Slide 1: Q2 2023 Results
Q2 2023 Results Munich, August 10, 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 • Business Update • Financial Update • Q&A 3
Slide 4: Business Update
Business Update
Slide 5: State of Westwing
State of Westwing • Despite a challenging market environment Q2 2023 GMV and Active Customers stabilized 1 Topline has stabilized • Return to sustainable growth expected in the second half of 2023 Third profitable quarter • Q2 2023 with clearly positive Adj. EBITDA at EUR 4m, improved by EUR +7m yoy
Slide 6: Topline has stabilized despite an ongoing difficult market environment
1 Topline has stabilized despite an ongoing difficult market environment Group GMV [in EUR m] Active Customers [in k] +68% 139 1,486 1,422 -1% 128 +0% 1,320 1,262 1,252 109 109 65 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Note: All figures unaudited. Active Cust
Slide 7: Successful expansion of share of wallet with customers
1 Successful expansion of share of wallet with customers GMV per Active Customer LTM [in EUR] +8% We are successfully expanding our 376 341 349 share of wallet with customers 322 325 through… … an exceptional love brand strategy … a strong focus on an exciting Westwing Collection and Shop offering .
Slide 8: Q2 2023 marks the third profitable quarter in a row
2 Q2 2023 marks the third profitable quarter in a row Adj. EBITDA margin [as % of Revenue] Unit economics significantly improved 10% to 15% • Increasing high-margin Westwing Collection share • Strong fulfillment efficiencies Cost saving initiatives • Announced cost saving initiatives successfully im
Slide 9: Westwing Collection well on track to target share of +50% of GMV
3 Westwing Collection well on track to target share of +50% of GMV Westwing Collection share [as % of GMV] +8%pts +50% 46% 38% 32% 22% Q2 2020 Q2 2021 Q2 2022 Q2 2023 Strategic Target Note: All figures unaudited. 9
Slide 10: OneWestwing implementation reached important milestones and is fully on track
3 OneWestwing implementation reached important milestones and is fully on track Live Test phase “OneWestwing” Merged app Consolidate completed webpage rolled- rolled-out back-end out in all technology (incl. countries one check-out) OneWestwing We are merging Shop and Club under the OneWestwing init
Slide 11: Financial Update
Financial Update
Slide 12: Sebastian Westrich joined as Chief Financial Officer
Sebastian Westrich joined as Chief Financial Officer Sebastian Westrich Chief Financial Officer, Westwing Group SE Aug 2023 Chief Financial Officer, Westwing Group SE Chief Financial Officer, Cyberport GmbH & 2020 Burda Commerce SE 2019 Managing Director, Burda Digital SE 2016 Head of Investment Man
Slide 13: Topline stabilized despite a very challenging market environment
Topline stabilized despite a very challenging market environment Group Revenue [in EUR m] DACH Segment Revenue [in EUR m] +70% +73% +71% -7% 119 111 -5% 65 59 55 -4% 32 214 205 H1 2019 H1 2022 H1 2023 Q2 2019 Q2 2022 Q2 2023 +75% 56% 54% -1% International Segment Revenue [in EUR m] 119 103 102 +73%
Slide 14: Income statement details
Income statement details Delta Delta H1 2019 H1 2022 H1 2023 Q2 2019 Q2 2022 Q2 2023 [as % of revenue] 22 vs 23 22 vs 23 Strong Westwing Gross margin 42.9% 48.7% 50.4% +1.7%pts 43.4% 48.6% 50.5% +1.9%pts Collection share gains Efficiency Fulfilment ratio -24.3% -23.4% -22.1% +1.3%pts -24.9% -23.5% -
Slide 15: Group profitability at 4.6% Adj. EBITDA in H1 2023
Group profitability at 4.6% Adj. EBITDA in H1 2023 Group Adj. EBITDA [in EUR m and % of Revenue] DACH Segment Adj. EBITDA [as % of Revenue] 8.4% 7.8% EUR -9m EUR -4m EUR 10m EUR -5m EUR -2m EUR 4m 3.0% 2.2% 4.6% 4.4% -4.3% -6.0% H1 2019 H1 2022 H1 2023 Q2 2019 Q2 2022 Q2 2023 -1.9% International Seg
Slide 16: Net working capital improved by EUR 29m vs previous year
Net working capital improved by EUR 29m vs previous year Net working capital [in EUR m] EUR -29m Decisive net working capital management 24 • Continued reduction of inventory overstock 16 (EUR -23m inventory reduction vs Q2 2022) at 14 limited margin impact • Trade financing solution with an impact
