Westwing Group Se · XETR:WEW
Westwing — Q3 2021 Earnings Presentation
33 slides from Westwing's earnings presentation, Nov 11, 2021
Slide 1: Q3 2021 Results
Q3 2021 Results Munich, November 11, 2021
Slide 2: Disclaimer | Forward looking statements
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 re
Slide 3: Our mission
Our mission To inspire and make every home a beautiful home. 3
Slide 4: Agenda
AGENDA Business Update Financial Update Summary & Q&A Appendix 4
Slide 5: Business Update
Business Update 5
Slide 6: Summary
Summary GROWTH EUR 103m Revenue, 5% growth on top of strong baseline from Q3 last year Q3 2021 PROFITABILITY EUR -0.4m Adj. EBITDA at -0.3% Adj. EBITDA margin RESULTS YTD Free Cash Flow at EUR -0.5m driven mainly by seasonality effects and investments into FREE CASH FLOW inventory to mitigate agains
Slide 7: Westwing turns 10: A Growth Story
Westwing turns 10: A Growth Story GMV (in EUR m) 595 502 310 291 252 230 194 152 86 29 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 LTM Note: Unaudited. 7
Slide 8: Topline level shift confirmed, continued growth
Topline level shift confirmed, continued growth on top of last year’s extraordinary baseline GMV (in EUR m) Active Customers LTM (in k) +66% +89% +5% +36% 118 1,750 113 1,284 71 926 Q3 2019 Q3 2020 Q3 2021 Q3 2019 Q3 2020 Q3 2021 Note: Unaudited. 8
Slide 9: Global Supply Chain situation remains challenging
Global Supply Chain situation remains challenging with temporal impact on profitability Current status • Global cargo disruptions cause continued increase of sea freight rates and capacity issues; challenges expected to remain at least into H1 2022 • Supply volatility caused bulk delivery peaks from
Slide 10: Tremendous growth in Westwing Collection
Tremendous growth in Westwing Collection to an all time high of 38% of Group GMV in Q3 2021 Strong increase in Westwing Collection share in Q3 2021 towards the 50% strategic target Westwing Collection share (as % of GMV) 50% • Strong increase in Westwing Collection share, resulting from Low product
Slide 11: Financial Update
Financial Update 11
Slide 12: Revenue growth of 5% in Q3 2021
Revenue growth of 5% in Q3 2021 on top of last year’s extraordinary baseline Group Revenue (in EUR m) DACH Segment Revenue (in EUR m) +35% +39% 373 +52% 210 152 +59% +4% +55% 99 34 54 56 277 56% YTD 2019 YTD 2020 YTD 2021 Q3 2019 Q1 2020 Q3 2021 179 55% +66% +5% International Segment Revenue (in EUR
Slide 13: Income statement details
Income statement details Delta Delta YTD 2019 YTD 2020 YTD 2021 Q3 2019 Q3 2020 Q3 2021 (in % of revenue) 20 vs. 21 20 vs. 21 Higher sea freight rates Gross margin 43.3% 48.3% 49.8% +1.4%pts 44.3% 49.2% 49.0% -0.2%pts compensated by increased Westwing Collection share Rise in warehousing costs Fulfi
Slide 14: Group profitability at -0.3% Adj. EBITDA margin
Group profitability at -0.3% Adj. EBITDA margin in Q3 2021 as a result of growth investments as well as temporary supply chain disruptions and seasonal effects Group Adj. EBITDA (in % of Revenue) DACH Segment Adj. EBITDA (in % of Revenue) 16.4% 13.8% 13.4% EUR -13m EUR 24m EUR 30m EUR -4m EUR 11m EU
Slide 15: Net Working Capital positive at EUR 6m
Net Working Capital positive at EUR 6m due to higher inventory levels during times of stressed supply chains Net Working Capital Capex ratio (in EUR m and % of LTM revenue) (in EUR m and as % of revenue) EUR -1m EUR -11m EUR 6m EUR 3m EUR 2m EUR 4m 1.1% 4.4% 3.6% -0.3% 1.9% Increase driven by invest
Slide 16: Free Cash Flow for YTD 2021 driven by temporal investments
Free Cash Flow for YTD 2021 driven by temporal investments into working capital as well as tax payments YTD Free Cash Flow bridge (in EUR m) 30.0 -9.7 Temporary increase driven by seasonality effects and investments -9.2 into inventory to -2.1 mitigate against supply chain disruptions -9.5 -0.5 Adj.
