Slide 1: Q2 2024 results
Q2 2024 results Munich, 8 August 2024 Copyright © 2023 Westwing. All rights reserved.
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 r
Slide 3: Agenda
Agenda 01 Business update 02 Financial update 03 Investment highlights 04 Q&A 05 Appendix 3
Slide 4: 1. Business update
1. Business update 4
Slide 5: State of Westwing
State of Westwing We continued to grow in a challenging market. • GMV growth of 5% and revenue growth of 4% year-over-year (yoy) despite market headwinds. • Adjusted EBITDA of EUR 4 million at 4% margin (-1pp yoy) with improved contribution margin and brand awareness investments. • Free cash flow of
Slide 6: Recap: 3-step plan to unlock Westwing's full value potential
Recap: We are in the middle of a 3-step plan to unlock Westwing’s full value potential Turnaround & Building a Scaling with strategy update scalable platform operating leverage 2022-2023 2024-2025 2025-202x 1 Profitability Organisational rightsizing Complexity reduction Cost discipline levers 2 West
Slide 7: Recap: Lean tech platform, centralised organisation and product assortment
1 34 Recap: We are building a lean tech platform and are centralising our organisation & product assortment Measures Impact in 2024 As communicated Low to mid single-digit % of Topline loss Mostly Software- Mostly global FY 2024 Group revenue as-a-Service product (SaaS) tech assortment for One-off c
Slide 8: Restructuring of Italy and Spain is completed
1 34 Restructuring of Italy and Spain is completed, including consolidation of logistics centres Measures Mostly Software- Mostly global as-a-Service product (SaaS) tech assortment for platform IT/ES Consolidation of Restructuring local PL/IT/ES of IT/ES logistics centre corporate footprint function
Slide 9: Momentum for next step of complexity reduction and premiumisation
1 34 We will use the momentum for the next step of complexity reduction and premiumisation Measures Mostly Software- Mostly global Mostly global Premiumisation as-a-Service product product of global product (SaaS) tech assortment for assortment for assortment platform IT/ES CEE(1) Consolidation of R
Slide 10: Next step of complexity reduction while lowering expected one-off costs
1 34 We will use the momentum for the next step of complexity reduction and premiumisation while lowering the expected one-off implementation costs Measures Impact in 2024 Updated Low to mid single-digit % of FY 2024 Topline loss Mostly Software- Mostly global Mostly global Group revenue, main impac
Slide 11: Building a strong, highly profitable design brand
We are building a strong, highly profitable design brand, though this transformation will temporarily impact topline Turnaround & Building a Scaling with strategy update scalable platform operating leverage 2022-2023 2024-2025 2025-202x 1 Profitability Organisational rightsizing Complexity reduction
Slide 12: Westwing Collection share continued to increase
2 Westwing Collection share continued to increase Westwing Collection share [as % of Group GMV] 100% 47% 54% 68% 62% 78% 78% 53% 46% 32% 38% 22% 22% Q2’19 Q2’20 Q2’21 Q2’22 Q2’23 Q2’24 Westwing Collection 3rd party suppliers Note: All figures unaudited. 12
Slide 13: Expansion to the Portuguese market
4 5 We expanded to the Portuguese market – The first expansion for Westwing in 10 years and the proof-of-concept for our new tech platform 13
Slide 14: New website Netherlands
Product zoeken CREME, ZAND 8 GEBROKEN WIT Powerful N wevees DECORATE LAMPEN VLOERKLEDEN TexTEL TUIN &BALKON KEUKEN SERVIES BADKAMER Kips CADEA
Slide 15: Collaboration with İlkay Gündoğan
4 We collaborated with İlkay Gündoğan, the captain of the men's German national football team 15
Slide 16: Progressing towards our ambitious sustainability targets
Q4 2023: 48% Q4 2023: 67% We are progressing towards our ambitious 60% 82% Q2 2024 Q2 2024 of EU Westwing Collection suppliers sustainability targets of online Westwing have been evaluated on social aspects Collection products feature the WE CARE label(1) Q4 2023: 43% 76% Q2 2024 of plastic packagin
Slide 17: 2. Financial update
gre ee eT 2. Financial update =—
Slide 18: Revenue growth of 4% year-over-year in Q2 2024
Revenue growth of 4% year-over-year in the second quarter of 2024 Group revenue [in EUR million] • Despite a weak market and negative topline impact of +4% Italy and Spain, Westwing achieved topline growth in 102 106 the second quarter of the year and gained market 54% 56% share. • GMV growth was 5%
Slide 19: Strong topline development in the DACH segment
Strong topline development in the DACH segment Segment revenue [in EUR million] DACH segment • Westwing’s DACH segment grew by 8% year-over-year, +8% outperforming the market. 120 +8% 111 55 60 • International segment remained relatively stable H1’23 H1’24 Q2’23 Q2’24 compared to last year, negative
Slide 20: Improvements across most of the P&L lines
