windeln.de SE — Investor Presentation 2021

Apr 1, 2021

windeln.de SE Company Presentation

April 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.

This Presentation has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained herein or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no liability whatsoever is accepted by the Company or its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. This Presentation is subject to amendment, revision and updating. Certain statements and opinions in this Presentation are forward-looking, which reflect the Company's or its management's expectations about future events. Forward-looking statements involve many risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied herein or could adversely affect the outcome and financial effects of the plans and events described herein and may include (without limitation): macroeconomic conditions; behavior of suppliers, competitors and other market participants; inadequate performance with regard to integration of acquired businesses, anticipated cost savings and productivity gains, management of fulfillment centers, hazardous material/ conditions in private label production or within the supply chain, data security or market knowledge; external fraud; actions of government regulators or administrators; strike; or other factors described in the "risk" section of the Company's annual report. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forwardlooking statements.

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.

By attending, reviewing, accepting or consulting this Presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice.

Investment Highlights

windeln.de is one of the leading online retailers for baby, children and family products in Europe and China

Vision

Our vision

Become the leading e-tailer for young families in the German-speaking region with strong cross-border e-commerce to China…

…building on educational and emotional content guiding parents through this exciting and lifechanging experience of having a family.

We operate a total of 7 online shops in Europe and in China

• ✓ https://windeln.jd.hk
• ✓ WeChat Mini Program

Strong management board

Members of the Management Board

Matthias Peuckert

Responsible for Marketing, Category Management (DACH, Bebitus and China), IT, Pricing, Private Label and Product Data

Sean Wei

Responsible for New Business China, based in Beijing

China

The Chinese market is highly attractive; we focus on the categories with the highest penetration of CBEC to China

Cross-Border E-Commerce in China 2020 USD 260 Billionen +31% yoy

E-Commerce baby & toddler market China in 2020: EUR 98bn +9% CAGR 2020-2025

Strong development in China Cross Border Ecommerce (CBEC) retail sales (import)

windeln.de targets the most popular product categories in China CBEC

Share of total market 2019

Cosmetics & Beauty	41%
Personal care	38%
Nutrition & health care	35%
Food & Beverage	32%
Mom & Baby products	23%

Source: Ecommerce Research Center of China, 2020E company estimates https://www.chinadaily.com.cn/a/202007/16/WS5f0fca86a310834817259e76.html iiMedia Research

We have a strong expertise selling products in cross-border e-commerce (CBEC) to Chinese customers

China Business

We operate in China through several channels to fulfill demand in the best way possible

China

We have an excellent logistics network and internal knowhow to fulfill demand for CBEC products to China

Direct delivery to the Tmall Global warehouse near Frankfurt/German

3 local bonded warehouses in mainland China for our shops windeln.com.cn, Tmall Global and JD.com

China Business

We therefore put a strong focus on our attractive Chinese business, which accounts for a large share of revenues

Significant revenue growth...

Strategy for DACH focused on developing into the leading online retailer for family products

Restructuring

Since 2018 several efficiency and profitability measures were executed

Ongoing projects	Topic	Update
Outsourcing of IT Shop Platform	Outsourcing of self-developed IT shop platform to external provider to lower maintenance costs and have better flexibility	• Tmall and CH shop live, outsourcing of other shops ongoing
German Warehouse Move	Contract with new warehouse service provider to reduce costs, improve process and packaging quality and shorten delivery times to customers	• Finalization of warehouse move in first half year 2021
New Channels in China	Expand number of sales channels in China	• Launch of new channels and cooperations being worked on

Revenue development full year and Q4 2020

Group Profitability

Financials FY 2020 on Group level positive; Q4 2020 below management expectations

EUR million % of revenues	Full Year		Q4
(excl. Bebitus)	FY 2019	FY 2020	Q4 2019
Revenues	70.1	76.0	20.3
Gross profit1	25.6%	21.3%	28.1%
Fulfilment costs2	(13.2)%	(7.7)%	(10.1)%
Marketing costs3	(4.0)%	(3.4)%	(3.3)%
Operating contr.	5.9	7.8	3.0
Operating contr.	8.4%	10.2%	14.8%
Other SG&A4	(16.2)	(16.4)	(4.0)
Other SG&A4	(23.1)%	(21.5)%	(19.8)%
Adj. EBIT5	(10.3)	(8.6)	(1.0)
Adj. EBIT5	(14.7)%	(11.3)%	(5.0)%
Total cash avail.	8.4	8.5	8.4

