Slide 1: Q3 2023 Results
Q3 2023 Results Munich, November 9, 2023
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: Agenda
AGENDA 1. Business Update 2. Financial Update 3. Investment Highlights 4. Q&A 5. Appendix 3
Slide 4: 1. Business Update
1. Business Update 4
Slide 5: Westwing returns to growth with 4th profitable quarter in a row
Westwing returns to growth with 4th profitable quarter in a row • Q3 Group GMV grew by 5% year-over-year to EUR 107m. 1 Return to growth • Home & Living market, overall and online, is likely to be in decline. • Westwing’s growth is expected to continue in Q4. • In the seasonally weaker Q3, Adj. EBIT
Slide 6: Westwing returned to growth in Q3 despite low consumer confidence
1 Westwing returned to growth in Q3 despite low consumer confidence Consumer Confidence Index in Euro area(1) Group GMV [in EUR m] -8% 0 128 0% +5% -5 118 109 109 107 102 -10 -15 -20 -25 -30 01/22 02/22 03/22 04/22 05/22 06/22 07/22 08/22 09/22 10/22 11/22 12/22 01/23 02/23 03/23 04/23 05/23 06/23 0
Slide 7: DACH Segment seems to be clearly outperforming the market
1 DACH Segment seems to be clearly outperforming the market bevh estimates for Home & Living online sales in Germany(1) Westwing’s DACH Segment Revenue [in EUR m] [in EUR m] -11% -8% -14% -5% 4,080 61 -8% 59 +4% 3,647 3,680 56 55 3,332 50 52 3,154 3,060 Q1 2022 Q1 2023 Q2 2022 Q2 2023 Q3 2022 Q3 202
Slide 8: Westwing was profitable even in seasonally weaker Q3
2 Westwing was profitable even in seasonally weaker Q3 Adj. EBITDA margin [as % of Revenue] 10% to 15% Sales growth supports bottom line +7.6%pts 4.9% 4.4% Significant improvements in 3.3% unit economics 2.5% Cost discipline -1.5% -2.3% -5.1% Long-term Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 targe
Slide 9: # of Active Customers and GMV per Active Customer grew in Q3
3 # of Active Customers and GMV per Active Customer grew in Q3 Active Customers(1) GMV per Active Customer(1) LTM [in k] [in EUR] +6% 1,486 377 1,422 +1% 355 1,320 330 340 1,262 1,252 1,262 326 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Note: All figures
Slide 10: Our customers simply love the Westwing Collection
3 Our customers simply love the Westwing Collection Westwing Collection share [as % of GMV] +4%pts 50+% 48% 44% 38% 27% 26% Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Strategic target Note: All figures unaudited. 10
Slide 11: OneWestwing initiative for a better and more intuitive customer experience is fully on track
4 OneWestwing initiative for a better and more intuitive customer experience is fully on track Test phase OneCart and OneCheckout now live in DE, AT & CH Consolidate completed back-end Technology One App share of total Shop Westwing visits Roll out webpage OneCheckout rolled out to all countries 56%
Slide 12: We've refreshed our unique premium brand with new visuals
4 We’ve refreshed our unique premium brand with new visuals 12
Slide 13: We've launched a brand awareness campaign "Live Beautiful" in Germany
4 We’ve launched a brand awareness campaign “Live Beautiful” in Germany Westwing has been investing into brand awareness since Q3 2023, which increases Marketing ratio The Company’s evolution is embodied in The Beautiful Living Company the “Live Beautiful” brand campaign 13
Slide 14: Westwing's Technology stack will become more modern and efficient with increasing use of SaaS
4 Westwing’s Technology stack will become more modern and efficient with increasing use of Software-as-a-Service (SaaS) E-Commerce Tech has changed… …and we will change our platform • Many e-Commerce processes are • Westwing will migrate from a standardized today proprietary e-Commerce platform to a
Slide 15: 2. Financial Update
2. Financial Update 15
Slide 16: Westwing posts 5% Revenue growth in Q3
Westwing posts 5% Revenue growth in Q3 Group Revenue DACH Segment Revenue [in EUR m] [in EUR m] +4% 54 56 CAGR 2019 to 2023: +12% 50 52 34 103 +5% 99 93 88 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 55% 55% 59 55% 56% International Segment Revenue +7% [in EUR m] 47 45 41 57% 39 25 Q3 2019 Q3 2020 Q3 20
Slide 17: Strong improvements in most of the P&L lines
Strong improvements in most of the P&L lines Delta Delta 9M 2019 9M 2022 9M 2023 Q3 2019 Q3 2022 Q3 2023 [as % of Revenue] 22 vs 23 22 vs 23 Strong Westwing Gross margin 43.3% 48.4% 50.3% +1.9%pts 44.3% 47.8% 50.2% +2.4%pts Collection share gains Efficiency Fulfilment ratio -24.3% -23.4% -22.0% +1.4
Slide 18: Group profitability at 4% Adj. EBITDA margin in 9M 2023
