elumeo SE

Quarterly Report • Nov 12, 2019

Quarterly Release Q3/2019

Table of Contents

Key Figures Q3/2019 2
Capital Market Information 3
Publication of Results Q3/2019 4
Principles 4
Business Development5
Earnings, Assets and Financial position7
Supplementary Report 15
Risk and Opportunity Report 15
Forecast Report 15
Condensed Interim Consolidated Financial Statements 16
Consolidated statement of income16
Consolidated statement of comprehensive income 17
Consolidated statement of financial position18
Consolidated statement of changes in equity 20
Consolidated statement of cash flows 22
Group segment reporting 24
Imprint 40

Key Figures Q3/2019

EUR thousand [unless indicated otherwise]	Q3 2019	Q3 2018	YoY	9M 2019	9M 2018	YoY
Information related to continuing business
Revenue	10,205 100.0%	11,229 100.0%	-9.1%	33,468 100.0%	40,567 100.0%	-17.5%
Product revenue by regions [absolutely and in % of product revenue]
Germany	8,782 86.1%	9,203 82.1%	-4.6%	28,657 85.7%	32,318 79.7%	-11.3%
Italy	1,408 13.8%	1,996 17.8%	-29.5%	4,757 14.2%	6,254 15.4%	-23.9%
Other countries	7 0.1%	17 0.2%	-57.5%	19 0.1%	1,962 4.8%	-99.0%
[The following disclosures represent: absolute values and in % of revenue]
Gross profit	5,155 50.5%	5,115 45.5%	0.8%	15,861 47.4%	14,284 35.2%	11.0%
EBITDA	-1,142 -11.2%	-5,560 -49.5%	79.5%	-3,105 -9.3%	-14,169 -34.9%	78.1%
Toatal Segment EBITDA	-955 -9.4%	-2,662 -23.7%	64.1%	-2,139 -6.4%	-8,223 -20.3%	74.0%
Total segment EBIT	-1,254 -12.3%	-2,875 -25.6%	56.4%	-3,066 -9.2%	-8,836 -21.8%	65.3%
Selling and administrative expenses	6,443 63.1%	7,935 70.7%	-18.8%	19,019 56.8%	23,233 57.3%	-18.1%
[absolutely and in % of balance sheet total]
Total assets 1				23,419 100.0%	28,827 100.0%	-18.8%
Total equity 1				2,760 11.8%	6,677 23.2%	-58.7%
[absolutely and in % of balance sheet total]
Working capital 1				7,827 33.4%	11,544 40.0%	-32.2%
[absolutely and in % of balance sheet total]
1 Prior year disclsoure: 31 Dec 2018
[The following disclosures represent:
absolute values and in % of revenue]
Net cash flow from operating activities	0.0%	0.0%	n.a	392 1.2%	-9,489 -23.4%	104.1%
Net cash flow from investing activities	0.0%	0.0%	n.a	-131 -0.4%	-401 -1.0%	67.2%
Net cash flow from financing activities	0.0%	0.0%	n.a	-2,018 -6.0%	-203	-0.5% -896.4%
Items sold [pieces]	169,299	180,916	-6.4%	482,338	713,709	-32.4%
Average sales price (ASP) [EUR]	60	62	-2.9%	69	5 7	22.1%
Gross profit per item sold [EUR]	3 0	2 8	7.7%	3 3	2 0	64.3%
New customer breakdown (Germany only)
[in % of new customers]
TV only	18%	25%	-26%	22%	25%	-10%
Web only	68%	59%	15%	61%	59%	3%
Others	13%	16%	-16%	16%	16%	3%

Capital Market Information

Basic data and key figures on the share of elumeo SE (Status: 30 September 2019)

WKN	A11Q05
ISIN	DE000A11Q059
Earnings per share in Q3 2019	EUR -0.27
Number of outstanding shares	5,500,000
XETRA closing price at the end of the reporting period	EUR 0.80
Market capitalisation	EUR 4.4 million

Share price development

(1 January to 30 September 2019: XETRA, in EUR)

Shareholder structure

Shareholder structure (Status: 30 September 2019) Shareholdings

1. Blackflint Ltd.	26.66%
2. Ottoman Strategy Holdings (Suisse) SA	26.23%
3. Universal Investment	9.55%
4. Sycomore Asset Management SA	5.09%
5. Executive Board members	5.53%
6. Heliad Equity Partners GmbH & Co. KGaA	4.59%
7. Free float	22.35%

Publication of Results Q3/2019

Principles

The principles of the elumeo Group described in the Annual Report for the financial year 2018 that ended on 31 December ( ) continue to apply.

Discontinued operations

In December 2017, the elumeo Group initially discontinued the loss-making distribution business in ).

In financial year 2018, it was decided to terminate all business activities of the production company PWK Jewelry Company Limited, Bangkok, Thailand ( PWK ), and to proceed with the orderly liquidation of the production company under its own management by utilising existing assets ( PWK ). The discontinuation of production activities was associated with economic problems of the production company PWK, which could not be eliminated by implementing targeted restructuring measures in financial year 2018. All business activities of the company were discontinued by the end of 2018.

As a result of the events in the third quarter of 2019, there are concrete indications that an orderly liquidation of PWK under its own management will not be possible. The Executive Board is currently evaluating the next steps. The elumeo Group already formed substantial provisions for potential risks in connection with a possible insolvency of PWK in financial year 2018.

General information and comparability of disclosures

This quarterly release covers the period from 1 January to 30 September 2019 ( 9M 2019 ). The quarterly reporting period covers the period from 1 July to 30 September 2019 ( Q3 2019 ). The changes in the period comparison are referred to as nine-month period to nine-month period Due to the application of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (discontinued operation PWK), the quarterly release differs from the presentation of the quarterly release Q3/2018 published on 14 November 2018. Unless stated otherwise, the comparative prior-year figures relate to the restated Interim Consolidated Financial Statements prepared in accordance with IFRS 5. The respective prior-year figures have been restated to ensure comparability and transparency.

The discontinued operations are not included in the earnings from continuing operations and are presented in the Consolidated statement of income in a separate item as Earnings for the period from discontinued operations. The discontinued operations are not included in the detailed information on the composition of cash flows from operating, investing and financing activities and are presented in the Consolidated statement of cash flows as Net cash flow from discontinued operations. All disclosures in this quarterly release contain the amounts of the continuing operations to the extent that these were attainable or unless stated otherwise.

Explanation of alternative performance indicators

The elumeo publications that are not regulated in the applicable international Financial Reporting Standards s of the usability of the alternative performance measures, the accounting methods used, and the reconciliations, please refer to http://www.elumeo.com/ir/publications/explanation-alternative-performance-measures.

Business Development

In the first nine months of 2019, the economic development of the elumeo Group was characterised by the following material events:

Financial year 2018 was characterised by the considerable underutilisation of existing capacities at the Group's own manufacturing facility. By switching from our own production to cooperation with local partners in India and Thailand, we are now in a position to develop a significantly diversified product range again. Our broad range of different designs and price categories is better defined by the brands and collections we have introduced and allows customers to better orient themselves overall with regard to our product diversity. The development of brands and collections will play a key role in future growth and in gaining new customers. The integration of the various distribution channels, TV, Web and mobile, in order to provide our customers with a comprehensive and contemporary shopping experience, is yet another building block for future growth. The return to profitability will be supported by a comprehensive cost-cutting programme.

With respect to the Italian broadcasting area we have reduced the daily broadcasting time from 15 hours to 5 hours. At the same time, we will broadcast the shortened transmission at a significantly reduced cost on a better air slot (previously Channel 133 and now Channel 65). In addition to a significant increase in profitability, we also expect an improved acquisition of new customers and thus revenue growth in the long-term.

Revenue in 9M 2019 were down on the previous year. At -9.1% QoQ, the deviation in Q3 2019 compared to the previous year was much smaller than in 9M 2019 with -17.5% 9Mo9M. The opening of the web shop for TV offers as well as an overall improved product range contributed significantly to this. As forecasted, the gross profit margin developed significantly better than revenue and was also up quarter to quarter in Q3 2019.

Selling and administrative expenses in 9M 2019 fell significantly compared to the prior-year period. Cost of reach (TV broadcasting) are the main driver of this cost reduction. The higher cost of reach in Q3 2019 compared to the previous quarter mainly resulted from provisions released in Q2 2019. In addition, significant reductions were also achieved in marketing expenses and other selling expenses (e.g. payment transaction costs, external services). With regard to the development of administrative expenses, it should be noted that last year's report on 9M 2018 showed an increase of approximately EUR 1.5 million in personnel and other administrative expenses. Due to the purchase of goods from third parties, these costs are now no longer incurred. Overall, the personnel expenses of the continuing operations are slightly higher than in the previous year. Other administrative expenses also include considerable expenses for legal advice in connection with the legal disputes with a shareholder.

At EUR 10.2 million, revenue in the third quarter of 2019 was down -9.1% QoQ compared to the prior-year comparative period (Q3 2018: EUR 11.2 million).

As already reported in previous periods, a lack of product diversity led to a sharp decline in revenue in all territories and channels since the second quarter of 2018. The discontinuation of B2B business reinforced the negative trend.

