elumeo SE

Quarterly Report • May 12, 2021

Quarterly Release Q1/2021

Table of Contents
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Key Figures Q1/2021 2
Capital Market Information 3
Publication of Results Q1/2021 4
Principles 4
Business Development4
Earnings, Assets and Financial Position5
Supplementary Report 7
Risk and Opportunity Report 7
Forecast Report 7
Condensed Interim Consolidated Financial Statements 8
Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 8
Consolidated Statement of Financial Position9
Consolidated Statement of Changes in Equity 11
Consolidated Statement of Cash Flows12
Imprint 13

Key Figures Q1/2021

EUR thousand [unless indicated otherwise]	Q1 2021	Q1 2020		QoQ in %
Revenue	13,208 100.0%	10,330 100.0%		27.9%
[The following disclosures represent: absolute values and in % of revenue] Gross profit EBITDA Adjusted-EBITDA Depreciation and amortisation EBIT	7,210 1,074 1,029 232 842	4,635 54.6% -1,041 8.1% -1,081 7.8% 239 1.8% -1,320 6.4%	44.9% -10.1% -10.5% 2.3% -12.8%	55.5% 203.1% 195.2% -2.8% 163.8%
Total comprehensive income Selling and administrative expenses	792 6,475	-1,341 6.0% 5,998 49.0%	-13.0% 58.1%	159.1% 7.9%
[absolutely and in % of balance sheet total]
Total assets 1 Total equity 1	20,327 100.0% 5,141	4,346 25.3%	21,164 100.0% 20.5%	-4.0% 18.3%
[absolutely and in % of balance sheet total]
Working capital 1 [absolutely and in % of balance sheet total] 1 Prior year disclsoure: 31 Dec 2020	4,920	4,142 24.2%	19.6%	18.8%
[The following disclosures represent:
absolute values and in % of revenue] Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities	253 -107 -99	278 1.9% -81 -0.8% -527 -0.8%	2.7% -0.8% -5.1%	-9.0% -31.8% 81.2%
Items sold [pieces] Average sales price (ASP) [EUR] Gross profit per item sold [EUR]	145,839 91 49	147,162 70 31		-0.9% 29.0% 57.0%
New customer breakdown (Germany only)
[in % of new customers] TV only Web only Others	13% 76% 10%	25% 63% 12%		-11.5 p.p. 13.5 p.p. -1.9 p.p.

Capital Market Information

Basic data and key figures on the share of elumeo SE (Status: 31 March 2021)

WKN	A11Q05
ISIN	DE000A11Q059
Earnings per share in Q1 2021	EUR 0.15
Number of shares outstanding	5,500,000
XETRA closing price at the end of the re porting period	EUR 7.40
Market capitalisation	EUR 40.7 million

Share price development

(1 January to 31 March 2021: XETRA, in EUR)

Shareholder structure

(Status: 31 March 2021) Shareholdings

1. Blackflint Ltd.	26.66%
2. Ottoman Strategy Holdings (Suisse) SA	26.23%
3. Universal Investment	10.01%
4. Members of the Executive Board	10.83%

1. Free float 26.26%

Publication of Results Q1/2021

Principles

The principles and methods of the elumeo Group described in the Annual Report for financial year 2020 which ended on 31 December ("Annual Report 2020") remain valid.

General information and comparability of disclosures

This Quarterly Release covers the period from 1 January to 31 March 2021 ("3M 2021"). The changes in the period comparison are referred to as three-month period to three-month period ("3Mo3M") or quarter to quarter ("QoQ").

Explanation of alternative performance indicators

The elumeo Group uses alternative performance measures ("APMs") in its regulatory and mandatory publications that are not regulated in the applicable International Financial Reporting Standards ("IFRSs"). For further information on the definition, use and limitations of the usability of the alternative performance measures, the accounting methods used and the reconciliations, please refer to https://www.elumeo.com/ir/publications/explanation-alternative-performance-measures.

