Q2 2021 Results

Munich, August 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.

Quote Place your statement here. Our mission To inspire and make every home a beautiful home.

AGENDA

Business Update
Financial Update
Summary & Q&A
Appendix

Q2 2021 RESULTS	GROWTH	EUR 132m Revenue, at 19% revenue growth on top of strong previous year 91% growth baseline
	PROFITABILITY	EUR 11m Adj EBITDA at 8.1% Adj EBITDA margin
	FREE CASH FLOW	EUR 7m of Free Cash Flow; LTM Free Cash Flow at EUR 44m and 8% LTM Free Cash Flow margin
CUSTOMERS		Loyal active customer base at 1.7m end of Q2 2021, +47% vs Q2 2020
WESTWING CUSTOMER EXPERIENCE 2.0		Progressing on our strategic agenda towards EUR 1 billion revenue by 2024/25; Highlights: Launch of two new exclusive Westwing Collections, 80,000 sqm new warehouse building project, accelerated Technology investments, and strong ESG results
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

Note: Unaudited. Adj EBITDA is excluding (i) share-based compensation expenses, (ii) expenses for a tax claim provision against a divested entity regarding previous years, and (iii) income/expenses for the centralization of the French business.

COVID-19 continues to impact the world – Health and safety of our employees, customers, partners remain our top priority

Westwing warehouses and photo studios continue to operate with highest hygiene standards, social distancing measures, etc.

We take comprehensive safety measures to minimize the risk of a temporary warehouse closure, yet a risk remains

Westwing team vaccination campaign under way to support employee safety

Office teams continue to work mostly from home, and we cautiously review how and when we can partially return to our offices

Topline level shift confirmed, continued growth on top of last year's extraordinary baseline

Global supply chain situation remains challenging; associated profitability and offering risks are limited

Current status

• Global cargo disruptions cause increasing freight rates and capacity issues, predictability of capacity and prices is extremely difficult; challenges expected to remain well into 2022

Continued raw material price inflation especially on timber, textiles, and foam
Severe COVID situation caused a significant lower production capacity in India and subsequent supply shortages

Mitigating measures

• Close collaboration with suppliers to ensure availability of our offering to customers (detailed forecasting with supplier, prioritization, early reservation of production capacity)

• Cost inflation (container rates and raw materials) mostly mitigated through price increases

Financial impact

Gross Margin net impact of supply chain issues and cost inflation is assumed around 1% of revenue for FY 2021
Temporarily increased Net Working Capital likely, as we secure stock and ensure supply through pre-payments and inventory buffer

Note: Unaudited.

Westwing Customer Experience 2.0 will guide our path to 2024/25

Westwing Customer Experience 2.0

Double down on our Creative & inspirational core

Westwing Collection
Creative team
Organic marketing
Video & Live shopping
AR/3D/CGI

Set the next level of Order & post-order experience

Westwing Delivery Service
Westwing Interior Design Service
Personalization

Scale up Business model & platform

Supplier partnerships
Technology scale-up
International profitability
Warehouse capacity

Deeply embed Sustainability into our operating model

Launch of two exclusive Westwing Collections in recent months

80,000 sqm new warehouse building project started

80,000 sqm (+option to expand by another 30,000 sqm)

Together with a developer we have started the construction on a new warehouse to create additional capacity for our growth strategy towards EUR 1bn in sales

Capacity EUR 250m GMV per year

Opening

Location

H1 2022

Size

Investment

Ground and building investments will be taken by developer

CAPEX by Westwing limited to handling equipment and installations

Highlights Westwing Customer Experience 2.0

Technology investments are fueling our growth strategy

FTE in Technology [#] Technology investments are critical enabler of our ambitious growth strategy

Selected investment areas

Mobile front-end and App experience

Platform scale-up

Augmented Reality, 3D

ERP and Tooling

Security

Highlights Westwing Customer Experience 2.0

ISS ESG scored Westwing within the top 30% of our industry

The use by Westwing Group AG of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Westwing Group AG by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

