Westwing Group SE

Investor Presentation • May 11, 2022

Q1 2022 Results

Munich, May 11, 2022

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.

Our mission: To inspire and make every home a beautiful home.

AGENDA

• Business update
• Financial update
• Q&A

Business Update

Summary

Q1 2022 RESULTS	GROWTH	EUR 111m revenue, down by -20% yoy due to strong baseline from previous year and a challenging demand environment with low consumer sentiment
	PROFITABILITY	Adj. EBITDA of EUR -1.7m at -1.5% Adj. EBITDA margin driven by lower topline alongside strategic growth investments
	FREE CASH FLOW	Free Cash Flow of EUR -17m affected by a temporary increase of Net Working Capital
ACTIVE CUSTOMERS		Loyal active customer base at 1.6m end of Q1 2022, -7% vs. the exceptionally high level of Q1 2021; up by 61% compared to Q1 2020
WESTWING COLLECTION		Westwing Collection continues to be on track towards the 50% strategic target share. 37% GMV share in Q1 2022 up by 6% pts. vs. Q1 2021
FY 2022 OUTLOOK		We now expect to meet the lower half of the full year guidance in terms of Revenue (EUR 460m to 540m at -12% to +3% yoy growth) and Adj. EBITDA (EUR -9m to +16m at -2% to +3% Adj. EBITDA margin)

Note: All figures unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items.

Topline growth down due to extraordinarily high baselines from last year and a difficult market environment with low demand for Home & Living online

First half of 2022 still facing extremely strong baselines from last year; applying 2019 seasonality on a weak Q1 2022, we return to growth in the second half of 2022

Quarterly GMV [in EUR m]

Active Customers down by 7% yoy vs. the exceptionally high level of Q1 2021; up by 61% compared to Q1 2020

Our high-margin Westwing Collection continues to be on track towards the 50% strategic target share

Additional shipping capacity secured with the opening of a new warehouse

Financial Update

Revenue growth of -20% in Q1 2022 driven by last year's extraordinary baseline and decreasing consumer sentiment

Note: All figures unaudited.

Income statement details

[in % of revenue]	Q1 2020	Q1 2021	Q1 2022	Delta 21 vs. 22
Gross margin	46.7%	50.6%	48.7%	-1.9%pts	Gross margin impacted by inflationary headwinds and costs related to supply chain disruptions
Fulfilment ratio	-22.4%	-19.4%	-23.4%	-4.0%pts	Rise in fulfillment costs due to lower utilization of increased warehouse infrastructure and ongoing high storage costs given higher inventory levels
Contribution margin	24.3%	31.2%	25.3%	-5.9%pts
Marketing ratio	-9.5%	-7.4%	-10.4%	-3.0%pts	Marketing spend in line with target range of 9-11%
G&A ratio(1)	-20.1%	-11.8%	-20.0%	-8.2%pts	Investments into Technology and Westwing Collection to drive future growth paired with lower topline
D&A ratio	3.5%	2.2%	3.6%	+1.4%pts
Adj. EBITDA margin	-1.8%	14.2%	-1.5%	-15.7%pts

Note: All figures unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items; (1) Includes "Other result".

Profitability currently impacted by lower topline and strategic growth investments

Note: All figures unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items.

Net Working Capital temporarily positive at EUR 16m; CAPEX increase driven by strategic technology and warehouse investments

Note: All figures unaudited.

Net working capital expected to further increase driven by high inventory levels and normal seasonality before we see improvement in Q4 2022

Note: All figures unaudited. Contract liabilities in the IFRS balance sheet refers to customer prepayments; (1) Includes accruals.

Free Cash Flow for Q1 2022 driven by investments into working capital

Q1 Free Cash Flow bridge [in EUR m]

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 79m end of Q1 2022

Guidance FY 2022

As of March 29, 2022

EUR 460m to 540m Revenue

-12% to +3% yoy growth Positive in H2 after baseline effects phase out

EUR -9m to +16m Adj EBITDA

-2% to +3% Adj. EBITDA margin Much better in H2

Based on significantly lower consumer sentiment observed across all segments over the last months, we now expect to meet the lower half of the full year guidance in terms of Revenue and Adj. EBITDA

Summary and Q&A

Q1 2022 Revenue: EUR 111m

at -20% growth yoy

Q1 2022 Adj. EBITDA: EUR -1.7m

at -1.5% margin

1.6m Active Customers

4.0m orders delivered LTM

Westwing Collection

Westwing Collection at 37% share towards strategic target of 50%

Q1 2022 Summary Investment highlights

The opportunity is massive

Huge Home & Living market of EUR 120bn is still very early in eCommerce 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 growing 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

Structurally negative Net Working Capital and low CAPEX ratio

Note: All figured unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items; (1) As of FY 2021.

Growing Active Customer base while expanding share of wallet

Note: Unaudited. Active customer defined as a customer who has made a valid order within the last 12 months. Note: All figures unaudited. Active customer defined as a customer who has made a valid order within the last 12 months.

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. 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.