Business Development

In the three-month period of 2021, the economic development of the elumeo Group was characterised by the following key events:

The elumeo Group continued its positive business development. Revenues increased QoQ by 28% from EUR 10.3 million to EUR 13.2 million, gross profit increased above average by 56% from EUR 4.6 million to EUR 7.2 million and EBIT from EUR -1.3 million to EUR 0.8 million.

The main driver here is the classic web shop, whose sales increased by 41%, gross profit increased by 81%. The performance of our TV business improved either, sales increased by 29% (based on merchandise data).

Selling expenses in the first quarter of 2021 increased by 4.8%. The reductions are mainly due to higher investments in Online-Marketing. Administrative expenses increased QoQ by 16.3%, mainly due to higher legal advice costs and maintenance measures for our warehouse.

Other operating income mainly includes income from exchange rate differences and from the sale of assets.

Total adjusted EBITDA improved from EUR -1.1 million to EUR 1.0 million.

The consolidated net result developed from EUR -1.3 million in the first quarter of 2020 to EUR 0.8 million in the first quarter of 2021.

Explanations of the individual financial ratios are provided in the following sections.

Earnings, Assets and Financial Position

(1) Revenue

Revenue comprises the following:

EUR thousand % of revenue	01.01. - 31.03.2021				01.01. - 31.03.2020			QoQ in %
Revenue from product sales Other revenue	13,189 20	99.9% 0.1%	10,316 14	99.9% 0.1%	27.8% 37.5%
Revenue	13,208	100.0%	10,330	100.0%	27.9%

(2) Selling expenses

EUR thousand % of revenue	01.01. - 31.03.2021		01.01. - 31.03.2020		QoQ in %
Broadcasting and channel rental costs	1,616	12.2%	1,447	14.0%	11.7%
Personnel expenses	1,395	10.6%	1,786	17.3%	-21.9%
Sales and marketing expenses	866	6.6%	406	0.0%	113.5%
Depreciation, amortization and impairment loss	92	0.7%	68	0.7%	34.9%
Other selling expenses	593	4.5%	648	6.3%	-8.4%
Selling expenses	4,562	34.5%	4,354	42.1%	4.8%

Selling expenses increased slightly due to higher marketing expenses.

(3) Administrative expenses

EUR thousand % of revenue	01.01. -		01.01. -		QoQ
	31.03.2021		31.03.2020		in %
Personnel expenses	926	7.0%	818	7.9%	13.2%
Depreciation, amortization and impairment loss	140	1.1%	171	1.7%	-17.8%
Equity-settled share-based remuneration	2	0.0%	8	0.1%	-70.5%
Other administrative expenses	844	6.4%	648	6.3%	30.4%
Administrative expenses	1,913	14.5%	1,644	15.9%	16.3%

Administrative expenses increased mainly due to higher legal advice costs and maintenance measures for our warehouse.

(4) Other operating income

Other operating income mainly includes income from exchange rate differences and from the sale of assets.

(5) Financial result

Other interest expenses are mainly related to the adoption of IFRS 16 (capitalisation of rental expenses).

(6) Notes to the segment reporting

The strategic and operational location functions are combined in Berlin, the previous segments have been combined into one segment that corresponds to the Consolidated Financial Statements. For this reason, the result of interest, taxes, depreciation and amortisation adjusted for non-operative special items serves as a key financial indicator for the presentation and management of operating earnings (adjusted EBITDA – previously Segment-EBITDA). In order to calculate adjusted EBITDA, EBITDA before special items is adjusted by one-off and / or non-operative (special) items by type and amount. The adjusted EBITDA improved from EUR -1.1 million to EUR 1.0 million. Effects in connection with discontinued business areas and site closures (legal and consulting costs) and income from sale of assets were mainly considered.

(7) Intangible assets and property, plant and equipment

Investments in the first quarter of 2021 were limited to minor replacement investments.

(8) Inventories

Inventories decreased slightly to EUR 11.5 million (31 December 2020: EUR 12.1 million).

