FY 2023 Results

Munich, 28 March, 2024

Disclaimer | Forward looking statements

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 forward-looking statements discussed on this call due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfillment centres, inaccurate personnel and capacity forecasts for fulfillment centres, 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 01 Business update

Financial update
Path to full value potential
Financial outlook
Investment highlights
Q&A
Appendix

1. Business update

Key achievements in FY 2023

We delivered strong financial results.

Stable topline vs. 2022 in a shrinking market with EUR 481m GMV (EUR 429m Revenue), in upper half of guidance.
Adjusted EBITDA of EUR 18m, in upper half of updated (increased) guidance, and Free Cash Flow of EUR 30m in FY 2023.

We improved margins & cost structure and kicked off further improvements.

Strong operational improvements in contribution margin and G&A as a result of total committed EUR 30m cost savings.
Project to move to a mostly Software-as-a-Service (SaaS) solution vs. proprietary Technology has started.

We further grew our Westwing Collection.

• Westwing Collection share increased by 6pp year-over-year to 47% of total GMV FY 2023, driving contribution margin.

We rolled out the OneWestwing commercial model.

• Seamless customer experience across Shop and Club Sales is completed in DACH and mostly in International markets.

We strengthened our premium brand positioning.

• Focus on positioning across product assortment, brand Marketing incl. brand refresher, on-site content, collaborations, and offline presence.

We progressed towards our ambitious Sustainability targets.

We continued our focus on Sustainability across products, planet, and people.
Our long-term Science Based Targets are officially validated regarding reduction in greenhouse gas emissions for Scope 1, 2 and suppliers.

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 FY 2023 report. 5

+4% GMV per Active Customer

We delivered on our 2023 topline promise

1.3m Active Customers for FY 2023, growth in H2 versus H1 2023

We clearly outperformed the market in our largest geography

Year-over-year sales growth [in %]

We delivered on our promised Adjusted EBITDA profitability…

Besides focusing on margins and costs, we achieved the results by driving our key strategic initiatives

share increase

OneWestwing commercial model

Westwing Collection Sustainability Premium positioning

2023 marked the turnaround for Westwing. On top, we were able to prove that our new commercial model with a focus on Shop and Westwing Collection clearly works.

We made good progress regarding Sustainability in 2023

Our Sustainability report will be released on 4 April 2024

Products	48% of online Westwing Collection products feature the label(1) WE CARE	100% transition to sustainable packaging achieved (Westwing Collection)	100% of non-EU and 67% of EU Westwing Collection suppliers evaluated on social aspects	43% share of plastic packaging with >60% recycled content
	Planet	GHG emissions reduction targets validated by the Science Based Targets initiative (SBTi) See details on next slide	43% reduction of GHG emissions from Scopes 1 and 2(2)	34% share of renewable electricity in our own operations	5 Product Carbon Footprints (PCFs) calculated for Westwing Collection products
		People	39% reduction in total lost time accidents at our Logistics centres	640 hours volunteered with community projects	Social standard launched for our Logistics centres in Poland	Human rights and Artificial Intelligence Usage Guideline policy adopted

We received validation for our ambitious long-term Science Based Targets

Long-term Science

Based Targets 75%

reduction in GHG emissions(1) for Scope 1 and 2(2)

80%

of suppliers(3) have Science Based Targets

Validated by Science Based Targets initiative

Note: (1) Target set against 2022 baseline; (2) Scope 1: Direct emissions from Operations, Scope 2: Indirect emissions from purchased energy sources; (3) By spend covering purchased goods and services, and upstream transportation and distribution.

2. Financial update

We delivered on our updated FY 2023 guidance

14 Note: Free Cash Flow was 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 FY 2023 report.

We achieved a stable topline in 2023 and returned to growth in the second half of the year Group Revenue [in EURm]

Despite overall market decline, Westwing achieved topline growth in the second half of the year and gained market share.
FY 2023 GMV at EUR 481m, on previous year's level.
Full year Revenue development slightly below GMV development driven by timing effect, resulting in Revenue being slightly below

Segment Revenue [in EURm] Topline development of International Segment outperformed DACH Segment

• Westwing's International Segment with growth for Q4 2023 and FY 2023, outperforming DACH Segment.

116

Note: Figures in this section are presented on an adjusted basis. For details regarding the exact definition of the alternative performance Adjusted 16 EBITDA, the Company refers to the corresponding definitions in its FY 2023 report.

