Elumeo Se · XETR:ELB
Elumeo — Investor Presentation (September 2018)
40 slides from Elumeo's investor presentation, September 2018
Slide 1: The leading electronic retailer for gemstone jewelry in Europe
The leading electronic retailer for gemstone jewelry in Europe Investor Presentation September 2018
Slide 2: Table of contents
Table of contents Pi | elumeo at a glance elumeo’s business model elumeo’s turnaround and way forward Financials Outlook 2018 ao vu BW N Appendix
Slide 3: elumeo at a glance
elumeo at a glance Key facts Key financials and key performance indicators = elumeo is the leading manufacturer and electronic 2009” 20177 CAGR retailer of gemstone jewelry in Europe Revenues 19 67.6 17,0% = Our mission is to make fine jewelry an affordable Product sld 291 923 15,5% luxury for every
Slide 4: Table of contents
Table of contents 1 elumeo ata glance a elumeo’s business model Elumeo’s turnaround and way forward 4 Financials 5 Outlook 2018 6 Appendix
Slide 5: Europe's Online Jewelry Market continues to grow at double-digit rate
Europe’s Online Jewelry Market continues to grow at double-digit rate Total Market Size Europe Online Sales Europe EUR million 2015 - 2016 EUR million 2015 - 2016 35000 +0.4% +13.3% ————_—_—_> 2000 _ ee” 30000 1600 ote 25000 16,381 16,327 840 1200 20000 128 125 180 15000 800 169 548 10000 4a7 400 50
Slide 6: Huge transformation opportunity ahead
Huge transformation opportunity ahead The top 25 players in the European market for fine jewelry elumeo’ oO LINKS Cartier GOLDSMITHS PANDORA CHAUMET H.SAMUEL TIFFANY & Co, THE JeWeLces BUCHERER BEAVERBROOKS os Van Cleef a Arpels BVLGARI De Beers 2010-2015 jewelry revenue CAGR™ Ce) Bubble size repres
Slide 7: Three pillars provide strong competitive advantages
Three pillars provide strong competitive advantages Vertically integrated and scalable value chain Traditional jewelers Gemstone > sourcing > Production > Distribution > Customer \ elumeo / Integrated l Gemstone > Sourcing > Production &> Customer Distribution Up to 4 times faster and strong price a
Slide 8: elumeo's customers continue to show high level of loyalty
elumeo’s customers continue to show high level of loyalty Active Customers 2012-17 Revenue per Customer 2012-17 (€) 818 781 8 75923 79.943 «84587 82,062 _ 71 78 787 698 57225 58457 PB foci, feememd boaeen 733 9,308 9,907 618 628 617 516 528 47,917] 49,640) 94.652 57.2379 °° 1 O45? 460 2012 2013 2014
Slide 9: elumeo's growth strategy founded on three pillars
elumeo’s growth strategy founded on three pillars Pe | Drive digitalisation P| Enhance cost leadership * Rollout of Mobile App and Bidding Agent across Europe = Optimise production = Mobile App including video stream = Automate logistics = Further development of Smart TV = Leverage purchasing power
Slide 10: After a successful recovery in 2017 elumeo has seen a setback in the first half of 2018
After a successful recovery in 2017 elumeo has seen a setback in the first half of 2018 Development of Segment EBITDA’ Key facts 9.000 + After challenging results in 2015/2016 elumeo SE shows significantly improved 7.000 profitability in 2017 again 5.000 + First half year affected by lower revenues
Slide 11: Table of contents
Table of contents 1 elumeo ata glance 2 elumeo’s business model BS | etumeo's turnaround and way forward _| 4 Financials 5 Outlook 2018 6 Appendix
Slide 12: elumeo ran into trouble for three major reasons
elumeo ran into trouble for three major reasons After years of a stable exchange rate between the Euro and the Thai Baht the Euro in the beginning of 2015 lost more than 15% of its value in at a historically unprecedented fast pace. More than 60% of the cost of goods sold are directly linked to the
Slide 13: The gains in efficiency have been offset by the historically low exchange rate
The gains in efficiency have been offset by the historically low exchange rate between Thai Baht and Euro/GBP Thai Baht and Euro/GBP = The THB/€ exchange rate directly drives 70 gemstone and labor cost as well as third 65 party purchases in the COGS = These cost comprise more than 65% of 60 total CO