(9) Equity

Issued capital

The issued capital of elumeo SE as of 31 March 2021 totalled EUR 5,500,000 (31 December 2020: EUR 5,500,000) and is divided into 5,500,000 no-par value shares with a notional value of EUR 1.00 per share.

There have been no changes compared to the figures as of 31 December 2020.

(10) Other financial liabilities

In addition to minor leasing liabilities (finance leases) for the semi-automated picking, storage and conveyor systems (technical equipment), these are in particular the (current and non-current) leasing liabilities from rental agreements for office premises (real estate contracts) capitalised in connection with the first-time adoption of IFRS 16.

(11) Notes to the Consolidated Statement of Cash flows

The Consolidated Statement of Cash Flows has been prepared in accordance with IAS 7 Statement of Cash Flows and shows the change in cash and cash equivalents of the elumeo Group over the course of the reporting period through inflows and outflows of funds.

The positive cash flow from operating activities is mainly the result of a significant improvement in EBIT and a slight reduction in inventories. These effects overcompensated the decrease in liabilities.

The cash flow from investing activities in the first three months of 2021 totalled EUR -0.1 million (3M 2020: EUR -0.1 million).

The cash flow from financing activities is composed of other financial liabilities.

Cash and cash equivalents as of the balance sheet date result from asset items of EUR 2.4 million (31 December 2020: EUR 2.3 million).

Supplementary Report

On 13 April 2021, SWM Treuhand AG's claim for damages against elumeo SE was dismissed by the Berlin Regional Court.

Bernd Fischer, CFO of elumeo SE since 2014, resigned as Managing Director as of 31 March 2021 and will still be available to the company in a transitional phase until May 31, 2021, and support the new CFO, Dr. Riad Nourallah.

Risk and Opportunity Report

The elumeo Group presents its risk management system in detail in its 2020 Annual Report. The Executive Board is not currently aware of any significant changes compared to the risks and opportunities for the elumeo Group described in detail in the Annual Report.

Forecast Report

Management also expects high volatility in 2021 depending on the development of the COVID-19 pandemic. As a result, the forecast is based on a cautious approach to future development and takes into account possible further negative influences from collapses in demand and supply bottlenecks. Based on the development in the first quarter of 2021, management assumes that sales growth in the low double-digit percentage range can be achieved in 2021. The gross profit margin should continue to develop steadily at > 50%. Overall, the gross profit should develop slightly disproportionately. The adjusted EBITDA is expected to be in the low to mid- single-digit million range.

Due to the positive business development, investments in working capital are necessary. However, in order to be able to guarantee the solvency of the Group at all times, the elumeo Group can react flexibly and at short notice to negative economic developments with the appropriate options for reducing the inventory. The Executive Board of the elumeo Group has created different scenarios in this context and has sufficient liquidity in all scenarios in the financial years 2021 and 2022 to service due liabilities.

Condensed Interim Consolidated Financial Statements

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

(unaudited)

