GERRY WEBER International AG — Call Transcript 2021

May 27, 2021

/ RESULTS Q1 2021

Analyst and Investor Conference Call

Florian Frank (CFO)

May 27, 2021

/ DISCLAIMER

This presentation does not constitute an offer of securities or otherwise constitute an invitation or inducement to any person to subscribe for or otherwise acquire or dispose of securities of GERRY WEBER International AG (the "Company") or any of its affiliates. This presentation contains "forward-looking statements" with respect to the Company's financial condition, results of operations and business plans and objectives. These forwardlooking statements reflect the current views of the Company's management with respect to future events. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "will", "anticipates", "aims", "could", "may", "should", "expects", "believes", "intends", "plans" or "targets". By their nature, forwardlooking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Such factors may have a materially adverse effect on the costs and revenue development of the Company. For example, economic downturns in the Company's markets and changes in currency exchange rates may have negative effects on the Company's business development and financial condition. The factors that could affect the Company's future financial results are discussed more fully in the Company's most recent annual and interim reports, which can be found on its investor relations website at ir.gerryweber.com. All written or oral forward-looking statements attributable to the Company or any of its affiliates or any persons acting on its behalf or contained in or made in connection with this presentation are expressly qualified in their entirety by factors of the kind referred to above. No assurances can be given that the forward-looking statements in this presentation will be realized. Except as otherwise stated herein and as may be required to comply with applicable law and regulations, the Company does not intend to update these forward-looking statements and does not undertake any obligation to do so. This presentation has been prepared by the Company's management solely for information purposes. This presentation is in summary form and does not purport to be a full or complete description of the Company and its subsidiaries. No representation or warranty, express or implied, is made as to the fairness, accuracy, adequacy, completeness or correctness of such information, nor as to the achievement or reasonableness of any projections, targets, estimates, or forecasts. Nothing in this presentation should be relied upon as a promise or representation as to the future.

/ Business repositioning on track despite headwind due to pandemic EXECUTIVE SUMMARY Q1 2021

Ecommerce growth accelerated during lockdown and reached EUR 9.1 mn in Q1 2021 Enhancing product performance is major priority and basis for successful repositioning of GWI

Retail-business ready to deliver

New collections well perceived by wholesale customers

Net sales development heavily impacted by ongoing lockdown; net sales dropped to EUR 46.4 mn

Normalized EBITDA at -3.0 mn slightly better compared to last year due to strict cost management

Solid cash position of EUR 79.0 mn at end of March; liquidity secured through exchange offer and state bridging aid Pre-contract for sale of the Ravenna Park logistics center signed, allowing us to still use the logistics center after 2021

Outlook for FY 2021 confirmed

BUSINESS UPDATE

/ BUSINESS REPOSITIONING STRATEGY

How to know if our strategy is working to increase the desirability of our brands

/ Product performance is key for our success OUR MAJOR PRODUCT INITIATIVES

1	Clear collection handwriting for every brand
2	Enhancing product assortment with lovely details and offering it in a nice color range
3	Strengthen competence in GERRY WEBER Edition: knitwear, pants and outerwear
4	Expand variances of qualities and shapes in all collections
5	Enriching collections with modern pieces and special capsules to create excitement ("creatively surprise")
6	Increase share of sustainable materials in all collections

GERRY WEBER

ICH LEBE MEINEN STIL.

/ EVOLUTION OF OUR COLLECTIONS OVER TIME

Fall 2016 Fall 2020 Summer 2021

/ Q1 2021 RESULTS

8

/ EVOLUTION OF TAIFUN COLLECTIONS OVER TIME

SAMOON Because [in happy

/ EVOLUTION OF SAMOON COLLECTIONS OVER TIME

16

/ ECOMMERCE MANAGED TO CONVERT "STATIONARY" INTO "ONLINE" CLIENTS FOLLOWING DEC. LOCKDOWN

Our	ECOMMERCE major	MANAGED TO CONVERT "STATIONARY" INTO "ONLINE" CLIENTS FOLLOWING DEC. LOCKDOWN initiatives to achieve top line growth of 20% going forward
1		Increase online marketing budget for all brands to broaden customer base
2		Significant increase of inventory in the ecommerce distribution center
3		Using predictive technology (CRM Database) to increase the conversion rate
4		Offer more personalized content with a higher conversion probability
5		Connecting at least three more marketplaces in 2021 to use their traffic strength in foreign markets
6		Transformation from the current "Rest of Europe" shop to a "Rest of World" shop and offer GERRY WEBER, SAMOON and TAIFUN in over 200 destinations worldwide
		Strengthen online brand presence for TAIFUN and SAMOON
7
8		Special online promotions and discounts