Q4 2019	Q4 2020
20.3	17.3
28.1%	17.4%
(10.1)%	(8.4)%
(3.3)%	(5.4)%
3.0	0.6
14.8%	3.5%
(4.0)	(3.7)
(19.8)%	(21.4)%
(1.0)	(3.1)
(5.0)%	(17.9)%

Comments on FY2020/Q4 Growth yoy; Q4 below previous year Gross profit lower due to higher share of B2B revenues; therefore also fulfilment costs lower Yoy lower due to higher B2B revenue share; Q4 higher due to promotions Includes positive impact from China VAT refund Higher in Q4 due to build up of China team Improved yoy; qoq not improved due to weaker China quarter

Capital increase in Q4 with gross proceeds of EUR 3.4m

Only few reconciliation items from reported EBIT to adjusted EBIT full year and Q4 2020

		Full year	Q4
EUR million % of revenues	FY 2019	FY 2020	Q4 2019	Q4 2020
Reported EBIT	(11.1)	(8.7)	(1.7)	(4.0)
Reported EBIT	(15.8)%	(11.4)%	(8.6)%	(23.2)%
Effects of deconsolidation	0.0	(0.2)	0.0	0.0
Share-based compensation	0.0	0.1	0.0	1.0
Costs of reorganization	0.0	0.0	0.0	0.0
Costs of acquisitions	0.0	0.0	(0.0)	0.0
Impairments/remeasurements	0.6	0.0	0.6	0.0
Costs of warehouse move	0.0	0.3	0.0	0.0
Adjusted EBIT	(10.3)	(8.6)	(1.0)	(3.1)
Adjusted EBIT	(14.7)%	(11.3)%	(5.0)%	(17.9)%

Segments

Continuous improvement in European business; lower contribution from Chinese business in Q4 2020

		Full year		Q4
	EUR million % of revenues	FY 2019	FY 2020	Q4 2019	Q4 2020	Comments on 2020/Q4
	Europe (DACH)	18.8	20.0	4.8	4.9	• Revenue growth in DACH yoy and qoq
Revenues (EUR m)	China	51.3	56.0	15.6	12.4	• Revenue growth China yoy;
	excl. VAT refund	49.6	52.1	13.9	12.4	Q4 below targets
	Total Continued	70.1	76.1	20.3	17.3
Operating Contribution (EUR m; % of revenues)	Europe (DACH)	(1.7)	(0.4)	(0.6)	(0.0)	• Profitability improvement DACH
	Europe (DACH)	(9.1)%	(1.8)%	(13.0)%	(0.8)%	yoy and qoq
	China	7.6	8.2	3.6	0.6
	China	14.8%	14.6%	23.3%	5.2%	• Profitability improvement China yoy (incl. VAT refund);
	excl. VAT refund	6.2	5.3	2.2	0.5	Q4 below targets
	Total Continued	5.9	7.8	3.0	0.6
	Total Continued	8.4%	10.2%	14.8%	3.5%	19

Positive development of Bebitus for full year and Q4 2020

	Full year		Q4
EUR million % of revenues	FY 2019	FY 2020	Q4 2019	Q4 2020	Comments
Revenues (EUR)	12.2	12.6	2.7	2.9	Revenue growth yoy and qoq
Contribution Margin (EUR)	(0.1)	0.3	(0.1)	0.1	Positive contribution margin full year
Contribution Margin (%)	(1.0)%	2.7%	XX (2.1)%	3.1%	and Q4 2020
Adj. EBIT (EUR)*	(3.5)	(2.7)	(0.8)	(0.7)	EBIT improvement yoy and qoq
Adj. EBIT(%)	(28.6)%	(21.6)%	(28.9)%	(23.4)%

Inventory and net working capital further lowered in Q4

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

Liquidity

Liquidity position strengthened through successful capital increases in October 2020 and March 2021

