Investor PresentationFinancial Year 2017/18

DisclaimerThis presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly orindirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the United States, Australia, Canada or Japan or any jurisdiction where applicablelaws prohibit its viewing, release, distribution, publication or use.This Presentation must not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or any solicitation of any offer to purchase or subscribefor any securities of Otto (GmbH & Co KG) (the "Company"), in any jurisdiction. If any such offer or invitation is made, it will be done so pursuant to separate and distinctdocumentation in the form of a prospectus, offering circular or other equivalent document (a "prospectus") and any decision to purchase or subscribe for any securities pursuantto such offer or invitation should be made solely on the basis of such prospectus and not these materials. Neither the Presentation, nor any part of it nor anything contained orreferred to in it, nor the fact of its distribution, should form the basis of or be relied on, in connection with, or act as an inducement in relation to, a decision to purchase orsubscribe for or enter into any contract or make any other commitment whatsoever in relation to any such securities.The information contained in this Presentation has been provided by the Company and has not been verified independently. Unless otherwise stated, the Company is the sourceof information.No reliance may be placed for any purpose whatsoever on the information or opinions contained in the Presentation or on its completeness, accuracy of fairness. Norepresentation or warranty, express or implied, is made or given by or on behalf of the Company or any of its respective directors, officers, employees, agents or advisers as to theaccuracy, completeness or fairness of the information or opinions contained in the Presentation and no responsibility or liability is accepted by any of them for any suchinformation or opinions. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections,targets, estimates or forecasts contained in this Presentation and nothing in this Presentation is or should be relied on as a promise or representation as to the future.This Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed in goodfaith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financialcondition, performance, or achievements of the Company, or industry results, to differ materially from the results, financial condition, performance or achievements expressed orimplied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on theseforward-looking statements. These factors include those discussed in the Company's public reports which are available on the website of the Company at Company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. All features in this Presentationare current at the time of publication but may be subject to change in the future. The Company disclaims any obligation to update or revise any statements, in particular forwardlooking statements, to reflect future events or developments.Statements contained in this Presentation regarding past events or performance should not be taken as a guarantee of future events or performance.Prospective recipients should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters, and are to make their own assessmentsconcerning such matters and other consequences of a potential investment in the Company and its securities, including the merits of investing and related risks.2

Agenda31The Otto Group at a glance2Financial review3Strategy and outlook4Key investment considerations

The Otto Group is one of the world’s largest onlineretailers Founded as the mail-order company“Otto Versand“ in 1949, the Otto Grouphas been a family business since itsfoundation Today, the Otto Group consists of morethan 100 major companies operating inmore than 30 countries in Europe,North and South America and Asia The Otto Group is divided into threestrategic segments: MultichannelRetail, Financial Services and Services The Otto Group is one of the largestonline retailers worldwide 2017/18 headline figures:Revenues: 13.7 bnEUREBITDA: 750 mEUR 52,000 employees4

Otto Group: A success story for more than 65 years 2000s to present1980s and 1990s1970s1950s and 1960sFoundation as a mail order business1949Werner Otto established the “OttoVersand” mail-order business1950The first catalogue is publishedCEO5Werner Otto(1949-1966)Development of the segmentsFinancial Services and Services1969/74Establishment of the Financial Servicessegment with the foundation of HanseaticBank and EOS Group1972Development of the Services segment withthe foundation of Hermes VersandServicesGünther Nawrath(1966-1981)Transformation and innovation inthe e-commerce ageInternationalisation of the OttoGroup1974-1998Expansion to France, UK, the Netherlands,Japan, Spain, Austria, Italy, Hungary,Switzerland, USA1987Otto is the world‘s largest mail orderbusiness2010/2011Internet sales exceeded catalogue sales forthe first time2015Dr. Michael Otto transfers controlling stake toMichael Otto Foundation2016Trend towards mobile commerce: Mobileexceeds desktop traffic for the first time2017Alexander Birken takes over as 5th CEO inthe company’s historyDr. Michael Otto(1981-2007)Hans-Otto Schrader(2007-2016)Alexander Birken(since 2017)