Q4'19 Q4'22 Q4'23

Topline recovery driven by Active Customer development – turning point reached in Q3 2023 and increasing quarter-over-quarter

Active Customers [in m]

Westwing Collection share continued to increase

Westwing Collection share [as % of Group GMV] 24% 25% 34% 41% 47% 76% 75% 66% 59% 53% FY'19 FY'20 FY'21 FY'22 FY'23 100% Westwing Collection 3rd party suppliers

Note: All figures unaudited. 18

We significantly improved our contribution margin per order

CAGR xx% Note: All figures unaudited. 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 FY 2023 report.

Strong improvements across most of the P&L lines

[as % of Revenue]	FY 2019	FY 2022	FY 2023	Delta 23 vs. 22	Q4 2019	Q4 2022	Q4 2023	Delta 23 vs. 22
Gross margin	44.6%	48.1%	50.7%	+2.6pp	47.1%	47.3%	51.5%	+4.2pp	Strong Westwing Collection share gains
Fulfilment ratio	-23.2%	-22.7%	-22.1%	+0.7pp	-21.1%	-21.1%	-22.1%	-1.0pp	Costs for centralisation of Logistics centre
Contribution margin	21.4%	25.3%	28.6%	+3.3pp	26.0%	26.1%	29.4%	+3.2pp
Marketing ratio	-8.6%	-9.1%	-10.6%	-1.5pp	-8.2%	-7.1%	-12.2%	-5.1pp	Investments into brand awareness
G&A ratio(1)	-20.0%	-21.4%	-18.5%	+2.9pp	-17.7%	-19.8%	-16.8%	+3.0pp	Successful implementation of cost savings
D&A ratio	3.4%	4.2%	4.6%	+0.4pp	2.9%	4.1%	4.2%	+0.1pp	Shortened lifetime of in-house developed assets; higher rent
Adj. EBITDA margin	-3.8%	-1.0%	4.1%	+5.1pp	3.1%	3.3%	4.5%	+1.2pp

FY 2023 with profitable Adjusted EBITDA margin of 4.1%

Group Adjusted EBITDA [as % of Revenue]

2023 marked a turnaround for Westwing in terms of operational efficiency and profitability.
Adjusted EBITDA margin profitability in every quarter of 2023.
Profitability driven by increased Westwing Collection share and successful delivery of promised cost savings and additional measures for enhanced efficiency.

DACH and International Segment both with positive Adjusted EBITDA margin in FY 2023 Segment Adjusted EBITDA [as % of Revenue]

Both Segments with improved Adjusted EBITDA profitability year-over-year, driven by Westwing Collection share, consolidation, and efficiency gains.
International Segment catching up very fast at +7pp Adjusted EBITDA margin improvement year-over-year, mainly driven by France and the Netherlands.
DACH Segment Q4 impacted by investment into brand awareness.

Westwing achieved a clearly positive Free Cash Flow in FY 2023

Free Cash Flow [in EURm]

Strong positive Free Cash Flow in FY 2023 mainly driven by strong Adjusted EBITDA and Net Working Capital improvements.
Net Working Capital improvement driven by EUR 17m reduction of excess inventory.

Net Working Capital improved by EUR 11m driven by EUR 17m inventory reduction year-over-year

We reduced CAPEX by EUR 9m year-over-year

We strengthened our balance sheet with EUR 82m Net Cash per end of 2023

Very strong Net Cash balance sheet position with zero debt per end of 2023.
Strong Net Cash position providing us with strategic optionality and the confidence to focus on our long-term strategy, e.g. by investing into our commercial model, brand positioning, complexity reduction and country expansion.

Note: For 31 Dec, 2022, not considering EUR 8m trade financing; Net Cash = cash and cash equivalents –trade financing; Free Cash Flow 26 defined as the sum of Operating Cash Flow and Investing Cash Flow.

3. Path to full value potential

We are in the middle of a 3-step plan to unlock Westwing's value potential

(1) Financial guidance for 2024; 2025 guidance tbd. 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 FY 2023 report. 28 1 Complexity reduction

We are building a lean Technology platform and centralising our organisation & product assortment further

Mostly Software	Consolidation of
as-a-Service	local PL/IT/ES
(SaaS) Tech	Logistics centre
solution	footprint
Restructuring	Mostly global
of IT/ES	product
corporate	assortment for
functions	IT/ES

2 Stronger premium brand positioning

360° approach

Premium services such as Westwing branded delivery fleet, interior design service, best in class customer care.

Collaborations

Cooperations with premium & luxury brands and well-known personalities.

Product assortment

Unique premium assortment of own design Westwing Collection and best 3rd party design brands = Europe's premium one-stop destination.

On-site content

Attractive, inspirational storytelling with refined visuals and tone of voice to support customers' purchasing decisions.