By contrast, the gross profit margin of the continuing operations (as disclosed in the segment reporting) is already showing clear positive effects from the new supply chain. It developed from 35.2% in 9M 2018 to 47.4% in 9M 2019. In contrast to revenue, gross profit thus developed positively (+11.0% 9Mo9M).

The key performance indicator total segment EBITDA improved to EUR -1.0 million in the third quarter of 2019, compared to EUR -2.7 million in the same period of the previous year. Due to the adjustments resulting from IFRS 16 Leases, there were one-time special effects in the amount of EUR 294 thousand in total segment EBITDA compared to the prior-year period (9M).

Overall, earnings for the period from continuing operations of EUR -1.5 million were recorded in the third quarter of 2019 after EUR -6.0 million in Q3 2018. Total comprehensive income (including discontinued operations) improved to EUR -1.3 million in Q3 2019 after EUR -5.3 million in Q3 2018.

Explanations of the individual key financial figures are provided in the following sections.

Earnings, Assets and Financial position

(1) Foreign currency translation

The exchange rates used in the preparation of the Interim Consolidated Financial Statements for foreign currencies with a material impact on the elumeo Group are as follows:

Currency		Exchange rate on reporting date		Average exchange rate
EUR		30 Sep 2019 31 Dec 2018	Change in %	1 Jan -	1 Jan - 30 Sep 2019 30 Sep 2018	9Mo9M in %
Thai baht (THB) British pound (GBP) US dollar (USD)	0.0300 1.1281 0.9171	0.0270 1.1133 0.8733	11.2% 1.3% 5.0%	0.0285 1.1334 0.8908	0.0261 1.1315 0.8376	9.2% 0.2% 6.3%

As of the reporting date, the translation of assets and liabilities denominated in foreign currencies, and in particular the subsequent measurement of intra-Group receivables and payables denominated in foreign currencies using the closing rate, resulted in shifts in the presentation of the earnings, assets and financial Position.

(2) Revenue

Revenue comprises the following:

EUR thousand % of revenue	Q3 2019	Q3 2018 restated*	QoQ in %	1 Jan - 30 Sep 2019	1 Jan - 30 Sep 2018 restated*	9Mo9M in %
Revenue from product sales Other revenue	10,197 99.9% 8 0.1%	11,216 99.9% 1 3 0.1%	-9.1% -36.5%	33,433 99.9% 35 0.1%	40,533 99.9% 33 0.1%	-17.5% 5.2%
Revenue	10,205 100.0%	11,229 100.0%	-9.1%	33,468 100.0%	40,567 100.0%	-17.5%

Revenue from product sales by region

(recorded by the registered office of the selling company)

EUR thousand % of revenue from product sales	Q3 2019	Q3 2018 restated*	QoQ in %	1 Jan - 30 Sep 2019	1 Jan - 30 Sep 2018 restated*	9Mo9M in %
Germany Italy Other countries	8,782 86.1% 1,408 13.8% 7 0.1%	9,203 82.1% 1,996 17.8% 1 7 0.2%	-4.6% -29.5% -57.5%	28,657 85.7% 4,757 14.2% 1 9 0.1%	32,318 79.7% 6,254 15.4% 1,962 4.8%	-11.3% -23.9% -99.0%
Revenue from product sales	10,197 100.0%	11,216 100.0%	-9.1%	33,433 100.0%	40,533 100.0%	-17.5%

(3) Selling expenses

EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		QoQ in %	1 Jan - 30 Sep 2019		1 Jan - 30 Sep 2018		9Mo9M in %
Broadcasting and channel rental costs	1,281	12.5%	2,131	19.0%	-39.9%	3,962	11.8%	6,240	15.4%	-36.5%
Personnel expenses	1,678	16.4%	1,666	14.8%	0.7%	4,900	14.6%	5,005	12.3%	-2.1%
Expenses for external personnel services	276 396	2.7%	377 597	3.4%	-26.7%	855	2.6%	1,072	2.6%	-20.3%
Sales and marketing expenses Depreciation and amortization	83	3.9% 0.8%	97	5.3% 0.9%	-33.6% -14.9%	1,090 265	3.3% 0.8%	1,811 271	4.5% 0.7%	-39.8% -2.2%
Other selling expenses	803	7.9%	1,243	11.1%	-35.4%	2,566	7.7%	3,505	8.6%	-26.8%
Selling expenses	4,516	44.3%	6,111	54.4%	-26.1%	13,637	40.7%	17,904	44.1%	-23.8%

Selling expenses were significantly lower compared to the same period of the previous year. Lower broadcasting and channel rental costs (cost of reach) were the main driver of this development. Here, it was possible to renegotiate cost reductions due to the TV market development. In addition, the costs of reach also include income from the reversal of provisions. The marketing measures were also optimised and are now increasingly focused on acquiring new customers. Other selling expenses decreased, among other factors, due to reduced payment transaction costs and external third-party services.

(4) Administrative expenses

EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		1 Jan - QoQ 30 Sep 2019 in %			1 Jan - 30 Sep 2018 restated*		9Mo9M in %
Personnel expenses	742	7.3%	744	6.6%	-0.3%	2,219	6.6%	2,064	5.1%	7.5%
Depreciation and amortization	217	2.1%	116	1.0%	87.1%	662	2.0%	342	0.8%	93.5%
Equity-settled share-based remuneration	7	0.1%	-64	-0.6%	110.9%	37	0.1%	44	0.1%	-17.8%
Other administrative expenses	961	9.4%	1,028	9.2%	-6.6%	2,464	7.4%	2,879	7.1%	-14.4%
Administrative expenses	1,927	18.9%	1,824	16.2%	5.6%	5,382	16.1%	5,330	13.1%	1.0%

Administrative expenses in 9M 2019 were essentially unchanged compared to the previous year. However, administrative expenses for the comparable prior-year periods included expenses for rented premises (9M 2018: EUR 294 thousand, Q3 2018: EUR 103 thousand). As a result of the firsttime application of IFRS 16, these expenses are now recognised in the form of lease payments as a financing transaction divided into a repayment portion (cash flow from financing activities) and a financing portion (interest and similar expenses). In 9M 2019, lease payments totalling EUR 418 thousand (Q3 2019: EUR 141 thousand) were made under real estate contracts.

The development of administrative personnel expenses as a result of the discontinuation of the PWK operations (IFRS 5) also deserves special mention. In the quarterly release Q3/2018 published in the previous year (figures including the discontinued operation PWK), approximately EUR 1.0 million were attributable to administrative personnel expenses associated with the Group's own manufacturing facility in Thailand.

(5) Other operating income

Other operating income includes net gains from foreign currency translation of EUR 16 thousand in 9M 2019 and Q3 2019 (9M 2018 and Q3 2018: EUR 0 thousand).

(6) Other operating expenses

In the first half of 2019, other operating expenses still included net losses from foreign currency translation, resulting in particular from the currency translation of intra-Group monetary items and consolidation of expenses and income. Due to the specific development of the exchange rates for foreign currencies as of the reporting dates, these expenses were reversed into an income item in the third quarter, resulting in a negative amount being disclosed under net losses from currency translation in Q3 2019. 9M 2019 also includes legal and consulting costs incurred from the legal dispute in connection with the manufacturing facility closed in Thailand.

Other operating expenses of the previous year exclusively comprise net losses from foreign currency translation.

EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		QoQ in %	1 Jan - 30 Sep 2019		1 Jan - 30 Sep 2018 restated*		9Mo9M in %
Interest income from bank balances	0	0.0%	0	0.0%	n.a.	0	0.0%	0	0.0%	222.2%
Other interest and similar income	0	0.0%	4	0.0%	-100.0%	0	0.0%	4	0.0%	-100.0%
Interest income	0	0.0%	4	0.0%	-99.7%	0	0.0%	4	0.0%	-99.5%
Interest expenses from
financial debt (bank loans)	-8	-0.1%	-52	-0.5%	84.4%	-41	-0.1%	-153	-0.4%	72.9%
Interest expenses from
finance lease liabilities	-1	0.0%	-4	0.0%	79.2%	-5	0.0%	-14	0.0%	67.5%
Interest expenses from
operate lease liabilities	-36	-0.4%	0	0.0%	n.a.	-110	-0.3%	0	0.0%	n.a.
Other interest and similar expenses	-2	0.0%	0	0.0%	n.a.	-9	0.0%	0	0.0%	n.a.
Interest expenses	-47	-0.5%	-56	-0.5%	15.8%	-165	-0.5%	-167	-0.4%	1.4%
Financial result	-47	-0.5%	-52	-0.5%	10.1%	-165	-0.5%	-164	-0.4%	-0.8%

(7) Financial result

As a result of the further repayment of the credit line of Berliner Sparkasse, interest expenses from financial liabilities (bank loans) reduced overall. However, as a result of the first-time application of IFRS 16, interest expenses from operate lease liabilities (real estate contracts) (capitalisation of rental expenses) are reported for the first time under interest and similar expenses. As a result, the financial result is essentially unchanged.

(8) Discontinued operations

The earnings for the period from the discontinued operation UK of EUR 0.3 million in 9M 2019 (Q3 2019: EUR 0.3 million) mainly stem from income from the reversal of a provision for rental obligations from a non-cancellable contract (EUR 0.3 million). The elumeo Group has reached agreement on the early termination with the respective tenant.

