Westwing Group Se · XETR:WEW

Westwing — Q1 2023 Earnings Presentation

26 slides from Westwing's earnings presentation, May 11, 2023

  1. Slide 1: Q1 2023 Results

    Q1 2023 Results Munich, May 11, 2023

  2. 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

  3. Slide 3: Agenda

    AGENDA • Q1 2023 Financial Update • Q&A 3

  4. Slide 4: Q1 2023 Financial Update

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  5. Slide 5: Q1 2023 financial update

    Q1 2023 financial update • Group GMV at EUR 118m at -8% yoy in Q1 2023 impacted by baseline effects from 1 Q1 2023 topline previous year and continued low consumer sentiment • Westwing remains significantly larger compared to 2019: Revenue is up by 67% Delivering on cost • Costs are already down by

  6. Slide 6: Westwing remains significantly larger compared to pre-pandemic FY 2019 baseline

    1 Westwing remains significantly larger compared to pre-pandemic FY 2019 baseline Group GMV [in EUR m] Active Customers LTM [in k] +55% +36% 164 1,720 -21% 1,593 -8% 128 118 1,262 986 85 927 76 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Note: All figures unaudite

  7. Slide 7: Q1 2023 Group Revenue is up by +67% vs Q1 2019

    1 Q1 2023 Group Revenue is up by +67% vs Q1 2019 Group Revenue [in EUR m] DACH Segment Revenue [in EUR m] +67% +67% -8% 61 56 33 -7% 111 103 Q1 2019 Q1 2022 Q1 2023 55% 54% 61 International Segment Revenue [in EUR m] +68% 54% 45% 46% -7% 46% 50 47 28 Q1 2019 Q1 2022 Q1 2023 Q1 2019 Q1 2022 Q1 2023 S

  8. Slide 8: We are delivering on our cost saving targets across G&A, Marketing, and CAPEX

    2 We are delivering on our cost saving targets across G&A, Marketing, and CAPEX Annualized Q1 cost base [in EURm] EUR -29m 153 18 We are on track to deliver our committed gross savings of 124 EUR 30m vs Q1 2022 baseline 8 46 37 Marketing savings are mainly achieved through roughly equal parts of per

  9. Slide 9: Q1 2023 results showcase our turnaround on profitability

    3 Q1 2023 results showcase our turnaround on profitability Delta Delta [in % of revenue] Q1 2019 Q1 2022 Q1 2023 23 vs. 19 23 vs. 22 Gross margin 42.4% 48.7% 50.3% +7.9%pts +1.6%pts Strong Westwing Collection share gains Fulfilment ratio -23.8% -23.4% -22.4% +1.4%pts +1.0%pts Efficiency improvements

  10. Slide 10: Group profitability at 4.9% Adj. EBITDA margin in Q1 2023

    3 Group profitability at 4.9% Adj. EBITDA margin in Q1 2023 Group Adj. EBITDA [in % of revenue] DACH Segment Adj. EBITDA [in % of revenue] 9.0% 3.8% EUR -4m EUR -2m EUR 5m -2.7% 4.9% Q1 2019 Q1 2022 Q1 2023 International Segment Adj. EBITDA [in % of revenue] -1.5% 0.3% -6.3% -7.5% -10.3% Q1 2019 Q1

  11. Slide 11: We returned to negative net working capital per end of Q1 2023

    3 We returned to negative net working capital per end of Q1 2023 Net Working Capital [in EUR m] EUR -30m Decisive Net Working Capital management 24 • Continued reduction of inventory overstock at 16 limited margin impact 14 • Supplier negotiations and seasonal effects resulted in improved trade paya

  12. Slide 12: Operating profit and successful net working capital management result in EUR 10m Free Cash Flow

    Operating profit and successful net working capital management result in 3 EUR 10m Free Cash Flow in Q1 2023, an improvement of EUR 27m vs Q1 2022 Free Cash Flow [in EUR m] Cash and cash equivalents [in EUR m] +27 10 10 80 76 -6 -0 Cash & cash Free Cash Flow Financing FX Effects Cash & cash -17 equi

  13. Slide 13: FY 2023 guidance confirmed

    4 FY 2023 guidance confirmed Guidance FY 2023 FY 2022 FY 2023 FY 2023 financial priorities Revenue EUR 431m EUR 390 to 440m • We are confident to return to positive growth (-9% to +2% yoy growth) rates in the second half of 2023 • Strong unit economics and successful cost saving measures are expecte

  14. Slide 14: Investment Highlights

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  15. Slide 15: Investment highlights

    Investment highlights The opportunity is massive Huge Home & Living market of EUR 130b very early in eCommerce The differentiating creative and inspirational core of Westwing drives Customer loyalty at the core superior loyalty for our love brand with >80% repeat order share(1) Our Westwing Collecti

  16. Slide 16: Q&A

    Q&A

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: 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

  19. Slide 19: KPI overview

    KPI overview Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Group KPIs Unit 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 Westwing Collection share in % of GMV 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% 44% 44% 46% Active Customers in k 986 1,178 1,284 1,529 1,720 1,730 1,750 1,705 1,593 1,4

  20. Slide 20: Consolidated income statement

    Consolidated income statement EUR m, in % of revenue, unaudited FY 2021 FY 2022 Q1 2022 Q1 2023 Revenue 522.5 430.8 111.1 102.9 Cost of Sales -265.7 -228.1 -57.0 -51.9 Gross profit 256.8 202.7 54.1 51.0 Fulfilment expenses -107.1 -94.2 -26.0 -22.3 Marketing expenses -49.3 -40.6 -11.5 -9.2 General an

  21. Slide 21: Adjusted income statement

    Adjusted income statement EUR m, in % of revenue, unaudited FY 2021 FY 2022 Q1 2022 Q1 2023 Revenue 522.5 430.8 111.1 102.9 Revenue Growth yoy 20.7% -17.5% -19.7% -7.4% Cost of Sales -265.7 -223.8 -57.0 -51.2 Gross Profit 256.8 207.1 54.1 51.7 Gross Margin 49.1% 48.1% 48.7% 50.3% Fulfillment expense

  22. Slide 22: Segment reporting

    Segment reporting DACH in EUR m, unaudited FY 2021 FY 2022 Q1 2022 Q1 2023 Revenue 296.8 242.4 60.7 55.8 yoy Growth (in %) 22.4% -18.3% -23.3% -8.0% Adj. EBITDA 38.8 7.9 2.3 5.0 Adj. EBITDA Margin % 13.1% 3.3% 3.8% 9.0% International in EUR m, unaudited FY 2021 FY 2022 Q1 2022 Q1 2023 Revenue 225.7

  23. Slide 23: Net Working Capital

    Net Working Capital Net Working Capital (NWC) breakdown as of March 31, 2023 [in EUR m] 12 5 42 -20 -38 -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.

  24. Slide 24: Issued share capital

    Issued share capital Share Information as of March 31, 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 S

  25. Slide 25: Upcoming Events

    Upcoming Events May 16, 2023 Annual General Meeting August 10, 2023 Publication of half-year financial report 2023 September 18-20, 2023 Berenberg and Goldman Sachs Twelfth German Corporate Conference September 18-22, 2023 Baader Investment Conference November 9, 2023 Publication of third quarter re

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