EUR Brand Marketing

169 basket size 10% Y.o.Y growth Clear premium brand positioning across all channels incl. refreshed brand appearance & awareness campaign "Live Beautiful".

Offline presence

Physical retail space in premium locations, so far at Jungfernstieg/Hamburg and within Breuninger's fashion & lifestyle store/Stuttgart.

We just opened our second physical retail space and first ever store-instore at Breuninger's flagship fashion & lifestyle house in Stuttgart

Countries Westwing is active in per 28 March 2024. Planned expansion for 2024.

Westwing is active in 11 European countries – upcoming geographic expansion will follow entirely different setup vs. past 3 Country expansion

expansion in the past

Local setup with office, Logistics centre & staff.
Local supply base & product assortment (3 rd party products).
Club Sales based.
Small scale effects.

Westwing country Upcoming Westwing country expansion

Managed by HQ and served by central Logistics centre.
Mostly global supply & product assortment; AI supported translations.
Shop and Westwing Collection first environment.
Large scale effects.

We will start Portugal as a new Westwing geography in 2024, and will add further countries from 2025 onwards based upon learnings.

4. Financial outlook

Our 3-step plan will help us to unlock Westwing's value potential with profitable growth and strong cash conversion

Exemplary

Significant one-time costs for complexity reduction will arise in 2024 – implementation costs will mostly be adjusted in P&L

We had a good start into 2024, but high uncertainty for rest of the year remains

	FY 2023	Guidance FY 2024	Comments
Revenue	EUR 429m	EUR 415 to 445m (-3% to +4% yoy growth)	• Good start into 2024 at +6% GMV year-over-year growth year-to-date. • Macro environment likely to remain very challenging. • We believe we can continue to grow above market, but switch to global product offering for IT/ES will likely have detrimental effect on topline in H2.
Adjusted EBITDA	EUR 18m	EUR 14m to 24m (+3% to +5% margin)	• Increasing Westwing Collection share. • Cost discipline and P&L benefits from efficiency gains. • Invest for complexity reduction of EUR 10-15m will be adjusted, but with full impact on cash. • Free Cash Flow expected to be break-even.

5. Investment highlights

Investment highlights

Unique, relevant customer value proposition

Unique assortment of gorgeous, own design Westwing Collection and the best 3rd party design brands.
Best in class inspirational storytelling with distinct visuals and tone of voice.
Premium services such as interior design service and branded delivery fleet.
The one-stop destination for premium Home & Living.

Huge market potential

Addressing sizeable premium segment of EUR 130bn total Home & Living market(1) in existing 11 Westwing geographies. Future country expansion with additional potential.
Massive online penetration potential in a mostly offline market.
Strong brand with high loyalty and growth potential
Desirable brand among design lovers, with >13m followers on Social Media.
Clear premium positioning, only getting stronger.
Huge upside potential from brand Marketing invest and offline presence.
Westwing Collection product brand with attributes superior design, quality and sustainability.

High margins and operating leverage in scaling

High margins as a result of pricing power based on a strong brand, as well as the unique Westwing Collection with further GMV share potential.
Platform & commercial model allowing for scaling with operating leverage in existing countries and beyond.

Strong balance sheet

Strong Net Cash position and no debt.
Strong Net Working Capital.
Low Capex.

Clear path towards long-term Adjusted EBITDA margin of 10-15% with strong cash conversion.

7. Appendix

Continuously expanding share of wallet with customers

Active Customers and average GMV per Active Customer [in k, in EUR]

KPI overview

Group KPIs	Unit	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023
Westwing Collection share	in % of GMV	25%	22%	26%	28%	31%	32%	38%	37%	37%	38%	44%	44%	46%	46%	48%	47%
Active Customers	in k	986	1,178	1,284	1,529	1,720	1,730	1,750	1,705	1,593	1,486	1,422	1,320	1,262	1,252	1,262	1,275
Number of orders	in k	675	1,051	874	1,474	1,268	1,022	819	1,262	872	685	620	951	694	614	605	939
Average basket size	in EUR	127	122	129	119	129	135	144	131	147	159	164	149	169	178	177	157
Average orders LTM per Active Customer	in #	2.5	2.6	2.7	2.7	2.7	2.7	2.6	2.6	2.5	2.4	2.4	2.4	2.3	2.3	2.3	2.2
Average GMV LTM per Active Customer	in EUR	324	325	330	328	337	341	340	343	345	349	355	364	373	376	377	377
GMV	in EURm	85	128	113	175	164	139	118	166	128	109	102	142	118	109	107	147
Mobile visit share	in %	76%	79%	80%	79%	79%	80%	80%	80%	80%	80%	80%	80%	79%	78%	79%	82%

