home24 SE

Investor Presentation • May 28, 2019

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home24 Q1 2019 Trading Update

28 May 2019

Our mission: to be the online destination for Home & Living

• Huge and uniquely attractive Home & Living market opportunity of EUR 117 billion
• Markets characterized by low online penetration of c. 6%¹ with huge catch-up potential
• Leading pure-play Home & Living online platform in Continental Europe and Brazil
• Unique model, combining third-party brands with attractive private labels drive high margins
• Scalable end-to-end automated and vertically integrated value chain
• Pioneering technologies improve shopping experience and empower data-driven decisions
• Strong financial profile, combining strong growth and path to profitability
• Multiple drivers for long-term growth & differentiation with significant margin upside

¹Source: Euromonitor International for home24 geographies

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Today's agenda

Management summary

Assortment extension, esp. in high impulse and purchase frequency areas Strong increase in revenue to EUR 93m in Q1 2019, representing +12% growth at constant currency, even on back of very strong Q1 2018

Revenue growth and profitability as expected at H2 2018 level, as a result of the ramp-up costs associated to investments into future profitability gains

Brazil continues to be profitable in Q1 2019 based on adjusted EBITDA margin

All key-milestones planned for Q1 achieved on path to break even

Outlook for 2019 confirmed

Long term margin guidance confirmed

Business Update

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Recap: Selected key milestones on path to profitability

Q1 2019 Q2 2019 ▪ Mobile push

• Warehouse EU
• Brazil offline B2B roll-out
• Mega outlet West
• In-house programmatic customer acquisition
• Old ERP switch off
• 3 rd party assortment extension & private label add. styles push
• Mega outlet North
• Personalized customer acquisition & conversion

Q3 2019

• Warehouse Brazil
• Additional brands
• EU warehouse automation phase 2
• Regional returns clearance EU
• Customer service automation phase 2

2019 Forecast confirmed:

Revenue growth rate at or above FY18 level

Break even on adjusted EBITDA basis by the end of 2019

Successful go live of new European warehouse facility

• First inbound goods in new European warehouse in Halle on 04.02.2019. First outbound goods delivered on 25.02.2019
• Capacity to grow further from 30,000 sqm (March) up to 60,000 sqm (July)
• Ramp up phase with relevant impact on Q1 profitability
• Higher efficiency of WH Halle compared to existing locations due to various process improvements e.g. ABCclassification, tugger trains etc.
• Additional capacities to push share of WH assortment and therefore shorter delivery times of top sellers

Successful opening of mega outlet west (Cologne)

• Opening of largest mega outlet in Cologne (Germany) on 22.02.2019
• Ramp up phase with relevant impact on Q1 profitability, partly also Q2
• Full positive margin effects visible starting Q3 once:
  • All outlet locations up and efficiently running (Q2)
  • Decentralized return process to be implemented during Q3
  • More efficient sell-down of unwanted inventory
  • Additional exposure for

Programmatic customer acquisition & retention

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improve marketing cost ratios

Brazil offline B2B roll-out tapping into vast offline potential

• Invest case: Tap into huge low/middle income market without internet purchasing behavior through omni channel model
• Sub-brand: BigLar for price differentiation
• Showroom type concept with own operated stores and partner stores
• Partner advantages:
  • One supplier, no minimum order quantities
  • No need to hold stock
  • Access to import goods
  • Faster deliveries through home24 fulfillment
• All orders entering home24 web shop fulfillment process incl. last mile delivery

Q1 Financials

Significant increase in order intake despite strong YoY baseline

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

• Increase in order intake in line with expectations – especially considering Q1 18 being the strongest revenue growth comparable that saw higher online market growth
• Both segments fueling GOV growth, as the European growth rate also exceeds +11% YoY
• Basket size expected to stabilize per segment at current lower level, assuming no further category shift
• Brazilian currency broadly stabilizing, reducing the gap on constant currency reporting

All figures preliminary and unaudited

In Q1 2019 home24 grew by 12% YoY in CC with revenues of c. EUR 93m

Revenue in EURm and Growth y-o-y in %

▪ Order intake of +15% translates into IFRS revenue growth of +12% YoY in CC, again considering Q1 18 being the strongest comparable (+30% YoY in CC)

• EU order backlog remains high, broadly at YE level implying a change in revenue realization pattern. Therefore IFRS remain below GOV growth rates in EU as in Q4 18. The underlying factors are expected to reverse (e.g. increased delivery times during WH ramp up), in coming quarters
• LatAm growth rates remain strong at a realistic level for