Outlook

Outlook 2021

	2019 Actuals	2020 Actuals	2021 Target
Revenue (cont. bus.)	• EUR 70.1m	• EUR 76.0m (+8.4%)	• Very strong increase yoy
Adj. EBIT (cont. bus.)	• EUR -10.3m (-14.7% margin)	• EUR -8.6m (-11.3% margin)	• Very strong improvement • Adj. EBIT break-even target for full year 2022
Net Working Capital (Dec)	• EUR 5.4m	• EUR 2.2m	• Improve cash conversion cycle for Chinese business
Cash	• EUR 8.4m	• EUR 8.5m	• Further capital increase planned post annual shareholder meeting (AGM) mid of May

Appendix

Current Shareholder Structure

Basic share data

WKN	WNDL20 / WNDL12
ISIN	DE000WNDL201 DE000WNDL128
Market place	Frankfurt Stock Exchange / Stuttgart Stock Exchange
Type of share	No-par value bearer shares
Initial listing	May 6, 2015
Designated Sponsor	Pareto Securities
Number of shares	12,080,280

Supervisory Board members

Clemens Jakopitsch (Chairman)

• Christian Reitermann
• Weijian Miao
• Xiao Jing Yu
• Yafang Tang
• Maurice Reimer

As of 25 March 2021

Disclaimer: The shareholder structure pictured above is based on the number of shares in voting rights announcements published most recently and company information.

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%

ISINs: DE000WNDL201 and DE000WNDL128

Key performance indicators quarter over quarter from continuing operations (excl. Bebitus)

Excl. pannolini, Feedo and Bebitus	Q2 '18	Q3 '18	Q4'18	Q1' 19	Q2 ' 19	Q3' 19	Q4'19	Q1'20	Q2'20	Q3'20	Q4'20
Site Visits (in thousand) ¹ 4	9,411	7,681	9,869	6,787	6,157	6,672	6,130	4,299	4,670	5,572	6,187
Mobile Visit Share (in % of Site Visits) 2	82.7%	74.7%	83.5%	80.1%	80.8%	74.2%	86.3%	84.1%	82.8%	89.2%	90.2%
Mobile Orders (in % of Number of Orders) 3	56.6%	55.2%	60.9%	61.2%	59.9%	61.7%	59.0%	59.5%	63.3%	64.9%	66.3%
Active Customers (in thousand) 4	334	329	305	355	334	329	305	299	297	282	283
Number of Orders (in thousand) 5	203	176	209	150	138	146	138	124	113	106	139
Average Orders per Active Customer (in number of Orders) 6	2.2	2.1	2.1	2.1	2.2	2.0	2.1	1.8	1.8	1.7	1.7
Orders from Repeat Customers (in thousand) 7	233	192	195	110	102	105	101	85	74	69	87
Share of Repeat Customer Orders (in % of Number of Orders) 7	74.91%	79.76%	82.56%	74.82%	73.84%	72.59%	72.08%	70.96%	68.91%	67.62%	65.41%
Gross Order Intake (in kEUR) 8	18,049	15,696	18,703	13,399	12,899	12,561	13,346	11,597	9,899	8,677	12,217
Average Order Value (in EUR) 9	88.73	89.01	89.55	89.59	93.78	86.10	96.79	93.38	87.55	82.23	87,96
Returns (in % of Gross Revenues from orders) 10	3.9%	4.3%	3.2%	3.4%	2.5%	2.9%	2.2%	4.6%	1.6%	2.5%	2,0%

KPIs

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. Visits to our online magazine are included until mid of Q3 2020. 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 products we offer, the level and 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 excluded. Additionally, we excluded visits from China until end of 2016, because the most common online translation services on which most of our customers who order for delivery to China rely to translate our website content are not able to do so from their mobile devices. Therefore, only few Chinese customers ordered via their mobile devices. Due to the launch of our website in Chinese language in December 2016, site visits from China are included since Q1 2017. 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.Until Q1 2017 returns were calculated in relation to the net merchandise value. As the gross revenues from orders do not exclude returns and include all marketing rebatesdiscounts, it is more reasonable to use this KPI for the return rate calculation than the net merchandise value. The change of the calculation logic has no material impact on the reported return rate. The new calculation method is applied from Q2 2017 onwards.