Improvements across most of the P&L lines Delta Delta H1 2023 H1 2024 Q2 2023 Q2 2024 [as % of revenue] 24 vs. 23 24 vs. 23 Strong Westwing Collection share gains Gross margin(1) 49.9% 51.0% +1.1pp 50.2% 50.6% +0.4pp partially offset by pressure on 3rd party market prices and container costs. Fulfil
Slide 21: DACH and International segment both with positive adjusted EBITDA margin
DACH and International segment both with positive adjusted EBITDA margin in Q2 2024 Segment adjusted EBITDA [as % of revenue] • Both DACH and International segment with clearly DACH segment positive adjusted EBITDA margin in Q2 2024 and H1 -3.3pp -3.3pp 2024. 8.4% 7.8% 5.1% 4.5% • DACH segment impac
Slide 22: Net working capital remains negative
Net working capital remains negative with improvement of EUR 6 million year-over-year • Net working capital mainly Net working capital [in EUR million, as % of revenue] impacted by increased trade payables and -4.8% -10.1% decreased prepayments on inventories year-over-year -6 at the end of Q2. • Ne
Slide 23: CAPEX in H1 2024 in line with previous year
CAPEX in H1 2024 in line with previous year’s level CAPEX [in EUR million, as % of revenue] 1.9% 2.1% 0 4 4 H1’23 H1’24 Property, plant and equipment Intangible Note: All figures unaudited. 23
Slide 24: Free cash flow below previous year's level
Free cash flow below previous year’s level • Net working capital effect in Q2 2024 of EUR -8 million. • Reduction of payables (EUR -7 Free cash flow [in EUR million] million) quarter-over-quarter driven by timing effect from Q1 as well as seasonal development. -13 10 • Typical seasonal inventory inc
Slide 25: Strong net cash position at the end of June 2024
Strong net cash position of EUR 72 million at the end of June 2024 Net cash [in EUR million] Free cash flow 82 Q2 2024: EUR -7 million 2 0 72 69 -10 -3 Free cash flow after lease payments Q2 2024: EUR -10 million Net cash Net cash Operating Investing IFRS 16 Other financing Net cash 30 Jun. 23 31 Ma
Slide 26: FY 2024 guidance confirmed
FY 2024 guidance confirmed FY 2023 Guidance FY 2024 Comments • Good first half of 2024 but outlook for the rest of the EUR 415m to 445m year remains cautious. Revenue EUR 429m (-3% to +4% year-over-year growth) • Complexity reduction measures will likely have detrimental effect on topline in H2. • I
Slide 27: 3. Investment highlights
3. Investment highlights 27
Slide 28: Investment highlights
Investment highlights Unique, Strong High relevant Huge brand with margins and Strong customer market high loyalty operating balance value potential and growth leverage in sheet proposition potential scaling • Unique assortment of gor- • Addressing sizeable • Desirable brand among • High margins as
Slide 29: 4. Q&A
4. Q&A 29
Slide 30: 5. Appendix
5. Appendix 30
Slide 31: Continuously expanding share of wallet with customers
Continuously expanding share of wallet with customers Active customers and average GMV per active customer [in k, in 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 32: KPI overview
KPI overview Q1 Q2 Q3 Q4 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 2023 2023 2024 2024 Westwing Collection in % of share GMV 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% 44% 44% 46% 46% 48% 47% 51% 53% Active customers
Slide 33: Consolidated income statement
Consolidated income statement EUR million, in % of revenue H1 2023 H1 2024 Q2 2023 Q2 2024 Revenue 204.7 214.7 101.8 106.0 Cost of sales -102.6 -105.3 -50.7 -52.4 Gross profit 102.1 109.4 51.1 53.6 Fulfilment expenses -44.1 -43.3 -21.8 -21.3 Marketing expenses -18.8 -27.4 -9.6 -13.4 General and admi
Slide 34: Adjusted income statement
Adjusted income statement EUR million, in % of revenue H1 2023 H1 2024 Q2 2023 Q2 2024 Revenue 204.7 214.7 101.8 106.0 Revenue growth year-over-year -4.4% 4.9% -1.2% 4.1% Cost of sales -102.6 -105.3 -50.7 -52.4 Gross profit 102.1 109.4 51.1 53.6 Gross margin 49.9% 51.0% 50.2% 50.6% Fulfilment expens
Slide 35: Segment reporting
Segment reporting DACH in EUR million H1 2023 H1 2024 Q2 2023 Q2 2024 Revenue 111.1 119.9 55.3 59.8 Year-over-year growth (in %) -6.7% 7.9% -5.5% 8.2% Adjusted EBITDA 9.4 6.2 4.3 2.7 Adjusted EBITDA margin (in %) 8.4% 5.1% 7.8% 4.5% International in EUR million H1 2023 H1 2024 Q2 2023 Q2 2024 Revenu
Slide 36: Excluding adjustments, Q2 2024 EBITDA and EBIT
Excluding adjustments, Q2 2024 EBITDA of EUR 2.7 million and EBIT of EUR -2.8 million Q1 Q2 Q3 Q4 Q1 Q2 EUR million 2023 2023 2023 2023 2024 2024 Adjusted EBITDA 5.1 4.4 2.4 5.9 6.3 3.9 Adjusted D&A -4.7 -4.7 -4.8 -5.5 -5.6 -5.5 Adjusted EBIT 0.4 -0.3 -2.5 0.4 0.7 -1.6 Share-based compensation expen
Slide 37: Issued share capital
Issued share capital Share information as at 30 June 2024 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 sha
Slide 38: Investor Relations Contact
Investor Relations Contact Teresa Fischer Perez-Lozao Director Corporate Finance ir@westwing.de 38
Slide 39: Events
Events 23 September 2024 Berenberg and Goldman Sachs German Corporate Conference 25 September 2024 Baader Investment Conference 7 November 2024 Publication of third quarter results 39