Westwing Group SE

Investor Presentation • Mar 30, 2023

FY 2022 Results

Munich, March 30, 2023

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

• Business Update
• Financial Update
• Q&A

State of Westwing

1	Q4 2022 results	• Positive Adj EBITDA of EUR +4m and strong Free Cash Flow of EUR +12m in Q4 2022 • Cash at EUR 76m per end of Q4 2022 (EUR +12m vs Q3 2022)
2	Clear focus on financial stability in FY 2023	• The macro environment remains challenging, but we are confident to return to growth in the second half of 2023 • Navigating the current uncertainty and difficult market environment with financial stability
3	Strong rating improvement confirms our ESG strategy	• We continue to successfully embed sustainability deeply into our operating model • 2022 rating confirms Westwing as an ESG industry leader
4	Progress on Westwing's full potential	• One Westwing implementation progresses as planned with promising results • Westwing Collection well on track to target share of +50% group GMV

1 GMV and Active Customer increasing at a CAGR of +13% and +12% vs. Q4 2019

We continue to deliverer against our financial priorities

Protecting unit economics

• Increasing high-margin Westwing Collection share
• Retail price increases
• Further shipping fee introduction
• Implementing fulfillment efficiencies

Strong cost discipline

- Progressing as planned to deliver EUR 30m of cost reduction p.a.(1) across SG&A, Marketing, and CAPEX

1

Decisive net working capital management

• EUR -22m Net Working Capital reduction per end of Q4 2022 vs peak of Q2 2022
• Maintaining a strong cash position
  • EUR 76m Cash & Cash Equivalents per end of Q4 2022 (EUR +12m vs Q3 2022)

Q4 2022 results

Positive Adj EBITDA of EUR +4m and 3.3% margin

Strong Free Cash Flow at EUR +12m in Q4 2022

Note: Free Cash Flow is not part of capital market guidance for FY 2023. Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

Driving clear short-term priorities in 2023 to support the path towards our long-term target of 10-15% Adj. EBITDA and strong cash conversion

Note: Long-term target figures provided here are indicative and do not represent official company guidance. Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

2

Our high-margin Westwing Collection and scalable platform will result in a very attractive long-term profitability

2

	FY 2022	FY 2023 expected	Long-term target P&L
[in % of revenue]
Contribution margin	25%	+25 to +27%	+30 to +32%	Westwing Collection share gains and logistic scale
Marketing ratio	-9%	-9 to -10%	-9 to -11%	Consumer love brand results in attractive marketing ratio
G&A ratio(1)	-21%	-17 to -19%	-10 to -12%	Operating leverage based on proven scalability of platform
D&A ratio	+4%	+4 to +5%	+2 to +3%
Adj. EBITDA margin	-1%	+1 to +3%	+10 to +15%

Note: (1) Includes "Other result". Figures provided here are indicative and do not represent official company guidance. Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

Note: THE USE BY WESTWING 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 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.

"OneWestwing" is on track, as we roll-out the better and more intuitive customer 4 experience across the European markets

Merging Shop and Club mobile apps

Consolidate back-end Technology stack to enable synergies

Continuously optimize marketing, conversion, and traffic drivers within the new set-up to maximize GMV uplift