Footnotes to page 12

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

• 1 The adjustments of gross profit relate to income expenses of the shop pannolini.it until the shops closure, and expenses for share-based compensation.
• 2 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. Fulfilment expenses incurred in the shop pannolini.it are adjusted until the shops closure.
• 3 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. Marketing expenses incurred in the shop pannolini.it are adjusted until the shops closure.
• 4 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, acquisitions, the warehouse move, impairments of purchased intangible assets (if applicable in the reporting period) and income and expenses incurred in the shop pannolini.it until the shop's closure.
• 5 Adjusted for expenses and income in connection with share-based compensation, reorganization measures, acquisitions, the warehouse move, impairments of purchased intangible assets (if applicable in the reporting period) and income and expenses of the closed shop pannolini.it.

Income statement Q4 2020

kEUR	FY 2019	FY 2020	Q4 2019	Q4 2020
Revenues	70,146	76,067	20,311	17,315
Cost of sales	-52,179	-59,883	-14,597	-14,309
Gross profit	17,967	16,184	5,714	3,006
% margin	25.6%	21.3%	28.1%	17.4%
Selling and distribution expenses	-21,707	-19,038	-5,417	-4,777
Administrative expenses	-8,000	-6,319	-2,222	-2,244
Other operating income	766	809	200	94
Other operating expenses	-118	-305	-14	-102
EBIT	-11,092	-8,669	-1,740	-4,023
% margin	-15.8%	-11.4%	-8.6%	-23.2%
Financial result	-68	-68	-14	-29
EBT	-11,160	-8,737	-1,754	-4,052
% margin	-15.9%	-11.5%	-8.6%	-23.4%
Income taxes	-7	-3	0	1
Profit or loss from continuing operations	-11,167	-8,740	-1,754	-4,051
% margin	-15.9%	-11.5%	-8.6%	-23.4%
Profit or loss after taxes from discontinued operations	-3,445	-5,008	-767	-956
Profit or loss for the period	-14,612	-13,748	-2,521	-5,007

EBIT	-11,092	-8,669	-1,740	-4,023
Effects of deconsolidation	0	-207	0	0
Share-based compensation	38	61	11	925
Reorganization	20	0	34	0
Costs of acquisitions	45	0	-3	0
Impairments/remeasurements	644	0	644	0
Costs of warehouse move	29	250	29	0
Adjusted EBIT	-10,316	-8,565	-1,026	-3,098
% margin	14.7%	-11.3%	-5.0%	-17.9%

Balance sheet December 31, 3020

kEUR	December 31, 2019	December 31, 2020	kEUR	December 31, 2019	December 31, 2020
Intangible assets	2,843	2,017
Fixed assets	631	1,385	Issued capital	2,989	10,982
Other financial assets	16	108	Share premium	172,904	173,714
Other non-financial assets	149	121	Accumulated loss	-160,734	-174,482
Deferred tax assets	2	6	Cumulated other comprehensive income	200	-11
Total non-current assets	3,641	3,637	Total equity	15,359	10,203
Inventories	7,339	4,079	Total non-current liabilities	101	1,738
Prepayments	1	435	Other provisions	288	138
Trade receivables	838	718	Financial liabilities	519	603
Miscellaneous other current assets1	4,613	2,555	Trade payables	3,639	3,490
Cash and cash equivalents	8,377	8,530	Deferred revenue	2,287	2,210
Total current assets	21,168	16,317	Miscellaneous current liabilities2	2,616	2,661
Assets held for sale	-	1,089	Total current liabilities	9,349	9,102
Total assets	24,809	21,043	Total equity & liabilities	24,809	21,043

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.

Cash flow statement Q3 2020

kEUR	FY 2019	FY 2020
Net cash flows from/used in operating activities	-11,567	-7,070
Net cash flows from/used in investing activities	257	-484
Net cash flows from/used in financing activities	-8,547	-7,714
Cash and cash equivalents at the beginning of the period	8,547	8,377
Net increase/decrease in cash and cash equivalents	-2,763	160
Cash and cash equivalents at the end of the period	8,377	8,530