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 per end of the reporting period. 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 per end of the 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

EURm, in % of Revenue	FY 2022	FY 2023	Q4 2022	Q4 2023
Revenue	430.8	428.6	128.4	131.1
Cost of Sales	-228.1	-215.7	-72.0	-66.5
Gross profit	202.7	212.9	56.4	64.6
Fulfilment expenses	-94.2	-90.3	-23.3	-26.1
Marketing expenses	-40.6	-45.6	-9.3	-16.1
General and administrative expenses	-92.9	-85.2	-27.8	-25.6
Other operating expenses	-5.2	-6.2	-2.9	-2.6
Other operating income	2.6	5.9	0.4	1.4
Operating result	-27.4	-8.4	-6.5	-4.4
Financial result	-2.9	-0.7	-0.1	-0.1
Result before income tax	-30.3	-9.1	-6.6	-4.4
Income tax expense	-2.1	-3.3	-2.0	-2.5
Result for the period	-32.4	-12.4	-8.6	-7.0
Reconciliation to Adj. EBITDA
Operating result (EBIT)	-27.4	-8.4	-6.5	-4.4
Share-based compensation expenses	-0.6	2.3	3.9	0.7
Restructuring severances 2022	5.7	-	1.7	-
Tech migration	-	4.1	-	4.1
D&A	18.1	19.8	5.3	5.5
Adj. EBITDA	-4.2	17.8	4.3	5.9
Adj. EBITDA margin (%)	-1.0%	4.1%	3.3%	4.5%

Adjusted income statement

EURm, in % of Revenue	FY 2022	FY 2023	Q4 2022	Q4 2023
Revenue	430.8	428.6	128.4	131.1
Revenue growth yoy	-17.5%	-0.5%	-13.9%	2.1%
Cost of Sales	-223.8	-211.4	-67.7	-63.6
Gross Profit	207.1	217.2	60.7	67.4
Gross margin	48.1%	50.7%	47.3%	51.5%
Fulfillment expenses	-98.0	-94.5	-27.1	-29.0
Contribution Profit	109.1	122.7	33.5	38.5
Contribution margin	25.3%	28.6%	26.1%	29.4%
Marketing expenses	-39.2	-45.3	-9.1	-16.0
General and administrative expenses	-89.7	-80.3	-22.9	-22.2
Other operating expenses	-5.2	-4.9	-2.9	-1.3
Other operating income	2.6	5.9	0.4	1.4
Depreciation and Amortisation	18.1	19.8	5.3	5.5
Adj. EBITDA	-4.2	17.8	4.3	5.9
Adj. EBITDA margin (%)	-1.0%	4.1%	3.3%	4.5%

Segment reporting

DACH in EURm	FY 2022	FY 2023	Q4 2022	Q4 2023
Revenue	242.4	236.5	73.5	73.9
yoy growth (in %)	-18.3%	-2.4%	-15.1%	0.4%
Adj. EBITDA	7.9	16.1	5.1	4.2
Adj. EBITDA margin %	3.3%	6.8%	7.0%	5.7%

International in EURm	FY 2022	FY 2023	Q4 2022	Q4 2023
Revenue	188.4	192.1	54.9	57.2
yoy growth (in %)	-16.5%	2.0%	-12.1%	4.2%
Adj. EBITDA	-11.2	2.1	-0.5	1.8
Adj. EBITDA margin %	-5.9%	1.1%	-0.9%	3.2%

In 2023, we adjusted costs of EUR -4.1m related to the Technology migration, of which only EUR -0.2m had cash impact

Issued share capital

Share Information as at 31 December 2023

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	801,321

Stock Option Programs as at 31 December 2023

Program	# of options outstanding	Weighted average exercise price (in EUR)
LTIP 2023(1)	478,330	11.07
ECP 2022	271,896	1.00
VSOPs(2)	683,125	2.89(2)
LTIP 2019	1,828,800	19.30
LTIP 2016	96,450	0.01
Other	749,375	11.31
Total	4,107,975	12.49

(1) Assumes 100% performance achievement, final number can only be determined after 3-year performance period; exercisable earliest 4 years after grant date

(2) VSOPs are virtual, cash-settled option programs with an average cap of EUR 24.30

Note: All figures unaudited. Stock option programs are categorised as granted

Investor Relations Contact

Teresa Fischer Perez-Lozao Director Corporate Finance

[email protected]

Events

7 May 2024 Publication of first quarter results

14 May 2024 Frühjahreskonferenz Equity Forum

19 June 2024 Annual General Meeting

AI Terminal

Westwing Group SE

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