Slide 1: Q2 2022 Results
Q2 2022 Results Munich, August 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: Management Board update
Management Board update Dr. Andreas Hoerning CEO Westwing Group SE Jul 2022 Chief Executive Officer, Westwing Group SE Feb 2022 Chief Commercial Officer 2015 Founder Westwing Collection 2009 Consultant & Project Leader at Boston Consulting Group (BCG) 4
Slide 5: Agenda
AGENDA • Business update • Financial update • Strategy update • Q&A 5
Slide 6: Business Update
Business Update
Slide 7: State of Westwing
State of Westwing 1 Topline significantly • Home & Living market heavily impacted by low consumer sentiment below previous year • Protecting unit economics alongside inflationary cost pressure and lower operating leverage 2 Focus on protecting • Investment decisions of 2021 partially incompatible wi
Slide 8: Consumer climate at an all-time low
1 Geopolitical uncertainty, inflationary pressures and acute risk of recession plunge current consumer climate to an all-time low GfK Consumer Climate Index 15 10 • Consumer confidence level recorded in Q2 2022 5 was even lower than at the onset of COVID-19 in Q1 2020 0 -5 • Weak demand driven by ri
Slide 9: Strong compound annual GMV and Active Customer growth vs. Q2 2019
1 Strong compound annual GMV growth of +19% and Active Customer growth of +18% vs. Q2 2019 Group GMV [in EUR m] Active Customers LTM [in k] CAGR 19 to 22: CAGR 19 to 22: +19% +18% -21% -14% 139 1,730 128 1,486 109 1,178 909 65 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Note: All
Slide 10: Robust measures focusing on margin and cost discipline
2 Robust measures focusing on margin and cost discipline to mitigate against a lower topline • Price increases to account for inflation Retain Unit Economics • Selective discounting, but no reduction of high inventory levels at unreasonable cost • Further category and portfolio expansion of the high
Slide 11: Global supply chain situation improving; high inventory levels
3 Global supply chain situation improving, no more immediate risk to business operations; high inventory levels in the aftermath of past disruptions and lower topline Total inventory Q2 2019 – Q2 2022 [in EUR m] IMPACT ON OPERATIONS Q2 22: EUR 60m • No immediate risk to business operations (producti
Slide 12: Launch of two exclusively co-created Westwing Collection collaborations
4 Launch of two exclusively co-created Westwing Collection collaborations Picture not included Source: Westwing Newsroom. https://www.westwing.com/newsroom/news/alex-riviere-westwing-collection/ 12 https://www.westwing.com/newsroom/news/donald-robertson-westwing-collection/
Slide 13: First permanent store in Hamburg
4 We will offer our customers multiple touchpoints to our brand: Further growing the Westwing Collection brand via our first permanent store Located in one of Hamburg’s prime spots at Jungfernstieg 530 sqm sales floor Opening planned for Q4 2022 Our permanent store will enable us to offer our custom
Slide 14: Westwing joins the UN Global Compact
4 Westwing joins the UN Global Compact, underpinning our commitment to pursue a more sustainable future Westwing is now a member of the BETTER COTTON INITIATIVE • Westwing is committed • Westwing has committed • Choosing cotton products to contributing to the to the Science Based from Westwing allow
Slide 15: Financial Update
Financial Financial Update | Ape
Slide 16: Compound annual revenue growth in Q2 2022 and H1 2022
Compound annual revenue growth of +21% in Q2 2022 and H1 2022 over a 3-year period Group Revenue [in EUR m] DACH Segment Revenue [in EUR m] CAGR 19 to 22: +22% CAGR 19 to 22: CAGR 19 to 22: +22% +21% 154 119 65 75 59 -21% 32 270 H1 2019 H1 2021 H1 2022 Q2 2019 Q2 2021 Q2 2022 CAGR 19 to 22: 214 +21%
Slide 17: Income statement details
Income statement details Delta Delta H1 2019 H1 2021 H1 2022 Q2 2019 Q2 2021 Q2 2022 [as % of revenue] 21 vs 22 21 vs 22 Cost inflation mostly Gross margin 42.9% 50.1% 48.7% -1.4%pts 43.4% 49.5% 48.6% -0.9%pts passed through Less scale at Fulfilment ratio -24.3% -19.9% -23.4% -3.5%pts -24.9% -20.5%
Slide 18: Group profitability at -2.3% Adj. EBITDA in Q2 2022
Group profitability at -2.3% Adj. EBITDA in Q2 2022 Group Adj. EBITDA [in EUR m and % of Revenue] DACH Segment Adj. EBITDA [as % of Revenue] 16.8% 13.4% EUR -9m EUR 30m EUR -4m EUR -5m EUR 11m EUR -2m 3.0% 2.2% 11.2% 8.1% -4.3% -6.0% H1 2019 H1 2021 H1 2022 Q2 2019 Q2 2021 Q2 2022 International Segm
Slide 19: Net working capital and capex
Net working capital positive at EUR 24m mainly due to higher inventory levels; Capex increase driven by strategic investments into technology Net Working Capital [in EUR m and % of LTM Revenue] Capex ratio [in EUR m and % of Revenue] EUR -3m EUR 24m EUR 2m EUR 4m 3.4% 5.2% 1.8% Q2 2021 Q2 2022 -0.6%
Slide 20: Net working capital expected to decrease towards Q4 2022
Net working capital expected to decrease towards Q4 2022 and then returning to single- digit millions in 2023 Q3 2022 Q4 2022 Net Working Capital over time [in EUR m] Further increase Reduction expected given expected due to lower lower order levels and Inventories topline vs. order high sales in se
