Strictly Confidential

CHINA’S CROSS-BORDER TRADE

ADJUSTING TO THE E-COMMERCE PHENOMENON

Indonesia Philippines Malaysia Thailand Singapore Vietnam Hong Kong

James Chang, Co-Founder & Cross-border COO

Strictly Confidential

▪ Strong GDP growth with expected GDP growth: 5.5%

p.a. by 2020

▪ Young and growing population as 60% of SEA

population will remain younger than 35 years old in 2020

▪ Rapid urbanization is propelling the growth of tier 3/4

cities that lack offline retail alternatives

▪ Globally, B2C online retail sales has taken off when

mobile-internet penetration hit 35%, already case in

ID,TH,MY,SG

▪ Significant increase in mobile penetration and

accelerated shift to online

▪ Over half of total traffic on Lazada’s platform comes

from mobile

Booming

Macro-

environment

Leapfrogging

Infrastructure

Barriers with

Mobiles

Rising

Adoption of

Online

Shopping

3 Mega Trends in South East Asia

2

Strictly Confidential

Fastest Growing Internet Market Expected to have ~480M online users by 2020

Source: Google | Temasek e-Conomy SEA, eMarketer

SEA Internet Users Projection 2015 - 2020

~260M

Online Users

3

Strictly Confidential 4 Source: 2016 Bain & Company, Inc. “Can Southeast Asia Live Up to Its E-commerce Potential?

US

CHINA

SEA

% of E-Commerce Sales as Total Retail Sales

Shows Potential for Further Growth

CR

OSS

BO

RD

ER

B2

B

B2

C B2

B2

C

Strictly Confidential

LAZADA OUR STORY

Strictly Confidential

Indonesia

Thailand

Philippines

Malaysia

Vietnam

LAZADA ONLINE RETAILER

Strictly Confidential

Introduction of Cash-on-delivery

LAZADA PIONEER PAYMENT

Strictly Confidential

Start of Lazada Express

LAZADA REINVENT LOGISTICS

Strictly Confidential

1 Online Revolution 12.12 st

LAZADA “OUR” SINGLES DAY

Strictly Confidential

Start of Marketplace

LAZADA 3P PLATFORM

Strictly Confidential

Start of Fulfillment by Lazada

LAZADA SUPERIOR CX

Strictly Confidential

Cross-border Trade

LAZADA BREAKING BORDERS

Strictly Confidential

LAZADA PART OF ALIBABA ECOSYSTEM

Strictly Confidential

CHALLENGES LAZADA SOLUTIONS

• Global Shipping network

• Own first mile, last mile &

sorting with Lazada Express

• Fulfillment network

• Payment / remittance alliance

• Undeveloped infrastructure

• Geographic diversity

• Scattered logistics network

• Complex regulations &

customs

• Local payment methods &

cash on delivery

LAZADA LOGISTICS SEA

Strictly Confidential

LAZADA LOGISTICS VISION

“Create the leading logistics

ecosystem in Southeast Asia”

Strictly Confidential

75 PARTNERS +

MAIN SORT CENTERS 5

LAZADA DELIVERY NETWORK

“Assigning the right partner for each parcel”

Strictly Confidential

LASTMILE HUBS “Raising the bar: 25% faster deliveries with better economics”

78

LAZADA LAZADA EXPRESS

Strictly Confidential

Medan

Palembang (2016)

Balikpapan (2016)

Surabaya Jakarta

11 FULFILLMENT CENTERS “Closer to our customers for high quality deliveries"

LAZADA LAZADA FULFILLMENT

Strictly Confidential

LAZADA LAZADA GLOBAL SHIPPING

• Express Outbound Center • Global Transshipment Center • Global Reverse Logistics Center