Slide 17: Cost saving measures with clearly positive impact on CAPEX profile
Cost saving measures with clearly positive impact on CAPEX profile Capex ratio [in EUR m and as % of revenue] Attractive CAPEX light business model with high EUR 3m EUR 4m EUR 2m degree of cash conversion of profits 4.6% Intangible CAPEX 3.4% investments decreased due to cost savings in Technology o
Slide 18: EUR 40m Free Cash Flow improvement in H1 2023 vs previous year
Operating profit and successful net working capital management resulted in EUR 40m Free Cash Flow improvement in H1 2023 vs previous year Free Cash Flow [in EUR m] Cash and cash equivalents [in EUR m] 10 +40 76 76 10 -10 -0 +13 0 -13 Cash & cash Free Cash Flow Financing FX Effects Cash & cash -30 eq
Slide 19: FY 2023 guidance confirmed, likely in upper half
FY 2023 guidance confirmed, likely in upper half Guidance FY 2023 FY 2022 FY 2023 Comments as of March 30, 2023 • Revenue and Adj. EBITDA guidance confirmed, Revenue EUR 431m EUR 390 to 440m likely in the upper half (-9% to +2% yoy growth) • Return to sustainable growth expected in second half of 20
Slide 20: Investment Highlights
Investment Highlights
Slide 21: Investment highlights
Investment highlights Huge Home & Living market of EUR 130b very early in eCommerce with The opportunity is massive Westwing providing a unique investment opportunity into the very attractive premium segment The differentiating creative and inspirational core of Westwing drives Customer loyalty at t
Slide 22: Q&A
Q&A
Slide 23: Appendix
Appendix
Slide 24: Continuously expanding share of wallet with customers
Continuously expanding share of wallet with customers Active Customers and average GMV per Active Customer [in #k and EUR] Average 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 25: KPI overview
KPI overview Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Group KPIs Unit 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Westwing Collection share in % of GMV 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% 44% 44% 46% 46% Active Customers in k 986 1,178 1,284 1,529 1,720 1,730 1,750 1,7
Slide 26: Consolidated income statement
Consolidated income statement EUR m, in % of revenue, unaudited H1 2022 H1 2023 Q2 2022 Q2 2023 Revenue 214.1 204.7 103.0 101.8 Cost of Sales -110.0 -102.6 -52.9 -50.7 Gross profit 104.2 102.1 50.1 51.1 Fulfilment expenses -50.1 -44.1 -24.2 -21.8 Marketing expenses -22.5 -18.8 -11.0 -9.6 General and
Slide 27: Adjusted income statement
Adjusted income statement EUR m, in % of revenue, unaudited H1 2022 H1 2023 Q2 2022 Q2 2023 Revenue 214.1 204.7 103.0 101.8 Revenue Growth yoy -20.7% -4.4% -21.8% -1.2% Cost of Sales -110.0 -101.5 -52.9 -50.4 Gross Profit 104.2 103.1 50.1 51.4 Gross Margin 48.7% 50.4% 48.6% 50.5% Fulfillment expense
Slide 28: Segment reporting
Segment reporting DACH in EUR m, unaudited H1 2022 H1 2023 Q2 2022 Q2 2023 Revenue 119.2 111.1 58.5 55.3 yoy Growth (in %) -22.5% -6.7% -22.0% -5.5% Adj. EBITDA 3.6 9.4 1.3 4.3 Adj. EBITDA Margin % 3.0% 8.4% 2.2% 7.8% International in EUR m, unaudited H1 2022 H1 2023 Q2 2022 Q2 2023 Revenue 95.0 93.
Slide 29: Net working capital
Net working capital Net working capital breakdown as of June 30, 2023 [in EUR m] 10 6 37 -15 -35 -7 -5 Inventories Prepayment Trade & other Trade and other Contract liabilities Trade financing Net Working Capital on inventories receivables payables (1) liabilities Note: (1) Includes accruals. All fi
Slide 30: Issued share capital
Issued share capital Share Information as of June 30, 2023 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 Sh
Slide 31: Upcoming Events
Upcoming Events September 20, 2023 Baader Investment Conference November 9, 2023 Publication of third quarter results 2023 November 27, 2023 Deutsches Eigenkapitalforum Note: Dates could be still subject to change. 31
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