) plus
(ii) acquisition of intangible assets (2013: 0.2 million; 2012: 0.1 million).
(6) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of December 31,
2012 2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.6) (14.3)
Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8 29.8
(1) Net working capital is calculated as (i) inventories (December 31, 2013: 5.7 million; December 31, 2012: 2.8 million) plus (ii) trade
and other receivables (December 31, 2013: 3.6 million; December 31, 2012: 1.9 million) minus (iii) trade and other payables
(December 31, 2013: 21.0 million; December 31, 2012: 9.2 million) minus (iv) advance payments received (December 31, 2013:
2.6 million; December 31, 2012: 2.2 million).
Westwings net revenues increased by 143% from 45.8 million in 2012 to 111.4 million in 2013 due
to an increase in the number of active customers and loyalty from existing customers across its markets.
Gross profit margins improved from 26% in 2012 to 40% in 2013 based on more favorable supply
conditions and higher volumes and has been further increased in 2014.
Westwings EBITDA improved from negative 61.9 million in 2012 to negative 39.5 million in 2013
due to the benefits from investments into global teams and technology and the impact of customer acquisition
initiatives.
Westwing showed in both periods negative net working capital. Its cash in hand, bank balances and
checks were further strengthened by an additional funding of 33 million in 2014.
Based on preliminary management information data, Westwings net revenues increased in the six
months ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the
corresponding increase in gross merchandise volume. Due to the expansion in business, EBITDA loss increased
in the six months ended June 30, 2014, compared to the six months ended June 30, 2013, while EBITDA margin
improved.
136
The following non-financial key performance indicators are used to evaluate and steer Westwings
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless indicated
otherwise)
(in thousands, unless indicated
otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 228 583 410 835
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 226 447 360 582
Number of total unique logged-in members
(3)
. . . . . . . . . 4,465 7,725 5,355 7,642
Number of total orders
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524 1,164 530 922
Gross merchandise volume
(5)
(in million) . . . . . . . . . . . 47 118 56 85
(1) Number of customers that have made at least one order as defined in total orders.
(2) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period.
(3) Total number of members who have logged in at least once during period (including new members). This key performance indicator
excludes Brazil before January 2013. Login tracking was not available in Brazil before 2013 because the version of the technology
platform database used by Brazil did not support login tracking until the end of 2012. Therefore, there is no such data available before
2013.
(4) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected &
returned), i.e., total numbers of orders shipped in the period.
(5) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies).
Launched in 2012, Home24 has become a leading full-shop online retailer for home and living products
in currently seven countries including Germany, Brazil (under the Mobly brand), Belgium, France, the
Netherlands, Switzerland and Austria, with 92.8 million of net revenues in fiscal 2013 and more than 40% of its
net revenues outside of its home market Germany. Home24 provides its customers with access to a significant
assortment in home and living e-commerce comprising over 100,000 products as of September 1, 2014 which
makes Home24 by its own estimate the largest pure-play home and living e-commerce business. Home24
products are offered at very attractive prices and lead times and are delivered to customers free of charge.
Home24s assortment is focused on large furniture but also includes a broad variety of small furniture, garden
and leisure articles, accessories and lighting products sourced from a fragmented supplier base with a significant
high-margin private label potential. As of July 2014, the customer base reached 1,000,000 customers, and is
rapidly expanding. Home24 is able to show profitable customer cohorts on first purchase, a result of strong unit
economics, high basket size, relatively low returns and an efficient marketing mix. The rapidly growing customer
base is seen as a significant asset of the company, providing profitable loyalty effects over the customer lifetime.
More than 30% of Home24s European traffic is generated on its proprietary mobile and tablet sites.
Home24 believes that it distinguishes itself not only by its wide assortment, but also by the degree of
product availability and the quality of its fulfillment and customer service as a result of Home24 controlling all
relevant aspects of its inventory infrastructure and its global and hard-to-replicate sourcing setup. Home24
believes that its fulfillment and customer service are best in class. Through its differentiated inventory and
logistics model, combining four different fulfillment channels (warehouse, cross docking, dropship and partner
program) via all relevant logistics players, Home24 seeks to minimize inventory risks while at the same time
growing the business through its negative cash cycle without investments into working capital.
While Home24s supplier base is significantly fragmented, it has established long-term relationships
with over 400 suppliers. Home24 has significant sourcing expertise in Asia Pacific and Central Eastern Europe
and has implemented real-time electronic data interchange with many important suppliers. Since its launch in
2012, Home24 has experienced strong customer growth and a continuous improvement in customer satisfaction,
which have been instrumental for the economic success of its business. Home24 faces relatively low return rates
and an increasing share of returning customers.
The addressable market in Western Europe may reach a volume of US$221 billion by 2018 (Source:
Euromonitor, Home and Garden, 2014 (consists of home furnishings and homewares)). Home24 believes that the
trend towards online in home and living has just started and, accordingly, expects an acceleration of online
market growth across the entire category. In addition, home and living has advantages over other categories, such
as no fitting problems, higher basket sizes, limited seasonality and only limited competition. Fuelled by a
growing base of active Internet and smartphone users, Home24 expects the Western European market alone to be
a huge opportunity. In addition, e-commerce growth is gaining significant traction also in geographies outside
Western Europe, e.g. Latin America. Home24 dominates the online space with 47% of the brand search volume
137
(the data refer to Home24 Germany) compared to 22% of avandeo, 13% of Fab and 12% of Fashion for Home
(Source: Google data, brand search volumes, fourth quarter of 2013). It also stands out with best-in-class
customer satisfaction ratings of 4.5 out of 5 points for Home24 Germany as of July 31, 2014 (Source: Trusted
Shops customer reviews).
As the industry continues to grow, Home24 strives to expand its business. Home24 plans to increase its
attractiveness for new customers by complementary assortments, seamless fulfillment and efficient online
marketing campaigning. It will further fuel profitable expansion by developing its private label business and by
reinforcing brand building. The expansion will be technically underpinned by a shift from third-party to own
operations and will focus on best-in-class customer experience. Home24 is able to support all core processes
through in-house developed IT systems ranging from the shop development to logistic processes.
The following table provides an overview of Home24s consolidated key financial indicators, which
have been derived from accounting or controlling records of Home24 and have been prepared on the basis of
EU-IFRS:
Year ended
December 31,
2012 2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.1 92.8
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 50%
Gross profit
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 36.2
Gross profit margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30% 39%
EBITDA
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.7) (37.9)
EBITDA margin
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (130%) (41%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (81.6) (41.8)
Capital expenditures
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 2.8
Capital expenditure ratio
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7% 3%
(1) Gross profit is calculated as (i) net revenues (2013: 92.8 million; 2012: 62.1 million) minus (ii) cost of goods sold (2013:
56.6 million; 2012: 43.7 million).
(2) Gross profit margin is the ratio of gross profit to net revenues.
(3) EBITDA is calculated as (i) operating profit or loss (2013: loss of 40.2 million; 2012: loss of 81.1 million) plus (ii) depreciation of
property, plant and equipment (2013: 0.4 million; 2012: 0.4 million) plus (iii) amortization of intangible assets (2013: 1.9 million;
2012: 0.03 million). EBITDA includes share based compensation expense that amounted to 6.4 million in 2013 and 5.6 million in
2012.
(4) EBITDA margin is the ratio of EBITDA to net revenues.
(5) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 0.4 million; 2012: 1.2 million) plus
(ii) acquisition of intangible assets (2013: 2.4 million; 2012: 2.9 million).
(6) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of December 31,
2012 2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 (4.3)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.2 34.0
(1) Net working capital is calculated as (i) inventories (December 31, 2013: 7.0 million; December 31, 2012: 8.3 million) plus (ii) trade
and other financial receivables (December 31, 2013: 4.2 million; December 31, 2012: 4.0 million) minus (iii) trade and other payables
(December 31, 2013: 15.5 million; December 31, 2012: 11.7 million).
Home24s net revenues showed a strong year-on-year growth, increasing by 50% from 62.1 million in
2012 to 92.8 million in 2013.
Gross profit margins improved from 30% in 2012 to 39% in 2013 based on more favorable purchasing
conditions and the development of its own private label brands. Home24s other variable cost items, including
cost of goods sold, fulfillment, marketing and other operational expenditure showed a comparably favorable
development.
Home24s EBITDA showed a significant improvement in profitability, improving from negative
80.7 million in 2012 to negative 37.9 million in 2013.
Home24s net working capital decreased from 0.5 million as of December 31, 2012 to negative
4.3 million as of December 31, 2013 by turning the cash cycle and generating more cash with additional
revenues.
138
Based on preliminary management information data, Home24s net revenues increased in the six
months ended June 30, 2014, compared to the six months ended June 30, 2013, broadly in line with the
corresponding increase in gross merchandise volume. EBITDA improved in the six months ended June 30, 2014,
compared to the six months ended June 30, 2013, while EBITDA margin improved significantly.
The following non-financial consolidated key performance indicators are used to evaluate and steer
Home24s operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Number of total customers
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . 287 694 492 962
Number of active customers
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . 287 435 373 515
Number of total orders
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379 537 268 367
Gross merchandise volume
(4)
(in million) . . . . . . . . . . . 66 98 48 69
(1) Number of customers that have made at least one order as defined in total orders.
(2) Number of customers having made at least one order as defined in total orders within the last 12 months before end of period.
(3) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(4) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies).
Food e-commerce company
Founded in 2011, Hellofresh delivers fresh ingredients accompanied by healthy recipes to food
enthusiasts across five countries, generating 14.2 million of net revenues in fiscal year 2013. Hellofreshs
concept is to deliver convenience to modern households doorsteps: weekly boxes of high-quality ingredients
pre-measured to match corresponding recipes, which make do-it-yourself fine dining possible without
cumbersome trips to the grocery store. Hellofresh currently offers recipe-kit boxes with fresh and local
ingredients to its subscribers in Germany, Austria, the United Kingdom, the Netherlands, Australia and the
United States.
Hellofresh works on the basis of a soft subscription model, according to which subscribers are
provided with weekly recipe-kit boxes of three to five meals each and the possibility to opt out until a few days
before the delivery date. This period allows Hellofresh to confirm orders with its suppliers and to operate on a
just-in-time business model that ensures that food is not wasted. Menus are created by local nutritionists several
weeks in advance, tailored to match each markets seasonality and market prices. Hellofresh sources all
ingredients from independent local suppliers, following a fine-tuning process after the menu is created to allow
for just-in-time ordering to attain zero inventory and very low fulfillment costs per order. In addition to its quick
and healthy recipes, Hellofreshs ongoing quality check of ingredients and one-day guaranteed delivery with
insulated packaging or via refrigerated vehicles for extra freshness have created a valuable subscriber base built
on strong customer loyalty. The goal of Hellofresh is that the weekly deliveries become part of its customers
lifestyle. Hellofreshs target customers are families and couples. The average customer is typically between 30
and 50 years of age. Hellofresh believes that it has a very loyal customer base, which is demonstrated by a high
NPS and a low return/refund rate.
Hellofresh is tapping into one of the most traditional industries with a non-traditional approach: food
constitutes the second largest household expenditure globally (with rent being the largest), whereas online
grocery shopping is still a novel concept in even the most developed economies. According to Euromonitor, the
food and drink e-commerce market in Western Europe is expected to grow by 47% from 2014 to 2018. The
markets in the United States and Australia are expected to grow by 75% and 91%, respectively, over the same
period (Source: Euromonitor, Food and Drink Internet Retailing, 2014). While Hellofreshs market segment is
largely untapped in its markets outside the United States, it competes directly with two players, Blue Apron and
Plated, in the United States. Hellofresh also faces competition from online supermarkets, other box providers that
offer a different product set and from providers of readymade meals. Starting in 2015, Hellofresh intends to
expand its geographic reach by expanding into a limited number of new countries. It also plans to expand its
product offerings through broadening the range of its box types on offer and the potential rollout of other food-
adjacent verticals.
139
The following table provides an overview of Hellofreshs key financial indicators, which have been
taken from accounting and controlling records of Hellofresh and have been prepared on the basis of German
GAAP:
Year ended
December 31,
2012 2013
(unaudited)
(in million)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 14.2
Year-on-year growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 510%
EBITDA
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.2)
EBITDA margin
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (260%) (37%)
Loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.0) (5.4)
Capital expenditure
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 0.1
Capital expenditure ratio
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 0%
(1) EBITDA is calculated as (i) result of ordinary business (2013: loss of 5.4 million; 2012: loss of 6.0 million) plus (ii) interest and
similar expenses (0.0 million; 2012: 0.0 million) minus (iii) interest and similar income (2013: 0.0 million; 2012: 0.0 million) plus
(iv) amortization and depreciation of intangible assets and of property, plant and equipment (2013: 0.1 million, 2012: 0.0 million).
(2) EBITDA margin is the ratio of EBITDA to net revenues (2013: 14.2 million, 2012: 2.3 million).
(3) Capital expenditures are calculated as (i) purchase of property, plant and equipment (2013: 0.0 million) plus (ii) acquisition of
intangible assets (2013: 0.0 million).
(4) The capital expenditure ratio corresponds to the ratio of capital expenditure to net revenues.
As of December 31,
2012 2013
(unaudited)
(in million)
Net working capital
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2) (0.8)
Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 3.8
(1) Net working capital is calculated as (i) inventories (2013: 0.5 million; 2012: 0.1 million) plus (ii) trade receivables (2013:
0.4 million; 2012: 0.1 million) minus (iii) trade payables (2013: 1.5 million; 2012: 0.4 million) minus (iv) advance payments
received (2013: 0.1 million; 2012: 0.0 million).
Hellofreshs net revenues increased from 2.3 million in 2012 to 14.2 million in 2013 due to strong
organic growth in its existing markets. Hellofresh achieved about half of its net revenues in continental Europe,
about a quarter in the United Kingdom, with Australia and the United States accounting for the rest. Hellofreshs
EBITDA margin improved significantly from negative 260% in 2012 to negative 37% in 2013 due to increased
marketing efficiency and its scalable organizational setup. Between the two periods presented, Hellofreshs net
working capital decreased.
Based on preliminary management information data, HelloFreshs net revenues increased in the six
months ended June 30, 2014, compared to the six months ended June 30, 2013. This increase was roughly in line
with the corresponding increase in the number of servings delivered. Compared to the same period, EBITDA loss
remained broadly stable in the six months ended June 30, 2014, while EBITDA margin improved significantly.
The following non-financial key performance indicators are used to evaluate and steer Hellofreshs
operations:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Number of total unique visitors
(1)
. . . . . . . . . . . . . . . . . . . . . . 336 1,950 783 2,479
Active subscribers (ordered in last 3 months)
(2)
. . . . . . . 7 33 19 81
Number of servings delivered
(3)
. . . . . . . . . . . . . . . . . . . . . . . . 375 2,372 842 3,945
(1) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(2) Number of people subscribed to services and having ordered at least once during the last three months.
(3) Number of all servings/meals sold and shipped to customers in period.
140
Emerging Stars
Our emerging stars include two emerging market retail e-commerce companies, four marketplace
companies and three financial technology companies. Based on the latest financing rounds, which took place
between May 2012 and August 2014, our emerging stars were valued at 565 million, corresponding to a
valuation of the Issuers direct or indirect stakes in these companies of 303 million. The following table
provides an overview of the LPVs of our emerging stars and our stakes in these emerging stars. The LPVs shown
in the following table are unaudited numbers that were calculated based on accounting and controlling records of
the Issuer. The LPVs are based on the investment or capital commitment made by a third party, i.e., an investor
other than the Issuer, in the latest financing round divided by the stake acquired by such third party in the
financing round or a secondary transaction. This means that the valuations shown represent post-money, post-
capital commitment valuations. Our quotas are based on the latest available data, as of August 31, 2014. The
valuations reflect the specific circumstances under which the relevant investor made its investment, including the
specific terms of the investments, such as liquidation preferences, and the insights, assumptions and expectations
of the relevant investors at that point in time. The calculation of LPVs is not defined by German GAAP and other
companies may compute LPVs using other methods or definitions than the Issuer. See also Risk FactorsRisks
Related to the Issuer and Our CompaniesWe disclose in this prospectus valuations derived from investments in
the Issuer and our companies. These valuations may not reflect the past, present or future fair values of the
Issuer or our companies, and potential investors in this offering should not place undue reliance on these
valuations. None of the emerging stars showed a net profit in fiscal 2013.
(1) Date reflects first commercial registry entry (operational launch date may differ).
(2) Date reflects the notarization date of the last financing round.
(3) FabFurnish and Zanui, both as defined below, have been funded through intermediate holdings (Bigfoot I and Bigfoot II, respectively).
There were no external financing rounds and hence no LPV.
(4) As of August 31, 2014.
The following sections contain financial as well as non-financial indicators for our emerging stars.
While we seek to use comparable definitions of similarly labelled non-financial performance indicators for
companies that operate in the same sector, the definitions need to take into account the individual characteristics
of each sector. As a result, they may vary from one sector to the other and, accordingly, similarly labelled key
operating figures for companies that operate in different sectors may have been defined differently and may not
be comparable.
E-commerce companies
FabFurnish engages in the online home and furniture business in India. Incubated in 2012, FabFurnish
has leapfrogged online competitors to become the leading furniture e-commerce player in India. In compliance
with the regulatory framework for foreign investment in India, FabFurnishs own operations are limited to
business-to-business transactions, and FabFurnish works together with an independent third party, which enters
into contracts with, and delivers products to, Indian customers under the FabFurnish brand.
141
Focused on the mass market, affordable pricing segment, FabFurnish provides its customers with access
to a very sizeable and growing online assortment comprising over 60,000 products and 500 brands across more
than 50 categories (as of July 2014). Through its mobile and tablet friendly websites, FabFurnish provides its
customers with superior online visual merchandising, including 360 degree views and product videos.
FabFurnishs unique payment options include pre-pay, part-pay and cash on delivery. FabFurnish has established
an efficient operational backbone with a strong third-party delivery and after-sales network serving over
3,500 towns and cities across India.
FabFurnish boasts strong unit economics with diversified revenues and high gross margins, facilitating
the recovery of CACs in the first year of purchase. In addition, FabFurnish has a deep, product-specific sourcing
network and supply chain infrastructure spanning more than five countries.
The following table shows FabFurnishs gross merchandise volume (in INR million), number of orders
and number of unique visitors for the years ended December 31, 2012 and 2013 and for the six months ended
June 30, 2013 and 2014:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Gross merchandise volume
(1)
(in INR million) . . . . . . . . . . . . . . . . . . . 72 369 128 362
Number of orders
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 187 64 190
Number of unique visitors
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,750 10,005 4,781 8,100
(1) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies); only reflects orders directly placed on website.
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period; only reflects orders directly placed on website.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
Zanui is one of Australias leading online shopping destinations for furniture and homewares, offering
over 24,000 products across all categories.
Zanui has a fast desktop site that is rich in content and complemented by a state-of-the-art mobile site
offering customers a superior shopping experience. Its robust and scalable technology platform allows for fast
and efficient order processing. This market leading platform features an order management extranet for suppliers,
a warehouse management system and country-wide logistics control, all of which allows for faster dispatch
times. Zanuis top brands and inspirational product range are sourced through strong relationships with local and
international suppliers. Zanui also offers its own collection of Zanui-branded products sourced from leading
international manufacturers.
The following table shows Zanuis gross merchandise volume (in AUD million), number of orders and
number of unique visitors for the years ended December 31, 2012 and 2013 and for the six months ended
June 30, 2013 and 2014:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Gross merchandise volume
(1)
(in AUD million) . . . . . . . . . . . . . . . . . . 3 4 1 3
Total number of orders
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 29 10 22
Total number of unique visitors
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,432 1,537 670 980
(1) The total value of total orders sold in period, excluding taxes and shipping costs (taxes and shipping costs excluded for comparison
reasons between countries and companies), including value of vouchers and coupons.
(2) Total number of valid (i.e., not failed or declined) orders starting the fulfillment process less cancelled orders (before rejected and
returned orders), i.e., total number of orders shipped in the period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
142
Marketplace companies
Launched in 2012, foodpanda operates an online marketplace for food delivery and take-away in
26 countries across Central and Eastern Europe, the Middle East (under the brand name hellofood), Russia &
CIS, India and Asia Pacific, with a combined population of over 2.5 billion people and strong indicators for
untapped market potential. foodpanda focuses on obtaining a strong position in rapidly growing emerging
markets.
foodpanda has a proven business concept modeled after successful companies in the United States and
Western Europe. Through their mobile, tablet or desktop browsers, foodpanda customers can order food from
over 13,300 partner restaurants around the world. foodpandas largely scalable and proven marketplace model is
based on transactional commission payments from its partner restaurants. Its automated state-of-the-art order
transmission technology allows for efficient order processing and is integrated with international point-of-sales
systems. foodpanda users often become loyal, repeat customers, both on the restaurant side, due to incremental
revenue generation for partner restaurants, and on the end-consumer side, as a result of the convenience, choice,
customer service, and mobile focus offered by foodpandas online platform.
In June 2014, foodpanda acquired Delivery Club, a Russian online food delivery marketplace. Delivery
Club was founded in 2009 and offers its services in 19 Russian cities.
The following table shows foodpandas gross transaction volume (in million), number of orders,
number of listed restaurants, commission and number of unique visitors for the years ended December 31, 2012
and 2013 and for the six months ended June 30, 2013 and 2014:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013
2014
(excluding
Delivery
Club)
2014
(including
Delivery
Club)
(6)
(unaudited) (unaudited) (unaudited)
Gross transaction volume
(1)
(in million) . . . . . . . . . . . . . . . . . 0.7 5.8 1.7 8.8 27.1
Total number of orders
(2)
(in thousands) . . . . . . . . . . . . . . . . . . . 54 423 123 639 1,340
Number of listed restaurants
(3)
(in thousands) . . . . . . . . . . . . . 1.2 6.9 3.2 12.0 13.3
Commission
(4)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.7 0.2 1.0 n/a
Number of unique visitors
(5)
(in million) . . . . . . . . . . . . . . . . . . 1.4 6.7 2.6 5.6 12.6
(1) The total value of total orders sold in period, including commission, delivery and service fees, excluding taxes.
(2) Total number of orders booked and delivered.
(3) Total number of restaurants available to customers at end of period (excluding restaurants foodpanda has discontinued business with).
(4) Total commission taken for orders as defined in total orders.
(5) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
(6) Represents pro-forma figures (Delivery Club transaction closed in June 2014).
Wimdu operates a global online marketplace for short term rentals and private accommodation that aims
to unite travelers with hosts in Africa, Asia Pacific, China, Europe, India, Japan, Latin America, the Middle East,
North America, Russia and South Korea.
Launched in Berlin in 2011, Wimdu has experienced strong organic growth resulting in an inventory of
over 250,000 listings. Its strong, established relationships with hosts provide a unique supply of accommodations
for customers. To ensure long-term customer satisfaction, Wimdu strictly monitors its hosts for quality control.
Additionally, Wimdus technology platform features a ranking algorithm optimized for conversion and customer
satisfaction. Furthermore, Wimdus marketing gross profit margin has been positive for the last 21 months,
reflecting the quality of its marketing strategy.
143
The following table shows Wimdus gross transaction volume (in million), number of customer
nights, number of bookings and number of room nights for the years ended December 31, 2012 and 2013 and for
the six months ended June 30, 2013 and 2014:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
(in thousands, unless
indicated otherwise)
(in thousands, unless
indicated otherwise)
Gross transaction volume
(1)
(in million) . . . . . . . . . . . . . . . . . . . . . . . . 53 70 40 48
Number of customer nights
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,376 3,602 1,972 2,655
Number of bookings
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 176 96 116
Number of room nights
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832 1,190 653 835
(1) Total value of bookings made in period including taxes and commission.
(2) Room nights times number of customers for each booking.
(3) Total number of valid (i.e., not failed or declined) bookings made in period.
(4) Total number of valid bookings times number of rooms and nights for each booking
CupoNation is one of the leading savings platforms for coupons and discounts connecting savvy
shoppers with top brands. CupoNation is building a global couponing brand and is currently active in
15 countries across Europe, CIS, India, Brazil and Australia.
Since its launch, CupoNation has demonstrated excellence in online marketing and traffic generation. It
has achieved strong performance in search engine rankings for the most important keywords. Its partnerships
with top online news portals, such as Welt.de, in almost all markets has helped generate additional traffic.
On the vendor side, CupoNation has excellent relationships with brands and retailers. Its dedicated key
account managers for major brands and retailers contribute to the width and depth of coupon offerings.
CupoNation earns a commission for every transaction that it successfully facilitates on behalf of its retailers.
Based on accounting and controlling records of CupoNation that were prepared in accordance with
German GAAP, CupoNation GmbH showed a net loss for the period of 3.0 million (unaudited, unconsolidated)
for the year ended December 31, 2013.
The following table shows CupoNations gross transaction volume (in million), number of
transactions, number of active retailers, take rate/commission and number of unique visitors for the six months
ended June 30, 2013, December 31, 2013 and June 30, 2014:
Six months
ended
June 30,
Six months
ended
December 31,
Six months
ended
June 30,
2013 2013 2014
(unaudited)
Gross transaction volume
(1)
(in million) . . . . . . . . . . . . . . . . . . . . . 1 6 24
Number of transactions
(2)
(in thousands) . . . . . . . . . . . . . . . . . . . . . . 33 214 502
Number of active retailers
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676 2,036 13,007
Take rate/commission
(4)
(in thousands) . . . . . . . . . . . . . . . . . . . . . . 104 440 1,329
Number of unique visitors
(5)
(in thousands) . . . . . . . . . . . . . . . . . . . 905 2,227 6,708
(1) Total value of transactions as defined in total transactions including taxes (basis for commission calculation).
(2) Total number of transactions requested through CupoNation and its affiliate networks (i.e., including pending, validated/paid and
refused transactions - e-commerce and lead generation).
(3) Number of retailers (one per company and country) that have offered transactions for CupoNation within the period (only partly
monetized to date).
(4) Total amount of commission assignable to all transactions as defined in total transactions.
(5) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
Helpling operates a global online marketplace where private households as well as small and medium
sized companies can book professional cleaning services for a fixed fee. Bookable services include dusting,
vacuuming, laundry, window cleaning and more.
144
Currently live in 67 cities across five countries (Germany, France, the Netherlands, Austria and
Sweden), Helpling already has more than 9,000 hours booked and more than 160,000 unique visitors as of
June 30, 2014. Helpling is strongly committed to providing a safe and trustworthy experience for its customers.
In addition to the background check that is conducted on each service provider, Helpling offers an authentic
forum on its website for customer review.
Helpling is initially targeting 12 markets in Europe, with plans to launch a second wave of expansion to
Brazil and beyond. Helpling hopes to take advantage of an additional growth opportunity by expanding into
additional household services, such as home repair, lockout services, removal services and animal care.
The following table shows Helplings gross transaction volume (in thousand), number of hours
booked and number of unique visitors for the month ended March 31, 2014, April 30, 2014, May 31, 2014 and
June 30, 2014:
For the month ended
March 31,
2014
April 30,
2014
May 31,
2014
June 30,
2014
(unaudited)
Gross transaction volume
(1)
(in thousand) . . . . . . . . . . . . . . . . . . . . . . n/a 10 53 120
Number of hours booked
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 750 4,092 9,127
Number of unique visitors
(3)
(in thousand) . . . . . . . . . . . . . . . . . . . . . . . 2 47 122 168
(1) Total value of hours booked and paid in period.
(2) Total number of hours booked and paid in the period.
(3) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
Financial technology companies
Lendico is an online lending platform that facilitates peer-to-peer loans at attractive terms,
disintermediating and replacing traditional banks. It is currently live in Austria, Germany, Poland, South Africa
and Spain, with plans to launch in other countries in Europe in 2014 and beyond to build the worlds premier
global online lending marketplace. Worldwide, global consumer credits present an approximately US$12 trillion
opportunity (Source: Euromonitor, Consumer Finance, 2014). Lendico is the only online lending platform for
prime borrowers that takes an international approach and that operates marketplaces in more than a single
country.
Similar to its successful U.S.-based peers, Lendicos business concept is scalable, is purely transaction-
based and has multiple revenue streams. First, the borrower applies online through Lendico for a loan of up to
25,000. If approved, the borrower is charged an upfront origination fee and an interest rate determined by the
borrowers credit risk and the loan duration. On the opposite side of the transaction, investors can sign in to
Lendico and review key borrower data, which includes income and credit score information but not the
borrowers name or other identifying information. Investors can choose to fund pieces of their peers loans in
increments of 25. Monthly interest and principal payments made by the borrower are directly transferred to the
bank account of the investor.
Lendicos role in this process is to conduct a credit assessment of loan applicants, which is performed
by Lendicos experienced underwriters through Lendicos proprietary, highly efficient and thorough credit
appraisal system. Lendicos risk-adjusted pricing engine automatically calculates interest rate quotes that are
competitive and set according to a transparent and fair pricing scheme. Once investors are found to fully fund a
borrowers loan application, Lendico issues the loan (either directly or through a partner bank, depending on the
jurisdiction) and sells the loan slices to investors. In exchange for the services provided by its platform, Lendico
receives an origination fee from the borrower as well as an ongoing service fee on the investors cash flows. As it
uses advanced technology for pricing and underwriting and avoids having to maintain a branch infrastructure or
comply with reserve requirements, the cost structure of online marketplace lenders like Lendico is about 60%
lower than the cost structure of traditional banks, providing strong margin potential (Source: McKinsey; Lending
Club; Liberum).
Based on accounting and controlling records of Lendico that were prepared in accordance with German
GAAP, ECommerce Holding II S. r.l. showed a net loss for the period of 3.2 million (unaudited, consolidated)
for the period from August 30, 2013 to December 31, 2013.
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The following table shows Lendicos number of loans issued, loan volume of newly issued loans (in
million), loan applications received and number of unique visitors for the months ended January 31, 2014 and
June 30, 2014:
For the month ended
January 31,
2014
June 30,
2014
(unaudited)
Number of loans issued
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 65
Loan volume of newly issued loans
(2)
(in thousand) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 376
Number of loan applications received
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,343 5,675
Number of unique visitors
(4)
(in thousand) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 143
(1) Number of loans (newly) issued in period.
(2) Loan volume (newly) issued in period.
(3) Number of loans requested (loan applications sent to Lendico by potential borrowers; with and without full documentation; accepted and
rejected).
(4) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
PAYMILL operates an online payment solution service for small to mid-sized merchants. It was
launched in Germany in mid-2012 and is currently active all over Europe, with plans to launch operations in the
Asia-Pacific region in 2015. Through PAYMILL, online merchants can accept payments in up to 100 currencies
while presenting one face to their customers across all countries. Payment methods supported by PAYMILL
include all common card schemes and some local payment methods.
PAYMILL provides a developer-friendly, transparent and safe way for merchants to accept payments
online. Its user-friendly programming interface increases merchants conversion rates through fast and individual
page integration without the need to redirect customers to another webpage. To improve transparency,
PAYMILL has established a simple, transaction-based pricing scheme with no monthly fees or hidden costs.
PAYMILL complies with industry security standards like PCI-DSS, including comprehensive risk and anti-fraud
measures, and is certified by German TV Saarland and is an Authorized Partner of Trusted Shops.
Based on accounting and controlling records of Paymill that were prepared in accordance with German
GAAP, Paymill GmbH showed a net loss for the period of 4.7 million (unaudited, unconsolidated) for the year
ended December 31, 2013.
The following table shows PAYMILLs gross transaction volume (in million), number of transactions
and number of active merchants for the years ended December 31, 2012 and 2013 and for the six months ended
June 30, 2013 and 2014:
Year ended
December 31,
Six months ended
June 30,
2012 2013 2013 2014
(unaudited) (unaudited)
Gross transaction volume
(1)
(in million) . . . . . . . . . . . . . 1 20 6 22
Total number of transactions
(2)
(in thousands) . . . . . . . . . 62 345 111 292
Total number of active retailers
(3)
. . . . . . . . . . . . . . . . . . . . . . 81 1,165 469 1,581
(1) Total value of transactions (as defined in total transactions) including taxes.
(2) Total number of valid transactions in period (i.e., after chargebacks, fully refunded or failed).
(3) Total number of webshops that have had at least one valid transaction (as defined in total transactions) within the period.
Zencap operates an online marketplace for peer-to-peer lending for small and mid-sized enterprises.
Zencap was launched in March 2014 in Germany and in June 2014 in Spain.
Zencap offers small and mid-sized enterprises across all sectors the opportunity to apply for loans in
amounts ranging from 10,000 to 150,000. Online investors are offered a variety of loans in five risk/return
categories and are given detailed information and in-depth financial data on each company. Loan quality is
ensured through strict risk management and clearly defined minimum criteria. Zencap benefits from multiple
streams of revenue by charging borrowers an origination fee and lenders a service fee.
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Although peer-to-peer lending platforms have become highly successful in the United States and the
United Kingdom, the industry is still in its infancy in Zencaps target markets. According to the latest data from
the European Central Bank, financing is a key challenge for about a third of all small and mid-sized enterprises in
Europe. Meanwhile, banks are struggling to fill this gap due to high cost structures and little cross-selling
opportunities. In contrast, Zencaps business concept, featuring a low cost base and an absence of regulatory
capital requirements, allows Zencap to provide flexible and fast loans at highly attractive terms for borrowers and
lenders.
Based on accounting and controlling records of Zencap that were prepared in accordance with
Luxembourg generally accepted accounting principles, Zencap Global S. r.l. showed a loss for the financial year
of 11,743 (unaudited, unconsolidated) for the period from September 27, 2013 to December 31, 2013.
The following table shows Zencaps loan volume of newly issued loans (in thousand), number of
loans issued, loan applications received and number of unique visitors for the month ended March 31, 2014 and
June 30, 2014:
For the month ended
March 31, 2014 June 30, 2014
(unaudited)
Loan volume of newly issued loans
(1)
(in thousand) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 198
Number of loans issued
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 3
Number of loan applications received
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 34
Number of unique visitors
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,447 17,723
(1) Loan volume (newly) issued in period.
(2) Number of loans (newly) issued in period.
(3) Number of loans requested (loan applications sent to Zencap by potential borrowers; with and without full documentation; accepted and
rejected).
(4) Number of total unique identifiers visiting the website in the period (including from mobile & tablets) (Google analytics definition of
users).
Concepts
The Issuer holds direct and indirect stakes in a number of smaller and/or younger companies. Some of
these companies are still in the concept stage. Most of them have yet to receive external funding. Our concept
companies include:
EatFirst is a next generation online healthy meal ordering and delivery service
that launched on August 28, 2014 in the United Kingdom and is expected to
increase its geographic footprint in the near term. EatFirsts experienced chefs
create dishes using quality ingredients, most of which are locally sourced.
Launched in July 2014, Spaceways provides a convenient, simple, on-demand
storage solution to households as well as to small and medium sized
enterprises. It offers free pickup of items, and customers pay only a monthly
storage fee and a charge for on-demand delivery of their Spaceways bins.
Shopwings is a grocery shopping platform that allows customers to order
groceries online with same-day delivery through personal shoppers selected by
Shopwings. It is expected to launch in the fourth quarter of 2014.
Spotcap is a global online lending platform that provides small and medium
sized enterprises with short-term cash advances. Its easy online application
process makes loan decisions instantly, allowing customers to receive funding
within a very short timeframe. Spotcap launched in the second half of 2014 and
received initial external funding in the aggregate amount of 12 million and
funding from a wholly-owned subsidiary of the Issuer of 1 million in July and
August 2014, leading to a valuation including this funding of 33 million.
Tripda is an online platform aiming to facilitate carpooling in Brazil for
medium- and long-haul journeys. The platform allows passengers to save some
of the money they would have to spend on train or airplane tickets and drivers
to use the full capacity of their cars and to split the costs of traveling with other
people. Tripda automatically suggests a fair price for the ride (including fuel,
tolls, etc.) and drivers are able to adjust this suggested price within a fixed
bracket.
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Regional Internet Groups
We have set up regional Internet groups with leading mobile telecommunications operators in Africa,
Asia, Latin America and the Middle East. These companies function as holding and support companies for
businesses in the respective regions. They partner with telecommunications companies with a strong presence in
the relevant region. Our regional Internet groups have the following key functions as part of our platform model:
local/regional market insights allowing for business model adaptations according to local/regional
particularities;
local/regional commercial and strategic partnerships;
local/regional sourcing (i.e., local team/pool of talent); and
local/regional rollout of business models.
In addition, the regional Internet groups have been used to raise funds from investors, in particular
telecommunication operators, who were seeking broad exposure to the application level of mobile Internet via
e-commerce, marketplace and financial technology companies in the relevant geographic market.
Based on the latest financing rounds, which took place between December 2013 and April 2014, our
regional Internet groups were valued at 1,251 million in aggregate, corresponding to a valuation of the Issuers
direct or indirect stakes in the regional Internet groups of 581 million.
Africa Internet Group
Africa Internet Group bundles our activities in Africa. Its stakeholders are the Issuer and two of its
telecommunications partners: MTN and Millicom, each of which owns one-third of the shares in Africa Internet
Group. MTN is a South Africa-based multinational mobile telecommunications company operating primarily in
African and Middle Eastern countries. Millicom offers a range of digital services primarily under the Tigo brand
in a large number of markets in Africa and Latin America.
Africa Internet Group bundles our activities across eight business models in a total of 22 African
countries. Its Internet business models include: Jumia / Zando (online business-to-consumer retailer and market
place), Kaymu Africa (online consumer-to-consumer market place), Hellofood Africa (online food ordering
platform), Lamudi Africa (online real estate classifieds) and Carmudi Africa (online car classifieds), Easy Taxi
Africa (mobile taxi hailing platform), Jovago Africa (online travel agency) and Lendico Africa (peer-to-peer
lending platform). Over the last two years, Africa Internet Group has launched 72 new companies, whereof 37
companies were launched in the first six months of 2014. In 2013, our online retailer Jumia was named the best
new retail launch of the year by the World Retail Congress and became the first African company to receive the
World Retail Award (Source: Ian McGarrigle, Chairman of the World Retail Congress).
Africa Internet Groups target markets encompass a population of over one billion people across a
number of diverse economies in Africa with expected total population growth at a compound annual growth rate
(CAGR) of 2% and average annual GDP growth of 8% in the period from 2013 to 2018 (Source: IMF, WEO
Database, 2013). Online penetration in Africa is currently substantially below the levels of more developed
markets but is expected to grow at a fast pace from 23% in 2013 to reach 31% by 2018, with the total number of
Internet users growing from 250 million to 375 million over the same period (Source: IMF, 2013; BMI, Market
Data, 2014; Internet Live Stats, 2014).
Asia Internet Group
Asia Internet Group is co-owned by the Issuer and it telecommunications partner Al Wokaer Holding
S.P.C., a wholly owned subsidiary of Ooredoo Q.S.C.
Asia Internet Group bundles some of our more recent activities across ten business models in a total of
15 countries of the Asia Pacific region. Businesses of our proven winners, such as Zalora and Lazada, our India-
based companies and foodpanda do not form part of the Asia Internet Group structure. Asia Internet Groups
business models include: Daraz (consumer goods retailer), Lamudi Asia (online real estate marketplace),
Carmudi Asia (online car marketplace), Kaymu (online consumer-to-consumer marketplace), Easy Taxi (taxi
booking platform, held indirectly through Global Taxi Holding), ClickBus Asia (bus booking platform),
Pricepanda (price comparison website), Jovago (online travel agency), work.com.mm (job classifieds) and
ads.com.mm (general classifieds). In the first six months of 2014, Asia Internet Group launched twelve new
country operations. Its strategic cooperation with ooredoo, which in the Asia Pacific region is active in Indonesia,
Myanmar, Pakistan, Singapore and the Philippines, provides Asia Internet Groups companies with access to
over 60 million subscribers, most of whom are located in Indonesia.
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Asia Internet Groups target markets encompass a population of over 1.2 billion people across a number
of diverse economies in Asia Pacific with expected total population growth of 7% and GDP growth of 5% in the
period from 2013 to 2018 (Source: IMF, WEO Database, 2013). In 2013, the region accounted for 385 million
Internet users (Sources: IDC Database, 2013; Internet Live Stats, 2014; excluding China and India). The number
of smartphone users in Asia Pacific is expected to show rapid growth, from 21% in 2013 to 44% by 2018
(Source: WCIS Cellular Forecasts, 2013; Asia Pacific region defined according to WCIS Asia Pacific
developing excluding China and India). Total mobile e-commerce spending is expected to increase by over 13%
in Asia Pacific from 2013 to 2014 and to more than double by 2018 (Source: IDC Database, excluding China and
India).
Middle East Internet Group
MEIG is co-owned by the Issuer and its telecommunications partner MTN (Dubai) Limited, an affiliate
of MTN Group Limited.
MEIG bundles our recent activities across three business models in a number of countries in the Middle
East, while the business of our Middle Eastern proven winner Namshi is operated outside the MEIG structure.
MEIGs business models include: Easy Taxi Middle East (mobile taxi hailing platform), Lamudi Middle East
(online real estate classifieds) and Carmudi Middle East (online car classifieds). In the first six months of 2014,
MEIG launched eight new country operations. Its strategic cooperation with its co-investor MTN and its other
telecommunications partner, Mobily, provides MEIG with access to a significant subscriber base and to
additional marketing, distribution and payment channels. MTN and Mobily have a combined subscriber base of
64 million subscribers, whereof 42 million is attributable to MTN and 22 million to Mobily.
MEIGs target markets encompass a population of over 235 million people across a number of
economies, including oil-rich regions, in the Middle East with an expected total population growth at a CAGR of
2% and GDP CAGR of 5% in the period from 2013 to 2018 (Source: IMF, WEO Database, 2013). Online
penetration in the Middle East is expected to grow further, from 29% in 2013 to 39% by 2018, with the total
number of Internet users growing from 69 million to 103 million over the same period (Source: IMF, WEO
Database, 2013; BMI, Market Data, 2014; Internet Live Stats, 2014). The number of smartphone users in the
Middle East is expected to show rapid growth, from 28% in 2013 to 58% by 2018 (Source: WCIS Cellular
Forecasts, 2013).
Latin America Internet Group
LIG is the regional Internet group for part of our Latin American activities. The Issuer holds a 65%
stake in LIG. The other 35% is held by our telecommunications partner Millicom.
LIG bundles some of our recent activities across nine business models in a total of 13 Central and South
American countries (some of our proven winners in the region, such as Dafiti, Linio, Westwing and Home24, do
not form part of the LIG structure). LIGs business models include: Kanui (online retailer for outdoor and action
sports), Tricae (online retailer for toys & kids products), Easy Taxi (mobile taxi hailing platform), Hellofood
Latin America (online food ordering platform), ClickBus Latin America (online retailer for bus tickets), Airu
(online marketplace for handmade and unique goods), Lamudi Latin America (online real estate classifieds),
Zocprint (web-to-print marketing tools) and Carmudi Latin America (online car classifieds). In the first six
months of 2014, LIG launched seven new country operations. Its strategic cooperation with Millicom, which is
active in seven geographic markets across the Latin American region, provides LIG with strategic access to
Millicoms subscriber base, whose number of mobile customers grew from approximately 26.6 million in the
first quarter of 2012 to approximately 29.8 million in the first quarter of 2014. LIG derives further synergies from
Millicoms hundreds of thousands of points of sale and its understanding of mass consumer behavior.
LIGs target markets encompass a population of over 586 million people across a number of diverse
economies in Latin America with expected total population reaching 620 million by 2018 and GDP growth of 4%
in the period from 2013 to 2018 (Source: IMF, WEO Database, 2013). The number of Internet users in the Latin
America region totaled approximately 268 million in 2013, while its smartphone users amount to 152 million
(Sources: IDC Database, 2013; BMI, Market Data, 2014; Internet Live Stats, 2014; WCIS Cellular Forecasts,
2013). The regions total Internet retail market is estimated to reach US$28 billion in 2014 and is expected to
grow at a CAGR of 22% from 2014 to 2018 (Source: Euromonitor, Retailing and Internet Retailing by Country,
2014, based on fixed 2013 exchange). Mobile commerce revenues in Latin America are expected to reach
US$14 billion in 2014 and to grow at a CAGR of 45% until 2018 (Source: IDC Database, 2013).
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Strategic Participations
We group stakes in companies and other legal entities that the Issuer currently intends to keep in the
medium term under strategic participations. As of August 31, 2014, this category contained 25 participations that
operate in the e-commerce, marketplace, financial technology and travel sectors. Based on the valuations
assigned in the contribution agreements dated August 15, 2014 and the latest financing rounds or secondary
transactions, the Issuers stakes in these legal entities were valued in the aggregate at 181 million. Our strategic
participations include among others stakes in the following legal entities:
Traveloka PT, which is a leading flight and hotel booking platform in Indonesia;
Yemek Sepeti A.S. which is a leading online food ordering/delivery portal that immediately
transmits online orders from users to restaurants. It operates in Turkey, Greece and numerous
Middle Eastern countries;
DaWanda GmbH, which operates an online marketplace for unique and handmade items offered by
thousands of shops. DaWandas website is available online in 7 languages;
Jimdo, which is a do-it-yourself website builder/hoster that holds one of the leading positions in
Europe and Japan;
Trusted Shops GmbH, which has a presence in 12 countries and provides consumer protection for
online shoppers and a quality seal for e-commerce websites;
Borro Limited, which operates a personal asset lending business in the United States and the United
Kingdom, focusing on luxury personal assets and small business lending;
Kreditech Holding SSL GmbH, which is a fully automated emerging market short-term consumer
lending platform based on self-learning algorithm; and
SocietyOne Holdings Pty Ltd., which is a peer to peer lending platform in Australia with two years
of operating history.
Other Investments
Other investments is comprised of stakes in companies and other legal entities, which we see as pure
financial investments. If the market conditions are right, the Issuer currently intends to reduce its stakes in these
companies and other legal entities. As of August 31, 2014, this category contained 46 participations that operate
in the e-commerce, marketplace, financial technology, travel, marketing & media and other sectors. Based on the
contribution agreements dated August 15, 2014 and the latest financing rounds or secondary transactions, the
Issuers stakes in these legal entities were valued in the aggregate at 238 million. Our other investments include
among others stakes in the following legal entities:
Altigi GmbH, also known as Goodgame Studios, which is a developer and publisher of free to play
web and mobile games. As of June 30, 2014, Goodgame Studios had 210 million registered players
and was the winner of entrepreneur of the year award from Ernst & Young in 2011;
care.com, which connects families with caregivers and caring companies with people in need of
care; and
Wonga Group Limited, which is a London-based digital finance company providing short term
credit to consumers.
Intermediate Holding Companies
We have set up three intermediate holding companies: Bigfoot I, Bigfoot II and BigCommerce. They
bundle activities of e-commerce companies, mostly proven winners in fashion and general retail. On
September 4, 2014, it was announced that we have taken preparatory steps to form an emerging markets focused
fashion e-commerce group that bundles the fashion e-commerce companies held by these intermediate holding
companies. The restructuring will affect Dafiti, Lamoda, Zalora, Jabong and Namshi and is expected to take
effect in December 2014. In particular, in the past, our intermediate holding companies played an important in
role in our fund raising activities.
Employees
The Issuer employed on average 67 persons in 2011, 238 persons in 2012, 233 persons in 2013 and 237
persons in the six months ended June 30, 2014.
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In 2013, on average 1,282 persons worked in Group companies, thereof 297 persons located in Germany
and 985 persons outside of Germany. In the six months ended June 30, 2014, on average 1,902 persons worked in
Group companies, thereof 299 persons located in Germany and 1,603 persons outside of Germany. These totals
include an online team located in Berlin and Porto that is active in technological services, online marketing,
product management, CRM and business intelligence and include a business team located in Berlin, Paris,
London, Sao Paolo, Dubai, New Delhi and Singapore that carries out tasks in the areas of business development,
finance, operations, PR, human resources and legal.
Our companies, regional Internet groups and local entities employ in total more than 20,000 local
experts, out of which more than 6,300 are located in Asia Pacific, more than 5,800 are located in Latin America,
more than 3,000 are located in Europe, more than 2,800 are located in Russia & CIS, and more than 2,100 are
located in Africa.
Compensation
The remuneration of the members of senior management and certain employees of our companies,
holding companies and local entities is determined by their employment contracts. The salary of the members of
the senior management and of certain employees of our companies, holding companies and local entities
typically includes a variable remuneration component. We typically use one of three variable compensation
models, which are summarized below.
The first and most common type of variable remuneration arrangements provides for an equity
participation via a trust relationship. The trustee holds a certain amount of shares in accordance with the terms
and conditions of a trust agreement for the benefit of the trustor, who can be either the member of senior
management or an investment entity controlled by such senior management member. A separate angel
agreement, between the trustor and the relevant company, governs certain obligations regarding, inter alia,
vesting-rights and non-compete obligations that relate to the indirect shareholding of the relevant senior
management member in the relevant company. The vesting scheme, which is dependent on time, provides for
quarterly vesting over a period of typically 4 years and typically a 6-month or 12-month cliff. Prior to the
expiration of the cliff period, typically all shares can be clawed back. Thereafter, in case of a bad leaver event,
we may typically also claw back all vested and unvested shares, while in case of a good leaver event, we may
only claw back the unvested shares. A bad leaver event is typically triggered, if, for example, the respective
service agreement between a senior management member and a company is terminated by such company for
good cause, the senior management member demonstrably committed a criminal offence against the company or
such member breached its non-compete obligation. A good leaver event is typically triggered, if, for example, the
service agreement is terminated by either party without good cause.
Call option arrangements that entitle the relevant senior management members to acquire a pre-defined
number of shares in the relevant company are the second type of variable remuneration. The call options are
usually granted at quarterly intervals with a total duration of 3 to 4 years and a 12-month cliff (in certain cases a
6-month cliff applies and in a small number of cases there is no cliff). Under certain call option agreements (and
if certain conditions are met), approximately one third of all call options are granted upon the later of (i) the
occurrence of a change of control or (ii) 4 years after the first call options were granted. In the case of a change
of control, the relevant company is entitled to request that relevant senior management members exercise all call
options existing at such point in time. Upon the occurrence of a bad leaver event, all call options that have not
been exercised lapse. In the case of a good leaver event, all call options lapse for which the exercise period has
not yet commenced.
The third type of variable remuneration allows certain employees of certain companies to participate in
exit related cash payments via virtual call option arrangements. The notional value and the actual distribution of
the relevant virtual call options to the participants is determined by the relevant companys management and is
subject to certain shareholders approval. The vesting scheme provides for a cliff of 6 months and has a duration
of 4 years. One third of the virtual call options vests upon a change of control or listing of the company, provided
however that the relevant employee is in good standing at such point in time. The participants are entitled to a
cash payment amounting to the difference between the initial purchase price of the virtual shares underlying the
virtual call options and the exit proceeds allotted to each virtual call option in case of a change of control or
listing of the company on a stock exchange.
Pensions
The Issuer and its subsidiaries have not entered into pension arrangements with their employees.
151
Intellectual Property, Trademarks and Domains
Patents
As of the date of this prospectus, the Group does not hold any patents.
Trademarks
The Group is the owner of the following trademarks, which are essential for the Groups business
activity. For the Issuer, the device mark rocket in a circle (Rakete im Kreis) and the word-device mark Rocket
Internet, which are both registered European Union-wide, are material.
Domains
The Issuer and its subsidiaries are the owners of a large number of Internet domains, which are essential
for their business activities. The following Internet domains are considered material to the business of the Issuer:
rocket-internet.de; rocket-internet.net; rocket-internet.eu; rocket-internet.info; rocket-internet.biz;
rocket-internet.co.uk; rocket-internet.co; rocket-internet.lu and rocket-internet.tv.
The Internet domains of the following proven winners and emerging stars are considered material to
their business: cuponation.at; cuponation.ch; cuponation.com; cuponation.com.br; cuponation.de; cuponation.es;
cuponation.fi; cuponation.fr; cuponation.in; cuponation.it; cuponation.no; cuponation.pl; cuponation.ru;
cuponation.se; dafiti.cl; dafiti.com.ar; dafiti.com.br; dafiti.com.co; dafiti.com.mx; dalani.it; fabfurnish.com;
foodpanda.az; foodpanda.bg; foodpanda.co.id; foodpanda.co.th; foodpanda.com; foodpanda.com.bd;
foodpanda.com.bn; foodpanda.com.tw; foodpanda.com.ua; foodpanda.cz; foodpanda.ge; foodpanda.hk;
foodpanda.hr; foodpanda.hu; foodpanda.in; foodpanda.kz; foodpanda.my; foodpanda.ph; foodpanda.pk;
foodpanda.pl; foodpanda.ro; foodpanda.rs; foodpanda.ru; foodpanda.sg; foodpanda.sk; foodpanda.vn;
hellofresh.at; hellofresh.ca; hellofresh.co.uk; hellofresh.com; hellofresh.com.au; hellofresh.de; hellofresh.fr;
hellofresh.nl; helpling.at; helpling.de; helpling.fr; helpling.nl; helpling.se; home24.at; home24.be; home24.ch;
home24.com; home24.de; home24.fr; home24.nl; jabong.com; jumia.ci; jumia.co.ke; jumia.co.uk; jumia.com;
jumia.com.eg; jumia.com.gh; jumia.com.ng; jumia.ma; lamoda.kz; lamoda.ru; lamoda.ua; lazada.co.id;
lazada.co.th; lazada.com; lazada.com.my; lazada.com.ph; lazada.sg; lazada.vn; lendico.at; lendico.co.za;
lendico.com; lendico.de; lendico.es; lendico.pl; linio.cl; linio.com; linio.com.co; linio.com.mx; linio.com.pe;
linio.com.ve; namshi.com; paymill.com; theiconic.co.nz; theiconic.com.au; westwing.ch; westwing.com.br;
westwing.de; westwing.es; westwing.fr; westwing.kz; westwing.nl; westwing.pl; westwing.ru; wimdu.at;
wimdu.be; wimdu.ca; wimdu.ch; wimdu.cl; wimdu.cn; wimdu.co; wimdu.co.id; wimdu.co.il; wimdu.co.kr;
wimdu.co.nz; wimdu.co.uk; wimdu.co.za; wimdu.com; wimdu.com.ar; wimdu.com.au; wimdu.com.br;
wimdu.com.mx; wimdu.com.my; wimdu.com.pe; wimdu.com.tr; wimdu.com.tw; wimdu.com.uy;
wimdu.com.vn; wimdu.cr; wimdu.cz; wimdu.de; wimdu.dk; wimdu.es; wimdu.fi; wimdu.fr; wimdu.gr;
wimdu.hk; wimdu.hu; wimdu.ie; wimdu.in; wimdu.it; wimdu.jp; wimdu.nl; wimdu.no; wimdu.pl; wimdu.pt;
wimdu.ru; wimdu.se; zalora.co.id; zalora.co.th; zalora.com; zalora.com.bn; zalora.com.hk; zalora.com.my;
zalora.com.ph; zalora.sg; zalora.vn; zanui.com.au; zencap.de; zencap.es.
Proprietary Software
The Issuer and its subsidiaries are also the developers and owners of proprietary software for online
marketing, business intelligence and information technology. The most significant software comprises:
Romeo, a suite of tools to automate the optimization of online marketing;
a data warehouse, comprising data, intelligence and reporting layers;
Alice, Nico, Yoda and other platforms developed for the companies;
mobile apps developed for the companies;
SellerCenter, a system empowering e-commerce companies to offer marketplace transactions;
OMS, an order and warehouse management system; and
Kamino, which is a monitoring platform.
Insurance Coverage
The Issuer holds a pecuniary damage liability insurance policy
(Vermgensschadenshaftungpflichtversicherung) with a total coverage of up to 2 million and a deductible of
50,000, as well as a contents insurance policy (Inhaltsversicherung) with a total coverage of up to 398,000 and
152
a deductible of 500. In addition, the Issuer has purchased legal protection insurance (Strafrechtsschutz) in the
areas of criminal law and employment law. Furthermore, the Issuer hold a office liability policy (Brohaftpflicht)
with a total coverage of up to 5 million which also covers certain business interruptions.
The Issuer has taken out a directors and officers (D&O) insurance policy for the members of its
Management and Supervisory Boards and managing directors with a total coverage of up to 100 million annually;
the D&O insurance policy was entered into with AIG Europe Limited, VOV GmbH, XL Insurance Company SE,
Catalin Europe SE and Allianz Global Corporate & Specialty SE. The D&O insurance contracts provide for a
deductible for all of the Issuers Management Board members in line with the respective provisions of the German
Stock Corporation Act (Aktiengesetz). The D&O insurance policies cover financial losses arising from a breach of
duty by the Issuers Management and Supervisory Board members in the course of their duties. The Issuer also
holds a D&O insurance covering board members of certain companies in our network of companies with a total
coverage of up to 5 million. This D&O insurance was entered into with AIG.
Facilities
The Issuer does not own any material properties. There are currently no plans concerning additions of
material tangible fixed assets, including leased properties. Accordingly, the Issuer currently does not require
funding for material tangible fixed assets.
On January 13, 2012, the Issuer entered into a lease agreement with SEB Investment GmbH concerning
the premises of the Issuers headquarters in Berlin. The lease agreement has a fixed term until July 16, 2016 and
cannot be terminated by either party without cause. Initially, the monthly rent amounted to 114,900. It increased
by 2% on January 1, 2014 and will increase by another 2% on January 1, 2015.
Legal Proceedings
During the ordinary course of its business activities, the Group is regularly involved in legal
proceedings, both as a claimant and as a defendant. These proceedings are routine matters of labor and other
laws, and do not have a significant impact on the Groups business.
As of the date of this prospectus, the Issuer and the Group were not involved in any governmental, legal
or arbitration proceedings (including any such proceedings which are pending or threatened of which the Issuer is
aware), during a period covering the previous 12 months which may have, or have had in the recent past
significant effects on the Issuer and/or the Groups financial position or profitability.
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CORPORATE STRUCTURE, FINANCING ROUNDS AND CASH MANAGEMENT
Overview
Most of our companies are growth companies or start-ups which we seek to grow and expand. They
typically have a net cash outflow from operating activities and need capital for their day-to-day operations and to
grow their business. Accordingly, we are dependent upon regular fund raising. We typically raise funds through
equity capital financing rounds at various levels of our organization.
We have raised capital at the level of the Issuer, where affiliates of Kinnevik and Access Industries and,
most recently, PLDT and United Internet have invested significant amount of cash.
In the past, we also raised equity capital at the level of our intermediate holding companies and
presently continue to do so at the level of regional Internet groups. Our intermediate holding companies, such as
Bigfoot I, Bigfoot II and BigCommerce bundle a number of e-commerce companies and allow investors to
diversify their investments. We have agreed with the other shareholders of the fashion companies held by
Bigfoot I, Bigfoot II and BigCommerce to group these companies in a single emerging market focused global
fashion group. Regional Internet groups allow investors to invest indirectly in a large number of companies that
operate in a specific geographic area. Investors in regional Internet groups, such as MTN, ooredoo, Millicom
typically provide us with important synergies, as these investors in regional Internet groups bring in the
additional expertise and support of strong regional partners.
In addition, we raise capital at the level of individual companies and, in some cases, at the level of the
local operating entity.