EUR thousand % of revenue	Note	1 Jan - 31 Mar 2021		1 Jan - 31 Mar 2020		YoY in %
Revenue	(1)	13,208	100.0%	10,330	100.0%	27.9%
Cost of goods sold		5,998	45.4%	5,695	55.1%	5.3%
Gross profit		7,210	54.6%	4,635	44.9%	55.5%
Selling expenses	(2)	4,562	34.5%	4,354	42.1%	4.8%
Administrative expenses	(3)	1,913	14.5%	1,644	15.9%	16.3%
Other operating income	(4)	106	0.8%	83	0.8%	28.3%
Other operating expenses		0	0.0%	0	0.0%	n.a.
Earnings before interest and taxes (EBIT)		842	6.4%	-1,280	-12.4%	165.8%
Interest and similar expenses	(5)	24	0.2%	-40	-0.4%	159.1%
Financial result	(5)	-24	-0.2%	-40	-0.4%	40.8%
Earnings before income taxes (EBT)		818	6.2%	-1,320	-12.8%	162.0%
Income tax		0	0.0%	0	0.0%	n.a.
Earnings for the period		818	6.2%	-1,320	-12.8%	162.0%
Earnings of shareholders of elumeo SE		818	6.2%	-1,320	-12.8%	162.0%
Earnings per share in EUR applied to earnings of shareholdres total
- undiluted		0.15		-0.24		162.0%
- diluted		0.15		-0.24		161.8%
Average number of shares outstanding
- basic		5,500,000		5,500,000		0.0%
- diluted		5,526,688		5,513,446		0.2%
Differences from foreign currency
translation of foreign subsidiaries		-26	-0.2%	-21	-0.2%	-21.4%
Other comprehensive income
from continuing operations		-26	-0.2%	-21	-0.2%	-21.4%
Total comprehensive income		792	6.0%	-1,341	-13.0%	159.1%
Total comprehensive income of shareholders of elumeo SE		792	6.0%	-1,341	-13.0%	159.1%

Consolidated Statement of Financial Position (unaudited)

as of 31 March 2021 and 31 December 2020

A S S E T S

EUR thousand % of balance sheet total	Note	31 Mar 2021		31 Mar 2020		YoY
Non-current assets
Intangible assets	(7)	405	2.0%	429	2.6%	-5.6%
Property, plant and equipment		3,858	19.0%	3,965	23.1%	-2.7%
Other financial assets		73	0.4%	77	0.9%	-5.3%
Other non-financial assets		236	1.2%	225	1.4%	4.9%
Total non-current assets		4,572	22.5%	4,696	28.0%	-2.6%
Current assets
Inventories	(8)	11,459	56.4%	12,147	58.1%	-5.7%
Trade receivables		1,194	5.9%	1,230	5.5%	-2.9%
Other financial assets		226	1.1%	276	1.1%	-18.1%
Other non-financial assets		521	2.6%	507	4.2%	2.7%
Cash and cash equivalents		2,354	11.6%	2,307	2.9%	2.0%
Total current assets		15,755	77.5%	16,468	72.0%	-4.3%
Total assets		20,327	100%	21,164	100%	-4.0%

Consolidated Statement of Financial Position (unaudited)

as of 31 March 2021 and 31 December 2020

E Q U I T Y & L I A B I L I T I E S

EUR thousand % of balance sheet total	Note	31 Mar 2021		31 Mar 2020		YoY
Equity
Issued capital	(9)	5,500	27.1%	5,500	29.5%	0.0%
Accumulated losses		34,443	169.4%	34,441	184.4%	0.0%
Retained losses		-36,991 -182.0%		-37,809 -210.4%		2.2%
Foreign currency translation reserve		2,188	10.8%	2,214	11.4%	-1.2%
Total equity		5,141	25.3%	4,346	14.9%	18.3%
Attributable to shareholders of elumeo SE		5,141	25.3%	4,346	14.9%	18.3%
Non-current liabilities
Other non-current financial liabilities	(10)	2,314	11.4%	2,413	13.4%	-4.1%
Provisions		3,980	19.6%	3,972	24.3%	0.2%
Other non-financial liabilities		25	0.1%	25	0.1%	0.0%
Total non-current labilities		6,318	31.1%	6,410	37.9%	-1.4%
Current liabilities
Other financial liabilities	(10)	387	1.9%	389	1.8%	-0.6%
Provisions		1,070	5.3%	1,113	5.4%	-3.8%
Trade payables		5,441	26.8%	6,775	25.4%	-19.7%
Advance payments received		133	0.7%	133	1.3%	0.7%
Tax liabilities		100	0.5%	100	0.5%	0.0%
Other non-financial liabilities		1,736	8.5%	1,899	12.8%	-8.6%
Total current liabilities		8,867	43.6%	10,408	47.2%	-14.8%
Total equity & liabilities		20,327	100.0%	21,164	100.0%	-4.0%