/ RETAIL REOPENING UPDATE GERMANY

Germany has been in lockdown II since December 16, 2020. There have been opening steps since March 8, 2021

We have been offering (where permitted) Click & Meet, in addition to the existing services (personal shopping (video / telephone), click & reserve (window shopping). Click & Meet in particular was very well received in March 2021 April 2021 was marked by increasing incidences, causing increased restrictions again. Many stores had to close again or Click &

Meet was only possible with a negative test result. Frequencies and sales in our stores fell sharply

May 2021 shows a clear improvement so far. Many federal states and municipalities are easing the restrictions

We expect 90% of our stores to open with at least Click & Meet by the end of May and expect our stores to be 100% open with less restrictions from July onwards

/ OUR INITIATIVES TO GROW RETAIL BUSINESS GOING FORWARD

/
GOING FORWARD	OUR INITIATIVES TO GROW RETAIL BUSINESS
Store Experience	Increase emotionalization of brand presentation, new visual merchandise concept, storytelling
Marketing	Targeted monthly marketing and event activities to increase stationary shopping attractiveness
CRM & Cross-Channel	Expand cross-channel processes: In store Ordering, Click & Reserve (already installed in Germany, nd 2 half of 2021 Click & Collect, return anywhere)
Merchandise / Inventories	Focus on full-price phases, concentration on end-of-season sale and discount phases to increase profitable share of sales Expansion of factory outlet business by opening additional locations, with the aim of quickly reducing the high proportion of old goods and generating cash
Cost optimization	Continuous optimization of our store portfolio including renegotiation of rents

FINANCIALS Q1 2021

/ FINANCIAL HIGHLIGHTS – Q1 2021

FINANCIAL HIGHLIGHTS – Q1 2021
Sales Split	Pro Forma Adj. EBITDA1
Retail: EUR 12.5 mn Wholesale: EUR 24.7 mn Ecom: EUR 9.1 mn	EUR 2.9 mn
Free Cash Flow	Cash & Cash Equivalents2
EUR -4.9 mn	EUR 79.0 mn

/ COVID19-LOCKDOWNS LEAD TO DROP IN SALES IN Q1 2021 • Heavy dropdown in January and February 2021 due to full lockdowns in all our markets • Q1 Retail -66% LfL mainly driven by COVID-19 (Effect EUR -17 Mio) • Strong E-com grow (54%), reflecting positive strategic changes taken by the company over past 18 month

¹LfL: Like for Like sales compared to 2020 in % (without sales of closed stores)

/ SALES DEVELOPMENT IN ECOMMERCE 2021…

… growing by 54% compared to Q1 2020

• Strong growth in Ecommerce since 2nd lockdown in Dec 2020
• Goal is to grow Ecommerce sales by 20% or more yearly in the medium term
• Increase of marketing budget, staff capacity and merchandise stock
• Strengthening of online brand presence of TAIFUN and SAMOON
• Improve CRM system to enhance conversion rate

/ SALES DEVELOPMENT RETAIL

Net sales development per sqm dropped significantly in Q1 2021 due to lockdown

• 2021 was severely affected by lockdowns in Januar, February and March (in 2020 lockdown started in March)
• Target is to improve sales per square meter and like-for-like revenue growth to 2019 level by the end of 2021
• New management team in place
• Strong focus on KPI to drive revenue growth
• Focus on outlets to drive retail growth

/ PRE-ORDER SYSTEM IN WHOLESALE LEADS TO VISIBILITY

				84% of total wholesale sales for FY 2021 are already secured in May 2021
Order	Deadline for Preorder	Delivered and invoiced to our	In % of total wholesale 2021	Comments
		wholesale customers	(cum)	Preorder leads to high visibility in our wholesale business:
Spring Summer O2	Aug 18, 2020	Jan 2021	27%	 27% of wholesale sales for FY 2021 secured in Aug 2020
Summer O3	Oct 29, 2020	Apr - May 2021	42%	 42% of wholesale sales for FY 2021 secured in Oct 2020
				 71% of wholesale sales for FY 2021 secured in Feb 2021
Autumn Winter O4	Feb 23, 2021	Jul - Sep 2021	71%	 84% of wholesale sales for FY 2021 secured in May 2021
Winter O5	May 11, 2021	Oct - Nov 2021	84%
		Dec 2021	86%e	Reorders of in store collections and depot business lead to additional sales

/ PRO FORMA ADJUSTED EBITDA Q1 2021 BRIDGE

• Reduced rent costs due to rent negotiation and portfolio optimization

/ SOLID CASH POSITION EXCEEDING FORECAST

Free Cash Flow improved despite COVID-19

• resilience of a newly restructured business
• Increase in Working Capital mainly financed by state support (ÜH III) EUR 12 mn
• Investments kept low due to uncertainty of COVID-19

