Intershop @ Jump Start E-Commerce Platforms Stephan Leschke - Intershop March 10th 2010

Agenda Company Introduction E-Commerce Market The New Shop Manager E-Commerce Trends & Visions

Intershop – The E-Commerce Company Corporate Data: Software- and Solution Vendor for E-Commerce Founded 1992 in Jena Headquarter in Germany; Offices in Australia, USA, Bulgaria Over 300 international Customers Ca. 100 Partner Ca. 300 Employees worldwide Introduction: Let me briefly introduce myself and my company Intershop. My name is … And now some key figures about Intershop Intershop is the E-Commerce Company We are providing software and solution for the complete E-Commerce process chain. Starting with the “shop software” through “technical” and “business consulting” services up tp “Full Service E-Commerce” including “Online Marketing” and “Long Tail Retail”. Intershop is an international operating company with offices around the world, serving with app. 300 employees - and of course with our Partners - more than 300 customers. Bridge:  As you might imagine, Intershop has gone through changeful times in the last 18 years. Interestingly Intershops development can be mapped very well to the Gartner Hype Cycle. 3

Intershop – Development Dot Com 2008 € IPO Visibility Today (Sweet Spot) Rock bottom Founding Intershop Introduction: You all know the Gartner Hype Cycle a graphic representation of the maturity, adoption and business application of specific technologies. This hype cycle can be perfectly mapped to the development of Intershop: Dates: 1992: Founded 1994: First E-Commerce Product 1998: IPO 2000: Dot Com Crisis 2005: Reached bottom line 2007: Initiated Turnaround 2008: First positive year in history of Intershop 2009: Stabalised turnaround and sustainable growth Today: we are in the “sweet spot” of the sizzling market E-Commerce Bridge:  Lets zoom into this sweet spot and take a short closer look at Intershops performance. 1990 2000 2005 2010 2015 Technology Trigger Peak of Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity

Intershop – Positive and Stable after Turnaround Introduction: What you see here is the revenue and EBITDA development of Intershop in the last four years. Background Info: 2005: 17,8 (revenue); -2,9 (EBITDA) 2006: Negative results 2007: Start of the turnaround ( higher revenue and better EBITDA) 2008: Successful turnaround and first positive year in the history of Intershop 2009: Stabalised turnaround and sustainable growth Bridge:  As I mentioned the turnaround was supported by the sizzling E-Commerce Market. So lets have a short look at this specific market and the competitive environment. Net Revenue EBITDA

Agenda Company Introduction E-Commerce Market The New Shop Manager E-Commerce Trends & Visions 6

E-Commerce Market – Development in Europe Commerce Sales in € bn CAGR: 13% Introduction: Lets start with some interesting market figures first. The Western European e-commerce market will continue to grow strongly – with an average of 13% Comparing the leading e-commerce markets, Germans have spend most online on a per capita basis compared to consumers in the other leading e-commerce countries We are to the right time in the right market Background Info: This pile chart only refers to B2C sales, not to B2B sales, which have a multiple of 10 compared to the B2C market. Germany Source: TNS Infratest, Bundesministerium für Wirtschaft und Technologie

E-Commerce Market – Booming and Changing 34,2 Mrd. € 29,4 Mrd. € 21,2 Mrd. € Introduction: Looking at the evolution of the three areas „Online – E-Commerce“, „Mail Order“ and „Catalog selling“, we see an interesting development. 2000: Huge market for catalog selling and the beginning of mail order and e-commerce 2010: More than 1/3 of the market is already e-commerce. Mail order hat also a significant growth, but not that huge as e-commerce! 2020: Looking further into the future, e-commerce is taking over more than 2/3 of the market. Mail order will stagnate, catalog selling will vanish. As I said before: We are to the right time in the right market – e-commerce is the place to be Bridge: Even if we were the first mover in this prospering market, we are not alone;-) E-Commerce Mail Order Catalog selling 2000 2010 2020 Quelle: bvh, Werte 2009 Quelle:http://www.excitingcommerce.de/

E-Commerce Landscape Introduction: POS Rich Media Pay-ment CRM Finance Credit Control PIM / PDM Logistic Service Hosting Market-places E-Marekt-ing Stat-istics Introduction: E-Commerce is much more than a web-shop. It is crucial to understand the customers needs and more than that, have answers and solutions to solve their problems You have to act along the complete and complex e-commerce process chain. A short example of the scope: The best web-shop is not worth nothing, if none can find it – you need online marketing You can buy online with a few clicks, but it takes weeks to ship the parcel – you need good logistics To manage all this – you need e-commerce know-how end skills Bridge: The extension of the skill set on the one hand and the changing e-commerce environment on the other hand needs to be adopted within the online business. Companies need a new online managers, who orchestrate the complex E-Commerce eco-system. We made a survey amongst customers to find out how they handle this.

