A leading player in the German price comparison market

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 Introduction
Corporate facts

• Founded in May 2000

• Mgmt. by founders: Dr. A. von Sonntag, C. Habermehl & M. Sinner

• Axel Springer AG majority shareholder (74,9%) since 09/2006

• Long-term commitment of founders

• Current location: Berlin

• 120 employees, of which more than 25 are programmers

• Profitable since 2003

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 Introduction
Products of Idealo

• Since 2001 online with price comparison website www.idealo.de

• July 2004: launch of www.idealo.at (Austria)

• End of 2005: online with flight price comparison website flug.idealo.de

• October 2006: www.idealo.co.uk

• March 2007: Idealo.de rated best in „Studie Software-Initiative“ review

• May 2007: UK version of flug.idealo.de

• August 2007: www.idealo.fr (France)

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 Introduction
Current fields of business

• Product price comparison in DE, AT, UK & FR (core market)

• Flight price comparison in DE, AT & UK

• Search engine marketing agency

• Data mining & market research

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 Product price comparison
www.idealo.de is the core business of the company

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 Product price comparison
Mobile version at http://mobil.idealo.de or www.idealo.mobi

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 Product price comparison
Price comparison www.idealo.de

• Permanently in the top 3 of German price comparison websites

• Continually updated catalogue by the editorial department

• In excess of 400,000 products and more than 1.5 M. offers

• More than 400 categories

• More than 8,000 shops

• More than 25 M. page impressions and 6 M. visits per month

• 2/3 contribution to company’s revenues and EBIT

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 Product price comparison

Nielsen NetRatings – Unique Audience (000) – Shopping Directories Germany

Market
3.500 18.000

17.000
3.000

16.000
2.500

15.000
2.000

14.000

1.500
13.000

1.000
12.000

500
11.000

0 10.000
Jan 06 Feb. 06 Mar 06 Apr 06 May 06 Jun 06 Jul 06 Aug 06 Sep 06 Oct 06 Nov 06 Dec 06 Jan 07 Feb. 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07

idealo.de billiger.de Shopping.com guenstiger Yahoo! Shopping eVendi.de PreisTrend

doorone.de Preisvergleich.org Preislexikon.de electronicscout24 Evita market

• Very competitive market: 20 companies are in battle

• Market size 15 M. Unique Users, nearly as big as Ebay.de (18 M. UU)
• Idealo is stronger growing than the market
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 Product price comparison
Business models of price comparison sites in German market

• CPC (Cost Per Click) – 80%

• CPS (Cost Per Sale) – 20%

• Banner- & Skyscraper-Advertising

• Paying for placement in listings – not at idealo

• Market research – very small segment for idealo

• Adsense-Arbitrage – idealo is not active in this area

• White-Labeling – very little activity, only Axel Springer Sites

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 Product price comparison
How idealo.de comes out on top – USPs in depth

• One of the most complete product catalogues in the German market

• High actualisation frequency of shops data

• Strong editorial team, search engines favour „Unique Content“

• High portion of traffic comes through search engines

• Product design is enhanced for Search Engine Optimisation

• Linking from Axel Springer sites is a huge asset

• Print campaign (2 x 5 M. EUR gross) in Axel Springer titles is a success

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 in d ex (IV /2 0 0 2 = 1 0 0 )
IV

0
500
1.000
1.500
2.000
/2 2.500
00
I/2 2
00
II/ 3
20
0
III 3
/2
0
IV 0 3
/2
00
I/2 3
00
II/ 4
20
0
III 4
/2
0

products
IV 0 4
/2
00
I/2 4
00
II/ 5
20
0

categories
III 5
/2
Growth factors: number of products & categories

0
IV 0 5
/2
00
I/2 5
clicks
00
II/ 6
20
0
III 6
/2
0
IV 0 6
/2
00
I/2 6
00
II/ 7
20
07
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Product price comparison
 Cooperation with Axel Springer AG
Advertising print campaign in AS titles

• First flight from November 2006: 5 M. EUR gross

• Second flight from August 2007: 5 M. EUR gross
• “Print wirkt” – print advertising works
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 Cooperation with Axel Springer AG
The success of print advertising – impact on product price comparison

6.000.000 2.000

Print marketing spendings in thousand €

1.800
5.000.000
1.600

1.400
4.000.000
Clicks idealo.de

1.200

3.000.000 1.000

800
2.000.000
600

400
1.000.000
200

0 0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
06 06 06 06 06 07 07 07 07 07 07 07 07

• Clicks up by 40% (August 07/August 06)

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 Cooperation with Axel Springer AG
Print advertising campaign led to significant increase in brand awareness

Source: Market survey of Computer Bild (copy test)

Percentage of
readers

80%
69%
70%

60%

50%
38%
40%
31%
30%

20%

10% 7%

0%
Oct. 2006 Apr. 2007

Idealo known Idealo already used

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 Cooperation with AS AG
Whitelabel intergrations of idealo.de price comparison into major AS sites

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 Cooperation with AS AG
Editorial placements

BILD-Zeitung 20.09.2006

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 Cooperation with Axel Springer AG
Editorial placements

Hamburger Abendblatt 21.01.2007

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 Product price comparison international
International product price comparison - schedules

• July 2004: launch of www.idealo.at with significant share since 2006

• October 2006: launch of www.idealo.co.uk
• August 2007: launch of www.idealo.fr
• Planned for 2008:
– www.idealo.es (Spain)
– www.idealo.it (Italy)
– www.idealo.pl (Poland)

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 Product roadmap
Growth potentials for idealo

• Verticals: products, electricity, gas, hotels, car rental

• Features: newsletter, community, bonus systems, affiliation

• International: .fr, .es, .it, .pl

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