Slide 14: Gross profit margins have been under pressure since 2015
Grossprofit margins have been under pressure since 2015 Fx-rate loss of the € against the THB Labor cost increase in Thailand Lower fixed cost degression in the new factory than expected
Slide 15: Recovery of the group has been founded on four main pillars
Recovery of the group has been founded on four main pillars Reduction of operation cost all across the group in order to reduce the fixed cost base Introduction of more branded goods with a higher value appeal in order to be able to pass some of the cost increases on to our customers Closure of the
Slide 16: Broadcasting costs, Personnel expenses H1 2018
20,000 20,000 1,852 2,407 15,000 15,000 7,776 7,487 10,000 10,000 1,214 4,230 4,034 4,131 5,000 9,291 5,000 8,369 2,049 4,109 4,489 3,714 2,036 0 0 2016 2017 H1 2018 2016 2017 H1 2018 Broadcasting costs Personnel expenses Marketing expenses Personnel expenses Other administrative expenses
Slide 17: elumeo has opened its integrated value chain to third parties
elumeo has opened its integrated value chain to third parties
Slide 18: Table of contents
Table of contents 1 elumeo ata glance 2 elumeo’s business model 3 elumeo’s turnaround and way forward 5 Outlook 2018 6 Appendix
Slide 19: Summary of H1 2018 results
Summary of H1 2018 results Group's total revenues (w/o UK) for H1 2018 decreased by -8.6% to EUR 29.3 million after EUR 32.1 million in H1 2017 * Significantly reduced B2B business = Need to reduce the capacity in the production Reduced capacity first leading to lack of variety and declining revenue
Slide 20: Statement of financial position of discontinued operations
Statement of financial position of discontinued operations 30 Jun 2018 31 Dec 2017 ~— Change EUR thousand | % of balance sheet total in% Assets Trade receivables 16 0.0% 216 04% -924% Other financial assets 4102 77% 159 0.3% >1.000% Other non-financial asscts 119) 0.9% 67) 01% 75.9% Cash and cash eq
Slide 21: Statement of income of discontinued operations
Statement of income of discontinued operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in% 30 Jun 2018 30 Jun 2017 in% Revenue 14 100.0% 1,700 100.0% -99.2% 62 100.0% 4,222 100.0% = -98.5% Cost of goods sold 90 651.4% 1127 _ 66.3% _ -92.0% 135 216.0% 3,588 80.2% _ -96.0%
Slide 22: H1 2018 vs. H1 2017 performance
H1 2018 vs. H1 2017 performance - Overview Revenues 32.4 —_—_, 29.3 H1 2017 H1 2018 a Total segment EBITDA and margin H1 2017 H1 2018 unaudited - in EUR million 1.2018 financial report Gross profit 43.3% 38.4% 13.9 -18.9% OO 11.1 H1 2017 H1 2018 =! oo, Comments * Strong decline in B2B led to lower c
Slide 23: Q2 2018 vs. Q2 2017 performance
Q2 2018 vs. Q2 2017 performance - Overview Revenues 17.4 27 -26.8% —__, Q2 2017 Q2 2018 a Total segment EBITDA and margin Q2 2017 Q2 2018 +0.2 a ~ -25.4% 12018 financial report , unaudited in EUR million Gross profit 43.4% 37.6% 75 ch -36.6% 48 i Q22017 Q22018 =! Comments = Strong decline in B2B led
Slide 24: Selected key data H1 2018
Selected key data H1 2018 EUR thousand Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH [unless indicated otherwise] in % 30.06.2018 30.06.2017 in % Revenue 12,729 100.0% 17,387 100.0% -25.8% 29,338 100.0% 32,097 100.0% -8.6% Product revenue by regions fabsolutely and in % of product revenuel Germany 10,382
Slide 25: Selected key data H1 2018
Selected key data H1 2018 EUR thousand Q2 2018 Q2 2017 QoQ 1 Jan - 1 dan - HoH [unless indicated otherwise] in% 30.06.2018 30.06.2017 in% Total assets! na 53,191 100.0% 54,709 100.0% 2.8% Total equity! na 28,706 54.0% 31,952 58.4% -10.2% [absolutely and in % of balance sheet total] Working capital?
Slide 26: Group segment reporting - continuing operations Jan - Jun 2018
Group segment reporting - continuing operations 1 Jan - 30 Jun 2018 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 27,392 93.4% 9,670 35.3% -3,794 -13.9% Sales division Others 1,945 6.6% 286 14.7% -8 -0.4% Group functions & eliminations 0 0.
