GERRY WEBER International AG — Call Transcript 2021

May 4, 2021

/ FY 2020 RESULTS

Analyst and Investor Conference Call

Alexander Gedat (CEO)

Angelika Schindler-Obenhaus (COO)

Florian Frank (CFO)

May 4, 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 forward-looking 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, forward-looking 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.

/ EXECUTIVE SUMMARY

Business repositioning on track but headwind due to pandemic

Net sales at EUR 287.2 mn, normalized EBITDA reaches EUR -40.8 mn → outlook for 2020 achieved

Solid cash position of EUR 85.3 mn at end of 2020; liquidity secured with exchange offer and state bridging aid III in 2021

Retail-business ready to deliver

Ecommerce improved significantly yoy (share of total sales 10% in 2020) and continues to grow in 2021

New collections well perceived by wholesale customers

Company`s management team complete with Angelika Schindler-Obenhaus becoming CEO shortly

Pre-contract for sale of the Ravenna Park logistics center signed, allowing us to still use the logistics center after 2021

With the ongoing coronavirus pandemic, continued outlook uncertainty

Business repositioning on track but headwind due to pandemic

/ GERRY WEBER INTERNATIONAL

Strong brand name with 3 diversified brands

CUSTOMER	50+ years Best Ager		45 + years Modern women	Self-confident plus size women
FOCUS	Inspiration in fashion & lifestyle		Smart casual look	Modern plus size fashion
POSITIONING	Category leader Modern classic mainstream		Relevant Modern Casual	Category leader Modern Mainstream
FASHION STYLE	Uncomplicated fashion for real women		Modern women's fashion	Plus size collection
STANDS FOR	Femininity, self-confidence, inspiration, desirability		Dynamics, passion, courage, independence,	Self-confidence, happiness, femininity, coolness
PURPOSE	WE ARE GERRY		WE LOVE TO MOVE	BECAUSE I AM HAPPY

/ EVOLUTION OF OUR COLLECTIONS OVER TIME

/ STRATEGIC TARGET MAP GERRY WEBER (2021 - 2023)

Brand and communication

	"GERRY WEBER is the leading womenswear lifestyle brand in the Modern Classic mainstream market"
Brand & Communication		Brand presentation to become more emotional, inspiring and diverse
	Increase of brand desirability	Using "I am Gerry" / "We are Gerry" slogan in our communication to attract new target customers from the baby boomer generation
		Further increase of brand recognition and brand awareness (91% as of December 2020)
	Consistent brand management	Turn GERRY WEBER in a brand that modern women identify with, due to the values and attitudes the brand represents

/ STRATEGIC TARGET MAP GERRY WEBER (2021 - 2023)

Product

	"GERRY WEBER is the leading womenswear lifestyle brand in the Modern Classic mainstream market"
		Increase quality, style, price structure, variety to be among the TOP 5 in the Edition product categories
	Increase product competence	Differentiation between GERRY WEBER Collection as a total look and GERRY WEBER Edition as a competence product
	Quality	Quality must be brought more clearly into focus
Product		Optimize fit
		Edition is back - focus on product performance
	Supply chain optimization	• Increase full package service (FPS) • Introduce special collections within procurement • Adjust payment terms • Timely ship to market strategy • Risk assessment of country • Further reduce lead times distribution after each order • Digitalize supply chain

/ STRATEGIC TARGET MAP GERRY WEBER (2021 - 2023)

Distribution retail, ecommerce, wholesale

	"GERRY WEBER is the leading womenswear lifestyle brand in the Modern Classic mainstream market"
Distribution Retail	Profitable growth	• Improve merchandise management • Definition and tracking of relevant KPIs for steering the business • Leverage on factory outlets as future growth driver
	Own retail as role model	Role model with regard to brand experience and product competence
	Growth	Expansion business on own e-shop and platforms both nationally and internationally
Distribution Ecommerce		Improve merchandise availability
	Expansion CRM	Better use/evaluation of existing data
Distribution Wholesale	GERRY WEBER - a must have brand for our wholesale partners	• Separate sales force for Gerry Weber • Edition is back - focus on product • Improve performance with existing performance wholesale customers • Gain lighthouse wholesale customers • Introduction of digital showroom

/ STRATEGIC TARGET MAP TAIFUN (2021 - 2023)