For each financing round, we, the other shareholders in the relevant entity and the relevant investor
determined a valuation for the relevant entity. These valuations were often based on limited operational and
historical information about the relevant entity, and reflect the specific circumstances under which the relevant
investment in the company was made, including the specific terms of the investments, such as liquidation
preferences, and the insights, assumptions and expectations of the relevant investors at that point in time. Some
of these valuations are no longer recent. Furthermore, circumstances under which the valuations were made may
have changed, including as a result of changes in foreign exchange rates, and some of our companies may not
have performed in accordance with the expectations of investors at the time of the relevant financing round and
may fail to do so in the future. In addition, certain of our financing rounds may not represent the fair value of our
companies as they were completed with affiliates, or with investors that had already invested in the Issuer or our
companies, at less than arms length. The valuations we have disclosed may therefore exceed the price that third
parties would be willing to pay for the relevant investment in a future financing round, a potential exit or a
potential initial public offering, even one that occurred shortly after the relevant valuation date. Our co-investors
in our regional Internet groups may have valued them more highly based on the expectation of synergies from
their investments that would benefit their particular business. In addition, liquidation preferences granted to later
investors in our companies may impact the value of the Issuers direct and indirect interests in these companies.
Certain of our intermediate holding companies have received valuations that were lower than the total valuations
of the companies in which they held interests. Consequently, the valuations of the Issuer and our companies may
not reflect their past, present or future fair values, or any potentially achievable fair value in the future. For more
information, see Risk FactorsRisks Related to the Issuer and Our CompaniesWe disclose in this prospectus
valuations derived from investments in the Issuer and our companies. These valuations may not reflect the past,
present or future fair values of the Issuer or our companies, and potential investors in this offering should not
place undue reliance on these valuations. The valuations presented in this chapter are based on the financing
commitments made in the last financing round or secondary transaction, irrespective of whether the
commitments have already been fully paid in. The valuations include the investments of the latest financing
rounds on the assumption that all commitments have been fulfilled entirely. The following graphic provides an
overview of the current LPVs by category of our companies as of August 31, 2014. The LPVs are unaudited
numbers that were calculated based on accounting and controlling records of the Issuer. The LPVs are based on
the respective latest third party financing rounds (including a financing round of Lamoda, solely subscribed by its
majority owner Bigfoot I, which resulted in a substantially higher valuation of Lamoda), secondary transactions
or, with respect to some of the stakes in the categories strategic participations and other investments, the values
assigned to them in connection with their contribution to the Issuer.
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billion (unaudited)
0.2
2.6
0.8
0.3
0.02
0.6
Proven
Winners
Emerging
Stars
Concepts Regional
Groups
Strategic
Participations
1
0.2
Other
Investments
(1)
Total LPV Cash
2
1.3
(1) Strategic investments and other include the United Internet/GFG contribution portfolio valued at 255 million as per contribution
agreement between United Internet, GFG and all other shareholders of the Issuer.
(2) Cash includes the Issuers cash position as at June 30, 2014, less any investments made after that date, plus the Issuers share in
undeployed cash sitting in intermediate holdings (Bigfoot, Bigfoot II, BigCommerce) as at June 30, 2014 amounting to 64.5 million,
666.7 million of cash invested by PLDT and United Internet as well as 4.6 million from Holtzbrinck Ventures contribution in kind.
In connection with each financing round, the new investor, the investee and the shareholders of the
investee typically enter into an investment agreement and a shareholders agreement. Typically the investment
agreement provides for full payment of the notional amount of the shares acquired with the balance of the
investment amount being paid into the capital reserves of the investee. The balance of the investment amount is
typically paid in at the time of closing of the financing round. Some agreements provide that the balance of the
investment amount is only paid in installments, usually upon capital calls. The shareholders agreements set out
governance rights, which we view as an important instrument to steer our governance rights in our organization,
and certain economic rights. These economic rights typically include a liquidation preference that allows
investors who invested in later financing rounds at higher valuations to recoup their investments before other
investors in case of a change of control or liquidation of the investee. In some circumstances, we also enter into
side letters that address specific rights of a subgroup of shareholders.
While our companies have typically relied on third parties for funding after their launch, we currently
intend to provide greater funding in the future, effectively replacing the third-party equity capital that our
companies sought to raise in their first financing rounds. Accordingly, the Issuer expects to provide each of our
companies with significantly more equity capital from the Issuers own funds going forward.
We regularly review whether our corporate structure is in line with our operational needs and the
investment preferences of our third party investors. We have in the past adapted our structures and we expect to
continue to do so in the future as our companies mature. As described below, we have agreed with the other
shareholders of the fashion companies held by Bigfoot I, Bigfoot II and BigCommerce to group these companies
in a single emerging market focused global fashion group. In addition, we are considering a simplification of our
structure through dissolution of our other intermediate holding companies.
Investment Agreements and Shareholders Agreements
The following is a summary of principal terms of the investment agreements and shareholders
agreements we have entered into at the level of our holding companies and of our individual companies.
Individual agreements may contain terms that differ in certain respects from those summarized below.
Investment Agreements
The investment agreements relating to our holding companies and companies set out the rights and
duties of new investors and existing shareholders, such as the number of new shares to be subscribed by the new
investor, the type and amount of the investors contribution, as well as representations and warranties by the
existing shareholders and the respective company. In some cases, in particular with respect to our regional
Internet groups, the new investor is not required to make its entire contribution up-front but rather in consecutive
payments which depend on the financing needs of, and the achievement of certain milestones by, the relevant
company. Typical provisions are that capital calls may only be issued if the funds are required pursuant to an
annual budget and/or a business plan and the level of cash falls below a predefined threshold or if financial
155
indicators, such as minimum net revenues and EBITDA thresholds, are achieved. In addition, in some cases
investors were given the option to make further investments at a later point of time, typically at the same
valuation at which the original investment was made.
Shareholders Agreements
The shareholders agreements to which we are a party are important instruments for steering the
governance of our network of companies and the economic rights among the various investors in these entities.
Corporate Governance. Our shareholders agreements typically specify that a number of important
decisions need to be taken by the shareholders. We refer to these important decisions as reserved matters. Often
the shareholders agreements distinguish between investors and non-investors and require a qualified majority of
investors and, in certain cases, a unanimous vote of the investors for decisions regarding reserved matters.
Sometimes the decision on reserved matters is conferred on an advisory board. This means that the Issuer
typically cannot take or block decisions on reserved matters alone, but needs the support of one or more other
investors. Historically, the Issuer has been able to build a consensus with other shareholders who trust it and have
supported it when the Issuer wanted to make or block a decision on reserved matters. The reserved matters
include fundamental decisions about the relevant entities, its operative and strategic plans and important
transactions that exceed certain thresholds.
Liquidation Preference. The shareholders agreements include certain waterfall provisions, which
stipulate the order for distributing proceeds from a transfer of shares that results in, or is deemed to be, a change
of control or in case of liquidation to the shareholders. Typically, if triggered, the liquidation preference entitles
investors who invested in later financing rounds, which generally means at a higher valuation, to recoup their
investment before other shareholders are paid. Investors who invested in the early stage of a company, are
usually paid last. As we are typically among the first investors in a company, we will generally only be able to
recoup our investments if the transfer or liquidation proceeds equal or exceed the sum of the investments made
by all investors in the company. Any remainder over the sum of the investments of all investors is shared among
all shareholders of the company pro rata to their shareholdings or in case of a share transfer to the shares
transferred by them. Any amount received by an investor prior to the pro rata allocation is typically deducted
from such investors stake in the pro rata allocation. See also Risk FactorsRisks Related to the Issuer and Our
CompaniesA number of shareholders agreements relating to our companies contain liquidation preferences,
which may result in a disproportionate decrease in the value of the Issuers direct and indirect stakes in our
companies, and protection clauses for third party investors if a later financing round is effected at a lower
valuation which may lead to a dilution of the Issuers direct and indirect interests in our companies.
Transfers. The shareholders agreements typically contain a number of other provisions relating to
transfers of shares in the company or holding company:
Transfer Restrictions. Most of the shareholders agreements of our holding companies and
companies contain provisions that restrict transfers of shares of the company or holding company.
Typically, transfers of shares require the approval of a qualified majority of shareholders. Certain
transfers are exempt from this approval requirement, e.g., transfers to an affiliate of the transferring
shareholder.
Right of First Purchase. The shareholders agreements typically provide for a right of first
purchase. This means that a shareholder who intends to transfer its shares is required to inform the
non- transferring shareholders about its intention and the key terms of the envisaged transfer. The
non-transferring shareholders are entitled to purchase such shares on a pro rata basis on the same
terms as the intended transferee (Right of First Purchase). If not all non-transferring
shareholders exercise their Right of First Purchase, the shareholders who did exercise their right
may step in for them.
Tag Along. In case of a transfer of shares, the shareholders of the relevant entity have the right to
sell and transfer their respective shares, in full or in part, on the same terms (Tag Along Right).
The Tag Along Right is in certain cases limited to shareholders holding more than 20% in the
relevant company. To the extent the prospective purchaser does not wish to purchase all shares
subject to the Tag Along Right, the shares are sold on a pro rata basis. Under certain
circumstances, such as a sale to a competitor or a transfer of more than 50% of the shares, the
transfer may only proceed, however, if the buyer is willing to purchase all of the shares of the
company.
Drag Along. If a transfer of shares is approved by a qualified majority of shareholders, the
transferring shareholder may require all other shareholders to transfer their shares in the company
on the same terms (Drag Along Right). The exercise of the Drag Along Right generally requires,
156
among other things, that the prospective purchaser is willing to acquire 100% of the companys
shares and that the purchase price exceeds the total investment of the major shareholders plus
interest in the range of 10% to 20% per year on their investment.
Investment Preference. If the company requires further capital contributions, each major shareholders can
request that the major shareholders enter into talks about potential further capital contributions to be made either by
them or by third parties. In case a third party offers to invest in the respective companies with shareholders
approval (certain shareholders agreements require approval by a majority of the major shareholders), the major
shareholders (and in certain cases other shareholders) are entitled to effect the investment instead of the third party
(certain shareholders agreements allow for a partial replacement). To the extent more than one existing shareholder
intends to replace the third party investment the replacement is pro rata-based.
Issuer Financing
The Issuer was founded in 2007 based on an initial investment from European Founders Fund GmbH &
Co. Beteiligungs KG Nr. 1 (later renamed Global Founders Capital GmbH & Co. Beteiligungs KG Nr. 1) of
0.5 million. The issuer has historically relied on equity capital to meet its financing needs. Accordingly, the
Issuer engaged in a number of financing rounds, which are described below, and does not have any significant
liabilities vis--vis financial institutions. In 2009, Emesco, an affiliate of Kinnevik, invested 35 million on the
basis of an agreed post-money valuation of the Issuer of 300 million. In April 2012, AI European Holdings
S. r.l., an affiliate of Access Industries, invested 100 million based on an agreed post-money valuation of the
Issuer of 3,053 million (including the Issuers stake in Zalando, which was valued at 1.25 billion). In July 2013
and February 2014, AI European Holdings S. r.l. exercised various options and contributed in total an additional
107.7 million to the equity capital of the Issuer.
In addition to the financing rounds described above, the Issuer recently completed two financing rounds.
In August 2014, the Issuer entered into an investment agreement with the Philippine Long Distance
Telephone Company (PLDT), in order to form a long-term strategic partnership. PLDT agreed to invest
333.3 million into to Issuer in return for a 10.0% stake of the Issuer at the time the investment was agreed. The
payment was made in two installments. The first installment was paid in early September 2014 and the second
installment in mid September 2014. In connection with PLDTs investment, the Issuer and PLDT also entered
into a joint venture agreement in which they agreed to leverage PLDTs expertise in the area of mobile and
online payment systems globally through a wholly owned subsidiary of the Issuer. The Issuer currently intends to
use the proceeds from the PLDT investment for this cooperation in the mobile and online payment systems area
and for enlarging our presence in the financial technology sector in general.
In August 2014, United Internet Ventures AG, Montabaur, Germany (United Internet) agreed to
invest a total of 435 million for a 10.7% stake in the Issuer based on the Issuers capital including the full PLDT
investment. United Internet is a European internet and telecommunications company. Ralph Dommermuth, the
founder, CEO and major shareholder of United Internet agreed to join the Issuers supervisory board as a
member. United Internets 435 million investment consists of 333 million in cash and a contribution in kind
valued at 102 million, which consisted of United Internets equity participation in the Global Founders Capital
Fund portfolio. The Global Founders Capital Fund portfolio consisted of 53 investments into internet companies
held jointly by United Internet and GFG. Investments in marketplace businesses accounted for about one-third of
the value of this portfolio, investments in e-commerce, financial technology and media & marketing businesses
for less than 30% and investments in other internet businesses, including online games, for about 40% of the
value of this portfolio. As part of this transaction, the whole Global Founders Capital Fund portfolio valued at
255 million was contributed to the Issuer by way of an exchange of GFGs share in the Global Founders Capital
Fund portfolio for equity in the Issuer, taking GFGs stake in the Issuer upon completion of this transaction to
53.7%. The Issuer currently intends to use the cash proceeds from this investment to retain higher stakes in our
emerging stars and concepts and to further accelerate the growth of some of our emerging stars, such as
foodpanda.
For information on the Holtzbrinck share for share transaction, please see BusinessOrigins.
Intermediate Holding Companies
The Issuer holds a number of companies indirectly, either through intermediate holding companies or
through regional Internet groups, allowing investors to invest into a portfolio of different companies. Our
intermediate holding companies hold stakes in e-commerce companies that are active in fashion retail and
general retail. The intermediate holding companies last financing rounds took place between August 2013 and
157
December 2013 and were carried out at valuations below the sum of the values of the stakes held by the
intermediate holding companies at the time of the relevant financing round. Information about the corporate
structure and the financing rounds of our regional Internet groups is provided below in the section entitled
Regional Internet Groups.
The following sections set forth information about the corporate structure of our intermediate holding
companies.
Bigfoot I
Current Status
Bigfoot I was established in June 2010. It groups mainly the Issuers stakes in our fashion retail
companies Dafiti, Lamoda, Jabong and Namshi (via Middle East eCommerce Holding GmbH) and the Issuers
stake in the home and furniture retail company FabFurnish. The following simplified chart sets forth Bigfoot Is
shareholders and its portfolio as of August 31, 2014:
2.52%
Other
Shareholders
22.31%
Summit Partners
RKT S. r.l.
TEV Global Invest
II GmbH
Kinnevik New
Ventures AB
Other Share-
holders
Bigfoot I
(Bigfoot GmbH(1) )
29.23% 4.83% 6.72% 32.45% 22.64%
BigCommerce
(TIN Brillant Services
GmbH(2) )
Rocket
Internet AG
Blakeney
Chelsea Wharf
Holdings S. r.l.
Other
Shareholders
(Middle East eCommerce
Holding GmbH)
AI European
Holdings S. r.l.
Other
Shareholders
(Jabong GmbH)
AI European
Holdings S. r.l.
Other
Shareholders
(Lamoda GmbH)
(Dafiti Latam
GmbH & Co.
Beteiligungs KG)
36.36%
0.25%
20.00%
0.89%
8.58% 18.19%
11.61% 8.12%
Rocket Internet
AG
73.23%
80.27%
77.69% 40.77%
(VRB GmbH & Co. B-181 KG)
87.66%
Bambino 53.
V V UG
12.34%
AI European
Holdings S. r.l.
Kinnevik
Online AB
1.61%
Rocket
Middle East
GmbH
(3)
1.73%
(1) Also referred to as Bigfoot I in this prospectus.
(2) The Issuer holds 51.60% of the registered share capital of TIN Brillant Services GmbH.
(3) Rocket Middle East GmbH is 100% owned by Rocket Internet AG.
The shareholders agreement of Bigfoot I provides that from 2012 on any further investments in its
subsidiaries shall be made by Bigfoot I, unless Kinnevik consents to an investment of a third party. If an existing
major shareholder of Bigfoot I is allowed to invest in a subsidiary of Bigfoot I, the Bigfoot Is other shareholders
may co-invest in line with their beneficial interest in the investee.
Global Fashion Group
We have taken preparatory steps to form a global e-commerce group that bundles our fashion
ecommerce companies. To this end, we, together with 99 other parties, entered into a roadmap agreement on
September 3/4, 2014. The roadmap agreement memorializes the steps to be undertaken for the formation of the
global fashion group.
Bigfoot Is stake in FabFurnish and HomeStyle will be spun-off to Bigfoot Is shareholders.
Bigfoot IIs stakes in Jumia and Zanui will be spun-off to Bigfoot IIs shareholders. The Issuer and
the other Bigfoot II shareholders will contribute together 100% of the share capital in Bigfoot II
(including Zalora) to Bigfoot I and BigCommerces stake in Namshi will be contributed to
Bigfoot I.
The Issuer and the other Bigfoot I shareholders (after such contributions) will contribute 100% of
the share capital in Bigfoot I to a newly founded Luxembourg company (GF Group).
158
Nearly all direct shareholders in the fashion e-commerce companies to be combined in GF Group
will contribute their shares in such companies into GF Group (and certain options granted with
respect to the involved companies will be exchanged into options for shares in GF Group).
The transaction is subject to binding rulings by fiscal authorities and antitrust approval. Closing is
expected for December 2014. GF Group will have become a global fashion group. It is currently expected that
Dafiti, Lamoda, Zalora and Namshi will become fully owned subsidiaries of GF Group and that Jabong will
become a 94.85%-owned subsidiary of GF Group.
Most direct shareholders in the fashion e-commerce companies will become shareholders of GF Group.
This means that there will be additional shareholders at the level of the GF Group. Accordingly, the relative
stakes of former shareholders at the holding company level (i.e., at the level of Bigfoot I, Bigfoot II and
BigCommerce) will decrease. For example, the Issuer currently holds a 29.23% stake in Bigfoot I and will in the
future only hold a 23.57% stake in the GF Group. In turn, the GF Group will hold 100% stakes in Dafiti,
Lamoda, Zalora and Namshi, while the former holding companies held much smaller stakes in these e-commerce
ventures. For more information, see Current Status, Bigfoot II and BigCommerce. It is expected that
the global fashion group restructuring will not have a significant impact on the Issuers economic position.
BigCommerce will be dissolved in the medium term as described below.
The following simplified chart sets forth GF Groups currently expected shareholder structure and its
portfolio:
Other
Shareholders
Rocket
Internet AG
(2)
Kinnevik
(1)
Access
Industries
25.13% 23.57% 43.96%
GF Group
7.41%
100%
(3)
100%
(3)
100%
(3)
94.85%
(3)
100%
(3)
(Zalora Group GmbH)
(Middle East
eCommerce Holding
GmbH)
(Dafiti Latam GmbH &
Co. Beteiligungs KG)
(Lamoda GmbH)
(Jabong GmbH)
(1) Kinnevik New Ventures AB and Kinnevik Online AB.
(2) Rocket Internet AG, Rocket Middle East GmbH (wholly-owned subsidiary of Rocket Internet AG.
(3) Sum of direct and indirect stakes held by GF Group.
159
Bigfoot II
Bigfoot II was established in March 2012. It groups the Issuers stakes in Zando and Jumia (via Africa
eCommerce Holding GmbH) and in our Southeast Asia fashion retail company Zalora. The following simplified
chart shows Bigfoot IIs shareholders and its portfolio as of August 31, 2014:
Other
Shareholders
Rocket
Internet AG
Summit
Partners
RKT S. r.l.
Kinnevik
Online AB
AI European
Holdings S. r.l.
33.77%
(1)
23.49% 6.53% 34.12% 2.09%
Africa Internet
Group
(Africa Internet
Holding GmbH
(3)
)
Chelsea Wharf
Holdings S. r.l.
Other
Shareholders
AI European
Holdings
S. r.l.
73.95% 28.53%
51.47% 20.00% 19.69% 6.36%
(Africa eCommerce Holding GmbH)
(Zalora Group GmbH) Various Other
Bigfoot II
(BGN Brillant
Services GmbH
(2)
)
(1) The Issuer currently holds 2,069 shares in Bigfoot II that are subject to call options granted to business angels that have not yet been
exercised.
(2) Treasury Shares 0.76%. BGN Brillant Services GmbH is also referred to as Bigfoot II in this prospectus.
(3) The Issuer holds 33.33% of the registered share capital of Africa Internet Group.
As part of the formation of the global fashion group restructuring described above, Bigfoot II will be
contributed to Bigfoot I.
160
BigCommerce
BigCommerce was established in March 2012. It groups the Issuers stakes in Lazada, Namshi (via
Middle East eCommerce Holding GmbH) and Linio (via TIN Jade GmbH). The following simplified chart shows
BigCommerces shareholders and its portfolio as of August 31, 2014:
Rocket Internet
AG
Summit
Partners RKT
S. r.l.
Kinnevik
Online AB
Other
Shareholders
BigCommerce
(TIN Brillant
Services GmbH
(1)
)
Rocket Internet
AG
51.60% 8.45% 13.99% 25.96%
50.88% 67.32%
36.36%
0.46%
6.61% 25.00% 3.97% 20.00% 0.25%
0.89%
17.21%
0.50%
13.08%
40.77%
14.97%
AI
European
Holdings
S. r.l.
Other
Share-
holders
Kinnevik
Online
AB
TESCO
OVERSEAS
INVEST-
MENTS
LIMITED
Blakeney
Chelsea
Wharf
Holdings
S. r.l.
Bigfoot I
Bigfoot GmbH
(2)
Other Share-
holders
Rocket
Internet AG
Rocket
Internet AG
Al Linio
Holdings, LLC
Other Share-
holders
Rocket
Middle
East
GmbH
(3)
1.73%
Lazada Group GmbH
(Middle East eCommerce
Holding GmbH)
(4)
TIN Jade GmbH
(1) TIN Brillant Services GmbH is also referred to as BigCommerce in this prospectus.
(2) The Issuer holds 29.23% of the registered share capital of Bigfoot GmbH.
(3) Rocket Middle East GmbH is 100% owned by Rocket Internet AG.
(4) In connection with the contribution of certain stales held by Holtzbrinck to the Issuer, a transfer of shares in Middle East eCommerce
Holding GmbH held through BigCommerce has been agreed, but execution will only happen once BigCommerce has been restructured.
After the formation of the global fashion group, we expect to dissolve BigCommerce in the medium
term. We expect that cash held by BigCommerce will be contributed to the companies in which BigCommerce
continues to hold a stake after the global fashion group restructuring described above. The allocation of cash to
the various companies has yet to be decided. BigCommerces shares in these companies will be distributed to
BigCommerces shareholders.
Proven Winners
Valuation
The following table provides summarized information concerning our proven winners, their valuation in
the last financing round (last portfolio value LPV) and the corresponding value of the Issuers direct and
indirect stakes in these companies. The LPVs are unaudited numbers that were calculated based on accounting
and controlling records of the Issuer.
161
C
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162
Investment Agreements, Shareholders Agreements and Side Agreements
A number of provisions in the investment and shareholders agreements of our proven winners deviate
from the typical clauses described under Investment Agreements and Shareholders Agreements above. In
the following paragraphs, we present examples of these deviations.
Liquidation Preference. Dafitis shareholders agreement deviates from the typical liquidation
preference, as Bigfoot I ranks among the first shareholders to receive a payment, although Bigfoot I was the first
investor in the company.
Transfers. Under Dafitis shareholders agreement, the Drag Along Right can only be exercised with
Bigfoot Is approval. Further, after a change of control, the Tag Along Right may only be exercised if it is
structured in a way that allows all shareholders to sell their entire interests as limited partners.
Under Lamodas shareholders agreement, any transfer of more than 50% of the assets of Lamoda or
50% of the assets or shares of its operating subsidiaries needs the prior approval of investors who do not receive
an amount equal to at least their total investment plus interest of 15% p.a. from the transfer proceeds.
According to a side agreement between Bigfoot II and Verlinvest S.A. relating to Zalora, Verlinvest
S.A. may require Bigfoot II if an exit event occurs on the level of Bigfoot II to acquire its shares in Zalora
pro rata to the shares of Bigfoot II that are transferred at the exit event. Vice versa, Bigfoot II is entitled to
require Verlinvest S.A. under certain circumstances to sell and transfer all shares in Zalora to Bigfoot II in case
an exit event with respect to all shares of Bigfoot II occurs. Under a different side agreement relating to Zalora
between York Global Finance II S. r.l. and Bigfoot II, York Global Finance II S. r.l. and Bigfoot II have put
and call option rights which are similar to the ones described in the preceding sentences.
Strategic Cooperation with Shareholders. REWE-Zentralfinanz eG is one of the shareholders of
Home24. As part of its contribution, REWE-Zentralfinanz eG provides certain media services to Home24 and
agreed with the Issuer and Home24 to establish a strategic cooperation regarding, among other things, the
exchange of know-how and expertise in particular about retail trends, warehouse logistics, offline marketing and
sourcing in Asia Pacific.
Investment Preference. Lamodas shareholders agreement provides under certain circumstances that
certain shareholders of Lamodas major shareholder Bigfoot I are entitled to participate pro rata to their
respective shareholding in Bigfoot I in any capital increase instead of Bigfoot I in case the latter is not willing to
subscribe for new shares of Lamoda. Similarly, Zaloras shareholders agreement provides under certain
conditions that certain shareholders of Zaloras major shareholder Bigfoot II are entitled to participate pro rata to
their respective shareholding in Bigfoot II in any capital increase instead of Bigfoot II in case the latter is not
willing to subscribe for new shares of Zalora. Similar provisions apply under the shareholders agreements of
Jabong, Lazada and Linio for the benefit of certain shareholders in relation to Bigfoot I as major shareholder of
Jabong and BigCommerce as major shareholder of Lazada and Linio.
163
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164
Investment and Shareholders Agreements
The investment and shareholders agreements of our emerging stars deviate from the typical clauses
described under Investment Agreements and Shareholders Agreements above. In the following paragraphs,
we present examples of these deviations.
Wimdus shareholders agreement provides for a downround protection for one of its major
shareholders, Kinnevik, in case a third party participates in a financing round and is allowed to subscribe for new
shares at a price lower than the price for which Kinnevik subscribed its shares. In this case Kinnevik may
subscribe for such amount of new shares which compensates for its economic dilution.
Under the shareholders agreements of FabFurnish and Zanui, waterfall provisions for the distributions
of profits are not only triggered by a change of control regarding FabFurnish or Zanui but also if certain of their
subsidiaries are sold.
According to Lendicos and Zencaps shareholders agreements, their shareholders have under certain
circumstances a preferential right to acquire shares of Lendicos and Zencaps subsidiaries to the extent these
shares are offered for sale in an exit; if all shares are offered, the shareholders can only exercise their preferential
right for all shares in the subsidiary. If more than one shareholder wishes to exercise its preferential right over
such shares, they are entitled pro rata to their respective shareholdings of Lendico and/or Zencap.
Under foodpandas shareholders agreement Kinnevik has been granted pre-emptive rights in case of an
investment of a new investor and/or a matching of such investment by existing shareholders.
Concepts
Our concepts are companies that have been launched recently or are in the process of being launched.
The incorporation of these companies has been completed and seed financing has been provided by us or is to be
provided shortly. Most concepts have yet to complete a financing round with external investors, which means
that their value is not explicitly reflected in our overall portfolio value. Spotcap received initial external funding
in the aggregate amount of 12 million and funding from a wholly-owned subsidiary of the Issuer of 1 million
in July and August 2014, leading to a valuation including this funding of 33 million.
Regional Internet Groups
Valuation
We have set up regional Internet groups that allow us to partner with strategic investors that have a
strong position in a particular region. Both the strategic investors and we expect to profit from synergies that can
arise out of our cooperation. So far, we have set up four regional Internet groups in total. They cover Africa, Asia
Pacific, Latin America and the Middle East.
The following table summarizes information regarding the last financing rounds of our regional Internet
groups:
Regional Internet Group
Foundation
(year)
Date of last
financing round
Amount
(m)
Stake
(%)
Valuation
(m)
Stake of the
Issuer (%)
Value of Issuer
stake
(m)
Africa Internet Group . . . . . . . . . . . . . . . . . . . . . . . 2012 Dec. 2013 168.0
(1)
33.3
(1)
504.0
(1)
33.33 168.0
Asia Internet Group . . . . . . . . . . . . . . . . . . . . . . . . . 2013 Apr. 2014 180.0 50.00 360.0 50.00 180.0
Middle East Internet Group . . . . . . . . . . . . . . . . . 2013 Dec. 2013 60.0 50.00 120.0 50.00 60.0
Latin America Internet Group . . . . . . . . . . . . . . 2012 Dec. 2013 50.0 18.75 266.7 65.00 173.3
(1) Refers only to stake acquired by MTN. Further investments by Millicom of 105 million as of the same date have not been taken into
account to assess the price per share as those have been pre-agreed.
The following sections set forth information about the corporate structure of our regional Internet
groups and their financing rounds.
Shareholders Agreements
In addition to some of the typical provisions described above under Investment Agreements and
Shareholders AgreementsShareholders Agreements, the shareholders agreements relating to our regional
Internet groups contain specific provision relating to a change of control of the Issuer, exclusivity and non-
compete obligations, which are summarized below.
165
Rocket Internet Change of Control. The shareholders agreements of our regional Internet groups
contain provisions relating to a change of control of the Issuer. If the Issuer is no longer controlled by one or
more of Alexander Samwer, Marc Samwer or Oliver Samwer, then the Issuer may either be required to sell to the
other shareholders of the regional Internet group its shares in such regional Internet group at a price equal to their
fair market value less a discount of 10% to 15% or to purchase all shares in the regional Internet group held by
the other shareholders of the regional Internet group at fair value.
Rocket Internet Exclusivity. The shareholders agreements of our regional Internet groups contain a
regional exclusivity clause. The Issuer has to present all investment or business opportunities it pursues or
intends to develop in the region of the regional Internet group that are in the fields of Internet, telecom,
technology or new media to the regional Internet group first and to give the regional Internet group the right to
develop the opportunity through either an investment or operational participation. The end of the exclusivity
differs from regional Internet group to regional Internet group, with the latest end date being September 30, 2019.
After the end of the exclusivity, the other shareholders in the regional Internet group are typically given a
preferential right to provide project financing.
Rocket Internet Non-Compete. The shareholders agreements of our regional Internet groups contain a
non-compete clause relating to activities of the Issuer and its worldwide affiliates in the region of the regional
Internet group. The non-compete provisions expire between September 2015 and December 2018.
Obligation to Launch New Businesses. For a period ending either in September 2015, September 2016
or September 2018 the other shareholders are entitled to request from the Issuer that the regional Internet groups
launch at least 5 or 6 particular Internet-based businesses in their regions per calendar year and that the respective
regional Internet group provides all necessary means for such launches. If the Issuer believes that the planned
Internet-based business will not be successful, the shareholder requesting such launch has to provide the
necessary financial means.
Africa Internet Group
Africa Internet Group groups the Issuers stakes in a number of our e-commerce and marketplace
companies that are active in Africa. The following chart shows Africa Internet Groups shareholders and its
portfolio as of August 31, 2014:
Rocket Internet AG
33.33% 33.33% 33.33%
Millicom
International
Cellular S.A.
Africa Internet Group
(Africa Internet Holding GmbH)
MTN Group
Limited
Bigfoot II
BGN Brillant
Services GmbH
(1)
Chelsea Wharf Holding
S. r.l.
(Africa eCommerce Holding GmbH)
(AIH Subholding
Nr. 8 UG (hb.) & Co. KG)
(AIH Subholding Nr. 12
UG (hb.) & Co. KG)
Various Others
20.00% 28.53%
84.00%
(2)
84.00%
(2)
84.00%
(2)
84.00%
(2)
84.00%
(2)
84.00%
(2)
51.47%
(AIH General Merchandise
UG (hb.) & Co. KG)
(Juwel 194. V V UG (hb.)
Erste Verwaltungs KG)
84.00%
(2)
87.83%
(2)
brand brand
(AIH Subholding Nr. 9
UG (hb.) & Co. KG)
(AIH Subholding Nr. 15
UG (hb.) & Co. KG)
(AIH Subholding Nr. 10
UG (hb.) & Co. KG)
(AIH Subholding Nr. 11
UG (hb.) & Co. KG)
(1) The Issuer indirectly holds 33.77% of the registered share capital of BGN Brillant Services GmbH (Bigfoot II).
(2) The remaining shares are held by Bambino 53. V V UG, acting as trustee for certain senior management members, and some members
of the senior management team directly.
The funds committed by MTN and Millicom in the last financing round will be provided to Africa
Internet Group upon the issuance of capital call notices. The first 42 million will be provided only by MTN as a
catch-up. Thereafter, MTN will pay up to 12 million and Millicom will pay up to 10 million per capital call.
As of the date of this prospectus, a total of 30 million has been paid in.
166
Pursuant to the terms of Africa Internet Groups shareholders agreement, Millicom and MTN are
entitled to request from the Issuer to sell and transfer all of the Issuers shares held in Africa Internet Group to
Millicom and MTN, if the Issuer is no longer controlled by one or more of the Samwer brothers. This call option
expires on September 16, 2016.
A side agreement among Oliver Samwer, MTN and Millicom extends the exclusivity and non-compete
arrangements described above under Shareholders Agreements to Oliver Samwer.
Asia Internet Group
Asia Internet Group groups the Issuers stakes in a number of our e-commerce and marketplace
companies that are active in Southeast Asia. The following chart shows Asia Internet Groups shareholders and
its portfolio as of August 31, 2014:
Various Other
(Emerging Markets Asia
eCommerce Holding GmbH)
Kinnevik
Online AB
Bambino 53.
VV UG
0.87%
10.53%
67.45%
(Azmalo S. r.l.)
Tengelmann
Other
Shareholders
15.60%
16.95%
57.14%
(Car Classifieds
Asia S. r.l.)
Aismare
Tengelmann
14.29%
14.29%
68.18%
(ECommerce
Holding I S. r.l)
Holtzbrinck
Tengelmann
10.25%
13.99%
66.66%
(Classifieds Asia
S. r.l.)
Aismare
Tengelmann
16.67%
16.67%
Other
Shareholders
0.01%
(PricePanda
Group GmbH)
Kinnevik
Online AB
Tengelmann
12.76%
14.97%
Bambino 53.
VV UG
AI Wokaer
Holding S.P.C.
(1)
50.0% 50.0%
Rocket
Internet AG
Asia Internet Group
(Asia Internet Holding S. r.l.)
88.60%
71.92%
Bambino 53.
VV UG
7.58%
Cohen
14.29%
0.35%
19.20%
Phenomen
Latin America
Internet Group
(MKC Brillant Services GmbH
(2)
)
Other
Shareholders
(Emerging Markets
Taxi Holding S. r.l.)
14.26%
47.53%
19.01%
(EC
i M k t
(Emerging M ing Ma ng M ng M ing Ma ng Ma nng M rkets
(1) Al Wokaer Holding S.P.C, is a wholly owned subsidiary of Ooredoo Q.S.C.
(2) The Issuer holds 65.00% of the registered share capital of MKC Brillant Services GmbH (LIG).
Al Wokaer Holding S.P.C. committed in the financing round to make a total investment of 180 million.
Thereof, a 50 million payment was made in September 2014. The remainder of 130 million is to be paid to
Asia Internet Group upon the issuance of capital call notices in an amount of up to 10 million each.
167
Latin America Internet Group
The following chart shows Latin America Internet Groups shareholders and its portfolio as of
August 31, 2014:
Rocket Internet AG
(Jade 1159. GmbH)
35.00% 65.00%
Latin America Internet Group
(MKC Brillant Services GmbH)
(Jade 1221. GmbH)
(Jade 1353. GmbH) (Jade 1218. GmbH)
68.17%
68.55%
86.03% 72.46%
Millicom International
Cellular S.A.
Various Other
(Emerging Markets
Taxi Holding S. r.l.
(1)
)
47.53%
Kinnevik
Online
AB
Bambino 53.
V V UG
Kinnevik
Online
Ventures AB
Bambino 53.
V V UG
Kinnevik
Online
Ventures AB
Bambino 53.
V V UG
Kinnevik
Online
Ventures AB
Bambino 53.
V V UG
19.61%
7.93%
13.55%
0.42%
19.61%
9.39%
24.34%
7.48%
Asia Internet
Group
(Asia Internet Holding)
Phenomen
Ventures LP
19.01%
14.26%
Other
Shareholders
19.20%
Rocket Internet
AG
2.45%
Jade 1159 Gmb G b G b G b GGG bbH)
(1) The Issuer indirectly holds 40.40% of the registered share capital of Emerging Markets Taxi Holding S. r.l.
Pursuant to the terms of the investment agreement, Millicom had the right to exercise a call option by
September 14, 2014. It granted Millicom the right to subscribe for another 15% of LIG against payment of
100 million. Millicom did not exercise this option. As this call option was not duly and timely exercised by
Millicom, the Issuer may purchase the shares in LIG acquired by Millicom in the first two financing rounds in
return for 100 million. The Issuer currently intends to continue its partnership with Millicom and, accordingly,
does not intend to exercise this right.
LIGs shareholders agreement provides for the pro rata distribution of all net proceeds from disposals
of participations, provided that such proceeds exceed 10 million. If the Issuer transfers more than one-third of
its shares in LIG to third parties, LIGs shareholders may sell and transfer along any shares they hold in Latin
America Internet Group. If the Issuer exercises its Drag Along Right with regard to shares in LIG, LIGs
shareholders that are subject to drag along may exit their positions in any network companies held by LIG at the
same time by way of a tag along.
168
Middle East Internet Holding
The following chart shows Middle East Internet Holdings shareholders and its portfolio as of
August 31, 2014:
Middle East Internet
Group S. r.l.
(Middle East Internet Holding S. r.l.)
MTN (Dubai)
Limited
50.0% 50.0%
Ecommerce
Holding III S. r.l.
100%
(Lamudi Middle East S. r.l.) (Carmudi Middle East S. r.l.)
100%
Various Other
iMENA
Classifieds Ltd.
National Company
for Business
Solutions Ltd.
Bambino 53.
V V UG
12.50% 25.00%
62.50%
0.01%
100%
(Ecommerce Taxi
Middle East S. r.l.)
Rocket
Internet AG
Out of the total commitment of 60 million, a 40 million payment was made in May 2014. The
remaining 20 million shall be paid in based on capital calls. As of the date of this prospectus, a capital call has
not been issued. From March 31, 2015, certain net revenue and EBITDA thresholds apply.
A side agreement between Oliver Samwer and MTN (Dubai) Limited extends the exclusivity and
non-compete arrangements described above under Shareholders Agreements to Oliver Samwer.
Strategic Participations
As of August 31, 2014, the Issuers direct and indirect stakes in our strategic participations were valued
in the aggregate at 182 million based on the valuation assigned in the contribution agreement dated August 15,
2014 and the latest financing rounds or secondary transactions. Our strategic participations include stakes in legal
entities that are well aligned with our focus sectors and geographies.
Other Investments
As of August 31, 2014, the Issuers direct and indirect stakes in our other investments were valued in
the aggregate at 238 million based on the contribution agreements dated August 15, 2014 and the latest
financing rounds or secondary transactions.
Cash Requirements and Cash Position
We do not pool our cash and typically keep the cash of our different entities separate. Accordingly, our
cash in bank, committed investment inflows or cash facilities is dispersed over a large number of entities.
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As of June 30, 2014, on an unconsolidated basis, the Issuer had cash and cash equivalents of
25.8 million. On a consolidated basis, the cash and cash equivalents of the Group amounted to 80.5 million as
of the same date. The sum of the cash in bank, committed investment inflows or cash facilities for our
intermediate holding companies, regional Internet groups and the holding legal entities of our companies
amounted to 1.4 billion as of June 30, 2014. As most of our companies have a negative cash flow from
operating activities and a negative cash flow from investing activities, we depend on external capital resources.
The following table sets forth the cash requirements of our proven winners. The cash requirements are defined as
the sum of the cash outflows from operating activities and cash outflows from investing activities.
Year ended December 31,
2012 2013
(unaudited)
(in million)
Dafiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 59
Lamoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 59
Jabong
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 54
Zalora . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 71
Namshi
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 7
Lazada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 41
Linio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 28
Jumia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 29
Home24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 29
Westwing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 39
Hellofresh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a 5
(1) Jabongs fiscal year ends on March 31.
(2) Refers to MENA Style Fashion UG (haftungsbeschrnkt) & Co. KG (holding company of Namshis operating entity).
The following tables show the cash positions of our proven winners, emerging stars and regional
Internet groups as of June 30, 2014. The numbers reflect cash held with banks, committed investment inflows
and cash facilities (including committed but not yet paid-in capital). The numbers exclude subholdings and local
operating entities.
Proven Winners
Cash Position
As of June 30, 2014
(unaudited)
(in million)
Dafiti . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Lamoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Jabong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Zalora . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Lazada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Linio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Namshi
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Jumia
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
Hellofresh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Home24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Westwing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 587
(1) Middle East eCommerce Holding GmbH.
(2) Jumias cash requirements are also met with cash from the Africa Internet Group.
Emerging Stars
Cash Position
As of June 30, 2014
(unaudited)
(in million)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Cash held with banks, committed investment inflows and cash facilities (including committed but not
yet paid-in capital) of our intermediate holding companies and regional Internet groups are mainly used to
provide liquidity to underlying companies. These resources are not allocated to specific underlying companies.
Cash is deployed to the underlying companies through financing rounds, which means that the share of our
intermediate holding companies and regional Internet groups in the relevant underlying companies can increase if
outside shareholders do not participate in the financing round.
170
Intermediate Holding Companies
Cash Position
As of June 30, 2014
(unaudited)
(in million)
Bigfoot I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Bigfoot II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
BigCommerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
Regional Internet Groups
Cash Position
As of June 30, 2014
(unaudited)
(in million)
Africa Internet Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Latin America Internet Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Asia Internet Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Middle East Internet Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 548
For more information on the cash management process, see BusinessThe Issuers Platform
ProcessesScale.
171
REGULATORY ENVIRONMENT
Our business activities are subject to various regulatory requirements under EU law, applicable national
laws of the European countries, as well as of non-European countries (laws, regulations, administrative rules,
judicial and regulatory orders, etc.). These relate especially to intellectual property law, data protection,
cybersecurity, consumer protection and product safety.
The following provides a brief overview of selected regulations with a focus on EU regulation that are
applicable to our Groups business activities. In terms of the regulatory fields described below, the EU sets high
standards in comparison to other jurisdictions in which our Group operates its business. EU regulations
(EU-Verordnungen) apply directly in all member states of the European Union (the EU Member States). As a
result, our business is subject to these rules in all EU Member States. In contrast, EU directives (EU-Richtlinien),
while binding EU Member States as to the result to be achieved, need to be implemented into national law.
Hence, regarding those standards contained in EU directives that are applicable to our business, national
implementing rules can differ slightly from one EU Member State to another. To the extent governed by
EU regulations or national laws that are based on EU directives, the regulatory environment in most other
EU Member States and the member states of the European Economic Area is similar to the regulatory framework
in Germany. The Issuer holds minority shareholdings in various companies, and it therefore may not be able to
control compliance of these companies with legal requirements. The regulatory requirements applicable to our
business activities are subject to change, as they are continuously adapted at the national, European and
international levels.
A potential failure to meet legal requirements might lead to costs and/or sanctions. This may negatively
impact the reputation and general business activity, as well as the net assets, financial position and results of
operations of our Group.
Trademarks and Internet Domain Names
The registration and protection of trademarks is regulated by international, European and national
legislation. At international level, trademark registration and protection is, inter alia, governed by the Madrid
Agreement Concerning the International Registration of Marks of 14 April 1891 (as last amended on
28 September 1979) (the MMA) the Protocol Relating to the Madrid Agreement Concerning the International
Registration of Marks of 27 June 1989 (the PMMA) and the Paris Convention for the Protection of Industrial
Property of 20 March 1883 (as last amended on 20 August 1984). At EU level, trademark law is governed by
Directive 89/104/EC of the Council of 21 December 1988 on the approximation of the laws of the Member States
relating to trademarks and specifically with regard to the creation of a EU-wide trademark registration and
protection regime by Council Regulation (EC) No 40/94 of 20 December 1993 on the Community Trademark
as amended by Council Regulation (EC) No 207/2009 of 26 February 2009 (the Community Trademark
Regulation). In Germany, trademark law is governed by the German Federal Trademark Act (the Trademark
Act) (Markengesetz).
Trademarks may be registered with the respective national trademark authority, such as the German
Patent and Trade Mark Office, as well as with the Office for Harmonization in the Internal Market (the
OHIM) for EU-wide registration, and following either the national or EU-wide registration via the World
Intellectual Property Organization in countries which are parties to the MMA or PMMA, for 10-years periods
which can be repeatedly renewed. Upon application the OHIM examines whether there are grounds for refusal of
protection for the trademark. Grounds for refusal may arise, inter alia, from earlier, identical or similar
trademarks in one of the EU Member States, as well as in case the trademark is devoid of distinctive character.
Further, proprietors of earlier trademarks may oppose against the registration of the applied trademark within
three month from the publication of the application on the grounds, inter alia, that the applied trademark and the
products or services which are sold under it are identical of similar to their trademark and the products of
services sold under the earlier trademark. Upon registration of a Community trademark the proprietor is entitled
to prevent all third parties from using it in the course of trade without his prior consent. In addition, national
trademark laws of the EU Member States such as the Trademark Act stipulate that the proprietor of a Community
trademark is entitled to, inter alia, compensation for damages arising from unlawful use.
The reservation, transfer and renewal of generic top level Internet domain names (such as .com and
.biz) and national top level Internet domain names (such as .de and .at) are administered by the Internet
Corporation for Assigned Names and Numbers (ICANN) (ICANN) which is a US-based non-profit organization.
The reservation, transfer and renewal of second level Internet domain names (such as rocket-internet.com and
rocket-internet.de) are administered by certain registrars which are accredited by ICANN. Internet domain names
ending with .de are administered by DENIC eG (DENIC), a Germany-based non-profit organization.
Reservations of second level Internet domain names are made by DENIC on a First come first served-basis.
172
However, in case the use of the reserved domain name infringes third parties trademarks (or name rights),
the proprietor of the infringed trademark (or name) has under certain conditions the right to file an injunction
against, inter alia, any person or entity having reserved or using such Internet domain name. The proprietor may
also be entitled to compensation for damages arising from the infringing use of its trademark. Further, specific
dispute resolution proceedings are available for certain domain name disputes, namely arising from infringements of
trademark (or name rights); e.g. the ICANN Uniform Name Dispute Resolution Policy which applies to disputes
concerning abusive reservation and use of a domain name in the generic and certain national top-level domains. In
contrary, DENIC refers to the German courts for any disputes arising from the reservation and use of national
Internet domain names. German courts allow, inter alia, requests for a cancellation but not for a transfer of the
disputed domain names. By making a DISPUTE-entry on the disputed domain name with DENIC, however, such
domain name is transferred automatically to the claimant upon cancellation.
Accordingly, holders of domain names who are also proprietors of the trademarks corresponding to such
domain names are entitled under certain conditions to any rights vis--vis third parties to defend their domain
names against abusive reservation or use on the grounds of trademark regulation.
Data Protection and Cybersecurity
The collection, processing and other use of personal data is extensively regulated by both European and
national legislation. At EU level, data privacy law is primarily governed by Directive 95/46/EC of the European
Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing
of personal data and on the free movement of such data (the Data Protection Directive) and specifically
with respect to electronic communication by Directive 2002/58/EC of the European Parliament and of the
Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic
communications sector (the Directive on Privacy and Electronic Communications). In Germany, general
data privacy law is governed by the German Federal Data Protection Act (the Data Protection Act)
(Bundesdatenschutzgesetz). In addition, various sector specific statutes set forth specific data privacy rules which
apply to certain industries or businesses and prevail over the general rules of the Data Protection Act.
E-commerce providers have to comply with the specific requirements provided in the German Telemedia Act
(the Telemedia Act) (Telemediengesetz) which take into consideration the peculiarities of online
communication and may deviate from the general rules of the Data Protection Act. For example, the Telemedia
Act on the one hand provides for additional information obligations which go beyond the general requirements of
the Data Protection Act. However, on the other hand, the Telemedia Act allows for electronic declarations of
consent while the Data Protection Act, in principle, requires the written form. Compared to other European
jurisdictions, the German data privacy law is known to be rather strict. For example, the Data Protection Act
provides for a detailed regulatory system for commissioned data processing (Datenverarbeitung im Auftrag)
which has to be implemented in particular in the context of IT outsourcings.
The European legislature is currently considering substantial changes to the EU data protection regime
by way of the proposed Regulation of the European Parliament and of the Council on the protection of
individuals with regard to the processing of personal data and on the free movement of such data (the General
Data Protection Regulation). The current draft includes, inter alia, the replacement of the current national data
protection laws by a directly applicable EU regulation and the increase of the maximum level of fines for
compliance failures to up to 100 million or 5% per cent of global annual turnover. As a result, the General Data
Protection Regulation would, if implemented in its current form, impose a substantially increased risk of fines for
non-compliance on all data processing entities. Also, the current draft provides for additional information
requirements in the data privacy notice of a website, including a controversially debated two step icon solution
pursuant to which the operator of a website has to post certain pop-up icons which correspond to the categories of
data processing applied on the website. However, the General Data Protection Regulation is still being negotiated
between the European Parliament and the European Commission and it is not currently possible to foresee its
precise content and wording. On March 12, 2014, the European Parliament has discussed the General Data
Protection Regulation at first reading.
In general, data privacy laws regulate when and how personal data may be collected, for which purposes
they may be processed, for how long they may be stored and to whom and how they may be transferred. The
transfer of personal data to entities outside the European Economic Area (the EEA) is subject to specific
requirements. Further, data privacy laws require organizational measures such as installation of a data protection
officer (Datenschutzbeauftragter), set forth the rights of data subjects (i.e., the persons to whom the personal data
relates (e.g. information rights) and determine the sanctions for infringements. The following items illustrate
selected areas of data privacy protection which are of particular relevance in the e-commerce sector:
E-mail advertising: Subject to certain exceptions, e-mail advertisements (e.g. newsletters, product
recommendations or sales announcements) may only be sent to addressees who have given their
173
explicit prior consent. In Germany, the way in which such consent must be obtained is regulated in
detail and typically requires a double opt-in procedure. Pursuant to such procedure, data subjects
will need to give their consent twice (e.g., once by filling out an online subscription form, a second
time by confirming their e-mail address after they subscribe). Also, data subjects must be clearly
informed on the scope and consequences of their consent. A declaration of consent may not be
hidden in general terms and conditions or merged with other declarations. Consent may be
withdrawn at any time without giving a reason. As an exception from the consent requirement,
personalized product recommendations may be sent to customers without their explicit prior
consent provided, inter alia, that such recommendations only relate to goods identical or similar to
those previously purchased by the respective customer.
Web analysis: Web analysis technologies such as cookies or tracking tools (e.g. Google Analytics
and Webtrekk) enable the operator of a website to personalize its offers and marketing to better
match the customers interests. Even though most web analysis tools anonymize or pseudomize
collected data and do not allow for a subsequent allocation of data to individual data subjects, the
use of such tools may still be subject to data privacy laws. For example, the use of cookies is
regulated by the Directive on Privacy and Electronic Communications which provides for an opt-in
regime pursuant to which the use of cookies requires an informed consent of the website user.
While the Directive on Privacy and Electronic Communications has not yet been fully implemented
in all EU Member States (e.g. not in Germany), certain governments have already enacted or are
considering measures that could significantly restrict the ability of companies to engage in web
analysis activities, such as by regulating the level of consumer notice and consent required before a
company can employ cookies or other electronic tracking tools.
Social plugins: Social plugins such as Facebooks Like-button help to promote a website through
social media and to communicate with fans and followers. The issue whether and how social
plugins may be used in compliance with data privacy laws has not yet been decided by law or by
court and webshop operators must rely on the recommendations of legal scholars and practitioners.
For example, some German data protection authorities recommend the use of a two-click-solution,
pursuant to which the website user must first activate the social plugins before being able to
actually click on the Like or similar buttons. This two-click-solution would ensure that no
personal data are collected through social plugins without the consent of the data subject, which
consent is given by activating the social plugins with the first click.
E-commerce providers are also subject to general regulations on cybersecurity. For example, pursuant to
German data privacy law, entities that collect and process personal data must implement certain technical and
organization measures. These measures may include, inter alia, physical security against unauthorized access and
manipulation (e.g. secure storing and transportation of physical data carriers), password assignment,
authorization concepts, logging of subsequent changes of data, separation of data which has been collected for
different purposes, reasonable encryption as well as protection against accidental loss, destruction or damage. In
addition, according to general corporate laws, incorporated companies must implement appropriate risk
management systems that also cover the detection and control of IT-related risks. Further compliance burdens
may be introduced by new EU legislation. The European legislator is currently considering a new EU directive
on cybersecurity, a draft of which has passed European Parliament in January 2014. If this draft regulation
became law in its current form, it would introduce substantial additional duties with respect to risk management
and incident reporting. In particular, operators providing so-called information society services (e.g.
E-commerce platforms) which are subject to the new regime would have to adopt risk management practices for
network and information security that are state of the art and ensure a level of security appropriate to the risk at
hand, and must report to national authorities incidents having a significant impact on the security of their core
services. Within certain limits, the national authority would have the right to inform the public of such incidents.
The scope of the directive is still being discussed. In particular, it is not yet decided whether apart from certain
infrastructure operators e-commerce platforms and social media in general will be subject to the new regime.
Consumer Protection Law
Online retailers who offer their goods and services to consumers must comply with various consumer
protection laws. Throughout the EU, consumer protection is extensively regulated on the basis of the following
EU directives:
the Council Directive 93/13/EEC of April 5, 1993 on unfair terms in consumer contracts;
the Directive 1999/44/EC of the European Parliament and of the Council of May 25, 1999 on
certain aspects of the sale of consumer goods and associated guarantees;
174
the Directive 2000/31/EC of the European Parliament and of the Council of June 8, 2000 on certain
legal aspects of information society services, in particular electronic commerce, in the internal
market (Directive on electronic commerce);
the Directive 2002/58/EC of the European Parliament and of the Council of July 12, 2002
concerning the processing of personal data and the protection of privacy in the electronic
communications sector (Directive on privacy and electronic communications);
the Directive 2005/29/EC of the European Parliament and of the Council of May 11, 2005
concerning unfair business-to-consumer commercial practices in the internal market (Unfair
Commercial Practices Directive); and
the Directive 2011/83/EU of the European Parliament and of the Council of October 25, 2011 on
consumer rights (the Directive on Consumer Rights) which replaced the Directive 97/7/EC of the
European Parliament and of the Council of May 20, 1997 on the protection of consumers in respect
of distance contracts with effect as of June 13, 2014.
The aforementioned EU directives on consumer protection and the national laws which implement or
complement these directives impose extensive duties and responsibilities on online retailers, including the
following:
Online purchases constitute distance contracts that are subject to specific consumer protection.
Pursuant to the Directive on Consumer Rights, with effect from June 13, 2014, consumers have the
statutory right to withdraw from a distance contract within 14 days after receipt of goods (or within
a period of 12 months and 14 days after receipt of goods if the consumer has not been properly
informed about its statutory right of withdrawal). Withdrawal must be exercised by distinct
declaration towards the seller (e.g. in writing, per e-mail or phone). If the statutory right of
withdrawal is exercised, within 14 days, the customer must return the goods and the seller must
reimburse the purchase price including shipping costs (if any) except that the seller must not
reimburse the supplementary costs, if the consumer has expressly opted for a type of delivery other
than the least expensive type of standard delivery offered by the seller (e.g. express delivery). The
customer, on the other hand, has to bear the costs for the return of goods unless the seller has failed
to inform the customer accordingly or the seller has expressly agreed to assume these costs. The
Directive on Consumer Rights does not regulate who bears the risk for accidental damages or loss
in the context of the return of goods when the consumer exercises the right of withdrawal. This
matter is subject to the national laws of the EU Member States. Under German law the consumer is
only required to pay compensation for a loss of value if the loss of value is due to the consumer
handling the relevant product in a way that was not necessary for the examination of the products
quality, its features or its functioning.
Online retailers must comply with extensive and formalized information requirements. They have
to provide their (potential) customers with detailed and accurate information, inter alia, on the
offered goods, on the way a binding contract can be concluded, on price and payment details, on
their return policy, on the statutory right to withdraw from a contract (irrespective of any more
beneficial return policy that may be afforded by the online retailers, on their general terms of sale
and on statutory warranties). EU directives and national laws set out detailed criteria on when,
where and by which means this information has to be provided. Online retailers have to implement
these requirements in the design and structure of their online-shops, in their ordering and payment
processes and in their delivery systems. Due to changes in legislation, online retailers have to adapt
their shop design on an ongoing basis. For example, as a result of the Directive on Consumer
Rights, they had to implement a button solution pursuant to which a binding purchase can only be
completed by clicking on a button that is explicitly labeled buy now (or similar) and which can
be found in the immediate proximity of a summary of certain key information relating to the
purchase. Failure to comply with these information requirements may give rise to civil liability,
administrative orders (including injunctive relief) or fines and may in some cases result in an
extension of warranty periods or even in the invalidity of the affected customer contracts.
Advertising, including promotional games, newsletters and personalized product recommendations, is
heavily regulated, in particular if distributed through e-mail. An advertisement must not be misleading, constitute
an unreasonable nuisance or make use of harassment, coercion or undue influence. These criteria leave wide
room for interpretation and the assessment of courts and other competent bodies is often hard to foresee.
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Product Safety
Retailers who place products on the market in the European Union have to ensure that the products are
safe. This is also the purpose of the Directive 2001/95/EC of the European Parliament and of the Council of
December 3, 2001 on general product safety (the Directive on Product Safety), according to which
manufacturers must put on the market products which comply with general safety requirements. In addition, they
must provide consumers with the necessary information in order to assess a products inherent threat, particularly
when this is not directly obvious and they must take the necessary measures to avoid such threats (e.g. withdraw
products from the market, inform customers, recall products which have already been supplied to customers etc.).
In this context, it is important to know that under the Directive on Product Safety just like under most other
European and/or national legislation on product safety an importer (i.e., in most cases also a retailer) of a
product that was produced in a country outside of the EU qualifies as the manufacturer of the product. According
to the Directive on Product Safety distributors are obliged to supply products that comply with the general safety
requirement, to monitor the safety of products on the market and to provide the necessary documents ensuring
that the products can be traced. If the manufacturers or the distributors discover that a product is dangerous, they
must notify the competent authority and, if necessary, cooperate with them.
In Germany, the Directive on Product Safety has been implemented by the Act on Product Safety
(Gesetz ber die Bereitstellung von Produkten auf dem Markt) of November 8, 2011. Further details are
determined in various governmental regulations (Rechtsverordnungen) on the safety of specific products/product
groups. A violation of the requirements of European and/or national law may be sanctioned with a fine and in
severe cases with a criminal sanction.
Moreover, the Act on Food, Feed and Consumer Products (Lebensmittel-, Bedarfsgegenstnde- und
Futtermittelgesetzbuch) as well as the Governmental Regulation on Consumer Products
(Bedarfsgegenstndeverordnung) have to be observed by any retailer when performing its business in Germany.
Both acts are primarily aimed at the health protection of the consumers that get into contact with certain products
and grant extensive powers to the competent authorities in order to supervise the compliance of the
manufacturers and the distributors of products with their legal duties. A violation of the requirements of the Act
on Food, Feed and Consumer Products may be sanctioned with a fine and in severe cases with a criminal
sanction.