The earnings for the period from the discontinued operation PWK of EUR -1.6 million in 9M 2019 (Q3 2019: EUR -0.3 million) solely include expenses from net losses from foreign currency translation of intra-Group monetary items as of the reporting date (trade receivables due from the direct parent company Silverline Distribution Ltd., Hong Kong, PR China).

(9) Personnel expenses

EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		QoQ in %		1 Jan - 30 Sep 2019	1 Jan - 30 Sep 2018 restated*		9Mo9M in %
Wages and salaries Social security contributions	2,029 391	19.9% 3.8%	1,993 417	17.8% 3.7%	1.8% -6.3%	5,969 1,149	17.8% 3.4%	5,920 1,148	14.6% 2.8%	0.8% 0.1%
Personnel expenses	2,420	23.7%	2,410	21.5%	0.4%	7,119	21.3%	7,069	17.4%	0.7%

The personnel expenses of the elumeo Group (excluding share-based remuneration) rose slightly by quarterly comparison.

(10) Earnings per share

Earnings and number of shares	Unit	Q3 2019	Q3 2018 restated*	QoQ in %	1 Jan -	1 Jan - 30 Sep 2019 30 Sep 2018 restated*	9Mo9M in %
Earnings of shareholders of elumeo SE from continuing operations	EUR thousand	-1,488	-5,989	75.2%	-4,197	-15,281	72.5%
Earnings of shareholders of elumeo SE from discontinued operations	EUR thousand	5	-435	101.1%	-1,343	5,023	-126.7%
Earnings of shareholders of elumeo SE	EUR thousand	-1,483	-6,424	76.9%	-5,540	-10,258	46.0%
Average number of outstanding shares	thousands	5,500	5,500	0.0%	5,500	5,500	0.0%
Earnings per share from continuing operations (basic and diluted)	EUR	-0.27	-1.09	75.2%	-0.76	-2.78	72.5%
Earnings per share
from discontinued operations (basic and diluted)	EUR	0.00	-0.08	101.1%	-0.24	0.91	-126.7%
Earnings per share (basic and diluted)	EUR	-0.27	-1.17	76.9%	-1.01	-1.87	46.0%

In financial years 2015 to 2018, the Executive Board issued option rights to subscribe to shares in elumeo SE in a total of seven tranches from the Stock Option . As of the reporting date, the service period criterion was fulfilled for a total of 113,660 option rights for the first time. The remaining option rights are not exercisable because the service time criterion was not met. The exercise of the option rights of each tranche after the vesting period has expired is linked to capital market-based performance targets.

The performance targets of all tranches were not met as of 30 September 2019. The potential shares are therefore not to be taken into account in the calculation of diluted earnings per share, irrespective of any pro-rata vesting that has already taken place. As a result, diluted earnings per share corresponds to the basic earnings per share. Irrespective of this, according to IAS 33 Earnings per Share, potential shares are only to be regarded as dilutive if their conversion into shares reduces earnings per share or increases the loss per share (IAS 33.41). If, however, the conversion into shares results in an increase in earnings per share or a reduction in the loss per share, this provides protection against dilution and the diluted earnings per share must be adjusted to the amount of basic earnings per share (IAS 33.43). As a result, diluted earnings per share correspond to basic earnings per share.

(11) Notes to the segment reporting

As part of the discontinuation of PWK's production activities, the Executive Board changed the segment reporting in the 2018 Consolidated Financial Statements. The changes apply analogously to these Interim Consolidated Financial Statements, including the restated comparative prior-year information. For further information on segment presentation and the definition of the segment result, please refer to the Notes to the 2018 Consolidated Financial Statements in section [I.: Segment reporting].

Definition of the segment result and effects of applying IFRS 16

The Executive Board assesses the success of the segments on the basis of revenue, gross profit and segment EBITDA (adjusted earnings figure) and sets forward-looking performance targets. The adjusted segment earnings figure segment EBITDA is defined as earnings before interest, taxes, depreciation and amortization (EBITDA) after adjustment for segment reconciliation items.

As a result of the application of IFRS 16, contracts for the rental of real estate in the elumeo Group are shown as financing transactions for the first time. This generally leads to the elimination of rental expenses (administrative expenses) and thus to an improvement in the previous segment EBITDA, as both the amortization of the newly recognised rights of use and the interest expenses for the newly recognised lease liabilities are not components of the segment EBITDA.

The Executive Board has reviewed the definition of the segment result against the backdrop of these effects. It has come to the conclusion that its internal reporting and segment information should continue to be based on the same disclosure, accounting and valuation methods as the Consolidated Financial Statements. By applying this consistency principle, the function of the accounting regulations under IFRSs as a uniform general standard is to be taken into account, particularly with regard to external communication with shareholders, investors, rating agencies, banks and other stakeholders.

For the purposes of internal information requirements, the Executive Board has decided to amend the internal reporting to include the amount of lease payments made in each reporting period (as the sum of principal and interest) as a separate financial indicator.

Segment Continuing operations

The segment Continuing operations consists of the Sales division and Group functions & eliminations.

The previous segments Sales division Germany & Italy and Sales division Others have been combined to form one Sales division. Group functions & eliminations include the Group-wide administrative, control and management functions of the parent company elumeo SE as well as the elimination of remaining intra-Group business relationships between continuing operations.

While revenues of the Sales division were still down on the prior-year quarter (-9.1% QoQ), the gross profit margin developed positively (Q3 2019: 50.5%, Q3 2018: 44.8%). As a result of the extensive cost reduction measures, especially in the area of selling expenses, total segment EBITDA continued to develop positively overall.

In 9M 2019, lease payments from former operate leases amounting to EUR 418 thousand (Q3 2019: EUR 141 thousand) were attributable to the Sales division in accordance with IFRS 16. In 9M 2018, rental expenses of EUR 294 thousand (Q3 2018: EUR 103 thousand) were still reported under administrative expenses of the Sales division.

Segment Discontinued operation Manufactory

The segment Discontinued operation Manufactory includes the business activities of PWK, consolidation effects as well as the costs of underutilisation and opportunity costs of distribution allocated to the division, which are, as part of the disclosure of the discontinued operation PWK, are reported in the Consolidated statement of income under continuing operations, because they were included in the invoice amounts for jewelry deliveries as part of the Group s internal cost allocation. In the opinion of the Executive Board, these costs will no longer be incurred in the future once the supply chain has been changed from PWK to supply by third parties. For the sake of comparability, these cost components were therefore allocated accordingly as part of internal management reporting.

The segment was no longer operating in 9M 2019. The costs of underutilisation and opportunity costs of distribution allocated to the segment are related to inventory manufactured by the manufacturing facility as of 31 December 2018, which were sold in 9M 2019.

(12) Intangible assets and property plant and equipment

In the third quarter of 2019, capital expenditures were limited to small-scale replacement investments.

The amortization of rights of use from real estate contracts (intangible assets) newly recognised as part of the first-time application of IFRS 16 amounted to EUR 373 thousand in 9M 2019 (Q3 2019: EUR 124 thousand).

(13) Inventories

Inventories declined to EUR 14.7 million as of 30 September 2019 (31 December 2018: EUR 20.5 million). This reduction is to be continued.

(14) Equity

Issued capital

The issued capital of elumeo SE as of 30 September 2019 totalled EUR 5,500,000 (31 December 2018: EUR 5,500,000) and is divided into 5,500,000 no-par value bearer shares with a theoretical share in the issued capital of EUR 1.00 per share.

There were no changes compared to the disclosures as of 31 December 2018.

Capital reserve

The capital reserve of elumeo SE as of 30 September 2019 amounted to EUR 34,416 thousand and increased compared to 31 December 2018 (EUR 34,380 thousand) due to equity-settled share-based remuneration commitments in accordance with IFRS 2.

Authorised Capital, Contingent Capital, convertible bonds and bonds with warrants

There were no changes compared to the disclosures as of 31 December 2018.

Share-based remuneration

As of 30 September 2019, the number of outstanding option rights from the SOP 2015 reduced to 233,257 option rights (30 September 2018: 256,004 option rights) due to the option rights forfeited (9M 2019: 30,562 option rights). No option rights were exercisable as of the reporting date as either the performance target criterion or the service period criterion were not met.

For the share-based remuneration commitments of the total of seven tranches (9M 2018: five tranches) from the SOP 2015, expenses totalling EUR 7 thousand were recognised in the third quarter of 2019 (Q3 2018: income of EUR 64 thousand).

There were no other significant changes compared to the disclosures as of 31 December 2018.

(15) Financial debt

As of 31 December 2018, elumeo SE had loan liabilities of EUR 2.0 million, which were repaid as scheduled with repayments of EUR 1.0 million in April 2019, EUR 0.2 million in June 2019 and EUR 0.3 million in September 2019. The remaining loan amount of EUR 0.5 million is to be repaid in December 2019.

(16) Other financial liabilities

In addition to minor finance lease liabilities for semi-automated order picking, warehousing and conveyor systems (plant and machinery), other financial liabilities relate in particular to the (current and non-current) leasing liabilities from rental agreements for office premises (real estate contracts) capitalised as part of the first-time application of IFRS 16.