Product

	"TAIFUN is the relevant brand in the modern casual mainstream market for every moment of the day of the modern active woman"
Product		Relaunch of the brand in all visuals and appearances
	Product competence in joy of life & femininity	Develop collections for both office and home office as well as statement pieces for special occasions
		Individual pieces, modern and always combinable with each other
		Supply chain optimization

/ STRATEGIC TARGET MAP TAIFUN (2021 - 2023)

Distribution ecommerce, wholesale

	"TAIFUN is the relevant brand in the modern casual mainstream market for every moment of the day of the modern active woman"
Distribution Ecommerce	Significant growth	• Introduce Taifun online shop • Push and professionalize platform business including improvement of merchandise availability
	Expansion CRM	Better use/evaluation of existing data
Increase brand relevance for our Distribution Wholesale wholesale customers		• Separate sales force for Taifun • Improve performance with existing wholesale customers • Gain lighthouse wholesale customers • Introduction of digital showroom

/ STRATEGIC TARGET MAP SAMOON (2021 - 2023)

Brand and communication

	"SAMOON is the leading Curvy Womenswear brand in the modern mainstream segment"
Brand &		Brand presentation to become more emotional and inspiring
	Increase of brand desirability	Using "Because I'm happy" slogan in our communication with our customers
		Strategic goal is to develop SAMOON to become the leading European curvy brand by 2025
Communication		Emphasis on joy of life, femininity and value
	Consistent brand management
		Clear and distinctive positioning of our collections on the market

/ STRATEGIC TARGET MAP SAMOON (2021 - 2023)

Product

	"SAMOON is the leading Curvy Womenswear brand in the modern mainstream segment"
Product	Product competence in joy of life &	Develop collections for a broad age-independent curvy target group
	femininity	Focus on specific requirements with regard to materials, fit and quality for this target group
		Push online affinity
	Optimize online capability of the collection	Introduce online only collections & capsules
		Supply chain optimization

/ STRATEGIC TARGET MAP SAMOON (2021 - 2023)

Distribution ecommerce, wholesale

	"SAMOON is the leading Curvy Womenswear brand in the modern mainstream segment"
Distribution Ecommerce	Strong ecommerce growth/high Gain attention and growth through online only collections & capsules ecommerce share Professionalize marketplace business
	Expansion CRM	Better use/evaluation of existing data
		Separate sales force for Samoon
		Improve performance with existing wholesale customers
Distribution Wholesale	Samoon - a must have brand for our wholesale partners	Gain lighthouse wholesale customers
		Introduction of digital showroom
		Check new wholesale partnerships

/ OUR ESG AGENDA

Sustainability is part of our identity and our corporate responsibility

ECOMMERCE UPDATE

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

8 major 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
7	Strengthen online brand presence for TAIFUN and SAMOON
8	Special online promotions and discounts

2020 FINANCIALS

/ 2020 FINANCIAL HIGHLIGHTS

In line with expectations

Total Sales	Sales Split	Pro Forma Adj. EBITDA
Outlook 2020:  EUR 260 – 280 mn	Retail: EUR 159.2 mn
EUR 278.2 mn	Wholesale: EUR 119.0 mn	EUR 7.8 mn1
Normalized EBITDA	Free Cash Flow	Cash & Cash Equivalents
Outlook 2020:  Negative mid-double-digit million amount EUR -40.8 mn	EUR 4.5 mn	EUR 85.3 mn

/ COVID19-LOCKDOWNS LEAD TO DROP IN SALES IN Q4

Sales 2020 in EUR mn (compared with 2019 in %)

/ SALES DEVELOPMENT IN ECOMMERCE 2020…

… growing by 12% compared to the 2019 calendar year

• Strong growth in Ecommerce especially since 2 nd 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 improve conversion rate

/ SALES DEVELOPMENT RETAIL

Net sales development per sqm dropped significantly in 2020 due to lockdown

• In 2019 net sales per square meter were on average EUR 2,237 vs 2020 average EUR 1,385 (-38%)
• 2020 was severely affected by lockdowns in March, April, May, November and December
• Sales quickly recovered once lockdowns were lifted, regionally varying restrictions ongoing up to complete store closures
• Target is to improve sales per square meter and like-for-like revenue growth to 2019 level and beyond

