home24 SE

Quarterly Report • May 11, 2021

AT A GLANCE

Q1 2021

KEY FIGURES

Non-financial KPIs	Unit	Q1 2021	Q1 2020	Change
Gross order value	in EURm	259.9	158.2	64%
Gross order value growth at constant currency	in %	72%	12%	60pp
Number of orders	in k	983	623	58%
Average order value	in EUR	264	254	4%
Number of active customers (as of March 31)	in k	2,397	1,549	55%
Employees (as of March 31)	Number	1,697	1,540	10%

Financial KPIs	Unit	Q1 2021	Q1 2020	Change
Revenue	in EURm	159.0	102.6	55%
Revenue growth at constant currency	in %	64%	14%	50pp
Gross profit margin	in %	45%	46%	–1pp
Profit contribution margin	in %	29%	28%	1pp
Adjusted EBITDA margin	in %	0%	–3%	3pp
Earnings per share	in EUR	–0.25	–0.40	–38%
Cash flow from operating activities	in EURm	–9.7	2.4	>–100%
thereof change in net working capital	in EURm	–6.7	6.9	>–100%
Cash flow from investing activities	in EURm	–2.8	–2.4	17%
Cash flow from financing activities	in EURm	119.7	–2.1	>–100%
Cash and cash equivalents (as of March 31)	in EURm	205.4	43.1	>100%

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Selected Financial Information ����������������������������������������������������������������������������������������09
Financial Calendar 2021 and Imprint������������������������������������������������������������������������������13

REPORT ON ECONOMIC POSITION

IPO OF SUBSIDIARY MOBLY S.A.

In early February 2021, the shares of the subsidiary Mobly S.A. were admitted to trading on the Novo Mercado segment of the B3 stock exchange (previously the São Paulo stock exchange), Brazil. Since February 5, 2021, they have been traded under the ticker symbol MBLY3 and the ISIN BRMBLYACNOR5 ("Mobly IPO").

A total of 37,037,038 newly issued ordinary shares of Mobly S.A. and 1,610,306 ordinary shares held by VRB GmbH & Co. B-197 KG were placed within the scope of Mobly's IPO. In addition, VRB GmbH & Co. B-197 KG granted a greenshoe option for up to 5,797,102 ordinary shares out of its shareholding. The stabilization agent was permitted to exercise this option in the period up to March 6, 2021. The option was exercised early and in full on February 22, 2021. A total of 44,444,446 ordinary shares of Mobly S.A. were thus placed through Mobly's IPO. After the IPO, the Group's shareholding in Mobly S.A. amounts to 51%.

Mobly S.A.'s gross proceeds from its IPO amounted to BRL 777.8m (the equivalent of EUR 121.0m). VRB GmbH & Co. B-197 KG realized gross proceeds in the amount of BRL 33.8m (the equivalent of EUR 5.3m) through its sale of Mobly S.A. shares. In addition, VRB GmbH & Co. B-197 KG realized gross proceeds of BRL 121.7m (the equivalent of EUR 18.2m) due to the full exercise of the greenshoe option.

FINANCIAL PERFORMANCE OF THE GROUP

Simplified Income Statement

In EURm	Q1 2021	Q1	2020 Change	Change in %
Revenue	159.0	102.6	56.4	55%
Cost of sales	–86.6	–55.4	–31.2	56%
Gross profit	72.4	47.2	25.2	53%
Gross profit margin	45%	46%	–1pp
Selling and distribution costs	–67.0	–46.7	–20.3	43%
Impairment losses on financial assets	–0.9	–0.5	–0.4	80%
Administrative expenses	–13.2	–9.8	–3.4	35%
Other operating income	1.3	0.5	0.8	>100%
Other operating expenses	–0.6	–0.6	0.0	0%
Operating result (EBIT)	–8.0	–9.9	1.9	–19%
Amortization of intangible assets and depreciation of property and equipment and right-of-use assets	5.9	5.7	0.2	4%
EBITDA	–2.1	–4.2	2.1	–50%
Share-based payment	2.6	0.7	1.9	>100%
Costs related to the Mobly IPO	0.1	0.0	0.1	n/a
Adjusted EBITDA	0.6	–3.5	4.1	>–100%
Adjusted EBITDA margin	0%	–3%	3pp

Management believes that home24 continued to perform very well in the first quarter of 2021. The high level of consumer demand for online home&living products in the first three months of financial year 2021 has contributed to the further increase in the pace of growth. The EUR 159.0m revenue volume achieved represents 55% growth y-o-y. This is the strongest quarterly growth rate y-o-y since the second quarter of 2015. At constant currency, revenue even grew 64% y-o-y.