Ownership position of the Otto familyOtto family and Michael Otto Foundation ( 98%)OTTO Aktiengesellschaftfür BeteiligungenGSV Aktiengesellschaft fürBeteiligungen More than 98% of the shares in Otto (GmbH & Co KG)are owned by members of the Otto family and by theMichael Otto Foundation Dr. Michael Otto transferred his controlling stake to the“Michael Otto Stiftung”, a non-profit foundation, in 2015.He continues to have influence through his position asthe chairman of the Foundation BoardOtto (GmbH & Co KG) As a family-run business, the Otto Group follows a longterm oriented business strategy The Otto family pursues a conservative dividend policyMultichannelRetail6FinancialServices Otto (GmbH & Co KG) serves both as holding companyand as the operating entity for the core brand OTTO,the Otto Group’s brand with the highest salesServices

Sustainability is part of the Otto Group’s core valuesSustainability is a matter of conviction to our family owners Sustainability has been a guiding principle for the Otto Group since the 1980s Our family owners are also committed to sustainability with activities outside the Otto Group,e.g. via the Michael Otto Foundation for Environmental ProtectionCorporate Responsibility is a top-management task7 Reconciling economic goals with social and ecological sustainability is a central part of theshareholders’ mandate to the Executive Board All members of the Executive Board are incentivised to reach the Group’s CorporateResponsibility targets

Besides Germany, the Otto Group is present in morethan 30 countriesInternational market presenceMore than 100 majorcompanies, presence inover 30 countriesRevenue by region 2017/18Largest online shop for furnitureand living in Germany ( Germany /Russia)21.6%Germany60.5%NorthAmerica13.9%Asia / other1.7%More than 100 venturecapital investments 8Russia2.4%The Otto Group’s main markets are developed, stable economies with strong macroeconomic fundamentalsNo dependency on more volatile emerging markets, but well positioned for future growth in markets such as Russiaand Eastern Europe

A diversified business: The Otto Group is a globallyactive group of retailers and retail-related serviceprovidersMultichannel Retail(E-Commerce, catalogue sales and retail stores)Financial ServicesServices(Receivables management,innovative financial services)(Logistics, procurement and otherretail-related services)The Otto Group’s strategic setup makes it a unique proposition with no direct peers9

Multichannel Retail Domestic and foreign retailers with threedistributionchannels:e-commerce,catalogue and over-the-counter retail stores Product range includes fashion, shoes andlifestyle articles, furniture and homeaccessories, toys as well as electronics,sports and leisure goods Broad brand portfolio with diversificationacross countries, customer groups and priceranges E-Commerce is the main growth driverFinancial figures for the segmentIn ITDA margin3.9%4.1% 7.4%** Growth adjusted for impact from harmonisation of financial calendars: 5.3%10

E-Commerce is the main growth driver In FY 2017/18, the Group significantly increased online revenues by 12.3%*. E-commercerevenues now stand at 7.9 bnEUR E-Commerce is by far the most important distribution channel of the Otto Group,representing 75% of the Group‘s retail revenues in FY 2017/18. The operating entity OTTO( generates 95% of its revenues onlineRevenue by distribution channel in the Multichannel Retail 2013/142014/152015/16* Growth adjusted for impact from harmonisation of financial calendars: 017/18OTC retail

The Otto Group‘s Multichannel Retail portfolio is highlydiversifiedFashionFurnitureKey Take-AwaysThe Otto Group‘sretailers sell awide range ofproduct groups Different marketdynamics andcompetitive environmentfor each product rangeand target customer groupSpecialistsPRICECONSCIOUSAFFLUENT. and are highlydiversified interms of targetcustomers.12“DIGITAL NATIVES““BEST AGERS“ Strong synergiesbetween brands withsimilar product / customerpositioning (e.g. shared ITinfrastructure, centralisedpurchasing)