Targets 2024/25: European Home & Living eCommerce consumer love brand at EUR 1 billion revenue

Revenue Growth at 19% in Q2 2021

International Segment Revenue (in EUR m)

Income statement details

[in % of revenue]	H1 2019	H1 2020	H1 2021	Delta 20 vs 21	Q2 2019	Q2 2020	Q2 2021	Delta 20 vs 21
Gross margin	42.9%	47.9%	50.1%	+2.2%pts	43.4%	48.6%	49.5%	+0.9%pts	Westwing Collection share gain
Fulfilment ratio	-24.3%	-20.9%	-19.9%	+0.9%pts	-24.9%	-19.9%	-20.5%	-0.6%pts
Contribution margin	18.5%	27.0%	30.2%	+3.2%pts	18.5%	28.7%	29.0%	+0.4%pts
Marketing ratio	-7.8%	-6.9%	-8.5%	-1.5%pts	-8.4%	-5.4%	-9.6%	-4.2%pts	Growth investments into Marketing
G&A ratio1) G&A ratio1)	-21.4%	-15.3%	-12.7%	+2.6%pts	-22.2%	-12.4%	-13.6%	-1.2%pts	Growth investments into Technology and Westwing Collection
D&A ratio D&A ratio	3.4%	2.8%	2.2%	-0.6%pts	3.6%	2.3%	2.3%	-0.0%pts
Adj. EBITDA margin Adj. EBITDA margin	-7.3%	7.6%	11.2%	+3.7%pts	-8.5%	13.2%	8.1%	-5.1%pts

Group profitability at 8% Adj EBITDA margin in Q2 2021

DACH Segment Adj EBITDA (in % of Revenue)

International Segment Adj EBITDA (in % of Revenue)

Net Working Capital negative at EUR -3m; CAPEX ratio remains very low at 1.8%

EUR 7m Free Cash Flow in Q2 2021 resulting in a strong Net Cash position of EUR 122m; Free Cash Flow margin LTM at 8%

Note: Unaudited. Free Cash Flow defined as the sum of Operating Cash Flow and Investing Cash Flow.

Guidance for FY 2021 confirmed

Guidance FY 2021 Comments

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

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

Based on strong H1 2021, the guidance for FY 2021 is being confirmed
H2 growth rates expected to be lower than H1 in line with guided full year results; Jul/Aug GMV growth at 7-11% yoy on top of the very high baseline from last year

Q2 2021 Summary

EUR 132m Revenue

at 19% growth yoy

EUR 11m Adj EBITDA

at 8% margin

1.7m Active Customers

and 4.6m orders delivered LTM

FY 2021 guidance confirmed

EUR 510-550m Revenue and EUR 42-55m of Adj EBITDA

Investment highlights

The opportunity is massive

Huge Home & Living market of EUR 120bn very early in eCommerce with exiting growth momentum based on a dynamic online adoption

Customer loyalty at the core

The differentiating creative and inspirational core of Westwing drives superior loyalty with 80% repeat order share(1)

Westwing Collection

Our Westwing Collection perfectly leverages the loyalty to our love brand at +12 to +15%pts Adj. EBITDA margin upside vs 3rd party suppliers

Attractive target P&L

Based on our highly profitable consumer love brand strategy we target a long-term profitability of 15% Adj. EBITDA

Strong cash profile

Best-in-class cash conversion based on negative Net Working Capital and low CAPEX ratio – FY 2020 Free Cash Flow margin at 9%