(17) Deferred taxes

Deferred taxes arise from differences between the carrying amount recognised in the IFRS Consolidated Financial Statements and the carrying amount recognised for tax purposes as well as from tax loss carryforwards to the extent to which future utilisation is expected.

As a result of the discontinuation of the PWK operations, all deferred tax assets (elimination of intercompany profits) as of 31 December 2018 were derecognized in full as income taxes. The deferred tax expenses reported in the Consolidated statement of income in 9M 2018 were still attributable to the regular elimination of the intercompany profits of the Group's own production and supply companies included in inventories.

(18) Notes to the consolidated statement of cash flows

The Consolidated statement of cash flows was prepared in compliance with IAS 7 Statement of Cash Flows and shows the changes in the unrestricted cash and cash equivalents of the elumeo Group through cash inflows and outflows during the reporting period.

The elumeo Group has decided to present a Consolidated statement of cash flows in which the detailed information on the composition of the cash flows from operating, investing and financing activities exclusively includes the cash inflows and outflows from continuing operations (net cash flows from continuing operations). The cash inflows and outflows from discontinued operations are presented separately for each activity in a separate cumulative item (net cash flows from discontinued operations).

In accordance with IAS 7, cash flows are reported separately according to origin and use from operating, investing and financing activities. Cash inflows and outflows from operating activities are derived indirectly from earnings before taxes (EBT). Cash inflows and outflows from investing and financing activities are determined directly. Cash and cash equivalents comprise freely available cash on hand and bank balances. Bank overdrafts regularly used as short-term financing instruments are included as negative components in cash and cash equivalents.

The positive net cash flow from operating activities from continuing operations in 9M 2019 resulted mainly from improved earnings before taxes (EBT) from continuing operations (loss reduction) and a significant decrease in inventories.

The cash inflow was offset by a decrease in provisions and a decrease in other liabilities (mainly trade payables). In addition, non-cash income/expenses and transactions amounting to EUR +0.1 million were recorded. Overall, net cash flow from operating activities from continuing operations amounted to EUR +0.4 million in 9M 2019, compared to EUR -9.5 million in 9M 2018.

Net cash flow from investing activities from continuing operations totalled EUR -0.1 million in 9M 2019 (9M 2018: EUR -0.4 million).

The net cash flow from financing activities from continuing operations comprises payments for the repayment of financial debt and other financial liabilities (finance leases and operate leases in accordance with IFRS 16 and credit card liabilities).

Cash and cash equivalents as of the balance sheet date comprise EUR 0.4 million in unrestricted cash and cash equivalents (31 December 2018: EUR 2.6 million).

Supplementary Report

On 4 November 2019, we received an action for declaration of nullity and rescission against the Annual General Meeting held on 7 August 2019. The action was filed by Ottoman Strategy Holding SA with the Regional Court of Berlin on 10 September 2019. The appointment of a further member of the Executive Board and, in part, the discharge of members of the Executive Board are being contested. The prospects of success, having consulted with legal advisors, are considered unlikely.

Risk and Opportunity Report

The elumeo Group comprehensively describes its risk management system in the 2018 Annual Report. At present, the Executive Board does not see any significant changes to the risks and opportunities for the elumeo Group described in detail there.

Forecast Report

The gross profit margin is expected to improve further as a result of the multi-manufacturing strategy adopted in 2018 and the discontinuation of B2B business. Here we expect to see a significant recovery in the gross profit margin and thus disproportionately higher gross profit growth in the low double-digit percentage range. We attach greater importance to absolute gross profit growth than to revenue growth. As a result, we expect an overall revenue level below the previous year's level. We also expect the cost base to improve in 2019, both in absolute terms and in relation to revenue. In particular, reduced cost of reach and costs for external service providers should be significantly lower. However, we also expect reduced expenses in other cost items, especially in relation to revenue (e.g. costs for payment service providers and costs for SEO marketing). The cost-cutting measures that have been introduced are already having an effect and have largely been implemented. The restructuring of the procurement of goods has also been completed and will be further optimised. We will continue to expand the existing supplier network. In order to take account of the associated uncertainties, the elumeo Group's management is planning an EBITDA earnings corridor for the segment Continuing operations for 2019, ranging from a low negative single-digit million amount to break-even .

In order to be able to guarantee the solvency of the Group at all times, corresponding reductions in inventories are planned to continue. If the profitability of the Group cannot be increased, in case of scenarios that we classify as largely unlikely, or if an improvement in working capital cannot be achieved, this could endanger the solvency of the Group at any time. The top priority in 2019 continuous to be the return to a positive development in the profitability of the elumeo Group while at the same time improving liquidity.

Condensed Interim Consolidated Financial Statements

Consolidated statement of income (unaudited)

for the period from 1 July to 30 September 2019 (Q3 2019) and for the period from 1 January to 30 September 2019

Note EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		QoQ in %	1 Jan - 30 Sep 2019		1 Jan - 30 Sep 2018 restated*		9Mo9M in %
(4) Revenue (5) Cost of goods sold	10,205 100.0% 5,275	51.7%	8,935	11,229 100.0% 79.6%	-9.1% -41.0%	18,457	33,468 100.0% 55.1%	40,567 100.0% 31,871	78.6%	-17.5% -42.1%
Gross profit	4,930	48.3%	2,294	20.4%	115.0%	15,011	44.9%	8,695	21.4%	72.6%
(6) Selling expenses Administrative expenses (7) (8) Other operating income Other operating expenses (9)	4,516 1,927 43 -29	44.3% 18.9% 0.4% -0.3%	6,111 1,824 1 0 142	54.4% 16.2% 0.1% 1.3%	-26.1% 5.6% 308.0% -120.5%	13,637 5,382 72 96	40.7% 16.1% 0.2% 0.3%	17,904 5,330 69 313	44.1% 13.1% 0.2% 0.8%	-23.8% 1.0% 4.6% -69.3%
Earnings before interest and taxes (EBIT)	-1,441 -14.1%		-5,773 -51.4%		75.0%		-4,033 -12.0%	-14,782 -36.4%		72.7%
Interest income Interest and similar expenses (10) Financial result Earnings before	0 -47 -47	0.0% -0.5% -0.5%	4 -56 -52	0.0% -0.5% -0.5%	-99.7% 15.8% 10.1%	0 -165 -165	0.0% -0.5% -0.5%	4 -167 -164	0.0% -0.4% -0.4%	-99.5% 1.4% -0.8%
from continuing operations	-1,488 -14.6%		-5,825 -51.9%		74.5%		-4,197 -12.5%	-14,946 -36.8%		71.9%
Income taxes (13)	0	0.0%	-164	-1.5%	100.0%	0	0.0%	-335	-0.8%	100.0%
Earnings for the period from continuing operations	-1,488 -14.6%		-5,989 -53.3%		75.2%		-4,197 -12.5%	-15,281 -37.7%		72.5%
Earnings for the period (11),(12) from discontinued operations	5	0.0%	-435	-3.9%	101.1%	-1,343	-4.0%	5,023	12.4%	-126.7%
Earnings for the period	-1,483 -14.5%		-6,424 -57.2%		76.9%		-5,540 -16.6%	-10,258 -25.3%		46.0%
Earnings of shareholders of elumeo SE	-1,483 -14.5%		-6,424 -57.2%		76.9%	-5,540 -16.6%		-10,258 -25.3%		46.0%
(15) Earnings per share in EUR (basis and diluted) applied to: Earnings of shareholders total - Earnings of shareholders - from continuing operations Earnings of shareholders - from discontinued operations	-0.27 -0.27 0.00		-1.17 -1.09 -0.08		76.9% 75.2% 101.1%	-1.01 -0.76 -0.24		-1.87 -2.78 0.91		46.0% 72.5% -126.7%

* Some of the amounts shown differ from the amounts reported in the Quarterly Release Q3/2018 due to the classification of production activities as the discontinued operation PWK in accordance with IFRS 5 (see section [Principles | General information and comparability of disclosures]).

Consolidated statement of comprehensive income (unaudited)

for the period from 1 July to 30 September 2019 (Q3 2019) and for the period from 1 January to 30 September 2019

Note EUR thousand % of revenue	Q3 2019		Q3 2018 restated*		QoQ in %	1 Jan - 30 Sep 2019		1 Jan - 30 Sep 2018 restated*		9Mo9M in %
Earnings for the period		-1,483 -14.5%	-6,424 -57.2%		76.9%	-5,540 -16.6%		-10,258 -25.3%		46.0%
Items which will be reclassified to the consolidated statement of income in subsequent periods:
Differences from foreign currency translation of foreign subsidiaries	-39	-0.4%	1	0.0%	n.a.	-43	-0.1%	-30	-0.1%	-44.9%
Other comprehensive income (16) from continuing operations	-39	-0.4%	1	0.0%	n.a.	-43	-0.1%	-30	-0.1%	-44.9%
Differences from foreign currency translation of foreign subsidiaries	267	2.6%	1,109	9.9%	-75.9%	1,630	4.9%	1,619	4.0%	0.7%
Other comprehensive income from discontinued operations (16)	267	2.6%	1,109	9.9%	-75.9%	1,630	4.9%	1,619	4.0%	0.7%
Total comprehensive income		-1,255 -12.3%		-5,314 -47.3%	76.4%		-3,954 -11.8%	-8,669 -21.4%		54.4%
Total comprehensive income of shareholders of elumeo SE		-1,255 -12.3%	-5,314 -47.3%		76.4%	-3,954 -11.8%		-8,669 -21.4%		54.4%

* Some of the amounts shown differ from the amounts reported in the Quarterly Release Q3/2018 due to the classification of production activities as the discontinued operation PWK in accordance with IFRS 5 (see section [Principles | General information and comparability of disclosures]).