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Changing Markets – New Job Description E-commerce is management Products Markets Traget Groups Competition Partners Marketing Processes Suppliers Introduction: One of our key findings was that E-commerce is all about management, with running an online store increasingly requiring business expertise alongside technical skills. Background Info: And as the “Business Process Management” wave came up with new job descriptions like an “CPO” or an “Process Architect”, the same is happening in the E-Commerce environment as well. The new (and or extended) job description of the person who is responsible for the e-commerce initiatives is “Shop Manager”. The Shop Manager is not only an IT guy, coding the web-shop. He is much more than that. The new Shop Manager has to manage: Products Market Competition Target groups Marketing strategies Suppliers Partners Logistic providers Business Processes Shop Bride: And besides that, he has to take care of the CORE – the revenue of the web-shop. Press Release 09.02.2010: Intershop Survey: Shop Managers Now Need a Broader Skill set Today’s e-commerce managers require both technical and business skills Tools for analyzing and managing online sales needed Shop Managers are key to e-commerce success Jena, Germany, February 9, 2010 – E-commerce is all about management, with running an online store increasingly requiring business expertise alongside technical skills. That’s the key finding of a recent survey by e-commerce provider Intershop. As well as being fully conversant with the product range, market, and the competition, today’s online store managers need to know where their target groups are and which marketing strategies will reach them. They must establish relationships with suppliers, partners, and logistics providers and negotiate terms. Analyzing and optimizing processes is also part of the job. According to the online sellers surveyed, the management information and tools needed to perform these tasks are often lacking. For example, fashion retailers cannot maximize sales by simply presenting a new collection four times a year, from spring through to winter. They need to encourage customers to make purchases via up-to-the-minute offers on the homepage or in newsletters, themed pages that are changed regularly, or specials for loyal customers. This can be a daunting task if managing or updating product data is complicated and the approval procedure is lengthy. Few Shop Managers can create themselves new Web pages or their components in a comfortable manner, preferably in real-time. Online success is measured by factors, such as response to marketing activities, the level of returns, the conversion rate for recommendations, individual customer value, and delivery performance. The companies surveyed expressed a wish for intuitive tools that continuously evaluate and improve these criteria by enabling shop managers to take corrective action themselves. Peter Mark Droste, Management Board member of Intershop Communications AG: “Shop Managers are crucial to a retailer’s image and success. Many companies recognize this by not only investing in qualified staff, but also by providing an appropriate work environment that supports their demanding role.”

Changing E-Commerce Challenges Initial Costs Operational Costs Error Ratio Handling Duration Return Ratio Reach Conversion Rate Attractiveness Level of Automation Basket Value The new Shop Manager drives e-commerce initiatives Introduction: The Shop Manager drives all e-commerce initiatives and therefore needs expertise in several areas, e.g. IT, business, retail, sales, marketing, logistics, etc. Of course the main focus of the Shop Manger is still to leverage the online shop and generate more revenue. That means, he has to achieve the following goals: Sink: Initial Costs Operational Costs Error ratio Handling duration Return Ratio Leverage: Reach Conversation Rate Attractiveness Level of automation Basket value Bridge: As you see, to be a Shop Manager is much more than just driving the web-shop – and it is even more complex.

Strategic Key Factors for Success in E-Commerce Corporate Identity Product mix Marketing budget # Products Collections Revenue Market segments Pricing Licensing Product groups Brand value Cognition Return reasons Strategy Returns Target group Basic / trend products Process flexibility Brand Assortment Newsletter Channels Capacity Lead time Strategic Key Factors for Success in E-Commerce Loyalty Program Countries TV Payments Affiliate program Service quality Logistics Reach Print Sponsoring Debt collection Subsidiaries Carriers 360° views Call Center Languages Catwalk videos Customer Service Innovation Web 2.0 Pick & ship lead time ePayment Delivery times Recommendations Virtual fitting room Introduction: To make an e-commerce initiative successful, several thinks have to be taken into account. This map shows the strategic key success factors for e-commerce. The interesting part is, that only a few factors belong to IT (lower left corner), the rest is more or less dedicated to the business. Bridge: The aim of each e-commerce software or solution vendor should be to checkmark each of the items of this map to optimise the Shop Manager support. Payment Refunds Return time Mobile Usability Personalization Technology Self-services Maintenance Stability Usability tests Navigation Business Plan Interfaces Features Scalability Abandoned baskets Customer retention Performance Publishing lead time Call Center complaints Conversion rate 13

Optimal Shop Manager Support E-Commerce Solutions enable the Shop Manager to optimise the E-Commerce processes in all stages of the E-Business life cycle. Introduction: If such a vendor would create a mission statement, it could look like this: “E-Commerce Solutions enable the Shop Manager to optimise the E-Commerce processes in all stages of the E-Business life cycle.” You can imagine, that the Intershop mission statement goes into this direction ;-) Bridge: We now have seen, what the challenges and the tasks of the “new Shop Manager” are. In addition to that, he has to scan the market, look into the future and find visions and trends in e-commerce.