		Q1 2021	Q1 2020
	CF from Operating activities	-4,1	-16,4
	CF from Investing activities	-0,8	-1,1
79.0	Free Cash Flow	-4,9	-17,6
	CF from Financing activities	-1,5	-9,7
	Exchange rate differences	0,1	-0,2
	Cash & Cash Equivalents at the beginning	85,3	126,9
Cash 31/03/2021	Cash & Cash Equivalents at the end1	79,0	99,6
	CF from financing activities  Proceeds from additional loan EUR 5.0 mn (exchange offer)  Repayment of liabilities relating to the rights of use (IFRS 16) EUR 6.5 mn
	1 excl. RCF m EUR 17.5

CF from financing activities

/ CAPITAL STRUCTURE IN DETAIL

CAPITAL STRUCTURE IN DETAIL
Stable Net Debt emphasizes long-term viability
Net Debt in EUR mn	March	Secured by escrow accouts/		Founded by liquidity of the company		Senior Secured
	2021	liquidation of Ravenna Park	Total	Thereof non contingent	Thereof contingent	Unsecured Subordinated
Cash1	-79,0	-22,2	-56,8	-56,8	-	Provisions
Revolving Credit Facility2	17,5	-	17,5	17,5	-
Principal Term Loans3	34,3	-	34,3	33,7	0,6
Net Senior Debt	-27,2	-22,2	-5,0	-5,6	0,6
Straight Bonds	33,9	-	33,9	25,1	8,8
Convertible Bonds	1,8	-	1,8	1,2	0,7
Insolvency Cash Quota4	8,1	8,1	-	-	-
GWR Quota4	7,4	5,8	1,5	1,5	-
Excess Liquidity Quota4	9,5	-	9,5	-	9,5
Net Unsecured Debt	33,5	-8,3	41,8	22,3	19,5
Additional quota	29,5	29,5	-	-	-	22.8
Provisions and Adjustments	5,3	5,2	0,1	0,1	-	17.5
Net Debt	68,3	26,45	41,9	22,4	19,5		7.4
expected cash from Ravenna Park		-23,3					7.4	1.2 1.2
Allocation of EUSt Risk to PLUTA		-4,6				maturity
		-1,6

As of 31.03.2021

¹ Thereof EUR 22.20 mn deposited in insolvency plan escrow account

² 4% p.a. commitment fee. 8% p.a. cash interest on drawn amounts ³ 12% p.a. of which up to 8% p.a. may be capitalized (PIK), in Mar 2021 given as PV (incl. Upfront Fee and PIK)

⁴ All cash quota given as PV, discounted at a rate of 4.5% annually compounding on an Act/365 Basis

⁵ Fully funded by liquidation of Ravenna Park and Allocation of EUSt Risk to PLUTA

/ Q1 2021 RESULTS

29

OUTLOOK FY 2021

/ ONGOING MEASURES IN PLACE TO MITIGATE COVID IMPACT

…. and to secure short-term and long-term viability
Operational goal: secure business operations	Financial goal: securing liquidity
Successful implementation of COVID-19 health and safety measures	Successful renegotiation of debt structure and deferral of 35% of outstanding claims up to December 2023
for customers, employees, and business partners	Ongoing refinancing negotiations with shareholders, banks and factoring providers
	Utilization of state-supported short-time labor programs in Germany and European markets, including headquarters
Opening of own Corona test center on premises in Halle as of April	New credit facility ("exchange offer") of EUR 5 mn in Feb and state support ("Überbrückungshilfe III") of EUR 12mn in March 2021
	Ongoing negotiations with landlords to waive and save rental costs
	Subleasing of retail space to partners
Introduction of a permanent mobile working concept at our headquarters

/ OUTLOOK FY 2021 CONFIRMED

Strict execution of strategic roadmap 2023 despite Covid-19
	FY 2021 Outlook
Net sales	Between EUR 260 mn and EUR 280 mn
Normalized EBITDA1	Negative low double-digit million amount
	FY 2023 and beyond Outlook
Financial situation	Successful refinancing
	Initiate dividend payout / buybacks2
1 Excl. effects resulting from the amended lease accounting 2 Subject to supervisory board approval	pursuant to IFRS 16

/ Q1 2021 RESULTS

32

/ FINANCIAL CALENDAR / CONTACT DETAILS

/
	Upcoming Events
Aug 12, 2021	Publication H1 interim report 2021
Aug 19, 2021	Annual General Meeting
	GERRY WEBER International AG Investor Relations Dr. Andrea Rolvering E-Mail andrea.rolvering@gerryweber.com Tel. +49 157 57103411