Slide 17: Strong Net Cash position of EUR 97m
Strong Net Cash position of EUR 97m YTD Net Cash bridge (in EUR m) 104.9 97.2 -0.5 -0.3 -6.8 December 31 Free Cash Flow FX Effects Financing Cash Flow September 30 2020 2021 Note: Unaudited. Free Cash Flow defined as the sum of Operating Cash Flow and Investing Cash Flow. 17
Slide 18: Guidance for Full Year 2021
Guidance for Full Year 2021 EUR 510-550m Revenue • Revenue guidance for FY 2021 confirmed 18-27% growth EUR 42-55m • Profitability expected at lower-end of guidance range due to ongoing supply chain disruptions € Adj. EBITDA • A risk of profitability guidance revision for FY 8-10% margin 2021 remain
Slide 19: Targets 2024/25
Targets 2024/25: European Home & Living eCommerce consumer love brand at EUR 1 billion revenue Growth Growth Become a EUR 1 billion company and increase market share from c. 0.4% to c. 0.8% Brand Be the most desirable TARGETS consumer Home & Living Profitability brand for Home Enthusiasts Highly pro
Slide 20: Prioritization of growth investments in 2022
Prioritization of growth investments in 2022 to lay the foundation for our 2024/25 target of EUR 1bn in Revenue Indicative view on 2022 (1) Targets 2024/25 Long-term target H1 2022: Lower growth (similar growth rate to H2 2021 as still with baseline effects) Outgrow eCommerce Revenue EUR 1bn H2 2022
Slide 21: Summary and Q&A
Summary and Q&A 21
Slide 22: Q3 2021 Summary Investment highlights
Q3 2021 Summary Investment highlights The opportunity is massive Huge Home & Living market of EUR 120bn very early in eCommerce with exiting growth momentum based on a dynamic online adoption LTM Revenue: EUR 529m at 45% growth yoy Customer loyalty at the core The differentiating creative and inspir
Slide 23: Q&A
Q&A 23
Slide 24: Appendix
Appendix 24
Slide 25: Growing Active Customer base while expanding share of wallet
Growing Active Customer base while expanding share of wallet Active Customers and GMV per Active Customer (in #k and EUR) GMV per Active Active Customers (k) Customer LTM (EUR) 1,800 400 1,600 1,400 300 1,200 1,000 200 800 600 400 100 200 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 26: Loyalty-driven business model results in exceptional repeat order rates
Loyalty-driven business model results in exceptional repeat order rates Orders and repeat order share (in #k and % of total orders) Repeat order share Number of orders (#k) (as % of total orders) 5,000 90% 4,000 60% 3,000 2,000 30% 1,000 0 0% 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021 LTM % sha
Slide 27: KPI overview
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 Westwing Collection share in % of GMV 21% 22% 27% 25% 25% 22% 26% 28% 31% 32% 38% Active customers in k 927 909 926 949 986 1,178 1,284 1,529 1,720 1,730 1,750 Number of orders in k 5
Slide 28: Consolidated income statement
Consolidated income statement EUR m, in % of revenue, unaudited YTD 2020 YTD 2021 Q3 2020 Q3 2021 Revenue 277 373 99 103 Cost of Sales -143 -188 -50 -53 Gross profit 134 186 48 51 Fulfilment expenses -57 -77 -20 -23 Marketing expenses -20 -35 -8 -12 General and administrative expenses -47 -63 -16 -2
Slide 29: Adjusted income statement
Adjusted income statement EUR m, in % of revenue, unaudited YTD 2020 YTD 2021 Q3 2020 Q3 2021 Revenue 277 373 99 103 Revenue Growth yoy 55.0% 34.7% 65.9% 4.7% Cost of Sales -143 -188 -50 -53 Gross Profit 134 186 48 51 Gross Margin 48.3% 49.8% 49.2% 49.0% Fulfillment expenses -57 -77 -20 -23 Contribu
Slide 30: Segment reporting
Segment reporting DACH in EUR m, unaudited YTD 2020 YTD 2021 Q3 2020 Q3 2021 Revenue 152 210 54 56 yoy Growth (in %) 52% 39% 59% 4% Adj. EBITDA 21 28 9 2 Adj. EBITDA Margin % 13.8% 13.4% 16.4% 4.3% International in EUR m, unaudited YTD 2020 YTD 2021 Q3 2020 Q3 2021 Revenue 126 163 44 47 yoy Growth (
Slide 31: Net Working Capital Bridge
Net Working Capital Bridge Net Working Capital (NWC) breakdown as of September 30, 2021 (EUR m) 12.8 15.5 48.3 -50.5 5.7 -20.4 Inventories Prepayments Trade & other Trade & other Customer NWC on inventories receivables payables prepayments Note: Unaudited. 31
Slide 32: Issued share capital
Issued share capital Share Information as of September 30, 2021 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 Treasu
Slide 33: Upcoming Events
Upcoming Events Date Event November 23, 2021 Deutsches Eigenkapitalforum Forum, Virtual January 10, 2022 Berenberg: German Corporate Conference USA 2022, New York March 14, 2022 Berenberg: EU Opportunities Conference 2022, London March 29, 2022 Publication of the Annual Report 2021 March 30, 2022 Je