The gross order value increased by 64% (at constant currency: +72%). This was significantly stronger than the picture for revenue and reflected a high level of open orders. Due to the current restrictions associated with the COVID-19 pandemic, the trend can only be expected to change following a normalization of supply chains and the level of customer demand, which are currently resulting in longer average delivery times. The increase in the gross order value has been mainly driven by the higher number of active customers and orders placed, whereas the average order value has risen only slightly. As of March 31, 2021, home24 had a total of 2.4m active customers, compared to 1.5m as of March 31, 2020. The number of orders placed during the first three months of 2021 increased by 58% to 1.0m compared to the prior-year period. The average order value expanded by 4% to EUR 264 over the same period.

Revenue less cost of sales results in gross profit. In the first three months of 2021, the Group posted a gross profit of EUR 72.4m, up +53% from EUR 47.2m in the same period of 2020. The gross profit margin decreased by 1 percentage point to 45% compared to March 31, 2020. This slight decrease has mainly resulted due to temporarily increased import costs, which were not fully passed on to end customers, as well as the pandemic-related decline in the level of efficiency of the offline utilization of returns.

In EURm	Q1 2021	Q1	2020 Change	Change in %
Fulfillment expenses	–25.6	–17.8	–7.8	44%
Marketing expenses	–30.1	–19.0	–11.1	58%
Other selling and distribution costs	–11.3	–9.9	–1.4	14%
Total selling and distribution costs	–67.0	–46.7	–20.3	43%
as % of revenue
Fulfillment expenses ratio	–16%	–17%	1pp
Marketing expenses ratio	–19%	–19%	0pp

In the first three months of 2021, selling and distribution costs amounted to EUR 67.0m, up 43% compared to the prior-year period. The fulfillment expenses ratio improved by 1 percentage point, which was partly due to a further increase in the efficiency of the use of warehouse personnel. The marketing expenses ratio remained stable y-o-y, despite the significant improvement in the level of marketing efficiency by comparison with the gross order value. Accordingly, in the first quarter of 2021, which, like the third quarter, is usually an investment quarter, a higher proportion of marketing expenses is attributable to open orders than in the same period in the previous year.

In the first three months of 2021, administrative expenses increased by what is a clearly disproportionately low 35% y-o-y to EUR 13.2m. This mainly reflects the efficient scalability of business processes. The rise in administrative expenses is mainly due to employee share-based payment expenses rather than from increased administrative expenses relating to operating activities.

In the first three months of 2021, the adjusted EBITDA margin improved by 3 percentage points y-o-y to +0%. The adjusted EBITDA increased accordingly from a negative EUR 3.5m to a positive EUR 0.6m. As is usual for the Group, particularly in the current year due to the high level of open orders, the first quarter, like the third quarter, is generally characterized by lower profitability than the full year due to seasonally higher marketing costs as an investment quarter. The adjusted amounts include employee share-based payment expenses as well as expenses arising within the scope of the IPO of the Brazilian subsidiary Mobly S.A.