Strong market positioning and differentiation fromcompetitionStrong market positioningKey differentiating factors vs. competitorsOnline sales top 10 players in Germanyin mEUR (in 2016*)Amazon.de8.123Otto GroupzalandoProduct positioning4.915 Highly specialised niche shops 517Conrad472Tchibo450Alternate432H&M373 and very wide product range ingeneralist shops withmarketplace approach (OTTO)Market shares** Integrated service offering withfully-owned logistics and 2man-handling (Hermes Group) “Consumption enabler“ withwide range of payment optionsincl. credit/installmentsAmazon 18.4%Otto Group 11.1%Zalando 2.5%Others 68%* Source: Study e-commerce market Germany 2017 by EHI Retail Institute, Cologne, and Statista, Hamburg; OttoGroup‘s sales equal the sum of sales of all Otto Group entities in the “Top 100 Online-Retailers 2017“ ranking.** Market share estimate based on HDE Online-Monitor 2017. Total online sales Germany in 2016: 44.2 bn. Euro.Clear no. 2 in German e-commerce13 Different product focus vs. keycompetitors, e.g. no. 1 inGerman e-commerce forfurniture and white goodsServicesUser experienceValues More inspiring: Emulatingthe shopping experience ofbrick-and-mortar stores More approachable: Directand personal customercommunication High degree ofpersonalisation throughoptimal use of customerdata (e.g. ABOUT YOU) High standards: Sustainability Social responsibility Data protectionStrong USPs for consumers & B2B partners

Financial Services Comprises retail-related financial services with afocus on debt collection and receivablesmanagement14Financial figures for the segment Segment mainly characterised by the EOS GroupIn mEUR In addition, minority shareholdings in HanseaticBank and Cofidis Group, which specialise inconsumer creditExternal revenue The Financial Services segment is largelyindependent of the Multichannel Retail segment.More than 95% of revenues are generated withcustomers outside the Otto GroupEBITDA marginEBITDA 14.9%*2017/182016/1784173235732042.4%43.7%* Growth adjusted for impact from harmonisation of financial calendars: 9.2%

The Financial Services segment is dominated by theEOS Group, an international leader in receivablesmanagement. Established by the Otto Groupin 1974 as Deutscher InkassoDienst (DID)EOS Group: International presence in more than 25 countries The company operates underthe EOS brand since 2000 Presence in more than 25countries via 60 operatingcompanies More than 20,000 B2Bcustomers worldwide trust inthe EOS Group EOS’ core business is receivables management. Its services include the purchase of non-performing receivables,fiduciary debt collection and business process outsourcing Target industries are the banking sector, utilities and the telecommunications market, as well as the public sector,real estate, mail order and e-commerce For many years the EOS Group has continuously maintained an “A” rating from rating agency Euler Hermes15

ServicesOTTO International Service providers specialising in logistics, mainlyoperated under the Hermes brand Focus on parcel distribution and 2-manhandling. In addition, further services along thevalue chain from procurement to fulfilment In Germany, Hermes is the largest alternative toDeutsche Post DHL in the field of home deliveryto private customers and has over 14,000franchised parcel shops Strong international market presence in UK andFrance16Financial figures for the segmentIn mEUR2017/182016/172,2711,96174903.3%4.6% 15.8%*External revenueEBITDAEBITDA margin* Growth adjusted for impact from harmonisation of financial calendars: 12.9%

Agenda1The Otto Group at a glance2Financial review3Strategy and outlook4Key investment considerations17

Highlights of financial year 2017/18Revenuesin mEUREBITDA in mEUREBT in mEUR13,65312,512629750730 9.1% 2.7%Adj. growth:6.7%*2016/172017/182622016/172017/18 140%2016/172017/18Broad-based growth exceeding FY targets for all three segmentsProfitability improved across all levels of the P&LSuccessful conclusion of partnership at ABOUT YOU with strong positive EBT impact18* Adjusted for impact from harmonisation of financial calendars