Capital Investments Act
The German Capital Investment Act (Kapitalanlagegesetzbuch) was passed on May 16, 2013, by the
German Federal Parliament (Bundestag) and enacted on July 22, 2013. It replaces the German Investment Act
(Investmentgesetz) and transposes the European Directive 2011/61/EU on the administration of alternative
investment funds. The legislation stipulates that the investment criteria applied to the collected capital must be
binding, in writing, and with a scope that goes beyond a generic business strategy in order for a company to
qualify as an investment asset pursuant to the Capital Investment Act. The difference between a defined
investment strategy and a general business strategy of a company lies in the fact that the investment criteria are
precisely specified and the scope of action is limited by the investment requirements and the articles of
association.
In June 2013, the BaFin published an interpretative letter specifying the bills scope. According to this
letter, only funds that, amongst others, follow a fixed investment strategy (festgelegte Anlagestrategie) opposed
to a general business strategy (Unternehmensstrategie), will be subject to the new regulation. According to the
BaFin, such a fixed investment strategy is characterized by the detailed regulation of the investment criteria and a
restriction of the investment discretion in the by-laws, statutes or other binding documentation. Given that the
Issuers and its subsidiaries statutory purpose leaves the management with wide entrepreneurial discretion and
full managerial flexibility, we believe that under this preliminary guidance, neither the Issuer nor any of our
companies, intermediate or regional Internet groups qualify as an alternative investment fund.
176
INFORMATION ON EXISTING SHAREHOLDERS
Major Shareholders
The current shareholders of the Issuer that, as of the date of the prospectus, directly or indirectly, have an
interest in the Issuers capital and voting rights exceeding 3%, are:
Global Founders GmbH, registered with the commercial register of the local court of Munich under
HRB 173912, having its registered office at Luisenstr. 14, 80333 Munich, Germany;
Emesco AB, registered with the Swedish Companies Registration Office (SCRO) under registration
no. 556035-3749, having its registered office at Skeppsbron 18, 10313 Stockholm, Sweden;
United Internet Ventures AG, registered with the local court (Amtsgericht) of Montabaur under
HRB 23538, having its registered office at Elgendorfer Strasse 57, 56410 Montabaur, Germany;
PLDT Online Investments PTE. LTD., registered with the Accounting & Corporate Regulatory
Authority of Singapore of the Republic of Singapore under registration number 201422660K, having its
business address at 545 Orchard Road, #15-08/09, Far East Shopping Centre, Republic of Singapore
(238882); and
AI European Holdings S. r.l., registered with the Luxembourg Trade and Company Register (Registre
de Commerce et des Socits Luxembourg) under B 168122, having its registered office at 15-17,
avenue Gaston Diderich, L-1420 Luxembourg.
The following chart sets forth those entities holding, directly or indirectly, participations in the Issuer:
52.3% 18.1% 10.4% 111111111 8.4%
Global Founders GmbH
8888 8.3% 2.5%
(1)
(1) Verdere S. r.l. is the largest shareholder of Investment AB Kinnevik in terms of voting rights.
In addition, most of the Issuers existing shareholders hold equity participations in various companies
(see Corporate Structure, Financing Rounds and Management).
Shareholder Structure (Before and After the Offering)
The following table sets forth the principal indirect and direct existing shareholders and one other
shareholder of the Issuer immediately prior to the offering, and their expected shareholdings, together with the
expected shareholding of the public float, upon completion of the offering.
Beneficial (indirect) Ownership (in %)
immediately prior to
the offering upon completion of the offering
Indirect Shareholder Direct Shareholder
(assuming
placement of all
New Shares and no
exercise of
Greenshoe Option)
(assuming
placement of all
New Shares and full
exercise of
Greenshoe Option)
Marc, Oliver and
Alexander Samwer . . . . . . . . . . Global Founders GmbH. . . . . . . . . . 52.32%
(1)
41.06% 39.78%
Verdere S. r.l. . . . . . . . . . . . . . . . . . Emesco AB
(2)
. . . . . . . . . . . . . . . . . . . . . 18.08% 14.19% 13.75%
United Internet AG . . . . . . . . . . . . United Internet Ventures AG . . . . 10.42% 8.18% 7.92%
Philippine Long Distance
Telephone Company . . . . . . . .
PLDT Online Investments
PTE. LTD. . . . . . . . . . . . . . . . . . . . . . . . . 8.40% 6.59% 6.39%
Len Blavatnik . . . . . . . . . . . . . . . . . . AI European Holdings S. r.l. . . . 8.26% 6.48% 6.28%
HV Holtzbrinck Ventures
Holding GmbH . . . . . . . . . . . . . Holtzbrinck Ventures
(3)
. . . . . . . . . . 2.51% 1.97% 1.91%
Other shareholders/Public free float
(4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.52% 23.98%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00% 100.00% 100.00%
177
(1) This figure includes aggregate shareholdings of 1.36% of the Issuers share capital which are held by Marc, Oliver and Alexander
Samwer through MOAS GmbH & Co. KG, MOAS Nr. 2 GmbH & Co. KG and MOAS Nr. 3 GmbH & Co. KG.
This figure does not include a shareholding of 0.53% of the Issuers share capital which is held by GFG through Juwel 218. V V UG
(haftungsbeschrnkt) (Juwel). HV Holtzbrinck Ventures Fund IV LP and Holtzbrinck Ventures NM GmbH & Co. KG have a
sub-participation in Juwel which allows them to request from Juwel the transfer of all shares held by Juwel in the Issuer after completion
of the offering.
(2) Emesco is a subsidiary of Investment AB Kinnevik. Verdere S. r.l. is the largest shareholder of Investment AB Kinnevik in terms of
voting rights.
(3) Holtzbrinck Ventures encompasses HV Holtzbrinck Ventures Fund IV LP, Holtzbrinck Ventures NM GmbH & Co. KG and
HV Holtzbrinck Ventures Fund V GmbH & Co. KG. Further, HV Holtzbrinck Ventures Fund IV LP and Holtzbrinck Ventures NM
GmbH & Co. KG have the right to request from Juwel the transfer of all shares held in the Issuer after completion of the offering (see
also footnote (1) above). The shares in the Issuer held by Juwel are included in Holtzbrincks ownership.
(4) Other shareholders/Public free float refer to shareholdings with less than three percent in the Issuer before and after the start of trading in
the Issuers shares.
The Issuer is directly controlled by GFG.
Controlling Interest
GFG owns more than 30% of the voting rights in the Issuer. In addition, the existing shareholders have
entered into a voting agreement (the Voting Agreement) that entered into effect on August 15, 2014, pursuant
to which they have agreed to uniformly exercise their voting rights in the Issuers general shareholders meeting
with regard to the composition of the Supervisory Board. Furthermore, under the Voting Agreement each
existing shareholder shall, if any other existing shareholder votes against an action or resolution at general
meetings, by the Management Board or by the Supervisory Board, take reasonable action that such matter is not
passed and instruct its nominated member to not vote in favor of such matter, provided that such matter (i) would
change the rules of procedure of either the Management Board or the Supervisory Board or (ii) would negatively
affect any existing shareholder unilaterally compared to any other shareholder in the Issuer, including any person
(individually or jointly with any other person) controlling, controlled by or under common control with such
party or such other shareholder.
The Voting Agreement automatically terminates upon the earlier of (i) 48 months after the closing of
this offering; (ii) the date on which either Emesco or GFG holds (directly and indirectly) less than 10% of the
shares in the Issuer; (iii) the date on which the aggregate ownership in GFG of Messrs. Oliver, Marc and
Alexander Samwer is 50% or less; or (iv) the date on which the (direct or indirect) ownership of Investment AB
Kinnevik in Emesco is 50% or less.
Following completion of the offering and assuming full placement of the Offer Shares, issuance of all
New Shares and full exercise of the Greenshoe Option (see The OfferingStabilization Measures, Over
Allotments and Greenshoe Option), GFG will continue to hold approximately 39.78%, and all existing
shareholders together will continue to hold at least approximately 76.02%, of the Issuers share capital. As a
result, GFG will alone and, for the duration of the Voting Agreement, together with the other existing
shareholders continue to hold a controlling interest in the Issuer.
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GENERAL INFORMATION ON THE ISSUER AND THE GROUP
The Issuer was formed as a limited liability company (Gesellschaft mit beschrnkter Haftung) under
German law by memorandum of association dated May 30, 2007. Its legal name was Rocket Internet GmbH
with its registered office in Munich, Germany, registered under the docket number HRB 168254 with the
commercial register at the local court (Amtsgericht) of Munich, Germany. The Issuer moved its headquarters to
Berlin by decision of its shareholders dated July 5, 2007, and was registered with the commercial register at the
local court (Amtsgericht) of Charlottenburg, Berlin, Germany (the Commercial Register) under the docket
number HRB 109262 on September 4, 2007.
On June 23, 2014, the general shareholders meeting approved a resolution to change the Issuers legal
form to a stock corporation (Aktiengesellschaft) organized under German law and its legal name to Rocket
Internet AG. The change in legal form and name was registered with the Commercial Register on July 1, 2014
under docket number HRB 159634 B. All these changes were effected in accordance with the applicable
provisions of the German Reorganization and Transformation Act (Umwandlungsgesetz). The Issuer is the
Groups parent company; the Group primarily operates under the commercial name Rocket Internet. The
Issuers fiscal year is the calendar year. We currently expect that the extraordinary shareholders meeting to be
held on September 30, 2014 will approve a resolution to change the Issuers legal form to a European company
(Societas Europaea SE) governed by German and European law and its legal name to Rocket Internet SE.
The change in legal form and name is expected to be registered in late 2014.
The Issuers registered office is at Johannisstrae 20, 10117 Berlin, Germany (tel.: +49 (0) 30 300 13 18-00).
History and Development
The Issuer
For information on the history of the Issuer, see BusinessOrigins.
Duration of the Issuer and Corporate Purpose
The Issuer was established for an unlimited period of time.
Pursuant to Section 2 of the Articles of Association, the Issuers corporate purpose is the direct or
indirect management of its own assets, in particular the formation of a new companies or the acquisition of
existing companies, the development and implementation of new business concepts, the acquisition, management
and disposal of interests in other companies and entities in Germany or abroad, as well as the provision of
services and consulting services, particularly with a focus on different sectors such as the Internet, online
services, e-commerce, telecommunications, media, new media, technologies, software, IT services, marketing,
sales, recruiting, financing, programming, project management, as well as start-up companies and growth
companies.
The Issuer is authorized to undertake all business activities connected directly or indirectly with or
serving the purpose of the Issuer. The Issuer may acquire interests in other companies or enterprises with the
same or similar corporate purpose, represent these companies or enterprises, or invest in such companies or
enterprises. The Issuer may establish branch offices.
Group Structure
The Issuer is the parent company of the Group. The Issuers business is primarily conducted by the
relevant companies. As of June 30, 2014,
1) the Issuers network of companies included 71 companies. These can be spilt down as follows:
11 proven winners,
9 emerging stars,
5 concepts,
29 companies held by the 4 regional Internet groups (excluding 1 proven winner, Jumia, to
avoid double counting),
8 companies in the category strategic participations and
9 companies in the category other investments.
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After June 30, 2014, 53 additional Internet companies that belonged to the Global Founders Capital
Fund portfolio and were contributed to the Issuer; 17 of these were included in the category
strategic participations and 36 were included in the category other investments.
2) the Group consisted of 150 fully consolidated companies. The Groups consolidated financial
statements include regional internet groups and all other material companies whose financial and
business policy can be controlled by the Issuer, either directly or indirectly, as well as the equity
interests of the Group in the intermediate holding companies, regional internet groups and other
companies whose financial and business policy can be influenced by the Group to a significant
extent.
3) the Issuer (Rocket Internet AG) held direct stakes in 135 legal entities.
As of the date of this prospectus, the Issuer (Rocket Internet AG) held direct stakes in 138 legal
entities.
The number of fully consolidated companies presented in 2) is higher than the number of direct
participations presented in 3), as the number in 3) includes only directly held legal entities, while the number in
2) does not include all directly held participations, but includes also fully consolidated legal entities that are
indirectly held.
The numbers shown in 2) and 3) relate to legal entities, while the numbers shown in 1) relate to
businesses, which typically consist of more than one legal entity. Accordingly, the numbers shown in 2) and 3)
are substantially higher than the numbers shown in 1).
The businesses shown in 1) are not necessarily included in the numbers in 2) and 3), as these businesses
are neither necessarily fully consolidated nor necessarily directly held by the Issuer.
The following diagram sets forth a summary (in simplified form) of the Issuers significant
participations as of the date of this prospectus taking into account the relevant direct and indirect beneficial
interests (durchgerechneter Beteiligungsanteil). The shareholdings presented also include shareholdings of
affiliated companies pursuant to Sections 15 et seq. German Stock Corporation Act (Aktiengesetz).
Proven Winners
49.5%
(1)
37.1% 33.7%
(4)
34.4%
(3)
35.2%
(2)
26.7%
(6)
21.4%
(10)
22.7%
(9)
23.5%
(8)
25.0%
(7)
26.8%
(5)
(11) (11)
(11)
(11)
Emerging Stars
74.2%
(12)
59.8% 55.5%
(12)
52.3% 44.9% 49.6%
(13)
25.6%
(15)
44.7% 31.4%
(14)
(11)
Regional Internet
Groups
65.0% 50.0% 50.0% 33.3%
Concepts
57.6%
Other concepts
Strategic
Varying shareholding stakes Varying shareholding stakes Varying shareholding stakes
Participations
Other
Investments
Direct Stake
Indirect Stake
Varying shareholding stakes Varying shareholding stakes Varying shareholding stakes
Other concepts
0.5% 34.7%
0.3% 34.2%
7.8% 25.8% 0.5%
(11)
26.3%
17.2% 9.6%
(Source: Issuer information)
(1) As of the date of this prospectus, an affiliate of Holtzbrinck holds shares in Home24. It has been agreed between Holtzbrinck and the
Issuer that its shares in Home24 will be transferred to the Issuer. The execution will, however, only be effected once the requisite
shareholder approvals at Home24 will have been obtained.
(2) Linio is held through BigCommerce and directly (0.5%). The Issuer holds a direct stake of 51.6% in BigCommerce. BigCommerce in
turn holds a stake of 67.3% in Linio.
(3) Namshi (Middle East eCommerce Holding) is held through Bigfoot I, BigCommerce, Rocket Middle East GmbH and directly (0.3%).
The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 40.8% in Namshi. The Issuer holds a direct stake
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of 51.6% in BigCommerce. BigCommerce in turn holds a stake of 36.4% in Namshi. Through the Holtzbrinck transfer of shares in
BigCommerce, which will be executed once a restructuring of BigCommerce/Namshi has been effected, the Issuer will hold an
additional indirect stake of 1.8% in Namshi. The Issuer holds a direct stake of 100% in Rocket Middle East GmbH. Rocket Middle East
GmbH in turn holds a stake of 1.7% in Namshi.
(4) Westwing is held through Westwing SPV and directly (7.8%). The Issuer holds a direct stake of 92.0% in Westwing SPV. Westwing
SPV in turn holds a stake of 28.1% in Westwing.
(5) Jumia is held through Bigfoot II and Africa Internet Group. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn
holds a stake of 28.5% in Jumia. The Issuer holds a direct stake of 33.3% in Africa Internet Group. Africa Internet Group in turn holds a
stake of 51.5% in Jumia.
(6) Lazada is held through BigCommerce and directly (0.5%). The Issuer holds a direct stake of 51.6% in BigCommerce. BigCommerce in
turn holds a stake of 50.9% in Lazada.
(7) Zalora is held through Bigfoot II. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn holds a stake of 74.0% in
Zalora. On August 27, 2014, Bigfoot II provided additional cash to Zalora in return for additional shares in Zalora, resulting in an
increase of the stake of the Issuer to 25.5%.
(8) Lamoda is held through Bigfoot I. The Issuer holds a direct stake of 29.2%.in Bigfoot I Bigfoot I in turn holds a stake of 80.3% in
Lamoda.
(9) Dafiti is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 77.7% in Dafiti.
(10) Jabong is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 73.2% in
Jabong.
(11) The Issuer currently holds 2,069 shares in Bigfoot II (2.1% of Bigfoot IIs share capital) that are subject to call options granted to
business angels that have not yet been exercised.
(12) Zencap and Lendico through Global Fintech Holding S. r.l. The Issuer holds a direct stake of 100% in Global Fintech Holding S. r.l.
Global Fintech Holding S. r.l. in turn holds stakes of 74.2% in Zencap and 55.5% in Lendico.
(13) Ownership of 49.6%, but up to 1,692 shares currently held by the Issuer are subject to call options granted to certain founders by the
Issuer that have not yet been exercised.
(14) Zanui is held through Bigfoot II. The Issuer holds a direct stake of 33.8% in Bigfoot II. Bigfoot II in turn holds a stake of 93.0% in
Zanui.
(15) FabFurnish is held through Bigfoot I. The Issuer holds a direct stake of 29.2% in Bigfoot I. Bigfoot I in turn holds a stake of 87.7% in
FabFurnish.
Subsidiaries
As of December 31, 2013, the Issuer had 114 subsidiaries that were fully consolidated in its financial
statements. These included no legal entity that was part of a proven winner, four legal entities that were part of
the emerging star Lendico and 62 legal entities that were part of the four regional internet groups. 195
subsidiaries were not fully consolidated due to their minor importance. Further, the Issuer held stakes in about
130 dormant companies. The book value of none these legal entities is significant on an individual basis and none
of these entities contributed more than 10% to the Groups consolidated net income for the year ended
December 31, 2013. For more information, see also F-28 et seq.
Corporate Governance of the Network
We steer the corporate governance of the companies in our network based on three models: investor
approval model, board like model and joint-venture like model. Under all models, the managing directors of the
relevant company manage the company subject to a catalogue of approval measures. For more information, see
Corporate Structure and Financing Rounds and Cash ManagementInvestment Agreements and Shareholders
Agreements. The models differ with respect to the supervisory competences. Under the investor approval model,
a defined catalogue of management measures is subject to prior approval of a certain majority of investors of the
company. Under this model, any existing supervisory board has the primary function of advising the companys
management. Under the board like model, a defined catalogue of management measures is subject to the
approval of the companys supervisory board by way of majority vote. The members of the supervisory board are
nominated by certain of the shareholders of the company. Under the joint venture like model, the supervision is
subject to joint decisions by the shareholders or the advisory board members, as the case may be. An escalation
mechanism is intended to resolve deadlock situations.
Statutory Auditors
Ernst & Young GmbH Wirtschaftsprfungsgesellschaft, Stuttgart, Berlin office, Friedrichstrae 140,
10117 Berlin, Germany, was appointed as the statutory auditor of the Issuers consolidated financial statements
for the fiscal year 2013. E&Y audited the Issuers consolidated financial statements prepared in accordance with
German GAAP as of and for the year ended December 31, 2013 and issued an unqualified auditors report
(uneingeschrnkter Besttigungsvermerk). The change in auditor was driven by the fact that many of the Issuers
now fully consolidated subsidiaries had already engaged other audit firms of the Ernst & Young network. The
Issuer believed that appointing Ernst & Young GmbH Wirtschaftsprfungsgesellschaft as its auditor for the first
time preparation of the consolidated financial statements would accelerate and simplify the auditing process as
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Ernst & Young GmbH Wirtschaftsprfungsgesellschaft was already familiar with the complexity of the group
structure and had already access to and experience with the accounting records of many of the fully consolidated
subsidiaries.
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprfungsgesellschaft, Frankfurt am Main, Berlin
office, Lise-Meitner-Strae 1, 10589 Berlin, Germany, has audited the Issuers unconsolidated annual financial
statements prepared in accordance with German GAAP as of and for the year ended December 31, 2013,
December 31, 2012 and December 31, 2011 and the Issuers additional unconsolidated information, consisting in
each case of a statement of changes in equity and a cash flow statement, prepared in accordance with German
GAAP as of and for the year ended December 31, 2012 and December 31, 2011. In each case, PwC issued an
unqualified auditors report (uneingeschrnkter Besttigungsvermerk).
E&Y and PwC are both members of the German Chamber of Public Accountants (deutsche
Wirtschaftsprferkammer).
The unaudited condensed interim consolidated financial statements of the Group as of and for the six
months ended June 30, 2014 have not been audited or reviewed.
Notifications, Paying Agent
In accordance with Section 3 para. 1 of the Articles of Association, the Issuers notifications are
published in the German Federal Gazette (Bundesanzeiger).
In accordance with the German Securities Prospectus Act, notifications in connection with the approval
of this prospectus or any supplements thereto will be published in the manner of publication provided for in this
prospectus, that is, through publication on the Issuers website, www.rocket-internet.de, and the provision of
printed copies at the Issuers office at Johannisstrae 20, 10117 Berlin, Germany (tel. +49 (0) 30 300 13 18-00).
The paying agent is Deutsche Bank Aktiengesellschaft. The mailing address of the paying agent is
Taunusanlage 12, 60325 Frankfurt am Main.
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DESCRIPTION OF SHARE CAPITAL OF ROCKET INTERNET AG
AND APPLICABLE REGULATIONS
Current Share Capital; Shares
The Issuers share capital currently amounts to 120,102,255.00. It is divided into 120,102,255 bearer
shares with no par value (Stckaktien), each such share with a notional value of 1.00. The share capital has been
fully paid in. The shares were created pursuant to German law.
Development of the Share Capital since the Issuers Foundation
The Issuers share capital has developed as follows:
As of June 4, 2007, the Issuer, which was first registered with the Commercial Register at the local court
(Amtsgericht) of Munich, Germany, at that time in the legal form of a limited liability company (Gesellschaft mit
beschrnkter Haftung), had a share capital of 25,000.00. By resolution of the shareholders meeting of the
Issuer held on February 3, 2010, the Issuers share capital was increased by 3,301.00, from 25,000.00 to
28,301.00. The capital increase was registered with the Commercial Register on February 11, 2010. On
March 27, 2012, the directors of the Issuer resolved to increase the Issuers share capital from authorized capital,
which had been created by a resolution of the shareholders meeting on February 3, 2010 (Authorized Capital
2010/I), by 5,032.00, from 28,301.00 to 33,333.00. On the same day the shareholders meeting further
resolved to increase the Issuers share capital by 66,667.00, from 33,333.00 to 100,000.00. The capital
increases were registered with the Commercial Register on April 13, 2012. By resolutions of the shareholders
meeting of the Issuer held on April 11, 2012, April 12, 2012 and April 16, 2012, the Issuers share capital was
increased against contributions by an aggregate of 3,386.00, from 100,000.00 to 103,386.00. The capital
increase was registered with the Commercial Register on November 6, 2012. By resolution of the shareholders
meeting of the Issuer held on July 8, 2013, the Issuers share capital was increased by 6,414.00, from
103,386.00 to 109,800.00. The capital increase was registered with the Commercial Register on July 18, 2013.
By resolution of the shareholders meeting of the Issuer held on February 4, 2014, the Issuers share capital was
increased by 546.00, from 109,800.00 to 110,346.00. The capital increase was registered with the
Commercial Register on April 28, 2014.
The extraordinary shareholders meeting of the Issuer held on August 22, 2014 resolved, among other
things, on the following sequence of capital and capital related measures:
First, the extraordinary shareholders meeting resolved to increase the Issuers share capital from its
own resources (Kapitalerhhung aus Gesellschaftsmitteln) from 110,346.00, by 33,152.00 to
143,498.00.
Second, it resolved to re-divide the Issuers share capital by replacing each no par value share with a
notional value of 2.00 by two new no par value bearer shares with a notional value of 1.00,
resulting in 143,498 no par value bearer shares with a notional value of 1.00.
Third, the extraordinary shareholders meeting resolved to increase the Issuers share capital by
15,944.00, from 143,498.00 to 159,442.00 while admitting PLDT Online Investments
PTE. LTD. to subscribe for all newly issued shares.
Fourth, the extraordinary shareholders meeting resolved to increase the Issuers share capital by
25,527.00, from 159,442.00 to 184,969.00 while admitting (i) United Internet to subscribe for
16,193 newly issued shares, (ii) GFG and Global Founders Capital Fund to subscribe for an
aggregate of 8,132 newly issued shares, (iii) European Founders Fund GmbH & Co. Beteiligungs
KG Nr. 2 and European Founders Fund GmbH & Co. Beteiligungs KG Nr. 3, both Munich,
Germany, to subscribe for 637 and 365 newly issued shares, respectively, and (iv) MOAS GmbH &
Co. KG, MOAS Nr. 2 GmbH & Co. KG and MOAS Nr. 3 GmbH & Co. KG, all Munich, Germany,
to subscribe for an aggregate of 200 newly issued shares.
Fifth, the extraordinary shareholders meeting resolved to increase the Issuers share capital by
4,766.00, from 184,969.00 to 189,735.00 while admitting HV Holtzbrinck Ventures Fund IV
L.P., Holtzbrinck Ventures NM GmbH & Co. KG, Juwel 218. V V UG and HV Holtzbrinck
Ventures Fund V GmbH & Co. KG, all Munich, Germany, to subscribe for these new shares.
Sixth, the extraordinary shareholders meeting resolved to increase the Issuers share capital from
its own resources (Kapitalerhhung aus Gesellschaftsmitteln) by 119,912,520.00 from
189,735.00 to 120,102,255.00.
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The capital increases and the re-division of the share capital were registered with the Commercial Register
on September 1, 2014. The extraordinary shareholders meeting of the Issuer held on August 22, 2014 also resolved
to convert the then existing registered shares into bearer shares and to change the Articles of Association of the
Issuer accordingly. The conversion took effect as of September 1, 2014.
By resolution of the Issuers Management Board, expected to be passed on or about October 6, 2014 and
to be approved by a committee of the Issuers Supervisory Board on the same day, the Issuers share capital is
expected to be increased against contribution in cash by up to 32,941,177 from 120,102,255.00 to up to
153,043,432 out of the Issuers authorized capital, i.e. the Authorized Capital 2014, for the purpose of creating
the New Shares that are the subject of the offering described in this prospectus. It is anticipated that the
implementation of this capital increase will be registered with the Commercial Register on October 8, 2014. If
the Greenshoe Option is exercised, the Issuer will issue up to 4,941,176 additional ordinary bearer shares with
no-par value (Stckaktien) from its Authorized Capital 2014.
Authorization to Issue Convertible Bonds and Other Instruments
The Management Board is authorized, with the approval of the Supervisory Board, to issue until
September 7, 2019, on once or repeatedly, bonds with warrants, convertible bonds, profit participation rights,
and/or participating bonds (or combinations of these instruments) (collectively referred to as Bonds) having a
total par value of up to 960,000,000.00 and to grant the holders or creditors (collectively referred to as
Holders) option or conversion rights to shares of the Issuer up to a maximum of 48,040,902 shares and with a
maximum proportion of the share capital of 48,040,902.00 in accordance with the terms and conditions of the
Bonds. The authorization to issue Bonds sets out certain parameters which include the following:
The Bonds can carry fixed or variable interest whereby the interest may depend partially or completely
on the amount of the Issuers dividend. The Bonds may also be mandatorily convertible at the end of the term or
earlier or provide for the right of the Issuer to grant the Holders of Bonds shares of the Issuer in lieu of
repayment of the Bonds. In the event of an option being exercised or of a conversion, and in the event of
fulfillment of option or conversion obligations, the Issuer may at its discretion either grant new shares from
conditional capital, or existing Issuer shares, or shares of another listed company. The terms and conditions of the
bonds may also provide for the right of the Issuer not to grant shares, but rather to pay the equivalent value in
cash. The option or conversion price for a share amounts to with the exception of the cases in which an option
or conversion obligation is provided for (i) at least 80% of the volume-weighted average closing price of the
share of the Issuer in the Xetra trading system (or a comparable subsequent system) of Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse) on the last ten trading days before the date on which the resolution on the issue of
the Bonds is adopted by the Management Board, or (ii) in the event of subscription rights being granted, at least
80% of the volume-weighted average closing price of the Company share in the Xetra trading system (or a
subsequent system) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) in the period from the start
of the subscription period up to and including the day before notification is given of the definitive terms and
conditions of the Bonds pursuant to Section 186 para. 2 German Stock Corporation Act (Aktiengesetz).
The terms and conditions of the Bonds may also provide for certain anti-dilution mechanisms pursuant
to which the option or conversion rights and obligations may notwithstanding any applicable law be adjusted
to retain value, if during the term of the Bonds the financial value of the existing option or conversion rights and
obligations is diluted and no subscription rights are granted as compensation. The terms and conditions of the
Bonds may also provide for a cash compensation instead. Shareholders have, in principle, subscription rights to
the Bonds. The Bonds may also be acquired by one or several banks, pursuant to Section 186 para. 5 sentence 1
German Stock Corporation Act (Aktiengesetz), subject to the obligation to offer them to shareholders for
subscription. If the Bonds are issued by a company in which the Issuer holds a direct or indirect majority
participation, the Issuer ensures that shareholders of the Issuer are granted subscription rights.
The management board may with the consent of the Supervisory Board exclude subscription rights to
the Bonds in certain cases and under certain conditions, including (i) if the Bonds are issued for cash payment,
provided that the issue price is not significantly lower than the theoretical market price in accordance with
recognized financial methods and that the Bonds carry option or conversion rights and/or option or conversion
obligations to shares with a proportionate amount of the share capital which must not exceed 10% of the Issuers
share capital at the time said authorization comes to effect or in case such amount is lower the authorization
is exercised, (ii) if the Bonds are issued against contributions in kind, provided that the value of the contribution
in kind is proportionate to the market value of the Bonds (as calculated pursuant to the preceding letter (i)),
(iii) for fractional amounts, or (iv) if the Bonds are issued to grant Holders of previous issued Bonds subscription
rights to the extent they would have been entitled to as shareholders after exercising option or conversion rights
or after fulfilling option or conversion obligations.
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To the extent that profit participation rights or participating bonds are issued that do not carry option or
conversion rights and/or option or conversion obligations, the Management Board shall be authorized, with the
approval of the Supervisory Board, to exclude subscription rights of shareholders overall if these profit
participation rights or participating bonds are structured in the same way as bonds, i.e., do not constitute any
membership rights in the Issuer, do not grant any participation in liquidation proceeds and the amount of interest
is not calculated on the basis of the amount of net income, unappropriated net income, or the dividend. In this
case, the interest and the issue price of the profit participation rights or participating bonds shall also correspond
to comparable borrowings under current market conditions on the issue date. The Management Board is
authorized, with the approval of the Supervisory Board, to stipulate further particulars and terms of the Bonds in
accordance with the parameters of the authorization.
Authorized Capital
Pursuant to Section 4 para. 6 of the Articles of Association together with Section 202 of the German
Stock Corporation Act (Aktiengesetz) and after the transformation into an European company (SE) Article 9
para. 1 lit. c(ii) of the SE-Regulation, the Management Board is authorized to increase the registered capital of
the Issuer until August 21, 2019, with the consent of the Supervisory Board once or repeatedly, by up to a total of
60,051,127.00 by the issuance of up to 60,051,127 new Issuers shares with no-par value against contributions
in cash (the Authorized Capital 2014). In principle, the shareholders are to be offered subscription rights. The
new Issuers shares may be taken over by one or more bank with the obligation to offer them to the shareholders
(indirect subscription right). The Management Board, however, is authorized to exclude the subscription right
of the shareholders with the consent of the Supervisory Board for one or more capital increases in the context of
the Authorized Capital 2014, (i) if the utilization of the Authorized Capital 2014 occurs in order to place the new
Issuers shares by a public offer in Germany and in the Grand Duchy of Luxembourg at a German stock
exchange and by way of a private placement in other jurisdictions outside Germany and the Grand Duchy of
Luxembourg at a sale price to be determined by the Management Board which requires the consent of the
Supervisory Board or of a committee formed by the Supervisory Board, in each case associated with the
implementation of the trade of the Issuers shares at a German stock exchange (including the inclusion in the
Open Market or admission to trading in a regulated market); and/or (ii) if the utilization of the Authorized Capital
2014 occurs in order to fulfill a Greenshoe Option agreed on with the issuing banks in the context of an initial
public offering of the Issuer; the issue price thereby is required to correspond with the offer price of the Issuers
shares during the initial public offering. Further, the Management Board is authorized to exclude the subscription
right of the shareholders with the consent of the Supervisory Board for one or more capital increases in the
context of the Authorized Capital 2014 (i) in order to exclude fractional amounts from the subscription right;
(ii) in the event of a capital increase against cash contributions, provided that the issue price of the new Issuers
shares is not significantly below the prevailing stock exchange price of the Issuers listed shares at the time of the
final determination of the issue price. However, this authorization shall be subject to the proviso that the
aggregate value of the Issuers shares sold to the exclusion of shareholders subscription rights, in accordance
with Section 186 para. 3 sentence 4 of the German Stock Corporation Act (Aktiengesetz), shall not exceed 10%
of the registered share capital at the time said authorization comes to effect or in case such amount is lower is
exercised. Any shares of the Issuers that are issued or sold during the term and prior to the exercising of such
authorization in direct or analogous application of Section 186 para. 3 sentence 4 of the German Stock
Corporation Act (Aktiengesetz), shall count towards the above thresholds of ten per cent (10%) of the registered
share capital, and (iii) in the event of capital increases against contributions in kind. The new Issuers shares shall
bear the right to participate in the profits of the Issuer from the first day of the year in which they have been
issued. The Management Board is authorized to determine any further details of the capital increase and its
implementation, subject to the Supervisory Boards approval. The Authorized Capital 2014 will be used to issue
up to 4,941,177 New Shares to be placed in the Offering (see The OfferingSubject Matter of the Offering and
General InformationPurpose of this Prospectus). It is anticipated that this capital measure will be registered
with the Commercial Register on October 8, 2014.
Conditional Capital
As of the date of this prospectus, the Issuer has the following three conditional capitals:
Conditional Capital 2014/I
Pursuant to Section 4 para. 3 of the Articles of Association, the Issuers share capital is conditionally
increased by up to 4,541,712.00 by issuance of up to 4,541,712 new no par value bearer shares (the
Conditional Capital 2014/I). The Conditional Capital 2014/I may only be used to fulfill the subscription
rights which have been granted to the member of the Management Board of the Company, Mr. Oliver Samwer, in
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connection with the Stock Option Program 2014/I in accordance with the resolution of the extraordinary
shareholders meeting on September 8, 2014 (see Description of the Governing Bodies of Rocket Internet AG
Share Participation Plan and Employee Offering). The conditional capital increase will only be implemented to
the extent that such subscription rights have been or will be issued in accordance with the Stock Option Program
2014/I as resolved by the extraordinary shareholders meeting on September 8, 2014, the holder of the
subscription rights exercises his rights and the Issuer does not deliver treasury shares to satisfy the subscription
rights, whereas the Supervisory Board is exclusively competent regarding the granting and settlement of
subscription rights to the member of Management Board. The new no par value bearer shares shall participate in
the profits from the beginning of the financial year in which they are issued.
Conditional Capital 2014/II
Pursuant to Section 4 para. 4 of the Articles of Association, the Issuers share capital is conditionally
increased by up to 6,005,113.00 by issuance of up to 6,005,113 new no par value bearer shares (the
Conditional Capital 2014/II). The Conditional Capital 2014/II may only be used to fulfill the subscription
rights which have been granted to members of the Management Board (except for Mr. Oliver Samwer) and
employees of the Issuer as well as members of the management and employees of companies affiliated with the
Issuer in the meaning of 15 et seq. Stock Corporation Act (Aktiengesetz) in connection with the Stock Option
Program 2014/II in accordance with the resolution of the Issuers extraordinary shareholders meeting on
September 8, 2014 (see Description of the Governing Bodies of Rocket Internet AGShare Participation Plan
and Employee Offering). The conditional capital increase will only be implemented to the extent that
subscription rights have been or will be issued in accordance with the Stock Option Program 2014/II, as resolved
by the extraordinary shareholders meeting on September 8, 2014, the holders of the subscription rights exercise
their rights and the Issuer does not deliver treasury shares to satisfy the subscription rights, whereas the
Supervisory Board is exclusively competent regarding the granting and settlement of subscription rights to the
members of Management Board. The new no par value bearer shares shall participate in the profits from the
beginning of the financial year in which they are issued.
Conditional Capital 2014/III
Pursuant to Section 4 para. 5 of the Articles of Association, the Issuers share capital is conditionally
increased by up to 48,040,902.00 by issuance of up to 48,040,902 new no par value bearer shares (the
Conditional Capital 2014/III). The conditional capital increase may only be used to grant shares when
options or conversion rights are exercised or option or conversion obligations are fulfilled vis--vis the Holders
of Bonds issued on the basis of the authorization resolution of the extraordinary shareholders meeting of
September 8, 2014 (see Authorization to Issue Convertible Bonds and Other Instruments). The new shares
will be issued at the option and conversion price to be stipulated in each instance in accordance with the
aforementioned authorization. The conditional capital increase shall only be implemented to the extent to which
the Holders of Bonds that are issued or guaranteed by the Issuer or companies, in which the Issuer direct or
indirect holds a majority participation (majority of voting rights and share capital), up until September 7, 2019,
on the basis of the authorization resolution of the extraordinary shareholders meeting of September 8, 2014 (see
(Authorization to Issue Convertible Bonds and Other Instruments), make use of their option or conversion
rights or fulfill the option or conversion obligations arising out of such Bonds, and insofar as other forms of
fulfillment are not used. The newly issued shares as a result of the exercising of option or conversion rights or the
fulfillment of option or conversion obligations shall participate in the profits, starting at the beginning of the
financial year in which they are issued. The Management Board is authorized, with the approval of the
Supervisory Board, to determine any other details concerning implementation of the conditional capital increase.
Authorization to Purchase and Sell Treasury Shares
The Issuer currently does not hold any of its own shares, nor does a third party on behalf of the Issuer.
However, by resolution of the extraordinary shareholders meeting on September 8, 2014, the Issuer is authorized
to purchase up to a total of 10% of its share capital existing at the time of the adoption of the resolution on or
before September 7, 2019. The acquired shares, together with other treasury shares which may be in the
possession of the Issuer or are attributable to it pursuant to Sections 71a et seqq. German Stock Corporation Act
(Aktiengesetz), if any, may at no time exceed 10% of the Issuers registered share capital. At the discretion of the
Management Board the shares can be acquired in one or more tranches through a stock exchange, by means of a
public offer or a public solicitation to submit offers or by means of a public offer or a public solicitation to
submit offers for the exchange of liquid shares against shares of the Issuer. The authorization provides for certain
thresholds by defining a minimum and maximum consideration for the acquisition of a treasury share. In
principle, the consideration for a treasury shares may not exceed and may not fall below the market price for one
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share of the Issuer in the Xetra trading at the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) on the
trading day prior to acquisition through the stock exchange or in case of a public offer or a public solicitation
below the volume weighted average market price in the three days prior to the announcement of such public offer
or public solicitation, by more than 10%. In case of an exchange offer, the exchange price or the exchange range
ratio in the form of one or several exchange shares may in principle not exceed the relevant value of a share of
the Issuer by 10% and may not fall below such value by more than 20%, based on the volume-weighted average
closing price of the exchange shares and of the shares of the Issuer in the Xetra trading on the Frankfurt Stock
Exchange (Frankfurter Wertpapierbrse) on the last three trading days prior to the public announcement of the
exchange offer. The treasury shares may be used for any purpose permitted by law. Apart from a disposal
through a stock exchange or an offer granting subscription rights to all shareholders, the Management Board is
authorized, with the consent of the Supervisory Board, to sell the treasury shares against cash consideration under
exclusion of subscription rights, provided that the selling price is not significantly lower than the market price
and that the amount of treasury shares to be sold does not exceed 10% of the registered share capital at the time
the disposal is resolved. Moreover, the treasury shares can be sold under exclusion of subscription rights in the
course of mergers or the acquisition of companies, sold in order to satisfy the rights of creditors of bonds
carrying conversion or option rights or, respectively, conversion obligations issued by the Issuer or its
companies; the shares may also be retired. They also may be offered to current or former employees of the Issuer
or its affiliates; the Supervisory Board may use treasury shares to fulfill rights or obligations to purchase shares
of the Issuer that are granted to the members of the Management Board as variable compensation. The
Management Board is required to inform the Issuers general shareholders meeting about the reasons for and the
purpose of the acquisition of treasury shares, the number of treasury shares acquired and the amount of the
registered share capital attributable to them, the portion of the registered share capital represented by them and
the equivalent value of the shares.
In addition, the Issuer is authorized to acquire, on or before September 7, 2019, treasury shares up to a
total maximum of 5% of the registered share capital existing at the time of the adoption of the resolution by use
of derivatives (put or call options or a combination of both). The acquired shares form part of the 10% threshold
of the authorization for the acquisition and use of treasury shares. The option transactions must be entered into
with a financial institution or through the stock exchange at terms close to market conditions. The shareholders
are not entitled to enter into option transactions with the Issuer. The authorization provides for certain thresholds
with regard to the exercise price (excluding acquisition costs and including certain other costs) which may not
exceed the volume-weighted average market price of the Issuers shares in the Xetra trading on the Frankfurt
Stock Exchange (Frankfurter Wertpapierbrse) during the last three exchange trading days prior to the
conclusion of the respective option transaction by more than 10% and may not fall below such arithmetic means
by more than 20%. Shareholders have a right to tender their shares only to the extent that, by virtue of the
derivative transactions, there is an obligation on the part of the Issuer to purchase the shares. Any further tender
right is excluded.
General Provisions Governing a Liquidation of the Issuer
Apart from liquidation as a result of insolvency proceedings, the Issuer may be liquidated only with a
vote of 75% or more of the share capital represented at the general shareholders meeting at which such vote is
taken. Pursuant to the German Stock Corporation Act (Aktiengesetz), in the event of the Issuers liquidation, any
assets remaining after all of the Issuers liabilities have been settled will be distributed among the shareholders in
proportion to their shareholdings. The German Stock Corporation Act (Aktiengesetz) provides certain protections
for creditors that must be observed in the event of liquidation.
General Provisions Governing a Change in the Share Capital
Under the German Stock Corporation Act (Aktiengesetz), a German stock corporation requires a general
shareholders meeting resolution passed by a majority of at least 75% of the share capital represented at the vote
to increase its share capital. However, pursuant to the Issuers Articles of Association, certain capital measures
that do not have a dilutive effect (Verwsserungseffekt) on the shareholders participations (such as capital
increases with shareholders pre-emptive rights against contributions, capital increases from company funds and
the issuance of convertible bonds, profit participation bonds and other instruments for which the shareholders
have a pre-emptive right) may be adopted by a simple majority. Shareholders can also create authorized capital.
This requires a resolution passed by a majority of at least 75% of the share capital represented at the vote,
authorizing the management board to issue a specific quantity of shares within a period not exceeding five years.
The nominal amount may not exceed half of the share capital existing at the time the authorization is granted.
In addition, shareholders can create contingent capital by a resolution passed with a majority of at least
75% of the share capital represented at the vote for the purposes of (i) issuing shares to holders of convertible
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bonds or other securities granting a right to subscribe for shares; (ii) issuing shares as consideration in a merger
with another company; or (iii) issuing shares offered to managers and employees. The nominal amount of
contingent capital may not exceed 10% of the share capital at the time the resolution is passed in cases where it is
created to issue shares to managers and employees, and may not exceed 50% in all other cases. Resolutions to
reduce share capital require a 75% majority of the share capital represented at the vote.
General Provisions Governing Subscription Rights
In principle, the German Stock Corporation Act (Aktiengesetz) grants to all shareholders the right to
subscribe for new shares to be issued in a capital increase. The same applies to convertible bonds, bonds with
warrants, profit participation rights and participating bonds. Subscription rights are freely transferable and may
be traded on German stock exchanges for a prescribed period before the deadline for subscription expires.
However, shareholders do not have a right to request admission to trading for subscription rights. The general
shareholders meeting may, subject to a majority of at least 75% of the share capital represented at the vote,
resolve to exclude subscription rights. Exclusion of shareholders subscription rights also requires a report from
the management board that justifies and demonstrates that the companys interest in excluding subscription rights
outweighs the interest of the shareholders being granted subscription rights. Excluding shareholders subscription
rights when new shares are issued is specifically permissible where:
the company is increasing share capital against cash contributions;
the amount of the capital increase does not exceed 10% of the share capital at issue; and
the price at which the new shares are being issued is not materially lower than the stock exchange
price.
Exclusion of Minority Shareholders
Under Section 327a et seq. of the German Stock Corporation Act (Aktiengesetz), which governs the so-
called squeeze-out under stock corporation law, upon the request of a shareholder holding 95% of the share
capital (Majority Shareholder), the general shareholders meeting of a stock corporation may resolve to
transfer the shares of minority shareholders to the Majority Shareholder against the payment of adequate
compensation in cash. The amount of the cash payment that must be offered to minority shareholders has to
reflect the circumstances of the company at the time the general shareholders meeting passes the resolution.
The amount of the cash payment is based on the full value of the company, which is generally determined using
the capitalized earnings method. The minority shareholders are entitled to file for a valuation proceeding
(Spruchverfahren), in the course of which the fairness (Angemessenheit) of the cash payment is reviewed.
Under the German Reorganization and Transformation Act (Umwandlungsgesetz), an alternative for
squeezing out minority shareholders has been introduced. A majority shareholder holding at least 90% of a stock
corporations share capital can require the general shareholders meeting to resolve that the minority shareholders
must sell their stock to the majority shareholder against the payment of adequate compensation in cash, provided
that (i) the majority shareholder is a stock corporation, a partnership limited by shares (KGaA), or a European
company (Societas Europaea SE) having its seat in Germany; and (ii) the squeeze-out is performed to facilitate
a merger under the German Reorganization and Transformation Act between the majority shareholder and the
stock corporation. The general shareholders meeting approving the squeeze-out must take place within three
months of the conclusion of the merger agreement. The procedure for the squeeze-out is essentially identical to
the squeeze-out under stock corporation law described above, including the minority shareholders option to
have the appropriateness of the cash compensation reviewed.
Under Section 319 et seq. of the German Stock Corporation Act (Aktiengesetz), the general
shareholders meeting of a stock corporation may vote for integration (Eingliederung) with another stock
corporation that has its registered office in Germany, provided the prospective parent company holds at least
95% of the shares of the company to be integrated. The former shareholders of the integrated company are
entitled to an adequate compensation, which must generally be provided in the form of shares in the parent
company. Where the compensation takes the form of own shares in the parent company, it is considered
appropriate if the shares are issued in the same proportion as shares the parent company would have been issued
per share in the company integrated if a merger had taken place. Fractional amounts may be paid out in cash.
Shareholder Notification Requirements; Directors Dealings; Mandatory Takeover Bids
As a company listed in the non-regulated market, the Issuer is not subject to certain provisions regarding
the German Securities Trading Act (Wertpapierhandelsgesetz), most notably the disclosure requirements for
shareholders voting rights, the issuers obligation to publish ad-hoc notices and the disclosure requirement for
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directors dealings. However, the provisions on insider trading and market manipulation apply, and with the
EU Market Abuse Regulation (Regulation (EU) No 596/2014) entering into force; the Issuer will from July 3,
2016 onwards be subject to the disclosure requirements regarding directors dealings, as well as to the
obligation to publish ad-hoc notices. Further, the Issuer has to comply with the General Terms and Conditions of
Deutsche Brse AG for the regulated Unofficial Market (Freiverkehr) on the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse) according to which the Issuer needs to immediately disclose any significant
information in relation to its operations or its securities. Moreover, in accordance with the provisions of the
German Stock Corporation Act (Aktiengesetz), an enterprise has to inform the Issuer when its share held in the
share capital exceeds or falls below 25% and/or 50%, respectively, in the capital or voting rights. The Issuer has
to publish this information immediately in the publication media of the Issuer.
The German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und bernahmegesetz) does
not apply. Therefore, even if a shareholder gains control of the Issuer by controlling at least 30% of the Issuers
voting rights, the Issuer is neither required to publish this fact not to make a mandatory takeover bid to the other
shareholders.
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DESCRIPTION OF THE GOVERNING BODIES OF ROCKET INTERNET AG
Overview
The Issuers governing bodies are the Management Board (Vorstand), the Supervisory Board
(Aufsichtsrat) and the general shareholders meeting (Hauptversammlung). The Issuer has a two-tier management
and control system, consisting of the Management Board and the Supervisory Board. The powers of these
governing bodies are determined by the German Stock Corporation Act (Aktiengesetz), the Articles of
Association and the internal rules of procedure of both the Supervisory Board and Management Board. Once the
Issuer has been transformed into an European company (SE), the powers will also be governed by SE-
Regulation. Save for certain exceptions SE-Regulation and regulation pursuant to the German Stock Corporation
Act (Aktiengesetz) share very similar fundamental principles and provide therefore for comparable regulation.
The Management Board is responsible for managing the Issuer in accordance with applicable law, the
Articles of Association and its internal rules of procedure, including the schedule of responsibilities. The
Management Board represents the Issuer in dealings with third parties.
Simultaneous management and supervisory board membership in a German stock corporation (or in an
European company (SE)) is not permitted under German law; however, simultaneous membership of a member
of the supervisory board taking a vacant seat on the management board of the same German stock corporation for
a maximum period of one year is permissible. During this period, such individual may not perform any duties for
the supervisory board.
Pursuant to the Articles of Association, the Management Board comprises one or more members and the
Supervisory Board determines the exact number of the members of the Management Board. The Supervisory
Board also appoints the members of the Management Board and is entitled to dismiss each of them under certain
circumstances. As set out in the German Stock Corporation Act (Aktiengesetz), the Supervisory Board advises
on, and oversees, the Management Boards administration of the Issuer, but is not itself authorized to manage the
Issuer. The articles of association of a company and the Supervisory Board may, however, designate the types of
transactions that may only be made with the approval of the Supervisory Board. In addition, the Supervisory
Board may itself make certain types of transactions subject to its consent. Matters subject to the prior consent of
the Supervisory Board or of a committee of the Supervisory Board pursuant to the Articles of Association and
Section 7.1 of the internal rules of procedure of the Issuers Management Board include, in particular:
acquisition, sale and encumbrance of real estate and similar rights or rights in real estate in excess
of 3.75 million
(1)
in the individual case;
approval of the annual plan, in particular the budget plan including annual investment budget for
each following year;
individual investments in fixed assets exceeding an amount of 3.75 million in the individual case
or exceeding the agreed annual investment budget;
funding or third party capital raisings (to the extent the Issuer can influence such matters) of an
entity in which the Issuer directly or indirectly is (or becomes by way of such investment) a
shareholder in excess of 10 million
(2)
per investment;
disposal or encumbrance of any assets including the shares in any entity in which the Issuer directly
or indirectly is (or becomes by way of such investment) a shareholder with a value in excess of 20
million
(3)
;
listing of any entity in which the Issuer directly or indirectly is (or becomes by way of such
investment) a shareholder (to the extent the Issuer can influence such matters);
acquisition of any company, undertaking, enterprise or partial-business with a purchase price or
other consideration in excess of 20 million
(4)
;
execution and amendment of agreements with definitively committed payment obligations that
exceed an amount of 3.75 million in the individual case;
(1) The Articles of Association provide for a higher threshold of 5 million. However, the lower threshold of the rules of procedure applies.
(2) Funding and third capital raisings in the range between 10 million and 50 million need the approval of the Investment Committee of
the Supervisory Board and funding and third capital raisings in excess of 50 million need the approval of the Supervisory Board itself.
(3) The Articles of Association provide for a higher threshold of 50 million. However, the lower threshold of the rules of procedure
applies.
(4) The Articles of Association provide for a higher threshold of 50 million. Acquisitions (and the other measures described) in the range
between 20 million and 50 million need the approval of the Investment Committee of the Supervisory Board. Acquisitions (and the
other measures described) in excess of 50 million need the approval of the Supervisory Board itself.
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assumption of sureties, guarantees or similar liabilities in excess of an amount of 5 million in
aggregate, except for certain representations, warranties or indemnities in connection with a third
party investors investment into the Issuer or in connection with a sale of assets of the Issuer;
granting of loans in excess of 750 thousand in the individual case and 7.5 million in the
aggregate per year, excluding certain loans between the Issuer and the companies;
conclusion and termination of credit and borrowing agreements and other financial agreements in
excess of 3.75 million in the individual case and amendments to the credit framework and
extraordinary repayments, excluding certain loans between the Issuer and the companies;
futures transactions concerning currencies, securities and exchange-traded goods and rights as well
as other transactions with derivative financial instruments, except for customary currency hedges;
granting, introduction and amendment of pension commitments of any kind;
granting and revocation of general proxies (Prokura) and general powers of attorney
(Generalvollmacht);
conclusion, amendment or termination of company collective agreements, works agreements (of
substantial importance) and of general guidelines regarding the company pension scheme;
institution and termination of legal disputes, in particular, arbitration proceedings involving a
judicial amount in controversy of more than 750.000
(5)
in the individual case;
acquisition, disposition or licensing of intellectual property rights to any third party or having each
a value of more than 1 million, as well as the passing on of know-how for the independent
exploitation by the enterprise or third party, as well as the grant or acquisition of licenses, as well as
the amendment of agreements with respect hereto, excluding any of the aforesaid measures or
actions between the Issuer and the companies;
granting of a power of attorney, by which a proxy grants power of attorney to another proxy, in
order to conclude an agreement with him at the expense of the Issuer; and
business dealings of the Issuer and its companies with affiliated legal entities and individuals.
Matters requiring the prior information to the Supervisory Board or to a committee of the Supervisory
Board pursuant to the Articles of Association and Section 7.1 of the internal rules of procedure of the Issuers
Management Board include, in particular:
launch of new projects;
modification of the fields of business of the Issuer and the termination of existing and
commencement of new fields of business;
establishment, relocation and closure of branch establishments and places of business in which the
Issuer made an investment exceeding an amount of 1 million; and
convening of the general meeting and proposals for resolutions.
In addition to the aforementioned transactions and measures, the Supervisory Board may subject other
types of transactions and measures to its prior consent in the rules of procedure of the Management Board or of
the Supervisory Board or by a resolution of its members. The Supervisory Board may also give revocable
consent in advance to a certain group of transactions in general or to individual transactions that meet certain
requirements.
According to Section 7.1 of the internal rules of procedure of the Issuers Management Board, the
Management Board is also required to ensure, to the extent legally permissible, that most of the aforementioned
measures in affiliated companies require its prior approval and may only grant its approval after the approval by
the Supervisory Board or by a Supervisory Board committee which has been appointed for these purposes by the
Supervisory Board has been obtained. The Supervisory Board may issue a general authorization for a specific
type of business in the event that the individual type of business meets certain requirements in advance.
Each member of the Management Board and Supervisory Board owes a duty of loyalty and due care to
the Issuer. Each member of these bodies must consider a broad spectrum of interests, particularly those of the
Issuer and its shareholders, employees and creditors. In addition, the Management Board must also take into
consideration the shareholders rights to equal treatment and equal access to information. If members of the
(5) The Articles of Association provide for a higher threshold of 1 million. However, the lower threshold of the rules of procedure applies.
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Management Board or Supervisory Board breach their duties, they may be individually or jointly and severally
liable with the other members of the Management Board or the Supervisory Board to the Issuer for compensatory
damages, as the case may be.
Under German law, a shareholder generally has no right to proceed directly against members of the
Management Board or Supervisory Board if he believes they have breached their duties to the Issuer. In general,
only the Issuer has the right to enforce claims for damages against the members of the Management Board or
Supervisory Board. With respect to claims against Supervisory Board members, the Issuer is represented by the
Management Board, and with respect to claims against Management Board members, the Issuer is represented by
the Supervisory Board. Under a decision of the German Federal Supreme Court (Bundesgerichtshof), the
Supervisory Board is required to assert damages claims against the Management Board if they are likely to
succeed unless significant interests of the Issuer conflict with the pursuit of such claims and outweigh the reasons
for bringing such claim. If the governing body authorized to represent the Issuer decides not to pursue a claim,
the Issuers claims for damages against members of the Management Board or Supervisory Board must
nevertheless be asserted if the general shareholders meeting adopts a resolution to this effect by a simple
majority. The general shareholders meeting may appoint a special representative (besonderer Vertreter) to assert
the claims. Shareholders, whose shares cumulatively make up 10% of the share capital or a pro rata share of
1 million, may also petition the court to appoint a special representative. In addition, the general shareholders
meeting may appoint special auditors (Sonderprfer) to audit transactions, particularly management transactions,
by simple majority vote. If the general shareholders meeting rejects a motion to appoint a special auditor, the
court must appoint a special auditor upon the petition of shareholders whose shares cumulatively constitute 1%
of the share capital at the time the petition is filed or constitute a pro rata share of 100,000 if facts exist that
justify the suspicion that the transaction was accompanied by dishonesty or gross violations of the law or the
articles of association. If the general shareholders meeting appoints a special auditor, the court must appoint
another special auditor upon the petition of shareholders whose shares cumulatively constitute 1% of the share
capital at the time the petition is filed or constitute a pro rata share of 100,000 if this appears necessary due to
the identity of the special auditor who was appointed.
Shareholders and shareholder associations can solicit other shareholders to file a petition, jointly or by
proxy, for a special audit, for the appointment of a special representative, or to convene a general shareholders
meeting or exercise voting rights in a general shareholders meeting in the shareholders forum of the German
Federal Gazette (Bundesanzeiger), which is also accessible via the website of the German Company Register
(Unternehmensregister). If there are facts that justify the suspicion that the Issuer was harmed by dishonesty or a
gross violation of law or the articles of association, shareholders who collectively hold 1% of the share capital or
a pro rata share of 100,000 may also, under certain further conditions, seek damages from members of the
Issuers governing bodies in their own names through court proceedings seeking leave to file a claim for
damages. Such claims, however, become inadmissible if the Issuer itself files a claim for damages.
The Issuer may only waive or settle claims for damages against members of the Management Board or
Supervisory Board three years after such claims arose if the shareholders grant their consent at the general
shareholders meeting by simple majority vote unless a minority of the shareholders whose shares cumulatively
constitute 10% of the share capital objects to the minutes.
Under German law, individual shareholders and all other persons are prohibited from using their
influence on the Issuer to cause a member of the Management Board or the Supervisory Board to take an action
detrimental to the Issuer. A shareholder with a controlling influence may not use that influence to cause the
Issuer to act contrary to its own interests unless there is a domination agreement (Beherrschungsvertrag) between
the shareholder and the Issuer and the influence remains within the bounds of certain mandatory provisions of
law or compensation is paid for the disadvantages that arise. Any person who uses his influence on the Issuer to
cause a member of the Management Board or the Supervisory Board, an authorized signatory (Prokurist), or an
authorized agent (Handlungsbevollmchtigter) to act to the detriment of the Issuer or its shareholders may be
liable to compensate the Issuer and the affected shareholders, respectively, for the resulting losses. Moreover, in
this context, the members of the Management Board and Supervisory Board are jointly and severally liable if
their actions or omissions amount to a violation of their duty of due care.
Management Board
Current Composition of the Management Board
Under the Articles of Association, the Management Board must consist of one or more persons and the
Supervisory Board determines the exact number of the members of the Management Board. The Supervisory
Board appoints members of the Management Board for a period of no more than five years. The Supervisory
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Board may appoint a Management Board member as chairman of the Management Board and another member as
deputy chairman. Currently, the Issuers Management Board consists of three members, with Oliver Samwer
appointed as Chief Executive Officer.