FINANCIAL PERFORMANCE OF THE SEGMENTS

Financial Performance Europe

In EURm	Q1 2021	Q1	2020 Change	Change in %
Revenue	133.2	79.1	54.1	68%
Cost of sales	–71.6	–41.4	–30.2	73%
Gross profit	61.6	37.7	23.9	63%
Gross profit margin	46%	48%	–1pp
Fulfillment expenses	–21.9	–14.2	–7.7	54%
Fulfillment expenses ratio	–16%	–18%	2pp
Profit contribution	38.8	23.1	15.7	68%
Profit contribution margin	29%	29%	0pp
Marketing expenses	–26.9	–16.9	–10.0	59%
Marketing expenses ratio	–20%	–21%	1pp
Adjusted EBITDA	0.5	–3.3	3.8	>–100%
Adjusted EBITDA margin	0%	–4%	4pp

Financial Performance LatAm

In EURm	Q1 2021	Q1	2020 Change	Change in %
Revenue	25.8	23.5	2.3	10%
Cost of sales	–15.0	–14.0	–1.0	7%
Gross profit	10.8	9.5	1.3	14%
Gross profit margin	42%	40%	1pp
Fulfillment expenses	–3.7	–3.6	–0.1	3%
Fulfillment expenses ratio	–14%	–15%	1pp
Profit contribution	4.5	3.1	1.4	45%
Profit contribution margin	17%	13%	4pp
Marketing expenses	–3.2	–2.1	–1.1	52%
Marketing expenses ratio	–12%	–9%	–3pp
Adjusted EBITDA	0.1	–0.2	0.3	>–100%
Adjusted EBITDA margin	0%	–1%	1pp

Non-financial key performance indicators Europe

	Q1 2021	Q1	2020 Change	Change in %
Gross order value	223.4	124.9	98.5	79%
Gross order value growth	79%	8%	71pp
Number of orders	655	363	292	80%
Average order value	341	344	–3	–1%
Number of active customers (as of March 31)	1,370	857	514	60%
Employees (as of March 31)	943	854	89	10%

Non-financial key performance indicators LatAm

	Q1 2021	Q1	2020 Change	Change in %
Gross order value	36.5	33.3	3.2	10%
Gross order value growth at constant currency	72%	27%	45pp
Number of orders	328	260	68	26%
Average order value	111	128	–17	–13%
Number of active customers (as of March 31)	1,027	692	335	48%
Employees (as of March 31)	754	686	68	10%

In the first three months of 2021, revenue in the Europe segment amounted to EUR 133.2m, up +68% y-o-y, representing 84% of Group revenue. In the first three months of 2021, revenue in the LatAm segment came to EUR 25.8m, up +10% y-o-y, thus contributing 16% to Group revenue. At constant currency, revenue in the LatAm segment grew much stronger, y-o-y, specifically by 47%. Growth in the Europe and the LatAm segment has been driven mainly by the growing number of orders (+80% and +26%, respectively) and the higher number of active customers (+60% and +48%, respectively), while currency effects had a negative impact of –13% on the average order value in the LatAm segment.

The Europe segment generated positive adjusted EBITDA of EUR 0.5m after EUR –3.3m in the prior-year period. The adjusted EBITDA margin came in at +0% compared to –4% in the previous year. The LatAm segment also broke even in terms of adjusted EBITDA at EUR 0.1m after EUR –0.2m in the prior-year period. The adjusted EBITDA margin came in at +0% compared to –1% in the previous year.

CASH FLOWS

In EURm	Q1 2021	Q1	2020 Change
Cash flow from operating activities	–9.7	2.4	–12.1
thereof from change in net working capital	–6.7	6.9	–13.6
Cash flow from investing activities	–2.8	–2.4	–0.4
Cash flow from financing activities	119.7	–2.1	121.8
Net change in cash and cash equivalents	107.2	–2.1	109.3
Cash and cash equivalents at the beginning of the period	103.1	45.6	57.5
Effect of exchange rate changes on cash and cash equivalents	–4.9	–0.4	–4.5
Cash and cash equivalents at the end of the period	205.4	43.1	162.3

In the first three months of 2021, the Group generated a negative cash flow from operating activities of EUR 9.7m (previous year: positive cash flow of EUR 2.4m). The main driver for the decrease is the change in net working capital, caused among other things by the stop of early payment of receivables from installment purchases in the LatAm segment as a result of the improved liquidity following the successful IPO in February 2021.

Cash outflows from investing activities largely related to investments in internally generated software as well as property and equipment.

Cash flow from financing activities has mainly resulted from proceeds within the scope of the IPO of the Brazilian subsidiary Mobly S.A. (capital increase and sale of non-controlling interests), less the related transaction costs and taxes paid (EUR 133.8m net) as well as subsequent repayments of bank loans (EUR 11.0m). Further outflows have resulted due to factors including the redemption of lease liabilities (EUR 2.9m).

