windeln.de SE — Investor Presentation 2021

May 27, 2021

First Quarter 2021 Results

May 27, 2021

Disclaimer

This document and its related communication ("Presentation") have been issued by windeln.de SE and its subsidiaries ( "Company") and do not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company in the U.S.A. or in any other country, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. Nothing in this Presentation constitutes tax, legal or accounting advice; investors and prospective investors should seek such advice from their own advisors. Third parties whose data is cited herein are neither registered broker-dealers nor financial advisors and the use of any market research data does not constitute financial advice or recommendations. Securities may not be offered or sold in the U.S.A. absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended; neither this Presentation nor any copy of it may be taken or transmitted or distributed, directly or indirectly, to the U.S.A., its territories or possessions or to any US person.

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This Presentation may include supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation or as alternatives to measures of the Company's net assets and financial positions or results of operations as presented in accordance with IFRS in its consolidated financial statements. Other companies that report or describe similarly titled financial measures may calculate them differently.

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Financial summary Q1 2021

• Revenues from continuing operations decreased by EUR 0.3m or 2% compared to the same period of the previous year (Q1 2021: EUR 14.6m / Q1 2020: EUR 14.9m).
• − In the first quarter of 2020, revenues included a VAT refund of 0.8 EURm. Adjusted for this effect, revenue increased by 3% compared to the same period of the previous year.
• − In Europe, the decrease in revenues is mainly due to the relocation of the Group's main warehouse, causing a limited availability of certain products in March 2021.
• − Revenue in China of EUR 10.2m is at the same level as the same period last year.
• − In March of the previous year, first effects from COVID-19-related increase in e-commerce business due to lockdowns were recognized in Europe and China.
• Adj. EBIT from continuing operations declined from EUR -2.4m to EUR -3.5m year-over-year.
• − In the previous year's quarter, EBIT was positively affected by the VAT refund, adding 0.6m to the previous year EBIT as a one-off effect.
• − A further impact in Q1 2021 was the set-up of a new office in China that led to increased personnel expenditures. Recruitment started in Q2 2020, meaning that Q1 2020 was not affected by higher personnel costs from this measure.
• Liquidity decreased over the first three months to EUR 5.0m on March 31, 2021 (Dec. 31, 2020: EUR 8.5m)
• − Main reasons: Net loss for the period increased by EUR 0.9m to EUR 4.1m due to EUR 0.6m positive effect from VAT refund in Q1 2020 and personnel costs related with the team set-up in China. Furthermore, the Group built up additional net working capital of EUR 0.7m.
• − Successfully executed capital increase in March 2021 resulted in a net cash inflow of EUR 1.4m.
• Financial targets for full year 2021 confirmed: Strong revenue growth and strong EBIT improvement yoy; adj. break-even target for full year 2022.

China: Stable revenue year-over-year

• Q1 2020 included VAT refund of 0.8 EURm

• Without consideration of VAT refund:
• Revenue increased by 0.8m
• Contribution Margin decreased by 0.2m
• windeln.de launched its own WeChat Mini Program in Q1 2021
• Messenger app WeChat is used by more than 900 million users in China
• Shopping platform is directly linked to the messenger app WeChat (App in App)
• Through the WeChat Mini Program, the group mainly sells baby food, drugstore items and toys.

Operating contribution China

in EUR million; In % of revenues, including VAT refund

Europe cont.

Europe: Limited availability of certain products due to warehouse relocation slows down revenue development

• Relocation of the Group's main warehouse to Halle/Saale began during Q1 2021

• Inbound from suppliers were relocated to the new warehouse and the migration of existing stock from the previous warehouse started in March
• Outbound of orders for the German and Swiss webshops went live at the new location at the beginning of Q2 2021
• Absolute Operating contribution broadly at previous year's level

Operating contribution Europe cont.

in EUR million; in % of revenues

Strategic Projects

We are working on key projects to strengthen our profitability and to further scale the business

• IT shop outsourcing
• Relocation of German warehouse
• Evaluating sale of Bebitus

• Building capacity and competence in China

• Enhancement of business model (export from China)

• Launch of further platforms in China
• Evaluation funding of net working capital
• Developing a new corporate identity

Revenue development Q1 year over year

Q1 Revenues year over year

Group Profitability

Sales mix affects margin; previous year's quarter influenced by positive one-off effect (VAT refund)

EUR million % of revenues continuing operations	Q1
	2020	2021
Revenues	14.9	14.6
Gross profit	26.1%	16.1%
Fulfilment costs1	(11.0)%	(8.7)%
Marketing costs2	(4.3)%	(3.6)%
Operating contribution	1.6	0.6
Operating contr. margin	10.8%	3.8%
Adj. Other SG&A3	(4.0)	(4.0)
Adj. Other SG&A3	(27.0)%	(27.4)%
Adj. EBIT	(2.4)	(3.5)
Adj. EBIT	(16.3)%	(23.6)%

Q1 2020 incl. EUR 0.8m positive effect from VAT refund; adjusted for this effect, revenue growth of 3% achieved y-o-y