Reappointment or extension, each for a maximum period of up to five years, is permissible. The
Supervisory Board may revoke the appointment of a Management Board member prior to the expiration of his or
her term for good cause, such as a gross breach of fiduciary duty, or if the general shareholders meeting passes a
vote of no confidence with respect to such member, unless the no-confidence vote was clearly unreasonable. The
Supervisory Board is also responsible for entering into, amending and terminating employment agreements with
Management Board members and, in general, for representing the Issuer in and out of court against the
Management Board. The Management Board is directly responsible for managing the Issuer.
In the event that the Management Board consists of three members, Management Board meetings are
quorate if all its members have been invited and at least half of the members participate in the meeting either in
person or through, e.g. electronic means. Members who abstain from voting are also considered to be
participating. The Management Board adopts resolutions by a majority of the votes cast in general by the
participating members. Further details, particularly regarding composition, duties, overall responsibility,
allocation of responsibility for particular functions and internal organization are governed by the rules of
procedure for the Management Board which were adopted by the Supervisory Board on September 8, 2014 and
entered into force on the same date.
The Issuer is represented vis--vis third parties and in court proceedings by two members of the
Management Board or a member of the Management Board jointly with an authorized signatory. The
Supervisory Board may determine that all or specific members of the Management Board are authorized to
represent the Issuer individually.
The internal rules of procedure for the Management Board require that the delegation of responsibilities
to individual Management Board members is established on the basis of the business distribution plan
(Geschftsverteilungsplan). The business distribution plan is part of the rules of procedure for the Management
Board and is prepared by the Supervisory Board.
The table below lists the current members of the Issuers Management Board.
Name Age Member since Appointed until Responsibilities
Oliver Samwer . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 2014 2019 Chief Executive Officer
Peter Kimpel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 2014 2019 Chief Financial Officer
Alexander Kudlich
(1)
. . . . . . . . . . . . . . . . . . . . . 34 2014 2019 Group Managing Director
(1) Until the transformation into a stock corporation the listed board member held the position of a Managing Director.
The following description provides summaries of the curricula vitae of the current members of the
Issuers Management Board and indicates their principal activities outside the Group to the extent those activities
are significant with respect to the Group.
Oliver Samwer was born in Cologne, Germany, in 1972. Mr. Samwer holds a degree in business
administration from WHUOtto Beisheim School of Management. Upon graduation, Mr. Samwer and his two
brothers founded Alando.de in 1999, which became the leading consumer-to-consumer online auction site in
Germany. After the sale of Alando.de to eBay Inc., Oliver was Managing Director of eBay, responsible for
Germany, Switzerland and Austria. In 2000, Mr. Samwer and his two brothers founded Jamba! AG, which was
acquired by Verisign Inc. in 2004. In 2007, Mr. Samwer founded the Issuer. Since 2014, Mr. Samwer has served
as the Issuers Chief Executive Officer. He is responsible for strategy development and implementation, business
development, investee company leadership and investor relations.
Alongside his office as the Issuers Chief Executive Officer and chairman of the Management Board,
Oliver Samwer is, or was within the last five years, a member of the administrative, management or supervisory
bodies of and/or a partner in the following companies and partnerships outside our network of companies:
Currently:
Atonis Management GmbH (managing director);
European Founders Fund Investment GmbH (managing director);
European Founders Fund Invest-II (managing director);
European Founders Fund Nr. 2 Geschftsfhrungs GmbH (managing director);
European Founders Fund Nr. 2 Verwaltungs GmbH (managing director);
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European Founders Fund Nr. 3 Beteiligungs GmbH (managing director);
European Founders Fund Nr. 3 Management GmbH (managing director);
European Founders Fund Nr. 3 Verwaltungs GmbH (managing director);
Global Founders Capital Management GmbH (managing director);
Global Founders Capital Verwaltungs GmbH (managing director);
Global Founders GmbH (managing director);
International Digital Services Middle East GmbH (managing director);
International Digital Services Middle East Holding GmbH (managing director);
Juwel 201. V V UG (managing director);
Kastanien GmbH & Co. KG (managing director);
Kastanien Management GmbH (managing director);
MOAS GmbH & Co. KG (managing director);
MOAS Nr. 2 GmbH & Co. KG (managing director);
MOAS Nr. 3 GmbH & Co. KG (managing director);
MOAS Verwaltungs GmbH (managing director);
Odysseus GmbH (managing director); and
Odysseus GmbH & Co. KG Beteiligungs KG (managing director).
In addition, Oliver Samwer is a member of the administrative, management or supervisory bodies of
and/or a partner of various companies of our network.
Previously:
MyHammer AG (member of the supervisory board); and
MyHammer Holding AG (member of the supervisory board).
Other than listed above, Oliver Samwer has not been a member of any administrative, management or
supervisory body of any other company or partnership outside our network of companies within the last five
years.
Peter Kimpel was born in Freiburg, Germany, in 1968. Mr. Kimpel earned an international
baccalaureate degree from Armand Hammer United World College of the American West from 1985 to 1987.
Thereafter, he studied at WHU Otto Beisheim School of Management in Koblenz, Germany, where he received
a degree in Business Administration (Diplom Kaufmann) in 1992. Upon graduation, Mr. Kimpel began his career
with Goldman Sachs as an analyst at Goldman Sachs International London. Between 1992 and 2000, Mr. Kimpel
held various other positions at Goldman Sachs, including associate at Goldman Sachs & Co. New York/San
Francisco and associate and later vice president at Goldman Sachs & Co. oHG, Frankfurt. After he had become
managing director of Internet Capital Group in London and Munich in 2000, Mr. Kimpel held the position of
vice president at Goldman Sachs Ventures until 2002. From 2002 to 2004, Mr. Kimpel worked as vice president
of Goldman Sachs International London and Goldman Sachs & Co. oHG, Frankfurt, the latter of which he served
as managing director from 2004 to 2006. Subsequently, from 2006 to 2010, Mr. Kimpel worked as managing
director of Goldman Sachs International London, where he was promoted to partner in 2010. In 2014,
Mr. Kimpel left Goldman Sachs and became the Issuers Chief Financial Officer. He is responsible for finance,
investor relations, legal, risk & compliance and internal audit.
Alongside his office as the Issuers Chief Financial Officer and member of the Management Board,
Peter Kimpel is not, and has not been within the last five years, a member of the administrative, management or
supervisory bodies of and/or a partner in companies and partnerships outside our network of companies.
Alexander Kudlich was born in Bonn, Germany in 1980. Mr. Kudlich studied business administration
with a specialization in finance and accounting at the University of St. Gallen in Switzerland from 1999 to 2004
and graduated as Lic.oec.(HSG). In 2005, Mr. Kudlich received a Master of Arts degree in philosophy from the
University College London in the United Kingdom. He also holds a Master of Business Administration from the
European School of Management and Technology. In 2005, upon graduation from the University College
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London, Mr. Kudlich joined Axel Springer AG as the Assistant of the Chairman and CEO (Dr. Mathias
Dpfner). From 2008 to 2011, Mr. Kudlich worked in various managerial positions in a group company of Axel
Springer AG the zanox.de AG, including as regional managing director for Asia Pacific and Central and
Eastern Europe. In 2011, Mr. Kudlich joined the Issuer. As Group Managing Director, Mr. Kudlich is responsible
for operations, product development, logistics, customer services, technology and human resources.
Alongside his office as the Issuers Group Managing Director and member of the Management Board,
Alexander Kudlich is a member of the administrative, management or supervisory bodies of and/or a partner in
the following companies and partnerships outside our network of companies:
Currently:
Jay Art GmbH (advisory board member);
TEIXL Investments GmbH (managing director); and
Tools (Messe Berlin) (advisory board member).
In addition, Alexander Kudlich is a member of the administrative, management or supervisory bodies of
and/or a partner of various companies of our network.
Other than listed above, Alexander Kudlich has not been a member of any administrative, management
or supervisory body of any other company or partnership outside our network of companies within the last five
years.
The members of the Management Board may be reached at the Issuers office at Johannisstrae 20,
10117 Berlin, Germany (tel. +49 (0) 30 300 13 18-00).
Management Service Agreements
Under the service agreements with the Issuer, Oliver Samwer, Peter Kimpel and Alexander Kudlich are
employed for a term of five years, unless an extension is agreed upon prior to expiration. If a Management Board
member becomes permanently incapacitated, his service agreement with the Issuer will end at the end of the
calendar quarter in which such permanent incapacity is determined. Either the Issuer or any Management Board
member may terminate the relevant service agreement for cause in accordance with Section 626 of the German
Civil Code (Brgerliches Gesetzbuch).
Oliver Samwer is subject to a non-competition obligation for the term of his service agreement and for a
period after termination of (i) 12 months if terminated by Oliver Samwer for good cause, or (ii) six months
otherwise. Under the terms of the service agreement, the following interests, shares, and participations have been
exempted from Oliver Samwers non-competition obligation: (i) less than 10% of the nominal share capital of
publicly listed competing enterprises, if held for investment purposes; (ii) less than 50% of the nominal share
capital of competing enterprises, if held via any of three enumerated investment funds; and (iii) those already
directly or indirectly held by Oliver Samwer as of the date of the service agreement. The Supervisory Board, by
approval of 80% of its members, may exempt additional activities of Oliver Samwer from the non-competition
obligation. Further, Oliver Samwer is subject to a non-solicitation obligation during the term of his service
agreement and for a two-year period following the end of his service agreement.
Each other member of the Management Board is subject to a non-compete obligation during the term of
his service agreement, as well as to a non-solicitation obligation during and for a two-year period following the
end of his service agreement.
Remuneration and Other Benefits of the Management Board Members
According to the resolution of an extraordinary shareholders meeting of the Issuer on August 22, 2014,
we do not disclose the individual compensation for each member of the Management Board in accordance with
Sections 285 no. 9, 315a para. 1 and 314 para. 1 of the German Commercial Code (Handelsgesetzbuch) and
after transformation into a European company (SE) in connection with Art. 61 of the SE-Regulation (as
amended from time to time). The aggregate fixed annual salary payable to the members of the Management
Board under the aforementioned service agreements is approximately 1.8 million. Further, the Management
Board members participate in the Issuers long-term incentive stock option plan (see Share Participation
Plan and Employee Offering). The total amount of remuneration is deemed full consideration for all services
rendered, including for the performance of responsibilities at subsidiaries. Given that the members of the
Management Board have only been appointed in 2014, they have not received any compensation from the Issuer
prior to their appointment with the exception of Alexander Kudlich who received compensation from then
Rocket Internet GmbH, the legal predecessor of the Issuer, in fiscal 2013 and in fiscal 2014 prior to Rocket
Internet GmbHs conversion into an AG.
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Additionally, the Issuer bears 50% of the cost of the Management Board members private health
insurance, however, not more than the cost that would occur in the public health insurance system. The Issuer
pays a monthly gross amount of the applicable employers contribution to the statutory pension and
unemployment insurance, taking into account the contribution ceiling (Beitragsbemessungsgrenze).
All Management Board members are reimbursed for out-of-pocket expenses, including travel expenses.
In the event of a temporary incapacity to work as a result of health or other reasons, all Management Board
members service agreements provide that the relevant base salary will continue to be paid for up to six weeks,
however, not beyond the expiry of the service agreement. Finally, in the case of a Management Board members
death, the board members surviving spouse, or registered partner, and eligible surviving children are entitled
jointly to the relevant base salary for the remainder of the month of death and the following three months.
The members of the Management Board are covered by directors and officers (D&O) insurance
policies with coverage in line with best market practice and a deductible in line with the respective provisions of
the German Stock Corporation Act (Aktiengesetz). The D&O insurance policies also cover the risk of criminal
prosecution.
Shareholdings of the Management Board Members
As of the date of this prospectus, Oliver Samwer holds indirectly through GFG shares of the Issuer,
representing 17.4% of the Issuers share capital. It is expected that the Supervisory Board will resolve in its next
meeting to grant 4,541,712 stock options to Oliver Samwer, 454,393 stock options to Peter Kimpel and 454,393
stock options to Alexander Kudlich, which have already been contractually promised to them. Further, Alexander
Kudlich is beneficiary of several management equity participation programs of various companies, such as
Bigfoot II, Home24, CupoNation, foodpanda and PAYMILL.
Supervisory Board
In accordance with the Issuers Articles of Association and Sections 95 and 96 of the German Stock
Corporation Act (Aktiengesetz), the Supervisory Board consists of nine members. All members of the
Supervisory Board are appointed by the Issuers general shareholders meeting. The general shareholders
meeting may appoint substitute members for one or more Supervisory Board members, who, in accordance with
specific determinations by the general shareholders meeting, may become members of the Supervisory Board if
the elected Supervisory Board members leave office before the end of their term. The term of the substitute
member expires as soon as a successor for the departing Supervisory Board member is appointed by a majority of
at least 75% of the votes cast, but no later than the expiration of the departing Supervisory Board members term.
Re-election of members of the Supervisory Board is possible.
Unless the general shareholders meeting has set a longer term, the Supervisory Board members, as well
as the term of each substitute member, if any, are elected for a period terminating at the end of the annual general
shareholders meeting discharging the members of the Supervisory Board for the fourth fiscal year following the
commencement of the members term of office, however, in no case for more than five years. The fiscal year in
which the term of office begins shall be included in this calculation. After transformation into a European
company (SE) members of the Management Board may be elected for a term of office of up to 6 years. The
appointment of a successor for a member leaving his or her office before the end of his or her term of office is
valid for the remainder of the term of office of the departing member, provided that the general shareholders
meeting has not determined a different term of office for the successor.
Supervisory Board members elected by the general shareholders meeting may be removed by a
resolution of the general shareholders meeting if such resolution is approved by at least 75% of the votes cast. In
addition, regular and substitute members of the Supervisory Board may resign, without good cause, by giving
two weeks notice to the Issuer, represented by a member of the Management Board. The right to resign for good
cause without any notice period remains unaffected by the foregoing. Following the general shareholders
meeting, in the course of which the members of the Supervisory Board are elected by the general shareholders
meeting for a new term, the Supervisory Board will elect a chairman and a deputy chairman from among its
members to serve for the duration of those members terms. Should the chairman or deputy chairman leave office
prior to the expiration of his or her term, the Supervisory Board must elect a new chairman or a deputy chairman
from among its members without delay, to complete the remaining term of the departing chairman or deputy
chairman.
Under mandatory statutory provisions and the Articles of Association, the Supervisory Board is
authorized to establish internal rules of procedure and form committees made up of at least three individuals
from its members. The Supervisory Boards internal rules of procedure were approved by the Supervisory Board
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on June 23, 2014 and have taken effect as of the same day. The Supervisory Board is authorized to make
amendments to the Articles of Association that only affect their wording. The Supervisory Board must hold at
least one meeting within each quarter of a year. Meetings of the Supervisory Board are usually called by its
chairman with 14 days advance notice in writing, by e-mail or facsimile. The day on which the notice is sent and
the day of the meeting itself are not included when calculating this period. In urgent cases, the chairman can
shorten the notice period.
The rules of procedure for the Supervisory Board provide that all Supervisory Board members must
have been invited and at least half of the Supervisory Board members must participate in voting on a resolution
to constitute a quorum. Any member that is present but abstains from voting is deemed to have participated in the
vote for purposes of the required quorum. Absent members may participate in the casting of votes pursuant to
Section 108(3) of the German Stock Corporation Act (Aktiengesetz). Resolutions of the Supervisory Board are
passed by a simple majority of the votes cast. For purposes of passing a resolution, abstentions do not count as
votes cast. After transformation of the Issuer into a European company the Articles of Association may provide
that the deputy chairman making such decisive vote is required to be shareholder representative rather than an
employee representative. The Articles of Association provide that, per the chairmans instruction, resolutions
may be passed by submitting votes to the chairman in writing, by telephone or facsimile, or by equivalent means
of communication. The Supervisory Boards internal rules of procedure exclude the right of a member of the
Supervisory Board to object to such instruction by the chairman.
Members of the Issuers Supervisory Board
The table below lists the current members of the Issuers Supervisory Board.
Name Age Member since
Appointed
until
(1)
Principal occupation
outside of the Group
Lorenzo Grabau . . . . . . . . . . . . . . . . . . . . .
Chairman
49 June 23, 2014 2018 Chief Executive Officer of
Investment AB Kinnevik,
Stockholm, Sweden
Prof. Dr. Marcus Englert . . . . . . . . . . . .
Deputy chairman
49 August 22, 2014 2015 Associate Partner of Solon
Management Consulting GmbH,
Munich, Germany
Prof. Dr. h.c. Roland Berger . . . . . . . . 76 August 22, 2014 2015 Management consultant
Ralph Dommermuth . . . . . . . . . . . . . . . . . 50 August 22, 2014 2018 Chief Executive
Officer of United Internet
AG, Montabaur, Germany
Erik Mitteregger . . . . . . . . . . . . . . . . . . . . . 54 June 23, 2014 2018 Non-executive member of the
Board of Investment AB Kinnevik,
Stockholm, Sweden
Napoleon L. Nazareno . . . . . . . . . . . . . . 64 August 22, 2014 2018 Chief Executive Officer of
Philippine Long Distance
Telephone Company, Manila,
Philippines
Dr. Erhard Schipporeit . . . . . . . . . . . . . . 65 August 22, 2014 2015 Management consultant
Daniel Shinar . . . . . . . . . . . . . . . . . . . . . . . . 33 August 22, 2014 2018 Vice President and head of
technology investments at Clal
Industries Ltd., Tel Aviv
Philip Yea . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 August 22, 2014 2015 Non-executive chairman of the
board of directors of bwin.party
digital entertainment plc
(1) Unless otherwise specified at the time of their election, the members of the Supervisory Board are elected by the general shareholders
meeting for a period terminating at the end of the general shareholders meeting that resolves on the discharge (Entlastung) for the
fourth fiscal year following the commencement of their term of office, however, in no case for more than five years. The fiscal year in
which the term of office begins shall be included in this calculation. Reappointments are permissible. After transformation into a
European company (SE) members of the Management Board may be elected for a term of office of up to 6 years.
The following description provides summaries of the curricula vitae of the current members of the
Issuers Supervisory Board, and indicates their principal activities outside the Group to the extent those activities
are significant with respect to the Group.
Lorenzo Grabau was born in Rome, Italy, in 1965. He holds a degree in economics from La Sapienza
University in Rome. He began his career in Investment Banking in 1990 when he joined Merrill Lynch as an
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analyst. After working in the Mergers & Acquisitions department for five years in London and New York,
Mr. Grabau joined the Investment Banking division of Goldman Sachs in 1994. During his 17 years at Goldman
Sachs he held various leadership positions within the consumer/retail and media/online industry practices, and
the financial sponsors group, eventually becoming a partner and managing director at Goldman Sachs
International in London. Since 2011, Mr. Grabau has been serving as non-executive director of Modern Times
Group MTG AB and of SoftKinetic BV. He has served as non-executive director of Investment AB Kinnevik
since 2013. In May 2014, he assumed his current role as CEO of Investment AB Kinnevik as well as a
directorship at Tele2 AB. Through Kinnevik, he is a board member of various Kinnevik-owned companies,
including telecom companies Millicom and Tele2, media firm Modern Times Group, e-commerce company
Rocket Internet, as well as advisory firm SecureValue E.E.I.G. and online retailer CDON AB. He has served as
non-executive director of Millicom International Cellular S.A. and Zalando SE, and as non-executive director
and co-chairman of CTC Media, Inc. since 2013.
Alongside his office as the chairman of the Issuers Supervisory Board, Mr. Grabau is, or was within the
last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
CDON Group AB (member of the board of directors);
CTC Media, Inc. (co-chairman of the board of directors);
Investment AB Kinnevik (CEO);
Millicom International Cellular S.A. (member of the board of directors);
Modern Times Group MTG AB (member of the board of directors);
SecureValue E.E.I.G. (member of the board of directors);
SoftKinetic International SA/NV (member of the board of directors);
Tele2 AB (member of the board of directors); and
Zalando SE (deputy chairman of the board of directors).
Anticipated future seats:
Avito AB (chairman of the board of directors).
Previously:
Goldman Sachs (partner and managing director); and
Rouge Partners S. r.l. (member of the management board).
Prof. Dr. Marcus Englert was born in Munich, Germany, in 1965. Prof. Dr. Englert received a master
of physics from Ludwig-Maximilians-University, Munich, in 1991, a PhD in nuclear physics from the European
Organization for Nuclear Research (CERN), Geneve, and a Master of Business Administration from INSEAD,
Fontainbleau in 1996. He started his career in 1994 as consultant at Boston Consulting Group, Munich. In 1998
and 1999 he served as managing director of ProSieben Media AG and from 2000 until 2003 he was chief
executive officer of Kirch New Media AG, Munich, before he was appointed member of the management board
of ProSiebenSat. 1 Media AG, Munich, in 2004. Since 2011 he has been working as senior advisor at Solon
Management Consulting GmbH & Co. KG, Munich.
Alongside his office as the deputy chairman of the Issuers Supervisory Board, Prof. Dr. Englert is, or
was within the last five years, a member of the administrative, management or supervisory bodies of and/or a
partner in the following companies and partnerships outside the Group:
Currently:
Atlantic Capital Partners GmbH (managing director).
Demekon Entertainment AG (member of the supervisory board);
iBrothers Capital GmbH (managing director);
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iBrothers Media GmbH (managing director);
Media Broadcast GmbH (chairman of the supervisory board);
Pine Hill Capital Europe GmbH & Co. KG (general partner);
Pine Hill Capital LP (general partner); and
Texas Atlantic Capital LP (general partner).
Previously:
ProSiebenSat.1 Media AG (member of the management board); and
Real Time Technology AG (vice chairman/chairman of the supervisory board).
Prof. Dr. h.c. Roland Berger was born in Berlin, Germany, in 1937. Prof. Dr. h.c. Berger studied
business administration in Hamburg and Munich. In 1967, Prof. Dr. h.c. Berger founded Roland Berger Strategy
Consultants, where he served as CEO until 2003. From 2003 to 2010, Prof. Dr. h.c. Berger was chairman of the
supervisory board of Roland Berger Strategy Consultants. Since 2010, Prof. Dr. h.c. Roland Berger has been
serving as honorary chairman of Roland Berger Strategy Consultants. Since 1996, he has been a lecturer and
visiting professor and, starting in 2000, an honorary professor for business administration and management
consulting at the Brandenburg Technical University in Cottbus, Germany.
Alongside his office as member of the Issuers Supervisory Board, Prof. Dr. Berger is, or was within the
last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
Deutsche Oppenheim Family Office AG (deputy chairman of the supervisory board);
EC Euro-Consult Gesellschaft fr Unternehmensberatung mbH (manager);
Europische Franchise-Beratungs-Gesellschaft mbH (manager);
Fresenius Management SE (member of the supervisory board);
Fresenius SE & Co. KGaA (member of the supervisory board);
Geox S.p.A. (director);
ITA 1 SV LP (director);
ITA 1 SV Ltd. (director);
RCS Mediagroup S.p.A (vice president);
RiverRock European Capital Partners LLP (director);
RiverRock European Capital Management Ltd. (director);
RiverRock European Capital Master Fund Plc. (director);
RiverRock European Opportunities Fund Ltd. (director);
RiverRock Securities Ltd. (director);
RiverRock UK Ltd. (director);
Schuler AG (member of the supervisory board);
Uniplan International GmbH & Co. KG (member of the supervisory board); and
WMP EuroCom AG (member of the supervisory board).
Previously:
3W Power S.A. (member of the board and chairman);
Evisco AG (chairman of the supervisory board);
FIAT S.p.A. (member of the board of directors);
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Impregilo S.p.A. (member of the board of directors);
Italy1 Invest. S.p.A., Luxemburg (Executive Director);
Klinikum Rechts der Isar der TU Mnchen (member of the supervisory board);
Live Holding AG (chairman of the supervisory board);
Loyalty Partner GmbH (member of the supervisory board);
LP Holding Holding GmbH (member of the supervisory board);
Prime Office AG (member of the supervisory board);
Prime Office REIT-AG (chairman of the supervisory board);
Roland Berger Strategy Consultants Holding GmbH (chairman of the supervisory board);
Senator Entertainment AG (member of the supervisory board); and
Telecom Italia S.p.A. (member of the board of directors).
Ralph Dommermuth was born in Dernbach/Westerwald, Germany, in 1963. Mr. Dommermuth began
his career with a training program as a banker, followed by a sales position at a computer retailer in Montabaur,
Germany. In 1988, Mr. Dommermuth founded 1&1 Marketing GmbH, which subsequently became United
Internet AG.
Alongside his office as member of the Issuers Supervisory Board, Mr. Dommermuth is, or was within
the last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
United Internet AG (chief executive officer).
Previously:
AdLINK Internet Media AG (now: Sedo Holding AG) (member of the supervisory board); and
United Internet Media AG (chairmen of the supervisory board).
Erik Mitteregger was born in Ludvika, Sweden, in 1960. Mr. Mitteregger received a Bachelor of
Science in economics and business administration from the Stockholm School of Economics. From 1989 to 1995,
Mr. Mitteregger worked as head of equity research and as a member of the management board at Alfred Berg
Fondkommission. In 1995, Mr. Mitteregger became a founding partner and fund manager at Brummer & Partners
Kapitalfrvaltning. Since 2004, Mr. Mitterregger has served as director of the board of Investment AB Kinnevik.
Alongside his office as member of the Issuers Supervisory Board, Mr. Mitteregger is, or was within the
last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
Erik Mitteregger frvaltnings AB (non-executive director);
Exeger Sweden AB (chairman of the board);
Fasadglas Bckling AB (chairman of the board);
Firefly AB (chairman of the board);
Investment AB Kinnevik (non-executive director);
Resscapital AB (non-executive director);
Ronnie Bergdahl frsljnings AB (non-executive director);
Tele2 AB (non-executive director); and
Wise Group AB (chairman of the board).
200
Previously:
Firefly AB (non-executive director);
Fasadglas Bcklin AB (non-executive director);
Swesafe AB (non-executive director);
NLAB Solar AB (now Exeger Sweden AB) (non-executive director); and
Konstgrsbolaget i Djursholm AB (chairman of board).
Napoleon L. Nazareno, was born in Cebu City, Philippines, in 1949. In 1970, Mr. Nazareno received a
Bachelor of Science in mechanical engineering from the University of San Carlos in Cebu City, Philippines. In
1973, he received a Master in Business Management from the Asian Institute of Management in Makati City,
Philippines. Mr. Nazareno has also completed the INSEAD Executive Program at the European Institute of
Business Administration in Fountainbleu, France. Mr. Nazareno started his career in 1981 at Akerlund &
Rausing, occupying senior management to top level positions and, in 1989, became the president and chief
executive officer of Akerlund & Rausing (Phils.), Inc. In 1995, he moved to Metro Pacific Corporation where he
served as president and chief executive officer until December 1999. In 1998, Mr. Nazareno became a director of
Philippine Long Distance Telephone Company and, in 2000, became the president and chief executive officer of
Smart Communications, Inc. Since 2004, he has served as president and chief executive officer of Philippine
Long Distance Telephone Company.
Alongside his office as member of the Issuers Supervisory Board, Mr. Nazareno is, or was within the
last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
Aces Philippines Cellular Satellite Corporation (president);
Asian Institute of Management (chairman of the board of trustees and board of governors);
Connectivity Unlimited Resources Enterprise Inc. (president and chief executive officer);
Digital Telecommunications Phils. Inc. (chairman);
Digitel Mobile Philippines Inc. (chairman);
Mabuhay Satellite Corporation (director);
ePLDT, Inc. (chairman of the board);
First Pacific Company Limited (non-executive director);
First Pacific Leadership Academy (president and trustee);
i-Contacts Corporation (chairman);
Manila Electric Company (director);
Operation Smile (director);
Philippine Long Distance Telephone Company (president and chief executive officer);
PLDT Communications and Energy Ventures (chairman);
PLDT Global Corporation (director);
Rufino Pacific Tower Condominium Corp (director);
Smart Broadband, Inc. (chairman);
Smart Communications, Inc. (president and chief executive officer);
Wolfpac Mobile, Inc. (chairman and director);
Previously:
Digital Telecommunications, Philippines Inc. (director);
Digitel Mobile Philippines Inc. (director);
201
ePLDT (director);
GSM Association Worldwide (member of the board);
Manila Electric Company (director);
Philweb (director);
PLDT Communications and Energy Ventures (president and chief executive officer); and
Wholesale Applications Community (director).
Dr. Erhard Schipporeit, was born in Bitterfeld, Germany, in 1949. Dr. Erhard Schipporeit received a
degree in business administration from the University of Gttingen in 1973 and a PhD in 1979. In the same year
he started his career at Bosch Group as controller and in 1981 he joined VARTA AG/VARTA Battery AG where
he became chief financial officer in 1990 and chief executive and chairman of the executive board in 1993. After
that he worked for both VIAG AG and from 2000 until 2006 E.ON AG as chief financial officer. From 2007
to 2010 he was senior advisor for BNP Paribas SA.
Alongside his office as member of the Issuers Supervisory Board, Dr. Schipporeit is, or was within the
last five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
BDO AG (member of the supervisory board);
Deutsche Brse AG (member of the supervisory board);
Fidelity Funds SICAV (member of the board of directors);
Fuchs Petrolub SE (member of the supervisory board);
Hannover Rckversicherung SE (member of the supervisory board);
HDI V.a.G (member of the supervisory board);
SAP SE (member of the supervisory board);
Talanx AG (member of the supervisory board); and
TUI Travel plc. (non-executive director).
Previously:
Fidelity Advisor World Funds (Bermuda) Limited (non-executive director).
Daniel Shinar was born in Jerusalem, Israel, in 1981. Mr. Shinar received a law degree (LLB, with
honors) and a Master of Business Administration from the Hebrew University of Jerusalem. Mr. Shinar also
received alumni status from Harvard Business School, where he completed the schools Program for Leadership
Development. Mr. Shinar is the Vice President of Business Development at Clal Industries, one of Israels largest
holding companies. Clal is wholly owned by Access Industries. Mr. Shinar joined Clal in 2007. In his current
role, he leads Access Industries technology investments in Israel (via Clal Industries) and is an active member of
the Access Industries global technology team. In addition, Mr. Shinar heads Clal Industries activities in
strategy, mergers and acquisitions, and new investments. He also serves on board positions at both public and
private companies on behalf of Clal Industries and Access Industries. Those companies include market leaders in
the technology, retail and industrial sectors. From 2005 to 2007, Mr. Shinar held an investment analysis position
at Elron Electronic Industries, a publically traded technology investment company. Prior to that, Mr. Shinar
served as a team-leader in technology oriented governmental organizations where he led teams to solve complex
operational and technological problems.
Alongside his office as member of the Issuers Supervisory Board, Mr. Shinar is, or was within the last
five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
Aternity Inc. (director);
Clal Biotechnology Industries Ltd. (director);
202
Clal Industries Ltd. (vice president of business development);
Clal Motors Ltd. (director);
Clal Venture Capital Fund Management Ltd. (director);
Golf and Co. Ltd. (director);
Infinity funds (member of the investment committee);
Jordan Valley Semiconductors Ltd. (director);
Mashav Initiating and Development ltd. (director);
Nesher Cement Enterprises Ltd. (director);
Spectrum 700 Holding LLC. (director); and
Yotpo Ltd. (board observer).
Previously:
013 Netvision Ltd. (director);
Jafora Ltd. (director);
Jafora-Tabori Ltd. (director); and
Tigo Energy Inc. (director).
Philip Yea, was born in Carshalton, United Kingdom, in 1954. Mr. Yea studied at Brasenose College,
University of Oxford from which he graduated with a Bachelor of Art in modern languages. He started his career
in 1977 at Perkins Engines where he trained as an accountant, before joining the Klix Division of Mars in 1983.
He joined Guinness PLC in 1984, undertaking a number of financial and commercial roles and becoming a
fellow of the Chartered Institute of Management Accountants in 1986. He left to join Quoteplan plc in 1988, and
re-joined Guinness in 1991, becoming group finance director in 1993. From 1997 on he served as finance
director of Diageo plc. After he had joined Investcorps European corporate investment team in 1999 he became
chief executive officer of 3i Group plc in 2004. In 2009 he left 3i and became involved in a number of private
ventures, including chairing Majid Al Futtaim Properties in Dubai and The Rose Partnership in London. In 2014
he became chairman of bwin.party digital entertainment plc.
Alongside his office as member of the Issuers Supervisory Board, Mr. Yea is, or was within the last
five years, a member of the administrative, management or supervisory bodies of and/or a partner in the
following companies and partnerships outside the Group:
Currently:
27 Farm Street Management Company Ltd (director);
Aberdeen Asian Smaller Companies Investment Trust plc (non-executive director);
British Heart Foundation (chairman of trustees);
Bwin.party digital entertainment plc (chairman of the board);
Farm Street Advisors Ltd (chairman of the board);
The Francis Crick Institute (independent trustee director); and
Vodafone Group plc (non-executive director).
Previously:
3i Group plc (chief executive officer);
Farm Street Investment Managers Ltd (director);
Majid Al Futtaim Properties LLC (chairman of the board);
Maycastle Energy Partners LLP (partner);
The Rose Partnership LLP (chairman of the board); and
PricewaterhouseCoopers Services Ltd (member of advisory board).
The members of the Supervisory Board can be reached at the Issuers office at Johannisstrae 20,
10117 Berlin, Germany (tel. +49 (0) 30 300 13 18-00).
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Supervisory Board Committees
Under the Issuers Articles of Association, the Supervisory Board may form committees from among its
members. According to the Supervisory Boards rules of procedure (Sections 10 through 15), the Supervisory
Board shall form an Audit Committee, a Nomination Committee, an Executive Committee, an Investment
Committee and a Remuneration Committee from among its members. Other committees may be formed, if
necessary. The Supervisory Boards decision-making authority may be delegated to these committees to the
extent permitted by law. The following committees have been established by the Supervisory Board:
The Audit Committee (Prfungsausschuss) consists of three members and is concerned, in particular,
with the oversight of the Issuers accounting process and the effectiveness of its internal control system, internal
auditing system, as well as the audit of the annual financial statements including required independence of the
auditor and additional services provided by the auditor, the conclusion of audit agreements with the auditor,
setting focus points for the audit and agreeing audit fees and - unless another committee is entrusted therewith -
compliance. It shall prepare the Supervisory Boards resolutions on the annual financial statements (including
group statements) and the Supervisory Boards proposal to the general shareholders meeting upon the election
of the auditor, and the instruction of the auditor. The chairman of the Audit Committee shall have specialist
knowledge and experience in the application of accounting standards and internal control processes. Furthermore,
the chairman of the Audit Committee shall be independent and may not be a former member of the Issuers
Management Board whose appointment ended less than two years prior to his appointment as chairman of the
Audit Committee.
The current members of the Audit Committee are:
Name Responsibilities
Erik Mitteregger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Napoleon L. Nazareno . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Dr. Erhard Schipporeit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Section 107(4) of the German Stock Corporation Act (Aktiengesetz) requires the Issuer to have at least
one independent member of the audit committee with expertise in the fields of accounting or auditing in the
meaning of Section 100(5) of the German Stock Corporation Act (Aktiengesetz). Members of the Supervisory
Board and the audit committee are considered to be independent if such members have no business or personal
relations with the Issuer, its Management Board, controlling shareholders or related parties which could cause a
substantial and not merely temporary conflict of interest. As concerns the Supervisory Board and audit
committee of the Issuer, Erik Mitteregger is considered to possess the respective expertise and independence.
The Nomination Committee (Nominierungsausschuss) shall make recommendations to the Supervisory
Board for Supervisory Board proposals to the shareholders meeting with respect to the election of Supervisory
Board members. When proposing candidates to the Supervisory Board, the Nomination Committee shall promote
a reasonable representation of the largest shareholders on the Supervisory Board taking into account the statutory
requirements and the recommendations of the German Corporate Governance Code.
The current members of the Nomination Committee are:
Name Responsibilities
Prof. Dr. Marcus Englert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Ralph Dommermuth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Lorenzo Grabau. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Napoleon L. Nazareno . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Daniel Shinar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
The Executive Committee (Prsidialausschuss) makes proposals to the Supervisory Board with respect
to the filling of Management Board positions including long-term succession planning for the Management
Board while taking the recommendations of the Nomination Committee into account. The Executive Committee
shall further prepare meetings of the Supervisory Board, handle current business between meetings of the
Supervisory Board and prepare decisions of the Supervisory Board in the field of corporate governance. It shall
conclude, amend and terminate employment and pension contracts in consideration of the plenary Supervisory
Boards authority to decide on the remuneration of the members of the Management Board.
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The current members of the Executive Committee are:
Name Responsibilities
Lorenzo Grabau. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Ralph Dommermuth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Prof. Dr. Marcus Englert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Napoleon L. Nazareno . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Daniel Shinar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
The Investment Committee (Investitionsausschuss) makes decisions for the Supervisory Board
concerning the approval of certain investment transactions. Such investment transactions include, irrespective of
their accounting treatment, expenditures for the acquisition of any company, undertaking, enterprise or
partial-business with a purchase price or other consideration in the range between 20 million and 50 million, as
well as funding and third capital raisings in the range between 10 million and 50 million. The Management
Board requires the approval of the Investment Committee of the Supervisory Board to engage in such investment
transactions. For investments in excess of 50 million, the approval of the plenary Supervisory Board is required.
The right of the plenary Supervisory Board to retain the power to make certain decisions itself is not affected by
the value thresholds stipulated in the guidelines.
The current members of the Investment Committee are:
Name Responsibilities
Prof. Dr. Marcus Englert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Ralph Dommermuth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Lorenzo Grabau. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Napoleon L. Nazareno . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Daniel Shinar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
The Remuneration Committee (Vergtungsausschuss) reviews all aspects of remuneration and
employment terms for the Management Board, makes in this regard recommendations to the Supervisory Board
and prepares presentations to the general meeting, on the entering into, any amendments to, or the termination of,
the service agreements for the Management Board Members. The Remuneration Committee also considers the
remuneration and general employment terms for certain groups of top executives and in this regard is authorized
to pass resolutions on behalf of the Supervisory Board in accordance with the rules of procedure of the
Management Board. It presents an evaluation of the Management Boards performance and makes a
recommendation for the employment terms and remuneration for the Management Board to the Supervisory
Board. The Remuneration Committee assists the Supervisory Board to supervise the system through which the
company fulfills the regulations by law, listing regulations and the German Corporate Governance Codex
concerning transparency requirements on remuneration for the Management Board and other senior managers. It
considers remuneration guidelines to serve as framework for all remuneration matters to be decided by the
Supervisory Board. The Remuneration Committee consists of five members. One of these members shall be the
chairman of the Supervisory Board.
The current members of the Remuneration Committee are:
Name Responsibilities
Prof. Dr. Marcus Englert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chairman
Ralph Dommermuth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Lorenzo Grabau. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Napoleon L. Nazareno . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Daniel Shinar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Member
Remuneration of the Members of the Supervisory Board
The remuneration of the Issuers Supervisory Board members is regulated by Section 13 of the Issuers
Articles of Association and is comprised of fixed annual payments. The Supervisory Board members
remuneration takes into account the responsibilities and scope of their activities as well as the economic situation
of the Issuer. The members of the Supervisory Board receive an annual fixed payment of 25,000.00 thousand.
The chairman of the Supervisory Board and the chairman of the Audit Committee receive twice this amount. The
deputy chairman of the Supervisory Board receives one and a half times this amount.
Supervisory Board members are also reimbursed for their out of-pocket expenses and are covered by
D&O insurance as described under BusinessInsurance Coverage.
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Shareholdings of the Supervisory Board Members
As of the date of this prospectus, Ralph Dommermuth holds indirectly through United Internet shares of
the Issuer, representing 10.4% of the Issuers share capital. Currently, no other member of the Supervisory Board
directly or indirectly holds any shares in the Issuer or options on shares in the Issuer.
Share Participation Plan and Employee Offering
Under the Stock Option Program 2014/I the Supervisory Board is authorized to grant up to
4,541,712 stock options to Oliver Samwer until and including September 7, 2019. All stock options under the
Stock Option Program 2014/I will be granted within three weeks after the Issuers shares are included in the
trading on the Open Market of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse). These stock options
will vest in monthly installments over a five-year vesting period and can be, subject to certain conditions,
exercised after a waiting period of four years commencing on the date the respective stock options are granted.
The options can only be exercised if
(i) the Issuer successfully launches an average of at least four companies per year during the four-year
waiting period; and
(ii) the stock price reflects, on at least one single trading day within the waiting period, a valuation of
the Issuer of the sum of 4.0 billion and all amounts invested by (current or future) shareholders
into equity of the Issuer from May 27, 2014 until the relevant trading day.
As of the date of this prospectus, this resulted in a relevant valuation of the Issuer of 5.05 billion. If the
performance targets are not achieved by the end of the waiting period the stock options granted forfeit
completely without any further consideration. In addition, the stock options are only exercisable within three
weeks after publication of such financial interim reports or financial statements, as the case may be, which follow
the end of the waiting period. The strike price of the stock options under the Stock Option Program/I corresponds
to a valuation of the Issuer amounting to the sum of
(i) 4.0 billion and
(ii) all amounts invested by (current or future) shareholders into the equity of the Issuer from May 27,
2014 until the day of exercise of the respective stock option.
As of the date of this prospectus, this resulted in a relevant valuation of the Issuer of 5.05 billion. The
Issuer is authorized to adjust the number of stock options in case of a dilution of the stock options resulting from
capital measures of the Issuer.
Under the Stock Option Program 2014/II the Supervisory Board is authorized to grant up to
1,201,022 stock options to both Alexander Kudlich and Peter Kimpel, up to 1,201,023 stock options to certain
employees of the Issuer, up to 3,002,557 stock options to members of the management of affiliated companies
and up to 600,511 stock options to certain employees of affiliated companies, prior to and after the inclusion of
the Issuers shares in the Open Market of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse).
Each beneficiary, who is not a member of the Management Board, must have a certain personal job
grade level based on an internal classification system or must be considered by the Management Board in its
sole discretion a key expert. Job grade levels generally eligible under the Stock Option Program 2014/II are
Senior Vice President;
Vice President; or
Head (or a corresponding job grade in any subsequent grading system).
The concrete group of beneficiaries and the amount of subscription rights to be granted to each of them
will be determined by the Management Board and with respect to members of the Management Board the
Supervisory Board. The Stock Option Program 2014/II provides for an overall ten-year vesting period with a
certain amount of stock options under the Stock Option Program 2014/II vesting after an initial four-year vesting
term and the remaining stock options in principle vesting in yearly installments. The stock options can be, subject
to their vesting and certain other conditions, exercised after a four-year waiting period commencing on the date
the respective stock options are granted.
The exercise of stock options under the Stock Option Program 2014/II requires that
(i) the shares of the Issuer are included in the Open Market until October 31, 2014 and
(ii) the Issuer successfully launches an average of at least four companies per year during the four-year
waiting period.
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If the performance targets are not achieved by the end of the waiting period the stock options granted
forfeit completely without any further consideration. In addition, the stock options are only exercisable within
three weeks after publication of such financial interim reports or financial statements, as the case may be, which
follow the end of the waiting period. The strike price of the stock options granted prior to the inclusion of the
Issuers shares in the Open Market amounts to 26.14 per stock option; for stock options granted post inclusion
of the Issuers shares in the Open Market the strike price per stock option corresponds to the volume-weighted
average closing price of the shares on the twenty consecutive trading days prior to the relevant grant date. The
Issuer is authorized to adjust the number of stock options in case of a dilution of the stock options resulting from
capital measures of the Issuer.
Under the Stock Option Programs 2014 one stock option grants the holder the right to subscribe for one
share of the Issuer to be delivered out of the Conditional Capital 2014/I or the Conditional Capital 2014/II (see
Description of Share Capital of Rocket Internet AG and Applicable RegulationsConditional Capital) or from
treasury shares.
It is expected that the Supervisory Board will resolve in its next meeting to grant 4,541,712 stock
options to Oliver Samwer, 454,393 stock options to Peter Kimpel and 454,393 stock options to Alexander
Kudlich, which have already been contractually promised to them.
Certain Information Regarding the Members of the Management Board and Supervisory Board
In the last five years, no member of the Management Board or Supervisory Board has been convicted of
fraudulent offences. In the last five years, no member of the Management Board or Supervisory Board has been
associated with any bankruptcy, receivership or liquidation acting in its capacity as a member of any
administrative, management or supervisory body or as a senior manager. In the last five years, no official public
incriminations and/or sanctions have been made by statutory or legal authorities (including designated
professional bodies) against the members of the Management Board or Supervisory Board, nor have sanctions
been imposed by the aforementioned authorities. No court has ever disqualified any of the members of either
board from acting as a member of the administrative, management, or supervisory body of an issuer, or from
acting in the management or conduct of the affairs of any issuer for at least the previous five years.
The Issuers Chief Executive Officer, Oliver Samwer, also holds a 33.33% interest in, and serves as a
director of, GFG, the Issuers largest shareholder. GFG and its affiliates hold certain participations in Internet
companies other than the Issuer. See also Risk FactorsRisks Related to the Issuer and Our CompaniesThe
Issuer was co-founded by Oliver Samwer, the Issuers current CEO, and we continue to depend on his
leadership. Conflicts of interest may arise between Oliver Samwer and us and there is no guarantee that Oliver
Samwer will continue to devote his time and energy to us. GFG and its affiliates are generally free to pursue
opportunities outside Rocket Internet, including opportunities that compete directly or indirectly with us. In
addition, Alexander Kudlich holds a 0.5% beneficial interest in GFG. If the interests of GFG should diverge from
those of the Issuer, conflicts of interest may arise for Oliver Samwer and Alexander Kudlich.
The chairman of the Supervisory Board, Lorenzo Grabau, is also chief executive officer and Erik
Mitteregger is non-executive member of the board of Kinnevik, one of the Issuers major shareholders.
Additionally, Ralph Dommermuth is chief executive officer of United Internet AG, Napoleon L. Nazareno is
chief executive officer of PLDT and Daniel Shinar is an officer of Clal Industries Ltd., a wholly-owned
subsidiary of Access Industries. If the interests of these shareholders should diverge from those of the Issuer,
conflicts of interest may arise for Messrs. Grabau, Mitteregger, Dommermuth, Nazareno and Shinar. Except as
disclosed above, there are no conflicts of interest or potential conflicts of interest between the members of the
Management Board and Supervisory Board vis--vis the Issuer and their private interests, membership in
governing bodies of companies or other obligations.
Neither of the Issuers Management Board or Supervisory Board members have entered into a service
agreement with a Group company that provides for benefits upon termination of employment or office. The
Issuer only provides for severance payments to its executives in the case of an early termination of the service
agreement (including, amongst others, a termination following a change of control), which, under all
circumstances, are capped at the amount of compensation owed under the remaining contractual term of the
respective service agreement. With the exception of Oliver Samwer, the members of the Management Board are
not bound by restrictive covenants and may therefore engage in competing activities following the end of their
office and the termination of their service agreements, it being understood that the members of the Management
Board participate in long-term incentive programs, whose full or partial payout is triggered upon the
commencement of trading and being further understood that the Issuer intends to introduce new incentive
programs or continue old plans (see Long-Term Incentive Programs and Share Participation Plan and
Employee Offering).
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There are no family relationships between the members of the Management and the Supervisory Board,
either among themselves or in relation to the members of the other body.
General Shareholders Meeting
Pursuant to Section 175 of the German Stock Corporation Act (Aktiengesetz) and section 16.2 of the
Articles of Association, the annual general shareholders meeting takes place within the first eight months of
each fiscal year and must be held, as the convening body shall decide, at the Issuers registered office, at the
place of a German stock exchange or in a German city with more than 100,000 residents. After transformation
into a European company (SE) the annual shareholders meeting needs to take place within the first six month of
each fiscal year pursuant to Article 54 para. 1 SE-Regulation. Except where other persons are authorized to do so
by law and by the articles of association, the general shareholders meeting shall be convened by the
Management Board. Notice must be issued in the German Federal Gazette (Bundesanzeiger) at least 30 days
before the day of the general shareholders meeting; the day of the meeting itself and the day of the receipt of the
notice not being included when calculating this period.
A general shareholders meeting may also be convened by the Management Board, the Supervisory
Board, or may be requested by shareholders whose shares collectively make up 5% of the capital stock.
Shareholders or shareholder associations may solicit other shareholders to make such a request, jointly or by
proxy, in the shareholders forum of the German Federal Gazette (Bundesanzeiger), which is also accessible via
the website of the German Company Register (Unternehmensregister). If, following a request made by
shareholders whose shares collectively make up 5% of the capital stock, a general shareholders meeting is not
held in due time the competent local court (Amtsgericht) may authorize the shareholders who have requested it or
their representatives to convene a general meeting.
Pursuant to the Articles of Association, shareholders are entitled to participate in the general
shareholders meeting and to exercise their voting rights only if they have duly submitted notification of
attendance and proof of ownership. The issuer needs to receive both the notification of attendance and the proof
of ownership by the end of the sixth day prior to the date of the general shareholders meeting, unless a shorter
period of time was set forth in the convocation of the general shareholders meeting, in text form, the day of the
meeting itself with the day of the receipt of the notice not being included when calculating this period. The proof
of ownership of shares must refer to the start of the 21st day prior to the general shareholders meeting. The
chairman of the general shareholders meeting is authorized to permit the transmission of the shareholders
meeting, participation in resolutions and the exercise of the shareholders other rights via electronic or other
media where this is legally permitted. Voting rights may be exercised by proxy. The grant of a proxy, revocation
or proof of power of attorney to the Issuer must be in text form, facilitations of which may be granted in the
notice. Such facilitations may be limited to the proof of power of attorney to the proxies nominated by the Issuer.
The Issuer will provide at least one electronic method by which such proof of proxy may be submitted. The
Management Board is authorized to enable shareholders to participate in the general shareholders meeting even
without being present in person or through an authorized representative and to exercise all or specific rights
wholly or in part by electronic means of communication. The Management Board is further authorized to enable
shareholders to cast their votes without participating in person in the general shareholders meeting, in writing or
by electronic means of communication (Briefwahl). If the Management Board makes use of this authority, it must
fix the details and list them in the invitation to the general shareholders meeting.
Each share entitles its holder to one vote at the general shareholders meeting. Unless otherwise
stipulated by mandatory statutory provisions or provisions of the Articles of Association, resolutions of the
general shareholders meeting are adopted by a simple majority of the votes cast or, if a capital majority is
required in addition to a majority of votes, a simple majority of the bearer share capital represented at the
meeting is sufficient, to the extent that this is legally possible.
According to the current version of the German Stock Corporation Act (Aktiengesetz), resolutions of
fundamental importance (grundlegende Bedeutung) require both a majority of votes cast and a majority of at
least 75% of the bearer share capital represented at the vote on the resolution. Resolutions of fundamental
importance include:
amendments, other than editorial amendments, to the articles of association;
approval of contracts within the meaning of Section 179a of the German Stock Corporation Act
(Aktiengesetz) (transfer of the entire assets of the company) and management actions of special
significance that require the approval of the general shareholders meeting in compliance with legal
precedents;
capital increases, including the creation of conditional or authorized capital;
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issuance of, or authorization to issue, convertible and profit-sharing certificates and other
profit-sharing rights;
exclusion of subscription rights as part of an authorization on the use of treasury stock;
capital reductions;
withdrawal of shares pursuant to Section 237(2) of the German Stock Corporation Act
(Aktiengesetz);
liquidation of the company;
continuation of the liquidated company after the resolution on liquidation or expiry of the time
period;
approval to conclude, amend or terminate affiliation agreements (Unternehmensvertrge);
integration of a stock corporation into another stock corporation and squeeze-out of the minority
shareholders; and
action within the meaning of the German Reorganization and Transformation Act
(Umwandlungsgesetz).
After the transformation of the Issuer into a European company SE-Regulation provides for the
following voting thresholds: In principle, changes to the Articles of Association require a majority of two-thirds
of the votes cast, unless these conflicts with mandatory legal provisions. The Issuer may also amend its Articles
of Association in a way that if at least one-half of the share capital is represented, a simple majority of the votes
casts is sufficient. Further, the amended Articles of Association may provide that as far as the law requires a
capital majority in addition to a majority of votes cast for resolutions of the Issuers shareholders general
meeting, a simple majority of the share capital represented at the time the resolution is passed shall be sufficient
to the extent that this is legally permissible.
Neither German law nor the Articles of Association limit the right of foreign shareholders or
shareholders not domiciled in Germany to hold shares or exercise the voting rights associated therewith.
Corporate Governance
The German Corporate Governance Code as amended on May 13, 2013 (the Code) makes proposals
concerning the management and supervision of German-listed companies. It is based on internationally and
nationally recognized standards of good, responsible governance. The Code contains recommendations (shall
provisions) and suggestions (should provisions) for corporate governance in relation to shareholders and the
general shareholders meeting, the management board and the supervisory board, transparency and accounting
and auditing of financial statements. Compliance with the Codes recommendations or suggestions is not
obligatory. German stock corporation law only requires the management board and the supervisory board of a
listed company to provide an annual statement regarding whether or not the recommendations in the Code were
complied with, or explain which recommendations have not been complied with and are not being applied and
the reasons underlying this non-compliance. It is possible to deviate from the suggestions contained in the Code
without disclosure. The declaration of compliance must be publicly available on the Issuers website at all times.
The current version of the Code was adopted on May 13, 2013 and published in the German Federal Gazette
(Bundesanzeiger) on June 10, 2013.
The Issuer is not obligated to issue a declaration relating to the Code, neither prior nor after inclusion for
trading of the shares into the non-regulated market (Freiverkehr). However, the Issuer is fully committed to good
corporate governance and the goals of the Code. Therefore, the Issuer already now complies with the majority of
the recommendations of the Code on a voluntary basis. In the case the Issuer up-lists its shares to a segment of
the regulated market (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbrse) it will
have to issue a declaration relating to the Code.
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CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS
In the following sections we describe transactions with persons or companies which are, inter alia,
members of the same group as the Issuer or which are in control of or controlled by the Issuer. Control exists if a
shareholder owns more than one half of the voting rights in the Issuer or, by virtue of an agreement, has the
power to control the financial and operating policies of the Issuers management. We also disclose transactions
with associated companies (including joint ventures) as well as transactions with persons who have significant
influence on the Issuers financial and operating policies, including close family members and intermediate
entities. This includes the members of the Management Board and Supervisory Board and close members of their
families, as well as those entities over which the members of the Management Board and Supervisory Board or
their close family members are able to exercise a significant influence or in which they hold a significant share
of voting rights.
Set forth below is a summary of such transactions with related parties for the fiscal years ended
December 31, 2013, December 31, 2012 and December 31, 2011 up to and including the date of this prospectus.
The companies which are directly or indirectly controlled by the Issuer are listed under section List of
Shareholdings of the notes to the Issuers audited consolidated financial statement for the fiscal year ended
December 31, 2013 and to the Issuers audited unconsolidated financial statements for the fiscal years ended
December 31, 2012 and December 31, 2011.
General
We had business transactions with related parties in the fiscal years ended December 31,
2013, December 31, 2012 and December 31, 2011 as well as in the six-month period ended June 30, 2014, in the
ordinary course of business, in particular relating to IT, marketing and certain other services. All such
transactions with related parties were in our view carried out at arms length.
As of June 30, 2014, on an unconsolidated basis, transactions with affiliated companies (verbundene
Unternehmen) and companies in which an equity investment is held (Beteiligungen) resulted in receivables from
affiliated companies and companies in which an equity investment is held of 29.3 million (December 31, 2013:
10.3 million; December 31, 2012: 21.7 million; December 31, 2011: 96.6 million). In the fiscal years ended
December 31, 2013, December 31, 2012 and December 31, 2011, IT, marketing and certain other services
rendered to related parties accounted for more than 90% of the Issuers sales revenues on an unconsolidated
basis.
Zalando Spin-Off
On July 8, 2013, the Issuer made a constructive contribution (verdeckte Einlage) of its 34,440 shares in
Zalando to a wholly-owned subsidiary of the Issuer, Rocket Beteiligung. Immediately upon receipt of the shares
in Zalando on July 8, 2013, Rocket Beteiligung sold and transferred these shares in Zalando to GFG and Emesco
in accordance with their proportional shareholdings in the Issuer. Simultaneously, GFG and Emesco initially sold
and transferred 43,050 shares in the Issuer to Rocket Beteiligung. On February 4, 2014, the purchase price for the
shares in Zalando shares sold to Rocket Beteiligung on July 8, 2013 was adjusted pursuant to a purchase price
adjustment mechanism. Accordingly, the sale of shares in the Issuer from GFG and Emesco to Rocket
Beteiligung on July 8, 2013 was adjusted to 38,597 shares in the Issuer effective as of July 8, 2013 (the Zalando
Spin-Off). On August 19, 2014, Rocket Beteiligung was merged into the Issuer, which thereby acquired
38,597 treasury shares that were subsequently redeemed.
Dividends in Kind
For information on dividends in kind, see Dividend Policy; Results and Dividends per Share; Use of
ProfitsGroupon, Inc. Dividend in Kind and Dividend Policy; Results and Dividends per Share; Use of
ProfitsBigfoot I and Bigfoot II Dividend in Kind.
Financing Rounds
Related parties regularly participate in financing rounds relating to entities in our network of companies.
For more information, see Corporate Structure, Financing Rounds and Cash Management.
Transactions with GFG
In the six months ended June 30, 2014, on an unconsolidated basis, the Issuer had purchased services
(including tax) from its shareholder GFG of less than 0.1 million (2013: 0.2 million; 2012: 0.2 million; 2011
0.2 million).
These transactions with GFG were based on a consulting agreement between GFG and the Issuer. Some
of the payments under this agreement relate to reimbursements for consulting services and travel costs charged to
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GFG by Marc and Alexander Samwer under separate agreements between GFG and Marc Samwer and
Alexander Samwer, respectively. These agreements were terminated in 2014.
Relationship with Members of the Management Board
The current members of the Management Board only received remuneration relating to their function as
persons in key positions.
The remuneration paid to directors and members of the management board of Rocket Internet GmbH is
set forth in the following table:
Remuneration
2011 2012 2013
(in thousand)
Remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 347 586
Share-based remuneration (fair value of the subscription rights
granted to members of management that have left the Issuer) . . . . . . 108 6,257
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342 6,604 586
Apart from the relationships stated above, the Issuer did not have any other significant business
relationships with related parties.
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UNDERWRITING
General
On September 23, 2014, the Issuer and the Underwriters entered into the Underwriting Agreement
relating to the offer and sale of the Offer Shares in connection with the offering.
The offering consists of 37,882,353 bearer shares with no par value, each representing a share of 1.00
in the share capital and with full dividend rights as of January 1, 2014, comprising 32,941,177 newly issued
bearer shares with no par value and 4,941,176 existing bearer shares from the holdings of Global Founders
GmbH made available to Berenberg as stabilization manager on behalf of the Underwriters by way of a share
loan to cover potential Over-Allotments. 87% of the Offer Shares are newly issued shares by the Issuer and 13%
of the Offer Shares stems from the holdings of GFG.
The offering consists of a public offering of the Offer Shares in Germany and Luxembourg and private
placements of the Offer Shares in certain jurisdictions outside Germany and Luxembourg. The offering period is
expected to begin on September 24, 2014 and is expected to end on October 7, 2014. In the United States, the
Offer Shares will be offered for sale by the Underwriters to persons who are qualified institutional buyers in
reliance on Rule 144A under the Securities Act. Outside the United States, the Offer Shares will be offered and
sold to non-U.S. persons in reliance on the exemption from registration provided by Regulation S under the
Securities Act. Any offer and sale of the Offer Shares in the United States in reliance on Rule 144A will be made
by broker-dealers who are registered as such under the U.S. Securities Exchange Act of 1934.