In total, the Group's cash and cash equivalents rose by EUR 102.3m in the first three months of 2021 and totaled EUR 205.4m as of the reporting date.

CASH FLOWS OF THE SEGMENTS

Cash Flows Europe

In EURm	Q1 2021	Q1	2020 Change
Cash flow from operating activities	10.3	6.1	4.2
thereof from change in net working capital	10.6	9.4	1.2
Cash flow from investing activities	13.8	–7.8	21.6
Cash flow from financing activities	–2.4	–1.6	–0.8
Net change in cash and cash equivalents	21.7	–3.3	25.0
Cash and cash equivalents at the beginning of the period	99.4	44.3	55.1
Cash and cash equivalents at the end of the period	121.1	41.0	80.1

Of the EUR 205.4m in cash and cash equivalents reported in the Group as of March 31, 2021, EUR 121.1m relates to the Europe segment and EUR 84.3m to the LatAm segment.

After deduction of the transaction costs and taxes resulting from the IPO of the Brazilian subsidiary Mobly S.A. and the related sale of shares in Mobly S.A., the Europe segment has received a total of EUR 18.7m, mainly through the repayment of loans as well as interest payables.

In the LatAm segment, the net proceeds from the placement of the newly issued ordinary shares of Mobly S.A. as part of the IPO amount of EUR 115.2m – i.e. less transaction costs paid – were used, in particular, for the stop of early payment of receivables from installment purchases and for the repayment of bank loans.

Cash Flows LatAm

In EURm	Q1 2021	Q1	2020 Change
Cash flow from operating activities	–20.0	–3.7	–16.3
thereof from change in net working capital	–17.2	–2.4	–14.8
Cash flow from investing activities	–0.8	–0.6	–0.2
Cash flow from financing activities	106.3	5.5	100.8
Net change in cash and cash equivalents	85.5	1.2	84.3
Cash and cash equivalents at the beginning of the period	3.7	1.3	2.4
Effect of exchange rate changes on cash and cash equivalents	–4.9	–0.4	–4.5
Cash and cash equivalents at the end of the period	84.3	2.1	82.2

FINANCIAL POSITION

	March 31, 2021	Decem ber 31,	2020 Change	Change in %
Non-current assets	107.7	109.5	–1.8	–2%
Current assets	304.5	178.4	126.1	71%
Total assets	412.2	287.9	124.3	43%

	March 31, 2021	Decem ber 31,	2020 Change	Change in %
Equity	235.1	114.3	120.8	>100%
Non-current liabilities	41.6	46.9	–5.3	–11%
Current liabilities	135.5	126.7	8.8	7%
Total equity and liabilities	412.2	287.9	124.3	43%

The assets and equity and liabilities of the Group changed compared to December 31, 2020, primarily because of the following balance sheet items:

The decrease in non-current assets is mainly due to scheduled depreciation of property and equipment and capitalized right-of-use assets and amortization of intangible assets.

Current assets have increased mainly due to higher cash and cash equivalents (EUR +102.3m) as well as trade receivables (EUR +13.5m) and inventories (EUR +8.3m). The increase in trade receivables is particularly attributable to the LatAm segment. Here, the Group has made limited use of agreements covering upfront payment related to installment purchase receivables due to the additional liquidity resulting from the IPO of its subsidiary Mobly S.A. Changes in cash and cash equivalents are discussed in the "Cash Flows" section.

Equity increased by EUR 120.8m. This increase is due in particular to the shares newly issued within the scope of the IPO of the subsidiary Mobly S.A. (EUR +121.0m) as well as the sale of shares already held in Mobly S.A. (EUR +23.5m). Overall transaction costs of EUR 7.0m and income taxes of EUR 3.9m have been incurred for the issue of new shares and the sale of shares already held. These have been directly recognized in equity.

Non-current liabilities fell mainly as a result of the early repayment of bank loans in the LatAm segment.