Westwing Collection well on track to target share of +50% of GMV 4

We delivered on our updated FY 2022 guidance

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

Westwing remains significantly larger compared to pre-pandemic FY 2019 baseline

Income statement details

[in % of revenue]	FY 2019	FY 2021	FY 2022	Delta 22 vs. 21	Q4 2019	Q4 2021	Q4 2022	Delta 22 vs. 21
Gross margin	44.6%	49.1%	48.1%	-1.1%pts	47.1%	47.6%	47.3%	-0.3%pts	Cost increases and stock sell offs mostly compensated by higher Westwing Collection share and price increases
Fulfilment ratio	-23.2%	-20.5%	-22.7%	-2.2%pts	-21.1%	-20.0%	-21.1%	-1.1%pts	Lower utilization and cost inflation
Contribution margin	21.4%	28.7%	25.3%	-3.3%pts	26.0%	27.6%	26.1%	-1.5%pts
Marketing ratio	-8.6%	-9.4%	-9.1%	+0.3%pts	-8.2%	-9.5%	-7.1%	+2.4%pts	Cost savings in organic and performance marketing
G&A ratio(1)	-20.0%	-14.0%	-21.4%	-7.4%pts	-17.7%	-13.4%	-19.8%	-6.4%pts	Impact from lower scale; cost savings not yet fully effective in P&L
D&A ratio	3.4%	2.5%	4.2%	+1.7%pts	2.9%	2.4%	4.1%	+1.7%pts
Adj. EBITDA margin	-3.8%	7.7%	-1.0%	-8.7%pts	3.1%	7.0%	3.3%	-3.7%pts

Note: (1) Includes "Other result". G&A ratio without "Other result" at 20.8% for FY 2022 and 17.9% for Q4 2022. Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

Group profitability at 3.3% Adj. EBITDA margin in Q4 2022

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted EBITDA, the company refers to the corresponding definitions in its Annual Report 2022.

Net Working Capital back to FY 2021 levels; CAPEX ratio remains at only 3% in FY 2022

We reduced Net Working Capital back to healthy levels

Strong cash balance of EUR 76m; EUR 91m in liquidity available per end of Q4 2022

Cash and cash equivalents Q3 2022 vs. Q4 2022 [in EUR m]

Available liquidity bridge Q4 2022 [in EUR m]

Note: Free Cash Flow defined as the sum of Operating Cash Flow and Investing Cash Flow; (1) Trade financing solution total volume: EUR 13m (of which EUR 8m utilized in Q4 2022); (2) Revolving Credit Facility (RCF) volume: EUR 10m (non-revokable till end of 2024).

The opportunity is massive	Huge Home & Living market of EUR 130bn very early in eCommerce
Customer loyalty at the core	The differentiating creative and inspirational core of Westwing drives superior loyalty for our love brand with >80% repeat order share(1)
Westwing Collection	Our Westwing Collection perfectly leverages the loyalty to our love brand at >10%pts margin upside
Strong cash profile	Our strong balance sheet has ample liquidity to navigate through the current challenging market environment
Attractive target P&L	We have a long-term Adj. EBITDA margin target of 10-15%

Continuously expanding share of wallet with customers

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.

KPI overview

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 Q2 2022	Q3 2022	Q4 2022
Westwing Collection share	in % of GMV	21%	22%	27%	25%	25%	22%	26%	28%	31%	32%	38%	37%	37%	38%	44%	44%
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	1,486	1,422	1,320
Number of orders	in k	591	492	539	805	675	1,051	874	1,474	1,268	1,022	819	1,262	872	685	620	951
Average basket size	in EUR	129	132	132	121	127	122	129	119	129	135	144	131	147	159	164	149
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	2.4	2.4	2.4
Average GMV LTM per Active Customer	in EUR	318	322	326	327	324	325	330	328	337	341	340	343	345	349	355	364
GMV	in EUR m	76	65	71	98	85	128	113	175	164	139	118	166	128	109	102	142
Mobile visit share	in %	75%	76%	77%	76%	76%	79%	80%	79%	79%	80%	80%	80%	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 2021	FY 2022	Q4 2021	Q4 2022
Revenue	522.5	430.8	149.1	128.4
Cost of Sales	-265.7	-228.1	-78.2	-72.0
Gross profit	256.8	202.7	71.0	56.4
Fulfilment expenses	-107.1	-94.2	-29.8	-23.3
Marketing expenses	-49.3	-40.6	-14.2	-9.3
General and administrative expenses	-79.3	-92.9	-16.0	-27.8
Other operating expenses	-3.8	-5.2	-1.7	-2.9
Other operating income	3.9	2.6	0.8	0.4
Operating result	21.1	-27.4	10.0	-6.5
Financial result	-2.1	-2.9	-0.6	-0.1
Result before income tax	19.0	-30.3	9.4	-6.6
Income tax expense	-7.0	-2.1	-1.5	-2.0
Result for the period	12.0	-32.4	7.8	-8.6
Reconciliation to Adj. EBITDA
Operating result (EBIT)	21.1	-27.4	10.0	-6.5
Share -based compensation expenses	5.6	-0.6	-3.2	3.9
Provision tax claim discontinued operations	0.3	-	-0.1	-
Expenses SE conversion	0.4	-	0.1	-
Restructuring France and Italy	-0.0	-	-	-
Restructuring severances 2022	-	5.7	-	1.7
D&A	13.0	18.1	3.6	5.3
Adj. EBITDA	40.4	-4.2	10.5	4.3
Adj. EBITDA margin (%)	7.7%	-1.0%	7.0%	3.3%

