Westwing Group SE — Interim / Quarterly Report 2021

May 12, 2021

Q1 2021 Results

Munich, May 12, 2021

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 forwardlooking statements discussed on this call due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfillment centers, inaccurate personnel and capacity forecasts for fulfillment centers, 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

Q1 2021 RESULTS	GROWTH	EUR 138m Revenue, very strong growth of 105% yoy
	PROFITABILITY	Very strong profitability of EUR 20m Adj EBITDA at 14.2% Adj EBITDA margin
	FREE CASH FLOW	EUR 14m of Free Cash Flow; LTM Free Cash Flow at EUR 60m and 12% LTM Free Cash Flow margin
CUSTOMERS		Number of active customers increased to 1.7m (+74% yoy); growth continues to be driven by high loyalty of existing customers as well as strong new customer acquisition
Q2 2021 UPDATE		Entering spring/summer seasonality with c. 15% GMV yoy growth, while comparing against very strong peak baseline of last year
FY 2021 Guidance		Guidance of EUR 510-550m Revenue (18-27% growth) and Adj EBITDA of EUR 42-55m (8-10% Adj EBITDA margin) confirmed

COVID-19 update: Serious situation in Europe; health & safety is our number one priority; pro-actively managing risks

Due to the serious COVID-19 situation in Europe, health & safety remain our number one priority...

Customer safety is of utmost importance to us. To live up to this priority, we operate with wideranging hygiene measures in our warehouses and, together with our freight carriers, in delivery

Warehouses and photo studios operate with highest hygiene standards, social distancing measures, and stringent testing routines

Majority of office teams are mostly working from home at excellent productivity levels. Increasing focus on team cohesion

…while pro-actively manage risks

We take comprehensive safety measures to minimize the risk of a temporary warehouse closure due to a wide-ranging COVID-19 outbreak, yet a risk remains

Stringent testing routines to identify COVID cases early on

We pro-actively check how and when we can support the vaccination campaign as a company

Q1 2021 with strong growth across all metrics

Customer update Q1 2021 – New customer acquisition doubled

Revenue growth accelerated to 105% in Q1 2021

Note: All figures unaudited.

[in % of revenue]	Q1 2020	Q1 2021	Delta
Gross margin	46.7%	50.6%	+3.9%pts	Mostly structural improvements, driven by Westwing Collection and margin gains; low inventory obsolescence costs
Fulfilment ratio	-22.4%	-19.4%	+3.0%pts	Efficiency improvements in fulfilment, scale effects in warehouses, lower return rate
Contribution margin	24.3%	31.2%	+7.0%pts
Marketing ratio	-9.5%	-7.4%	+2.1%pts	Scale effects in our Organic Marketing
G&A ratio1)	-20.1%	-11.8%	+8.2%pts	Operating leverage, and growth investments not yet ramped up
D&A ratio	3.5%	2.2%	-1.4%pts
Adj. EBITDA margin	-1.8%	14.2%	+15.9%pts

12 Note: 1) Including other income and expenses. All figures unaudited. Adj EBITDA is excluding (i) share-based compensation expenses, (ii) expenses for the restructuring of the Italian and French business.

Group highly profitable; DACH and International segments both performing well

Note: All figures unaudited. Adj EBITDA is excluding (i) share-based compensation expenses, (ii) expenses for the restructuring of the Italian and French business.

Net Working Capital negative at EUR -0.3m; CAPEX ratio very low at 1.6% due to scale effects

Free Cash Flow improved by EUR +20m yoy to EUR 14m for Q1 2021; Free Cash Flow margin LTM at 12%

Note: All figures unaudited. Free Cash Flow defined as the sum of Operating Cash Flow and Investing Cash Flow.

Strong Net Cash position of EUR 116m end of Q1 2021

Guidance FY 2021 Comments

EUR 510-550m Revenue (18-27% growth)

EUR 42-55m Adj EBITDA (8-10% margin)

• Based on strong Q1 and a good start into Q2, the guidance for FY 2021 is being confirmed
• Growth rates are expected to be volatile as we are now comparing against the strong baseline from last year
• We acknowledge uncertainty around the impact of reopening economy as the pandemic will start to wind down

Our absolute Daily average GMV follows historic seasonality patterns while we show lower growth rates vs. 2020 baseline

Further updates on our strategy today at our Virtual Capital Markets Day

Westwing Virtual Capital Markets Day, Today at 3:00pm (CEST)

Growing Active Customer base while expanding share of wallet

Loyalty-driven business model results in exceptional repeat order rates

Note: All figures unaudited. Repeat orders defined as total number of valid orders (excluding failed and cancelled orders) from customers, which have placed a valid order before at Westwing.