Current liabilities rose primarily due to trade payables and similar liabilities (EUR +10.4m) as well as contract liabilities (EUR +8.1m), which increased within the scope of ongoing business activities. This contrasts with a decrease in borrowings (EUR –5.1m) as a result of the early repayment of bank loans in the LatAm segment.

Overall, total assets increased by EUR 124.3m from EUR 287.9m to EUR 412.2m.

OVERALL ASSESSMENT

The Group completed a very successful first quarter of 2021 and further accelerated its revenue growth. The significant improvement in profitability by comparison with the same quarter in the previous year also reflects the profitable scalability of the business model, despite the noticeable operating challenges associated with the COVID-19 pandemic. Moreover, the cash and cash equivalents available to the Group increased to more than EUR 200m thanks to the successful IPO of the Brazilian subsidiary Mobly S.A. home24 thus has sufficient financial leeway in order to continue to expand its market position on both continents.

FUTURE PERFORMANCE AND OUTLOOK

The continuing positive market environment in the online home&living segment is reflected in the current order intake. At least in the Europe segment, April 2021 was the first month which saw y-o-y revenue grow at last year's record pace supported by COVID-19. Although the gross order value in the previous year had already increased by +74%, the value in April 2021 increased again by over 30%. home24 thus sees this as a positive signal that further growth beyond the level achieved in the previous year is possible in the months to come, despite the high level of imponderability of consumer behavior.

Supported by what has been the expected strong start to financial year 2021, home24 is confirming its revenue growth forecast in constant currency terms of between +20% and +40%. The Group is also continuing to strive for an adjusted EBITDA margin of between 0% and +2% for financial year 2021.

Berlin, 10 May 2021

Marc Appelhoff Brigitte Wittekind Philipp Steinhäuser

08

SELECTED FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT

In EURm	Q1 2021	Q1 2020
Revenue	159.0	102.6
Cost of sales	–86.6	–55.4
Gross profit	72.4	47.2
Selling and distribution costs	–67.0	–46.7
Impairment losses on financial assets	–0.9	–0.5
Administrative expenses	–13.2	–9.8
Other operating income	1.3	0.5
Other operating expenses	–0.6	–0.6
Operating result (EBIT)	–8.0	–9.9
Finance income	1.9	0.2
Finance costs	–1.8	–1.2
Loss before taxes	–7.9	–10.9
Income taxes	–0.1	0.0
Loss for the period	–8.0	–10.9
Loss attributable to:
Owners of the parent company	–7.2	–10.5
Non-controlling interests	–0.8	–0.4

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In EURm	March 31, 2021	December 31, 2020
Non-current assets
Property and equipment	17.0	17.5
Intangible assets	36.5	37.0
Right-of-use assets	40.2	43.7
Other financial assets	13.3	10.7
Other non-financial assets	0.7	0.6
Total non-current assets	107.7	109.5
Current assets
Inventories	49.6	41.3
Advance payments on inventories	2.2	1.9
Trade receivables	29.8	16.3
Other financial assets	4.8	3.6
Other non-financial assets	12.7	12.2
Cash and cash equivalents	205.4	103.1
Total current assets	304.5	178.4
Total assets	412.2	287.9

Equity Subscribed capital Treasury shares Capital reserves	29.1 0.0 122.8 54.4 –21.5	29.1 0.0 122.8
Other reserves		–21.9
Accumulated losses		–15.2
Equity attributable to the owners of the parent company	184.8	114.8
Non-controlling interests	50.3	–0.5
Total equity	235.1	114.3
Non-current liabilities
Borrowings	0.0	5.7
Lease liabilities	35.5	36.5
Other financial liabilities	1.1	1.1
Other non-financial liabilities	0.5	0.5
Provisions	3.4	2.1
Deferred tax liabilities	1.1	1.0
Total non-current liabilities	41.6	46.9
Current liabilities
Borrowings	0.7	5.9
Lease liabilities	11.2	11.5
Trade payables and similar liabilities	74.4	64.0
Contract liabilities	35.1	27.0
Income tax liabilities	0.2	0.2
Other financial liabilities	4.6	5.7
Other non-financial liabilities	8.7	10.8
Provisions	0.6	1.6
Total current liabilities	135.5	126.7
Total liabilities	177.1	173.6
Total equity and liabilities	412.2	287.9

