Westwing Group SE

Investor Presentation • May 7, 2024

Q1 2024 results

Munich, 7 May 2024

Copyright © 2023 Westwing. All rights reserved.

Disclaimer | Forward looking statements

Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made and are subject to significant risks and uncertainties. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed on this call due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous material/conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.

Agenda 01 Business update

• Financial update
• Investment highlights
• Q&A
• Appendix

1. Business update

4

State of Westwing

We delivered strong Q1 2024 financial results.

• Revenue growth of 6% year-over-year (yoy) in a declining market.
• Number of active customers(1) growing for the first time yoy since the end of the pandemic.
• Contribution margin of 32% (+4pp yoy) and marketing ratio of -13% (-4pp yoy).
• Adjusted EBITDA of EUR 6 million at 6% margin (+1pp yoy).
• Free cash flow of EUR 4 million (Q1) and net cash of EUR 82 million (end of Q1).

We are confirming our FY 2024 guidance.

• Revenue of EUR 415 million to EUR 445 million (-3% to +4% yoy growth).
• Adjusted EBITDA of EUR 14 million to EUR 24 million (+3% to +5% adjusted EBITDA margin).

We are continuing our transformation to build a scalable platform.

• Westwing Collection share increased to 51% of Group GMV in Q1 2024, a new all-time high.
• We strengthened our premium brand positioning further, e.g. with an installation at Milan Design Week.

Note: (1) Active customer defined as a customer who has made a valid order within the last 12 months at the end of the reporting period. Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance adjusted EBITDA, the Company refers to the corresponding definitions in its Q1 2024 report. All figures unaudited.

5

We clearly outperformed the market in our largest geography

Year-over-year sales growth

For the first time since the end of the pandemic, the number of active customers increased year-over-year

Active customers

Recap: We are in the middle of a 3-step plan to unlock Westwing's value potential

	Turnaround & strategy update	Building a scalable platform	Scaling with operating leverage
	2022-2023	2024-2025 1	2025-202x
Profitability	Organisational rightsizing	Complexity reduction	Cost discipline
levers	3 Westwing Collection share increase
	OneWestwing commercial model	Share gains in existing markets
Topline levers	Stronger premium brand positioning	Country expansion
Adj. EBITDA margin	-1% to +4%	+3% to +5%(1)	Path to 10%+
Topline

(1) Financial guidance for 2024; 2025 guidance tbd. Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance adjusted EBITDA, the Company refers to the corresponding definitions in its Q1 2024 report. 8 3 Westwing Collection share increase

Westwing Collection share continued to increase

Westwing Collection share [as % of Group GMV] 21% 25% 31% 37% 46% 51% 79% 75% 69% 63% 54% 49% Q1'19 Q1'20 Q1'21 Q1'22 Q1'23 Q1'24 100%

Westwing Collection 3rd party suppliers

During Milan Design Week, we presented design highlights of the Westwing Collection, e.g. sofa 'WOLKE', with an immersive exhibition…

4 Stronger premium brand positioning

… and we showcased a

collaboration with the

prestigious fabric house

Dedar Milano

2. Financial update

Revenue growth of 6% year-over-year in the first quarter of 2024 Group revenue [in EUR m]

• Despite overall market decline, Westwing achieved topline growth in the first quarter of the year and gained market share.
• Both GMV and revenue showed a growth of 6% yearover-year in Q1 2024.

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance adjusted EBITDA, the Company refers to the corresponding definitions in its Q1 2024 report. All figures unaudited.

Segment revenue [in EUR m] Positive topline development for both DACH and International segment

• Both segments with topline growth in the first quarter of 2024.
• Westwing's DACH segment grew by 8% year-over-year, clearly outperforming the market.
• International segment grew by 3% year-over-year driven by good performance of international countries, limited by Spain and Italy.

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance adjusted 14 EBITDA, the Company refers to the corresponding definitions in its Q1 2024 report. All figures unaudited.

Strong improvements across most of the P&L lines

DACH and International segment both with positive adjusted EBITDA margin in Q1 2024 Segment adjusted EBITDA [as % of revenue]

• Both DACH and International segment with clearly positive adjusted EBITDA margin in Q1 2024.
• DACH segment adjusted EBITDA profitability impacted by investment into brand awareness.
• International segment driven by strong increase in Westwing Collection share.

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance adjusted EBITDA, the Company refers to the corresponding definitions in its Q1 2024 report. All figures unaudited.

Net working capital position remains strong at EUR -18m and reduction of excess inventory is mostly completed

Higher CAPEX in Q1 2024 likely to be reversed in Q2

• Higher CAPEX in Q1 2024 due to change of lease contract of existing logistics centre equipment; effect of EUR 3m expected to be reversed in Q2 2024.