4pp of the decline in Gross Profit and Operating Contribution Margin is due to the VAT refund in the previous year

In addition, the percentage of deliveries from the local Chinese warehouses has increased, which leads to less Gross Profit, but more favorable fulfilment costs than for the direct delivery from Germany to Chinese customers

Q1 2020 incl. EUR 0.6m positive effect from VAT refund; adjusted for this effect EBIT decreased by EUR 0.4m

In addition, the establishment of the new Team China led to increased costs in order to increase growth in this strategically most important region

Segments

Revenue broadly stable, margins impacted by sales mix

		Q1
	EUR million % of revenues	2020	2021	Comments on 2021/Q1
	Europe (cont.)	4.7	4.4	Limited availability of certain products due to warehouse relocation slows down revenue development
Revenues (EUR m)	China	10.2	10.2	Q1 2020 incl. EUR 0.8m positive effect
	excl. VAT refund	9.4	10.2	from VAT refund; adjusted for this effect, revenue growth
	Total Continued	14.9	14.6	in China of 9% achieved y-o-y
Operating Contribution (EUR m; % of revenues)	Europe (cont.)	(0.2)	(0.3)	Limited availability due to warehouse
	Europe (cont.)	(4.9)%	(6.7)%	move leading to less sale of high margin products
	China	1.8	0.9	Higher business volume with
	excl. VAT refund	1.0	0.8	intermediaries and business customers with less Operating
	China	18.0%	8.3%	Contribution, but also less Other SG&A costs
	Total Continued	1.6	0.6
	Total Continued	10.8%	3.8%

Inventory and net working capital increased over Q1 2021

Note:

Net Working Capital (NWC) defined as inventories, prepayments, trade receivables, accrued advertising subsidies, vendors with credit balance, net VAT assets/liabilities minus trade payables and deferred revenues.

Numbers including Bebitus; without remeasurement according to IFRS 5

Outlook

Outlook 2021

	2021 Target
Revenue	• Very strong increase yoy
Adj. EBIT	• Very strong improvement • Adj. EBIT break-even target for full year 2022
Operating CF	• Improved cash conversion cycle for Chinese business
Financing CF	• Potential Further capital increase post annual shareholder meeting (AGM)

Thank you and questions

Appendix

Shares & Shareholder Structure

Current Shareholder Structure

May 2021

Disclaimer: The shareholder structure pictured above is based on the published voting rights announcements. windeln.de SE assumes no responsibility for the correctness, completeness or currentness of the figures. Total number of shares: 12,080,280 Free Float (> 3 %): 16.3 % ISINs: DE000WNDL201 und DE000WNDL128

Key performance indicators quarter over quarter from continuing operations

Excl. pannolini, Feedo and Bebitus	Q3' 19	Q4'19	Q1'20	Q2'20	Q3'20	Q4'20	Q1'21
Site Visits (in thousand) ¹ 4	6,672	6,130	4,299	4,670	5,572	6,187	3,724
Mobile Visit Share (in % of Site Visits) 2	74.2%	86.3%	84.1%	82.8%	89.2%	90.2%	87.3%
Mobile Orders (in % of Number of Orders) 3	61.7%	59.0%	59.5%	63.3%	64.9%	66.3%	69.0%
Active Customers (in thousand) 4	329	305	299	297	282	283	282
Number of Orders (in thousand) 5	146	138	124	113	106	139	115
Average Orders per Active Customer (in number of Orders) 6	2.0	2.1	1.8	1.8	1.7	1.7	1.7
Orders from Repeat Customers (in thousand) 7	105	101	85	74	69	87	71
Share of Repeat Customer Orders (in % of Number of Orders) 7	72.59%	72.08%	70.96%	68.91%	67.62%	65.41%	63.78%
Gross Order Intake (in kEUR) 8	12,561	13,346	11,597	9,899	8,677	12,217	9,466
Average Order Value (in EUR) 9	86.10	96.79	93.38	87.55	82.23	87,96	82.08
Returns (in % of Gross Revenues from orders) 10	2.9%	2.2%	4.6%	1.6%	2.5%	2,0%	2.3%

