Investor Presentaiton

Focus on High Margin, Long-tail Categories • Shopee's strength is in the long-tail, high SKU categories of Fashion, Beauty & Home Décor. • These categories fit well with a C2C model, due to the diversity of supply-side offerings. Category margins tend to be much higher too (for example, Fashion and Beauty generally carry ~50-70% value chain margins). One evidence of this is Tmall's higher take-rates on these verticals, which we believe is a good Shopee proxy. Fashion and Beauty tend to have higher order frequency rates too, with Shopee at ~3.6x orders per month, Taobao at ~4-5x per month, etc. This compares to Electronics retailers, where order frequency can be as low as 0.2x orders per month (albeit on a much higher Average Order Value each time). "One of the ways we do that is we look for services that attract a lot of young female users initially. It's a service that could make sense for a whole lot of people, but for whatever reason, the initial user base is young and female. We think that young women are the early adopters of popular culture. They're kind of hit-makers for the rest of society." - Jeremy Liew, Lightspeed Venture Partners Potential Take-Rates At Maturity (Tmall) Tmall Commission Fee Schedule (Sept 2018) 3P Categories 5.0% 5.0% 5.0% 4.0% 1P Categories 2.0% 2.0% 2.0% Shopee vs. Lazada Shopee Seller Presentation (2018) SI → 7 markets Geographies → SG, ID, TH, VN, PH, MY, TW Top Categories Customer Demographics 天猫 TMALL 5 markets CN, HK, TW, SG, MY Fashion Health & Beauty -80% female Fashion Health & Beauty LAZADA Effortless Shopping → 6 markets SG, ID, TH, VN, PH, MY Electronics-Mobile/ Laptops Electronic accessories -55% female 70% between 24-32 yrs. -50% female <30% 25 yrs and younger >40% 25 yrs and younger old Social Features In-app chat "Follow" feature → In-app chat → None Fashion Beauty & Makeup Home Décor & Furniture Household Goods Food & Electronics Appliances Beverage Free Shipping for Sellers → YES (full or partial subsidy after min spend) No No 0% commission in SEA markets Commission and Fees 5% in TW ■Tmall Take-Rate % Channel No fees Mobile first 90% mobile orders. Localized apps 2-5% commission -US$7,000-45,000 security deposit required Annual service fee Website first Single app for all markets 4% commission on all products, except some electronics (1%) 2% payment fee Website first -60% mobile orders Single app for all markets HAYDEN CAPITAL Fred Liu, CFA | [email protected] 13

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