Free cash flow below previous year's level due to likely impermanent effect in investing activities

especially driven by change of lease contract of existing logistics centre and equipment.

Driven by Operating cash flow EUR 1.5m higher VAT, EUR 1.7m Marketing prepayments

Investing cash flow EUR 3.1m WH assets, EUR 1.2m rent deposits, EUR 0.4m leasehold improvements PL

• CAPEX: EUR 3m
• Rent deposit: EUR 1m
• Both effects likely to be reversed in Q2 2024.

We maintained our strong balance sheet with EUR 82m net cash at the end of March 2024

• Very strong net cash balance sheet position maintained with zero debt at the end of March 2024.
• Strong net cash position provides us with strategic optionality and the confidence to focus on our long-term strategy in a still challenging market with high uncertainty.

FY 2024 guidance confirmed

3. Investment highlights

22

Investment highlights

Unique, relevant customer value proposition

• Unique assortment of gorgeous, own design Westwing Collection and the best 3rd party design brands.
• Best in class inspirational storytelling with distinct visuals and tone of voice.
• Premium services such as interior design service and branded delivery fleet.
• The one-stop destination for premium Home & Living.

Huge market potential

• Addressing sizeable premium segment of EUR 130b total Home & Living market(1) in existing 11 Westwing geographies. Future country expansion with additional potential.
• Massive online penetration potential in a mostly offline market.

Strong brand with high loyalty and growth potential

• Desirable brand among design lovers, with >13m followers on social media.
• Clear premium positioning, only getting stronger.
• Huge upside potential from brand marketing invest and offline presence.
• Westwing Collection product brand with attributes of superior design, quality and sustainability.

High margins and operating leverage in scaling

• High margins as a result of pricing power based on a strong brand, as well as the unique Westwing Collection with further GMV share potential.
• Platform & commercial model allowing for scaling with operating leverage in existing countries and beyond.

• Strong net cash position and no debt.
• Strong net working capital.
• Low CAPEX.

Clear path towards long-term adjusted EBITDA margin of 10-15% with strong cash conversion.

Note: All figures unaudited. (1) Euromonitor International as of May 30, 2022, scope: Home & Living is defined as "Homewares and Home Furnishings". 23

5. Appendix

25

Continuously expanding share of wallet with customers

Active customers and average GMV per active customer [in k, in EUR]

KPI overview

Group KPIs	Unit	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023	Q1 2024
Westwing Collection share	in % of GMV	25%	22%	26%	28%	31%	32%	38%	37%	37%	38%	44%	44%	46%	46%	48%	47%	51%
Active customers	in k	986	1,178	1,284	1,529	1,720	1,730	1,750	1,705	1,593	1,486	1,422	1,320	1,262	1,252	1,262	1,275	1,282
Number of orders	in k	675	1,051	874	1,474	1,268	1,022	819	1,262	872	685	620	951	694	614	605	939	676
Average basket size	in EUR	127	122	129	119	129	135	144	131	147	159	164	149	169	178	177	157	185
Average orders LTM per active customer	in #	2.5	2.6	2.7	2.7	2.7	2.7	2.6	2.6	2.5	2.4	2.4	2.4	2.3	2.3	2.3	2.2	2.2
Average GMV LTM per active customer	in EUR	324	325	330	328	337	341	340	343	345	349	355	364	373	376	377	377	381
GMV	in EUR m	85	128	113	175	164	139	118	166	128	109	102	142	118	109	107	147	125
Mobile visit share	in %	76%	79%	80%	79%	79%	80%	80%	80%	80%	80%	80%	80%	79%	78%	79%	82%	81%

KPI definitions

Westwing Collection share	GMV share of Westwing Collection (formerly "Own & Private Label"): GMV of Westwing Collection business as % of Group GMV in the same reporting period.
Active customers	A customer who has made a valid order within the last 12 months at the end of the reporting period.
Number of orders	Total number of valid orders (excluding failed and cancelled orders) of a reporting period.
Average basket size	Weighted average value of an order: GMV divided by total number of orders of the same reporting period.
Average orders LTM per active customer	Total number of orders of the last 12 months divided by active customers at the end of the reporting period.

Average GMV LTM per active customer GMV of the last 12 months divided by active customers.

GMV Gross Merchandise Volume: Value of all valid customer orders placed of a reporting period (i.e. excluding cancelation and VAT, but including returns). Mobile visit share Share of daily unique sessions per platform via mobile devices (tablets and smartphones) as % of all daily unique sessions per platform of a reporting period.