CONSOLIDATED STATEMENT OF CASH FLOWS

In EURm	Q1 2021	Q1 2020
Cash flow from operating activities
Loss before taxes	–7.9	–11.0
Depreciation of property and equipment	1.0	1.0
Amortization of intangible assets	2.1	2.0
Depreciation of right-of-use assets	2.8	2.7
Expenses from share-based payments	2.6	0.7
Disbursements for share-based payments	–2.1	0.0
Other non-cash income and expenses	–0.4	0.1
Change in provisions	0.3	0.0
Change in net working capital
Change in inventories and advanced payments on inventories	–9.2	3.4
Change in trade receivables and other assets	–15.8	–0.8
Change in trade payables and similar liabilities	9.9	1.9
Change in contract liabilities	8.4	2.4
Change in other assets/liabilities	–1.4	0.0
Cash flow from operating activities	–9.7	2.4
Cash flow from investing activities
Payments to acquire property and equipment	–1.3	–0.6
Payments to acquire intangible assets	–1.8	–1.8
Proceeds from the sale of property and equipment	0.6	0.0
Change in restricted cash and long-term security deposits/securities	–0.3	0.0
Cash flow from investing activities	–2.8	–2.4
Cash flow from financing activities
Transaction costs paid in connection with capital increases by shareholders	–0.1	0.0
Cash paid to owners and non-controlling interests	–0.9	0.0
Proceeds from capital increases at subsidiaries	121.0	0.0
Proceeds from the sale of non-controlling interests	23.7	0.0
Transaction costs paid for capital increases at subsidiaries and the sale of non-controlling interests	–6.8	0.0
Taxes paid on the sale of non-controlling interests	–3.9	0.0
Proceeds from borrowings	0.5	5.7
Repayment of borrowings	–11.0	–5.8
Redemption of lease liabilities	–2.9	–2.0
Proceeds from subleases	0.1	0.0
Cash flow from financing activities	119.7	–2.1
Net change in cash and cash equivalents	107.2	–2.1
Cash and cash equivalents at the beginning of the period	103.1	45.6
Effect of exchange rate changes on cash and cash equivalents	–4.9	–0.4
Cash and cash equivalents at the end of the period	205.4	43.1

FINANCIAL CALENDAR 2021

MAY 17

Equity Forum – German Spring Conference, Virtual Conference

MAY 18

Berenberg – Conference USA 2021, Virtual Conference

JUNE 8

Montega – Virtual Reality Investors Day

JUNE 17

Annual General Meeting

AUGUST 10

Publication half-yearly financial report

NOVEMBER 10

Publication quarterly financial report (call-date Q3)

IMPRINT

CONTACT

home24 SE Greifswalder Straße 212 – 213 10405 Berlin, Germany

INVESTOR RELATIONS

Philipp Steinhäuser/CFO Email: ir@home24.de

MEDIA

Anne Gaida Senior Communications Manager Email: media@home24.de

CONSULTING, CONCEPT & DESIGN

Silvester Group, Hamburg www.silvestergroup.com

Legal Disclaimer

This document contains forward-looking statements. These statements reflect the current view, expectations and assumptions of the management of home24 SE and are based upon information currently available to the management of home24 SE. 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 and developments to differ materially from the expectations and assumptions described in this document. These factors include, in particular, changes to the overall economic framework conditions and the general competitive environment. Besides, developments on the financial markets and changes of currency exchange rates as well as changes in national and international legislation, in particular tax legislation, and other factors have influence on the future results and developments of the Company. Neither home24 SE nor any of its affiliates assume any kind of responsibility, liability or obligations for the accuracy of the forward-looking statements and their underlying assumptions in this document. Neither home24 SE nor any of its affiliates do assume any obligation to update the statements contained in this document.

This quarterly statement has been translated into English. It is available for download in both languages at www.home24.com. If there are variances, the German version has priority over the English translation.

home24 SE

Greifswalder Straße 212 – 213 10405 Berlin, Germany Email: ir@home24.de