Growing Active Customer base while expanding share of wallet

Loyalty-driven business model results in exceptional repeat order rates

Note: 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 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Collection share Westwing	of in % GMV	21%	22%	27%	25%	25%	22%	26%	28%	31%
Active customers	k in	927	909	926	949	986	1 178 ,	1 284 ,	1 529 ,	1 720 ,
of Number orders	in k	591	492	539	805	675	1 051 ,	874	1 474 ,	1 268 ,
basket Average size	in EUR	129	132	132	121	127	122	129	119	129
orders Average LTM active customer per	in #	2 6	2 6	2 6	2 6	2 5	2 6	2 7	2 7	2 7
Average GMV LTM active customer per	in EUR	318	322	326	327	324	325	330	328	337
GMV	in EUR m	7 6	6 5	7 1	9 8	8 5	128	113	175	164
Mobile share visit	in %	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	H1 2020	H1 2021	Q2 2020	Q2 2021
Revenue	179	270	111	132
Cost of Sales	-93	-135	-57	-66
Gross profit	86	135	54	65
Fulfilment expenses	-37	-54	-22	-27
Marketing expenses	-12	-23	-6	-13
General and administrative expenses	-31	-41	-16	-22
Other operating expenses	-1	-2	-1	-2
Other operating income	1	2	1	1
Operating result	5	17	10	3
Financial result	-1	-1	-0	0
Result before income tax	4	16	9	3
Income tax expense	-1	-4	-1	-2
Result for the period	3	13	8	2
Reconciliation to Adj EBITDA
Operating result (EBIT)	5	17	10	3
Share-based compensation expenses	4	6	2	4
Centralization France	-0	-0	-0	0
Provision tax claim Russia	0	1	0	1
D&A	5	6	3	3
Adj. EBITDA	13	30	15	11
Adj EBITDA margin (%)	7.6%	11.2%	13.2%	8.1%

Adjusted income statement

EUR m, in % of revenue, unaudited	H1 2020	H1 2021	Q2 2020	Q2 2021
Revenue	179	270	111	132
Revenue Growth YoY	49.5%	51.2%	91.3%	18.6%
Cost of Sales	-93	-135	-57	-66
Gross Profit	86	135	54	65
Gross Margin	47.9%	50.1%	48.6%	49.5%
Fulfillment expenses	-37	-54	-22	-27
Contribution profit	48	81	32	38
Contribution margin	27.0%	30.2%	28.7%	29.0%
Marketing expenses	-12	-23	-6	-13
General and administrative expenses	-27	-35	-14	-18
Other operating expenses	-1	-1	-1	-1
Other operating income	1	2	1	1
Depreciation and Amortization	5	6	3	3
Adj EBITDA	13	30	15	11
Adj EBITDA Margin	7.6%	11.2%	13.2%	8.1%

Segment reporting

DACH in EUR m, unaudited	H1 2020	H1 2021	Q2 2020	Q2 2021
Revenue	97.4	153.8	59.8	74.7
YoY Growth (in %)	49%	58%	87%	25%
Adj. EBITDA	12.1	25.8	11.2	10.0
Adj. EBITDA Margin %	12.4%	16.8%	18.7%	13.4%

International in EUR m, unaudited	H1 2020	H1 2021	Q2 2020	Q2 2021
Revenue	81.3	116.4	51.3	57.0
YoY Growth (in %)	50%	43%	96%	11%
Adj. EBITDA	1.7	4.8	3.8	0.8
Adj. EBITDA Margin %	2.1%	4.1%	7.3%	1.4%

Net Working Capital Bridge

Net Working Capital (NWC) breakdown as of June 30, 2021 (EUR m)

Issued share capital

Share Information as of June 30, 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	343,275

Stock Option Programs as of June 30, 2021

Program	# of options outstanding	Weighted average exercise price (EUR)
VSOPs(1)	869,000	2.48(1)
LTIP 2019(2)	1,944,750	19.30(2)
LTIP 2016	105,750	0.01
Other	804,725	10.73
Total	3,724,225	12.98

Upcoming Events

Date	Event
September 17, 2021	Citi: Small, Mid-Cap & Growth Conference 2021
September 20, 2021	Berenberg: German Corporate Conference
September 22, 2021	Baader: Investment Conference Small Cap Day
November 11, 2021	Publication of Q3 2021 results
November 23, 2021	Deutsches Eigenkapitalforum 2021