Consolidated Statement of Changes in Equity (unaudited)

for the period from 1 January to 31 March 2021 and 1 January to 31 March 2020

Attributable to shareholders of elumeo SE
Issued capital	Capital Reserve	Accumu- lated losses	Foreign currency translation	Total equity
5,500	34,441	-37,809	2,214	4,346
	2			2
		818	-26	-26 818
		818	-26	792
5,500	34,443	-36,991	2,188	5,141
Issued capital	Capital reserve	Accumu- lated losses	Foreign currency translation reserve	Total equity
5,500	34,423		2,159	4,118
	8			8
			-21	-21 -1,320
			-37,963	reserve Attributable to shareholders of elumeo SE -1,320

Total comprehensive income -1,320 -21 -1,341

31 March 2020 5,500 34,430 -39,283 2,138 2,785

Consolidated Statement of Cash Flows (unaudited)

for the period from 1 January to 31 March 2021

EUR thousand	01.01 - 31.03.2021	01.01- 31.03.2020	YoY in %
Earnings before taxes (EBT)	842	-1,320	163.8%
+/- Depreciation and amortisation on non-current assets +/- Increase/decrease in provisions	+232 -42	+239 -336	-3.0% 87.4%
+/- Increase/decrease in provisions from obligations resulting from the orderly liquidation of the Group owned factory	+8	-48	115.6%
+/- Equity-settled share-based remuneration	+2	+8	-71.0%
+/- Other non-cash expenses/income	-18	-22	20.3%
- Interest expenses paid related to prior accounting periods	0	-1	100.0%
+ Non-cash current interest expenses	0	+10	-100.0%
-/+ Increase/decrease in inventories	+692	+2,539	-72.7%
-/+ Increase/decrease in other assets	+76	-115	166.2%
+/- Increase/decrease in other liabilities	-1,540	-676	-127.7%
Cash flow from operating activities = of continuing operations	+253	+278	-9.2%
- Payments for investments in intangible assets	0	-37	100.0%
- Payments for investments in property, plant and equipment	-107	-44	-142.7%
= Cash flow from investing activities = of continuing operations	-107	-81	-31.8%
- Payments for the redemption of financial debt	0	-446	100.0%
+ Proceeds from increase in financial liabilties	-99	-81	-22.5%
= Cash flow from financing activities = of continuing operations	-99	-527	-81.2%
+/- Net increase/decrease in cash and cash equivalents	+47	-331	114.1%
+/- Effects of foreign currency translation on cash and cash equiva	+1	+1	-37.4%
+ Cash and cash equivalents on beginning of reporting period	+2,307	+880	162.2%
= Cash and cash equivalents on end of reporting period	+2,354	+550	328.1%
Reconciliation of cash and cash equivalents Cash and cash equivalents	+2,354	+550	328.1%
= Cash and cash equivalents at end of period	+2,354	+550	328.1%

Berlin, 12 May 2021

elumeo SE

The Executive Managing Directors

Florian Spatz Boris Kirn Dr. Riad Nourallah

Imprint

Publisher elumeo SE Erkelenzdamm 59/61 10999 Berlin Germany

Investor Relations

Cordula Warmuth Phone: +49 30 69 59 79 - 231 Fax: +49 30 69 59 79 - 650 email: ir@elumeo.com www.elumeo.com

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elumeo SE

This quarterly release is also available in German. In case of discrepancies, the German version takes precedence. A digital version of this elumeo SE quarterly release and other financial publications are available on the Internet at www.elumeo.com in the column entitled "Investor Relations / Publications / Financial Reports."

Disclaimer

This release contains forward-looking statements. These statements are based on current experience, presumptions, and projections of the Executive Board and the information it currently has available. These forward-looking statements are not to be considered guarantees of the future developments and events described in them. Future developments and results are dependent on a variety of factors. They involve various risks and uncertainties and are based on assumptions that may prove to be incorrect. We assume no obligation to update the forward-looking statements made in this release.