The offer price for each Offer Share is expected to be determined jointly by the Issuer and the Joint
Bookrunners on or about October 7, 2014 on the basis of an order book prepared during the bookbuilding
process.
Under the terms of the Underwriting Agreement and subject to certain conditions, each Underwriter will
be obliged to acquire the number of Offer Shares set forth below opposite the Underwriters name:
Underwriters
Number of Offer
Shares to be acquired
(1)
Percentage of
Underwritten
Offer Shares
Joh. Berenberg, Gossler & Co. KG
Neuer Jungfernstieg 20, 20354 Hamburg, Germany . . . . . . . . . . . . . . . . . . . . . . 9,470,589 25.00%
J.P. Morgan Securities plc,
25 Bank Street-Canary Wharf, London E14 5JP, United Kingdom . . . . . . 9,470,588 25.00%
Morgan Stanley Bank AG
Junghofstrasse 13-15, 60311 Frankfurt am Main, Germany . . . . . . . . . . . . . . 9,470,588 25.00%
Merrill Lynch International
2 King Edward Street, London EC1A 1HQ, United Kingdom . . . . . . . . . . . 3,788,235 10.00%
Citigroup Global Markets Limited
Citigroup Centre, Canada Square, London E14 5LB,
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,894,118 5.00%
UBS Limited
1 Finsbury Avenue, London EC2M 2PP, United Kingdom . . . . . . . . . . . . . . 3,788,235 10.00%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,882,353 100.00%
(1) Assuming exercise of Greenshoe Option and issuance of all New Shares in full.
In connection with the offering, each of the Underwriters and any of their respective affiliates, acting as
an investor for its own account, may take up Offer Shares in the offering and in that capacity may retain,
purchase or sell for its own account such securities and any Offer Shares or related investments and may offer or
sell such Offer Shares or other investments other than in connection with the offering. Accordingly, references in
this prospectus to Offer Shares being offered or placed should be read as including any offering or placement of
Offer Shares to any of the Underwriters or any of their respective affiliates acting in such capacity. In addition,
certain of the Underwriters or their affiliates may enter into financing arrangements (including swaps) in
connection with which such Underwriters (or their affiliates) may from time to time acquire, hold or dispose of
Offer Shares. None of the Underwriters intend to disclose the extent of any such investment or transactions other
than in accordance with any legal or regulatory obligation to do so.
Underwriting Agreement
In the Underwriting Agreement, dated September 23, 2014, the Underwriters agreed to underwrite and
purchase the Offer Shares with a view to offering them to investors in this offering. The Underwriters agreed to
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remit to the Issuer the offer price of the New Shares (less agreed commissions and expenses), at the time the
shares are delivered, which is expected to be one bank working day after inclusion to trading. The Underwriters
further agreed to borrow up to 4,941,176 additional shares with regard to a possible Over-Allotment by way of a
share loan from GFG free of charge and to sell such shares as part of the offering.
The obligations of the Underwriters are subject to various conditions, including, among other things,
(i) the absence of a material event, e.g. a material adverse change in or affecting the conditions, business,
prospects, management, consolidated financial position, shareholders equity, or results of operations of the
Issuer, or a suspension or material limitation in trading in securities generally on the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse), the London Stock Exchange or the New York Stock Exchange, (ii) receipt of
customary certificates, legal opinions, auditor letters, and (iii) the introduction of the Shares to trading on the
Frankfurt Stock Exchange (Frankfurter Wertpapierbrse). The Underwriters have provided and may in the future
provide services to the Issuer and its existing shareholders in the ordinary course of business and may extend
credit to and have regular business dealings with the Issuer and its existing shareholders in their capacity as
financial institutions. (For a more detailed description of the interests of the Underwriters in the offering, see
The OfferingInterests of Parties Participating in the Offering).
Commission
The Underwriters will offer the Offer Shares at the offer price. The Issuer (for the shares offered from
the IPO Capital Increase) will pay the Underwriters a basic commission of about 1.50% of its gross proceeds
from the offering. To the extent that gross proceeds from the offering are related to (i) allocations to strategic
investors or shareholders of the Company immediately prior to the offering (including any of their affiliates,
officers, directors and significant shareholders) that purchase Offer Shares on an individual basis for at least
50 million due to the efforts of, and contacts with, the Company or any of its shareholders (it being understood
that financial investors such as public market investors or sovereign wealth funds do not constitute strategic
investors for these purposes) or (ii) to cornerstone investors who represent a principal investment by one of the
Joint Global Coordinators, the Issuer will pay the respective Underwriter(s) a reduced basic commission of about
1.00% of its gross proceeds from the offering. In addition to this base commission, the Issuer will pay the
Underwriters an additional discretionary fee of up to 1.50% of its gross proceeds from the offering, payable
entirely at the sole discretion of the Issuer and to be made within 35 days after the settlement date of the offering.
The Issuer also agreed to reimburse the Underwriters for certain expenses incurred by them in connection with
the offering.
Greenshoe Option and Securities Loan
To cover a potential Over-Allotment, GFG made available up to 4,941,176 existing shares to the
Underwriters free of charge through a share loan. In addition, the Issuer granted the Underwriters the option of
acquiring up to 4,941,176 shares at the offer price less agreed commissions (the Greenshoe Option). This
Greenshoe Option will terminate 30 calendar days after the first day of trading. If and to the extent the Greenshoe
Option is exercised, the Issuer will issue additional new shares to the Underwriters at the Offer Price which the
Underwriters will on-transfer to GFG in order to return the share loan.
Termination/Indemnification
The Underwriting Agreement provides that the Underwriters may, under certain circumstances,
terminate the Underwriting Agreement. Grounds for termination include, in particular, if:
the Issuer or the Group has sustained since the date of the latest audited financial statements
included in the prospectus a loss or interference with respect to its business from fire, explosion,
flood or other calamity (whether or not covered by insurance), or from any labor dispute or court or
governmental action, order or decree, other than as set forth or contemplated in the prospectus;
there has been any adverse change, or any development involving a reasonably likely prospective
adverse change, in or affecting the condition, business, prospects, management, consolidated
financial position, shareholders equity or results of operations of the Issuer or the Group, other
than as set forth, described or contemplated in the prospectus;
the Issuer or the Group has incurred any liability or obligation, direct or contingent, or entered into
any material transaction not in the ordinary course of business, other than as set forth, described or
contemplated in the prospectus;
a suspension in trading in securities of the Issuer or in securities generally on the Frankfurt,
London, or New York stock exchange (other than for technical reasons) develops;
a general moratorium is on banking activities in Frankfurt, London, or New York is declared by the
relevant authorities;
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a material disruption takes place in commercial banking or securities settlement or clearance
services in Europe or the United States;
a material adverse change occurs in national or international financial, political, or economic
conditions or currency exchange rates or currency controls which could have a material adverse
impact on the financial markets in Germany, the United Kingdom or the United States;
an outbreak or escalation of hostilities or the declaration of a national emergency or war has a
material adverse impact on the financial markets in Germany, the United Kingdom or the United
States; or
the occurrence of any act of terrorism or any other calamity or crisis or any change in financial,
political or economic conditions or currency exchange rates has a material adverse impact on the
financial markets in Germany, the United Kingdom, or the United States.
If the Underwriting Agreement is terminated, the offering will not take place, in which case any
allotments already made to investors will be invalidated and investors will have no claim for delivery. Claims
with respect to subscription fees already paid and costs incurred by an investor in connection with the
subscription will be governed solely by the legal relationship between the investor and the financial intermediary
to which the investor submitted its purchase order. Investors who engage in short-selling bear the risk of being
unable to satisfy their delivery obligations.
The Issuer agreed in the Underwriting Agreement to indemnify the Underwriters against certain
liabilities that may arise in connection with the offering, including liabilities under applicable securities laws. In
addition, the Issuer agreed to indemnify GFG against certain risks that may arise in connection with the share
loan.
Selling Restrictions
The distribution of this prospectus and the sale of the Offer Shares may be restricted by law in certain
jurisdictions. Pursuant to the Underwriting Agreement, no action has been or will be taken by the Issuer or the
Underwriters to permit a public offering of the Offers Shares (except in Germany and Luxembourg).
The Offer Shares are not and will not be registered pursuant to the provisions of the Securities Act or
with the securities regulators of the individual states of the United States. The Offer Shares may not be offered,
sold, or delivered, directly or indirectly, in or into the United States except pursuant to an exemption from the
registration and reporting requirements of the U.S. securities laws and in compliance with all other applicable
U.S. legal regulations. In the Underwriting Agreement, the Underwriters will represent and warrant that they
have not offered or sold and will refrain from offering or selling the Offer Shares in or into the United States
except to persons they reasonably believe to be qualified institutional buyers within the meaning of Rule 144A
under the Securities Act and qualified purchasers as defined in the Investment Company Act, and outside the
United States except to non-U.S. persons in accordance with Rule 902 of Regulation S under the Securities Act
and in compliance with other U.S. legal regulations, and that neither they nor any third party acting on their
behalf, have undertaken or will undertake, (i) directed selling efforts as defined in Regulation S under the
Securities Act or (ii) general advertising or general solicitation, each as defined in Regulation D under the
Securities Act in relation to the Offer Shares.
The Issuer does not intend to register either the offering or any portion of the offering in the United
States or to conduct a public offering of shares in the United States.
Accordingly, neither this document nor any advertisement or any other offering material may be
distributed or published in any jurisdiction except under circumstances that will result in compliance with any
applicable laws and regulations. Persons into whose possession this prospectus comes are required to inform
themselves about and observe any such restrictions, including those set out in the preceding paragraphs. Any
failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
Sales in the United Kingdom are also subject to restrictions. Each of the Underwriters represented and
warranted to the Issuer that:
(i) it has only communicated or caused to be communicated and will only communicate or cause to
be communicated any invitation or inducement to engage in investment activity within the meaning of Section 21
of the Financial Services and Markets Act 2000 (the FSMA) received by it in connection with the sale of any
Offer Shares in circumstances in which Section 21(1) of the FSMA does not apply to the Issuer; and
(ii) it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the Offer Shares in, from, or otherwise involving the United Kingdom.
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The Underwriters further represented and warranted in the Underwriting Agreement that they have not
and will not publicly offer the Offer Shares in any of the member states of the European Economic Area that
have implemented Directive 2003/71/EC as amended (the Prospectus Directive) from the date of the
implementation of the Prospectus Directive, unless (i) a prospectus for the Offer Shares has been previously
published that has been approved by the competent authority in such member state or has been approved in
another member state of the European Economic Area that has implemented the Prospectus Directive, and the
competent authority in the member state in which the offer takes place has been informed thereof in compliance
with the Prospectus Directive; (ii) the offer is exclusively intended for so-called qualified investors within the
meaning of the Prospectus Directive; or (iii) the offering takes place under other circumstances in which the
publication of a prospectus by the Issuer is not required under Article 3 of the Prospectus Directive, to the extent
that this exemption has been implemented in the respective member state.
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TAXATION IN GERMANY
The following section outlines certain key German tax principles that may be relevant with respect to
the acquisition, holding, or transfer of shares. This summary does not purport to be a comprehensive or
exhaustive description of all German tax considerations that may be relevant to shareholders. This presentation
is based upon domestic German tax laws in effect as of the date of this prospectus and the provisions of double
taxation treaties currently in force between Germany and other countries. It is important to note that the legal
situation may change, possibly with retroactive effect.
This section does not replace the need for individual shareholders to seek personal tax advice. It is
therefore recommended that shareholders consult their own tax advisors regarding the tax implications of
acquiring, holding, or transferring shares and what procedures are necessary to secure the repayment of
German withholding tax, if possible. Only qualified tax advisors are in the position to adequately consider the
particular tax situation of individual shareholders.
Taxation of the Issuer
The Issuers taxable income, whether distributed or retained, is generally subject to German corporate
income tax at a uniform rate of 15% plus the solidarity surcharge of 5.5% thereon, resulting in a total tax liability
of 15.825%.
Dividends and other shares in profits the Issuer receives from domestic and foreign corporations are not
generally subject to corporate income tax; however, 5% of each type of income is deemed to be a non-deductible
business expense and is thus taxable. The same applies generally to profits earned by the Issuer from the sale of
shares in another domestic or foreign corporation. Different rules apply to portfolio dividends, i.e., dividends
earned on direct shareholdings in a distributing corporation equal to less than 10% of its share capital at the start
of the calendar year. Such portfolio dividends are fully taxed at the corporate income tax rate (plus solidarity
surcharge thereon). The acquisition of a shareholding of at least 10% is deemed to have occurred at the start of
the calendar year. Losses incurred from the sale of such shares are not deductible for tax purposes, regardless of
the amount of shareholding.
In addition, the Issuer is subject to a trade tax with respect to its taxable trade profits from its permanent
establishments in Germany. When determining the amount on which to assess the trade tax, inter alia, in
principle 25% of the generally tax-deductible interest expenses will be added to the amount of profit determined
for corporate income tax purposes.
The trade tax rate varies depending on the local municipalities in which the Issuer maintains its
permanent establishments. The Issuers trade tax rate currently amounts to between approximately 10% and 17%
of the taxable trade profit, depending on the local trade tax multiplier.
For trade tax purposes, dividends received from domestic and foreign corporations and capital gains
from the sale of shares in other corporations are treated in principle in the same manner as for corporate income
tax purposes. However, dividends received from domestic and foreign corporations are effectively 95% exempt
from trade tax only if the Issuer held and continues to hold at least 15% (10% in the case of companies resident
for tax purposes in the EU member states other than Germany) of the registered share capital of the distributing
corporation at the beginning or in the case of foreign corporations since the beginning of the relevant tax
assessment period. Additional limitations apply with respect to dividends received from non-EU corporations.
The provisions of the interest barrier restrict the extent to which interest expenses are tax deductible.
Under these rules, net interest expense (the interest expense minus the interest income in a fiscal year) is
generally only deductible up to 30% of the taxable EBITDA (taxable earnings adjusted for interest costs, interest
income, and certain depreciation and amortization), though there are certain exceptions to this rule. Interest
expense that is not deductible in a given year may be carried forward to subsequent fiscal years of the Issuer
(interest carryforward) and will increase the interest expense in those subsequent years. Under certain
conditions, non-offsettable EBITDA can also be carried forward to subsequent years.
Losses of the Issuer can be carried forward in subsequent years and used to fully offset taxable income
for corporate income tax and trade tax purposes only up to an amount of 1 million (tax loss carryforward). If
the taxable income for the year or taxable profit subject to trade taxation exceeds this threshold, only up to 60%
of the amount exceeding the threshold may be offset by tax loss carryforwards. The remaining 40% is subject to
tax. The rules also provide for a tax carryback of an amount up to 1 million to the previous year with regard to
corporate income tax. Unused tax loss carryforwards can generally continue to be carried forward without time
limitation.
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If more than 50% of the subscribed capital, the membership interests, equity interests or voting rights is
transferred to an acquiring party within five years directly or indirectly (harmful acquisition), all tax loss
carryforwards and interest carryforwards are forfeited. A group of acquirers with aligned interests is also
considered to be an acquiring party for these purposes. In addition, any current year losses incurred prior to the
acquisition will not be deductible. If between 25% and 50% of the subscribed capital, membership interests,
equity interests or voting rights of the Issuer is transferred, a proportional amount of tax loss carryforwards,
unused losses and interest carryforwards is forfeited. Tax loss carryforwards, unused current losses and interest
carryforwards taxable in Germany will not expire to the extent that they are covered by built-in gains (stille
Reserven) taxable in Germany at the time of the harmful acquisition.
Taxation of Shareholders
Shareholders are taxed particularly in connection with the holding of shares (taxation of dividend
income), upon the sale of shares (taxation of capital gains) and the gratuitous transfer of shares (inheritance and
gift tax).
Taxation of Dividend Income
In the future, the Issuer may pay dividends out of a tax-recognized contribution account. To the extent
that the Issuer does pay dividends from this account, the dividends are not subject to tax. However, dividends
lower the acquisition costs of the shares, which may result in a greater amount of taxable capital gain upon the
shareholders sale of the shares. To the extent that dividends from the tax-recognized contribution account
exceed the then lowered acquisition costs of the shares, a capital gain is recognized by the shareholder, which
may be subject to tax in accordance with the provisions regarding the disposal of shares outlined below.
Withholding Tax
Unless paid from the tax-recognized contribution account, dividends distributed by the Issuer are subject
to a deduction at source (withholding tax) at a 25% rate plus a solidarity surcharge of 5.5% on the amount of
withholding tax (amounting in total to a rate of 26.375%). The basis for determining the dividend withholding
tax is the dividend approved for distribution by the Issuers general meeting.
Dividend withholding tax is generally withheld regardless of whether and, if so, to what extent the
shareholder must report the dividend for tax purposes and regardless of whether the shareholder is a resident of
Germany or of a foreign country.
As the Issuers shares are approved for collective custody in a securities depository and have been
placed in custody in Germany, the Issuer is not responsible for withholding the withholding tax; rather, it is, for
the account of the shareholders, the responsibility of one of the following entities in Germany authorized to
collect withholding tax do so and remit it to the relevant tax authority: (i) the domestic bank or financial service
institution, domestic securities trading company, or domestic securities trading bank (including the domestic
branches of foreign banks) that holds the shares in custody or manages them and that pays out or credits the
shareholders investment income or that pays the investment income to a foreign entity, or (ii) the securities
depository holding the collective deposit shares in custody, if it pays the investment income to a foreign entity, is
obliged to withhold the withholding tax.
Where dividends are distributed to a company resident in another member state of the European Union
within the meaning of Article 3 of EC Directive 2011/96/EU of the Council of November 30, 2011, as amended
(the Parent-Subsidiary Directive), the withholding of the dividend withholding tax may not be required, upon
application, provided that additional requirements are met (withholding tax exemption). This also applies to
dividends distributed to a permanent establishment located in another European Union member state of such a
parent company or of a parent company that is a tax resident in Germany if the interest in the dividend-paying
subsidiary is part of the respective permanent establishments business assets. An important prerequisite for the
withholding tax exemption under the Parent-Subsidiary Directive is that the shareholder has directly held at least
10% of the companys registered capital continuously for one year and that the German tax authorities
(Bundeszentralamt fr Steuern, with its registered office in Bonn-Beuel, An der Kppe 1, D-53225 Bonn,
Germany) have, based upon an application filed by the shareholder on the officially prescribed form, certified
that the prerequisites for exemption have been met.
The dividend withholding tax rate for dividends paid to other shareholders without a tax residence in
Germany will be reduced in accordance with the applicable double taxation treaty, if any, between Germany and
the shareholders country of residence, provided that the shares are neither held as part of the business assets of a
permanent establishment or a fixed base in Germany nor as part of the business assets for which a permanent
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representative in Germany has been appointed. The reduction in the dividend withholding tax is generally
obtained by applying to the Federal Central Office of Taxation (Bundeszentralamt fr Steuern, with its registered
office in Bonn-Beuel, An der Kppe 1, D-53225 Bonn, Germany) for a refund of the difference between the
dividend withholding tax withheld, including the solidarity surcharge, and the amount of withholding tax actually
owed under the applicable double taxation treaty, which is usually 15%. Forms for the refund procedure may be
obtained from the Federal Central Office of Taxation (http://www.bzst.bund.de), as well as German embassies
and consulates.
Corporations that are not tax resident in Germany will receive a refund of two-fifths of the dividend
withholding tax that was withheld and remitted to the tax authorities. This applies regardless of any further
reduction or exemption provided under the Parent-Subsidiary Directive or a double taxation treaty.
Foreign corporations will generally have to meet certain substance criteria defined by statute in order to
receive an exemption from or (partial) refund of German dividend withholding tax.
The Issuer assumes liability for withholding of taxes from sources (with the exception of church tax) on
distributions, in accordance with statutory provisions. This means that the Issuer is released from liability for the
violation of its legal obligation to withhold and transfer the taxes from the sources if it provides evidence that it
has not breached its duties intentionally or grossly negligent.
Taxation of Dividends of Shareholders with a Tax Residence in Germany
Individuals who Hold the Shares as Private Assets
For individuals who are tax resident in Germany (generally, individuals whose domicile or habitual
abode is located in Germany) and who hold the shares as private assets, the withholding tax will generally serve
as a final tax. In other words, once deducted, the shareholders income tax liability on the dividends will be
settled, and he or she will no longer have to declare them on his or her annual tax return (the flat tax).
The purpose of the flat tax is to provide for separate and final taxation of capital investment income
earned; in other words, taxation that is irrespective of the individuals personal income tax rate. Shareholders
may apply to have their capital investment income assessed in accordance with the general rules and with an
individuals personal income tax rate if this would result in a lower tax burden. In this case, the base for taxation
would be the gross dividend income less the savers allowance of 801 (1,602 for married couples and for
partners in accordance with the registered partnership law (Gesetz ber die Eingetragene Lebenspartnerschaft)
filing jointly). Any tax and solidarity surcharge already withheld would be credited against the income tax and
solidarity surcharge so determined and any overpayment refunded. Income-related expenses cannot be deducted
from capital gains in either case.
If the individual owns (i) at least 1% of the shares in the Issuer and works for the Issuer or (ii) at least
25% of the shares, upon application of the shareholder the dividends are taxed under the partial income method
(see below Sole Proprietors (Individuals)).
Through 2014, shareholders who pay church tax and hold shares as private assets may request a
domestic bank or financial service provider, a domestic securities trading company, or a domestic securities
trading bank (a Domestic Paying Agent) that pays out their capital investment income to withhold their
church tax according to the church tax legislation of their state and remit it to the relevant tax authority. Starting
in 2015, entities required to collect withholding taxes on capital investment income are required to likewise
withhold the church tax on shareholders who pay church tax, unless the shareholder objects in writing to the
German tax authorities sharing his or her private information regarding his or her affiliation with a denomination.
If church tax is withheld and remitted to the tax authority as part of the withholding tax deduction, then the
church tax on the dividends is also deemed to be discharged when it is deducted. The withheld church tax cannot
be deducted in the tax assessment as a special expense; however, 26.375% of the church tax withheld on the
dividends is deducted from the withholding tax (including the solidarity surcharge) withheld by the Issuer. If no
church taxes are withheld along with the withholding of capital gains tax, the shareholder who pays church tax is
required to report his or her dividends in his or her income tax return. The church tax on the dividends will then
be imposed during the assessment.
Shares Held as Business Assets
The flat tax does not apply to dividends from shares held as business assets of shareholders who are tax
resident in Germany. Taxation in this case depends on whether the shareholder is a corporation, an individual, or
a partnership. The withholding tax withheld and paid to the tax authorities, including the solidarity surcharge, is
credited against the personal income or corporate income tax and the solidarity surcharge of the shareholder, and
any overpayment will be refunded.
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Corporations
Dividends received by corporations resident in Germany are generally exempt from corporate income
tax and solidarity surcharge. However, 5% is treated as a non-deductible business expense and, as such, is subject
to corporate income tax (plus the solidarity surcharge) with a total tax rate of 15.825%.
Different rules apply to portfolio dividends, i.e., dividends earned on direct shareholdings in the Issuer
equal to less than 10% of its share capital at the start of the calendar year. Such portfolio dividends are fully
taxed at the corporate income tax rate (plus solidarity surcharge). The acquisition of a shareholding of at least
10% is deemed to have occurred at the start of the calendar year.
Business expenses actually incurred and having a direct business link to the dividends may be fully
deducted.
Net dividends (after deducting business expenses related to the dividends) are fully subject to trade tax,
unless the corporation held at least 15% of the Issuers registered share capital at the beginning of the relevant
tax assessment period, entitling it to an intercorporate privilege for trade tax purposes. In the latter case, the
aforementioned effective exemption of 95% of the dividend income applies, in principle.
Sole Proprietors (Individuals)
If the shares are held as part of the business assets of a sole proprietor (individual) with his or her tax
residence in Germany, 60% of the dividend is taxable (the partial income method). Likewise, only 60% of the
expenses economically related to the dividends is tax deductible. If the shares are held as business assets of a
domestic commercial permanent establishment, the full amount of the dividend income (after deducting business
expenses that are economically related to the dividends) is also subject to trade tax, unless the taxpayer held at
least 15% of the Issuers registered share capital at the beginning of the relevant tax assessment period. In the
latter case, the net dividends (after deducting directly related expenses) are exempt from trade tax. However,
trade tax is generally credited fully or in part as a lump sum against the shareholders personal income tax
liability.
Partnerships
If the shareholder is or is deemed to be a trading partnership with its tax residence in Germany, the
personal income tax or corporate income tax, as the case may be, and the solidarity surcharge, are levied at the
level of each partner rather than at the level of the partnership. The taxation of each partner depends upon
whether the partner is a corporation or an individual. If the partner is a corporation, then the dividend is generally
effectively 95% tax exempt; however, dividends from a direct shareholding representing less than 10% of the
share capital are fully subject to taxation (see above Corporations). If the partner is an individual, only 60%
of the dividend income is subject to income tax (see above Sole Proprietors (Individuals)).
Additionally, if the shares are held as business assets of a domestic commercial permanent
establishment or the shareholder is deemed to be a trading partnership, the full amount of the dividend income is
also subject to trade tax at the level of the partnership. In the case of partners who are individuals, the trade tax
that the partnership pays on his or her proportion of the partnerships income is generally credited fully or in
part as a lump sum against the individuals personal income tax liability. If the partnership held at least 15% of
the Issuers registered share capital at the beginning of the relevant tax assessment period, the dividends are, in
principle, not subject to trade tax. However, if and to the extent the partners are corporations, the 5% of the
dividend income treated as a non-deductible business expense will be subject to trade tax.
Financial and Insurance Sector
Special rules apply to companies operating in the financial and insurance sector (see below Special
Treatment of Companies in the Financial and Insurance Sectors and Pension Funds).
Taxation of Dividends of Shareholders without a Tax Residence in Germany
The dividends paid to shareholders (individuals and corporations) without a tax residence in Germany
are taxed in Germany, provided that the shares are held as part of the business assets of a permanent
establishment or a fixed base in Germany or as part of the business assets for which a permanent representative
in Germany has been appointed. The withholding tax (including the solidarity surcharge) withheld and remitted
to the German tax authorities is credited against the respective shareholders personal income tax or corporate
income tax liability, and any overpayment will be refunded. The same applies to the solidarity surcharge. These
shareholders are essentially subject to the same rules applicable to resident shareholders, as discussed above.
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In all other cases, the withholding of the dividend withholding tax discharges any tax liability of the
shareholder in Germany. A refund or exemption is granted only as discussed in the section on dividend
withholding tax above (see above Taxation of ShareholdersWithholding Tax).
Taxation of Capital Gains
Taxation of Capital Gains of Shareholders with a Tax Residence in Germany
Shares Held as Private Assets
Gains on the sale of shares that are held as private assets by shareholders with a tax residence in
Germany and that were acquired after December 31, 2008, are generally taxable regardless of the length of time
held. The tax rate is a uniform 25% plus the 5.5% solidarity surcharge thereon (as well as any church tax).
Taxable capital gain is the difference between (a) the sales gain after deducting the direct sales costs and
(b) the acquisition cost of the shares. Under certain conditions, prior payments from the tax-recognized
contribution account may lead to reduced acquisition costs of the shares held as personal assets and, as a
consequence, increase the taxable sales gain. Losses on the sale of shares may only be netted against gains on the
sale of shares.
If a Domestic Paying Agent sells the shares and pays out or credits the capital gains, and if said
Domestic Paying Agent withholds a withholding tax of 25% (plus 5.5% solidarity surcharge and church tax, if
applicable) and remits this to the tax authority, the tax on the capital gain will generally be discharged. If the
shares were held in safekeeping or administered by the respective Domestic Paying Agent since acquisition, the
amount of tax withheld is generally based on the difference between the proceeds from the sale, after deducting
expenses directly related to the sale, and the amount paid to acquire the shares. However, a withholding tax of
25% (plus 5.5% solidarity surcharge thereon and any church tax) will be applied to 30% of the gross sales
proceeds if the shares were not administered by the same custodian bank since acquisition and the original cost of
the shares cannot be verified or such a verification is not admissible. In this case, the shareholder is entitled to
verify the original costs of the shares in his or her annual tax return.
Through 2014, shareholders who pay church tax and hold shares as private assets may request the
Domestic Paying Agent that pays out their capital investment income to withhold their church tax on the capital
gain according to the church tax legislation of their state and remit it to the relevant tax authority. Starting in
2015, entities required to collect withholding taxes on capital investment income are required to likewise
withhold the church tax on shareholders who pay church taxes, unless the shareholder objects in writing to the
German tax authorities sharing his or her private information regarding his or her affiliation with a denomination.
If church tax is withheld and remitted to the tax authority as part of the withholding tax deduction, then the
church tax on the capital gain is also deemed to be discharged when it is deducted. The withheld church tax
cannot be deducted in the tax assessment as a special expense; however, 26.375% of the church tax withheld on
the capital gain is deducted from the withholding tax (including the solidarity surcharge) withheld by the Issuer.
A shareholder may request that all his or her items of capital investment income, along with his or her
other taxable income, be subject to the progressive income tax rate instead of the uniform tax rate for private
capital investment income, if this lowers his or her tax burden. The base for taxation would be the gross income
less the savers allowance of 801 (1,602 for married couples and for partners in accordance with the registered
partnership law (Gesetz ber die Eingetragene Lebenspartnerschaft) filing jointly). The prohibition on deducting
income-related costs and the restrictions on offsetting losses also apply to tax assessments based on the
progressive income tax rate. Any tax already withheld would be credited against the income tax so determined
and any overpayment refunded.
One exception to this rule is that a shareholders capital gains are subject to the partial income method
and not the flat tax. Consequently, 60% of the proceeds from the sale of shares are subject to the individual
income tax rate if the shareholder, or his or her legal predecessor in case of acquisition without consideration, has
directly or indirectly held shares equal to at least 1% of the Issuers share capital at any time during the previous
five years (a Qualified Participation). Of the expenses economically related to the proceeds of the sale of
shares, 60% is tax deductible.
In the case of a Qualified Participation, withholding tax (including the solidarity surcharge) is also
withheld by the Domestic Paying Agent. The tax withheld, however, is not treated as a final tax. Hence, the
shareholder is obligated to declare the gain on the sale on his or her income tax return. The withholding tax
(including the solidarity surcharge) withheld and remitted to the German tax authorities is credited against the
respective shareholders personal income tax or corporate income tax liability in the tax assessment, and any
overpayment will be refunded.
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Shares Held as Business Assets
The flat tax does not apply to proceeds from the sale of shares held as business assets by shareholders
tax resident in Germany. If the shares form part of a shareholders business assets, taxation of the capital gains
realized will then depend upon whether the shareholder is a corporation, sole proprietor or partnership.
1. Corporations: In general, capital gains earned on the sale of shares by corporations tax resident in
Germany are exempt from corporate income tax (including the solidarity surcharge) and trade tax,
irrespective of the stake represented by the shares and the length of time the shares are held.
However, 5% of the capital gains is treated as a nondeductible business expense and, as such, is
subject to corporate income tax (plus the solidarity surcharge) and to trade tax. Losses from the sale
of shares and any other reductions in profit do not qualify as tax-deductible business expenses.
2. Sole proprietors (individuals): If the shares were acquired after December 31, 2008, and form part
of the business assets of a sole proprietor (individual) who is a tax resident of Germany, 60% of the
capital gains on their sale is subject to the individuals tax bracket plus the solidarity surcharge
(partial income method). Correspondingly, only 60% of losses from such sales and 60% of
expenses economically related to such sales are deductible. For church tax, if applicable, the partial
income method also applies. If the shares are held as business assets of a commercial permanent
establishment located in Germany, 60% of the capital gains is also subject to trade tax. The trade
tax is fully or partially credited as a lump sum against the shareholders personal income tax
liability.
3. Partnerships: If the shareholder is or is deemed to be a trading partnership, personal income tax or
corporate income tax, as the case may be, is assessed at the level of each partner rather than at the
level of the partnership. The taxation of each partner depends upon whether the respective partner is
a corporation or an individual. If the partner is a corporation, the tax principles applying to capital
gains which are outlined in subsection 1 apply. If the partner is an individual, the tax principles
applying to capital gains which are outlined in subsection 2 apply. Upon application and provided
that additional prerequisites are met, an individual who is a partner can obtain a reduction of his or
her personal income tax rate for profits not withdrawn from the partnership. In addition, capital
gains from the sale of shares attributable to a permanent establishment maintained in Germany by a
trading partnership are subject to trade tax at the level of the partnership. As a rule, only 60% of the
gains in this case is subject to trade tax if the partners in the partnership are individuals, while 5% is
subject to trade tax if the partners are corporations and shares are sold. Under the principles
discussed under 1 and 2 above, losses on sales and other reductions in profit related to the shares
sold are generally not deductible or only partially deductible if the partner is a corporation. If the
partner is an individual, the trade tax the partnership pays on his or her share of the partnerships
income is generally credited fully or in part as a lump sum against his or her personal income
tax liability, depending on the tax rate imposed by the local municipality and certain individual tax-
relevant circumstances of the taxpayer.
Special rules apply to capital gains realized by companies active in the financial and insurance sectors,
as well as pension funds, as described below.
Where a Domestic Paying Agent is concerned, the proceeds from the sale of shares held as business
assets are generally subject to the same withholding tax rate as those of shareholders whose shares are held as
private assets (see section Shares Held as Private Assets). However, the Domestic Paying Agent may refrain
from withholding the withholding tax if (i) the shareholder is a corporation, association or estate with its tax
residence in Germany, or (ii) the shares form part of the shareholders domestic business assets, and the
shareholder informs the paying agent of this on the officially prescribed form and meets certain additional
prerequisites. If the Domestic Paying Agent nevertheless withholds taxes, the withholding tax withheld and
remitted (including the solidarity surcharge) will be credited against the shareholders income tax or corporate
income tax liability, and any excess amount will be refunded.
Taxation of Capital Gains of Shareholders without a Tax Residence in Germany
Capital gains realized by a shareholder with no tax residence in Germany are subject to German income
tax only if the selling shareholder holds a Qualified Participation or if the shares form part of the business assets
of a permanent establishment in Germany or of business assets for which a permanent representative is
appointed.
In such a case, most double taxation treaties provide for an exemption from German taxes and assign the
right of taxation to the shareholders country of tax residence.
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Special Treatment of Companies in the Financial and Insurance Sectors and Pension Funds
If financial institutions or financial services providers hold or sell shares that are allocable to their
trading book pursuant to Section 1a of the German Banking Act (Gesetz ber das Kreditwesen), they will neither
be able to use the partial income method nor have 60% of their gains exempted from taxation nor be entitled to
the effective 95% exemption from corporate income tax plus the solidarity surcharge and any applicable trade
tax. Thus, dividend income and capital gains are fully taxable. The same applies to shares acquired by financial
institutions in the meaning of the German Banking Act for the purpose of generating profits from short-term
proprietary trading. The preceding sentence applies accordingly for shares held in a permanent establishment in
Germany by financial institutions, financial service providers, and finance companies tax resident in another
member state of the European Union or in other signatory states of the EEA Agreement. Likewise, the tax
exemption described earlier afforded to corporations for dividend income and capital gains from the sale of
shares does not apply to shares that qualify as a capital investment in the case of life insurance and health
insurance companies, or those which are held by pension funds.
However, an exemption to the foregoing, and thus a 95% effective tax exemption, applies to dividends
obtained by the aforementioned companies, to which the Parent-Subsidiary Directive applies.
Inheritance and Gift Tax
The transfer of shares to another person by will or gift is generally subject to German inheritance and
gift tax only if:
1. The decedent, donor, heir, beneficiary or other transferee maintained his or her domicile or habitual
abode in Germany, or had its place of management or registered office in Germany at the time of
the transfer, or is a German citizen who has spent no more than five consecutive years outside
Germany without maintaining a residence in Germany (special rules apply to certain former
German citizens who neither maintain their domicile nor have their habitual abode in Germany),
2. the shares were held by the decedent or donor as part of business assets for which a permanent
establishment was maintained in Germany or for which a permanent representative in Germany had
been appointed, or
3. the decedent or donor with place of management or registered office in Germany, either
individually or collectively with related parties, held, directly or indirectly, at least 10% of the
Issuers registered share capital at the time of the inheritance or gift.
The fair value represents the tax assessment base. In general that is the stock exchange price. A special
discount on this amount applies to direct shareholdings of more than 25% in the Issuer depending on the
composition of the business assets and future business figures, if, inter alia, the heir or beneficiary meets a
five-year holding period. Depending on the degree of relationship between decedent or donor and recipient,
different tax free allowances and tax rates apply.
The few German double taxation treaties relating to inheritance tax and gift tax currently in force
usually provide that the German inheritance tax or gift tax can only be levied in the cases of (1.) above, and also
with certain restrictions in case of (2.) above. Special provisions apply to certain German nationals living outside
of Germany and former German nationals.
Other Taxes
No German transfer tax, value added tax, stamp duty or similar taxes are assessed on the purchase, sale
or other transfer of shares. Provided that certain requirements are met, an entrepreneur may, however, opt for the
payment of value added tax on transactions that are otherwise tax exempt. Net wealth tax is currently not
imposed in Germany.
On January 22, 2013, the Council of the European Union approved the resolution of the ministers of
finance from eleven EU member states (including Germany) to introduce a financial transaction tax within the
framework of enhanced cooperation. On February 14, 2013, the European Commission accepted the proposal for
a Council Directive implementing enhanced cooperation in the area of financial transaction tax. The plan focuses
on levying a financial transaction tax of 0.1% (0.01% for derivatives) on the purchase and sale of financial
instruments.
A joint statement issued in May 2014 by ten of the eleven participating Member States indicated an
intention to implement the FTT progressively, such that it would initially apply to shares and certain derivatives,
with this initial implementation occurring by January 1, 2016. However, full details are not available. Therefore
222
it is not known to what extent the elements of the European Commissions proposal outlined in the preceding
paragraph will be followed in relation to the taxation of shares. The financial transaction tax proposal remains
subject to negotiation between the participating Member States and is the subject of legal challenge. It may
therefore be altered prior to any implementation, the timing of which remains unclear. Additional EU Member
States may decide to participate. Prospective holders of the Shares are advised to seek their own professional
advice in relation to the financial transaction tax.
223
TAXATION IN LUXEMBOURG
The following information is of a general nature only and is based on the laws in force in Luxembourg
as of the date of this prospectus. It does not purport to be a comprehensive description of all the tax
considerations that might be relevant to an investment decision. It is included herein solely for preliminary
information purposes. It is not intended to be, nor should it be construed to be, legal or tax advice. It is a
description of the essential material Luxembourg tax consequences with respect to the offering and may not
include tax considerations that arise from rules of general application or that are generally assumed to be known
to shareholders. This summary is based on the laws in force in Luxembourg on the date of this prospectus and is
subject to any change in law that may take effect after such date. Prospective shareholders (the Shareholders)
should consult their professional advisors with respect to particular circumstances, the effects of state, local or
foreign laws to which they may be subject, and as to their tax position. Please be aware that the residence concept
used under the respective headings applies for Luxembourg income tax assessment purposes only. Any reference
in the present section to a tax, duty, levy impost or other charge or withholding of a similar nature refers to
Luxembourg tax law and/or concepts only. Also, please note that a reference to Luxembourg income tax
encompasses corporate income tax (impt sur le revenu des collectivits), municipal business tax (impt
commercial communal), a solidarity surcharge (contribution au fonds pour lemploi), as well as personal income
tax (impt sur le revenu) generally. Corporate Shareholders may further be subject to net wealth tax (impt sur la
fortune) as well as other duties, levies or taxes. Corporate income tax, municipal business tax as well as the
solidarity surcharge invariably apply to most corporate taxpayers resident in Luxembourg for tax purposes.
Individual taxpayers are generally subject to personal income tax and the solidarity surcharge. Under certain
circumstances, where an individual taxpayer acts in the course of the management of a professional or business
undertaking, municipal business tax may apply as well.
Luxembourg Taxation of Shares of a Non-Resident Company
Withholding Taxes
Dividend payments made to Shareholders by a non-resident company, such as the Issuer, as well as
liquidation proceeds and capital gains derived therefrom are not subject to a withholding tax in Luxembourg.
Income Tax
Taxation of Income Derived From Shares, and Capital Gains Realized On Shares by Luxembourg Residents
Taxation of dividend income
(a) Luxembourg Resident Shareholders
Dividends and other payments derived from the Shares by resident individual Shareholders and
non-resident individual Shareholders having a permanent establishment or permanent representative in
Luxembourg to which or whom such Shares are attributable, will in principle be subject to tax at the ordinary
rates on the dividends received from the Issuer. A tax credit may under certain conditions be granted for foreign
withholding taxes against Luxembourg income tax due on these dividends, without exceeding in any case
Luxembourg tax on such income. Under current Luxembourg tax law, 50% of the gross amount of dividends
received by resident individual Shareholders may be tax exempt at the level of these Shareholders.
Dividends derived from the Shares by Luxembourg resident fully taxable companies are subject to
income taxes, unless the conditions of the participation exemption regime are satisfied.
Under the participation exemption regime, dividends derived from the Shares may be exempt from
income tax at the level of the Shareholder if cumulatively (a) the Shareholder receiving the dividends is either
(i) a fully taxable Luxembourg resident company, (ii) a domestic permanent establishment of an EU resident
company falling under article 2 of the Council Directive 2011/96/EU (EU Parent Subsidiary Directive),
(iii) a domestic permanent establishment of a company limited by shares (socit de capitaux) that is resident in a
State with which Luxembourg has concluded a double tax treaty, or (iv) a domestic permanent establishment of a
company limited by shares (socit de capitaux) or of a cooperative company which is a resident of a EEA
Member State (other than a EU Member State); and at the date on which the income is made available, (b) the
distributing company is a qualified subsidiary (Qualified Subsidiary), (c) the Shareholder holds or commits to
hold directly (or even indirectly through certain entities) for an uninterrupted period of at least twelve months a
qualified shareholding (Qualified Shareholding). A Qualified Subsidiary means (a) a Luxembourg resident
fully-taxable company limited by share capital (socit de capitaux), (b) a company covered by Article 2 of the
224
amended EU Parent-Subsidiary Directive or (c) a non-resident company limited by share capital (socit de
capitaux) liable to a tax corresponding to Luxembourg corporate income tax. A Qualified Shareholding means
Shares representing a direct participation of at least 10% in the share capital of the Qualified Subsidiary or a
direct participation in the Qualified Subsidiary of an acquisition price of at least 1.2 million (or an equivalent
amount in another currency). Liquidation proceeds are assimilated to a received dividend and may be exempt
under the same conditions. Shares held through a tax transparent entity are considered as being a direct
participation proportionally to the percentage held in the net assets of the transparent entity. If the participation
exemption does not apply, dividends may benefit from the 50% exemption under the relevant conditions set out
above.
Any Shareholder which is a Luxembourg resident entity governed by the law of December 17, 2010 on
undertakings for collective investment, as amended, by the law of February 13, 2007 on specialized investment
funds, as amended, or by the law of May 11, 2007 on the family estate management company, as amended, or by
the law of June 15, 2004 on venture capital vehicles, as amended, is no subject to any Luxembourg corporation
taxes in respect of dividends received from the Issuer. No tax credit is then available for Luxembourg
withholding tax on dividends received from the Issuer.
(b) Non-resident Shareholders
Non-resident Shareholders (not having a permanent establishment or permanent representative in
Luxembourg to which or whom the Shares are attributable) will in principle not be subject to Luxembourg
income tax on the dividends received from the Issuer.
Taxation of capital gains
(a) Luxembourg resident Shareholders
Capital gains realized on the disposal of the Shares by resident individual Shareholders, who act in the
course of the management of their private wealth, are not subject to income tax, unless said capital gains qualify
either as speculative gains or as gains on a substantial participation (Substantial Participation). Capital gains
are deemed to be speculative and are subject to income tax at ordinary rates if the Shares are disposed of within
six months after their acquisition or if their disposal precedes their acquisition. A participation is deemed to be
substantial where a resident individual Shareholder holds, either alone or together with his spouse or partner
and/or minor children, directly or indirectly at any time within the five years preceding the disposal, more than
10% of the share capital of the Issuer. A Shareholder is also deemed to transfer a Substantial Participation if he
acquired free of charge, within the five years preceding the transfer, a participation that was constituting a
Substantial Participation in the hands of the transferor (or the transferors in case of successive transfers free of
charge within the same five-year period). Capital gains realized on a Substantial Participation are subject to
Luxembourg income tax according to the half-global rate method (i.e., the average rate applicable to the total
income is calculated according to progressive income tax rates and half of the average rate is applied to the
capital gains realized on a Substantial Participation) and may benefit from an allowance of up to 50,000 granted
for a ten-year period (doubled for individual taxpayers who are jointly taxable). A disposal may include a sale, an
exchange, a contribution or any other kind of alienation of the Shares.
Capital gains realized on the disposal of the Shares by resident individual Shareholders, who act in the
course of their professional/business activity, are subject to income tax at ordinary rates. Taxable gains are
determined as being the difference between the price for which the Shares have been disposed of and the lower of
their cost or book value.
Capital gains realized by (a) a Luxembourg fully-taxable resident company or (b) the Luxembourg
permanent establishment of a non-resident foreign company on the Shares of the Issuer are subject to income tax
at the maximum global rate of 29.22% (in Luxembourg-City in 2014), unless the conditions of the participation
exemption regime, as described above, are satisfied except that the acquisition price must be of at least 6 million
for capital gain exemption purposes. Shares held through a tax transparent entity are considered as a direct
participation holding proportionally to the percentage held in the assets of the transparent entity. To the extent
that expenses related to the (exempt) shareholding have reduced the Shareholders taxable profits (during the
year of the sale or in prior years), these deductions will be recaptured at the time the relevant shareholding is
sold. Consequently, the capital gain realized will become taxable up to the amount of the aggregate expenses and
write-downs deducted during the respective and previous years in relation to the participation.
Taxable gains are determined to be the difference between the price for which the Shares have been
disposed of and the lower of their cost or book value.
The Shareholder which is a Luxembourg resident entity governed by the law of December 17, 2010 on
undertakings for collective investment, as amended, by the law of February 13, 2007 on specialized investment
225
funds, as amended, or by the law of May 11, 2007 on the family estate management company, as amended or by
the law of June 15, 2004 on venture capital vehicles, as amended is not subject to any Luxembourg corporation
taxes in respect of capital gains realized upon disposal of its Shares.
(b) Non-resident Shareholders
Under Luxembourg tax laws currently in force (subject to the provisions of double taxation treaties),
capital gains realized on the disposal of the Shares by a non-resident Shareholder holding the Shares through a
Luxembourg permanent establishment or through a Luxembourg permanent representative to which or whom the
Shares are attributable are subject to income tax at ordinary rates. Taxable gains are determined as being the
difference between the price for which the Shares have been disposed of and the lower of their cost or book
value.
Net Wealth Tax
Luxembourg resident Shareholders, as well as non-resident Shareholders who have a permanent
establishment or a permanent representative in Luxembourg to which or whom the Shares are attributable, are
subject to Luxembourg net wealth tax at the rate of 0.5% applied on its net assets as determined for net wealth
tax purposes on the net wealth tax assessment date, except if the Shareholder is (i) a resident or non-resident
individual, (ii) or governed by the amended law of May 11, 2007 on family estate management companies,
(iii) by the amended law of December 17, 2010 on undertakings for collective investment, (iv) by the law of
February 13, 2007 on specialized investment funds, as amended, or (v) is a securitization company governed by
the law of March 22, 2004 on securitization, as amended, or (vi) is a capital company governed by the law of
June 15, 2004 on venture capital vehicles, as amended.
Furthermore, in the case the Shareholder is a Luxembourg resident fully taxable collective entity (or
(i) a domestic permanent establishment of an EU resident company covered by Article 2 of the amended EU
Parent-Subsidiary Directive, or (ii) a domestic permanent establishment of a company limited by shares (socit
de capitaux) that is resident in a State with which Luxembourg has concluded a double tax treaty, or (iii) a
domestic permanent establishment of a company limited by shares (socit de capitaux) or of a cooperative
company which is a resident of a EEA Member State (other than a EU Member State), the Shares may be exempt
for a given year, if the Shares represent at the end of the previous year a participation of at least 10% in the share
capital of the Issuer or a participation of an acquisition price of at least 1.2 million. Under certain conditions, the
net wealth tax charge for a given year can be reduced if a specific reserve, equal to five times the net wealth tax
to save, is created before the end of the subsequent tax year and maintained during the five following tax years.
Other Taxes
Under current Luxembourg tax laws, no registration tax or similar tax is in principle payable by the
Shareholder upon the acquisition, holding or disposal of the Shares. However, a fixed registration duty of
12 may be due upon registration of the Shares in Luxembourg in the case of legal proceedings before
Luxembourg courts, in case the Shares must be produced before an official Luxembourg authority, or in the case
of a registration of the Shares on a voluntary basis.
Under current Luxembourg tax law, where an individual Shareholder is a resident of Luxembourg for
inheritance tax purposes at the time of his/her death, the Shares are included in his or her taxable basis for
inheritance tax purposes.
Gift tax may be due on a gift or donation of the Shares if the gift is recorded in a Luxembourg notarial
deed or otherwise registered in Luxembourg.
226
FINANCIAL INFORMATION
Page
Unaudited Condensed Interim Consolidated Financial Statements of Rocket Internet AG as of June 30,
2014 (prepared in accordance with German GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-2
Interim Consolidated Balance Sheet as of June 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-3
Interim Consolidated Income Statement for the period from January 1 through June 30, 2014 . . . . . . . . F-5
Interim Consolidated Statement of Cash Flow for the period from January 1 through June 30, 2014 . . . . F-6
Interim Consolidated Statement of Changes in Equity for the period January 1 through June 30,
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-7
Notes to the Interim Consolidated Financial Statements for the 1st half of 2014 . . . . . . . . . . . . . . . . . . . . F-8
Audited Consolidated Financial Statements of Rocket Internet GmbH as of and for the financial year
ended December 31, 2013 (prepared in accordance with German GAAP) . . . . . . . . . . . . . . . . . . . . . . . F-15
Consolidated Balance Sheet as of 31 December 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-16
Consolidated Income Statement for the fiscal year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-18
Consolidated Cash Flow Statement for the fiscal year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-19
Consolidated Statement of Changes in Equity for the fiscal year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . F-20
Notes to the Consolidated Financial Statements for Financial Year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . F-21
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-39
Audited Unconsolidated Financial Statements of Rocket Internet GmbH as of and for the financial
year ended December 31, 2013 (prepared in accordance with German GAAP) . . . . . . . . . . . . . . . . . . . F-40
Balance Sheet as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-41
Income Statement for the period from January 1, through December 31, 2013 . . . . . . . . . . . . . . . . . . . . . F-43
Notes to the Annual Financial Statements as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-44
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-53
Audited Unconsolidated Financial Statements of Rocket Internet GmbH as of and for the financial
year ended December 31, 2012 (prepared in accordance with German GAAP) . . . . . . . . . . . . . . . . . . . F-54
Balance Sheet as of December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-55
Income Statement for the period from January 1, through December 31, 2012 . . . . . . . . . . . . . . . . . . . . . F-57
Notes to the Annual Financial Statements as of December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-58
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-67
Audited Unconsolidated Financial Statements of Rocket Internet GmbH as of and for the financial
year ended December 31, 2011 (prepared in accordance with German GAAP) . . . . . . . . . . . . . . . . . . . F-68
Balance Sheet as of December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-69
Income Statement for the period from January 1, through December 31, 2011 . . . . . . . . . . . . . . . . . . . . . F-71
Notes to the Annual Financial Statements as of December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-72
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-79
Additional Unconsolidated Information of Rocket Internet AG (formerly Rocket Internet GmbH) for
the financial year ended December 31, 2012 (prepared in accordance with German GAAP) . . . . . . . . F-80
Statement of changes in equity for the financial year 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-81
Cash flow statement for the financial year 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-82
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-83
Additional Unconsolidated Information of Rocket Internet AG (formerly Rocket Internet GmbH) for
the financial year ended December 31, 2011 (prepared in accordance with German GAAP) . . . . . . . . F-84
Statement of changes in equity for the financial year 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-85
Cash flow statement for the financial year 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-86
Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-87
F-1
Rocket Internet AG
Unaudited Condensed Interim Consolidated Financial Statements
as of June 30, 2014
(prepared in accordance with German GAAP)
F-2
Rocket Internet AG, Berlin
Interim consolidated balance sheet as of June 30, 2014
June 30,
2014
December 31,
2013
EUR k EUR k
Assets
A. Fixed assets
I. Intangible assets
1. Purchased industrial and similar rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739 543
2. Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 599 670
1,339 1,213
II. Property, plant and equipment
1. Tenant improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 59
2. Plant and machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 772 540
3. Other equipment, operating and business equipment . . . . . . . . . . . . . . . . . . . . . . . 2,103 1,725
4. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 104
3,045 2,428
III. Financial assets
1. Shares in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,717 2,160
2. Equity investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,055 361,106
3. Securities held as fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,064 8,316
4. Other participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,907 18,907
5. Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 36
380,742 390,525
385,126 394,166
B. Current assets
I. Inventories
1. Raw materials, consumables and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 21
2. Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 797 245
3. Merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,678 7,887
4. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 380
9,800 8,535
II. Receivables and other assets
1. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,432 2,673
2. Receivables from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,697 5,914
3. Receivables from associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,109 22,594
4. Receivables from companies in which a participation is held . . . . . . . . . . . . . . . . 71 25
5. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,831 5,265
70,140 36,471
III. Other Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,000 0
IV. Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,536 437,422
201,475 482,427
C. Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 725 505
D. Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294 321
587,620 877,419
F-3
June 30,
2014
December 31,
2013
EUR k EUR k
Equity and liabilities
A. Equity capital
I. Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 110
./. Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 43
72 67
II. Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 501,197 462,196
III. Revenue reserves
Other revenue reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,641 208,896
IV. Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,136 659
V. Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,832 84,438
VI. Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,514 18,026
491,455 772,965
B. Negative consolidation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 86
C. Provisions
1. Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,014 12,086
2. Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,127 25,108
41,141 37,194
D. Liabilities
1. Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 23
2. Prepayments received on account of orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301 538
3. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,399 20,249
4. Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 14,497
5. Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,053 953
6. Liabilities to associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,950 22,420
7. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,072 8,163
thereof for taxes: EUR k 3,094 (PY: EUR k 4,086)
thereof for social security: EUR k 458 (PY: EUR k 207)
54,825 66,844
E. Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 329
F. Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1
587,620 877,419
F-4
Rocket Internet AG, Berlin
Interim consolidated income statement for the period from January 1 through June 30, 2014
January 1 - June 30,
2014
January 1 - June 30,
2013
EUR k EUR k
1. Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,982 32,968
2. Increase in the work in process inventory . . . . . . . . . . . . . . . . . . . . . . 683 1,296
3. Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,178 891
thereof income from currency translation EUR k 93 (PY: EUR k 1)
65,842 35,154
4. Cost of materials
a) Cost of raw materials, consumables and supplies and of
purchased merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,729 12,140
b) Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,173 3,216
5. Personnel expenses
a) Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,452 16,040
b) Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . 4,466 3,230
thereof retirement benefits EUR k 890 (PY: EUR k 439)
6. Amortization / depreciation of intangible assets and of property,
plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799 488
7. Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,272 18,208
thereof expenses from currency translation EUR k 298
(PY: EUR k 2)
89,892 53,321
8. Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 7
9. Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,226 40,997
10. Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 175
thereof from affiliated companies EUR k 66 (EUR k 9)
11. Write-downs of financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 0
12. Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742 238
thereof from affiliated companies EUR k 101 (PY: EUR k 0)
12,738 40,942
13. Result from ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,312 22,775
14. Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,511 169
thereof change in deferred taxes EUR k 361 (PY: EUR k 29)
15. Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434 284
1,946 453
16. Consolidated net loss / net income for the period . . . . . . . . . . . . . . . . 13,257 22,321
17. Profit / loss carried forward from previous year . . . . . . . . . . . . . . . . . 84,438 23,384
18. Advance dividend pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323,905 0
19. Loss attributable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . 13,892 5,459
20. Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238,832 4,397
F-5
Rocket Internet AG, Berlin
Interim consolidated statement of cash flow for the period from January 1 through June 30, 2014
January 1 - June 30,
2014
January 1 - June 30,
2013
EUR k EUR k
1. Cash flow from operating activities
Consolidated net loss / income for the period (including minority
interests in profit and loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,257 22,321
+/ Amortization, depreciation and write-downs / write-ups of fixed
assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812 488
+/ Increase / decrease in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,947 1,195
/+ Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,226 40,997
+/ Other non-cash expenses / income . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,168 2,392
/+ Gain / loss on disposals of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . 751 53
/+ Increase / decrease in inventories, trade receivables and other
assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,400 2,427
+/ Increase / decrease in trade payables and other liabilities . . . . . . . . . . 5,546 955
= Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . 55,497 18,412
2. Cash flow from investing activities
+ Cash received from disposals of property, plant and equipment . . . . . 244 0
Cash paid for investments in property, plant and equipment . . . . . . . 1,498 615
Cash paid for investments in intangible assets . . . . . . . . . . . . . . . . . . 253 76
+ Cash received from disposals of fixed financial assets . . . . . . . . . . . . 1,115 271
Cash paid for investments in fixed financial assets . . . . . . . . . . . . . . . 10,949 2,517
+ Cash received from disposals of consolidated companies and other
business units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 0
Cash paid for the acquisition of consolidated companies and other
business units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 798
+ Cash received in connection with short-term financial management
of cash investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,352 8,592
Cash paid in connection with short-term financial management of
cash investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204,211 11,663
= Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,159 6,807
3. Cash flow from financing activities
+ Proceeds from minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,884 1,218
Purchase of minority interests without a change in control . . . . . . . . 225 0
Dividends paid to equity holders of the parent (advance
dividends) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286,766 0
+ Cash received from loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,225 5,860
Repayments of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835 130
= Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . 229,717 6,949
4. Cash and cash equivalents at the end of the period
Change in cash and cash equivalents (subtotal of 1 to 3) . . . . . . . . . . 347,374 18,270
Changes in cash and cash equivalents due to exchange rates, changes
in the basis of consolidation and valuation . . . . . . . . . . . . . . . . . . . . . 9,513 47
Cash and cash equivalents at the beginning of the period . . . . . . . . . . 437,422 187,024
Cash and cash equivalents at the end of the period . . . . . . . . . . . . . . . 80,536 168,801
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F-7
Notes to the Interim Consolidated Financial Statements for the 1
st
half of 2014
Rocket Internet AG
Contents
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-9
Basis of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-9
Accounting and Valuation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-9
Notes to the Interim Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-10
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-10
(1) Fixed financial assets / shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-10
(2) Approximation of accumulated losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-11
(3) Issuance of shares by an equity method investee to a third party . . . . . . . . . . . . . . . . . . . . . . . . . . F-12
(4) Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12
Equity and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12
(5) Equity capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-12
(6) Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
Notes to the Interim Consolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
(7) Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
(8) Other operating income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
Other Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
(9) Other financial obligations and off-balance-sheet transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . F-13
(10) Related party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-14
(11) Management board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-14
(12) Number of staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-14
F-8
General Information
The present condensed and consolidated interim financial statements of Rocket Internet AG and its subsidiaries
(referred to jointly as Rocket Internet, parent company, Group or Rocket Group were prepared in
accordance with German commercial law provisions (Section 290 et seqq. HGB) applicable to non-listed
companies.