Tailored Solutions for Shop Managers Business Requirements: Business focus (for Shop Managers) Business and Technical Reporting Tools (CIC) Usability enhancements (e.g. CMS, Storefront Editing) Business Process Optimisation (e.g. Check Out) Interoperability & Integration Payment Framework SCOOBOX – Social Commerce Out Of the Box Search Engines Advanced Marketing Toolset Online Marketing (SEO/SEM) Merchandising / Promotions Advanced Recommendations Web 2.0 Personalisation Social Media Mobile NEW 6.4 15 15

Agenda Company Introduction E-Commere Market The New Shop Manager E-Commerce Trends & Visions 16

Trend – Cloud Computing Feed Engine E-Commerce Search SEO/SEM eMail-Marketing Order Management Couponing Merchandizing Enfinity Suite Full Service Enfinity Suite Managed Service Enfinity Suite on-premise Introduction: Many IT-trends are adaptable to e-commerce as well. We had the “SOA” and the “BPM” Hype after that we had “SaaS”. Lets look at the tend we are facing at the moment - “Cloud Computing”. Cloud Computing – as well as the other trends – also appears in e-commerce environment. All features and functions of state of the art web-shops are nowadays available in the cloud. No IT-infrastructure is needed Pick and choose only what you want and need – no coding, only configuration Available “on-demand” - everywhere and any time Bridge: Along with that trend comes another trend, e-commerce everywhere and any time – m-commerce. 17 17

Trend – Mobile Commerce Omni-present Mass Media Identified Person-alised Realtime Localised Interactive Multi-fuctional Introduction: E-commerce everywhere means e-commerce in your pocket. Smart phones are the devices of the future: Smart phones are everywhere – everyone has one Smart phones are multifunctional and they make internet mobile You can interact in real time Backup Info: Mass Medium Omnipresent Identifiable Real Time Interactive Multifunctional Localizable Personalizeable Bridge: So, if this is the device of the future, what are the figures of mobile internet usage? 18 18

Trend – Mobile Commerce European mobile Internet users (millions) Introduction: Forrester did a research on that and found out, that the internet usage on mobile devices will tipple till 2014. Bridge: So, it could be a wise move for e-commerce vendors to go mobile ;-) Forecast: Western European Mobile Internet Penetration, 2009 To 2014 August 2009 “Western European Mobile Forecast, 2009 To 2014” 19 19

Trend – Mobile Commerce 20

Trend – Social Commerce Community Recommen-dation Blog Comparisons Twitter Reviews Facebook Tell a friend Introduction: Web 2.0 is one of the “more mature trends”, but nevertheless a trend. We are only at the beginning. “Make users / customers to supporters or even salesmen” Examples for Instruments for more user / customer interaction are: Community Blog Twitter Facebook Tell a friend Recommendation Comparisons Reviews Bridge: But these “common” features are only the beginning… 21 21

Trend – Social Commerce Community Recommen-dation Blog Comparisons Twitter Reviews Facebook Tell a friend Introduction: What you see here is the complete Social Commerce landscape (for Germany 2009), so you see, there is a lot more to come… Bridge: What we will experience is that all these services are parts of the puzzle e-commerce. And if they are all put together you see a new and compelling picture of E-Business. 22 22

Emotional Shopping Introduction: All these bits and pieces brought together and merged into one storefront, flexibly handled, controlled and monitored lead to a new customer experience – emotional shopping. What we see here is an example of how a new shop could look like. Several thinks are integrated here: Intuitive and easy to navigate (zoom & price selection via slider) Several product views (incl. detailed zooms and user generated content – videos) gimmicks like animated icons and button (“put into basket” put something into basket ) Integration of Web 2.0 functionalities like community User customizable look and feel Integrated video shopping

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Corporate Headquarters Intershop Communications AG Intershop Tower D - 07740 Jena Germany Telefon +49-3641-50-0 Fax +49-3641-50-1111 info@intershop.de www.intershop.de Americas Headquarters Intershop Communications, Inc. 282 2nd Street, 2nd Floor San Francisco, CA 94105 USA Phone +1-415-844-1500 Fax +1-415-844-3800 info@intershop.com www.intershop.com SoQuero GmbH - Online Marketing - Ludwigstraße 31 D-60327 Franfurt am Main Germany Telefon +49-69-2549-490 Fax +49-69-2549-4949 info@soquero.de www.soquero.de © 2009 Intershop Communications AG. Alle Rechte vorbehalten. Alle Warenzeichen sind Eigentum ihrer jeweiligen Inhaber. Angaben in diesem Dokument dienen nur der Produktbeschreibung und stellen keine zugesicherten Eigenschaften im Rechtssinn oder Garantien dar. Garantien bedürfen einer ausdrücklichen und schriftlichen Bestätigung von Intershop. Intershop behält sich Änderungen und Anpassungen vor.