Westwing Group Se · XETR:WEW
Westwing — Q1 2022 Earnings Presentation
33 slides from Westwing's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Results
Q1 2022 Results Munich, May 11, 2022
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: To inspire and make every home a beautiful home
Our mission: To inspire and make every home a beautiful home.
Slide 4: Agenda
AGENDA • Business update • Financial update • Q&A 4
Slide 5: Business Update
Business Update
Slide 6: Summary
Summary EUR 111m revenue, down by -20% yoy due to strong baseline from previous year and a challenging GROWTH demand environment with low consumer sentiment Q1 2022 Adj. EBITDA of EUR -1.7m at -1.5% Adj. EBITDA margin driven by lower topline alongside strategic PROFITABILITY growth investments RESUL
Slide 7: Topline growth down due to extraordinarily high baselines and difficult market
Topline growth down due to extraordinarily high baselines from last year and a difficult market environment with low demand for Home & Living online Group GMV [in EUR m] CAGR 19 to 22: • Macro insecurity triggered by rising energy +19% costs, higher inflation rates and war in the -22% Ukraine negati
Slide 8: First half of 2022 still facing extremely strong baselines
First half of 2022 still facing extremely strong baselines from last year; applying 2019 seasonality on a weak Q1 2022, we return to growth in the second half of 2022 Quarterly GMV [in EUR m] Covid Impacted Quarters Indicative development based on 2019 seasonality(1) Q1-2019 Q2-2019 Q3-2019 Q4-2019
Slide 9: Active Customers down by 7% yoy vs. exceptionally high Q1 2021
Active Customers down by 7% yoy vs. the exceptionally high level of Q1 2021; up by 61% compared to Q1 2020 Active Customers LTM [in k] +61% -7% • Consumer sentiment in Q1 2022 weighing on 1,720 demand for Home & Living 1,593 • Lower demand for Home & Living is causing higher churn as well as lower n
Slide 10: High-margin Westwing Collection on track towards 50% strategic target share
Our high-margin Westwing Collection continues to be on track towards the 50% strategic target share Westwing Collection share [as % of GMV] Highlights 50% • 6%pts improvement in Q1 2022 vs. Q1 2021 in Westwing Collection share (as % of GMV) 37% • Expansion of Westwing Collection into further 31% cat
Slide 11: Additional shipping capacity secured with new warehouse
Additional shipping capacity secured with the opening of a new warehouse Q1 2022: Poznan, Poland • Successfully opened in February 2022 on plan • Dedicated for larger products • Capacity: 80k m² (optional expansion of 30k m²) • Shipping Capacity: c. EUR 250m 11
Slide 12: Financial Update
Financial Update
Slide 13: Revenue growth of -20% in Q1 2022
Revenue growth of -20% in Q1 2022 driven by last year’s extraordinary baseline and decreasing consumer sentiment Group Revenue [in EUR m] DACH Segment Revenue [in EUR m] +110% -23% 79 61 +105% -20% 38 138 Q1 2020 Q1 2021 Q1 2022 111 International Segment Revenue [in EUR m] 68 +98% -15% 59 50 30 Q1 2
Slide 14: Income statement details
Income statement details Delta [in % of revenue] Q1 2020 Q1 2021 Q1 2022 21 vs. 22 Gross margin impacted by inflationary headwinds Gross margin 46.7% 50.6% 48.7% -1.9%pts and costs related to supply chain disruptions Rise in fulfillment costs due to lower utilization of Fulfilment ratio -22.4% -19.4
Slide 15: Profitability impacted by lower topline and strategic growth investments
Profitability currently impacted by lower topline and strategic growth investments Group Adj. EBITDA [in % of revenue] DACH Segment Adj. EBITDA [in % of revenue] 19.9% EUR -1m EUR 20m EUR -2m 2.4% 3.8% 14.2% Q1 2020 Q1 2021 Q1 2022 International Segment Adj. EBITDA [in % of revenue] 6.7% -1.8% -1.5%
Slide 16: Net Working Capital temporarily positive; CAPEX increase
Net Working Capital temporarily positive at EUR 16m; CAPEX increase driven by strategic technology and warehouse investments Net Working Capital [in EUR m and % of LTM revenue] Capex ratio [in EUR m and as % of revenue] EUR -5m EUR -0m EUR 16m EUR 2m EUR 2m EUR 5m 4.1% 3.2% 2.8% 1.6% -0.1% Q1 2020 Q