The consolidated interim financial statements as of June 30, 2014 are presented in euros. The reporting period is
January 1 to June 30, 2014. All amounts are stated in thousands of euros (T) except where otherwise indicated.
The basis for the consolidated interim financial statements comprises the consolidated financial statements for
the Rocket Group as of December 31, 2013, which should be referred to for further information. Unless
otherwise indicated, all values are rounded up or down to the nearest thousand (T) in accordance with a
commercial rounding approach, which may result in rounding differences of +/one unit.
Basis of consolidation
In addition to Rocket Internet AG, the consolidated group also comprises 149 other fully consolidated
companies. The scope of consolidation changed as follows in the reporting period:
Germany Other countries Total
As of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 46 115
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foundations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5
Consolidated for the first time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 37 51
Transition to associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 19
thereof subsidiaries of associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) (5) (13)
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2
As of June 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 77 150
Disposals of subsidiaries
On April 4, 2014 Rockets fully consolidated subsidiary, Asia Internet Holding S. r.l. (as seller), and associated
company Car Classifieds Asia S. r.l. (as buyer) signed an agreement on the sale of 100% shares in Carmudi
GmbH, Berlin, (formerly Brillant 1253. GmbH).
Under an agreement dated May 16, 2014, International Rocket GmbH & Co. KG divested its 100 percent stake in
Rocket Russia OOO, Moscow, to Brillant 1424. GmbH & Co. Erste Verwaltungs KG, Berlin (a subsidiary of the
associated company Emerging Markets Online Food Delivery Holding S. r.l., Luxembourg).
As of June 30, 2014, 35 associated companies are accounted for using the equity method. The associates have
developed as follows:
Germany Other countries Total
As of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 2 29
Transfers of former fully consolidated subsidiaries . . . . . . . . . . . . . . . . . . . . . . . 1 5 6
Foundations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 1
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 1
As of June 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 8 35
A list of major consolidated subsidiaries of the Group as well as information on selected associates is disclosed
under Item (1).
Accounting and Valuation Methods
The accounting and consolidation principles applied in these consolidated interim financial statements are the
same as those used for the consolidated financial statements as of December 31, 2013.
Other securities classified as current assets are recognized at acquisition cost or, if applicable, at the lower listed
or market prices on the balance sheet date.
Exercising the respective accounting option according to German GAAP the dividend in kind was accounted for
under the book value method.
F-9
The income tax expense for the period was calculated using the estimated annual effective tax rate.
Notes to the Interim Consolidated Balance Sheet
Assets
(1) Fixed financial assets / shareholdings
The development of fixed financial asset during the period is as follows:
Shares in
affiliated
companies
Equity
investments in
associates
Securities held
as fixed assets
Other
participations
in T in T in T in T
As of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . 2,160 361,106 8,316 18,907
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,765 55,349 748 0
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,879 65,719 0 0
Reclassifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319 319 0 0
Write-downs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 0 0 0
As of June 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,717 351,055 9,064 18,907
Selected significant consolidated subsidiaries as of June 30, 2014:
Company / registered office
Share as of
Dec. 31,
2013
Share as of
June 30
2014
Bonnyprints GmbH, Berlin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63.5% 77.1%
Africa Internet Holding GmbH, Berlin
3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.0% 80.0%
Asia Internet Holding S. r.l., Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100%
International Rocket GmbH & Co. KG, Berlin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100%
Helpling Group Holding S. r.l., Luxembourg
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4)
70.9%
Helpling Top-Holding S.C.Sp, Luxembourg
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4)
98.0%
Global Fin Tech Holding S. r.l., Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4)
100%
Digital Services Holding III S. r.l., Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4)
100%
Zencap Global S. r.l., Luxembourg
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A
4)
74.2%
MKC Brillant Services GmbH, Berlin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80.0% 65.0%
Jade 1159. GmbH, Berlin
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68.3% 68.3%
VRB GmbH & Co. B-195 KG, Berlin
1) 2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 99.2%
Kanui Comercio Varejista Ltda., So Paulo . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100%
Jade 1218. GmbH, Berlin
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72.6% 72.6%
VRB GmbH & Co. B-196 KG, Berlin
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97.7% 98.2%
Tricae Comercio Varejista Ltda., So Paulo . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100%
1) including shares held by Bambino 53. VV UG
2) including shares held by Juwel 196. VV UG
3) loss of control on 16
th
July 2014, decrease of share to 33.3%
4) company not consolidated as of 31 December 2013
F-10
Selected associated companies accounted for using the equity method:
Company
Registered
office
Share as of
June 30,
2014
Germany
Africa eCommerce Holding GmbH
1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 51.5%
BGN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 34.1%
Bigfoot GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 25.2%
Cuponation Group GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Munich 50.6%
Hello Fresh GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 29.1%
Home 24 GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 46.8%
Paymill Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 49.6%
Pricepanda Group GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 72.3%
TIN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 51.6%
Westwing Group GmbH
2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 30.3%
Wimdu GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 52.4%
Other countries
Azmalo S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 67.8%
Car Classifieds Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 57.1%
Ecommerce Holding II S. r.l.
3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 59.2%
Emerging Markets Online Food Delivery Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 50.0%
Middle East Internet Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 50.0%
1) indirect equity investment through Africa Internet Holding GmbH, Berlin
2) thereof 2.2 % directly and 28.1% indirectly through Jade 1317. GmbH, Berlin
3) indirect equity investment through Global Fin Tech Holding S. r.l., Luxembourg
(2) Approximation of accumulated losses
In accordance with Section 312 (6) sentence 1 HGB the associates listed below were considered in the
consolidated financial statements of Rocket Internet based on the stand-alone financial statements. These
standalone financial statements do not include losses incurred in subsidiaries of those associates. Therefore, the
following table shows the proportionate share of the net cash outflows of the subsidiaries to indicate an
approximation of the accumulated losses.
cumulative since
foundation until
June 30, 2014
cumulative since
foundation until
Dec. 31, 2013
In the 1st half of
2014
in million in million in million
Africa eCommerce Holding GmbH
1)
. . . . . . . . . . . . . . . . . . . . . . n/a 21 n/a
BGN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 78 6
TIN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 70 10
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 169 17
1) consolidated financial statements of the associate considered for the first time in the 1st half of 2014
The proportionate share of the net cash outflows are determined as the difference between the available cash
from the shareholders contributions until June 30, 2014 and December 31, 2013, respectively, and the cash
balances as of these dates. In our view the amounts calculated in such way are an appropriate approximation of
the accumulated losses. The calculation was based on the shares of Rocket Internet in the associates at both
period ends.
F-11
(3) Issuance of shares by an equity method investee to a third party
Issuance of shares by an associate to a third party is not accounted for as if the Group had sold a proportionate
share of its investment. The Group records a loss associated with the dilution of its investment solely reflecting
the decreased retained ownership percentage. The following table summarizes the amounts of cash received by
associates from issuance of shares to third parties not recognized in the Groups earnings:
Retained
ownerships
as of June 30,
2014
Proceeds
during the
1
st
half of
2014
Proportionate
share of
proceeds
in
million in million
Emerging Markets Online Food Delivery Holding S. r.l. . . . . . . . . . . . . . 50.0% 21 11
Westwing Group GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.3% 33 10
Paymill Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.6% 5 2
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n/a n/a 23
For disclosure purposes the calculation was based on the shares of Rocket Internet in the associates at period end.
(4) Receivables and other assets
As in the previous year, all receivables and other assets are due within one year, except for other assets in the
amount of T 514 (PY: T 342), which have a residual term of more than one year.
Receivables from affiliated companies in the amount of T 13,697 (PY: T 5,914) include trade receivables of
T 2,295 (PY: T 1,284) and loan receivables in the amount of T 11,402 (PY: T 4,630).
Receivables from associates in the amount of T 47,109 (PY: T 22,594) include trade receivables of T 24,865
(PY: T 3,436) and loan receivables in the amount of T 22,244 (PY: T 19,158).
Other assets in the amount of T 6,831 (PY: T 5,265) mainly include tax refund claims of T 3,686
(PY: T 3,154).
Equity and Liabilities
(5) Equity capital
The Companys subscribed capital amounted to 109,800 as of January 1, 2014. Based on a resolution passed at
the shareholders meeting on February 4, 2014, the Companys nominal capital was increased in exchange for
non-cash contribution by 546.00 to 110,346.00.
The shareholders of Rocket Internet are Global Founders GmbH, Emesco AB and AI European Holdings S. r.l.
As of the June 30, 2014, balance sheet date, the fully consolidated subsidiary, Rocket Beteiligungs GmbH, held
own shares in Rocket Internet at the nominal value of 38,597 (35% of total capital).
In May 2014, the shareholders resolved on granting a dividend in kind and, consequently, the Rocket Internet
transferred by way of a separate share transfer agreement shares in two associates to Emesco AB and AI
European Holdings S. r.l., as a dividend in kind. The book value of the transferred shares amounted to
T 37,139. The fair value of the distributed shares amounted to T 153,234. Global Founders GmbH received a
cash dividend of T 286,766.
The subscribed capital amounting to T 110 (before open deduction of treasury shares) corresponds to the
balance sheet item reported in the standalone accounts of the parent company. Capital reserves include the capital
reserves stated in the annual accounts of the parent company as well as the capital contributed by minority
shareholders, which is to be allocated to the shareholders of the parent company.
Revenue reserves include the parent companys revenue reserves as well as the balance sheet results of the
affiliated companies included in consolidation. In addition, the equity capital comprises amounts from the netting
of other consolidation measures.
F-12
(6) Liabilities
In T June 30, 2014 December 31, 2013
Residual term
Secured
by
collateral Total
Residual
term of
up to
1 year Total Type of liability
up to
1 year
more than
5 year
1. Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . 20 0 0 20 23 23
2. Prepayments received on account of orders . . . . . . 301 0 0 301 538 538
3. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,399 0 0 20,399 20,249 20,249
4. Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . 32 0 0 32 14,497 14,497
5. Liabilities to affiliated companies . . . . . . . . . . . . . . 1,053 0 0 1,053 953 953
6. Liabilities to associated companies . . . . . . . . . . . . . 23,950 0 0 23,950 22,420 22,420
7. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,610 0 0 9,072 7,505 8,163
Liabilities to shareholders concern other liabilities in the amount of T 0 (PY: T 14,465) and trade payables of
T 32 (PY: T 32).
Liabilities to affiliated companies outside the scope of consolidation largely comprise trade payables in the
amount of T 739 (PY: T 660) and the remaining amount relates to loan liabilities of T 314 (PY: T 293).
Liabilities to associates mainly relate to loans received (T 21,510; PY: T 20,999) and trade payables (T 2,440;
PY: T 1,421).
Notes to the Interim Consolidated Income Statement
(7) Sales revenues
1st half 2014 1st half 2013
in T % in T %
Sales revenues by segment
eCommerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,903 62 19,526 59
Marketplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,467 2 215 1
FinTech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 0 0 0
Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,593 36 13,227 40
46,982 100 32,968 100
Sales revenues generated from other services primarily concern consulting services provided for associated
companies and non-consolidated affiliated companies.
(8) Other operating income and expenses
Other operating income includes income from deconsolidation of subsidiaries (T 15,665; PY: 0), income from
the disposal of fixed financial assets (T 764; PY: T 4), income from the reversal of provisions (T 752;
PY: T 0) and income from the true-up of written-off receivables (T 42; PY: T 56) .
Other operating expenses include costs for the derecognition and value adjustments of receivables (T 444;
PY: T 2,447) and losses from the disposal of fixed assets (T 63; PY: T 0).
Other Disclosures
(9) Other financial obligations and off-balance-sheet transactions
The Company reports other financial obligations in the amount of T 4,911. In detail, these are obligations for
the following items:
T
Rental and lease agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,799
Purchase commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
4,911
While the Group benefits from financing advantages arising from the rental and lease arrangements (operating
leasing) it must be able to meet its payment obligations at all times.
F-13
(10) Related party transactions
Shareholders who can exercise significant influence on the Rocket Group, associated companies, non-
consolidated subsidiaries and persons that exercise significant influence on the Groups financial and business
policy qualify as related parties. Persons that exercise significant influence on the Groups financial and business
policy comprise all persons in key positions and their close family members. Within the Rocket Group, this
relates to the parent companys managing directors or, following the change in legal form, the members of the
management board and the supervisory board. No transactions at unusual market terms were conducted with
related parties in the 1st half of 2014.
(11) Management board
In 1st half of 2014 the Companys management was comprised of the following members:
Name Position held
Arnt Jeschke Managing Director, Finance
Alexander Kudlich Managing Director, Business Development
Dr. Johannes Bruder Managing Director, Marketing and Products
Following the Companys conversion into a stock corporation (AG) in July 2014, the following management
board members were appointed:
Management board
Name Position held
Oliver Samwer Chief Executive Officer (CEO)
Peter Kimpel Chief Financial Officer (CFO)
Alexander Kudlich Group Managing Director
(12) Number of staff
The average number of staff during the reporting period was as follows:
1st half
2014
1st half
2013
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 280
Other countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,603 857
Total: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,902 1,137
Berlin, August 20, 2014
The Management Board
Oliver Samwer Peter Kimpel Alexander Kudlich
F-14
Rocket Internet GmbH
Audited Consolidated Financial Statements
as of and for the financial year ended December 31, 2013
(prepared in accordance with German GAAP)
(now Rocket Internet AG)
F-15
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Consolidated balance sheet as of 31 December 2013
1 January 2013
EUR k EUR k
Assets
A. Fixed assets
I. Intangible assets
1. Purchased industrial and similar rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543 248
2. Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 670 0
1,213 248
II. Property, plant and equipment
1. Tenant improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 12
2. Plant and machinery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540 393
3. Other equipment, operating and business equipment . . . . . . . . . . . . . . . . . . . . . . 1,725 1,452
4. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 4
2,428 1,861
III. Financial assets
1. Shares in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,160 1,993
2. Equity investments in associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361,106 416,854
3. Securities held as fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,316 6,720
4. Other participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,907 4,996
5. Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 0
390,525 430,564
394,166 432,673
B. Current assets
I. Inventories
1. Raw materials, consumables and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 10
2. Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 842
3. Merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,887 4,608
4. Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380 224
8,535 5,684
II. Receivables and other assets
1. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,673 1,081
2. Receivables from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,914 7,395
3. Receivables from associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,594 26,795
4. Receivables from companies in which a participation is held . . . . . . . . . . . . . . . 25 99
5. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,265 1,754
36,471 37,124
III. Cash in hand, bank balances and checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,422 187,024
482,427 229,831
C. Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 623
D. Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 653
877,419 663,781
F-16
1 January 2013
EUR k EUR k
Equity and liabilities
A. Equity capital
I. Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 103
./. Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 0
67 103
II. Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 462,196 289,034
III. Revenue reserves
Other revenue reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,896 328,489
IV. Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659 342
V. Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,438 23,384
VI. Minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,026 28,559
772,965 622,460
B. Negative consolidation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 0
C. Provisions
1. Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,086 2,934
2. Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,108 5,469
37,194 8,403
D. Liabilities
1. Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 17
2. Prepayments received on account of orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538 76
3. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,249 9,777
4. Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,497 17
5. Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 953 2,167
6. Liabilities to associates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,420 13,520
7. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,163 7,220
thereof for taxes: EUR k 4,087 (PY: EUR k 3,166)
thereof for social security: EUR k 207 (PY: EUR k 97)
66,844 32,793
E. Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329 125
F. Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0
877,419 663,781
F-17
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Consolidated income statement for the fiscal year 2013
EUR k
1. Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,513
2. Decrease in the work in process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515
3. Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,876
thereof income from currency translation EUR k 18
137,874
4. Cost of materials
a) Cost of raw materials, consumables and supplies and of purchased merchandise . . . . . . . . . . 27,712
b) Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,564
5. Personnel expenses
a) Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,485
b) Social security and other pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,955
thereof retirement benefits EUR k 1,093
6. Amortization/depreciation of intangible assets and of property, plant and equipment . . . . . . . . . 1,098
7. Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,785
thereof expenses from currency translation EUR k 233
150,599
8. Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
9. Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,898
10. Other interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654
thereof from affiliated companies EUR k 69
11. Write-downs of financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433
12. Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430
thereof from affiliated companies EUR k 85
199,700
13. Result from ordinary activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186,975
14. Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,294
thereof change in deferred taxes EUR k333
15. Other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 497
12,791
16. Consolidated net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174,185
17. Loss carried forward from previous year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,384
18. Advance dividend pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,574
19. Loss attributable to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,211
20. Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,438
F-18
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Consolidated statement of cash flow for the fiscal year 2013
EUR k
1. Cash flow from operating activities
Consolidated net income (including minority interests in profit and loss) . . . . . . . . . . . . . . . . . . 174,185
+/ Amortization, depreciation and write-downs / write-ups of fixed assets . . . . . . . . . . . . . . . . . . . . 1,532
+/ Increase / decrease in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,791
/+ Income from associated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,898
+/ Other non-cash expenses / income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,557
/+ Gain / loss on disposals of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,286
/+ Increase / decrease in inventories, trade receivables and other assets . . . . . . . . . . . . . . . . . . . . . . 2,827
+/ Increase / decrease in trade payables and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,387
= Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,904
2. Cash flow from investing activities
+ Cash received from disposals of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Cash paid for investments in property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700
Cash paid for investments in intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737
+ Cash received from disposals of fixed financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194,770
Cash paid for investments in fixed financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,050
Cash paid for the acquisition of consolidated companies and other business units . . . . . . . . . . . . 781
+ Cash received in connection with short-term financial management of cash investments . . . . . . 12,425
Cash paid in connection with short-term financial management of cash investments . . . . . . . . . 20,557
= Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,477
3. Cash flow from financing activities
+ Proceeds from issuance of shares to the equity holders of the parent . . . . . . . . . . . . . . . . . . . . . . 159,857
+ Proceeds from minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,672
Dividends paid to equity holders of the parent (advance dividends) . . . . . . . . . . . . . . . . . . . . . . . 80,574
+ Cash received from loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,651
Repayments of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,782
= Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,824
4. Cash and cash equivalents at the end of the period
Change in cash and cash equivalents (subtotal of 1 to 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,397
Changes in cash and cash equivalents due to exchange rates, changes in the basis of
consolidation and valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187,024
Cash and cash equivalents at the end of the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,422
F-19
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F-20
Notes to the Consolidated Financial Statements for Financial Year 2013
Rocket Internet AG
Contents
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-22
Basis of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-22
Accounting and Valuation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-23
Currency Translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-24
Consolidation Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-25
Notes to the Consolidated Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-25
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-25
(1) Fixed assets / shareholdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-25
(2) Approximation of accumulated losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-33
(3) Receivables and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-33
(4) Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
Equity and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
(5) Equity capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
(6) Negative consolidation difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
(7) Deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
(8) Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
(9) Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-34
Notes to the Consolidated Income Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(10) Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(11) Other operating income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
Other Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(12) Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(13) Other financial obligations and off-balance-sheet transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(14) Related party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-35
(15) Notes to the consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
(16) Notes to consolidated statement of equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
(17) Management and management board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
(18) Management remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
(19) Audit fees and consultancy fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-36
(20) Number of staff on an annual average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-37
F-21
General Information
The presented consolidated financial statements were prepared in accordance with German commercial law
provisions (Section 290 et seqq. HGB) applicable to non-listed companies.
Rocket Internet AG, Berlin, (formerly Rocket Internet GmbH), hereinafter referred to as Rocket Internet,
parent company, or Rocket Group prepares the consolidated financial statements for financial year 2013 for
the first time. Previously, the parent company was exempt from the duty to prepare consolidated accounts due to
size-related exemptions pursuant to Section 293 HGB. The consolidated balance sheet includes the prior-year
figures as of the initial consolidation date at the beginning of the Groups financial year, January 1, 2013. The
Company did not disclose the prior-year figures in the consolidated income statement and in the consolidated
cash flow statement.
The consolidated income statement was prepared using the nature of expense method.
In order to improve the transparency of presentation, we aggregated individual items of the consolidated balance
sheet and the consolidated income statement, and classified and explained them separately in these notes to the
financial statements. For the same reason, information on items that are affiliated to other items and thereof-
items is also presented in this context. Unless otherwise indicated, all values are rounded up or down to the
nearest thousand (T) in accordance with a commercial rounding approach, which may result in rounding
differences of +/ one unit.
Accounting for associated companies using the equity method was based on the respective annual financial
statements unless consolidated financial statements were available. Additional disclosures pursuant to
Section 297 (2) Sentence 3 HGB were provided under Item (2).
Basis of consolidation
In addition to Rocket Internet, the consolidated group also comprises 114 other fully consolidated companies.
The consolidated group has developed as follows:
Germany Other countries Total
Included in consolidation as of January 1, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . 61 27 88
Additions in the 2013 financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 20 28
Disposals in the 2013 financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 1 1
Included in consolidation as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . 69 46 115
Addition to the consolidated group in financial year 2013:
Name Registered head office
Addition as a
result of
Asia Internet Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Azmalo S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Bambino 50. V V UG (with limited liability) & Co. Sechste
Verwaltungs KG, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Acquisition
Subgroup with the following subsidiary:
Ecart Services Pakistan (PVT.) Ltd. . . . . . . . . . . . . . . . . . . . . Islamabad Acquisition
Car Classified Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Classifieds Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Easy Taxi (Thailand) Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bangkok Foundation
Easy Taxi Colombia SAS, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bogota Foundation
ECommerce Holding I S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
ECommerce Holding II S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
ECommerce Holding III S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
ECommerce Taxi Middle East S. r.l. . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
ECommerce Taxi Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Jade 1085. GmbH & Co. 44. Verwaltungs KG . . . . . . . . . . . . . . . Berlin Acquisition
Juwel 161. V V UG (with limited liability) & Co. Achte
Verwaltungs KG (formerly:Juwel 190. V V UG (with limited
liability) & Co. Dreizehnte Verwaltungs KG), . . . . . . . . . . . . . Berlin Acquisition
Subgroup with the following subsidiary:
Easy Taxi Servios S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo Acquisition
F-22
Name Registered head office
Addition as a
result of
Juwel 190. V V UG (with limited liability) & Co. Zweite
Verwaltungs KG, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Acquisition
Subgroup with the following subsidiary:
Inversiones Hellofood S de RL de CV . . . . . . . . . . . . . . . . . . Mexico City Acquisition
Juwel 190. V V UG (with limited liability) & Co Zwlfte
Verwaltungs KG, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Acquisition
Subgroup with the following subsidiary:
Hellofood Intermediacao de Negocios Ltda. . . . . . . . . . . . . . So Paulo Acquisition
Juwel 190. V V UG (with limited liability) & Co. 15.
Verwaltungs KG, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Acquisition
Subgroup with the following subsidiary:
Bus Servios de Agendamento Ltda. . . . . . . . . . . . . . . . . . . . So Paulo Acquisition
Lamudi Middle East S. r.l. (ex: Classifieds Middle East Sarl): . . Luxembourg Foundation
Lendico Deutschland GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Foundation
Lendico Holding S.C.Sp. S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Medios de Clasificados S de RL de CV . . . . . . . . . . . . . . . . . . . . . Mexico City Foundation
Middle East Internet Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . Luxembourg Foundation
Rocket Beteiligungs GmbH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin Foundation
Upon initial consolidation of acquisitions during 2013, the assets, liabilities, prepaid and deferred items included
in the consolidated financial statements were remeasured or restated, respectively, within the context of the
purchase price allocation.
Disposals (deconsolidation) in the 2013 financial year:
The liquidation of Yepdoc Servios de Agendamento Ltda., So Paulo, was completed in November 2013.
In accordance with Section 296 (2) HGB, affiliated companies with immaterial business activities are not
included in the consolidated financial statements. CityDeal Management I GmbH, Berlin was not included in the
consolidated financial statements, in accordance with Section 296 (1) No. 1 HGB, as most of the risks and
opportunities associated with this special purpose company, which was established for fiduciary asset
management purposes, are borne by trustors outside the Group. The assets managed by CityDeal Management I
GmbH are mainly financially attributable to the trustors in accordance with Section 298 (1) HGB in conjunction
with 246 Section (1) 2 HGB.
27 domestic and two foreign associated companies are accounted for using the equity method.
The consolidated group and the information on shareholdings are stated under Item (1).
Accounting and Valuation Methods
The consolidated financial statements were prepared in accordance with the following accounting and valuation
methods.
The financial statements of companies included in the consolidated accounts were prepared using uniform
accounting and valuation principles.
The annual financial statements of domestic and foreign associated companies were aligned to the Groups
uniform accounting methods. We applied the book value method when accounting for significant equity
investments in associated companies using the equity method.
Acquired intangible assets classified as fixed assets are stated at acquisition costs and, if subject to wear and
tear, are reported less scheduled amortization in accordance with the respective items useful lives (useful life of
between 3 to 10 years, using the straight-line method). Internally generated intangible assets classified under
fixed assets are not capitalized in accordance with the relevant recognition option. Goodwill from the initial
consolidation of shares is amortized straight-line over a period of five years.
Property, plant and equipment items are stated at acquisition costs and reduced by scheduled depreciation to
the extent depreciable. The respective items are depreciated in accordance with their expected useful lives of
between 3 to 13 years, using the straight line method. Additions to property, plant and equipment are depreciated
on a prorated basis. Low value assets with an individual net value of up to 150 are fully written down in the
year of acquisition.
Shares and securities reported under financial assets are stated at acquisition costs or lower fair values. The item
equity investments in associated companies presented in the additions column of the consolidated
F-23
statement of changes in fixed assets includes the acquisition costs of the acquired shares as well as the equity
capital changes, which correspond to share in the equity of the respective associated company owned by Rocket
Group. The disposals column reflects prorated net losses for the year, earnings effects from ancillary accounts,
dividend distributions and the shares sold. Changes in the allocable, prorated equity capital that are not based on
capital contributions of the Rocket Group and that arise from capital-raising measures conducted at associated
companies are accounted for in the equity value and reported in profit/loss. Non-scheduled write-downs are
presented in the additions column of the consolidated statement of changes in fixed assets under accumulated
amortization/depreciation.
Inventories are stated at the lower of cost or market.
The inventories of raw materials and supplies are capitalized at average cost prices or the lower daily prices as
of the balance sheet date.
Work in process is stated at manufacturing costs on the basis of individual cost calculations. The manufacturing
costs include the minimum components as prescribed under Section 255 (2) HGB and mainly relate to personnel
expenses. In all cases, valuation was at net realizable value, i.e., the cost to complete was deducted from the
expected sales prices.
Merchandise is recognized at acquisition costs or the lower market prices.
Adequate allowances provide for all identifiable inventory valuation risks resulting from slow-moving stock,
reduced usability and lower replacement costs. Adequate provisions are recognized for losses resulting from
supply and purchase commitments.
Receivables and other assets are generally stated at nominal values net of valuation allowances where required
to be reported. Individual value adjustments are recorded if valuation adjustments are required.
Cash is stated at nominal values.
Prepaid expenses comprise payments made that represent expenses for a specified period after the balance sheet
date.
Subscribed capital is reported at nominal value.
Tax provisions and other provisions account for all contingent liabilities. The provisions are stated at the
settlement amount required in accordance with sound business judgment (i.e. including future price and cost).
Provisions with residual terms of more than one year are discounted (if material effect) applying the interest rate
published by Deutsche Bundesbank (German Federal Reserve Bank).
Liabilities were stated at the respective settlement amounts.
Deferred income includes payments received that represent income for a specified period after the balance sheet
date.
To determine deferred taxes arising due to temporary or timing (quasi-permanent) differences between the
carrying amounts of assets, liabilities, prepaid expenses and deferred income in the statutory accounts and their
tax carrying amounts or due to tax loss carry forwards, these differences are valued using the company-specific
tax rates at the time they reverse; the amounts of any resulting tax charge and benefit are not discounted.
Differences due to consolidation procedures in accordance with Sections 300 to 307 HGB are taken into account;
differences arising on the first-time recognition of goodwill or a negative consolidation difference are not
included. Where tax loss carry forwards acquired in connection with the acquisition of subsidiaries are expected
to be offset within the next five years, the option of recognizing deferred tax assets with no effect on net income
until the end of the adjustment period as defined by Sec. 301 (2) Clause 2 HGB in the process of purchase price
allocation was exercised. Deferred tax assets and liabilities are offset. The option pursuant to
Section 274 (1) Clause 2 HGB to recognize net deferred tax assets in excess of deferred tax liabilities was not
exercised.
Currency Translation
As a general rule, foreign currency transactions are stated at the historical rate applicable at the time of initial
recognition.
Non-current foreign currency receivables are stated using the currency selling rate applicable at the date of origin
of the receivable or the lower fair value, using the spot exchange middle rate as of the reporting date (principle of
imparity). Short-term foreign currency receivables (with a remaining term of one year or less) and liquid assets or
other short-term foreign currency assets are translated using the spot exchange middle rate applicable on the
balance sheet date.
F-24
Asset and liability items reported in annual financial statements prepared in foreign currencies were translated
into euros at the spot exchange middle rate applicable as at the balance sheet date, with the exception of equity
capital (subscribed capital, reserves, profit/loss carried forward at historical rates). The items stated in the income
statement are translated into euros using average rates. The resulting translation difference is disclosed in
consolidated equity within Accumulated other comprehensive income under the item Currency translation/
exchange differences.
The item Equity capital difference from currency translation is reversed through profit/loss upon the disposal
of subsidiaries.
Consolidation Principles
The capital of companies acquired before January 1, 2013 was consolidated at the date of initial inclusion in the
consolidated financial statements as of January 1, 2013 using the acquisition method.
The capital of companies that were included in consolidation for the first time following their acquisition/
foundation after January 1, 2013, was consolidated when the respective company became a subsidiary, using the
acquisition method.
The Company made use of the consolidation option (non-inclusion of subsidiaries in the consolidated financial
statements) provided for under Section 296 (1) Clause 1 HGB if agreements between the shareholders result in
ongoing restrictions respecting the exercising of Rocket Internets management rights. These companies were
reported at equity in accordance with the provisions stipulated for associated companies.
For the purpose of capital consolidation, the value stated for the shares attributable to the parent company are
netted with the amount of the subsidiarys equity capital allocable to these shares. The equity capital is stated at
the amount that corresponds to the fair value of the assets, liabilities, accrued and deferred items and special
items to be included in the consolidated financial statements at the consolidation date. Any asset side difference
remaining after netting is reported as goodwill and any remaining debit side difference is reported under the item
Difference from capital consolidation after equity capital. The difference is reversed in the income statement if
the unfavorable development of the Companys future results of operations expected at the time of initial
consolidation has materialized, or it is certain at the balance sheet date that the difference corresponds to a
realized profit.
As a general rule, the date relevant for determining the present value of assets, liabilities, accrued and deferred
items and special items to be included in the consolidated financial statements as well as the relevant capital
consolidation date is the date when the respective company qualifies as a subsidiary.
Changes in the percentage of shares held in subsidiaries that continue to be fully consolidated are stated as
transactions between shareholders of the Group with neutral effect on profit or loss.
Receivables and liabilities, sales, expenses and income as well as intercompany results within the consolidated
group were eliminated.
Associated companies were measured on the basis of the respective companys most recent annual financial
statements insofar as no consolidated financial statements of the associated company were available at the time
of preparation. If consolidated financial statements of the associated company were available, they served as the
basis for measurement.
Intercompany profits and losses from trade with associates were not eliminated due to immateriality.
Notes to the Consolidated Balance Sheet
Assets
(1) Fixed assets / shareholdings
The development of fixed assets, including amortization, depreciation and write-downs for the financial year is
presented in the consolidated statement of changes in fixed assets.
Write-downs in the amount of T 9,085 mainly concern associated companies in the amount of T 8,552 (stated
as income from associated companies) and write-downs of shares in affiliated companies outside the scope of
consolidation in the amount of T 433 (stated as write-downs of financial assets).
Capital consolidation of the newly acquired shares in Easy Taxi Servios S.A. led to a difference in the amount
of T 867 that was capitalized as goodwill. Goodwill is straight-line amortized over a useful life of five years.
The customer base in the amount of T 111 capitalized from the acquisition of the subsidiary, Hellofood
Intermediacao de Negocios Ltda., is amortized over a useful life of four years. The Company did not report any
disposals of goodwill in the 2013 financial year as a result of deconsolidation measures.
F-25
Insignificant subsidiaries not included in consolidation are reported under the balance sheet item Shares in
affiliated companies. The balance sheet items Securities held as fixed assets and other Other participations
include shares in companies with participation quotas of less than 20%.
Consolidated Group and shareholdings
No. Company Registered office
Share
as a
%
via-
No.
1 Rocket Internet AG (parent company) . . . . . . . . . . . . . . . . . . . . . . Berlin
Fully consolidated subsidiaries
Germany
2 Ads Myanmar UG (with limited liability) & Co. KG . . . . . . . . . . Berlin 100% 9, 11
3 Africa Internet Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 80.0% 1
4 AIH Subholding No. 10 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
5 AIH Subholding No. 11 UG (with limited liability) & Co. KG . . . Berlin 97.6% 3, 11
6 AIH Subholding No. 12 UG (with limited liability) & Co. KG . . . Berlin 99.5% 3, 11
7 AIH Subholding No. 8 UG (with limited liability) & Co. KG . . . . Berlin 99.6% 3, 11
8 Bambino 106. V V UG (with limited liability) . . . . . . . . . . . . . . . Berlin 100% 1
9 Bambino 108. V V UG (with limited liability) . . . . . . . . . . . . . . . Berlin 100% 1
10 Bambino 50. V V UG (with limited liability) & Co. Sechste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 72, 11
11 Bambino 53. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 1
12 Blanko 7. GmbH & Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.9% 26, 11
13 Bonnyprints GmbH (formerly: Ecards and more GmbH) . . . . . . . Berlin 63.5% 1
14 Brillant 1390. GmbH & Co. Verw. KG . . . . . . . . . . . . . . . . . . . . . Berlin 99.8% 33, 11
15 Clickbus Germany GmbH (formerly: Bambino 85. V V UG (with
limited liability)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
16 CityDeal Management II UG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
17 House Myanmar UG (with limited liability) & Co. KG . . . . . . . . Berlin 100% 9, 11
18 International Rocket GmbH & Co. KG . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
19 Jade 1085. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
20 Jade 1085. GmbH & Co. 44. Verwaltungs KG . . . . . . . . . . . . . . . Berlin 100% 18, 11
21 Jade 1085. GmbH & Co. Fnfzehnte Verwaltungs KG . . . . . . . . . Berlin 100% 18, 11
22 Jade 1085. GmbH & Co. Zweite Verwaltungs KG . . . . . . . . . . . . Berlin 100% 18, 11
23 Jade 1159. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 68.3% 61, 11
24 Jade 1217. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 89.0% 1, 11
25 Jade 1218. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 72.6% 61, 11
26 Jade 1221. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 71.1% 61, 11
27 Jade 1238. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 73.8% 1, 11
28 Jade 1265. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 91.2% 1, 11
29 Jade 1317. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 92.0% 1
30 Jade 1318. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 63.0% 1, 11
31 Jade 1344. GmbH & Co. Verw. KG . . . . . . . . . . . . . . . . . . . . . . . . Berlin 87.5% 32, 11
32 Jade 1353. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 86.5% 61, 11
33 Jade 1366. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 87.1% 61, 11
34 Jade 940. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
35 Juwel 131. UG (with limited liability) & Co. Erste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 8, 11
36 Juwel 161. V V UG (with limited liability) & Co. Vierte
Verwaltungs KG (formerly: Juwel 190. V V UG (with limited
liability) & Co. Achte Verwaltungs KG) . . . . . . . . . . . . . . . . . . . . Berlin 99.7% 57, 11
37 Juwel 190. V V UG (with limited liability) & Co. 18.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 59, 11
38 Juwel 161. V V UG (with limited liability) & Co. Achte
Verwaltungs KG (formerly:Juwel 190. V V UG (with limited
liability) & Co. Dreizehnte Verwaltungs KG) . . . . . . . . . . . . . . . . Berlin 100% 57, 11
F-26
No. Company Registered office
Share
as a
%
via-
No.
39 Juwel 190. V V UG (with limited liability) & Co. Dritte
Verw. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
40 Juwel 161. V V UG (with limited liability) & Co. Erste
Verwaltungs KG (formerly: Juwel 190. V V UG (with limited
liability) & Co. Erste Verwaltungs KG) . . . . . . . . . . . . . . . . . . . . . Berlin 100% 57, 11
41 Juwel 190. V V UG (with limited liability) & Co. Fnfte
Verw. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
42 Juwel 190. V V UG (with limited liability) & Co. 15.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 58, 11
43 Juwel 190. V V UG (with limited liability) & Co. 9.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.7% 57, 11
44 Juwel 190. V V UG (with limited liability) & Co. 19.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
45 Juwel 161. V V UG (with limited liability) & Co. Dritte
Verwaltungs KG (formerly: Juwel 190. V V UG (with limited
liability) & Co. Siebte Verwaltungs KG) . . . . . . . . . . . . . . . . . . . . Berlin 99.6% 57, 11
46 Juwel 190. V V UG (with limited liability) & Co. 17.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 59, 11
47 Juwel 190. V V UG (with limited liability) & Co. Verwaltungs
KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 61
48 Juwel 190. V V UG (with limited liability) & Co. Vierte
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
49 Juwel 190. V V UG (with limited liability) & Co. 10.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.3% 57, 11
50 Juwel 190. V V UG (with limited liability) & Co. Zweite
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
51 Juwel 190. V V UG (with limited liability) & Co Zwlfte
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 60, 11
52 Juwel 193. V V UG (with limited liability) & Co. Erste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 7, 11
53 Juwel 193. V V UG (with limited liability) & Co. Dritte
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 98.5% 5, 11
54 Juwel 200. V V UG (with limited liability) & Co. 4.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 28, 11
55 Lendico Deutschland GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 97
56 Lendico Global Service GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 97
57 LIH Subholding No. 1 UG (with limited liability) & Co. KG . . . . Berlin 89.6% 61, 11
58 LIH Subholding No. 2 UG (with limited liability) & Co. KG . . . . Berlin 100% 61, 11
59 LIH Subholding No. 4 UG (with limited liability) & Co. KG . . . . Berlin 100% 61, 11
60 LIH Subholding No. 5 UG (with limited liability) & Co. KG . . . . Berlin 100% 61, 11
61 MKC Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 80.0% 1
62 Motors Myanmar UG (with limited liability) & Co. KG . . . . . . . . Berlin 100% 9, 11
63 Pricepanda Group GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 82.8% 1, 11
64 R 2 International Internet GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 59.2% 1
65 Rocket Asia GmbH & Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
66 Rocket Beteiligungs GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
67 VRB GmbH & Co. B-195 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 23, 11
68 VRB GmbH & Co. B-196 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 97.7% 25, 11
69 Work Myanmar UG (with limited liability) & Co. KG . . . . . . . . . Berlin 100 9, 11
Other countries
70 Airu Produtos Criativos Ltda. (formerly: Airu Comercio
Varejista Ltda.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo 100% 12
71 Asia Internet Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
72 Azmalo S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 80.0% 1, 11
73 Bus Servios de Agendamento Ltda. . . . . . . . . . . . . . . . . . . . . . . . So Paulo 100% 71
74 Car Classifieds Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 80.0% 71, 11
F-27
No. Company Registered office
Share
as a
%
via-
No.
75 Classifieds Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 80.0% 71, 11
76 Easy Taxi (Thailand) Co. Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bangkok 100% 21
77 Easy Taxi Colombia SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bogota 100% 45
78 Easy Taxi Peru SAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lima 100% 36
79 Easy Taxi Servios S.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo 94.7% 36
80 Ecart Services Pakistan (PVT.) Ltd. . . . . . . . . . . . . . . . . . . . . . . . Islamabad 100% 10
81 ECommerce Holding I S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 90.9% 1, 11
82 ECommerce Holding II S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1, 11
83 ECommerce Holding III S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
84 ECommerce Taxi Asia S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 80.0% 47, 11
85 ECommerce Taxi Middle East S. r.l. . . . . . . . . . . . . . . . . . . . . . Luxembourg 74.6% 82, 11
86 Foodpanda S.A.S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bogota 100% 45
87 Hellofood Intermediacao de Negocios Ltda. . . . . . . . . . . . . . . . . So Paulo 100% 18
88 Internet Services Netherlands B.V. . . . . . . . . . . . . . . . . . . . . . . . . Amsterdam 100% 18
89 Internet Services Poland sp zoo . . . . . . . . . . . . . . . . . . . . . . . . . . Warsaw 100% 18
90 Inversiones Easytaxi Chile Ltda
(formerly: Inversiones Tucany Chile Ltda.) . . . . . . . . . . . . . . . . .
Santiago de
Chile 100% 51
91 Inversiones Hellofood Peru S.A.C. . . . . . . . . . . . . . . . . . . . . . . . . Lima 100% 39
92 Inversiones Hellofood S de RL de CV . . . . . . . . . . . . . . . . . . . . . Mexico City 100% 67
93 Inversiones Pidiendo Chile Ltda . . . . . . . . . . . . . . . . . . . . . . . . . . Santiago de
Chile 100% 82
94 Inversiones Tucany C.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Caracas 100% 43
95 Kanui Comercio Varejista Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo 100% 67
96 Lamudi Middle East S. r.l.
(formerly: Classifieds Middle East S. r.l.) . . . . . . . . . . . . . . . . . Luxembourg 100% 100
97 Lendico Holding S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 90.7% 82, 11
98 Medio de Clasificados SAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bogota 100% 39
99 Medios de Clasificados, S. de R.L. de C.V. . . . . . . . . . . . . . . . . . Mexico City 100% 39
100 Middle East Internet Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
101 MKC Brazil Servios de Adminstracao Ltda. . . . . . . . . . . . . . . . So Paulo 100% 39
102 Moonshine eServices Private Limited . . . . . . . . . . . . . . . . . . . . . Gurgaon
(IND) 100% 35
103 Rocket Brasil Novos Negocios e Participacoes Ltda. . . . . . . . . . . So Paulo 100% 18
104 Rocket eServices Ltd. (UK) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . London 100% 18
105 Rocket eServices Private Limited (India) . . . . . . . . . . . . . . . . . . . New Delhi 100% 18
106 Rocket Internet Malaysia Sdn. Bhd. . . . . . . . . . . . . . . . . . . . . . . . Kuala Lumpur 100% 18
107 Rocket Internet PTE. Ltd. (Singapore) . . . . . . . . . . . . . . . . . . . . . Singapore 100% 18
108 Rocket Russia o.o.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Moscow 100% 18
109 R-SC Internet Services Egypt . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cairo 100% 18
110 R-SC Internet Services Hong Kong Ltd. . . . . . . . . . . . . . . . . . . . . Hong Kong 100% 18
111 R-SC Internet Services Korea Ltd. . . . . . . . . . . . . . . . . . . . . . . . . Seoul 100% 42
112 Servicios de Taxi en Linea S. DE R.L. DE C.V. . . . . . . . . . . . . . Mexico City 100% 18
113 Silveroak Internet Services Portugal, Unipessoal Ltda. . . . . . . . . Lisbon 100% 18
114 Tricae Comercio Varejista Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo 100% 68
115 Zocprint Servios Graficos Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . So Paulo 100% 31
Other subsidiaries
1)
Germany
116 AIH Subholding No. 1 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
117 AIH Subholding No. 13 UG (with limited liability) &
Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 3, 11
118 AIH Subholding No. 14 UG (with limited liability) &
Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 3, 11
119 AIH Subholding No. 15 UG (with limited liability) &
Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.6% 3, 11
120 AIH Subholding No. 16 UG (with limited liability) &
Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 3, 11
121 AIH Subholding No. 17 UG (with limited liability) &
Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 3, 11
F-28
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122 AIH Subholding No. 2 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
123 AIH Subholding No. 3 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
124 AIH Subholding No. 4 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
125 AIH Subholding No. 5 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
126 AIH Subholding No. 6 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
127 AIH Subholding No. 7 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 10
128 AIH Subholding No. 9 UG (with limited liability) & Co. KG . . . Berlin 100% 3, 11
129 Bambino 107. V V UG (with limited liability) . . . . . . . . . . . . . . . Berlin 100% 1
130 Bambino 109. V V UG (with limited liability) . . . . . . . . . . . . . . . Berlin 100% 1
131 Bambino 110. V V UG (with limited liability) . . . . . . . . . . . . . . . Berlin 100% 1
132 Bambino 50. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 1
133 Bambino 52. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 1
134 Bambino 54. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 1
135 Bambino 55. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 1
136 Bambino 61. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
137 Bambino 79. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
138 Bambino 80. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
139 Bambino 81. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
140 Bambino 82. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
141 Bambino 83. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
142 Bambino 84. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
143 Bambino 91. V V UG (with limited liability) . . . . . . . . . . . . . . . . Berlin 100% 18
144 Carmudi GmbH (formerly: Brillant 1253. GmbH) . . . . . . . . . . . . Berlin 100% 71
145 Brillant 1259. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
146 Brillant 1390. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 33
147 Brillant 1422. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
148 Brillant 1423. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
149 CD-Rocket Holding UG (with limited liability) . . . . . . . . . . . . . . Berlin 100% 1
150 CityDeal Management UG (with limited liability) . . . . . . . . . . . . Berlin 100% 1
151 Jade 1085. GmbH & Co. 42 Verwaltungs KG . . . . . . . . . . . . . . . Berlin 100% 18, 11
152 Jade 1085. GmbH & Co. Achte Verwaltungs KG . . . . . . . . . . . . Berlin 100% 18, 11
153 Jade 1085. GmbH & Co. Achtzehnte Verwaltungs KG . . . . . . . . Berlin 100% 18, 11
154 Jade 1085. GmbH & Co. Dreiundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
155 Jade 1085. GmbH & Co. Erste Verwaltungs KG . . . . . . . . . . . . . Berlin 100% 18, 11
156 Jade 1085. GmbH & Co. Fnfundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
157 Jade 1085. GmbH & Co. Neunundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
158 Jade 1085. GmbH & Co. Sechste Verw. KG . . . . . . . . . . . . . . . . Berlin 100% 18, 11
159 Jade 1085. GmbH & Co. Siebenundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
160 Jade 1085. GmbH & Co. Vierundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
161 Jade 1085. GmbH & Co. Vierzigste Verwaltungs KG . . . . . . . . . Berlin 100% 18, 11
162 Jade 1085. GmbH & Co. Zwanzigste Verwaltungs KG . . . . . . . . Berlin 100% 18, 11
163 Jade 1085. GmbH & Co. Zweiundzwanzigste
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18, 11
164 Jade 1085. GmbH & Co. Zwlfte Verwaltungs KG . . . . . . . . . . . Berlin 100% 18, 11
165 Jade 1154. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 172
166 Jade 1183. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
167 Jade 1231. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
168 Jade 1232. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
169 Jade 1234. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
170 Jade 1236. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
171 Jade 1237. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
172 Jade 1240. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
173 Jade 1241. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
F-29
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174 Jade 1242. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
175 Jade 1246. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 79.7% 1
176 Jade 1247. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
177 Jade 1279. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
178 Jade 1319. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.4% 1
179 Jade 1356. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
180 Jade 1368. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
181 Jade 1369 GmbH & Co. Erste Verwaltungs KG
(formerly: Jade 1365. GmbH & Co. Fnfte
Verwaltungs KG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 63, 11
182 Jade 1369. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 63
183 Jade 1371. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
184 Jade 1372. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
185 Jade 1373. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
186 Jade 1374. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
187 Jade 1375. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
188 Jade 1410. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 23
189 Jade 1411. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 25
190 Jade 1413. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 26
191 Juwel 131. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 8
192 Juwel 150. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 9
193 Juwel 154. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 196
194 Juwel 155. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
195 Juwel 156. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
196 Juwel 157. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 130
197 Juwel 161. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
198 Juwel 167. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
199 Juwel 169. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
200 Juwel 182. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
201 Juwel 185. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 1
202 Juwel 190. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 61
203 Juwel 190. VV UG & Co. 21. Verwaltungs KG . . . . . . . . . . . . . . Berlin 100% 7, 212
204 Juwel 190. V V UG (with limited liability) & Co. 34.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 216, 11
205 Juwel 190. V V UG (with limited liability) & Co. 35.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 216, 11
206 Juwel 193. V V UG (with limited liability) . . . . . . . . . . . . . . . . . Berlin 100% 3
207 Juwel 193. V V UG (with limited liability) & Co. 20.
Verwaltungs KG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 7, 11
208 Juwel 202. V V UG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 33
209 Lendico Connect GmbH (formerly: Brillant 1762. GmbH) . . . . . Berlin 100% 56
210 LIH Subholding No. 10 UG (with limited liability) & Co. KG . . Berlin 100% 61, 11
211 LIH Subholding No. 11 UG (with limited liability) & Co. KG . . Berlin 100% 61, 11
212 LIH Subholding No. 3 UG (with limited liability) & Co. KG . . . Berlin 100% 61, 11
213 LIH Subholding No. 6 UG (with limited liability) & Co. KG . . . Berlin 100% 61, 11
214 LIH Subholding No. 7 UG (with limited liability) & Co. KG . . . Berlin 100% 61, 11
215 LIH Subholding No. 8 UG (with limited liability) & Co. KG . . . Berlin 100% 61, 11
216 LIH Subholding No. 9 UG (with limited liability) & Co. KG . . . Berlin 100% 61, 11
217 Motors Cambodia UG (with limited liability) & Co. KG . . . . . . . Berlin 100% 129, 11
218 Platin 775. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
219 Platin 776. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
220 Platin 777. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
221 Rocket AT GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
222 Rocket China GmbH & Co. KG . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
223 Rocket Internet Munich GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
224 Rocket Latin America GmbH & Co. KG . . . . . . . . . . . . . . . . . . . Berlin 100% 18
225 Rocket Middle East GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 1
226 Rocket Russia II KG (formerly: VRB B-105) . . . . . . . . . . . . . . . Berlin 100% 18
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No.
227 Tekcor 2. V V UG (with limited liability) . . . . . . . . . . . . . . . . . . Berlin 100% 18
228 VRB GmbH & Co. B-101 (Einhunderteins) KG . . . . . . . . . . . . . Berlin 100% 1
229 VRB GmbH & Co. B-118 (Einhundertachtzehn) KG . . . . . . . . . Berlin 100% 24, 11
230 VRB GmbH & Co. B-147 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
231 VRB GmbH & Co. B-153 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
232 VRB GmbH & Co. B-154 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
233 VRB GmbH & Co. B-155 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
234 VRB GmbH & CO. B-169 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 100% 18
235 VRB GmbH & Co. B-179 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.1% 63, 11
236 VRB GmbH & Co. B-186 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.1% 63, 11
237 VRB GmbH & Co. B-187 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.1% 63, 11
238 VRB GmbH & Co. B-188 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.1% 63, 11
239 VRB GmbH & Co. B-189 KG . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 99.1% 63, 11
Other countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
240 CIS Internet Holding (GP) S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
241 Classifieds (GP) S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 72
242 Classifieds Asia Extra S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 72
243 Clickbus Czech s.r.o (formerly: Rocket s.r.o.) . . . . . . . . . . . . . . . Prague 100% 18
244 Clickbus Poland sp. z o.o. (formerly: RSC Internet Services
Poland sp. z o.o.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Warsaw 100% 141
245 Digital Services Holding I S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
246 Digital Services Holding III S. r.l. . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
247 Easy Taxi Service Philippines, Inc. . . . . . . . . . . . . . . . . . . . . . . . Makati City 100% 18
248 ECommerce Holding IV S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
249 Ecommerce Pay Holding S. r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
250 ECV Price (Malaysia) SDN BHD . . . . . . . . . . . . . . . . . . . . . . . . . Petaling
Jaya 100% 239
251 GG Fun Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Birkirkara
(M) 100% 244
252 GP Management Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Birkirkara
(M) 99.9% 1
253 International Rocket Company Ltd. . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
254 International Rocket Corporate Ltd. . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
255 International Rocket Group Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
256 International Rocket Hellas EPE . . . . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
257 International Rocket Holding Ltd. . . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
258 International Rocket Ventures Ltd. . . . . . . . . . . . . . . . . . . . . . . . . Road Town
(VG) 100% 18
259 Internet Bes Hizmet Teknolojileri Limited Sirketi . . . . . . . . . . . . Istanbul 100% 165, 11
260 Inversiones Bazaya C.A (Venezuela) . . . . . . . . . . . . . . . . . . . . . . Caracas 100% 18
261 Lendico Denmark S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
262 Lendico France S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
263 Lendico Italy S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
264 Lendico Netherlands S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
265 Lendico Norway S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
266 Lendico Poland S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
267 Lendico Russia S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
268 Lendico Shelf S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
269 Lendico Spain S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
270 Lendico Sweden S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
271 Lendico Turkey S.C.Sp. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 97
F-31
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272 Place Mniej sp. z o.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Warsaw 87.5% 64
273 Real Estate Classifieds Asia Extra S. r.l. . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 72
274 Rocket Bulgaria EOOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sofia 100% 18
275 Rocket Denmark ApS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Copenhagen 100% 18
276 Rocket International S.R.L. Argentina . . . . . . . . . . . . . . . . . . . . . . Buenos Aires 100% 18
277 Rocket Internet Australia Pty Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . Victoria 100% 18
278 Rocket Internet Chile Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Santiago 100% 18
279 Rocket Internet Italy S.r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milan 100% 18
280 Rocket Internet Japan K.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tokyo 100% 18
281 Rocket Internet Scandinavia AB . . . . . . . . . . . . . . . . . . . . . . . . . . . Sundsvall (S) 100% 18
282 Rocket Internet South Africa (Proprietary) . . . . . . . . . . . . . . . . . . . Pretoria 100% 18
283 Rocket Internet SRL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bucharest 100% 18
284 Rocket Korea Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Seoul 100% 18
285 Rocket Serbia d.o.o. Beograd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Beograd 100% 18
286 Rocket Slovakia s.r.o. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bratislava 100% 18
287 Rocket US Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delaware 100% 18
288 R-SC Diamond eServices (Thailand) Co. Ltd . . . . . . . . . . . . . . . . . Bangkok 100% 18
289 R-SC Internet Services Canada Inc. . . . . . . . . . . . . . . . . . . . . . . . . Vancouver 100% 18
290 R-SC Internet Services Chile Ltda. . . . . . . . . . . . . . . . . . . . . . . . . . Santiago 100% 18
291 R-SC Internet Services Colombia SAS . . . . . . . . . . . . . . . . . . . . . . Bogota 100% 18
292 R-SC Internet Services Finland OY . . . . . . . . . . . . . . . . . . . . . . . . Helsinki 100% 18
293 R-SC Internet Services France SAS . . . . . . . . . . . . . . . . . . . . . . . . Paris 100% 18
294 R-SC Internet Services Luxembourg S.. r.l. . . . . . . . . . . . . . . . . . Luxembourg 100% 18
295 RSC Internet Services Malaysia Sdn. Bhd . . . . . . . . . . . . . . . . . . . Kuala Lumpur 100% 18
296 R-SC Internet Services Nigeria Ltd. . . . . . . . . . . . . . . . . . . . . . . . . Lagos 100% 18
297 R-SC Internet Services Norway AS . . . . . . . . . . . . . . . . . . . . . . . . Oslo 100% 18
298 R-SC Internet Services South Africa (PTY) Ltd . . . . . . . . . . . . . . . Pretoria 100% 18
299 R-SC Internet Services Spain, S.L.U. . . . . . . . . . . . . . . . . . . . . . . . Madrid 100% 18
300 RSC Internet Services Switzerland GmbH . . . . . . . . . . . . . . . . . . . Zurich 100% 18
301 R-SC Internet Services Taiwan Co. Ltd . . . . . . . . . . . . . . . . . . . . . Taiwan 100% 18
302 R-SC Internet Services Ukraine LLC . . . . . . . . . . . . . . . . . . . . . . . Kiev 100% 18
303 R-SC Vietnam Company Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hanoi 100% 18
304 RTE Internet Services Switzerland GmbH (formerly: Wimdu
Switzerland GmbH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Zurich 100% 18
305 Shop Bangladesh Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Bangladesh 100% 18
306 Wimdu Israel Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tel Aviv 100% 18
307 Wimdu Italy S.r.l. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Milan 100% 18
308 Wimdu Netherlands B. V. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amsterdam 100% 18
309 Wimdu Poland sp. z o.o. (now: Lendico Poland sp. z o.o.) . . . . . . Warsaw 100% 18
310 Zencap Global S. r.l. (formerly: Digital Services Holding II
S. r.l.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Luxembourg 100% 1
Associated companies included in consolidation using the
equity method
Germany
311 Affinitas GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 21.9% 1
312 Affinitas Phantom Share GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 34.4% 1
3)
313 Africa eCommerce Holding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 51.5% 3
2), 4)
314 Beauty Trend Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 59.8% 1, 11
2)
315 BGN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 41.4% 1, 11
4)
316 Bigfoot GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 33.3% 1
317 Classmarkets GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 52.8% 1
2)
318 Comparamor GmbH i.l.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 44.7% 1
2) 5)
319 Cuponation Group GmbH (formerly: Dropgifts GmbH) . . . . . . . . Munich 50.6% 1, 11
2)
320 Emerging Markets Asia eCommerce Holding GmbH . . . . . . . . . . Berlin 89.0% 1, 11
2)
321 Goodbeans GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 34.0% 1
F-32
No. Company Registered office
Share
as a
%
via-
No.
322 Hello Fresh GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 36.0% 1, 11
323 Home24 GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 46.8% 1, 11
324 Jade 1158. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 68.2% 1
2)
325 Jade 1223. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 73.9% 1, 11
2)
326 Mondstein 284. GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Munich 29.8% 1
327 Netzoptiker GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Limburg a.d.L. 42.8% 1
328 Payleven Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 57.7% 1, 11
2)
329 Paymill Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 63.8% 1
2)
330 Plinga GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 34.5% 1, 64
331 PTH Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 80.0% 1, 11
2)
332 TIN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 53.5% 1
2), 4)
333 Toptarif Internet GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 21.4% 1
334 Upside Shopping GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 47.6% 1
5)
335 Webpotentials GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 45.2% 1
336 Westwing Group GmbH (formerly: Jade 1290. GmbH) . . . . . . . . . Berlin 33.4% 1, 29
337 Wimdu GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Berlin 52.5% 1
2)
Other countries
338 Emerging Markets Online Food Delivery Holding S. r.l. . . . . . . . Luxembourg 60.7% 1, 11
2), 4)
339 Enuygun Com Internet Bilgi Hizmetleri Teknoloji ve
Ticaret AS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Istanbul 48.8% 64
3)
1) In accordance with Section 296 (2) not fully consolidated due to minor importance (excluding additional ca. 130 dormant companies).
2) No controlling influence due to contractual design or legal framework.
3) Non-application of at equity accounting due to minor importance.
4) The companys consolidated financial statements as of December 31, 2013 were not available at the time of preparation.
5) in liquidation.