Consolidated statement of financial position (unaudited)

as of 30 September 2019 and 31 December 2018

A S S E T S

Note	30 Sep 2019				Change
EUR thousand % of balance sheet total			31 Dec 2018 578 2.0% 2,207 7.7% 409 1.4% 3,193 11.1% 20,453 71.0% 1,416 4.9%		in %
Non-current assets
(17) Intangible assets	4,185	17.9%			624.3%
(17) Property, plant and equipment	1,863	8.0%			-15.6%
(19) Other financial assets	372	1.6%			-8.9%
Total non-current assets	6,674	28.5%			109.0%
Current assets
(18) Inventories	14,665	62.6%			-28.3%
(0) Trade receivables	951	4.1%			-32.8%
(0) Receivables due from related parties	20	0.1%	1 2	0.0%	71.6%
(19) Other financial assets	81	0.3%	5 8	0.2%	38.9%
(20) Other non-financial assets	552	2.4%	905	3.1%	-39.0%
(0) Cash and cash equivalents	430	1.8%	2,608	9.0%	-83.5%
Total current assets	16,699	71.3%	25,451	88.3%	-34.4%
(11),(12) Assets held for sale	46	0.2%	183	0.6%	-75.0%
Total assets	23,419	100.0%	28,827	100.0%	-18.8%

Consolidated statement of financial position (unaudited)

as of 30 September 2019 and 31 December 2018

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

Note EUR thousand % of balance sheet total		30 Sep 2019 31 Dec 2018			Change in %
Equity
(0) Issued capital	5,500	23.5%	5,500	19.1%	0.0%
(0),(1) Capital reserve	34,416	147.0%	34,380	119.3%	0.1%
Accumulated losses	-44,396 -189.6%		-38,856 -134.8%		-14.3%
(0) Foreign currency translation reserve	7,239	30.9%	5,653	19.6%	28.1%
(21) Total equity	2,760	11.8%	6,677	23.2%	-58.7%
Attributable to shareholders of elumeo SE	2,760	11.8%	6,677	23.2%	-58.7%
Non-current liabilities
(23) Other non-current financial liabilities	3,311	14.1%	0	0.0%	n.a.
(24) Provisions	7,503	32.0%	7,455	25.9%	0.6%
(26) Other non-financial liabilities Total non-current labilities	25	0.1% 46.3%	25	0.1% 25.9%	0.0% 44.9%
	10,839		7,480
Current liabilities
(22) Financial debt	541	2.3%	2,000	6.9%	-72.9%
(23) Other financial liabilities	479	2.0%	260	0.9%	84.4%
Provisions (24)	425	1.8%	868	3.0%	-51.0%
(0) Liabilities due to related parties	7	0.0%	5 7	0.2%	-87.3%
Trade payables	5,823	24.9%	8,950	31.0%	-34.9%
Advance payments received	5 5	0.2%	5 9	0.2%	-6.2%
Tax liabilities (25)	100	0.4%	100	0.3%	0.0%
(26) Other non-financial liabilities	2,132	9.1%	1,366	4.7%	56.0%
Total current liabilities	9,562	40.8%	13,660	47.4%	-30.0%
Liabilities directly associated with
(11),(12) assets held vor sale	258	1.1%	1,011	3.5%	-74.5%
Total equity & liabilities	23,419	100.0%	28,827	100.0%	-18.8%

Consolidated statement of changes in equity (unaudited)

for the period from 1 January to 30 September 2019

Reason for change Note	Attributable to shareholders of elumeo SE
EUR thousand	Issued capital	Capital reserve	Foreign currency translation reserve	Total equity
1 January 2019	5,500	34,380	-38,856	5,653	6,677
Equity-settled share-based remuneration	(21)	37			37
Other comprehensive income	(16)			1,587	1,587
Earnings for the period			-5,540		-5,540
Total comprehensive income			-5,540	1,587	-3,954
30 September 2019	5,500	34,416	-44,396	7,239	2,760

Consolidated statement of changes in equity (continuation) (unaudited)

for the period from 1 January to 30 September 2018

Reason for change	Note	Attributable to shareholders of elumeo SE
EUR thousand	Issued capital	Capital Accumu- lated reserve losses		Foreign currency translation reserve	Total equity
1 January 2018	5,500	34,179	-11,452	3,725	31,952
Equity-settled share-based remuneration	(12)	44			44
Other comprehensive income Earnings for the period			-10,258	1,589	1,589 -10,258
Total comprehensive income			-10,258	1,589	-8,669
30 September 2018	5,500	34,223	-21,710	5,314	23,327

Consolidated statement of cash flows (unaudited)

for the period from 1 January to 30 September 2019

Note EUR thousand	1 Jan - 30 Sep 2019	1 Jan - 30 Sep 2018 restated*	9Mo9M in %
Earnings before taxes (EBT) of continuing operations	-4,197	-14,946	71.9%
Earnings before taxes (EBT) of discontinued operations	-1,343	+5,222	-125.7%
Earnings before taxes (EBT)	-5,540	-9,724	43.0%
+/- Depreciation and amortization on non-current assets	+927	+613	51.3%
+/- Increase/decrease in provisions	-566	-427	-32.6%
+/- Equity-settled share-based remuneration	+37	+44	-17.8%
+/- Other non-cash expenses/income	+65	-33	299.3%
Non-cash current interest expenses +	+42	+1	n.a.
-/+ Increase/decrease in inventories	+5,788	+3,002	92.8%
-/+ Increase/decrease in other assets	+723	+2,052	-64.7%
+/- Increase/decrease in other liabilities	-2,417	+204	n.a.
Net cash flow from operating activities =
of continuing operations	+392	-9,489	104.1%
Net cash flow from operating activities =
from discontinued operations	-535	+6,405	-108.4%

* Some of the amounts shown differ from the amounts reported in the Quarterly Release Q3/2018 due to the classification of production activities as the discontinued operation PWK in accordance with IFRS 5 (see section [Principles | General information and comparability of disclosures]).

Consolidated statement of cash flows (continuation) (unaudited)

for the period from 1 January to 30 September 2019

	Note	1 Jan - 30 Sep 2019	1 Jan - 30 Sep 2018	9Mo9M in %
	EUR thousand		restated*
-	Payments for investments in intangible assets	-8	-80	89.6%
-	Payments for investments in property, plant and equipment	-132	-321	58.8%
+	Proceeds from sale of intangible assets
	and property, plant and equipment	+9	0	n.a.
=	Net cash flow from investing activities
	of continuing operations	-131	-401	67.2%
=	Net cash flow from investing activities
	from discontinued operations	0	+3,886	-100.0%
-	Payments for the redemption of financial debt	-1,500	0	n.a.
-	Payments (net) for redemption of
	other financial liabilties	-518	-203	-155.9%
=	Net cash flow from financing activities
	of continuing operations	-2,018	-203	-896.4%
=	Net cash flow from financing activities
	from discontinued operations	0	+957	-100.0%
	+/- Net increase/decrease in cash and cash equivalents	-2,293	+1,155	-298.5%
	+/- Effects of foreign currency translation on
	cash and cash equivalents	+5	-17	131.0%
	+/- Changes in cash and cash equivalents
	relassified as part of a disposal group	+110	-36	403.0%
+	Cash and cash equivalents at beginning of period	+2,608	+1,511	72.6%
=	Cash and cash equivalents at end of period	+430	+2,613	-83.6%
	Reconciliation of cash and cash equivalents
	Cash and cash equivalents	+430	+3,418	-87.4%
-	Current account overdrafts	0	-805	100.0%
=	Cash and cash equivalents at end of period	+430	+2,613	-83.6%

* Some of the amounts shown differ from the amounts reported in the Quarterly Release Q3/2018 due to the classification of production activities as the discontinued operation PWK in accordance with IFRS 5 (see section [Principles | General information and comparability of disclosures]).

