home24 SE

Earnings Release • May 12, 2020

Management summary

Significant improvement of adjusted EBITDA margin of 13pp, at -3% compared to -16% in Q1 2019, as one-off effects disappear and post IPO investments continue to pay-off. Assortment extension, esp. in high impulse and purchase frequency areas Strong currency-adjusted revenue growth in Q1 2020 of 14% to EUR 103m compared to Q1 2019, despite 10% reduction in marketing expenses compared to prior year

Reminder: Q1 (and Q3) "investing", Q2 (and Q4) "harvesting" quarter

Positive cash flow from operating activities in Q1 2020 for the second quarter in a row – cash position of EUR 43m at the end of Q1 2020, compared to EUR 46m at year end

One-time effects and measures related to contain the COVID-19 pandemic impacted Q1 2020: e.g. supply chain restrictions, closure of retail stores in Europe and Brazil and volatility in customer demand at the beginning of the lock-down period

Online order intake accelerated since mid-March and benefits from an increase in demand: accelerated YoY GOV growth in April at 88% in EU and 39% in LatAm. Q2 2020 is expected to be profitable on adjusted EBITDA basis

home24 confirms its financial outlook for the FY 2020 with growth rates in the range of 10% to 20% and is aiming for adjusted EBITDA profitability

Q1 Financials Covid-19 Update Outlook and Q&A Today's agenda

GOV growth increased to +13% YoY in CC despite Covid-19 impact and profitability focus (-10% marketing spend YoY)

GOV in EURm, Active customers and Total gross orders in k, Average order value in EUR

• Despite Covid-19 implications and reduction in marketing expenses, Q1 GOV growth rates increased compared to Q4 19 to +13% YoY in CC.
• Growth primarily driven by higher number of active customers and orders placed, whereas the AOV remained broadly stable.
• Brazilian currency strongly declined YoY vs EUR from 4.3 EUR/BRL (Q1 19) to 4.9 EUR/BRL (Q1 20).

All figures preliminary and unaudited

Order intake increase translates into 14% CC revenue growth and EUR 103m revenue in Q1 2020

Revenue in EURm and Growth YoY in %

• Order intake of +13% in CC in Q1 YoY translates into revenue growth of +14% to EUR 103m (+10% including currency effects).
• Strong growth despite -10% YoY reduced marketing expenses.
• Temporary Covid-19 impact with different timing in EU than in LatAm due to timing of shutdown, with EU c. 2-3 weeks ahead of LatAm.

All figures preliminary and unaudited

Positive trend confirmed: second quarter in a row with more than +10pp improvement YoY in adj. EBITDA

Adj. EBITDA in EURm and in % of Revenue

• Q1 adj. EBITDA significantly improved YoY by +13pp (EUR +11m), as one-off effects disappear and post IPO investments pay-off.
• Core profitability further strengthened - Gross Margin and Fulfillment Costs further improved compared to already profitable Q4 19.
• As usual for the Group, Q1 and Q3 are "investment quarters" and generally less profitable than full year due to seasonally higher marketing costs in IFRS terms.

Positive cash flow from operating activities for second quarter in a row and overall only slight reduction in cash and cash equivalents

Cash flow YTD 2020 in EURm

1 Including e.g. changes in provisions, changes in other assets/liabilities, tax expenses and FX effects 2 Adoption of IFRS 16 leads to shift of EUR 2m from operating cash flow to financing cash flow All figures preliminary and unaudited

• Cash level continued to decrease only moderately by EUR 3m in Q1 20 to a cash level of EUR 43m at the end of Q1.
• In sum, cash burn reduced to EUR 8m during the last nine month.
• Positive operating cash flow in Q1 20 supported by Working Capital development (EUR +3m additional B2C factoring).