Consolidated income statement

EUR m, in % of revenue	FY 2022	FY 2023	Q1 2023	Q1 2024
Revenue	430.8	428.6	102.9	108.6
Cost of sales	-228.1	-215.7	-51.9	-52.9
Gross profit	202.7	212.9	51.0	55.8
Fulfilment expenses	-94.2	-90.3	-22.3	-22.0
Marketing expenses	-40.6	-45.6	-9.2	-13.9
General and administrative expenses	-92.9	-85.2	-18.7	-21.2
Other operating expenses	-5.2	-6.2	-0.9	-1.7
Other operating income	2.6	5.9	1.5	1.5
Operating result	-27.4	-8.4	1.4	-1.5
Financial result	-2.9	-0.7	-0.5	-0.2
Result before income tax	-30.3	-9.1	0.9	-1.7
Income tax expense	-2.1	-3.3	-0.0	-0.2
Result for the period	-32.4	-12.4	0.9	-1.9
Reconciliation to adjusted EBITDA
Operating result (EBIT)	-27.4	-8.4	1.4	-1.5
Share-based compensation expenses	-0.6	2.3	-1.0	-0.7
Restructuring severances 2022	5.7	-		-
Complexity reduction	-	4.1	-	2.7
Depreciation and amortisation	18.1	19.8	4.7	5.8
Adjusted EBITDA	-4.2	17.8	5.1	6.3
Adjusted EBITDA margin (%)	-1.0%	4.1%	4.9%	5.8%

Adjusted income statement

EUR m, in % of revenue	FY 2022	FY 2023	Q1 2023	Q1 2024
Revenue	430.8	428.6	102.9	108.6
Revenue growth year-over-year	-17.5%	-0.5%	-7.4%	5.6%
Cost of sales	-228.1	-215.7	-51.9	-52.9
Gross profit	202.7	212.9	51.0	55.8
Gross margin	47.1%	49.7%	49.5%	51.4%
Fulfilment expenses	-93.6	-90.3	-22.3	-21.3
Contribution profit	109.1	122.7	28.7	34.5
Contribution margin	25.3%	28.6%	27.9%	31.8%
Marketing expenses	-39.2	-45.3	-9.2	-13.8
General and administrative expenses	-89.7	-80.3	-19.7	-19.8
Other operating expenses	-5.2	-4.9	-0.9	-1.7
Other operating income	2.6	5.9	1.5	1.5
Depreciation and amortisation	18.1	19.8	4.7	5.6
Adjusted EBITDA	-4.2	17.8	5.1	6.3
Adjusted EBITDA margin (in %)	-1.0%	4.1%	4.9%	5.8%

Segment reporting

DACH in EUR m	FY 2022	FY 2023	Q1 2023	Q1 2024
Revenue	242.4	236.5	55.8	60.1
Year-over-year growth (in %)	-18.3%	-2.4%	-8.0%	7.7%
Adjusted EBITDA	7.9	16.1	5.0	3.5
Adjusted EBITDA margin (in %)	3.3%	6.8%	9.0%	5.8%

International in EUR m	FY 2022	FY 2023	Q1 2023	Q1 2024
Revenue	188.4	192.1	47.1	48.5
Year-over-year growth (in %)	-16.5%	2.0%	-6.7%	3.2%
Adjusted EBITDA	-11.2	2.1	0.1	3.0
Adjusted EBITDA margin (in %)	-5.9%	1.1%	0.3%	6.1%

In Q1 2024, we adjusted costs of EUR -2.7m related to the complexity reduction, of which only EUR -0.6m had cash impact

Issued share capital

Share information as at 31 March 2024

Type of shares	Ordinary bearer shares with no-par value (Stückaktien)
Stock exchange	Frankfurt Stock Exchange
Market segment	Regulated market (prime standard)
Number of shares issued	20,903,968
Issued share capital	EUR 20,903,968
Treasury shares	873,153

Stock option programs as at 31 March 2024

Program	# of options outstanding	Weighted average exercise price (in EUR)
LTIP 2023(1)	478,330	11.07
ECP 2022	329,840	1.00
VSOPs(2)	683,125	2.89(2)
LTIP 2019	1,828,800	19.30
LTIP 2016	96,450	0.01
Other	749,375	11.31
Total	4,165,919	12.33

(1) Assumes 100% performance achievement, final number can only be determined after 3-year performance period; exercisable earliest 4 years after grant date

(2) VSOPs are virtual, cash-settled option programs with an average cap of EUR 24.30

Note: All figures unaudited. Stock option programs are categorised as granted

Investor Relations Contact

Teresa Fischer Perez-Lozao Director Corporate Finance

ir@westwing.de

Events

14 May 2024 German Spring Conference

19 June 2024 Annual General Meeting

8 August 2024 Publication of half-year results