Definitions of key performance indicators

• 1) We define site visits as the number of series of page requests from the same device and source in the measurement period and include visits to our online magazine. A visit is considered ended when no requests have been recorded in more than 30 minutes. The number of site visits depends on a number of factors including the availability of the offered products, the effectiveness of our marketing campaigns and the popularity of our online shops. Measured by Google Analytics.
• 2) We define mobile visit share (as % of site visits) as the number of visits via mobile devices (smartphones and tablets) to our mobile optimized websites and mobile apps divided by the total number of site visits in the measurement period. Site visits of our online magazine are fully excluded since Q3 2020. Measured by Google Analytics.
• 3) We define mobile orders (as % of number of orders) as the number of orders via mobile devices to our mobile optimized websites and mobile apps divided by the total number of orders in the measurement period. Since Q1 2017, orders from China are included. Measured by Google Analytics.
• 4) We define active customers as the number of unique customers placing at least one order in one of our shops in the 12 months preceding the end of the measurement period, irrespective of returns..
• 5) We define number of orders as the number of customer orders placed in the measurement period irrespective of returns. An order is counted on the day the customer places the order. Orders placed and orders delivered may differ due to orders that are in transit at the end of the measurement period or have been cancelled. Every order which has been placed, but for which the products in the order have not been shipped (e. g., the products are not available or the customer cancels the order), is considered ''cancelled''. Cancellations are deducted from the number of orders.
• 6) We define average orders per active customer as number of orders divided by the number of active customers in the last 12 months.
• 7) We define orders from repeat customers as the number of orders from customers who have placed at least one previous order, irrespective of returns. The share of repeat customer orders represents the number of orders from repeat customers in the last twelve months divided by the number of orders in the last twelve months.
• 8) We define gross order intake as the aggregate Euro amount of customer orders placed in the measurement period minus cancellations. The Euro amount includes value added tax and excludes marketing rebates.
• 9) We define average order value as gross order intake divided by the number of orders in the measurement period..
• 10) We define returns (as % of gross revenues from orders) as the returned amount in Euro divided by gross revenues from orders in the measurement period. Since Q2 2016 including Bebitus returns. Gross revenues from orders are defined as the total aggregated Euro amount spent by our customers minus cancellations but irrespective of returns. The Euro amount does not include value added tax

Note: Adjusted continuing operations shown (i.e. excluding discontinued operation Bebitus).

• 1 Fulfilment costs consist of logistics and warehouse rental expenses which are recognized within selling and distribution expenses in the consolidated statement of profit and loss
• 2 Marketing costs mainly consist of advertising expenses, including search engine marketing, online display and other marketing channel expenses, as well as costs for the marketing tools of the Group.
• 3 Other selling, general and administration expenses (other SG&A expenses) consist of selling and distribution expenses, excluding marketing costs and fulfilment costs, and administrative expenses as well as other operating income and expenses. Adjusted other SG&A expenses exclude expenses from share-based compensation, reorganization measures, de-consolidation, the warehouse move, impairments of purchased intangible assets (if applicable in the reporting period)

Income statement Q1 2021

kEUR	Q1 2020	Q1 2021
Revenues	14,929	14,644
Cost of sales	-11,037	-12,284
Gross profit	3,892	2,360
% margin	26.1%	16.1%
Selling and distribution expenses	-4,911	-4,139
Administrative expenses	-1,519	-1,676
Other operating income	365	60
Other operating expenses	-57	-27
EBIT	-2,230	-3,422
% margin	-14.9%	-23.4%
Financial result	-15	-27
EBT	-2,245	-3,449
% margin	-15.0%	-23.6%
Income taxes	-2	-2
Profit or loss from continuing operations	-2,247	-3,451
% margin	-21.3%	-27.7%
Profit or loss after taxes from discontinued operations	-934	-606
Profit or loss for the period	-3,181	-4,057
EBIT	-2,230	-3,422
Effects of deconsolidation	-207	0
Share-based compensation	7	-39
Adjusted EBIT	-2,430	-3,461
% margin	-16.3%	-23.6%

Bridge to adjusted EBIT: Only minor effect in the amount of EUR -39k from share-based compensation in Q1 2021

	Q1
EUR million % of revenues	Q1 2020	Q1 2021
Reported EBIT	(2.2)	(3.4)
Reported EBIT	(14.9)%	(23.4)%
Effects of deconsolidation	(0.2)	-
Share-based compensation	0.0	(0.0)
Adjusted EBIT	(2.4)	(3.5)
Adjusted EBIT	(16.3)%	(23.6)%

Balance sheet March 31, 2021

			Total equity & liabilities	21,043	18,705
Total assets	21,043	18,705	Total current liabilities	9,102	9,577
Assets held for sale	1,089	1,044	Miscellaneous current liabilities2	2,661	2,321
Total current assets	16,317	14,279	Deferred revenue	2,210	1,490
Cash and cash equivalents	8,530	5,010	Trade payables	3,490	4,997
Miscellaneous other current assets1	2,555	2,750	Financial liabilities	603	621
Trade receivables	718	576	Other provisions	138	148
Prepayments	435	37	Total non-current liabilities	1,738	1,675
Inventories	4,079	5,906
Total non-current assets	3,637	3,382	Total equity	10,203	7,453
Deferred tax assets	6	6	Cumulated other comprehensive income	-11	-8
Other non-financial assets	121	114	Accumulated loss	-174,482	-178,539
Other financial assets	108	108	Share premium	173,714	173,920
Fixed assets	1,385	1,292	Issued capital	10,982	12,080
Intangible assets	2,017	1,862
kEUR	December 31, 2020	March 31, 2021	kEUR	December 31, 2020	March 31, 2021

1 Miscellaneous other current assets include income tax receivables, other current financial assets and other current non-financial assets.

2 Miscellaneous other current liabilities include income tax payables, other current financial liabilities and other current non-financial liabilities.