Group KPIs	Unit	Q1 2019	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Westwing Collection share	in % of GMV	21%	22%	27%	25%	25%	22%	26%	28%	31%	32%	38%	37%	37%
Active Customers	in k	927	909	926	949	986	1,178	1,284	1,529	1,720	1,730	1,750	1,705	1,593
Number of orders	in k	591	492	539	805	675	1,051	874	1,474	1,268	1,022	819	1,262	872
Average basket size	in EUR	129	132	132	121	127	122	129	119	129	135	144	131	147
Average orders LTM per Active Customer	in #	2.6	2.6	2.6	2.6	2.5	2.6	2.7	2.7	2.7	2.7	2.6	2.6	2.5
Average GMV LTM per Active Customer	in EUR	318	322	326	327	324	325	330	328	337	341	340	343	345
GMV	in EUR m	76	65	71	98	85	128	113	175	164	139	118	166	128
Mobile visit share	in %	75%	76%	77%	76%	76%	79%	80%	79%	79%	80%	80%	80%	80%

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	FY 2020	FY 2021	Q1 2021	Q1 2022
Revenue	432.9	522.5	138.4	111.1
Cost of Sales	-218.9	-265.7	-68.4	-57.0
Gross profit	213.9	256.8	70.1	54.1
Fulfilment expenses	-86.1	-107.1	-26.8	-26.0
Marketing expenses	-31.0	-49.3	-10.3	-11.5
General and administrative expenses	-64.9	-79.3	-19.2	-18.3
Other operating expenses	-3.6	-3.8	-0.3	-0.7
Other operating income	3.0	3.9	0.5	0.5
Operating result	31.4	21.1	13.9	-1.9
Financial result	-3.5	-2.1	-0.8	-0.8
Result before income tax	27.8	19.0	13.1	-2.7
Income tax expense	1.9	-7.0	-1.9	-1.3
Result for the period	29.8	12.0	11.1	-4.0
Reconciliation to Adj. EBITDA
Operating result (EBIT)	31.4	21.1	13.9	-1.9
Share-based compensation expenses	8.4	5.6	2.7	-3.8
Centralization France	-0.4	-0.0	-0.0	-
SE Conversion Costs	-	0.4	-	-
Provision tax claim Russia	-	0.3	-	-
D&A	10.6	13.0	3.0	4.0
Adj. EBITDA	50.0	40.4	19.6	-1.7
Adj. EBITDA margin (%)	11.5%	7.7%	14.2%	-1.5%

Note: All figures unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items.

Adjusted income statement

EUR m, in % of revenue	FY 2020	FY 2021	Q1 2021	Q1 2022
Revenue	432.9	522.5	138.4	111.1
Revenue Growth yoy	62.0%	20.7%	104.9%	-19.7%
Cost of Sales	-218.9	-265.7	-68.4	-57.0
Gross Profit	213.9	256.8	70.1	54.1
Gross Margin	49.4%	49.1%	50.6%	48.7%
Fulfillment expenses	-86.2	-107.1	-26.8	-26.0
Contribution profit	127.7	149.7	43.2	28.1
Contribution margin	29.5%	28.7%	31.2%	25.3%
Marketing expenses	-30.9	-49.3	-10.3	-11.5
General and administrative expenses	-56.9	-73.4	-16.6	-22.1
Other operating expenses	-3.6	-3.5	-0.3	-0.7
Other operating income	3.0	3.9	0.5	0.5
Depreciation and Amortization	10.6	13.0	3.0	4.0
Adj. EBITDA	50.0	40.4	19.6	-1.7
Adj. EBITDA Margin	11.5%	7.7%	14.2%	-1.5%

Note: All figures unaudited. Figures in this section are presented on an adjusted basis, i.e. excluding (i) share-based compensation (in Fulfilment, Marketing and General and Administrative expenses) and (ii) income/expenses for the French business restructuring. "Adjusted EBITDA" is calculated by adjusting for these items.

Segment reporting

DACH in EUR m	FY 2020	FY 2021	Q1 2021	Q1 2022
Revenue	242.6	296.8	79.1	60.7
yoy Growth (in %)	60.2%	22.4%	110.2%	-23.3%
Adj. EBITDA	41.0	38.8	15.8	2.3
Adj. EBITDA Margin %	16.9%	13.1%	19.9%	3.8%

International in EUR m	FY 2020	FY 2021	Q1 2021	Q1 2022
Revenue	190.3	225.7	59.3	50.4
yoy Growth (in %)	64.2%	18.6%	98.2%	-15.0%
Adj. EBITDA	9.2	2.8	4.0	-3.8
Adj. EBITDA Margin %	4.8%	1.2%	6.7%	-7.5%

Net Working Capital

Net Working Capital (NWC) breakdown as of March 31, 2022 [EUR m]

Issued Share Capital

Share Information as of March 31, 2022

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	326,475

Stock Option Programs as of March 31, 2022

Program	# of options outstanding	Weighted average exercise price (EUR)
VSOPs(1)	889,375	2.45(1)
LTIP 2019(2)	1,842,450	19.30(2)
LTIP 2016	96,450	0.01
Other	754,925	11.24
Total	3,583,200	12.90

Note: All figures unaudited; Equity programs are shown on pre-conversion basis;

(1) VSOPs are virtual, cash-settled option programs with an average cap of EUR 21.49, vesting end of 2022; (2) LTIP 2019 vesting end of 2022.

Upcoming Events

May 17, 2022	Bank of America Consumer eCommerce Virtual Field Trip
May 18, 2022	Annual General Meeting
August 11, 2022	Publication of half-year financial report 2022
September 13, 2022	Jefferies Virtual Home Retail Summit 2022
September 19, 2022	Berenberg and Goldman Sachs Eleventh German Corporate Conference
November 10, 2022	Publication of quarterly statement Q3 2022