Strong performance of the Otto Group‘s majorsubsidiaries across all three segmentsExternal revenues of largest Otto Group subsidiaries in mEURFinancialServicesMultichannel Retail2.9562016/17Services2017/182.7242.113 8.5%1.512 1.5611.4751.564 8.1%1.574 13.6% 17.3% 20.0%-1.7% 3.2% 6.0%757818667757556 110%652645291286774 34.2%283135 2017/18 revenue targets exceeded with strong growth across all three segments Broad-based growth across all major subsidiaries reflects healthy portfolio following disposals in recent years19Notes: Material positive impact on growth from harmonisation of financial calendars at Bonprix (ca. 2%), Crate & Barrel (ca. 6%), myToys (ca. 6%), EOS (ca. 6%) andHermes (ca. 3%). Material negative impact on growth from currency effects at Crate & Barrel (ca. -5%) and Hermes (ca. -3%). Material positive impact from change in scope of consolidation at Hermes and Baur

The key credit ratios show the Otto Group’s financialsolidity2017/182016/171,5941,432Net financial debt / EBITDA*2.3x2.0xNet financial debt / Equity*1.1x1.1xEquity / Total assets (in %)*19.117.5Net financial debt* (in mEUR)F Continued investments across all three segments key driver behind increase in net debt Equity ratio improved thanks to strong increase in profitability and moderate distributions Net debt / EBITDA ratio within target “implied investment grade“ range* All figures in “FS@equity“ view (Financial Services segment accounted for at equity) in order to allow comparability with pure retail and service peers20

Diversification of funding sources and a balancedmaturity profile are key to the Otto Group’s financingstrategy Access to a variety of funding sources, including a large and diversified bank group and a proven track record ofissuance in the capital markets Well diversified maturity profile Financial mix: Medium and long-term loans, ABS, commercial paper as well as longer term bond issues Strong liquidity buffer: More than 1 bnEUR in committed credit lines (large majority undrawn) Debt Issuance Programme provides flexible access to capital marketsDiversified maturity profile (mEUR)500400Well-balanced mix of funding sourcesBank and bond debtOther (ABS,leasing, etc.)Participation rights(Genussrecht)300Capital markets(incl. CPs) 1 yrBank debt 1 yr200100Bank debt 1 yrMaturities of long-term debt(excl. commercial paper and short-term RCF drawings) as of 28 Feb 201821Capital markets 1 yrSplit of financial debt as per financial statements 28 Feb 2018

Agenda1The Otto Group at a glance2Financial review3Strategy and outlook4Key investment considerations22

Outlook: The strategic priorities for the medium termare clearly definedExpect further growth at sustained operating profitabilityClear focus on e-commerce as main growth driverInvestments across all three strategic segmentsFurther cooperation with external partners23

Agenda1The Otto Group at a glance2Financial review3Strategy and outlook4Key investment considerations24

Summary: Key investment considerationsMarket leadership instrong growth sectorDiversificationDiversification across countries, segments, brands, product rangesand customer groups. Active portfolio management ensures strategiccoherenceInnovation andtransformationTrack record of anticipating trends and launching innovations. Successfultransformation from catalogue to e-commerce businessFinancial soliditySolid financial profile, supportive bank group, ample liquidity and provenaccess to the capital marketsLong-term orientationLong-term orientation of the owners allows investments in infrastructureand innovations, which will be the basis for future growthCommitment fromfamily owners25Among the world’s largest online retailers, ideally positioned to benefit fromthe growth of the e-commerce sector across all three segmentsFamily-owned company with a long tradition, a history of stablemanagement and family owners that are committed to the business

Presentation teamPetra Scharner-WolffChief Financial OfficerBoris JendruschewitzVice President Corporate FinanceOtto (GmbH & Co KG)Werner-Otto-Straße 1-722179 Hamburgwww.ottogroup.comE-Mail: [email protected]

More than 98% of the shares in Otto (GmbH & Co KG) are owned by members of the Otto family and by the Michael Otto Foundation Dr. Michael Otto transferred his controlling stake to the “Michael Otto Stiftung”, a non-profit foundation, in 2015. He continues to have influence through his position as the chairman of the Foundation Board