Slide 17: Net working capital expected to further increase before improvement in Q4
Net working capital expected to further increase driven by high inventory levels and normal seasonality before we see improvement in Q4 2022 Q2 & Q3 2022 Q4 2022 Net Working Capital over time [EUR m] Further increase Significant reduction expected due to lower expected given reduced Inventories topl
Slide 18: Free Cash Flow driven by investments into working capital
Free Cash Flow for Q1 2022 driven by investments into working capital Q1 Free Cash Flow bridge [in EUR m] -1.7 -11.3 -0.9 Temporary increase driven by lower topline and -3.1 inventory build up -17.1 Adj. EBITDA Change in Net Working Capital Other Operating Cash Flow Investing Cash Flow Free Cash Flo
Slide 19: Strong Net Cash position of EUR 79m end of Q1 2022
Strong Net Cash position of EUR 79m end of Q1 2022 Net cash [in EUR m] 97.4 0.1 79.3 -17.1 -1.1 December 31 2021 Free Cash Flow FX Effects Financing Cash Flow March 31 2022 Note: All figures unaudited. 19
Slide 20: Outlook 2022
Outlook 2022 Guidance FY 2022 As of March 29, 2022 EUR 460m to 540m Revenue -12% to +3% yoy growth Based on significantly lower consumer Positive in H2 after baseline effects phase out sentiment observed across all segments over the last months, we now expect to meet the lower half of the full year
Slide 21: Summary and Q&A
Summary and Q&A
Slide 22: Q1 2022 Summary Investment highlights
Q1 2022 Summary Investment highlights The opportunity is massive Huge Home & Living market of EUR 120bn is still very early in eCommerce adoption Q1 2022 Revenue: EUR 111m at -20% growth yoy Customer loyalty at the core The differentiating creative and inspirational core of Westwing drives Q1 2022 A
Slide 23: Q&A
Q&A
Slide 24: Appendix
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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 2021 % share of o
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 Q4 2021 Q1 2022 Westwing Collection share in % of GMV 21% 22% 27% 25% 25% 22% 26% 28% 31% 32% 38% 37% 37% Active Customers in k 927 909 926 949 986 1,178 1,284 1,529 1,720 1,730 1,750
Slide 28: Consolidated income statement
Consolidated income statement EUR m, in % of revenue FY 2020 FY 2021 Q1 2021 Q1 2022 Revenue 432.9 522.5 138.4 111.1 Cost of Sales -218.9 -265.7 -68.4 -57.0 Gross profit 213.9 256.8 70.1 54.1 Fulfilment expenses -86.1 -107.1 -26.8 -26.0 Marketing expenses -31.0 -49.3 -10.3 -11.5 General and administ
Slide 29: Adjusted income statement
Adjusted income statement EUR m, in % of revenue FY 2020 FY 2021 Q1 2021 Q1 2022 Revenue 432.9 522.5 138.4 111.1 Revenue Growth yoy 62.0% 20.7% 104.9% -19.7% Cost of Sales -218.9 -265.7 -68.4 -57.0 Gross Profit 213.9 256.8 70.1 54.1 Gross Margin 49.4% 49.1% 50.6% 48.7% Fulfillment expenses -86.2 -10
Slide 30: Segment reporting
Segment reporting DACH in EUR m FY 2020 FY 2021 Q1 2021 Q1 2022 Revenue 242.6 296.8 79.1 60.7 yoy Growth (in %) 60.2% 22.4% 110.2% -23.3% Adj. EBITDA 41.0 38.8 15.8 2.3 Adj. EBITDA Margin % 16.9% 13.1% 19.9% 3.8% International in EUR m FY 2020 FY 2021 Q1 2021 Q1 2022 Revenue 190.3 225.7 59.3 50.4 yo
Slide 31: Net Working Capital
Net Working Capital Net Working Capital (NWC) breakdown as of March 31, 2022 [EUR m] 11.9 7.8 64.4 -47.9 15.7 -20.4 Inventories Prepayment Trade & other Trade and other Contract liabilities Net Working Capital on inventories receivables payables(1) Note: All figures unaudited; (1) Includes accruals.
Slide 32: Issued Share Capital
Issued Share Capital Share Information as of March 31, 2022 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 S
Slide 33: Upcoming Events
Upcoming Events May 17, 2022 Bank of America Consumer eCommerce Virtual Field Trip May 18, 2022 Annual General Meeting August 11, 2022 Publication of half-year financial report 2022 September 13, 2022 Jefferies Virtual Home Retail Summit 2022 September 19, 2022 Berenberg and Goldman Sachs Eleventh G