Slide 21: Financial debt free balance sheet with strong net cash position
Our financial debt free balance sheet holds a strong net cash position of EUR 64m end of Q2 2022 Net cash [in EUR m] 79.3 0.1 63.8 -12.8 -2.9 March 31 2022 Free Cash Flow FX Effects Financing Cash Flow June 30, 2022 Note: All figures unaudited. Free Cash Flow defined as the sum of Operating Cash Flo
Slide 22: Outlook 2022
Outlook 2022 Guidance FY 2022 as of August 10, 2022 • The updated guidance reflects the current EUR 410m to 450m Revenue very low consumer sentiment observed -22% to -14% yoy growth across all segments, with no short-term (Previously: EUR 460m to 540m Revenue improvement expected in H2 2022 at -12%
Slide 23: Short-term priorities in 2023 and long-term target
Driving clear short-term priorities in 2023 to support the path towards our long-term target of 10-15% Adj. EBITDA with strong cash conversion 2023 priority Long-term target P&L Free Cash Flow Neutral to positive Attractive profitability Adj. EBITDA margin: 10-15% Net Working Capital Back to single-
Slide 24: Strategy Update
Strategy Update
Slide 25: Loyalty-based business model with extremely valuable assets
We have built a loyalty-based business model with extremely valuable assets A consumer love brand with creativity, inspiration and 80% loyalty at the very core of orders are placed by loyal repeat customers(2) Unique and highly profitable Westwing Collection loved by our customers EUR 1,500 Huge, or
Slide 26: Evolving the commercial model with Westwing Collection at the forefront
We will further evolve our commercial model to unleash Westwing's full potential by bringing the Westwing Collection to the forefront Product Assortment • Rapid build-up of Westwing Collection to get to 50% Group GMV share fast • Best design brands in Daily Themes and also in Permanent Assortment Di
Slide 27: Westwing Collection at the core of next growth phase
The highly profitable Westwing Collection will be at the core of our next growth phase Unique in-house designs Strong customer loyalty Very high margins Loved by our customers High brand perception Strong value-for-money 27
Slide 28: Building the One-Stop-Shop for Home Enthusiasts
We’re building the One-Stop-Shop for Home Enthusiasts What makes us unique 1 Our love brand 2 Daily Inspiration and Content Home & Consumer Living love brand 3 Westwing Collection and Massive digital Superior loyalty & best 3rd party design brands growth potential profitability One-Stop-Shop for Hom
Slide 29: Investment Highlights
Investment Highlights
Slide 30: Investment highlights
Investment highlights Huge Home & Living market of EUR 120bn very early in eCommerce; The opportunity is massive We target c. 70% of the overall market by targeting Home Enthusiasts The differentiating creative and inspirational core of Westwing drives Customer loyalty at the core superior loyalty f
Slide 31: Q&A
Q&A
Slide 32: Appendix
Appendix | | a
Slide 33: 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 34: 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 35: 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 Q2 2022 Westwing Collection share in % of GMV 21% 22% 27% 25% 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% Active Customers in k 927 909 926 949 986 1,178 1,284 1,529 1,720
Slide 36: Consolidated income statement
Consolidated income statement EUR m, in % of Revenue H1 2021 H1 2022 Q2 2021 Q2 2022 Revenue 270.1 214.1 131.7 103.0 Cost of Sales -134.8 -110.0 -66.5 -52.9 Gross profit 135.3 104.2 65.2 50.1 Fulfilment expenses -53.8 -50.1 -27.0 -24.2 Marketing expenses -22.9 -22.5 -12.6 -11.0 General and administr
Slide 37: Adjusted income statement
Adjusted income statement EUR m, in % of Revenue H1 2021 H1 2022 Q2 2021 Q2 2022 Revenue 270.1 214.1 131.7 103.0 Revenue Growth YoY 51.2% -20.7% 18.6% -21.8% Cost of Sales -134.8 -110.0 -66.5 -52.9 Gross Profit 135.3 104.2 65.2 50.1 Gross Margin 50.1% 48.7% 49.5% 48.6% Fulfillment expenses -53.8 -50
Slide 38: Segment reporting
Segment reporting DACH, in EUR m H1 2021 H1 2022 Q2 2021 Q2 2022 Revenue 153.8 119.2 74.7 58.5 YoY Growth (in %) 57.9% -22.5% 25.0% -21.7% Adj. EBITDA 25.8 3.6 10.0 1.3 Adj. EBITDA Margin % 16.8% 3.0% 13.4% 2.2% International, in EUR m H1 2021 H1 2022 Q2 2021 Q2 2022 Revenue 116.4 95.0 57.0 44.5 YoY
Slide 39: Net working capital
Net working capital Net Working Capital (NWC) breakdown as of June 30, 2022 [in EUR m] 12.5 7.2 60.2 -39.1 24.5 -16.5 Inventories Prepayment Trade & other Trade and other Contract liabilities Net Working Capital on inventories receivables payables (1) Note: All figures unaudited; (1) Includes accrua
Slide 40: Issued share capital
Issued share capital Share Information as of June 30, 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 Sh
Slide 41: Upcoming Events
Upcoming Events September 19, 2022 Berenberg and Goldman Sachs Eleventh German Corporate Conference September 22, 2022 Baader Investment Conference 2022 November 10, 2022 Publication of quarterly statement Q3 2022 41