/ PRE-ORDER SYSTEM IN WHOLESALE LEADS TO VISIBILITY

71% of total wholesale sales for FY 2021 are already secured in April 2021

	Deadline for	Delivered and	In % of total	Comments
Order	Preorder	invoiced to our wholesale customers	wholesale 2021 (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
				 42% of wholesale sales for FY 2021 secured in Oct 2020
Summer O3	Oct 29, 2020	Apr - May 2021	42%	 71% of wholesale sales for FY 2021 secured in Feb 2021
Autumn Winter O4	Feb 23, 2021	Jul - Sep 2021	71%	
Winter O5	May 11, 2021	Oct - Nov 2021	84%e
Spring O1	Aug 17, 2021	Dec 2021	86%e	Reorders of in store collections and depot business lead to additional sales

/ NORMALIZATION OF…

… restructuring costs and covid related EBITDA effects¹ lead to positive EBITDA

In spite of losses in turnover initial EBITDA was stabilized around EUR -2.5 mn. Main drivers have been:

• Improved gross profit margin due to strategic shift in markdown-policy as well as positive currency effects and consolidation in our supplier portfolio
• Reduced personnel expenses due to streamlining of processes as well as restructuring procedures
• Reduced rent costs due to rent negotiation und portfolio optimization

/ SOLID CASH POSITION EXCEEDING FORECAST

Positive FCF of EUR 4.5 mn maintained in spite of COVID-19

• Positive Operating CF due to successful restructuring
• Investments kept low due to uncertainty of COVID-19

Cash Flow statement (EUR mn)
	2020	2019
CF from Operating activities	9.2	55.5
CF from Investing activities	-4.7	-7.7
Free Cash Flow	4.5	47.8
CF from Financing activities	-45.3	6.2
Exchange rate differences	-0.9	-1.7
Cash & Cash Equivalents at the beginning	126.9	74.6
at the end1 Cash & Cash Equivalents	85.3	126.9

CF from financing activities

• Insolvency Quota & ELQ EUR 18.7 mn
• Adaption of SSL / escrow accounts EUR 12.3 mn
• Repayment of liabilities relating to the rights of use (IFRS 16) EUR 32.3 mn
• Drawing RCF EUR 17.5 mn

/ CAPITAL STRUCTURE IN DETAIL

Stable Net Debt emphasizes long-term viability

		Secured by	Funded by liquidity of the company
Net Debt in EUR mn	2020	escrow accounts/ liquidation of Ravenna Park	Total	Thereof non contingent	Thereof contingent
Cash1	-85.3	-21.1	-64.1	-64.1	-
Revolving Credit Facility2	17.5	-	17.5	17.5	-
Principal Term Loans3	23.5	-	23.5	23.1	0.4
Net Senior Debt	-44.2	-21.1	-23.1	-23.5	0.4
Straight Bonds	38.8	-	38.8	30.1	8.7
Convertible Bonds	1.8	-	1.8	1.2	0.7
Insolvency Cash Quota4	8.0	8.0	-	-	-
GWR Quota4	7.3	5.8	1.5	1.5	-
Excess Liquidity Quota4	9.4	-	9.4	-	9.4
Net Unsecured Debt	21.2	-7.3	28.5	9.3	19.2
Additional quota	29.1	29.1	-	-	-
Provisions and Adjustments	5.3	5.2	0.1	0.1	-
Net Debt	55.6	27.0 5	28.6	9.5	19.2
Expected cash from Ravenna Park		-23.3
Allocation of EUSt Risk to PLUTA		-4.6
Net Debt corrected		-0.9

As of 31.12.2020

¹ Thereof EUR 21.10 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 Dec 2020 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

OUTLOOK

/ 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 for customers, employees, and business partners	Successful renegotiation of debt structure and deferral of 35% of outstanding claims up to December 2023
	Ongoing refinancing negotiations with shareholders, banks and factoring providers
Opening of own Corona test center on premises in Halle as of April 2021 Introduction of a permanent mobile working concept at our headquarters	Utilization of state-supported short-time labor programs in Germany and European markets, including headquarters
	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
	Ongoing general strict cost discipline

/ OUTLOOK FY 2021

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

/ Q&A

/ FINANCIAL CALENDAR / CONTACT DETAILS

Upcoming Events
May 27, 2021	Publication Q1 interim statement 2021
Aug 12, 2021	Publication H1 interim report 2021
GERRY WEBER International AG Investor Relations Dr. Andrea Rolvering E-Mail andrea.rolvering@gerryweber.com Tel. +49 157 57103411