Group profitability at 4% Adj. EBITDA margin in 9M 2023 Group Adj. EBITDA DACH Segment Adj. EBITDA [as % of Revenue] [as % of Revenue] +6.5%pts 7.3% 4.9% 1.7% -1.6% 4.0% -4.2% -4.1% 2.5% 9M’19 9M’22 9M’23 Q3’19 Q3’22 Q3’23 International Segment Adj. EBITDA [as % of Revenue] -2.8% -5.1% +9.2%pts 0.2%
Slide 19: Net Working Capital improved by EUR 16m year-over-year, while CAPEX remained at a low level
Net Working Capital improved by EUR 16m year-over-year, while CAPEX remained at a low level Net Working Capital CAPEX [in EUR m] [in EUR m] -16 14 3.4 2.7 2.1 Q3 2019 Q3 2022 Q3 2023 -1 -2 Q3 2019 Q3 2022 Q3 2023 Q3 2023 includes repayment of a EUR 7m trade finance facility, which increases Net Work
Slide 20: With positive Free Cash Flow, we maintained a very strong cash position
With positive Free Cash Flow, we maintained a very strong cash position Free Cash Flow Cash and cash equivalents [in EUR m] [in EUR m] 76 3 +44 69 13 -7 -1 -3 +4 3 -1 Cash & cash Free Cash Paying Share Other Cash & cash equivalents Flow back Trade Buyback equivalents per Financing per Jun 30, Sep 30
Slide 21: FY 2023 Revenue guidance confirmed and profitability guidance raised to EUR 13m to EUR 19m
FY 2023 Revenue guidance confirmed in the upper half of the guidance range and profitability guidance raised to EUR 13m to EUR 19m FY 2022 Previous guidance FY 2023 New guidance FY 2023 as of August 10, 2023(1) as of November 6, 2023 Upper half of Upper half of Revenue EUR 431m EUR 390 to 440m EUR 3
Slide 22: 3. Investment Highlights
3. Investment Highlights 22
Slide 23: Investment Highlights of Europe's leading premium one-stop-shop for Home & Living
Investment Highlights of Investment Highlights of Europe’s Europe’s leading leading premium premiumone-stop-shop one-stop-shopfor for Home & Living The opportunity Westwing is a Westwing Proven Strong cash is massive premium love Collection business model profile & brand is a strong scalability attr
Slide 24: 4. Q&A
4. Q&A 24
Slide 25: 5. Appendix
5. Appendix 25
Slide 26: Continuously expanding share of wallet with customers
CONTINUOUSLY EXPANDING SHARE OF WALLET WITH CUSTOMERS Active Customers and average GMV per Active Customer LTM Active Customers [k] Average GMV per Active Customer LTM [EUR] 1,800 400 1,600 1,400 300 1,200 1,000 200 800 600 400 100 200 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 27: KPI overview
KPI overview Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Group KPIs Unit 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 Westwing Collection share in % of GMV 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% 44% 44% 46% 46% 48% Active Customers in k 986 1,178 1,284 1,529 1,720 1,7
Slide 28: Consolidated income statement
Consolidated income statement EUR m, in % of Revenue, unaudited 9M 2022 9M 2023 Q3 2022 Q3 2023 Revenue 302.4 297.6 88.3 92.9 Cost of Sales -156.0 -149.2 -46.1 -46.6 Gross profit 146.4 148.3 42.2 46.3 Fulfilment expenses -70.9 -64.2 -20.7 -20.1 Marketing expenses -31.4 -29.5 -8.8 -10.6 General and a
Slide 29: Adjusted income statement
Adjusted income statement EUR m, in % of Revenue, unaudited 9M 2022 9M 2023 Q3 2022 Q3 2023 Revenue 302.4 297.6 88.3 92.9 Revenue growth yoy -19.0% -1.6% -14.5% 5.2% Cost of Sales -156.0 -147.8 -46.1 -46.3 Gross Profit 146.4 149.8 42.2 46.6 Gross margin 48.4% 50.3% 47.8% 50.2% Fulfillment expenses -
Slide 30: Segment reporting
Segment reporting DACH in EUR m, unaudited 9M 2022 9M 2023 Q3 2022 Q3 2023 Revenue 168.9 162.6 49.7 51.5 yoy growth (in %) -19.7% -3.7% -11.9% 3.7% Adj. EBITDA 2.8 11.9 -0.8 2.5 Adj. EBITDA margin % 1.7% 7.3% -1.6% 4.9% International in EUR m, unaudited 9M 2022 9M 2023 Q3 2022 Q3 2023 Revenue 133.6
Slide 31: Net Working Capital
NET WORKING CAPITAL Net Working Capital breakdown as of September 30, 2023 [in EUR m] 12 7 35 -36 -19 -2 Inventories Prepayment Trade & other Trade and other Contract liabilities Net Working Capital on inventories receivables payables(1) Note: All figures unaudited. (1) Includes accruals. 31
Slide 32: Westwing is strongly focusing on sustainability along the entire value chain
Westwing is strongly focusing on sustainability along the entire value chain Focus areas of our Sustainability Strategy 2030 Make Enable our Westwing a customers to Climate and company make more Packaging energy people aspire sustainable to work for choices Sustainability Strategy Materials Supplier
Slide 33: Events
Events November 27-29, 2023 Deutsches Eigenkapitalforum Note: Dates could be still subject to change. 33
Slide 34: Slide 34