Group segment reporting (unaudited)

Segment information

The following tables show the development of the segment-specific financial performance indicators of the new segments Continuing operations and Discontinued operation Manufactory in Q3 2019 and Q3 2018 and 9M 2019 and 9M 2018, respectively, as well as the change in the period comparison (QoQ and 9Mo9M):

			Q3 2019
EUR thousand % of (segment) revenue	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	10,205 0	100.0% 0.0%	5,154 2	50.5% n.a.	-255 -700	-2.5% n.a.
Continuing operations	10,205	100.0%	5,155	50.5%	-955	-9.4%
Discontinued operation Manufactory	0	0.0%	-225	n.a.	-225	n.a.
Total	10,205	100.0%	4,930	48.3%	-1,180	-11.6%
			Q3 2018
EUR thousand % of (segment) revenue	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	11,229 0	100.0% 0.0%	5,033 82	44.8% n.a.	-2,159 -502	-19.2% n.a.
Continuing operations	11,229	100.0%	5,115	45.5%	-2,662	-23.7%
Discontinued operation Manufactory	0	0.0%	-1,356	n.a.	-1,611	n.a.
Total	11,229	100.0%	3,759	33.5%	-4,272	-38.0%

			QoQ
EUR thousand in %	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	-1,024 0	-9.1% n.a.	121 -80	2.4% -97.8%	1,905 -198	88.2% -39.4%
Continuing operations	-1,024	-9.1%	41	0.8%	1,707	64.1%
Discontinued operation Manufactory	0	n.a.	1,131	83.4%	1,386	86.0%
Total	-1,024	-9.1%	1,172	31.2%	3,093	72.4%
			1 Jan - 30 Sep 2019
EUR thousand % of (segment) revenue	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	33,468 0	100.0% 0.0%	15,842 1 8	47.3% n.a.	-422 -1,716	-1.3% n.a.
Continuing operations	33,468	100.0%	15,861	47.4%	-2,139	-6.4%
Discontinued operation Manufactory	0	0.0%	-850	n.a.	-850	n.a.
Total	33,468	100.0%	15,011	44.9%	-2,989	-8.9%
			1 Jan - 30 Sep 2018
EUR thousand % of (segment) revenue	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	40,567 0	100.0% 0.0%	14,196 88	35.0% n.a.	-6,754 -1,469	-16.6% n.a.
Continuing operations	40,567	100.0%	14,284	35.2%	-8,223	-20.3%
Discontinued operation Manufactory	0	0.0%	743	n.a.	-198	n.a.
Total	40,567	100.0%	15,028	37.0%	-8,421	-20.8%

	9Mo9M
EUR thousand in %	Revenue		Gross profit		Segment EBITDA
Sales division Group functions & eliminations	-7,099 0	-17.5% n.a.	1,646 -69	11.6% -79.1%	6,331 -247	93.7% -16.8%
Continuing operations	-7,099	-17.5%	1,576	11.0%	6,084	74.0%
Discontinued operation Manufactory	0	n.a.		-1,593 -214.3%		-652 -329.5%
Total	-7,099	-17.5%	-17	-0.1%	5,432	64.5%

Detailed statement of income of the newly defined segments for the period from 1 July to 30 September 2019 (Q3 2019) and the comparable prior-year period

Q3 2019 EUR thousand % of revenue	Sales division	Group functions & elimi- nations	Con- tinuing operations	Group owned manu- factory (stand alone)	Interseg- mental correc- tions	Group owned manufactory (economic "as-if" presen tation)	Interseg- mental consoli- dation	Discon tinued operation Manu factory
Revenue	10,205	0	10,205 100.0%	0	-225	-225 100.0%	225	0
Cost of goods sold	5,052	-2	5,050 49.5%	0		0 0.0%	225	225
Gross profit	5,154	2	5,155 50.5%	0	-225	-225 100.0%	0	-225
Selling expenses	4,516	0	4,516 44.3%	0		0 0.0%		0
Administrative expenses	1,199 9	721 1 7	1,920 18.8% 27 0.3%	0 0		0 0.0% 0 0.0%		0 0
Other operating income Other operating expenses	0	0	0 0.0%	0		0 0.0%		0
Earnings before interest and taxes (EBIT)	-552	-702	-1,254 -12.3%	0	-225	-225 100.0%	0	-225
Interest income	0	0	0	0		0		0
Interest and similar expenses	-39	-8	0.0% -47 -0.5%	0		0.0% 0 0.0%		0
Financial result	-39	-8	-47 -0.5%	0	0	0 0.0%	0	0
Earnings before income taxes (EBT)	-591	-710	-1,301 -12.7%	0	-225	-225 100.0%	0	-225
Earnings for the period	-591	-710	-1,301 -12.7%	0	-225	-225 100.0%	0	-225
Earnings of shareholders of elumeo SE	-591	-710	-1,301 -12.7%	0	-225	-225 100.0%	0	-225
Earnings before interest and taxes (EBIT)	-552	-702	-1,254 -12.3%	0	-225	-225 100.0%	0	-225
Depreciation and amortization on property, plant and equipment and intangible assets	298	2	299 2.9%	0		0 0.0%		0
Segment EBITDA	-255	-700	-955 -9.4%	0	-225	-225 100.0%	0	-225

Q3 2018 EUR thousand % of revenue	Sales	Group division functions & elimi- nations	Con- tinuing operations		Group owned manufactory (stand alone)		Interseg- Group mental owned manufactory correc- tions (economic "as-if" presen- tation)		Interseg- mental consoli- dation	Discon tinued operation Manu factory
Revenue	11,229	0		11,229 100.0%		2,811 100.0%	-1,646		1,165 100.0%	-1,165	0
Cost of goods sold	6,197	-82	6,115	54.5%		2,521 89.7%			2,521 216.4%	-1,165	1,356
Gross profit	5,033	8 2	5,115	45.5%	291	10.3%	-1,646		-1,356 -116.4%	0	-1,356
Selling expenses	6,067	44	6,111	54.4%	0	0.0%		0	0.0%		0
Administrative expenses	1,330	558		1,889 16.8%	425	15.1%		425	36.5%		425
Other operating income	8	2	1 0	0.1%	0	0.0%		0	0.0%		0
Other operating expenses	0	0	0	0.0%	0	0.0%		0	0.0%		0
Earnings before interest and taxes (EBIT)	-2,357	-518		-2,875 -25.6%		-135 -4.8%	-1,646		-1,781 -152.9%	0	-1,781
Interest income	0	4	4	0.0%	0	0.0%		0	0.0%		0
Interest and similar expenses Financial result	-4 -4	-52 -48	-56 -52	-0.5% -0.5%	-95 -95	-3.4% -3.4%	0	-95 -95	-8.2% -8.2%	0	-95 -95
Earnings before income taxes (EBT)	-2,361	-566		-2,927 -26.1%	-230	-8.2%	-1,646		-1,876 -161.1%	0	-1,876
Income tax	-164	0	-164	-1.5%	-61	-2.2%		-61	-5.2%		-61
Earnings for the period	-2,525	-566		-3,091 -27.5%		-291 -10.4%	-1,646		-1,938 -166.3%	0	-1,938
Earnings of shareholders of elumeo SE	-2,525	-566	-3,091 -27.5%			-291 -10.4%	-1,646		-1,938 -166.3%	0	-1,938
Earnings before interest and taxes (EBIT)	-2,357	-518		-2,875 -25.6%		-135 -4.8%	-1,646		-1,781 -152.9%	0	-1,781
Depreciation and amortization on property,
plant and equipment and intangible assets	197	1 6	213	1.9%	170	6.1%		170	14.6%		170
Segment EBITDA	-2,159	-502		-2,662 -23.7%	36	1.3%	-1,646		-1,611 -138.3%	0	-1,611

Detailed statement of income of the newly defined segments for the period from 1 January to 30 September 2019 (9M 2019) and the comparable prior-year period

1 Jan - 30 Sep 2019 EUR thousand % of revenue	Sales division	Group functions & elimi- nations	Con- tinuing operations		Group owned manu- factory (stand alone)	Interseg- mental correc- tions	Group owned manufactory (economic "as-if" presen tation)		Interseg- mental consoli- dation	Discon tinued operation Manu factory
Revenue Cost of goods sold	33,468 17,625	0 -18	17,607	33,468 100.0% 52.6%	0 0	-850	0	-850 100.0% 0.0%	850 850	0 850
Gross profit	15,842	1 8	15,861	47.4%	0	-850		-850 100.0%	0	-850
Selling expenses	13,637	0	13,637	40.7%	0		0	0.0%		0
Administrative expenses	3,578	1,768	5,346	16.0%	0		0	0.0%		0
Other operating income	34	22	5 6	0.2%	0		0	0.0%		0
Other operating expenses	0	0	0	0.0%	0		0	0.0%		0
Earnings before interest and taxes (EBIT)	-1,338	-1,728		-3,066 -9.2%	0	-850		-850 100.0%	0	-850
Interest income	0	0	0	0.0%	0		0	0.0%		0
Interest and similar expenses	-123	-42	-165	-0.5%	0		0	0.0%		0
Financial result	-123	-42	-165	-0.5%	0	0	0	0.0%	0	0
Earnings before income taxes (EBT)	-1,461	-1,770	-3,231	-9.7%	0	-850		-850 100.0%	0	-850
Earnings for the period	-1,461	-1,770	-3,231	-9.7%	0	-850		-850 100.0%	0	-850
Earnings of shareholders of elumeo SE	-1,461	-1,770	-3,231	-9.7%	0	-850		-850 100.0%	0	-850
Earnings before interest and taxes (EBIT)	-1,338	-1,728		-3,066 -9.2%	0	-850		-850 100.0%	0	-850
Depreciation and amortization on property, plant and equipment and intangible assets	915	1 2	927	2.8%	0		0	0.0%		0
Segment EBITDA	-422	-1,716	-2,139	-6.4%	0	-850		-850 100.0%	0	-850