Adjusted income statement

EUR m, in % of revenue	FY 2021	FY 2022	Q4 2021	Q4 2022
Revenue	522.5	430.8	149.1	128.4
Revenue Growth yoy	20.7%	-17.5%	-4.2%	-13.9%
Cost of Sales	-265.7	-223.8	-78.2	-67.7
Gross Profit	256.8	207.1	71.0	60.7
Gross Margin	49.1%	48.1%	47.6%	47.3%
Fulfillment expenses	-107.1	-98.0	-29.8	-27.1
Contribution profit	149.7	109.1	41.1	33.5
Contribution margin	28.7%	25.3%	27.6%	26.1%
Marketing expenses	-49.3	-39.2	-14.2	-9.1
General and administrative expenses	-73.4	-89.7	-19.0	-22.9
Other operating expenses	-3.5	-5.2	-1.8	-2.9
Other operating income	3.9	2.6	0.8	0.4
Depreciation and Amortization	13.0	18.1	3.6	5.3
Adj. EBITDA	40.4	-4.2	10.5	4.3
Adj. EBITDA Margin (%)	7.7%	-1.0%	7.0%	3.3%

Segment reporting

DACH in EUR m	FY 2021	FY 2022	Q4 2021	Q4 2022
Revenue	296.8	242.4	86.7	73.5
yoy Growth (in %)	22.4%	-18.3%	-4.8%	-15.1%
Adj. EBITDA	38.8	7.9	10.5	5.1
Adj. EBITDA Margin %	13.1%	3.3%	12.2%	7.0%

International in EUR m	FY 2021	FY 2022	Q4 2021	Q4 2022
Revenue	225.7	188.4	62.5	54.9
yoy Growth (in %)	18.6%	-16.5%	-3.3%	-12.1%
Adj. EBITDA	2.8	-11.2	0.7	-0.5
Adj. EBITDA Margin %	1.2%	-5.9%	1.1%	-0.9%

Net Working Capital

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

Issued share capital

Share Information as of December 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	382,230

Stock Option Programs as of December 31, 2022

Program	# of options outstanding	Weighted average exercise price (EUR)
ECP 2022	33,927	1.00
VSOPs(1)	883,625	2.46(1)
LTIP 2019	1,828,800	19.30
LTIP 2016	96,450	0.01
Other	754,925	11.24
Total	3,597,727	12.78

Note: All figures unaudited. Stock option programs are categorized as granted. (1) VSOPs are virtual, cash-settled option programs with an average cap of EUR 23.90

Upcoming Events

May 11, 2023 Publication of first quarter results 2023

May 16, 2023 Annual General Meeting

August 10, 2023 Publication of half-year financial report 2023

September 18-20, 2023 Berenberg and Goldman Sachs Twelth German Corporate Conference

September 18-22, 2023 Baader Investment Conference

November 9, 2023 Publication of third quarter results 2023

November 27, 2023 Deutsches Eigenkapitalforum