home24 SE

Earnings Release • Apr 25, 2019

home24 FY 2018 results

25 April 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

1

Management summary

Assortment extension, esp. in high impulse and purchase frequency areas Re-acceleration of revenue growth to 19% ¹ and EUR 92m in Q4 2018, despite partial shift

Total annual revenues for 2018 of EUR 313m corresponds to 18%¹ revenue growth

Significant outperformance of the online furniture market in our geographies, which grew by c.10%, and the total market that showed no growth²

LatAm first region that is profitable for the full year 2018 with EUR 0.3m on adjusted EBITDA basis, on the back of significant growth

Group adjusted EBITDA 2018 at -13%, reflecting missing operating leverage caused by the weak demand in EU April to October, Q4 revenue shift and key investments ramp-up

Concrete milestones defined for 2019 to reach goal of break even on adjusted EBITDA

Continuous increase in order intake growth rates since Q2

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

• Continued marketing investments enabled home24 to partially offset the weather-related weakness in demand to gain market share and continue to grow
• Around the Black Friday shopping event at the end of November 2018, home24 reported the most successful week in the company's history

CC

home24 grew by 18% YoY in 2018 with revenues of c. EUR 313m

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

¹Sources: Euromonitor International, BVDM

• The offline market declined in some countries. The total furniture market in the home24 geographies showed virtually no growth in 2018¹
• home24 significantly outperformed the online furniture market, which grew by c. 10% in the home24 geographies in 2018¹
• In the absence of negative demand side effects, LatAm continued its strong growth trajectory
• In Q4 2018, home24 increased its revenue by 19% to EUR 92m YoY, with partial shift of revenue recognition

5

Adjusted EBITDA for 2018 amounted to c. EUR -40m or -13%

Adj. EBITDA in EURm and in % of Revenue

• Adjusted EBITDA for 2018 reflects missing operating leverage caused by the weak demand in EU April to October and Q4 revenue shift, plus key investments ramp-up
• LatAm first region to be profitable on adjusted EBITDA basis, at EUR 0.3m for 2018
• Transition to new ERP system in EU caused temporarily higher handling and personnel costs thus also impacting earnings
• Key investments for 2019 already with cost impact in Q3/4 2018, e.g. EU warehouse and mega outlets

Profit and loss statement- Group

In EURm and in % of Revenue

	ACT Q4-18	ACT Q4-17	ACT Q3-18	ACT Q3-17	ACT FY-18	ACT FY-17
Revenue	91.6	79.7	69.9	63.5	312.7	275.7
growth Revenue CC	19%	23%	16%	18%	18%	12%
1 of sales Cost	51 8	42 7	39 5	35 3	176 2	152 6
profit Gross	1 39.8	37.0	30.4	28.2	136.5	123.0
profit margin Gross	43%	46%	44%	44%	44%	45%
Fulfillment expenses	18 5	13 6	14 3	10 2	61 5	47 0
Fulfillment expenses ratio	20%	17%	20%	16%	20%	17%
Profit contribution	21.3	23.4	16.1	18.0	75.0	76.0
Profit contribution margin	23%	29%	23%	28%	24%	28%
Marketing expenses	20 1	15 5	16 5	11 4	66 1	48 7
Marketing expenses ratio	22%	19%	24%	18%	21%	18%
G&A 2	14 4	12 0	12 6	12 4	48 9	49 1
2 G&A ratio	16%	15%	18%	20%	16%	18%
Adjusted EBITDA	-13.2	-4.0	-12.9	-5.9	-40.0	-21.8
Adjusted margin EBITDA	-14%	-5%	-19%	-9%	-13%	-8%

Liquidity position remains strong despite higher investments

Cash flow FY in EURm

Gross profit margin

In EURm and in % of Revenue

Profit contribution margin

In EURm and in % of Revenue

Adjusted EBITDA reconciliation

In EURm

Group	Q4 2018	Q3 2018	FY 2018
External revenue	91.6	69.9	312.7
Adjusted EBITDA	-13.2	-12.9	-40.0
Share based compensation expenses	2.2	2.1	10.2
related the Costs IPO to	0.1	0.1	1.5
1 EBITDA	-15.4	-15.2	-51.7
of and right-of-use Amortization & Depreciation PP&E assets 1	4.9	3.6	17.9
EBIT	-20.3	-18.8	-69.6
Europe	Q4 2018	Q3 2018	FY 2018
External revenue	67.7	53.4	239.5
Adjusted EBITDA	-13.3	-12.7	-40.3
Share based compensation expenses	1.7	1.9	8.8
related the Costs IPO to	0.1	0.1	1.5
EBITDA	-15.1	-14.7	-50.6
& of PP&E and right-of-use Amortization Depreciation assets	4.2	3.1	15.4
EBIT	-19.2	-17.8	-66.0
LatAm	Q4 2018	Q3 2018	FY 2018
External revenue	23.9	16.5	73.1
Adjusted EBITDA	0.1	-0.3	0.3
Share based compensation expenses	0.5	0.3	1.3
related the Costs IPO to	0.0	0.0	0.0
EBITDA	-0.4	-0.5	-1.1
of and right-of-use Amortization & Depreciation PP&E assets	0.7	0.6	2.5
EBIT	-1.1	-1.1	-3.6

Financial calendar – upcoming events

Date	Event
May 28th	Publication of quarterly financial report (Q1)
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.