In the current uncertain times our ability to rapidly evolve remains key to deal with shifts in demand and supply

• Social distancing and health protection measures strictly implemented
• Warehouses implemented according measures already in early February
• EU and Brazil offices remain in remote working setup since mid March
• Teams flexibly embraced the new situation with no decline in productivity
• No travel at the moment apart from regular operations and retail activities
• Supply chain disruptions have been varying during the last months
• Starting in China, but then also moving to Vietnam, Malaysia, Eastern Europe, Brazil and India
• Apart from India, the vast majority are operational again
• Retail activities in Europe and Brazil temporarily closed for public
• Over the past 2 weeks all stores in Europe re-opened
• Adherence to restrictions (i.e. m² limit), hygiene and distrancing measures
• Brazil timing of re-opening unclear to date
• Quick adaptation and reaction to the changing situation.
• Re-inforced video consultation in the showrooms
• Tele-sales activities introduced for the physical Outlets
• Conservative investment strategy to preserve cash until uncertainty resolves

home24 is well positioned to benefit from the current strong demand, April GOV with very strong growth YoY

• Overall, home24 benefits from the development that customers spend more time in their homes and offline stores were closed.
• March has seen strong volatility in demand, especially at the beginning of the lock-down period.
• Comparable trading pattern in EU and LatAm after lock-down, LatAm with longer uncertainty phase pre lock-down and timing 2-3 weeks later than EU.
• ▪ Positive trading continued throughout April.

The home 24 two pillar model with our diversified supply base enables us to manage the effects of supply disruptions effectively

• Temporary delays and disruptions in production and shipment of products with only limited effects on overall product availability.
• Flexibility to shift demand of sold out (private label) products temporarily to available (3rd party) assortment.
• More frequent updates of repurchase algorithm.
• Actively purchasing excess stock from suppliers where available.
• Overall, average webshop delivery times and purchasable assortment remained broadly stable.

Our supply chain remains intact across the various delivery modes, as we swiftly adjust circumstances and adapt services

• Warehouses successfully cope with unplanned increase in volumes without loss in efficiency, demonstrating previous investments into processes and automation pay off.
• April EU outbound volumes are above November peak season, also 'surprising' parcel service providers.
• 2MH carriers with adjusted service level (delivery to doorstep only, not into the apartment/ house, no assembly service).
• Return clearance via mega outlets pivoted to tele-sales approach during shutdown weeks, partly compensating closures.

Financial outlook for FY 2020 confirmed

Unit Economics 2019 and Q1 2020

		Q1	Q2	Q3	Q4	Q1
h 1 C) wt C o n Gr (i	GOV	16%	17%	16%	11%	13%
	Revenue	12%	28%	20%	21%	14%
ns argi m &L P	Cost of sales	56%	57%	55%	55%	54%
	Fulfillment costs2	21%	20%	20%	18%	18%
	Marketing costs	23%	15%	18%	14%	19%
	Adj. EBITDA3	-16%	-10%	-9%	2%	-3%
m) w o R h fl U n E Cas (i	Cash flow from investing activities	7	6	6	3	2
	Change in net working capital	-5	-10	8	0	7

• Continuous improvements in P&L margins continue in Q1, leading to 13pp improvement in adj. EBITDA:
• -2pp YoY Cost of sales
• -3pp YoY Fulfillment costs
• -4pp YoY Marketing costs
• -3pp YoY SG&A costs
• Positive adj. EBITDA for Q2 expected.
• Current trading with low customer acquisition costs increase active customer base for future periods.
• Guidance unchanged, also given uncertainty how COVID-19 pandemic evolves: growth rates in the range of 10% to 20%, adj. EBITDA margin in the range of -2% to +2%.

1 Growth shown in year-on-year constant currency.

2 Including impairment losses on financial assets.

3 Adjusted to exclude share-based compensation expenses. Figures subject to IFRS 16.

All figures preliminary and unaudited.

Apart from dealing with Covid-19 implications the main 2020 focus remains on strengthening home24's key differentiators

	We remain committed to creating the best value and inspiring Home & Living experience to everyday people
	by offering great value products people love		in a convenient and inspirational shopping experience
	Broad but relevant, curated assortment empowering customers to choose from a wide range of styles, materials and prices		Fast, reliable and flexible delivery times paired with convenient payment methods
	Exclusive assortment only available at home24,		Effective & friendly customer service support and transparent communication whenever needed
	combined with a broad selection of relevant third party products		Opportunities to get a touch and feel for the product offering online, but also in showrooms
\$	With a great value for money and product quality aspiration, creating happy homes, and a clear commitment to sustainability		Personalized relevant content that inspires and consults, helping to make a complex purchase decisions easier (ref. no strong consumer brands)