1 Jan - 30 Sep 2018 EUR thousand % of revenue	Sales	Group division functions & elimi- nations	Con- tinuing operations			Group Interseg- owned manufactory correc- (stand alone)			Group Interseg- owned manufactory consoli- (economic "as-if" presen tation)		Discon tinued operation Manu factory
Revenue	40,567	0		40,567 100.0%		18,490 100.0%	-4,100		14,390 100.0%	-14,390	0
Cost of goods sold	26,370	-88		26,282 64.8%		13,646 73.8%			13,646 94.8%	-14,390	-743
Gross profit	14,196	8 8		14,284 35.2%		4,843 26.2%	-4,100	743	5.2%	0	743
Selling expenses	17,859	45		17,904 44.1%	0	0.0%		0	0.0%		0
Administrative expenses	3,735	1,551	5,285	13.0%	1,448	7.8%		1,448	10.1%		1,448
Other operating income	5 9	1 0	69	0.2%	0	0.0%		0	0.0%		0
Other operating expenses	0	0	0	0.0%	0	0.0%		0	0.0%		0
Earnings before interest and taxes (EBIT)	-7,338	-1,498		-8,836 -21.8%	3,395	18.4%	-4,100		-705 -4.9%	0	-705
Interest income	0	4	4	0.0%	0	0.0%		0	0.0%		0
Interest and similar expenses Financial result	-14 -14	-153 -149	-167	-0.4% -164 -0.4%	-258 -258	-1.4% -1.4%	0	-258 -258	-1.8% -1.8%	0	-258 -258
Earnings before income taxes (EBT)	-7,353	-1,647		-8,999 -22.2%	3,138	17.0%	-4,100	-962	-6.7%	0	-962
Income tax	-335	0		-335 -0.8%	-183	-1.0%		-183	-1.3%		-183
Earnings for the period	-7,688	-1,647		-9,334 -23.0%		2,954 16.0%	-4,100		-1,145 -8.0%	0	-1,145
Earnings of shareholders of elumeo SE	-7,688	-1,647	-9,334 -23.0%			2,954 16.0%	-4,100	-1,145	-8.0%	0	-1,145
Earnings before interest and taxes (EBIT)	-7,338	-1,498		-8,836 -21.8%	3,395	18.4%	-4,100		-705 -4.9%	0	-705
Depreciation and amortization on property,
plant and equipment and intangible assets	584	29	613	1.5%	507	2.7%		507	3.5%		507
Segment EBITDA	-6,754	-1,469		-8,223 -20.3%	3,902	21.1%	-4,100	-198	-1.4%	0	-198

Segment reconciliation to Group earnings

Segment reconciliation for the period from 1 July to 30 September 2019 (Q3 2019) and the comparable prior-year period

The segment EBITDA of the reportable segment Continuing operations can be reconciled to earnings for the period from continuing operations and earnings for the period of the elumeo Group as follows (Q3 2019 and Q3 2018):

Q3 2019 EUR thousand % of revenue	Segment informationen (Continuing operations)		Effects from foreign currency trans- lation	Equity- settled share- based remune- ration	Legal and consulting to the orderly liquidation of the Group owned manu- factory	Cost of under- fees related utilization charged by the manu- factory and opportunity cost of distribution	Earnings for the period from discon- tinued	Segment recon ciliation items of con tinuing operations operations	Group information (Continuing operations)
Revenue Cost of goods sold	10,205 100.0% 5,050	49.5%	0			225		0 225	5,275	10,205 100.0% 51.7%
Gross profit	5,155	50.5%	0	0	0	-225	0	-225	4,930	48.3%
Selling expenses	4,516	44.3%						0	4,516	44.3%
Administrative expenses	1,920	18.8%		7				7	1,927	18.9%
Other operating income	27	0.3%	1 6					1 6	43	0.4%
Other operating expenses	0	0.0%	-35		6			-29	-29	-0.3%
Earnings before interest and taxes (EBIT)	-1,254 -12.3%		5 1	-7	-6	-225	0	-187		-1,441 -14.1%
Interest income Interest and similar expenses	0 -47	0.0% -0.5%						0 0	0 -47	0.0% -0.5%
Financial result	-47	-0.5%	0	0	0	0	0	0	-47	-0.5%
Earnings before income taxes (EBT)			5 1	-7	-6	-225	0	-187
from continuing operations	-1,301 -12.7%									-1,488 -14.6%
Earnings for the period
from continuing operations	-1,301 -12.7%		5 1	-7	-6	-225	0	-187		-1,488 -14.6%
Earnings for the period
from discontinued operations	0	0.0%					5	5	5	0.0%
Earnings for the period	-1,301 -12.7%		5 1	-7	-6	-225	5	-182		-1,483 -14.5%
Earnings of shareholders of elumeo SE	-1,301	-12.7%	5 1	-7	-6	-225	5	-182		-1,483 -14.5%
Earnings before interest and taxes (EBIT)	-1,254 -12.3%		5 1	-7	-6	-225	0	-187		-1,441 -14.1%
Depreciation and amortization on property,
plant and equipment and intangible assets	299	2.9%						0	299	2.9%
EBITDA	-955	-9.4%	5 1	-7	-6	-225	0	-187		-1,142 -11.2%

Q3 2018 EUR thousand % of revenue	Segment informationen (Continuing operations)		Effects from foreign currency trans- lation	Equity- settled share- based ration	Cost of under- utilization charged by remune- the manu- factory and opportunity cost of distribution	Earnings for the period from discon- tinued	Segment recon ciliation items of con tinuing operations operations	Group information (Continuing operations)
Revenue		11,229 100.0%					0		11,229 100.0%
Cost of goods sold	6,115	54.5%	21		2,800		2,821	8,935	79.6%
Gross profit	5,115	45.5%	-21	0	-2,800	0	-2,821	2,294	20.4%
Selling expenses	6,111	54.4%					0	6,111	54.4%
Administrative expenses	1,889	16.8%		-64			-64	1,824	16.2%
Other operating income	1 0	0.1%	0				0	1 0	0.1%
Other operating expenses	0	0.0%	142				142	142	1.3%
Earnings before interest and taxes (EBIT)		-2,875 -25.6%	-163	64	-2,800	0	-2,898		-5,773 -51.4%
Interest income	4	0.0%					0	4	0.0%
Interest and similar expenses	-56	-0.5%					0	-56	-0.5%
Financial result	-52	-0.5%	0	0	0	0	0	-52	-0.5%
Earnings before income taxes (EBT)
from continuing operations		-2,927 -26.1%	-163	64	-2,800	0	-2,898		-5,825 -51.9%
Income tax	-164	-1.5%					0	-164	-1.5%
Earnings for the period from continuing operations		-3,091 -27.5%	-163	64	-2,800	0	-2,898		-5,989 -53.3%
Earnings for the period
from discontinued operations	0	0.0%				-435	-435	-435	-3.9%
Earnings for the period		-3,091 -27.5%	-163	64	-2,800	-435	-3,333		-6,424 -57.2%
Earnings of shareholders of elumeo SE	-3,091	-27.5%	-163	64	-2,800	-435	-3,333	-6,424 -57.2%
Earnings before interest and taxes (EBIT)		-2,875 -25.6%	-163	64	-2,800	0	-2,898		-5,773 -51.4%
Depreciation and amortization on property,	213						0	213
plant and equipment and intangible assets		1.9%							1.9%
EBITDA		-2,662 -23.7%	-163	64	-2,800	0	-2,898		-5,560 -49.5%

The segment EBITDA of the reportable segment Discontinued operation Manufactory can be reconciled to earnings for the period from the discontinued operation PWK as follows (Q3 2019 and Q3 2018):

Q3 2019 EUR thousand % of revenue	Segment information (Discontinued operation Manufactory)	Effects from foreign currency trans- lation	In terms of type, obligations in connec- the discon- tinued operation	Cost of under- amount & utilization utilization charged by uncertain the manu- factory and tion with opportunity cost of distribution	Recon- ciliation items of the discon- tinued operation	Group information (Discontinued operation PWK)
Revenue Cost of goods sold	0 225	0		-225	0 -225	0 0
Gross profit	-225	0	0	225	225	0
Other operating expenses	0	245			245	245
Earnings before interest and taxes (EBIT)	-225	-245	0	225	-20	-245
Interest and similar expenses	0		-13		-13	-13
Financial result	0	0	-13	0	-13	-13
Earnings before income taxes (EBT) from the discontinued operation	-225	-245	-13	225	-32	-257
Earnings for the period from the discontinued operation	-225	-245	-13	225	-32	-257
Earnings of shareholders of elumeo SE	-225	-245	-13	225	-32	-257
Earnings before interest and taxes (EBIT)	-225	-245	0	225	-20	-245
Depreciation and amortization on property, plant and equipment and intangible assets	0				0	0
EBITDA	-225	-245	0	225	-20	-245