Slide 27: Group segment reporting - continuing operations Q2
Group segment reporting - continuing operations Q2 2018 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 12171 95.6% A113 33.8% -2,996 -24.6% Sales division Others 558 4.4% 29 5.2% -65 = --11.7% Group functions & eliminations ) 0.0% 641 na. -1
Slide 28: Table of contents
Table of contents elumeo at a glance elumeo’s business model elumeo’s turnaround and way forward Financials 1 2 3 4 FE] outcow208 6 Appendix
Slide 29: 2018 Outlook
2018 Outlook On August 6 elumeo Se revised its forecasts for 2018 - reasons have been: = Significantly reduced B2B business and reduced capacity in the factory leading to lack of variety - we opened our integrated supply chain to third party suppliers = New multiproduct strategy delayed - full roll
Slide 30: Table of contents
Table of contents elumeo at a glance elumeo’s business model elumeo’s turnaround and way forward Financials Outlook 2018 1 2 3 4 5 Fe] avventx
Slide 31: Statement of income of continuing operations
Statement of income of continuing operations
Slide 32: Statement of income of discontinued operations
Statement of income of discontinued operations
Slide 33: Split of selling expenses - continuing operations
Split of selling expenses - continuing operations Q2 2018 Q2 2017 QoQ 1Jan- 1 Jan - HoH EUR thousand | % of revenue in % 30 Jun 2018 30 Jun 2017 in % Broadcasting and channel rental costs 2,268 178% 2,073 11.9% 94% 4109 14.0% 4456 13.9% -7.8% Personnel expenses 1,750 137% 1,531 88% 143% 3,339 114% 3
Slide 34: Split of administrative expenses - continuing operations
Split of administrative expenses - continuing operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in % 30 Jun 2018 30 Jun 2017 in % Personnel expenses 1,060 83% 955 5.5% 11.0% 2,036 6.9% 1,928 6.0% 5.6% Depreciation, amortisation and impairment loss 170 13% 204° 12% = -16.
Slide 35: Total segment EBITDA of continuing operations
Total segment EBITDA of continuing operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in% 30 Jun 2018 30 Jun 2017 in% Total segment EBITDA -5,255 -254% 220 1.3% <-1.000% _-4,148 -141% -1,019 -3.2% -307.2% Effects from foreign currency translati 98 0.8% 943 54% -89.6% -424
Slide 36: Consolidated statement of financial position
Consolidated statement of financial position ASSETS 30 Jun 2018 31Dec 2017 ~— Change EUR thousand | % of balance sheet total in% Non-current assets Intangible assets 714 13% 755 14% -5.A% Property, plant and equipment 8,968 16.9% 9,374 17.1% -4.3% Other financial assets 451 08% 394 0.7% 14.4% Other
Slide 37: Consolidated statement of financial position
Consolidated statement of financial position EQUITY & LIABILITIES 30 Jun 2018 = 31.Dec 2017 Change EUR thousand | % of balance sheet total in% Equity Issued capital 5500 103% 5.500 101% 0.0% Capital reserve 34,288 645% 34179 625% 0.3% Retained losses -15,285 -28.7% -11,452 -209% -33.5% Foreign curre
Slide 38: Consolidated statement of cash flows
Consolidated statement of cash flows Q22018 = 22017, aca 1Jan - 1Jan - HoH EUR thousand in% 30dun 2018 30Jun 2017 inx Earnings before taxes (EBT) of continued operations -3,717 +499 -845.4% -5,692 -2,034 -179.9% Earnings before taxes (EBT) of discontinued operations 42,734 -654 518.2% +2,168 -1399 2
Slide 39: Consolidated statement of cash flows
Consolidated statement of cash flows Q22018 = Q2.201/ Qo 1 Jan - ian - HoH EUR thousand in% 30Jun 2018 30Jun 2017 inx - Payments for investments in intangible assets - 0 ne -21 -7 190.8% - Payments for investments in property, plant and equipment -120 59 -1n4.a% -170 109 -e6.0% and property, plantan
Slide 40: Points of contact
Points of contact Executive Board Wolfgang Boyé, Don Kogen, Bernd Fischer, Boris Kirn, Thomas Jarmuske, Deborah Cavill, Anette Bronder, Roland Sand Investor Relations contact Claudia Erning Erkelenzdamm 59/61 10999 Berlin E-Mail: ir@elumeo.com Phone: +49 30 69 59 79-231 Fax: +49 30 69 59 79-650