KPI overview

Group KPIs	Unit	Q1 2018	Q2 2018	Q3 2018	Q4 2018	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Collection share Westwing	of in % GMV	13%	15%	18%	18%	21%	22%	27%	25%	25%	22%	26%	28%	31%
Active customers	in k	881	907	921	934	927	909	926	949	986	1,178	1,284	1,529	1,720
Number of orders	k in	611	555	507	726	591	492	539	805	675	1,051	874	1,474	1,268
basket size Average	in EUR	119	120	124	122	129	132	132	121	127	122	129	119	129
orders Average LTM per active customer	in #	2.6	2.6	2.6	2.6	2.6	2.6	2.6	2.6	2.5	2.6	2.7	2.7	2.7
per active Average GMV LTM customer	in EUR	302	305	307	312	318	322	326	327	324	325	330	328	337
GMV	in EUR m	7 2	6 7	6 3	8 9	7 6	6 5	7 1	9 8	8 5	128	113	175	164
Mobile visit share	in %	72%	73%	74%	74%	75%	76%	77%	76%	76%	79%	80%	79%	79%

KPI definitions

Westwing Collection share	GMV share of Westwing Collection (formerly "Own & Private Label"): GMV of Westwing Collection business as % of GMV Group in the same reporting period
Active customers	A customer who has made a valid order within the last 12 months
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 of a reporting period
Average GMV LTM per active customer	GMV of the last 12 month 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 visits per platform via mobile devices (tablets and smartphones) as % of all daily unique visits per platform of a reporting period

Consolidated income statement

EUR m, in % of revenue, unaudited	FY 2019	FY 2020	Q1 2020	Q1 2021
Revenue	267	433	68	138
Cost of Sales	-148	-219	-36	-68
Gross profit	119	214	32	70
Fulfilment expenses	-63	-86	-15	-27
Marketing expenses	-23	-31	-6	-10
General and administrative expenses	-65	-65	-15	-19
Other operating expenses	-2	-4	-1	-0
Other operating income	1	3	1	0
Operating result	-33	31	-5	14
Financial result	-4	-4	-1	-1
Result before income tax	-37	28	-6	13
Income tax expense	-1	2	-0	-2
Result for the period	-38	30	-6	11
Reconciliation to Adj EBITDA
Operating result (EBIT)	-33	31	-5	14
Share-based compensation expenses	11	8	2	3
Restructuring France and Italy	2	-0	-0	-0
D&A	9	11	2	3
Adj. EBITDA	-10	50	-1	20
Adj EBITDA margin (%)	-3.8%	11.5%	-1.8%	14.2%

Note: All figures unaudited. Adj EBITDA is excluding (i) share-based compensation expenses, (ii) expenses for the restructuring of the Italian and French business. Previous-year figures for share-based compensation restated according to IAS 8.

Adjusted income statement

EUR m, in % of revenue, unaudited	FY 2019	FY 2020	Q1 2020	Q1 2021
Revenue	267	433	68	138
Revenue Growth YoY	5.3%	62.0%	10.0%	104.9%
Cost of Sales	-148	-219	-36	-68
Gross Profit	119	214	32	70
Gross Margin	44.6%	49.4%	46.7%	50.6%
Fulfillment expenses	-62	-86	-15	-27
Contribution profit	57	128	16	43
Contribution margin	21.4%	29.5%	24.3%	31.2%
Marketing expenses	-23	-31	-6	-10
General and administrative expenses	-52	-57	-13	-17
Other operating expenses	-2	-4	-1	-0
Other operating income	1	3	1	0
Depreciation and Amortization	9	11	2	3
Adj EBITDA	-10	50	-1	20
Adj EBITDA Margin	-3.8%	11.5%	-1.8%	14.2%

Segment reporting

DACH in EUR m, unaudited	FY 2019	FY 2020	Q1 2020	Q1 2021
Revenue	151	243	38	79
YOY Growth (in %)	14%	60%	12%	110%
Adj. EBITDA	0	41	1	16
Adj. EBITDA Margin (in %)	-0.3%	16.9%	2.4%	19.9%

International in EUR m, unaudited	FY 2019	FY 2020	Q1 2020	Q1 2021
Revenue	116	190	30	59
YOY Growth (in %)	-4%	64%	7%	98%
Adj. EBITDA	-9	9	-2	4
Adj. EBITDA Margin (in %)	-8.1%	4.8%	-6.7%	6.7%

Net Working Capital Bridge

Net Working Capital (NWC) breakdown as of March 31, 2021 (EUR m)

Issued share capital

Share Information as of March 31, 2021

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	538,250

Stock Option Programs as of March 31, 2021

Program	# of options outstanding	Weighted average exercise price (EUR)
VSOP 2019(1)	818,000	1.00(1)
LTIP 2019(2)	1,948,200	19.30(2)
LTIP 2016	150,600	0.01
Other	950,500	9.38
Total	3,867,300	12.24

Upcoming Events

Date	Event
May 12, 2021	Westwing Capital Markets Day
May 18, 2021	Berenberg: US Conference 2021
August 5, 2021	Annual General Meeting
August 12, 2021	Publication of Q2 2021 results
September 20, 2021	Berenberg: German Corporate Conference
September 20-24, 2021	Baader: Investment Conference Small Cap Day
November 11, 2021	Publication of Q3 2021 results