Q3 2018 EUR thousand % of revenue	Segment information (Discontinued operation Manufactory)	Effects from foreign trans- lation	Cost of under- utilization currency charged by the manu- factory and opportunity cost of distribution	Recon- ciliation items of the discon- tinued operation	Group information (Discontinued operation PWK)
Revenue	0			0	0
Cost of goods sold	1,356	-21	-2,800	-2,821	-1,465
Gross profit	-1,356	21	2,800	2,821	1,465
Administrative expenses	425			0	425
Other operating income	0	0		0	0
Other operating expenses	0	954		954	954
Earnings before interest and taxes (EBIT)	-1,781	-933	2,800	1,866	8 5
Interest income	0 -95			0 0	0 -95
Interest and similar expenses Financial result	-95	0	0	0	-95
Earnings before income taxes (EBT)
from the discontinued operation	-1,876	-933	2,800	1,866	-10
Income tax	-61			0	-61
Earnings for the period
from the discontinued operation	-1,938	-933	2,800	1,866	-71
Earnings of shareholders of elumeo SE	-1,938	-933	2,800	1,866	-71
Earnings before interest and taxes (EBIT)	-1,781	-933	2,800	1,866	8 5
Depreciation and amortization on property, plant and equipment and intangible assets	170			0	170
EBITDA	-1,611	-933	2,800	1,866	256

Segment reconciliation for the period from 1 January to 30 September 2019 (9M 2019) and the comparable prior-year period

The segment EBITDA of the reportable segment Continuing operations can be reconciled to earnings for the period from continuing operations and the earnings for the period of the elumeo Group as follows (9M 2019 and 9M 2018):

1 Jan - 30 Sep 2019 EUR thousand % of revenue	Segment informationen (Continuing operations)		Effects from foreign currency trans- lation	Equity- settled share- based remune- ration	Legal and consulting to the orderly liquidation of the Group owned manu- factory	Cost of under- fees related utilization charged by the manu- factory and opportunity cost of distribution	Earnings for the period from discon- tinued	Segment recon ciliation items of con tinuing operations operations	Group information (Continuing operations)
Revenue	33,468 100.0%							0		33,468 100.0%
Cost of goods sold	17,607	52.6%	0			850		850	18,457	55.1%
Gross profit	15,861	47.4%	0	0	0	-850	0	-850	15,011	44.9%
	13,637	40.7%						0	13,637	40.7%
Selling expenses Administrative expenses	5,346	16.0%		3 7				37	5,382	16.1%
Other operating income	5 6	0.2%	1 6					1 6	72	0.2%
Other operating expenses	0	0.0%	0		96			96	96	0.3%
Earnings before interest and taxes (EBIT)	-3,066	-9.2%	1 6	-37	-96	-850	0	-967		-4,033 -12.0%
Interest income	0	0.0%						0	0	0.0%
Interest and similar expenses	-165	-0.5%						0	-165	-0.5%
Financial result	-165	-0.5%	0	0	0	0	0	0	-165	-0.5%
Earnings before income taxes (EBT) from continuing operations	-3,231	-9.7%	1 6	-37	-96	-850	0	-967		-4,197 -12.5%
Earnings for the period from continuing operations	-3,231	-9.7%	1 6	-37	-96	-850	0	-967		-4,197 -12.5%
Earnings for the period
from discontinued operations	0	0.0%					-1,343	-1,343	-1,343	-4.0%
Earnings for the period	-3,231	-9.7%	1 6	-37	-96	-850	-1,343	-2,309		-5,540 -16.6%
Earnings of shareholders of elumeo SE	-3,231	-9.7%	1 6	-37	-96	-850	-1,343	-2,309		-5,540 -16.6%
Earnings before interest and taxes (EBIT)	-3,066	-9.2%	1 6	-37	-96	-850	0	-967		-4,033 -12.0%
Depreciation and amortization on property,
plant and equipment and intangible assets	927	2.8%						0	927	2.8%
EBITDA	-2,139	-6.4%	1 6	-37	-96	-850	0	-967	-3,105	-9.3%

1 Jan - 30 Sep 2018 EUR thousand % of revenue	Segment informationen (Continuing operations)		Effects from foreign currency trans- lation	Equity- settled share- based ration	Cost of under- utilization charged by remune- the manu- factory and opportunity cost of distribution	Earnings for the period from discon- tinued	Segment recon ciliation items of con tinuing operations operations	Group information (Continuing operations)
Revenue	40,567 100.0%						0		40,567 100.0%
Cost of goods sold	26,282	64.8%	68		5,521		5,589	31,871	78.6%
Gross profit	14,284	35.2%	-68	0	-5,521	0	-5,589	8,695	21.4%
Selling expenses	17,904	44.1%					0	17,904	44.1%
Administrative expenses	5,285	13.0%		44			44	5,330	13.1%
Other operating income	69	0.2%	0				0	69	0.2%
Other operating expenses	0	0.0%	313				313	313	0.8%
Earnings before interest and taxes (EBIT)	-8,836 -21.8%		-381	-44	-5,521	0	-5,946	-14,782 -36.4%
Interest income	4	0.0%					0	4	0.0%
Interest and similar expenses	-167	-0.4%					0	-167	-0.4%
Financial result	-164	-0.4%	0	0	0	0	0	-164	-0.4%
Earnings before income taxes (EBT)			-381	-44		0
from continuing operations	-8,999 -22.2%				-5,521		-5,946	-14,946 -36.8%
Income tax	-335	-0.8%					0	-335	-0.8%
Earnings for the period
from continuing operations		-9,334 -23.0%	-381	-44	-5,521	0	-5,946	-15,281 -37.7%
Earnings for the period
from discontinued operations	0	0.0%				5,023	5,023	5,023	12.4%
Earnings for the period		-9,334 -23.0%	-381	-44	-5,521	5,023	-924	-10,258 -25.3%
Earnings of shareholders of elumeo SE	-9,334 -23.0%		-381	-44	-5,521	5,023	-924	-10,258 -25.3%
Earnings before interest and taxes (EBIT)	-8,836 -21.8%		-381	-44	-5,521	0	-5,946	-14,782 -36.4%
Depreciation and amortization on property,
plant and equipment and intangible assets	613	1.5%					0	613	1.5%
EBITDA	-8,223 -20.3%		-381	-44	-5,521	0	-5,946	-14,169 -34.9%

The segment EBITDA of the reportable segment Discontinued operation Manufactory can be reconciled to the earnings for the period from the discontinued operation PWK as follows (9M 2019 and 9M 2018):

1 Jan - 30 Sep 2019 EUR thousand % of revenue	Segment information (Discontinued operation Manufactory)	Effects from foreign currency trans- lation	In terms of type, obligations in connec- the discon- tinued operation	Cost of under- amount & utilization utilization charged by uncertain the manu- factory and tion with opportunity cost of distribution	Recon ciliation items of the discon tinued operation	Group information (Discontinued operation PWK)
Revenue Cost of goods sold	0 850	0		-850	0 -850	0 0
Gross profit	-850	0	0	850	850	0
Other operating expenses	0	1,571			1,571	1,571
Earnings before interest and taxes (EBIT)	-850	-1,571	0	850	-721	-1,571
Interest and similar expenses	0		-38		-38	-38
Financial result	0	0	-38	0	-38	-38
Earnings before income taxes (EBT) from the discontinued operation	-850	-1,571	-38	850	-759	-1,609
Earnings for the period from the discontinued operation	-850	-1,571	-38	850	-759	-1,609
Earnings of shareholders of elumeo SE	-850	-1,571	-38	850	-759	-1,609
Earnings before interest and taxes (EBIT)	-850	-1,571	0	850	-721	-1,571
Depreciation and amortization on property, plant and equipment and intangible assets	0				0	0
EBITDA	-850	-1,571	0	850	-721	-1,571

1 Jan - 30 Sep 2018 EUR thousand % of revenue	Segment information (Discontinued operation Manufactory)	Effects from foreign trans- lation	Cost of under- utilization currency charged by the manu- factory and opportunity cost of distribution	Recon- ciliation items of the discon- tinued operation	Group information (Discontinued operation PWK)
Revenue	0			0	0
Cost of goods sold	-743	-68	-5,521	-5,589	-6,332
Gross profit	743	68	5,521	5,589	6,332
Administrative expenses	1,448			2	1,450
Other operating income Other operating expenses	0 0	0 1,207		0 1,207	0 1,207
Earnings before interest and taxes (EBIT)	-705	-1,139	5,521	4,380	3,676
Interest income	0			0	0
Interest and similar expenses	-258			0	-258
Financial result	-258	0	0	0	-258
Earnings before income taxes (EBT)
from the discontinued operation	-962	-1,139	5,521	4,380	3,418
Income tax	-183			0	-183
Earnings for the period
from the discontinued operation	-1,145	-1,139	5,521	4,380	3,235
Earnings of shareholders of elumeo SE	-1,145	-1,139	5,521	4,380	3,235
Earnings before interest and taxes (EBIT)	-705	-1,139	5,521	4,380	3,676
Depreciation and amortization on property,
plant and equipment and intangible assets	507			0	507
EBITDA	-198	-1,139	5,521	4,380	4,183

Berlin, 11 November 2019

elumeo SE

The Executive Managing Directors

Bernd Fischer Thomas Jarmuske Boris Kirn

Imprint

Publisher

elumeo SE Erkelenzdamm 59/61 10999 Berlin Germany

Investor Relations

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

Photos

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 Investor Relations / Publications /

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. These 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.