(2) Approximation of accumulated losses
In accordance with Section 312 (6) sentence 1 HGB the associates listed below were considered in the
consolidated financial statements of Rocket Internet based on the stand-alone financial statements. These stand-
alone financial statements do not include losses incurred in subsidiaries of those associates. Therefore, the
following table shows the proportionate share of the net cash outflows of the subsidiaries to indicate an
approximation of the accumulated losses.
cumulative since
foundation until
Dec. 31, 2013
in million
cumulative since
foundation until
Dec. 31, 2012 in
million
In financial year
2013
Africa eCommerce Holding GmbH . . . . . . . . . . . . . . . . . . . . . . . 21 7 14
BGN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 59 19
TIN Brillant Services GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 37 33
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 103 66
The proportionate share of the net cash outflows are determined as the difference between the available cash
from the shareholders contributions until December 31, 2013 and 2012, respectively, and the cash balances as of
these dates. In our view the amounts calculated in such way are an appropriate approximation of the accumulated
losses. The calculation was based on the shares of Rocket Internet in the associates at both year-ends.
(3) Receivables and other assets
As in the previous year, all receivables and other assets are due within one year, except for other assets in the
amount of T 342 (PY: T 6), which have a residual term of more than one year.
Receivables from affiliated companies in the amount of T 5,914 (PY: T 7,395) include trade receivables of
T 1,284 (PY: T 1,421) and loan receivables in the amount of T 4,630 (PY: T 5,974).
Receivables from associates in the amount of T 22,594 (PY: T 26,795) include trade receivables of T 3,591
(PY: T 14,565) and loan receivables in the amount of T 19,158 (PY: T 12,326).
Other assets in the amount of T 5,265 (PY: T 1,754) mainly include tax refund claims of T 3,154 (PY:
T 1,237).
F-33
(4) Deferred tax assets
Deferred tax assets result from the elimination of intercompany profits and losses concerning inventories and
from elimination of intercompany receivables and liabilities.
A surplus of deferred taxes, if any, resulting from differences in the annual financial statements of consolidated
companies is not capitalized in accordance with the relevant recognition option.
Equity and Liabilities
(5) Equity capital
The Companys subscribed capital amounted to 103,386 as of January 1, 2013. Based on a resolution passed at
the shareholders meeting on August 8, 2013, the Companys nominal capital was increased by 6,414 to
109,800.
The shareholders of Rocket Internet are Global Founders GmbH (formerly European FoundersFund GmbH),
Emesco AB and AI European Holdings S. r.l. As of December 31, 2013, the fully consolidated company,
Rocket Beteiligungs GmbH, held own shares in Rocket Internet at the nominal value of 43,050 (39% of total
capital).
After the balance sheet date the Companys nominal capital was increased by 546.00 to 110,364.00 on the
basis of a resolution passed at the shareholders meeting on February 4, 2014.
The subscribed capital amounting to T 110 (before open deduction of own shares (treasury stock)) corresponds
to the balance sheet item reported in the annual financial statements of the parent company. Capital reserves of
T 462,197 include the capital reserves of T 370,543 stated in the annual accounts of the parent company as
well as the capital contributed by minority shareholders in the amount of T 91,654, which is to be allocated to
the shareholders of the parent company.
Retained earnings include the parent companys revenue reserves as well as the balance sheet results of the
affiliated companies included in consolidation. In addition, the equity capital comprises amounts from the netting
of other consolidation measures.
(6) Negative consolidation difference
Capital consolidation of the newly acquired shares in Bambino 50. V V UG (with limited liability) & Co. Sechste
Verwaltungs KG led to a liability-side difference in the amount of T 86. The difference is reversed in the
income statement if the companys earnings develop as unfavorably as expected at the time when the shares were
acquired.
(7) Deferred tax liabilities
Deferred taxes are determined using the tax rates that are expected to apply at the assumed realization date based
on the legal provisions at that time in the individual countries. German companies are subject to a corporation tax
rate of 15%. Taking into account a 5.5% solidarity surcharge and the trade tax payable on profits generated in
Germany, the total tax rate is 30%. The tax rates applicable outside of Germany range between 11% and 31%.
An amount of T 1 deferred tax liabilities result from temporary differences.
(8) Other provisions
Other provisions in the amount of T 25,108 (PY: T 5,469) include T 19,160 attributable to call options not
exercised and compensation agreements. In addition, the provisions were largely recorded to account for supplier
invoices outstanding, holidays not taken, special bonuses and returns.
(9) Liabilities
In T December 31, 2013 January 1, 2013
Residual term
Secured
by
collateral Total
Residual
term of
up to
1 year Total Type of liability
up to
1 year
more than
5 year
1. Liabilities to banks . . . . . . . . . . . . . . . . . . . . . . . . . 23 0 0 23 17 17
2. Prepayments received on account of orders . . . . . . 538 0 0 538 76 76
3. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,249 0 0 20,249 9,777 9,777
4. Liabilities to shareholders . . . . . . . . . . . . . . . . . . . . 14,497 0 0 14,497 17 17
5. Liabilities to affiliated companies . . . . . . . . . . . . . . 953 0 0 953 2,167 2,167
6. Liabilities to associated companies . . . . . . . . . . . . . 22,420 0 0 22,420 13,520 13,520
7. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,505 658 0 8,163 7,220 7,220
F-34
Liabilities to shareholders concern other liabilities in the amount of T 14,465 (PY: T 0) and trade payables of
T 32 (PY: T 17).
Liabilities to associates mainly relate to loans received (T 20,999; PY: T 12,931) and trade payables (T 1,421;
PY: T 585).
Liabilities to affiliated companies outside the scope of consolidation largely comprise trade payables in the
amount of T 607 (PY: T 203) and the remaining amount relates to loans of T 293 (PY: T 1,964).
Notes to the Consolidated Income Statement
(10) Sales revenues
2013
in T %
Sales revenues by segment
eCommerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,908 62
Marketplaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,427 2
Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,178 36
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,513 100
Sales revenues generated from other services primarily concern consulting services provided for associated
companies and non-consolidated affiliated companies.
Of the total consolidated sales revenues, 60% were generated in Latin America, 33% in Germany and 7% in the
rest of the world.
(11) Other operating income and expenses
Other operating income includes income from the disposal of financial assets (T 63,873), income from
deconsolidation (T 104), income from the true-up of written-off receivables (T 81) and income from the
reversal of provisions (T 5).
Other operating expenses comprise amounts from call option obligations (T 11,430), the derecognition and
impairment of receivables (T 3,638), losses from the disposal of fixed assets (T 44) and further off-period
expenses (T 417).
Other Disclosures
(12) Contingencies
As of the December 31, 2013 balance sheet date, the Company reports off-balance sheet contingencies from
rental guarantees totaling T 304 in favor of an associated company. Given the economic situation of the
associated company, we consider the utilization risk of the guarantees to be low.
(13) Other financial obligations and off-balance-sheet transactions
In addition to the contingencies, the Company reports other financial obligations in the amount of T 5,802, of
which T 92 concern non-consolidated affiliates. In detail, these are obligations for the following items:
T
Rental and lease agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,635
Purchase commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
5,802
While the Group benefits from financing advantages arising from the rental and lease arrangements (operating
leasing) it must be able to meet its payment obligations at all times.
(14) Related party transactions
Related parties are shareholders with significant influence on the Rocket Group, associated companies, non-
consolidated subsidiaries and individuals that exercise significant influence on the Groups financial and business
policy. Persons that exercise significant influence on the Groups financial and business policy comprise all
F-35
individuals in key positions and their close family members. Within the Rocket Group, this relates to the parent
companys managing directors or, following the change in legal form, the members of the management board
and the supervisory board. No transactions at unusual market terms were conducted with related parties in the
2013 financial year.
(15) Notes to the consolidated statement of cash flows
Payments received from equity capital additions in the amount of T 16,672 concern minority shareholders. No
distribution pay-outs were made to minority shareholders in financial year 2013.
As in the previous year, cash and cash equivalents comprise the balance sheet items cash on hand, bank credit
balances and cheques.
Significant non-cash investing and financing transactions as well as business transactions included the exchange
of shares in the associated company, Billpay GmbH against shares in Wonga Limited, and the exchange of shares
in Zalando SE against own shares (treasury stock) of Rocket Internet. Exercising the option under the accounting
principles for exchange of assets both transactions were accounted for applying the book value method.
(16) Notes to the schedule of consolidated equity
According to German law, resolutions concerning distribution pay-outs can only be passed on the basis of the
equity capital stated in Rocket Internets annual accounts as adopted by the shareholders meeting. The
consolidated equity earned in the amount of T 293,334 as of December 31, 2013, is fully available for
distribution to the shareholders.
(17) Management and management board
In financial year 2013, the Companys management was comprised of the following members:
Name Position held
Arnt Jeschke Managing Director, Finance
Alexander Kudlich Managing Director, Business Development
Dr. Johannes Bruder Managing Director, Marketing and Products
Jan Wilmking Managing Director, Project Management
(March 1, 2013 through September 27, 2013)
Following the Companys conversion into a stock corporation (AG) in July 2014, the following management
board members were appointed:
Management board
Name Position held
Oliver Samwer Chief Executive Officer (CEO)
Peter Kimpel Chief Financial Officer (CFO)
Alexander Kudlich Group Managing Director
(18) Total management remuneration
The remuneration paid to the parent companys management for performing its functions at the parent company
and the subsidiaries amounted to T 586.
Management members also received a total of 359 shares in the Companys subsidiaries in financial year 2013.
The value of these shares, which was determined on the basis of the intrinsic value at the time the shares were
granted, amounted to T 0.
No advances and loans were granted to management members. There were no contingencies in favor of
management members at the balance sheet date.
(19) Audit fees and consultancy fees
Total fees charged for the financial year by the Groups annual auditor (Ernst & Young GmbH
Wirtschaftsprfungsgesellschaft) amount to 1.1 million. The fees exclusively concern the audit of financial
statements.
F-36
(20) Number of staff on an annual average
The average number of staff during the financial year was as follows:
Number
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Other countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985
Total: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,282
Berlin, July 28, 2014
The Management Board
Oliver Samwer Peter Kimpel Alexander Kudlich
F-37
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F-38
The following auditors report (Besttigungsvermerk) has been issued in accordance with 322 German
Commercial Code (Handelsgesetzbuch) on the consolidated financial statements and the group management
report (Konzernlagebericht) of Rocket Internet AG, Berlin as of and for the fiscal year ended December 31,
2013. The group management report is neither included nor incorporated by reference in this Prospectus.
Auditors Report
We have audited the consolidated financial statements prepared by Rocket Internet AG, Berlin, comprising the
balance sheet, the income statement, the notes to the consolidated financial statements, the cash flow statement,
and the statement of changes in equity, together with the group management report for the fiscal year from
January 1, 2013 to December 31, 2013. The preparation of the consolidated financial statements and the group
management report in accordance with German commercial law is the responsibility of the Companys
management. Our responsibility is to express an opinion on the consolidated financial statements and the group
management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with Sec. 317 HGB
[Handelsgesetzbuch: German Commercial Code] and German generally accepted standards for the audit of
financial statements promulgated by the Institut der Wirtschaftsprfer [Institute of Public Auditors in Germany]
(IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting
the presentation of the net assets, financial position and results of operations in the consolidated financial
statements in accordance with [German] principles of proper accounting and in the group management report are
detected with reasonable assurance. Knowledge of the business activities and the economic and legal
environment of the Group and expectations as to possible misstatements are taken into account in the
determination of audit procedures. The effectiveness of the accounting-related internal control system and the
evidence supporting the disclosures in the consolidated financial statements and the group management report are
examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual
financial statements of those entities included in consolidation, the determination of entities to be included in
consolidation, the accounting and consolidation principles used and significant estimates made by management,
as well as evaluating the overall presentation of the consolidated financial statements and the group management
report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with the legal
requirements and give a true and fair view of the net assets, financial position and results of operations of the
Group in accordance with [German] principles of proper accounting. The group management report is consistent
with the consolidated financial statements and as a whole provides a suitable view of the Groups position and
suitably presents the opportunities and risks relating to future development.
Berlin, July 30, 2014
Ernst & Young GmbH
Wirtschaftsprfungsgesellschaft
sgd. Klug sgd. Beckers
Wirtschaftsprfer Wirtschaftsprfer
(German Public Auditor) (German Public Auditor)
F-39
Audited Unconsolidated Financial Statements of
Rocket Internet GmbH as of and for the financial year ended December 31, 2013
(prepared in accordance with German GAAP)
F-40
Rocket Internet GmbH, Berlin
Balance Sheet as of December 31, 2013
12/31/2013 12/31/2012

Assets
A. Fixed assets
I. Intangible assets
1. Concessions, industrial property rights and similar rights and assets
and licenses in such rights and assets . . . . . . . . . . . . . . . . . . . . . . . . . . 98,139.51 108,004.00
98,139.51 108,004.00
II. Property, plant and equipment
1. Other equipment, operating and business equipment . . . . . . . . . . . . . . 698,027.00 945,247.00
698,027.00 945,247.00
III. Financial assets
1. Shares in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,429,425.40 42,666,354.56
2. Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,839,817.82 48,642,610.61
3. Securities held as fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,316,183.34 6,720,116.00
90,585,426.56 98,029,081.17
91,381,593.07 99,082,332.17
B. Current assets
I. Inventories
1. Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,182,179.90 2,597,420.71
1,182,179.90 2,597,420.71
II. Receivables and other assets
1. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,267.06 29,448.70
2. Liabilities from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . 9,422,719.14 16,900,420.54
3. Receivables from companies in which a participation is held . . . . . . . 922,063.82 4,761,923.78
4. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,062,469.12 315,304.93
(thereof due in more than one year 7,980.00; PY: 7,980.00)
11,411,519.14 22,007,097.95
III. Cash in hand, bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 385,440,718.59 101,118,525.35
398,034,417.63 125,723,044.01
C. Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,239.02 93,422.61
489,547,249.72 224,898,798.79
F-41
12/31/2013 12/31/2012

Equity and Liabilities
A. Equity capital
I. Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,800.00 103,386.00
II. Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370,542,576.15 210,691,756.91
III. Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,569,170.32 0.00
437,221,546.47 210,795,142.91
B. Provisions
1. Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,004,002.01 2,769,836.00
2. Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,933,303.67 4,419,135.08
31,937,305.68 7,188,971.08
C. Liabilities
1. Prepayments received on account of orders . . . . . . . . . . . . . . . . . . . . . . . 197,696.57 0.00
2. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,814,152.53 1,227,369.63
3. Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,023,628.92 967,387.20
4. Liabilities in companies in which a participation is held . . . . . . . . . . . . . 4,394.10 946.87
5. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,310,743.45 4,674,131.78
(thereof from taxes 2,192,092.93; PY: 2,204,135.54)
(thereof resp. social security 2,325.89; PY: 20,028.26)
(thereof due in up to one year 17,100,905.78; PY: 4,182,164.96)
20,350,615.57 6,869,835.48
D. Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,782.00 44,849.32
489,547,249.72 224,898,798.79
F-42
Rocket Internet GmbH
Income Statement for the Period from January 1 through December 31, 2013
2013 2012

1. Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,031,350.38 24,335,582.34
2. Increase / decrease (-) in the work in process
inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502,749.38 2,371,800.10
3. Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . .
(thereof income from currency translation 570.59;
PY: 591.96)
187,475,006.46 176,788,750.72
4. Cost of materials
a) Cost of materials and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846,457.09 60,746.18
b) Cost of purchased services . . . . . . . . . . . . . . . . . . . . 7,195,907.66 10,348,074.09
8,042,364.75
5. Personnel expenses
a) Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . 22,910,349.29 14,145,035.00
b) Social security and other pension costs . . . . . . . . . . .
(thereof retirement benefits 29,192.40;
PY: 28,453.48)
2,072,809.84 1,899,444.07
24,983,159.13
6. Amortization/depreciation
a) Amortization/depreciation of intangible assets and
of property, plant and equipment . . . . . . . . . . . . . . . 434,073.02 371,397.62
b) Amort./depreciation of current assets in excess of
what is usual in the corporation . . . . . . . . . . . . . . . . 912,491.43 0.00
1,346,564.45
7. Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . .
(thereof expenses from currency translation 6.24;
PY: 0.00)
17,362,503.69 11,293,426.88
8. Income from participations . . . . . . . . . . . . . . . . . . . . . . .
(thereof from affiliated companies 0.00;
PY: 218,103,512.51)
306,261.50 218,103,512.51
9. Other interest and similar income . . . . . . . . . . . . . . . . . .
(thereof from affiliated companies 48,636.95;
PY: 81,672.91)
432,684.64 248,420.03
10. Write-down on financial assets . . . . . . . . . . . . . . . . . . . . 3,136,231.83 3,083,415.14
11. Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . 2,914.43 16,866.80
12. Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . 158,868,815.32 380,629,659.92
13. Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,725,494.45 2,501,229.49
14. Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . 147,143,320.87 378,128,430.43
15. Profit carried forward from previous year . . . . . . . . . . . 0.00 91,249,419.26
16. Withdrawals from capital reserves . . . . . . . . . . . . . . . . . 0.00 1,409,858.10
17. Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,574,150.55 470,787,707.79
18. Unappropriated retained earnings . . . . . . . . . . . . . . . 66,569,170.32 0.00
F-43
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
As of December 31, 2013
Rocket Internet GmbH
GENERAL INFORMATION
Rocket Internet GmbH is a medium-sized corporation within the meaning of Section 267 (2) HGB.
The annual financial statements for the financial year under review were prepared in accordance with the
provisions stipulated for merchants in the German Commercial Code (Section 242 et seqq. HGB) and the
supplementary regulations for corporations (Section 264 et seqq. HGB). In addition to these regulations, the
provisions of the German Limited Liability Companies Act (GmbHG) were observed.
The type of expenditure format pursuant to Section 275 (2) HGB was used to present the income statement.
The financial year corresponds to the calendar year.
In preparing the annual financial statements, the Company made use of size-dependent simplifications (Section
288 HGB).
ACCOUNTING AND VALUATION METHODS
The accounting and valuation methods applied comply with German Commercial Code provisions (Sections 238
to 263 HGB). In addition, the Company observed the supplementary provisions concerning the accounting and
valuation methods to be applied by corporations.
Intangible assets acquired from third-parties are recognized at acquisition costs less scheduled straight-line
amortization, to the extent that they were subject to wear and tear.
Property, plant and equipment are stated at acquisition or manufacturing costs net of scheduled straight-line
depreciation (to the extent depreciable).
Scheduled amortization/depreciation is based on the respective assets expected useful lives. The reported
intangible assets are written down over a period of between 3 to 10 years. A useful life of between 3 to 13 years
is assumed with respect to operating and business equipment.
Movable fixed assets with acquisition costs of more than 150 but not exceeding 1,000 were included in a
collective item for the years from 2008 to 2010. The assets were written down over five years on a pro rata
temporis basis.
Since 2011, movable fixed assets involving values of up to 410 have been written off in full in the year of
acquisition.
Shares in affiliated companies, long-term equity investments and long-term securities are stated at acquisition
costs or the lower fair value if permanent impairment is assumed.
Work in process is recognized at manufacturing costs taking loss-free valuation into account. The manufacturing
costs include the minimum components as prescribed under Section 255 (2) HGB and mainly relate to personnel
expenses.
Receivables and other assets are generally stated at nominal values unless valuation adjustments are required to
be reported. In such case, individual valuation adjustments are recorded.
Liquid assets are reported at nominal amounts.
As a general rule, foreign currency transactions are stated at the historical rate applicable at the time of initial
recognition.
Long-term foreign currency receivables are stated using the currency selling rate applying at the data of origin of
the receivable or the lower fair value, using the spot exchange middle rate prevailing on the reporting date
(principle of imparity). Short-term foreign currency receivables (with a remaining term of one year or less) and
liquid assets or other short-term foreign currency assets are translated using the spot exchange middle rate
applicable on the balance sheet date.
Prepaid expenses include payments that represent expenses for a specified period after the balance sheet date.
Subscribed capital is reported at nominal value.
Provisions were stated at the settlement amount necessary when applying sound business judgment.
F-44
Liabilities were reported at the respective settlement amounts.
Deferred income includes payments received that represent income for a specified period after the balance sheet
date.
Long-term foreign currency liabilities are stated using the currency buying rate applying at the date of origin of
the liability or the higher reporting date value, using the spot exchange middle rate applicable on the reporting
date (principle of imparity). Short-term foreign currency liabilities (with a remaining term of one year or less) are
translated using the spot exchange middle rate applicable on the balance sheet date.
Deferred taxes are recognized to account for differences in the commercial balance sheet and tax balance sheet
items to the extent that these are expected to reverse in later financial years. Deferred tax assets and deferred tax
liabilities are netted. In the event of an asset surplus of deferred taxes as at the balance sheet date, the
capitalization option pursuant to Section 274 (1) Clause 2 HGB is not exercised.
NOTES TO INDIVIDUAL BALANCE SHEET ITEMS
The development and classification of individual fixed asset items are presented in the schedule of fixed assets
which also provides disclosure of amortization/depreciation during the financial year.
The receivables maturities are shown in the following schedule of receivables (prior-year values are presented in
brackets):
Total up to 1 year 1 to 5 years
more than
5 years
T T T T
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.27 4.27 0.00 0.00
(29.45) (29.45)
Receivables from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . 9,422.72 9,422.72 0.00 0.00
(16,900.42) (16,900.42)
Receivables from companies in which an equity investment is
held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922.06 922.06 0.00 0.00
(4,761.92) (4,761.92)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,062.47 1,054.49 7.98 0.00
(315.31) (307.33) (7.98)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,411.52 11,403.54 7.98 0.00
(22,007.10) (21,999.12) (7.98)
Receivables from affiliated companies in the amount of T 9,422.72 (PY: T 16,900.42) include trade
receivables of T 1,766.98 (PY: T 9,414.25) and loan receivables of T 7,655.74 (PY: T 7,486.17).
Receivables from companies in which a participation is held in the amount of T 922.06 (PY: T 4,761.92)
include trade receivables in the amount of T 891.51 (PY: T 3,300.94) and loan receivables of T 30.55 (PY:
T 1,460.98).
The subscribed capital amounts to T 109.80 as of the balance sheet date and is fully paid-in. As of the balance
sheet date, Rocket Beteiligungs GmbH holds shares at the nominal value of T 43.05 in Rocket Internet GmbH.
None of the shareholders of Rocket Internet GmbH is required to prepare consolidated financial statements
pursuant to Section 290 HGB. Consequently, Rocket Internet GmbH is not included in any consolidated financial
statements. Rocket Internet GmbH prepared consolidated financial statements for the first time as of
December 31, 2013.
Unappropriated retained earnings developed as follows:
T
As of: December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Net income for the year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,143.32
Advance dividends paid to the shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80,574.15)
As of: December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,569.17
Other provisions where set up in the amount of T 19,933.30, of which T 19,159.90 were recorded for expenses
related to call options that were not yet exercised and compensation agreements as of December 31, 2013.
F-45
The liabilities maturities are shown in the following schedule of liabilities (prior-year values are presented in
brackets):
Liabilities/residual term Total up to 1 year 1 to 5 years
more than
5 years
T T T T
Prepayments received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197.70 197.70 0.00 0.00
(0.00) (0.00) (0.00) (0.00)
Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,814.15 1,814.15 0.00 0.00
(1,227.37) (1,227.37)
Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . 1,023.63 1,023.63 0.00 0.00
(967.39) (967.39)
Liabilities to companies in which an equity investment is held . . 4.39 4.39 0.00 0.00
(0.95) (0.95) 0.00
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,310.75 17,100.91 209.84 0.00
(4,674.13) (4,182.16) (491.97)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,350.62 20,140.78 209.84 0.00
(6,869.84) 6,377.87 491.97
Trade payables include liabilities to shareholders in the amount of T 31.98 (in the previous year, the disclosure
in the amount of T 17,13 was made under liabilities to affiliated companies).
Liabilities to affiliated companies in the amount of T 1,023.63 (PY: T 967.39) include trade payables in the
amount of T 100.70 (PY: T 41.71) and loan payables of T 922.93 (PY: T 925.68).
Liabilities to companies in which an equity investment is held in the amount of T 4.39 (PY: T 0.95) include
trade payables in the amount of T 4.03 (PY: T 0.95) and loan payables of T 0.36 (PY: T 0.00).
Other liabilities in the amount of T 17,310.75 (PY: T 4,674.13) are mainly comprised of liabilities to
shareholders in the amount of T 14,465.29 (PY: T 0.00) and tax liabilities of T 2,192.09 (PY: T 2,204.14).
CONTINGENCIES
The following contingencies in terms of Section 251 HGB that were not reported in the balance sheet existed as
of the reporting date:
Contingency Total
thereof to
affiliated companies
thereof collateralized by
real estate liens or
other collateral
in T in T in T
Rental guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.00 304.00 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304.00 304.00 0.00
We consider the probability of utilization of the rental guarantees to be low. We do not have any discernible
indications that would necessitate a different assessment.
OTHER FINANCIAL OBLIGATIONS
In addition, the Company states other financial obligations in terms of Section 285 HGB as of the reporting date:
Total
thereof to
affiliated companies
thereof collateralized
by real estate liens or
other collateral
in T in T in T
Rental obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,789.76 0.00 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,789.76 0.00 0.00
NOTES TO INDIVIDUAL INCOME STATEMENT ITEMS
Profit/loss on ordinary activities was impacted negatively by taxes on income in the amount of T 11,725.49
(PY: T 2,501.23) in the financial year under review.
The Company reports off-period expenses in the amount of T 16,37 (PY: T 100,29) which relate to operating
costs and insurance. Non-scheduled depreciation in the amount of T 3,136.23 (PY: T 3,083.42) is due to
permanent impairment of financial assets.
F-46
LIST OF SHAREHOLDINGS
The Company directly holds at least 20% of the shares in the following companies:
Name
Registered head
office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
(in ) (in )
Affinitas GmbH . . . . . . . . . . Berlin 21.93% 12/31/2013 11,881,038.26 3,098,944.95
Affinitas Phantom Share
GmbH . . . . . . . . . . . . . . . Berlin 34.35% 12/31/2012 6,019.32 18,980.68
Africa Internet Holding
GmbH . . . . . . . . . . . . . . . Berlin 80.00% Founded in
2012 AFS are
not available
Asia Internet Holding
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
Azmalo S..r.l. . . . . . . . . . . . Luxembourg 79.59% Founded in
2013 AFS are
not available
Bambino 106. VV UG . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 107. VV UG . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 108. VV UG . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 109. VV UG . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 110. VV UG . . . . Berlin 100.00% 12/31/2012 2,319.12 2,819.12
Bambino 50. V V UG (with
limited liability) . . . . . . . Berlin 100.00% 12/31/2011 1,367.91 1,867.91
Bambino 52. V V UG (with
limited liability) . . . . . . . Berlin 100.00% 12/31/2011 3,862.09 4,362.09
Bambino 53. V V UG (with
limited liability) . . . . . . . Berlin 100.00% 12/31/2011 21,474.81 5,243.70
Bambino 54. V V UG (with
limited liability) . . . . . . . Berlin 100.00% 12/31/2012 1,363.85 1,170.44
Bambino 55. V V UG (with
limited liability) . . . . . . . Berlin 100.00% 12/31/2012 5,851.61 3,187.00
Beauty Trend Holding
GmbH . . . . . . . . . . . . . . . Berlin 59.06% 12/31/2012 22,401,572.72 2,469,879.93
BGN Brillant Services
GmbH . . . . . . . . . . . . . . . Berlin 40.40% Founded in
2012 AFS are
not available
Bigfoot GmbH . . . . . . . . . . . Berlin 33.27% 12/31/2012 302,647,065.45 893,369.71
Brillant 1259. GmbH . . . . . . Berlin 100.00% 12/31/2012 30,842.42 595.58
Brillant 1422. GmbH . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Brillant 1423. GmbH . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
F-47
Name
Registered head
office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
(in ) (in )
CD-Rocket Holding UG
(with limited liability) . . . Berlin 100.00% 12/31/2012 3,212.09 2,357.61
CIS Internet Holding (GP)
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
CityDeal Management I
GmbH . . . . . . . . . . . . . . . Berlin 66.60% 12/31/2012 9,968,413.30 4,687,946.34
CityDeal Management II
UG . . . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2012 1,970.02 2,333.33
CityDeal Management
UG . . . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2012 5,972.65 2,807.90
Classmarkets GmbH . . . . . . Berlin 52.84% 12/31/2012 456,286.21 46,724.04
Comparamor GmbH i.L. . . . Berlin 44.66% 12/31/2011 28,544.26 2,832.46
Cuponation Group GmbH
(ehem. Dropgifts
GmbH) . . . . . . . . . . . . . . Berlin 44.72% 12/31/2012 10,359,464.90 5,165,475.28
Digital Services Holding I
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
Digital Services Holding II
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00%
Founded in
2013 AFS are
not available
Digital Services Holding III
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
Bonnyprints GmbH (ehem.
Ecards and more
GmbH) . . . . . . . . . . . . . . Berlin 63.46% 12/31/2013 35,175.15 227,089.31
ECommerce Holding I
S..r.l. . . . . . . . . . . . . . . . Luxembourg 68.18% Founded in
2013 AFS are
not available
ECommerce Holding II
S..r.l. . . . . . . . . . . . . . . . Luxembourg 83.46% Founded in
2013 AFS are
not available
ECommerce Holding III
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
ECommerce Holding IV
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00%
Founded in
2013 AFS are
not available
Ecommerce Pay Holding
S..r.l. . . . . . . . . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
Emerging Markets Asia
eCommerce Holding
GmbH . . . . . . . . . . . . . . . Berlin 88.60% 12/31/2012 2,784,795.15 16,868.05
F-48
Name
Registered head
office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
(in ) (in )
Emerging Markets Online
Food Delivery Holding
S..r.l. . . . . . . . . . . . . . . . Luxembourg
60.38% Founded in
2013 AFS are
not available
Goodbeans GmbH . . . . . . . . Berlin 33.95% 12/31/2012 27,104.42 821,170.61
GP Management Limited
New Co. . . . . . . . . . . . . Malta 99.92% 12/31/2011 2,935.00 3,175.00
Hello Fresh GmbH . . . . . . . Berlin 35.97% 12/31/2012 4,823,771.56 1,592,588.94
Home24 GmbH . . . . . . . . . . Berlin 46.65% 12/31/2012 40,820,001.82 60,519,392.76
International Rocket
GmbH & Co. KG . . . . . . Berlin 100.00% 12/31/2012 263,748.40 14,012,389.75
Jade 1085. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 84,788.44 9,199.73
Jade 1158. GmbH . . . . . . . . Berlin 68.17% 12/31/2012 9,554,419.92 28,572.14
Jade 1183. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 16,231.31 5,763.69
Jade 1217. GmbH . . . . . . . . Berlin 88.56% 12/31/2012 2,506,666.42 43,952.14
Jade 1223. GmbH . . . . . . . . Berlin 73.80% 12/31/2012 17,003.55 5,501,000.65
Jade 1231. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 500,071.79 523,262.69
Jade 1232. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 137,380.28 160,422.84
Jade 1234. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 18,303.88 4,695.71
Jade 1236. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 19,272.26 4,068.78
Jade 1237. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 19,730.84 3,616.55
Jade 1238. GmbH . . . . . . . . Berlin 73.69% 12/31/2012 405,828.55 5,116,326.79
Jade 1240. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 65,263.82 33,825.95
Jade 1241. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 13,521.88 10,172.02
Jade 1242. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 17,995.98 5,517.87
Jade 1246. GmbH . . . . . . . . Berlin 79.69% 12/31/2012 13,454.34 4,228.09
Jade 1247. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 27,766.40 1,451.11
Jade 1265. GmbH . . . . . . . . Berlin 88.86% 12/31/2012 4,790.48 18,446.16
Jade 1279. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 21,456.59 2,396.41
Jade 1317. GmbH . . . . . . . . Berlin 91.97% 12/31/2011 46,900.50 864.50
Jade 1318. GmbH . . . . . . . . Berlin 62.92% 12/31/2012 2,492,531.06 31,436.19
Jade 1319. GmbH . . . . . . . . Berlin 99.42% 12/31/2012 20,720.07 3,420.43
Jade 1356. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 20,937.98 3,220.81
Jade 1368. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 1,393,323.54 6,564.76
Jade 1371. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 21,882.58 3,117.42
Jade 1372. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 23,556.61 1,443.39
Jade 1373. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 23,649.17 1,350.83
Jade 1374. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 23,588.92 1,411.08
Jade 1375. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 23,685.43 1,314.57
Jade 940. GmbH . . . . . . . . . Berlin 100.00% 12/31/2012 9,720.39 25,902.03
Juwel 155. VV UG . . . . . . . Berlin 100.00% 12/31/2012 9,526.50 10,026.50
Juwel 156. VV UG . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 161. VV UG . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 167. VV UG . . . . . . . Berlin 100.00% 12/31/2012 2,028.66 2,528.66
Juwel 169. VV UG . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 182. VV UG . . . . . . . Berlin 100.00% 12/31/2012 2,004.47 2,504.47
Juwel 185. VV UG . . . . . . . Berlin 100.00% 12/31/2012 2,189.27 2,689.27
F-49
Name
Registered head
office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
(in ) (in )
Middle East Internet
Holding S..r.l. . . . . . . . . Luxembourg 100.00% Founded in
2013 AFS are
not available
MKC Brillant Services
GmbH . . . . . . . . . . . . . . . Berlin 80.00% Founded in
2012 AFS are
not available
Mondstein 284. GmbH . . . . Munich 29.75% 12/31/2012 551,424.43 11,643.44
Netzoptiker GmbH . . . . . . . Limburg a.d.L. 42.75% 12/31/2012 205,918.26 890,164.43
Payleven Holding GmbH . . Berlin 53.43% 12/31/2012 8,417,697.00 5,609,229.79
Paymill Holding GmbH . . . Berlin 63.75% 12/31/2012 1,346,723.74 1,371,723.74
Platin 775. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 25,410.61 410.61
Platin 776. GmbH . . . . . . . . Berlin 100.00% 12/31/2011 25,000.00 0.00
Platin 777. GmbH . . . . . . . . Berlin 100.00% 12/31/2012 25,429.29 429.29
Plinga GmbH . . . . . . . . . . . . Berlin 34.47% 12/31/2012 1,188,828.41 1,960,561.20
Pricepanda Group GmbH . . Berlin 71.92% 12/31/2012 160,235.86 964,675.99
PTH Brillant Services
GmbH . . . . . . . . . . . . . . . Berlin 76.00% Founded in
2012 AFS are
not available
R2 International Internet
GmbH . . . . . . . . . . . . . . . Berlin 59.22% 12/31/2011 1,888,246.89 4,593.01
Rocket Beteiligungs
GmbH . . . . . . . . . . . . . . . Berlin 100.00% Founded in
2013 AFS are
not available
Rocket Internet Munich
GmbH . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2012 142,327.62 118,160.62
Rocket Middle East
GmbH . . . . . . . . . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
TIN Brillant Services
GmbH . . . . . . . . . . . . . . . Berlin 53.50% Founded in
2012 AFS are
not available
Toptarif Internet GmbH . . . Berlin 21.39% 12/31/2013 1,442,650.09 354,300.65
Upside Shopping GmbH . . . Berlin 47.60% in liquidation
VRB GmbH & Co. B-101
(einhunderteins) KG . . . . Berlin 100.00% 12/31/2013 8,911.05 757.19
Webpotentials GmbH . . . . . Berlin 45.16% 12/31/2013 168,474.35 25,051.25
Wimdu GmbH . . . . . . . . . . . Berlin 52.29% 12/31/2012 18,572,403.96 12,861,489.90
In addition, there are approximately 200 indirect equity investments at second-tier, third-tier and lower tier levels
for which no information is available on the amount of Rocket Internet GmbHs direct stake or on relevant
financial information, respectively.
F-50
Managing Directors
Last name First name Position held
Jeschke Arnt Managing Director
Finance
Kudlich Alexander Managing Director
Business Development
Dr. Bruder Johannes Managing Director
Marketing and Products
Wilmking Jan Managing Director
Project Management
(March 1, 2013 to September 27, 2013)
In financial year 2013, the Management received remuneration in the amount of T 585.82. In the previous year,
the Management received remuneration in the amount of T 6,604, of which T 6,257 relate to the fair value of
subscription rights that were granted to Managing Directors that had in the meantime left the Company.
OTHER DISCLOSURES
Parent company
In accordance with Section 285 No. 14 HGB, the name and registered head office of the parent company is
as follows:
European Founders Fund GmbH
Luisenstrae 14
80331 Munich
Employees
The Companys number of staff in terms of Section 267 (5) HGB is 233 (prior year: 238).
SIGNING OF THE ANNUAL FINANCIAL STATEMENTS FOR 2013
Berlin, May 16, 2014
Dr. Johannes Bruder Arnt Jeschke Alexander Kudlich
F-51
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F-52
The following auditors report (Besttigungsvermerk) has been issued in accordance with 322 German
Commercial Code (Handelsgesetzbuch) on the annual financial statements and the management report
(Lagebericht) of Rocket Internet GmbH, Berlin as of and for the fiscal year ended December 31, 2013. The
management report is neither included nor incorporated by reference in this Prospectus.
Auditors Report
We audited the annual financial statements, comprising the balance sheet, the income statement and the notes to
the financial statements, together with the bookkeeping system and the management report of Rocket Internet
GmbH, Berlin, for the business year from January 1, 2013 through December 31, 2013. Maintenance of the
books and records and the preparation of the annual financial statements and management report in accordance
with German commercial law are the responsibility of the Companys Managing Directors. Our responsibility is
to express an opinion on the annual financial statements, together with the bookkeeping system and the
management report, based on our audit.
We conducted our audit of the annual financial statements in accordance with Section 317 HGB
(Handelsgesetzbuch: German Commercial Code) and German generally accepted standards for the audit of
financial statements promulgated by the Institut der Wirtschaftsprfer (Institute of Public Auditors in Germany)
(IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting
the presentation of the net assets, financial position and results of operations in the annual financial statements in
accordance with [German] principles of proper accounting and in the management report are detected with
reasonable assurance. Knowledge of the business activities and the economic and legal environment of the
Company and expectations as to possible misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the
disclosures in the books and records, the annual financial statements and the management report are examined
primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles
used and significant estimates made by the Companys Managing Directors as well as evaluating the overall
presentation of the annual financial statements and management report. We believe that our audit provides a
reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion and based on the findings of our audit, the annual financial statements comply with the legal
provisions and provide a true and fair view of the net assets, financial position and results of operations of the
Company in accordance with [German] principles of proper accounting. The management report is consistent
with the annual financial statements and as a whole provides a suitable view of the Companys position and
suitably presents the opportunities and risks of future development.
Berlin, June 4, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft
sgd. Angelika Kraus sgd. ppa. Katharina Woythe
Wirtschaftsprferin Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
F-53
Audited Unconsolidated Financial Statements of
Rocket Internet GmbH as of and for the financial year ended December 31, 2012
(prepared in accordance with German GAAP)
F-54
Rocket Internet GmbH, Berlin
Balance Sheet as of December 31, 2012
12/31/2012 12/31/2011

Assets
A. Fixed assets
I. Intangible assets
1. Concessions, industrial property rights and similar rights and assets
and licenses in such rights and assets . . . . . . . . . . . . . . . . . . . . . . . . . . 108,004.00 44,855.00
108,004.00 44,855.00
II. Property, plant and equipment
1. Other equipment, operating and business equipment . . . . . . . . . . . . . . 945,247.00 242,855.00
945,247.00 242,855.00
III. Financial assets
1. Shares in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,666,354.56 78,308,435.25
2. Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,642,610.61 9,217,584.15
3. Securities held as fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,720,116.00 0.00
98,029,081.17 87,526,019.40
99,082,332.17 87,813,729.40
B. Current assets
I. Inventories
1. Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,597,420.71 225,620.61
2,597,420.71 225,620.61
II. Receivables and other assets
1. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,448.70 41,414.28
2. Receivables from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . 16,900,420.54 94,520,569.08
3. Receivables from companies in which a participation is held . . . . . . . 4,761,923.78 2,068,386.78
4. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,304.93 1,833,714.39
(thereof due in more than one year 7,980.00; PY: 7,980.00)
22,007,097.95 98,464,084.53
III. Cash in hand, bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,118,525.35 8,019,756.84
125,723,044.01 106,709,461.98
C. Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,422.61 3,175.80
224,898,798.79 194,526,367.18
F-55
12/31/2012 12/31/2011

Equity and Liabilities
A. Equity capital
I. Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,386.00 28,301.00
II. Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,691,756.91 58,776,699.00
III. Profit carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 40,539,327.20
IV. Unappopriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 50,710,092.06
210,795,142.91 150,054,419.26
B. Provisions
1. Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,769,836.00 1,939,527.00
2. Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,419,135.08 490,602.76
7,188,971.08 2,430,129.76
C. Liabilities
1. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,227,369.63 321,615.00
2. Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967,387.20 41,196,752.02
3. Liabilities to companies in which a participation is held . . . . . . . . . . . . . 946.87 0.00
4. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,674,131.78 523,451.14
(thereof from taxes 2,204,135.54; PY: 115,761.36)
(thereof resp. social security 20,028.26; PY: 16,252.43)
(thereof due in up to one year 4,182,164.96; PY: 523,451.14)
6,869,835.48 42,041,818.16
D. Deferred income 44,849.32 0.00
224,898,798.79 194,526,367.18
F-56
Rocket Internet GmbH
Income Statement for the Period from January 1 through December 31, 2012
2012 2011

1. Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,335,582.34 6,745,554.92
2. Increase in the work in process inventory . . . . . . . . . . . . . 2,371,800.10 146,067.55
3. Other operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,788,750.72 14,733,714.23
(thereof income from currency translation 591.96;
PY: 33.41)
4. Cost of materials
a) Cost of raw materials and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,746.18 315,942.23
b) Cost of purchased services . . . . . . . . . . . . . . . . . . . . . 10,348,074.09 63,321.60
10,408,820.27
5. Personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a) Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,145,035.00 3,633,639.37
b) Social security and other pension costs . . . . . . . . . . . . 1,899,444.07 660,373.26
(thereof retirement benefits 28,453.48;
PY: 16,480.38)
16,044,479.07
6. Amortization/depreciation of intangible assets and of
property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . 371,397.62 130,920.01
7. Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . 11,293,426.88 2,883,037.97
(thereof from currency translation 0.00; PY: 31.60)
8. Income from participations . . . . . . . . . . . . . . . . . . . . . . . . 218,103,512.51 39,583,821.63
(thereof from affiliated companies 218,103,512.51;
PY: 37,632,462.86)
9. Other interest and similar income . . . . . . . . . . . . . . . . . . . 248,420.03 394,477.80
(thereof from affiliated companies 81,672.91;
PY: 156,443.25)
10. Write-down on financial assets . . . . . . . . . . . . . . . . . . . . . 3,083,415.14 2,723,840.26
11. Interest and similar expenses . . . . . . . . . . . . . . . . . . . . . . 16,866.80 0.00
12. Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . . 380,629,659.92 51,192,561.43
13. Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,501,229.49 482,469.37
14. Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . 378,128,430.43 50,710,092.06
15. Profit carried forward from previous year . . . . . . . . . . . . 91,249,419.26 0.00
16. Withdrawals from capital reserves . . . . . . . . . . . . . . . . . . 1,409,858.10 0.00
17. Distribution pay-outs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,787,707.79 0.00
18. Unappropriated retained earnings . . . . . . . . . . . . . . . . 0.00 50,710,092.06
F-57
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
As of December 31, 2012
Rocket Internet GmbH
GENERAL INFORMATION
Rocket Internet GmbH is a medium-sized corporation within the meaning of Section 267 (2) HGB.
The annual financial statements for the financial year under review were prepared in accordance with the
provisions stipulated for merchants in the German Commercial Code (Section 242 et seqq. HGB) and the
supplementary regulations for corporations (Section 264 et seqq. HGB). In addition to these regulations, the
provisions of the German Limited Liability Companies Act (GmbHG) were observed.
The type of expenditure format pursuant to Section 275 (2) HGB was used to present the income statement.
In preparing the annual financial statements, the Company made use of size-dependent simplifications (Section
288 HGB).
The annual financial statements for the 2012 financial year were prepared taking into account full appropriation
of the net income for the year in accordance with Section 268 (1) HGB.
ACCOUNTING AND VALUATION METHODS
The accounting and valuation methods applied comply with German Commercial Code provisions (Sections 238
to 263 HGB). In addition, the Company observed the supplementary provisions concerning the accounting and
valuation methods to be applied by corporations.
Intangible assets acquired from third-parties are recognized at acquisition costs less scheduled straight-line
amortization, to the extent that they were subject to wear and tear.
Property, plant and equipment are stated at acquisition or manufacturing costs net of scheduled straight-line
depreciation (to the extent depreciable).
Scheduled amortization/depreciation is based on the respective assets expected useful lives. The reported
intangible assets are written down over a period of between 3 to 10 years. A useful life of between 3 to 13 years
is assumed with respect to operating and business equipment.
Movable fixed assets with acquisition costs of more than 150 but not exceeding 1,000 were included in a
collective item for the years from 2008 to 2010. The assets were written down over five years on a pro rata
temporis basis.
Since 2011, movable fixed assets involving values of up to 410 have been written off in full in the year of
acquisition.
Shares in affiliated companies, participations and securities held as fixed assets are stated at acquisition costs or
the lower fair value if permanent impairment is assumed.
Work in process is recognized at manufacturing costs taking loss-free valuation into account. The manufacturing
costs include the minimum components as prescribed under Section 255 (2) HGB and mainly relate to personnel
expenses.
Receivables and other assets are generally stated at nominal values to the extent that no valuation adjustments
apply. In such a case, individual value adjustments are reported.
Liquid assets are stated at nominal amounts.
As a general rule, foreign currency transactions are stated at the historical rate applicable at the time of initial
recognition.
Long-term foreign currency receivables are stated using the currency selling rate applying at the data of origin of
the receivable or the lower fair value, using the spot exchange middle rate prevailing on the reporting date
(principle of imparity). Short-term foreign currency receivables (with a remaining term of one year or less) and
liquid assets or other short-term foreign currency assets are translated using the spot exchange middle rate
applicable on the balance sheet date.
Prepaid expenses include payments that represent expenses for a specified period after the balance sheet date.
Subscribed capital is reported at nominal value.
F-58
Provisions were stated at the settlement amount necessary when applying sound business judgment.
Liabilities were reported at the respective settlement amounts.
Deferred income includes payments received that represent income for a specified period after the balance sheet
date.
Long-term foreign currency liabilities are stated using the currency buying rate applying at the date of origin of
the liability or the higher reporting date value, using the spot exchange middle rate applicable on the reporting
date (principle of imparity). Short-term foreign currency liabilities (with a remaining term of one year or less) are
translated using the spot exchange middle rate applicable on the balance sheet date.
Deferred taxes are recognized to account for differences in the commercial balance sheet and tax balance sheet
items to the extent that these are expected to reverse in later financial years. Deferred tax assets and deferred tax
liabilities are netted. In the event of an asset surplus of deferred taxes as at the balance sheet date, the
capitalization option pursuant to Section 274 (1) Clause 2 HGB is not exercised.
NOTES TO INDIVIDUAL BALANCE SHEET ITEMS
The development and classification of individual fixed asset items are presented in the schedule of fixed assets
which also provides disclosure of amortization/depreciation during the financial year.
The receivables maturities are shown in the following schedule of receivables (prior-year values are presented in
brackets):
Total up to 1 year 1 to 5 years
more than
5 years

Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,448.70 29,448.70 0.00 0.00
(41,414.28) (41,414.28)
Receivables from affiliated companies . . . . . . . . . . . . . 16,900,420.54 16,900,420.54 0.00 0.00
(94,520,569.08) (94,520,569.08)
Receivables from companies in which an equity
investment is held . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,761,923.78 4,761,923.78 0.00 0.00
(2,068,386.78) (2,068,386.78)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,304.93 307,324.93 7,980.00 0.00
(1,833,714.39) (1,825,734.39) (7,980.00)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,007,097.95 21,999,117.95 7,980.00 0.00
(98,464,084.53) (98,456,104.53) (7,980.00) (0.00)
Receivables from affiliated companies in the amount of 16,900,420.54 (prior year: 94,520,569.08) consist of
trade receivables in the amount of 9,414,255.24 (prior year: 3,205,160.98), loan receivables of 7,486,165.30
(prior year: 6,597,589.38), and receivables from investment income in the amount of 0 (prior year:
84,717,818.72).
Receivables from equity holdings in the amount of 4,761,923.78 (prior year: 2,068,386.78) are comprised of
trade receivables in the amount of 3,300,946.83 (prior year: 66,971.16) and loan receivables of
1,460,976.95 (prior year: 2,001,415.62).
The liabilities maturities are shown in the following schedule of liabilities (prior-year values are presented in
brackets):
Liabilities/residual term Total up to 1 year 1 to 5 years
more than
5 years

Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,227,369.63 1,227,369.63 0.00 0.00
(321,651.00) (321,651.00)
Liabilities to affiliated companies . . . . . . . . . . . . . . . 967,387.20 967,387.20 0.00 0.00
(41,196,752.02) (41,196,752.02) (0.00)
Liabilities to companies in which a participation is
held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 946.87 946.87 0.00 0.00
(0.00) (0.00) (0.00)
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,674,131.78 4,182,164.96 491,966.82 0.00
(523,451.14) (523,451.14) (0.00)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,869,835.48 6,377,868.65 491,966.83 0.00
(42,041,854.16) (42,041,854.16) (0.00)
F-59
Liabilities to affiliated companies in the amount of 967,387.20 (prior year: 41,196,752.02) include trade
payables in the amount of 41,710.65 (prior year: 273,791.36) and loan payables of 925,676.55 (prior year:
40,922,960.66).
The liabilities to affiliated companies include liabilities to shareholders in the amount of 17,132.31 (prior year:
5,793.35).
Unappropriated retained earnings developed as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378,128,430.43
Profit carried forward from previous years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,249,419.26
Withdrawals from capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,409,858.10
Distribution pay-outs to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470,787,707.79
Other provisions where set up in the amount of 4,419.135,08, of which 3,379,900.47 were recorded for
expenses concerning call options not yet exercised and compensation agreements as of December 31, 2012.
CONTINGENCIES
The following contingencies in terms of Section 251 HGB that were not reported in the balance sheet existed as
of the reporting date:
Contingency Total
thereof to
affiliated companies
thereof collateralized by
real estate liens or
other collateral
in in in
Rental guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,000 304,000 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,000 304,000 0.00
We consider the probability of utilization of the rental guarantees to be low. We do not have any discernible
indications that would necessitate a different assessment.
In addition, the Company states the following payment obligations in terms of Section 285 HGB as of the
reporting date:
Contingency Total
thereof to
affiliated companies
thereof collateralized by
real estate liens or
other collateral
in in in
Payment obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,765.86 139.00 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,765.86 139.00 0.00
NOTES TO INDIVIDUAL INCOME STATEMENT ITEMS
Profit/loss on ordinary activities was impacted negatively by taxes on income in the amount of 2,501,229.49 in
the financial year under review.
Off-period income amounted to 3,286.26 and off-period expenses came to 100,290.74. Non-scheduled
depreciation in the amount of 3,083,415.14 is due to permanent impairment of financial assets.
Purchased services, such as services provided by freelancers, are reported under costs of materials
(T 10,348.07). In the previous year, these services were disclosed under other operating expenses. However, this
approach was no longer applied in the financial year under review and an improved presentation of expense items
was selected for the reporting year. The prior-year value (involving a lower amount of T 63.32) was not
adjusted.
F-60
LIST OF SHAREHOLDINGS
The Company holds at least 20% of the shares in the following companies:
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
Affinitas GmbH . . . . . . . . . . . Berlin 21.93% 12/31/2012 8,782,093.31 5,826,786.48
Affinitas Phantom Share
GmbH (formerly Brillant
1450. GmbH) . . . . . . . . . . . Berlin 28.18% 12/31/2012 6,019.32 18,980.68
African Internet Holding
(formerly Rocket Africa /
Brillant 1503. GmbH) . . . . Berlin 80.00% Founded in
2012 AFS are
not available
Bambino 106. VV UG . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 107. VV UG . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 108. VV UG . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 109. VV UG . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Bambino 110. VV UG . . . . . . Berlin 100.00% 12/31/2012 2,319.12 2,819.12
Bambino 50. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 1,367.91 1,867.91
Bambino 52. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 3,862.09 4,362.09
Bambino 53. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 21,474.81 20,974.81
Bambino 54. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2012 1,363.85 1,170.44
Bambino 55. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2012 5,851.61 3,187.00
Beauty Trend Holding
GmbH . . . . . . . . . . . . . . . . . Berlin 59.06% 12/31/2011 8,877,784.65 655,852.35
BGN Brillant Services
(formerly Brillant 1447.
GmbH) . . . . . . . . . . . . . . . . Berlin 50.83% Founded in
2012 AFS are
not available
Bigfoot GmbH . . . . . . . . . . . . Berlin 40.50% 12/31/2011 83,525,587.13 8,092,290.19
Billpay GmbH . . . . . . . . . . . . Berlin 46.54% 12/31/2012 3,668,854.11 1,662,261.37
Brillant 1253. GmbH . . . . . . . Berlin 100.00% 12/31/2011 22,311.99 2,688.01
Brillant 1259. GmbH . . . . . . . Berlin 100.00% 12/31/2012 30,842.42 595.58
Brillant 1422. GmbH . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Brillant 1423. GmbH . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Brilliant 1421. GmbH . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
CD-Rocket Holding UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2012 3,212.09 2,357.61
F-61
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
CityDeal Management I
GmbH (formerly City Deal
Management I UG (with
limited liability)) . . . . . . . . Berlin 66.60% 12/31/2012 9,968,413.30 4,687,946.34
CityDeal Management II UG
(with limited liability) . . . . Berlin 100.00% 12/31/2012 1,970.02 2,333.33
CityDeal Management UG
(with limited liability) . . . . Berlin 100.00% 12/31/2012 5,972.65 2,807.90
Classmarkets (formerly
Golden Immobilo
GmbH) . . . . . . . . . . . . . . . . Berlin 52.84% 12/31/2012 456,286.21 46,724.04
Comparamor GmbH . . . . . . . . Berlin 44.66% 12/31/2011 28,544.26 2,832.46
Dropgifts GmbH (formerly
Jade 1321. GmbH) . . . . . . . Berlin 44.72% 12/31/2011 25,000.00
ecards and more GmbH . . . . . Berlin 63.46% 12/31/2012 262,264.46 66,969.45
Emerging Markets Asia
eCommerce Holding
GmbH (formerly Jade
1358. GmbH) . . . . . . . . . . . Berlin 88.60% 12/31/2012 2,784,795.15 16,868.05
Foodpanda GmbH (formerly
Jade 1352. GmbH) . . . . . . . Berlin 86.74% 12/31/2011 25,000.00
Glossybox China Subholding
GmbH & Co. KG (formerly
VRB GmbH &. Co. B-98
KG) . . . . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 11,331.61 9,602.61
Goodbeans GmbH (formerly
Young Internet GmbH) . . . Berlin 33.95% 12/31/2012 27,104.42 821,170.81
GP Management Limited
New Co. . . . . . . . . . . . . . Malta 99.92% 12/31/2011 2,935.00 3,175.00
Hello Fresh GmbH (formerly
Jade 1314. GmbH) . . . . . . . Berlin 43.17% 12/31/2012 4,823,771.56 1,592,588.94
Home 24 GmbH (formerly FP
Commerce GmbH / Jade
909 GmbH) . . . . . . . . . . . . . Berlin 50.71% 12/31/2012 40,820,001.82 60,519,392.76
International Rocket GmbH &
Co. KG . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 129,635.90 29,018.68
Jade 1085. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 84,788.44 9,199.73
Jade 1158. GmbH . . . . . . . . . . Berlin 68.17% 12/31/2012 9,554,419.92 28,572.14
Jade 1183. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 16,231.31 5,763.69
Jade 1217. GmbH . . . . . . . . . . Berlin 88.56% 12/31/2012 2,506,686.42 43,952.14
Jade 1223. GmbH . . . . . . . . . . Berlin 73.80% 12/31/2012 17,003.55 5,501,000.65
Jade 1231. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 500,071.79 523,262.69
Jade 1232. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 137,380.28 160,422.84
Jade 1234. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 18,303.88 4,695.71
Jade 1236. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 19,272.26 4,068.78
Jade 1237. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 19,730.84 3,616.55
Jade 1238. GmbH . . . . . . . . . . Berlin 73.69% 12/31/2012 405,828.55 5,116,326.79
Jade 1240. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 65,263.82 33,825.95
Jade 1241. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 13,521.88 10,172.02
Jade 1242. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 17,995.98 5,517.87
Jade 1246. GmbH . . . . . . . . . . Berlin 79.69% 12/31/2012 13,454.34 4,228.09
Jade 1265. GmbH . . . . . . . . . . Berlin 88.86% 12/31/2012 4,790.48 18,446.16
Jade 1279. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 21,456.59 2,396.41
Jade 1317. GmbH . . . . . . . . . . Berlin 91.97% 12/31/2011 46,900.50 864.50
Jade 1318. GmbH . . . . . . . . . . Berlin 62.92% 12/31/2012 2,492,531.06 31,436.19
F-62
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
Jade 1319. GmbH . . . . . . . . . . Berlin 99.42% 12/31/2012 20,720.07 3,420.43
Jade 1356. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 20,937.98 3,220.81
Jade 1368. GmbH . . . . . . . . . . Berlin 91.06% 12/31/2012 1,393,323.54 6,564.76
Jade 1371. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 21,882.58 3,117.42
Jade 1372. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 23,556.61 1,443.39
Jade 1373. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 23,649.17 1,350.83
Jade 1374. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 23,588.92 1,411.08
Jade 1375. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 23,685.43 1,314.57
Jade 940. GmbH . . . . . . . . . . . Berlin 100.00% 12/31/2012 9,720.39 25,902.03
Jupiter Internet GmbH . . . . . . Munich 73.38% 12/31/2011 136,685.15 30,189.46
Juwel 155. VV UG . . . . . . . . . Berlin 100.00% 12/31/2012 9,526.50 10,026.50
Juwel 156. VV UG . . . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 161. VV UG . . . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 167. VV UG . . . . . . . . . Berlin 100.00% 12/31/2012 2,028.66 2,528.66
Juwel 169. VV UG . . . . . . . . . Berlin 100.00% Founded in
2012 AFS are
not available
Juwel 182. VV UG . . . . . . . . . Berlin 100.00% 12/31/2012 2,004.47 2,504.47
Juwel 185. VV UG . . . . . . . . . Berlin 100.00% 12/31/2012 2,189.27 2,689.27
Lendico GmbH (formerly
Brillant 1439. GmbH) . . . . Berlin 100.00% Founded in
2012 AFS are
not available
MKC Brillant Services
(formerly Brillant 1427.
GmbH) . . . . . . . . . . . . . . . . Berlin 80.00% Founded in
2012 AFS are
not available
Mondstein 284. GmbH . . . . . . Munich 29.75% 12/31/2012 551,424.43 11,643.44
Netzoptiker GmbH . . . . . . . . . Limburg a.d.L. 42.75% 12/31/2012 205,918.26 890,164.43
Payeleven Holding GmbH
(formerly Jade 1360.
GmbH) . . . . . . . . . . . . . . . . Berlin 56.65% 12/31/2012 8,417,697.00 5,609,229.79
Paymill Holding GmbH
(Brillant 1470. GmbH) . . . . Berlin 70.57% 12/31/2012 1,346,723.74 1,371,723.74
Pinspire GmbH (formerly
Jade 1313. GmbH) . . . . . . . Berlin 59.93% 12/31/2011 2,322,264.29 452,110.71
Platin 775. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 25,410.61 410.61
Platin 776. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2011 25,000.00
Platin 777. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2012 25,429.29 429.29
Plinga GmbH (formerly Jade
919 GmbH) . . . . . . . . . . . . . Berlin 34.47% 12/31/2012 1,188,828.41 1,960,561.20
Pricepanda Group GmbH
(formerly Jade 1367.