Having reached core profitability, home24 is uniquely positioned to become the preferred online destination and exploit market potential

Market

Huge market opportunity characterized by still low online penetration with huge catch-up potential

Value chain

Scalable and automated value chain based on latest SAP solutions and proprietary service based tech & data setup

Customer value proposition

Best value offering and most relevant selection brought to life in a customer centric go-to-market approach

Data & Technology

Pioneering technologies improve shopping experience and empower data-driven decisions

Further Outlook and Q&A

• Uncertain times will be a reality for the coming quarters, as customers, suppliers and competitors (esp. offline) adapt to changing circumstances. The temporary increased high online demand is no guarantee for further positive effects in the future.
• Despite likely global recession, significant growth potential for online penetration remains intact. Online penetration was still well below 10% pre crisis - but will likely remain higher also after Covid-19 times, as many new customers tap into online with positive experience.
• The speed of learning and adapting flexibly and fast to new circumstances will be decisive: advances in data driven decision making and automation will be a source of competitive advantage. We are well positioned to leverage our data and fulfillment platform.
• Terminal margin profile confirmed:
• Gross profit margin to reach 50%+ (in % of revenue)
• Gross profit margin after fulfilment costs to trend towards low thirties (in % of revenue)
• Marketing expenses to converge to low teens (in % of revenue)
• Adj. EBITDA margin to reach low teens (in % of revenue)

Financial calendar – upcoming events

Date	Event
May 20th	Berenberg Conference USA 2020 Tarrytown, USA
June 3rd	Annual General Meeting
August 18th	Publication half-yearly financial report
November 10th	Publication quarterly financial report (Q3)

Profit and loss statement- Group

In EURm and in % of Revenue

1
2 2

20

Gross profit margin

In EURm and in % of Revenue

Profit contribution margin

In EURm and in % of Revenue

Adjusted EBITDA reconciliation

In EURm

1

KPI definitions

KPI	Definition
Gross order value [in EUR]	Defined as the aggregated gross order value of the orders placed in the respective period, including VAT and without factoring in cancellations and returns as well as subsequent discounts and vouchers
Number of active customers [#]	Defined as the number of customers that have placed at least one non-canceled order in the 12 months prior to the respective date, without factoring in returns
Total gross orders	Defined as the number of orders placed in the relevant period, regardless of cancellations or returns
Average order value [in EUR]	Defined as the aggregated gross order value of the orders placed in the respective period, including VAT, divided by the number of orders, without factoring in cancellations and returns as well as subsequent discounts and vouchers
Growth at constant currency (CC)	Defined as growth using constant BRL/EUR exchange rates from the previous year
Adjusted EBITDA [in EUR]	EBITDA defined as the sum of operating result (EBIT) and depreciation and amortization. Adjusted for share-based compensation expenses and costs incurred in connection with the listing of existing shares and other one-off expenses, mainly service fees for legal and other consulting services associated with the IPO

Disclaimer

This presentation has been prepared by home24 SE (the "Company"). All material contained in this document and the information presented is for information purposes only and does not purport to be a full or complete description of the Company and its affiliated entities. This presentation must not be relied on for any purpose.

This presentation contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of the Company. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements.

This presentation contains certain financial measures that are not calculated in accordance with IFRS and are therefore considered "non-IFRS financial measures". The management of the Company believes that these non-IFRS financial measures used by the Company, when considered in conjunction with, but not in lieu of, other measures that are computed in accordance with IFRS, enhance an understanding of the Company's results of operations, financial position and cash flows. A number of these non-IFRS financial measures are also commonly used by securities analysts, credit rating agencies and investors to evaluate and compare the periodic and future operating performance and value of other companies with which the Company competes. These non-IFRS financial measures should not be considered in isolation as a measure of the Company's profitability or liquidity, and should be considered in addition to, rather than as a substitute for, income data or cash flow data prepared in accordance with IFRS. In particular, there are material limitations associated with the use of non-IFRS financial measures, including the limitations inherent in determination of each of the relevant adjustments. The non-IFRS financial measures used by the Company may differ from, and not be comparable to, similarly-titled measures used by other companies.

Certain numerical data, financial information and market data, including percentages, in this presentation have been rounded according to established commercial standards. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.