Adjusted EBITDA for Q1 2019 amount to c. EUR -15m or -16% of the Revenue

• Downside effects weighing on Q1 to diminish as laid out over the course of the year e.g.:
• WH ramp up at increased efficiency
• Outlet ramp up at increased efficiency
• Biglar ramp up at increased efficiency
• ATL Marketing efficiency
• LatAm remains profitable in Q1 despite investments into further growth

Investments on path to profitability with visible effects on capital expenditures and operational cash flow

Cash flow Q1 2019 in EURm

Outlook and Q&A

• Milestone achievement and absence of adverse 2018 one-time effects will drive revenue growth and margin improvements, esp. in H2 2019
• On track regarding financials and milestones for Q2 2019
• 2019 Forecast confirmed:
  • Revenue growth rate at or above FY18 level in constant currency with the LatAm segment to contribute disproportional to the growth
  • Adj. EBITDA margin to improve to a range between –4% and –9% for 2019 as a whole
  • Break even on adjusted EBITDA basis at the end of 2019
• Mid term guidance confirmed:
  • Full year break even on adj. EBITDA basis achievable in 2020
• Long term 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 the low teens (in % of revenue)

Profit and loss statement- Group

In EURm and in % of Revenue

	Q1 19	Q1 18	Q4 18	Q4 17	YTD 19	YTD 18
Revenue	93.2	84.5	91.6	79.7	93.2	84.5
growth CC Revenue	12%	30%	19%	23%	12%	30%
1 of sales Cost	52 6	46 6	51 8	42 7	52 6	46 6
profit Gross	1 40.6	37.9	39.8	37.0	40.6	37.9
profit Gross margin	44%	45%	43%	46%	44%	45%
expenses1 Fulfillment	19 3	14 7	18 5	13 6	19 3	14 7
Fulfillment expenses ratio	21%	17%	20%	17%	21%	17%
Profit contribution	21.2	23.2	21.3	23.4	21.2	23.2
Profit contribution margin	23%	27%	23%	29%	23%	27%
Marketing expenses	21 2	16 6	20 1	15 5	21 2	16 6
Marketing expenses ratio	23%	20%	22%	19%	23%	20%
G&A 2	14 9	11 7	14 4	12 0	14 9	11 7
2 G&A ratio	16%	14%	16%	15%	16%	14%
Adjusted EBITDA	-14.9	-5.1	-13.2	-4.0	-14.9	-5.1
Adjusted margin EBITDA	-16%	-6%	-14%	-5%	-16%	-6%

Gross profit margin

In EURm and in % of Revenue

Profit contribution margin

In EURm and in % of Revenue

All figures preliminary and unaudited

Adjusted EBITDA reconciliation

In EURm

Group	Q1 2019	Q4 2018	YTD 2019
External revenue	93.2	91.6	93.2
Adjusted EBITDA	-14.9	-13.2	-14.9
Share based compensation expenses	1.1	2.2	1.1
related the Costs IPO to	0.0	0.1	0.0
1 EBITDA	-16.0	-15.4	-16.0
& of PP&E and right-of-use Amortization Depreciation assets 1	7.3	4.9	7.3
EBIT	-23.3	-20.3	-23.3
Europe	Q1 2019	Q4 2018	YTD 2019
External revenue	71.0	67.7	71.0
Adjusted EBITDA	-14.9	-13.3	-14.9
Share based compensation expenses	1.0	1.7	1.0
related the Costs IPO to	0.0	0.1	0.0
EBITDA	-15.8	-15.1	-15.8
Amortization & Depreciation of PP&E and right-of-use assets	6.5	4.2	6.5
EBIT	-22.3	-19.2	-22.3
LatAm	Q1 2019	Q4 2018	YTD 2019
External revenue	22.2	23.9	22.2
Adjusted EBITDA	0.0	0.1	0.0
Share based compensation expenses	0.2	0.5	0.2
related the Costs IPO to	0.0	0.0	0.0
EBITDA	-0.2	-0.4	-0.2
& of PP&E and right-of-use Amortization Depreciation assets	0.9	0.7	0.9
EBIT	-1.1	-1.1	-1.1

Financial calendar – upcoming events

Date	Event
June 19th	Annual General Meeting
September 3rd	Publication of half-yearly financial report
November 26th	Publication of quarterly financial report (Q3)

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]	Defined as earnings before interest, taxes, depreciation and amortization, adjusted for share based payment expenses for employees, media services provided Company 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 obligationsto 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.