GmbH) . . . . . . . . . . . . . . . . Berlin 90.93% 12/31/2012 160,235.86 964,675.99
PTH Brillant Services GmbH
(formerly Brillant 1462.
GmbH) . . . . . . . . . . . . . . . . Berlin 76.00% Founded in
2012 AFS are
not available
F-63
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
R2 International Internet
GmbH . . . . . . . . . . . . . . . . . Berlin 59.22% 12/31/2011 1,888,246.89 4,593.01
Rocket Internet Munich
GmbH (formerly
Mondstein 289. GmbH) . . . Berlin 100.00% 12/31/2012 142,327.62 118,160.62
Rocket Middle East (formerly
Brillant 1509. GmbH) . . . . Berlin 100.00% Founded in
2012 AFS are
not available
TIN Brillant Services GmbH
(formerly Brillant 1451.
GmbH) . . . . . . . . . . . . . . . . Berlin 68.96% Founded in
2012 AFS are
not available
Toptarif Internet GmbH . . . . . Berlin 28.62% 12/31/2012 345,802.33 2,603,982.00
Upside Shopping
GmbH i.l. . . . . . . . . . . . . . . Berlin 47.60% In liquidation
VRB GmbH & Co. B-101
(einhunderteins) KG . . . . . . Berlin 100.00% 12/31/2011 4,391.42 4,491.42
webpotentials GmbH . . . . . . . Berlin 45.16% 12/31/2011 370,735.36 226,626.78
Wimdu GmbH . . . . . . . . . . . . Berlin 52.29% 12/31/2012 18,572,403.96 12,861,489.90
Zalando GmbH . . . . . . . . . . . . Berlin 38.21% 12/31/2012 471,579,320.24 77,257,018.71
GBP GBP
Sigma Response Share
Kapital (formerly Sigma
Response Services
Limited) . . . . . . . . . . . . . . . London 31.57% 06/30/2012 945,000.00 943,000.00
In addition, there are approximately 200 indirect equity holdings at second-tier, third-tier and lower tier levels for
which no information respecting the indirect amount of the participation from the viewpoint of Rocket Internet
GmbH, or other relevant financial information is available.
OTHER DISCLOSURES
Parent company
In accordance with Section 285 No. 14 HGB, the name and registered head office of the parent company is
as follows:
European Founders Fund GmbH
Luisenstrae 14
80331 Munich
Employees
The Companys number of employees in terms of Section 267 (5) HGB is 238 (prior year: 67).
Managing Directors
Last name First name Position held
Jeschke Arnt Managing Director
Kudlich Alexander Managing Director
Dr. Bruder Johannes Managing Director
(from May 9, 2012)
Wilmking Jan Managing Director
(from March 1, 2013 to
September 27, 2013)
Dr. Heinemann Florian Managing Director
(until March 31, 2012)
F-64
In the financial year under review, the Management received remuneration in the amount of T 6,604, of which
T 6,257 are attributable to the fair value of subscription rights granted to corporate bodies that meanwhile have
left the Company.
In the previous year, the Management received remuneration in the amount of T 342, of which T 108 are attributable
to the fair value of subscription rights granted to corporate bodies that meanwhile have left the Company.
In financial year 2010, the Managements remuneration totaled T 457.
SIGNING OF THE ANNUAL FINANCIAL STATEMENTS FOR 2012
(Place) (Date) (Signature)
(Place) (Date) (Signature)
(Place) (Date) (Signature)
F-65
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F-66
The following auditors report (Besttigungsvermerk) has been issued in accordance with 322 German
Commercial Code (Handelsgesetzbuch) on the annual financial statements and the management report
(Lagebericht) of Rocket Internet GmbH, Berlin as of and for the fiscal year ended December 31, 2012. The
management report is neither included nor incorporated by reference in this Prospectus.
Auditors Report
We audited the annual financial statements, comprising the balance sheet, the income statement and the notes to
the financial statements, together with the bookkeeping system and the management report of Rocket Internet
GmbH, Berlin, for the business year from January 1, 2012 through December 31, 2012. Maintenance of the
books and records and the preparation of the annual financial statements and management report in accordance
with German commercial law are the responsibility of the Companys Managing Directors. Our responsibility is
to express an opinion on the annual financial statements, together with the bookkeeping system and the
management report, based on our audit.
We conducted our audit of the annual financial statements in accordance with Section 317 HGB
(Handelsgesetzbuch: German Commercial Code) and German generally accepted standards for the audit of
financial statements promulgated by the Institut der Wirtschaftsprfer (Institute of Public Auditors in Germany)
(IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting
the presentation of the net assets, financial position and results of operations in the annual financial statements in
accordance with [German] principles of proper accounting and in the management report are detected with
reasonable assurance. Knowledge of the business activities and the economic and legal environment of the
Company and expectations as to possible misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the
disclosures in the books and records, the annual financial statements and the management report are examined
primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles
used and significant estimates made by the Companys Managing Directors as well as evaluating the overall
presentation of the annual financial statements and management report. We believe that our audit provides a
reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion and based on the findings of our audit, the annual financial statements comply with the legal
provisions and provide a true and fair view of the net assets, financial position and results of operations of the
Company in accordance with [German] principles of proper accounting. The management report is consistent
with the annual financial statements and as a whole provides a suitable view of the Companys position and
suitably presents the opportunities and risks of future development.
Berlin, May 14, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft
sgd. Angelika Kraus sgd. ppa. Katharina Woythe
Wirtschaftsprferin Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
F-67
Audited Unconsolidated Financial Statements of Rocket Internet GmbH
as of and for the financial year ended December 31, 2011
(prepared in accordance with German GAAP)
F-68
Rocket Internet GmbH, Berlin
Balance Sheet as of December 31, 2011
12/31/2011 12/31/2010

Assets
A. Fixed assets
I. Intangible assets
1. Concessions, industrial property rights and similar rights and assets
and licenses in such rights and assets . . . . . . . . . . . . . . . . . . . . . . . . . . 44,855.00 36,507.00
44,855.00 36,507.00
II. Property, plant and equipment
1. Other equipment, operating and business equipment . . . . . . . . . . . . . . 242,855.00 184,414.29
242,855.00 184,414.29
III. Financial assets
1. Shares in affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,308,435.25 22,903,344.58
2. Participations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,217,584.15 4,264,571.89
87,526,019.40 27,167,916.47
87,813,729.40 27,388,837.76
B. Current assets
I. Inventories
1. Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,620.61 79,553.06
225,620.61 79,553.06
II. Receivables and other assets
1. Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,414.28 549,874.59
2. Receivables from affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . 94,520,569.08 48,813,709.88
3. Receivables from companies in which a participation is held . . . . . . . 2,068,386.78 121,899.53
4. Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,833,714.39 7,174,897.48
98,464,084.53 56,660,381.48
III. Cash in hand, bank balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,019,756.84 19,760,773.25
106,709,461.98 76,500,707.79
C. Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,175.80 3,315.97
194,526,367.18 103,892,861.52
F-69
12/31/2011 12/31/2010

Equity and Liabilities
A. Equity capital
I. Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,301.00 28,301.00
II. Capital reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,776,699.00 58,776,699.00
III. Profit/loss carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,539,327.20 4,753,098.46
IV. Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092.06 45,292,425.66
150,054,419.26 99,344,327.20
B. Provisions
1. Tax provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,939,527.00 1,600,657.00
2. Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 490,602.76 308,048.63
2,430,129.76 1,908,705.63
C. Liabilities
1. Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321,615.00 189,897.91
2. Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,196,752.02 2,107,164.36
3. Liabilities to companies in which a participation is held . . . . . . . . . . . . . 0.00 181,708.89
4. Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,451.14 161,057.53
(thereof from taxes 115,761.36; PY: 145,294.62)
(thereof resp. social security 16,252.43; PY: 811.16)
(thereof due in up to one year 523,451.14; PY: 161,057.53)
42,041,818.16 2,639,828.69
194,526,367.18 103,892,861.52
F-70
Rocket Internet GmbH
Income Statement for the Period from January 1 through December 31, 2011
2011 2010

1. Sales revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,745,554.92 5,415,597.02
2. Increase / decrease (-) in the finished goods and work in
process inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146,067.55 73,345.88
3. Other operating income 14,733,714.23 1,688,322.39
(thereof income from currency translation 33.41;
PY: 1,981.41)
4. Cost of materials
a) Cost of raw materials and supplies and of purchased
merchandise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,942.23 19,229.79
b) Cost of purchased services . . . . . . . . . . . . . . . . . . . . . . . 63,321.60 0.00
379,263.83
5. Personnel expenses
a) Wages and salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,633,639.37 3,022,952.39
b) Social security and other pension costs . . . . . . . . . . . . . . 660,373.26 524,728.19
(thereof retirement benefits 16,480.38;
PY: 18,274.29)
4,294,012.63
6. Amortization/depreciation of intangible assets and of
property, plant and equipment 130,920.01 57,494.38
7. Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,883,037.97 2,937,401.51
(thereof from currency translation 31.60; PY: 141.32)
8. Income from participations . . . . . . . . . . . . . . . . . . . . . . . . . . 39,583,821.63 48,132,619.23
(thereof from affiliated companies 37,632,462.86;
PY: 47,503,678.43)
9. Other interest and similar income . . . . . . . . . . . . . . . . . . . . . 394,477.80 455,128.52
(thereof from affiliated companies 156,443.25;
PY: 55,860.00)
10. Write-down on financial assets . . . . . . . . . . . . . . . . . . . . . . . 2,723,840.26 2,267,428.07
11. Profit/loss on ordinary activities . . . . . . . . . . . . . . . . . . . . 51,192,561.43 46,935,778.71
12. Taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482,469.37 1,643,353.05
13. Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092.06 45,292,425.66
F-71
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
as of December 31, 2011
Rocket Internet GmbH
GENERAL INFORMATION
Rocket Internet GmbH is a medium-sized corporation within the meaning of Section 267 (2) HGB.
The annual financial statements for the financial year under review were prepared in accordance with the
provisions stipulated for merchants in the German Commercial Code (Section 242 et seqq. HGB) and the
supplementary regulations for corporations (Section 264 et seqq. HGB). In addition to these regulations, the
provisions of the German Limited Liability Companies Act (GmbHG) were observed.
The type of expenditure format pursuant to Section 275 (2) HGB was used to present the income statement.
In preparing the annual financial statements, the Company made use of size-dependent simplifications (Sections
276, 288 HGB).
ACCOUNTING AND VALUATION METHODS
The accounting and valuation methods applied comply with German Commercial Code provisions (Sections 238
to 263 HGB). In addition, the Company observed the supplementary provisions concerning the accounting and
valuation methods to be applied by corporations.
Intangible assets acquired from third-parties are recognized at acquisition costs less scheduled straight-line
amortization, to the extent that they were subject to wear and tear.
Property, plant and equipment are stated at acquisition or manufacturing costs net of scheduled straight-line
depreciation (to the extent depreciable).
Scheduled amortization/depreciation is based on the respective assets expected useful lives. The reported
intangible assets are written down over a period of between 3 to 10 years. A useful life of between 3 to 13 years
is assumed with respect to operating and business equipment.
Movable fixed assets with acquisition costs of more than 150 but not exceeding 1,000 were included in a
collective item for the years from 2008 to 2010. The assets were written down over five years on a pro rata
temporis basis.
In 2011, movable fixed assets involving values of up to 410 were written off in full in the year of acquisition.
Shares in affiliated companies and long-term equity investments are stated at acquisition costs or the lower fair
value.
Work in process is recognized at manufacturing costs taking loss-free valuation into account. The manufacturing
costs include the minimum components as prescribed under Section 255 (2) HGB and mainly relate to personnel
expenses.
Receivables and other assets are generally stated at nominal values unless valuation adjustments are required to
be reported.
Liquid assets are reported at nominal amounts.
Prepaid expenses include payments that represent expenses for a specified period after the balance sheet date.
Provisions were stated at the settlement amount necessary when applying sound business judgment. Liabilities
were reported at the respective settlement amounts.
As a general rule, foreign currency transactions are stated at the historical rate applicable at the time of initial
recognition. Balance sheet items are measured at the balance sheet date as follows:
Long-term foreign currency receivables are stated using the currency selling rate applying at the data of origin of
the receivable or the lower fair value, using the spot exchange middle rate prevailing on the reporting date
(principle of imparity). Short-term foreign currency receivables (with a remaining term of one year or less) and
liquid assets or other short-term foreign currency assets are translated using the spot exchange middle rate
applicable on the balance sheet date.
F-72
Long-term foreign currency liabilities are stated using the currency buying rate applying at the date of origin of
the liability or the higher reporting date value, using the spot exchange middle rate applicable on the reporting
date (principle of imparity). Short-term foreign currency liabilities (with a remaining term of one year or less) are
translated using the spot exchange middle rate applicable on the balance sheet date.
Deferred taxes are recognized to account for differences in the commercial balance sheet and tax balance sheet
items to the extent that these are expected to reverse in later financial years. Deferred tax assets are also set up to
account for any existing corporation and trade tax losses carried forward, to the extent that the netting of losses is
to be expected within the next five years. Deferred tax assets and deferred tax liabilities are netted.
In the event of an asset surplus of deferred taxes as at the balance sheet date, the capitalization option pursuant to
Section 274 (1) Clause 2 HGB is not exercised.
NOTES TO INDIVIDUAL BALANCE SHEET ITEMS
The development and classification of individual fixed asset items are presented in the schedule of fixed assets
which also provides disclosure of amortization/depreciation during the financial year.
The receivables maturities are shown in the following schedule of receivables (prior-year values are presented in
brackets):
Total up to 1 year 1 to 5 years
more than
5 years

Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,414.28 41,414.28 0.00 0.00
(549,874.59) (549,874.59)
Receivables from affiliated companies . . . . . . . . . . . . . 94,520,569.08 94,520,569.08 0.00 0.00
(48,813,709.88) (48,813,709.88)
Receivables from companies in which an equity
investment is held . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,068,386.78 2,068,386.78 0.00 0.00
(121,899.53) (121,899.53)
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,833,714.39 1,833,714.39 0.00 0.00
(7,174,897.48) (7,174,897.48)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,464,084.53 98,464,084.53 0.00 0.00
(56,660,381.48) (56,660,381.48)
The receivables from affiliated companies and equity holdings largely concern claims to investment income.
The liabilities maturities are shown in the following schedule of liabilities (prior-year values are presented in
brackets):
Liabilities/residual term Total up to 1 year 1 to 5 years
more than
5 years

Trade payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321,651.00 321,651.00 0.00 0.00
(189,897.91) (189,897.91)
Liabilities to affiliated companies . . . . . . . . . . . . . . . . . . 41,196,752.02 41,196,752.02 0.00 0.00
(2,107,164.36) (2,107,164.36)
Liabilities to companies in which an equity investment
is held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00
(181,708.89) (181,708.89)
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 523,451.14 523,451.14 0.00 0.00
(161,057.53) (161,057.53)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,041,854.16 42,041,854.16 0.00 0.00
(2,639,828.69) (2,639,828.69)
The liabilities to affiliated companies include liabilities to shareholders in the amount of 5,793.35. Liabilities to
affiliated companies and equity holdings mainly concern loan liabilities.
F-73
CONTINGENCIES
The following contingencies in terms of Section 251 HGB that were not reported in the balance sheet existed as
of the reporting date:
Contingency Total
thereof to
affiliated companies
thereof collateralized by
real estate liens or
other collateral
in in in
Rental guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000.00 140,000.00 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000.00 140,000.00 0.00
We consider the probability of utilization of the rental guarantees to be low. We do not have any discernible
indications that would necessitate a different assessment.
In addition, the Company states the following payment obligations in terms of Section 285 HGB as of the
reporting date:
Contingency Total
thereof to
affiliated companies
thereof collateralized by
real estate liens or
other collateral
in in in
Payment obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,380.46 1,250,380.46 0.00
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,250,380.46 1,250,380.46 0.00
NOTES TO INDIVIDUAL INCOME STATEMENT ITEMS
Profit/loss on ordinary activities and the extraordinary result were impacted negatively by taxes on income in the
amount of 482,469.37 in the financial year under review.
Off-period income amounted to T 1 and off-period expenses came to T 4. Non-scheduled depreciation in the
amount of 2,723,840.26 is due to permanent impairment of financial assets.
LIST OF SHAREHOLDINGS
The Company holds at least 20% of the shares in the following companies:
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
Toptarif Internet GmbH . . . . . Berlin 31.89% 12/31/2011 325,024.62 1,827,066.30
Tuningsuche GmbH . . . . . . . . Munich 20.20% 12/31/2011 74,523.87 13,101.13
Goodbeans GmbH . . . . . . . . . Berlin 33.95% 12/31/2011 748,275.03 63,796.46
Arztplatz GmbH i.L. . . . . . . . Munich 100.00% 12/31/2011 72,104.73 5,519.83
Jupiter Internet GmbH i.L. . . . Munich 73.38% 12/31/2011 136,685.15 30,189.46
Besser Betreut GmbH . . . . . . Berlin 44.34% 12/31/2011 452,561.44 189,013.12
Netzoptiker GmbH . . . . . . . . . Limburg a.d.L. 43.52% 12/31/2011 1,093,957.62 809,428.33
Classmarkets GmbH . . . . . . . Berlin 52.84% 12/31/2011 503,404.25 39,330.49
ecards and more GmbH . . . . . Berlin 63.46% 12/31/2011 195,295.01 34,176.37
Zalando GmbH . . . . . . . . . . . Berlin 52.49% 12/31/2011 110,580,194.80 56,515,598.78
R2 International Internet
GmbH . . . . . . . . . . . . . . . . Berlin 59.22% 12/31/2011 1,888,246.89 4,593.01
Affinitas GmbH . . . . . . . . . . . Berlin 33.46% 12/31/2011 2,955,306.83 9,223,493.95
Jade 882. GmbH i.l. . . . . . . . . Berlin 91.00% 12/31/2011 13,896.53 3,909.48
Jade 904. GmbH i.l. . . . . . . . . Berlin 91.50% 12/31/2011 14,324.54 3,881.62
Upside Shopping GmbH . . . . Berlin 47.60% Founded in 2009,
annual financial
statements are
not available
webpotentials GmbH . . . . . . . Berlin 45.16% 12/31/2011 370,735.36 226,626.78
Comparamor GmbH . . . . . . . Berlin 44.66% 12/31/2011 28,544.26 2,832.46
F-74
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
Home 24 GmbH . . . . . . . . . . . Berlin 40.87% 12/31/2011 14,864,986.99 9,525,828.45
Plinga GmbH . . . . . . . . . . . . . Berlin 40.94% 12/31/2011 1,472,241.60 665,152.82
fashion4home GmbH . . . . . . . Berlin 27.70% 12/31/2011 6,150,780.03 1,247,500.78
Jade 940. GmbH . . . . . . . . . . Berlin 100.00% 12/31/2011 16,181.64 2,934.93
Billpay GmbH . . . . . . . . . . . . Berlin 54.55% 12/31/2011 425,631.42 1,107,287.67
CD-Rocket Holding UG (with
limited liability) & Co.
Beteiligungs KG . . . . . . . . Berlin 100.00% 12/31/2011 1,888,124.50 37,213,340.29
CD-Rocket Holding UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 854.48 1,821.70
CityDeal Management I
GmbH . . . . . . . . . . . . . . . . Berlin 66.60% 12/31/2011 5,280,466.96 1,621,501.10
CityDeal Management UG . . Berlin 100.00% 12/31/2011 2,876.84 1,382.57
CityDeal Management II
UG . . . . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 4,363.00 1,648.80
Bigfoot GmbH . . . . . . . . . . . . Berlin 55.24% 12/31/2011 83,525,587.13 8,092,290.19
Jade 1085. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 75,705,31 52,806.79
International Rocket GmbH &
Co. KG . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 129,635.90 29,018.68
GP Management Limited . . . . Malta 99.92% 12/31/2011 2,935.00 3,175.00
VRB GmbH & Co. B-98
(achtundneunzig) KG . . . . . Berlin 100.00% 12/31/2011 11,331.61 9,602.61
VRB GmbH & Co. B-101
(einhunderteins) KG . . . . . Berlin 100.00% 12/31/2011 4,391.42 4,491,42
Moto GmbH . . . . . . . . . . . . . . Hamburg 23.41% 12/31/2011 1,148,212.49 851,024.54
Beauty Trend Holding
GmbH . . . . . . . . . . . . . . . . Berlin 57.53% 12/31/2011 8,877,000.00 656,000.00
Wimdu GmbH . . . . . . . . . . . . Berlin 62.23% 12/31/2011 22,958,408.26 15,068,337.74
Jade 1159. GmbH . . . . . . . . . Berlin 73.75% 12/31/2011 2,576,558.86 195,691.14
Jade 1158. GmbH . . . . . . . . . Berlin 77.45% 12/31/2011 7,025,847.78 847.78
Bambino 55. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 2,664.61 3,164.61
Bambino 53. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2010 500.00 0.00
Jade 1145. GmbH . . . . . . . . . Berlin 80.08% 12/31/2011 23,830.01 1,169.99
Bambino 50. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2010 500.00 0.00
Bambino 52. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2011 3,862.09 4,362.09
Bambino 54. V V UG (with
limited liability) . . . . . . . . . Berlin 100.00% 12/31/2010 500.00 0.00
Jade 1218. GmbH . . . . . . . . . Berlin 80.22% 12/31/2011 5,506,815.52 14,747.48
Jade 1216. GmbH . . . . . . . . . Berlin 68.75% 12/31/2011 2,758,532.89 16,467.11
Jade 1217. GmbH . . . . . . . . . Berlin 88.56% 12/31/2011 2,550,618.56 224,381.44
GG Fun Limited . . . . . . . . . . . Malta 99.00% 12/31/2011 16,813.00 17,053.00
Jade 1221. GmbH . . . . . . . . . Berlin 80.22% 12/31/2011 5,511,596.56 9,966.44
Jade 1183. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 21,995.00 3,005.00
Jade 1229. GmbH . . . . . . . . . Berlin 76.31% 12/31/2011 2,059.94 22,940.06
Jade 1231. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,190.90 1,809.10
Jade 1232. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,042.56 1,957.44
Jade 1234. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 22,999.59 2,000.41
Jade 1236. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,341.04 1,658.96
Jade 1237. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,347.39 1,652.61
Jade 1238. GmbH . . . . . . . . . Berlin 99.50% 12/31/2011 5,517,091.34 2,844.66
SPV-6 Furniture Services
GmbH . . . . . . . . . . . . . . . . Berlin 84.86% 12/31/2011 5,515,231,19 248.19
Jade 1240. GmbH . . . . . . . . . Berlin 84.44% 12/31/2011 2,767,818.37 2,228.63
F-75
Name
Registered
head office Share
Most recent
annual
financial
statements
available Equity capital Profit/loss
Jade 1241. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,693.90 1,306.10
Jade 1242. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,513.85 1,486.15
Jade 1246. GmbH . . . . . . . . . Berlin 79.36% 12/31/2011 17,682.43 7,317.57
Brillant 1253. GmbH . . . . . . . Berlin 100.00% 12/31/2011 22,311.99 2,688.01
Jade 1223. GmbH . . . . . . . . . Berlin 84.51% 12/31/2011 5,512,971.20 6,995.80
SPV-5 Furniture Services
GmbH . . . . . . . . . . . . . . . . Berlin 78.85% 12/31/2011 5,507,710.49 11,473.51
Brillant 1259. GmbH . . . . . . . Berlin 100.00% 12/31/2011 2,774,455.49 944.51
Brillant 1261. GmbH . . . . . . . Berlin 84.44% 12/31/2011 2,770,432.38 4,567.62
Brillant 1262. GmbH . . . . . . . Berlin 80.29% 12/31/2011 2,777,524.34 2,524.34
Brillant 1260. GmbH . . . . . . . Berlin 75.42% 12/31/2011 5,508,370.97 11,565.03
Jade 1279. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 23,853.00 1,147.00
Jade 1290. GmbH . . . . . . . . . Berlin 63.88% 12/31/2011 7,425,158.00 217,730.15
Jade 1297. GmbH . . . . . . . . . Berlin 82.14% 12/31/2011 13,774,186.52 1,415.79
SPV-3 Furniture Services
GmbH . . . . . . . . . . . . . . . . Berlin 86.31% 12/31/2011 23,721.20 1,278.80
Jade 1265. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 13,655.68 11,344.32
SPV-7 Furniture Services
GmbH . . . . . . . . . . . . . . . . Berlin 86.74% 12/31/2011 2,768,316.03 6,683.97
Mondstein 284. GmbH . . . . . Munich 32.23% 12/31/2011 10,506.47 14,493.53
Pinspire GmbH . . . . . . . . . . . Berlin 88.12% 12/31/2011 2,322,264.29 452,110.71
HelloFresh GmbH . . . . . . . . . Berlin 59.52% 12/31/2011 2,412,890.16 112,920.12
Rocket Internet Munich
GmbH . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 24,167.00 833.00
Jade 1317. GmbH . . . . . . . . . Berlin 91.97% 12/31/2011 46,900.50 864.50
Jade 1318. GmbH . . . . . . . . . Berlin 62.88% 12/31/2011 23,967.25 1,032.75
Jade 1319. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,140.50 859,50
Jade 1356. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,158.79 841,21
Jade 1357. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,158.79 841.21
Jade 1358. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,158.79 841.21
Jade 1359. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,158.79 841.21
Jade 1360. GmbH . . . . . . . . . Berlin 100.00% 12/31/2011 24,191.79 808.21
SPV-4 Furniture Services
GmbH . . . . . . . . . . . . . . . . Berlin 100.00% 12/31/2011 20,331.65 4,668.35
GBP GBP
Sigma Response Share
Kapital . . . . . . . . . . . . . . . . 31.57% 06/30/2011 1,574,000.00 3,562,000.00
APPROPRIATION OF PROFIT/LOSS
In agreement with the shareholders, Management proposes that the
Net income for the year be used as follows: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092.06
Carryforward to new accounting periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092.06
OTHER DISCLOSURES
Parent company
In accordance with Section 285 No. 14 HGB, the name and registered head office of the parent company is
as follows:
European Founders Fund GmbH
Luisenstrae 14
80331 Munich
Employees
The Companys number of staff in terms of Section 267 (5) HGB is 67 (prior year: 58).
F-76
Managing Directors
Last name First name Position held
Jeschke Arnt Managing Director
Horstmann Uwe Managing Director
(until June 30, 2011)
Dr. Heinemann Florian Managing Director
(January 29, 2010 through
March 31, 2012)
Wei Christian Managing Director
(October 16, 2010 through
December 8, 2011)
Kudlich Alexander Managing Director
(from September 1, 2011)
Dr. Bruder Johannes Managing Director
(from May 9, 2012)
Wilmking Jan Managing Director
(from March 1, 2013)
The Company makes use of the statutory regulations which permit non-disclosure of the Managing
Directors remuneration as only three Managing Directors receive remuneration from the Company.
Berlin, August 21, 2013
Dr. Johanes Bruder Arnt Jeschke
Alexander Kudlich Jan Wilmking
F-77
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F-78
The following auditors report (Besttigungsvermerk) has been issued in accordance with 322 German
Commercial Code (Handelsgesetzbuch) on the annual financial statements and the management report
(Lagebericht) of Rocket Internet GmbH, Berlin as of and for the fiscal year ended December 31, 2011. The
management report is neither included nor incorporated by reference in this Prospectus.
Auditors Report
We audited the annual financial statements, comprising the balance sheet, the income statement and the notes to
the financial statements, together with the bookkeeping system and the management report of Rocket Internet
GmbH, Berlin, for the business year from January 1, 2011 through December 31, 2011. Maintenance of the
books and records and the preparation of the annual financial statements and management report in accordance
with German commercial law are the responsibility of the Companys Managing Directors. Our responsibility is
to express an opinion on the annual financial statements, together with the bookkeeping system and the
management report, based on our audit.
We conducted our audit of the annual financial statements in accordance with Section 317 HGB
(Handelsgesetzbuch: German Commercial Code) and German generally accepted standards for the audit of
financial statements promulgated by the Institut der Wirtschaftsprfer (Institute of Public Auditors in Germany)
(IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting
the presentation of the net assets, financial position and results of operations in the annual financial statements in
accordance with [German] principles of proper accounting and in the management report are detected with
reasonable assurance. Knowledge of the business activities and the economic and legal environment of the
Company and expectations as to possible misstatements are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the
disclosures in the books and records, the annual financial statements and the management report are examined
primarily on a test basis within the framework of the audit. The audit includes assessing the accounting principles
used and significant estimates made by the Companys Managing Directors as well as evaluating the overall
presentation of the annual financial statements and management report. We believe that our audit provides a
reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion and based on the findings of our audit, the annual financial statements comply with the legal
provisions and provide a true and fair view of the net assets, financial position and results of operations of the
Company in accordance with [German] principles of proper accounting. The management report is consistent
with the annual financial statements and as a whole provides a suitable view of the Companys position and
suitably presents the opportunities and risks of future development.
Berlin, August 21, 2013
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft
Angelika Kraus pp. Katharina Woythe
Wirtschaftsprferin Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
F-79
Additional Unconsolidated Information of Rocket Internet AG
(formerly Rocket Internet GmbH)
for the financial year ended December 31, 2012
(prepared in accordance with German GAAP)
F-80
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Statement of changes in equity for the financial year 2012
Subscribed capital Capital reserves Earned equity Equity
EUR EUR EUR EUR
31 December 2010 . . . . . . . . . . . . . . . . . . . 28,301 58,776,699 40,539,327 99,344,327
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092 50,710,092
31 December 2011 . . . . . . . . . . . . . . . . . . . 28,301 58,776,699 91,249,419 150,054,419
Proceeds from issue of shares . . . . . . . . . . . 75,085 153,324,916 153,400,001
Withdrawals from capital reserve . . . . . . . . 1,409,858 1,409,858 0
Advance dividends . . . . . . . . . . . . . . . . . . . . 470,787,707 470,787,707
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . 378,128,430 378,128,430
31 December 2012 . . . . . . . . . . . . . . . . . . . 103,386 210,691,757 0 210,795,143
F-81
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Cash flow statement for the financial year 2012
1 Jan - 31 Dec
2012
1 Jan - 31 Dec
2011
EUR EUR
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378,128,430 50,710,092
+/ Amortization, depreciation and write-downs / write-ups of fixed assets . . . 3,454,439 2,833,838
+/ Increase / decrease in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,758,841 521,424
+/ Other non-cash expenses / income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,891,031 121,000
/+ Gain / loss on disposals of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,562,477 14,519,651
/+ Increase / decrease in inventories, trade receivables and other assets . . . . . 74,190,141 38,619,760
+/ Increase / decrease in trade payables and other liabilities . . . . . . . . . . . . . . 5,372,867 680,386
= Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,451,210 1,727,329
+ Cash received from disposals of property, plant and equipment . . . . . . . . . 14,136 23,859
Cash paid for investments in property, plant and equipment . . . . . . . . . . . . 989,242 196,518
+ Cash received from disposals of intangible assets . . . . . . . . . . . . . . . . . . . . 0 271
Cash paid for investments in intangible assets . . . . . . . . . . . . . . . . . . . . . . . 89,584 22,155
+ Cash received from disposals of fixed financial assets . . . . . . . . . . . . . . . . . 175,654,538 13,161,196
Cash paid for investments in fixed financial assets . . . . . . . . . . . . . . . . . . . 14,664,121 65,564,156
+ Cash received in connection with short-term financial management of cash
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,415,509 18,320,962
Cash paid in connection with short-term financial management of cash
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,386,910 20,112,059
= Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,954,326 54,388,600
+ Cash received from equity contributions (capital increase) . . . . . . . . . . . . . 153,400,001 0
Cash paid to shareholders (advance dividends) . . . . . . . . . . . . . . . . . . . . . . 414,206,769 0
+ Cash received from loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,800,000 40,920,255
Repayments of loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,300,000 0
= Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301,306,768 40,920,255
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,098,768 11,741,016
+ Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . . . 8,019,757 19,760,773
= Cash and cash equivalents at the end of the period . . . . . . . . . . . . . . . . . 101,118,525 8,019,757
F-82
Auditors Report
To Rocket Internet AG (formerly Rocket Internet GmbH):
We have audited the statement of changes in equity and the cash flow statement for the financial year 2012
derived by Rocket Internet AG from the annual financial statements for the financial year 2012 as well as from
the underlying bookkeeping system. The statement of changes in equity and the cash flow statement supplement
the annual financial statements of Rocket Internet AG for the financial year 2012 prepared on the basis of
German commercial law provisions.
The preparation of the statement of changes in equity and the cash flow statement for the financial year 2012 in
accordance with German commercial law provisions is the responsibility of the companys legal representatives.
Our responsibility is to express, based on the audit performed by us, an opinion as to whether the statement of
changes in equity and the cash flow statement for the financial year 2012 have been properly derived from the
annual financial statements for the financial year 2012 as well as from the underlying bookkeeping system in
accordance with German commercial law provisions. The subject matter of this engagement did not include the
audit of the underlying annual financial statements as well as the underlying bookkeeping system.
We have planned and performed our audit in compliance with the IDW Auditing Practice Statement: Audit of
Additional Elements of Financial Statements (IDW AuPS 9.960.2) such that any material errors in the derivation
of the statement of changes in equity and the cash flow statement from the annual financial statements as well as
the underlying bookkeeping system are detected with reasonable assurance.
In our opinion, which is based on the findings obtained during the audit, the statement of changes in equity and
the cash flow statement for the financial year 2012 have been properly derived from the annual financial
statements for the financial year 2012 as well as the underlying bookkeeping system in accordance with German
commercial law provisions.
Berlin, July 23, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft
Angelika Kraus pp. Katharina Woythe
Wirtschaftsprferin Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
F-83
Additional Unconsolidated Information of Rocket Internet AG
(formerly Rocket Internet GmbH)
for the financial year ended December 31, 2011
(prepared in accordance with German GAAP)
F-84
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Statement of changes in equity for the financial year 2011
Subscribed capital Capital reserves Earned equity Equity
EUR EUR EUR EUR
31 December 2009 . . . . . . . . . . . . . . . . . . . . . . . 25,000 22,380,000 4,753,098 17,651,902
Proceeds from issue of shares . . . . . . . . . . . . . . . 3,301 36,396,699 36,400,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,292,425 45,292,425
31 December 2010 . . . . . . . . . . . . . . . . . . . . . . . 28,301 58,776,699 40,539,327 99,344,327
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092 50,710,092
31 December 2011 . . . . . . . . . . . . . . . . . . . . . . . 28,301 58,776,699 91,249,419 150,054,419
F-85
Rocket Internet AG, Berlin (formerly Rocket Internet GmbH)
Cash flow statement for the financial year 2011
1 Jan - 31 Dec
2011
1 Jan - 31 Dec
2010
EUR EUR
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,710,092 45,292,425
+/ Amortization, depreciation and write-downs / write-ups of fixed assets . . . . 2,833,838 2,324,922
+/ Increase / decrease in provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521,424 1,692,734
+/ Other non-cash expenses / income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,000 600,342
/+ Gain / loss on disposals of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,519,651 1,068,244
/+ Increase / decrease in inventories, trade receivables and other assets . . . . . . 38,619,760 48,522,612
+/ Increase / decrease in trade payables and other liabilities . . . . . . . . . . . . . . . 680,386 11,437
= Cash flow from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,727,329 308,130
+ Cash received from disposals of property, plant and equipment . . . . . . . . . . 23,859 8,936
Cash paid for investments in property, plant and equipment . . . . . . . . . . . . . 196,518 112,024
+ Cash received from disposals of intangible assets . . . . . . . . . . . . . . . . . . . . . 271 0
Cash paid for investments in intangible assets . . . . . . . . . . . . . . . . . . . . . . . . 22,155 10,144
+ Cash received from disposals of fixed financial assets . . . . . . . . . . . . . . . . . . 13,161,196 2,033,943
Cash paid for investments in fixed financial assets . . . . . . . . . . . . . . . . . . . . 65,564,156 11,889,753
+ Cash received in connection with short-term financial management of cash
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,320,962 8,170,000
Cash paid in connection with short-term financial management of cash
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,112,059 15,453,205
= Cash flow from investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,388,600 17,252,247
+ Cash received from equity contributions (capital increase) . . . . . . . . . . . . . . 0 36,400,000
+ Cash received from loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,920,255 0
= Cash flow from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,920,255 36,400,000
Change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,741,016 19,455,883
+ Cash and cash equivalents at the beginning of the period . . . . . . . . . . . . . . . 19,760,773 304,890
= Cash and cash equivalents at the end of the period . . . . . . . . . . . . . . . . . . 8,019,757 19,760,773
F-86
Auditors Report
To Rocket Internet AG (formerly Rocket Internet GmbH):
We have audited the statement of changes in equity and the cash flow statement for the financial year 2011
derived by Rocket Internet AG from the annual financial statements for the financial year 2011 as well as from
the underlying bookkeeping system. The statement of changes in equity and the cash flow statement supplement
the annual financial statements of Rocket Internet AG for the financial year 2011 prepared on the basis of
German commercial law provisions.
The preparation of the statement of changes in equity and the cash flow statement for the financial year 2011 in
accordance with German commercial law provisions is the responsibility of the companys legal representatives.
Our responsibility is to express, based on the audit performed by us, an opinion as to whether the statement of
changes in equity and the cash flow statement for the financial year 2011 have been properly derived from the
annual financial statements for the financial year 2011 as well as from the underlying bookkeeping system in
accordance with German commercial law provisions. The subject matter of this engagement did not include the
audit of the underlying annual financial statements as well as the underlying bookkeeping system.
We have planned and performed our audit in compliance with the IDW Auditing Practice Statement: Audit of
Additional Elements of Financial Statements (IDW AuPS 9.960.2) such that any material errors in the derivation
of the statement of changes in equity and the cash flow statement from the annual financial statements as well as
the underlying bookkeeping system are detected with reasonable assurance.
In our opinion, which is based on the findings obtained during the audit, the statement of changes in equity and
the cash flow statement for the financial year 2011 have been properly derived from the annual financial
statements for the financial year 2011 as well as the underlying bookkeeping system in accordance with German
commercial law provisions.
Berlin, July 23, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprfungsgesellschaft
Angelika Kraus pp. Katharina Woythe
Wirtschaftsprferin Wirtschaftsprferin
(German Public Auditor) (German Public Auditor)
F-87
GLOSSARY
Access Industries . . . . . . . . . . . . . . . . . . The Access Industries group of companies, which includes AI European
Holdings S. r.l., AI Linio Holdings LLC, AI Zencap Holdings LLC and AI
Lendico Holdings LLC.
Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The geographic region extending as far north as Tunisia, as far south as
South Africa, as far west as Senegal, as far east as Madagascar and
including Egypt.
Alice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rocket Internets proprietary technology platform used by all of Rocket
Internets e-commerce companies.
Amortization . . . . . . . . . . . . . . . . . . . . . . A method used to prorate the cost of an asset to the assets life.
Amortization primarily refers to concessions, industrial property rights and
similar rights and assets, as well as licenses in such rights and assets.
API . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application programming interface; a tool in computer programming which
dictates how software components interact with each other.
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . The geographic region encompassing Southeast Asia, as well as Australia,
Bangladesh, Bhutan, Hong Kong, Japan, Maldives, Mongolia, Nepal,
Pakistan, South Korea and Taiwan.
BaFin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . German Federal Financial Supervisory Authority (Bundesanstalt fr
Finanzdienstleistungsaufsicht).
Beneficial ownership stakes . . . . . . An interest in a company which allows the holder an ability to either
directly or indirectly influence decisions of the company.
Business-to-business . . . . . . . . . . . . . . A commerce transaction between businesses, such as between a
manufacturer and a wholesaler, or between a wholesaler and a retailer.
Business-to-consumer . . . . . . . . . . . . . A commerce transaction in which a business or individual interacts with and
sells directly to the end consumer.
CAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . See customer acquisition cost.
CAGR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compounded Annual Growth Rate; the year-over-year growth rate of an
investment over a specified period of time. The compound annual growth
rate is calculated by taking the nth root of the total percentage growth rate,
where n is the number of years in the period being considered.
Cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . A financial measure that represents the net inflow of liquid funds during a
particular period resulting from sales and other current business activities.
CIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Commonwealth of Independent States.
CLV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Customer lifetime value is the gross profit less fulfillment costs attributable
to a particular customer cohort, the members of which were all acquired
during a specific period of time, since the acquisition of such customers.
Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . Rocket Internets companies which are currently in the process of being
launched or in the seed financing stage. This category includes, among
others, the following companies: EatFirst, Spaceways, Shopwings, Spotcap
and Tripda.
Consolidation method . . . . . . . . . . . . An accounting method for companies which the Issuer controls. Whether or
not the Issuer controls a company depends on an evaluation of a number of
factors, including, among others, representation on the companys board of
directors and the voting and other rights of other investors (minority
shareholders) including their participation in significant decisions made in
the ordinary course of business (e.g. approval of the annual operating
budget), as well as the Issuers ownership level of the outstanding voting
rights of the company. Generally the consolidation method is applied to
companies in which the Issuer directly or indirectly holds more than 50% of
the outstanding voting rights. Under this method, the companys results of
operations are included in the Issuers consolidated financial statements.
G-1
Conversion rate . . . . . . . . . . . . . . . . . . . Number of orders divided by the number of visits on a retail website.
Cost method . . . . . . . . . . . . . . . . . . . . . . . An accounting method for companies in which the Issuer does not include
its share of the earnings or losses of these companies in its consolidated
financial statements and therefore only affects the Group consolidated
results of operations only if a dividend distribution is made, the fair value of
the company falls below the historical cost recorded on the balance sheet or
an investment is disposed of.
Crowdsourcing . . . . . . . . . . . . . . . . . . . . In the Issuers context, this is the process in which local platform changes
made by individual companies can be easily incorporated into the core
platform, allowing the benefits of these developments to be rapidly
distributed across the Issuers network of companies.
CRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Customer relationship management; tools and data warehouses designed to
enhance the customer relationship.
Customer acquisition cost,
CAC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A business metric showing the costs incurred by a company to convince a
potential customer to buy a product or service, including the website costs
as well as the costs involved in research and marketing.
Consumer-to-consumer . . . . . . . . . . . A commerce transaction in which customers engage each other in
transactions using a third-party company as an intermediary. For example,
the company creates a market place for customers to buy and sell goods.
D&O. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Issuers directors and officers.
D&O Insurance . . . . . . . . . . . . . . . . . . . Directors and Officers Liability Insurance; the liability insurance payable to
the directors and officers of a company, as indemnification for certain
damages or advancement of defense costs in the event any such insured
suffers such a loss as a result of a legal action (whether criminal, civil, or
administrative) brought for alleged wrongful acts in their capacity as
directors and officers or against the organization.
de minimis . . . . . . . . . . . . . . . . . . . . . . . . . . Too trivial or minor to merit consideration.
Depreciation . . . . . . . . . . . . . . . . . . . . . . . A method used to prorate the cost of an asset to the assets life, mainly
relating to write-downs of hardware, office and IT equipment
EBIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Earnings before interest and taxes; financial performance indicator.
EBITDA. . . . . . . . . . . . . . . . . . . . . . . . . . . . Earnings before interest, taxes and certain depreciation and amortization;
financial performance indicator.
E-commerce . . . . . . . . . . . . . . . . . . . . . . . Electronic commerce, commonly known as e-commerce; Rocket Internets
sector that engages in fashion retail, general merchandise retail, home and
living and office supply. Also refers generally to the trading of products or
services conducted via computer networks such as the Internet, typically
using the World Wide Web at least at one point in the transactions
life-cycle, although it may encompass a wider range of technologies such as
e-mail, mobile devices, social media and telephones.
E-commerce penetration . . . . . . . . . Online retail sales as percent of total retail sales.
Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . Summaries are made up of disclosure requirements known as elements.
Emerging stars . . . . . . . . . . . . . . . . . . . . Rocket Internets companies that have achieved a significant size beyond
the seed financing stage, generate revenue and show high revenue growth
potential. They are typically smaller than proven winners. Specifically,
emerging stars refers to: Wimdu, foodpanda, Helpling, Lendico, Zencap,
PAYMILL, CupoNation, FabFurnish and Zanui.
Entry Standard . . . . . . . . . . . . . . . . . . . . A sub-segment of the non-regulated market segment (Open Market
Freiverkehr) of the Frankfurt Stock Exchange (Frankfurter
Wertpapierbrse).
Equity method . . . . . . . . . . . . . . . . . . . . . An accounting method for companies whose results the Issuer does not
consolidate, but over whom the Issuer exercises significant influence. Under
this method, a companys net income is not included in the Group
G-2
consolidated income statement; however, the Group share of the earnings or
losses of the company is reflected in the line item Income/loss from
associated companies in the Group consolidated income statement. On the
Group balance sheet, the Issuers investments in companies accounted for at
equity are reported as Equity investments in associates. These
investments are initially recorded at cost and are subsequently adjusted to
reflect the Groups share of the net profit or loss of the associate.
EU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . European Union.
Euro, EUR and . . . . . . . . . . . . . . . . . . The legal currency of the euro area counties for the economic and monetary
union of the EU, including Germany and Luxembourg.
Fair value . . . . . . . . . . . . . . . . . . . . . . . . . . Valuation according to IFRS, which is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
Financial technology, fintech. . . . . Rocket Internets sector that is focused on bringing together borrowers and
lenders in regions and segments that are underserved by traditional banks to
provide loans as well as online and mobile payment services.
FTEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full-time equivalents.
GDP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gross domestic product.
German GAAP . . . . . . . . . . . . . . . . . . . . Accounting rules and standards set forth by the German Generally Accepted
Accounting Principles.
GFG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Global Founders GmbH (formerly European Founders Fund GmbH); one of
the Issuers existing shareholders.
Greenshoe Option . . . . . . . . . . . . . . . . . An option that the Issuer has granted to the Underwriters, which allows
them to acquire the Over-Allotment shares at the offer price less agreed
commissions.
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Issuer and the legal entities that are fully consolidated in the Issuers
consolidated financial statements.
Holtzbrinck . . . . . . . . . . . . . . . . . . . . . . . . Holtzbrink Ventures and its affiliates.
Holtzbrinck Ventures . . . . . . . . . . . . . HV Holtzbrinck Ventures Fund IV LP, Holtzbrinck Ventures NM GmbH &
Co. KG and HV Holtzbrinck Ventures Fund V GmbH & Co. KG.
Human resources . . . . . . . . . . . . . . . . . . Organization function responsible for recruiting and benefits administration.
IFRS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International Financial Reporting Standards as issued by the International
Accounting Standards Board and as adopted by the EU.
Intermediate holding
companies . . . . . . . . . . . . . . . . . . . . . . . Bigfoot GmbH, BGN Brillant Services GmbH and TIN Brillant Services
GmbH.
Internet penetration . . . . . . . . . . . . . . The percentage of a country or regions population who use a device to
access the Internet.
Internet Retail . . . . . . . . . . . . . . . . . . . . . Sales of consumer goods to the general public via the Internet. Consumers
purchase goods online through web platforms. Sales data are attributed to
the country where the consumer is based rather than where the retailer is
based. Internet retailing also includes orders placed through the web for
which payment is then made through a store card, an online, credit account
subsequent to delivery, or delivery of the product. Includes mobile retailing
commerce. Internet retailing excludes sales of products generated over
consumer-to-consumer sales sites, such as Kaymu.
ISIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International Securities Identification Number.
Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rocket Internet AG.
IT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information technology.
Joint Bookrunners . . . . . . . . . . . . . . . . The Joint Global Coordinators together with Citigroup Global Markets
Limited, Merrill Lynch International (acting under the marketing name
BofA Merrill Lynch) and UBS Limited.
G-3
Joint Global Coordinators . . . . . . . Joh. Berenberg, Gossler & Co. KG, J.P. Morgan Securities plc and Morgan
Stanley Bank AG.
Kinnevik . . . . . . . . . . . . . . . . . . . . . . . . . . . Investment AB Kinnevik; one of the Issuers existing shareholders through
its affiliate Emesco.
Key performance indicator(s) . . . . A type of performance measurement which a company uses to evaluate its
success, or to evaluate the success of a particular activity in which it is
engaged.
Latin America . . . . . . . . . . . . . . . . . . . . . The geographic region extending as far north as Mexico and as far south as
Chile and including Haiti and the Dominican Republic.
Latin America Internet Group
or LIG . . . . . . . . . . . . . . . . . . . . . . . . . . . MKC Brillant Services GmbH.
LPV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Last Portfolio Value (LPV) represents the latest third party valuation
(including a financing round of Lamoda, solely subscribed by its majority
owner Bigfoot I, which resulted in a substantially higher valuation of
Lamoda), secondary transactions or, with respect to some of the stakes in
the categories strategic participations and other investments, the values
assigned to them in connection with their contribution to the Issuer,
including distributions. Analysis disregards liquidation preferences;
intermediate holdings (Bigfoot, Bigfoot II, BigCommerce) have been
included using their sum-of-the-parts valuation as opposed to the latest
holding third party funding round valuation. The LPVs are unaudited
numbers that were calculated based on accounting and controlling records
of the Issuer.
MEIG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Middle East Internet Holding S. r.l.
Middle East . . . . . . . . . . . . . . . . . . . . . . . . The geographic region extending as far north as Iraq, as far south as Yemen,
as far west as Israel, and as far east as Afghanistan.
Millicom . . . . . . . . . . . . . . . . . . . . . . . . . . . Millicom International Cellular S.A.
MTN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mobile Telephone Networks Holdings (Pty) Limited.
New Shares . . . . . . . . . . . . . . . . . . . . . . . . The newly issued ordinary bearer shares with no-par value (Stckaktien)
from a capital increase against contributions in cash expected to be resolved
by the Issuers Management Board on October 6, 2014, to be approved by a
committee of the Issuers Supervisory Board on the same day, utilizing the
authorized capital resolved by an extraordinary shareholders meeting on
August 22, 2014 under exclusion of the subscription rights of existing
shareholders of the Issuer.
Nico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rocket Internets proprietary technology platform used by certain
companies in Rocket Internets marketplace sector.
NPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Net Promoter Score; a customer loyalty metric ranging from -100 to 100
that measures the willingness of customers to recommend a companys
products or services to others. It is used as a proxy for gauging the
customers overall satisfaction with a companys product or service and the
customers loyalty to the brand.
Offer Shares . . . . . . . . . . . . . . . . . . . . . . . The aggregate of New Shares and Over-Allotment shares.
Over-Allotment . . . . . . . . . . . . . . . . . . . . Under possible stabilization measures, investors may, in addition to New
Shares being offered, be allocated 4,941,176 additional shares from GFGs
holdings as part of the allocation of shares to be placed.
Payment method(s) . . . . . . . . . . . . . . . The method in which a customer submits payment in exchange for a good
or service. This occurs as part of e-commerce or where banking is
underused, through cash on delivery.
Peer-to-peer lending . . . . . . . . . . . . . . The practice of lending money to unrelated individuals, or peers, without
going through traditional financial intermediaries such as banks or other
traditional financial institutions. Lending takes place online through peer-to-
G-4
peer lending companies websites using various different lending platforms
and credit checking tools, typically lending money in the form of unsecured
personal loans.
PLDT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Philippine Long Distance Telephone Company; one of the Issuers existing
shareholders.
Private label . . . . . . . . . . . . . . . . . . . . . . . A brand controlled in-house, allowing the company flexibility in
assortment, size and price range opportunities. This can also allow a
company to react more quickly to market and customer demands, return
higher margins, and build customer loyalty. The term covers both own
developments and white label purchases from third parties.
Proven winners . . . . . . . . . . . . . . . . . . . . Rocket Internets companies which are its largest and most mature
companies, typically showing a last funding round valuation of at least
100 million and having a track record of at least two years. Specifically,
proven winners refers to: Dafiti, Lamoda, Zalora, Jabong, Namshi, Lazada,
Linio, Jumia, Home24, Westwing and Hellofresh.
Regional internet groups . . . . . . . . . Africa Internet Group, Asia Internet Group, Middle East Internet Group and
Latin America Internet Group.
Regulation S . . . . . . . . . . . . . . . . . . . . . . . Regulation S under the Securities Act, as amended.
Rocket Internet . . . . . . . . . . . . . . . . . . . . The Group and the other entities that make up its network of companies; the
commercial name of the Group.
Rule 144A . . . . . . . . . . . . . . . . . . . . . . . . . . Regulation 144A under the Securities Act, as amended.
Russia & CIS . . . . . . . . . . . . . . . . . . . . . . The geographic region consisting of Armenia, Azerbaijan, Belarus, Georgia,
Kazakhstan, Kyrgyz Republic, Moldova, Russia, Tajikistan, Turkmenistan,
Ukraine and Uzbekistan.
Securities Act . . . . . . . . . . . . . . . . . . . . . . United States Securities Act of 1933, as amended.
SKU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock keeping unit; a distinct item, such as a product or service, as it is
offered for sale that embodies all attributes associated with the item and that
distinguish it from all other items.
Smartphone penetration. . . . . . . . . . The percentage of a country or regions population who own and use a
smartphone.
SOP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stock option program.
Southeast Asia . . . . . . . . . . . . . . . . . . . . . The geographic region consisting of the countries east of India, west of New
Guinea, south of China and north of Australia.
Stabilization Period . . . . . . . . . . . . . . . The period in which stabilization measures may be taken. Such measures
may be taken from the date the Issuers shares are listed on the
non-regulated market (Freiverkehr) of the Frankfurt Stock Exchange
(Frankfurter Wertpapierbrse) and must be terminated no later than the 30
th
calendar day after this date.
Underwriters . . . . . . . . . . . . . . . . . . . . . . The Joint Global Coordinators together with the Joint Bookrunners.
United Internet . . . . . . . . . . . . . . . . . . . . United Internet Ventures AG; one of the Issuers existing shareholders.
U.S. dollar, U.S. dollar and
US$ . . . . . . . . . . . . . . . . . . . . . . . . . . . . The legal currency of the United States.
VAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Value-added tax (Mehrwertsteuer).
White label . . . . . . . . . . . . . . . . . . . . . . . . . Mass-produced generic products with no brand individualization.
Working capital . . . . . . . . . . . . . . . . . . . Financial indicator. Working capital is a measure of the companys
efficiency and financial health and represents the difference between the
companys current assets and current liabilities, i.e., the operating liquidity
available to the company.
Yoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rocket Internets proprietary technology platform used by all of Rocket
Internets financial technology companies.
Zalando . . . . . . . . . . . . . . . . . . . . . . . . . . . . Zalando SE (formerly Zalando GmbH and Zalando AG).
G-5
RECENT DEVELOPMENTS AND OUTLOOK
While a number of indicators still show that the global economy will continue to grow in the second half
of 2014, we do not expect an acceleration from the development seen in the first half of 2014. We expect that the
growth rates in 2014 will be lower than in 2013, in particular, with respect to the emerging markets. We believe
that major economies, such as Brazil, India, South Africa and Turkey, will remain below their growth potential.
For the Russian economy, an unfavorable development of the current political situation together with sanctions
that were recently imposed could even lead to recession. In addition, a number of major European economies
have shown no growth or even a contracting economy in the second quarter of 2014 with an uncertain outlook.
The further development of the world economy remains fragile and may be significantly negatively impacted by
external disturbances, such as an escalation of the current political situation in Russia and the Ukraine.
We expect Internet-based business, however, to profit from expected increasing smartphone and mobile
penetration rates in our target regions. We believe that the significant gap between online retail penetration rates
in the United States and in particular emerging market economies shows significant potential for e-commerce
businesses to outgrow the general economic development.
For the Group, the six months ended June 30, 2014 were characterized by increasing sales revenues and
increasing expenses, which, together with a decrease in income from associated companies, resulted in a negative
result from operating activities.
Our companies continued to increase their net revenues in the six months ended June 30, 2014. EBITDA
development of our companies in the six months ended June 30, 2014 was not uniform, as some of our
companies continued to invest in their growth and, accordingly, showed an increase in negative EBITDA on an
absolute basis. We expect that net revenues of our companies will continue to increase in the second half of 2014.
With respect to EBITDA, we believe that EBITDA of our proven winners that operate in the home and living
segment will improve in the second half of 2014, while EBITDA for our other proven winners will remain stable
or deteriorate on an absolute basis, due to investments in the growth of our proven winners, but will further
improve on a margin base. The recently imposed sanctions on Russia and Russias reaction to these sanctions
could have a significant negative impact on Lamoda and its results. Since June 30, 2014, we have signed
investment agreements relating to financing rounds in foodpanda and Spotcap.
In August 2014, the Issuer strengthened its network by bringing in new shareholders. These include
PLDT, a leading telecommunication services provider in the Philippines and a world-leading pioneer in financial
technology, including mobile banking, electronic remittance and mobile wallet services. We believe that PLDT
and we have many complementary strengths that will help us to significantly accelerate our presence and growth
in the financial technology sector. PLDT invested 333 million in cash in return for a 10.0% stake of the Issuer at
the time the investment was agreed. The purchase price reflects our expectation that PLDT will contribute know-
how and will position us to benefit from significant synergies. In addition, United Internet, a leading European
Internet specialist and one of our long-term partners, invested a total of 435 million for a 10.4% stake in the
Issuer based on the Issuers capital including the full PLDT investment. United Internets investment consisted of
333 million in cash and a contribution in kind valued at 102 million pursuant to the contribution agreement.
Finally, affiliates of Holtzbrinck, which hold a large number of investments in our companies and intermediate
holding companies, contributed some of their investments in return for shares in the Issuer. The share-for-share
transaction builds on a long-standing and successful partnership between Holtzbrinck and us and allows us to
progress our strategic objective of owning larger stakes in our companies.
In September 2014, we agreed with the other shareholders of the fashion companies held by Bigfoot I,
Bigfoot II and BigCommerce to group these companies in a single emerging market focused global fashion
group. This restructuring will affect Dafiti, Lamoda, Zalora, Jabong and Namshi and is expected to take effect in
December 2014.
Except as mentioned above, no significant change in our financial or trading position has occurred since
June 30, 2014.
O-1
SIGNATURE PAGE
Berlin, Hamburg, Frankfurt, London, September 2014
Rocket Internet AG
Signed by: Oliver Samwer Signed by: Peter Kimpel
Joh. Berenberg, Gossler & Co. KG
Signed by: Stefan Ries Signed by: Marc Gei
J.P. Morgan Securities plc
Signed by: Klaus Hessberger
Morgan Stanley Bank AG
Signed by: Christian Zorn Signed by: Kai Ghring
Merrill Lynch International
Signed by: Klaus Hessberger
J.P. Morgan Securities plc
on behalf of Merrill Lynch International
Citigroup Global Markets Limited
Signed by: Stefan Ries Signed by: Marc Gei
Joh. Berenberg, Gossler & Co. KG
on behalf of Citigroup Global Markets
Limited
Joh. Berenberg, Gossler & Co. KG
on behalf of Citigroup Global Markets
Limited
UBS Limited
Signed by: Christian Zorn Signed by: Kai Ghring
Morgan Stanley Bank AG
on behalf of UBS Limited
Morgan Stanley Bank AG
on behalf of UBS Limited
SIG-1