Westwing Group Se · XETR:WEW
Westwing — Q1 2024 Earnings Presentation
34 slides from Westwing's earnings presentation, May 7, 2024
Slide 1: Q1 2024 results
Q1 2024 results Munich, 7 May 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 re
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 delivered strong Q1 2024 financial results. • Revenue growth of 6% year-over-year (yoy) in a declining market. • Number of active customers(1) growing for the first time yoy since the end of the pandemic. • Contribution margin of 32% (+4pp yoy) and marketing ratio of -13% (-4pp
Slide 6: We clearly outperformed the market in our largest geography
We clearly outperformed the market in our largest geography Year-over-year sales growth (2) German online Home & Living market(1) DACH Q1 2024 -4% +8% Note: All figures unaudited. (1) Based on Bundesverband E-Commerce und Versandhandel data. (2) Based on DACH revenue. Austria and Switzerland develop
Slide 7: Number of active customers increased year-over-year for the first time since the pandemic
For the first time since the end of the pandemic, the number of active customers increased year-over-year Active customers 2% Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Note: All figures unaudited. Active customer def
Slide 8: Recap: We are in the middle of a 3-step plan to unlock Westwing's value potential
Recap: We are in the middle of a 3-step plan to unlock Westwing’s 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 3 Westwing
Slide 9: Westwing Collection share continued to increase
3 Westwing Collection share increase Westwing Collection share continued to increase Westwing Collection share [as % of Group GMV] 100% 54% 49% 69% 63% 79% 75% 46% 51% 31% 37% 21% 25% Q1’19 Q1’20 Q1’21 Q1’22 Q1’23 Q1’24 Westwing Collection 3rd party suppliers Note: All figures unaudited. 9
Slide 10: During Milan Design Week, we presented design highlights of the Westwing Collection
4 Stronger premium brand positioning During Milan Design Week, we presented design highlights of the Westwing Collection, e.g. sofa ‘WOLKE’, with an immersive exhibition… 10
Slide 11: … and we showcased a collaboration with the prestigious fabric house Dedar Milano
4 Stronger premium brand positioning … and we showcased a collaboration with the prestigious fabric house Dedar Milano 11
Slide 12: 2. Financial update
2. Financial update 12
Slide 13: Revenue growth of 6% year-over-year in the first quarter of 2024
Revenue growth of 6% year-over-year in the first quarter of 2024 Group revenue [in EUR m] • Despite overall market decline, Westwing achieved topline growth in the first +6% quarter of the year and 109 gained market share. 103 54% 55% • Both GMV and revenue showed a growth of 6% year- over-year in Q
Slide 14: Positive topline development for both DACH and International segment
Positive topline development for both DACH and International segment Segment revenue [in EUR m] • Both segments with topline DACH segment growth in the first quarter of 2024. +8% 56 60 • Westwing’s DACH segment grew by 8% year-over-year, Q1’23 Q1’24 clearly outperforming the market. International se
Slide 15: Strong improvements across most of the P&L lines
Strong improvements across most of the P&L lines Delta Q1 2023 Q1 2024 [as % of revenue] 24 vs. 23 Gross margin(1) 49.5% 51.4% +1.8pp Strong Westwing Collection share gains. Fulfilment ratio(1) -21.7% -19.6% +2.1pp Efficiency gains and scale effects. Contribution margin 27.9% 31.8% +3.9pp Marketing
Slide 16: DACH and International segment both with positive adjusted EBITDA margin in Q1 2024
DACH and International segment both with positive adjusted EBITDA margin in Q1 2024 Segment adjusted EBITDA [as % of revenue] • Both DACH and International segment with clearly positive DACH segment adjusted EBITDA margin in Q1 -3.2pp 2024. 9.0% 5.8% • DACH segment adjusted EBITDA profitability impa
Slide 17: Net working capital position remains strong at EUR -18m
Net working capital position remains strong at EUR -18m and reduction of excess inventory is mostly completed Net working capital [in EUR m] Net inventory [in EUR m] -5 -13 42 37 -5 -18 31 Mar. 23 31 Mar. 24 31 Mar. 23 31 Mar. 24 Note: All figures unaudited. 17
Slide 18: Higher CAPEX in Q1 2024 likely to be reversed in Q2
Higher CAPEX in Q1 2024 likely to be reversed in Q2 CAPEX [in EUR m, as % of revenue] • Higher CAPEX in Q1 2024 due to change of lease contract of existing logistics centre 1.9% 4.9% equipment; effect of EUR 3m expected to be reversed in +3 Q2 2024. 5 2 Q1’23 Q1’24 Property, Plant and Equipment Inta
Slide 19: Free cash flow below previous year's level due to likely impermanent effect in investing
Driven by Operating cash flow EUR 1.5m higher VAT, EUR 1.7m Marketing prepayments Investing cash flow Free cash flow below previous year’s level due to EUR 3.1m WH assets, EUR 1.2m rent deposits, EUR 0.4m leasehold improvements PL likely impermanent effect in investing activities Free cash flow [in
Slide 20: We maintained our strong balance sheet with EUR 82m net cash
We maintained our strong balance sheet with EUR 82m net cash at the end of March 2024 Net cash [in EUR m] • Very strong net cash balance sheet position maintained with 4 82 zero debt at the end of March 82 -1 -3 0 2024. • Strong net cash position provides us with strategic optionality and the confid
Slide 21: FY 2024 guidance confirmed
FY 2024 guidance confirmed FY 2023 Guidance FY 2024 Comments • Good start into 2024 but macro environment EUR 415m to 445m likely to remain challenging. Revenue EUR 429m (-3% to +4% year-over-year • We believe we can continue to grow above market, growth) but switch to global product offering for IT
Slide 22: 3. Investment highlights
3. Investment highlights 22
Slide 23: 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 24: 4. Q&A
4. Q&A 24
Slide 25: 5. Appendix
5. Appendix 25
Slide 26: 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 27: KPI overview
KPI overview Q1 Q2 Q3 Q4 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 2023 2023 2023 2024 Westwing Collection in % of GMV share 25% 22% 26% 28% 31% 32% 38% 37% 37% 38% 44% 44% 46% 46% 48% 47% 51% Active customers in k 986 1,1
Slide 28: Consolidated income statement
Consolidated income statement EUR m, in % of revenue FY 2022 FY 2023 Q1 2023 Q1 2024 Revenue 430.8 428.6 102.9 108.6 Cost of sales -228.1 -215.7 -51.9 -52.9 Gross profit 202.7 212.9 51.0 55.8 Fulfilment expenses -94.2 -90.3 -22.3 -22.0 Marketing expenses -40.6 -45.6 -9.2 -13.9 General and administra
Slide 29: Adjusted income statement
Adjusted income statement EUR m, in % of revenue FY 2022 FY 2023 Q1 2023 Q1 2024 Revenue 430.8 428.6 102.9 108.6 Revenue growth year-over-year -17.5% -0.5% -7.4% 5.6% Cost of sales -228.1 -215.7 -51.9 -52.9 Gross profit 202.7 212.9 51.0 55.8 Gross margin 47.1% 49.7% 49.5% 51.4% Fulfilment expenses -
Slide 30: Segment reporting
Segment reporting DACH in EUR m FY 2022 FY 2023 Q1 2023 Q1 2024 Revenue 242.4 236.5 55.8 60.1 Year-over-year growth (in %) -18.3% -2.4% -8.0% 7.7% Adjusted EBITDA 7.9 16.1 5.0 3.5 Adjusted EBITDA margin (in %) 3.3% 6.8% 9.0% 5.8% International in EUR m FY 2022 FY 2023 Q1 2023 Q1 2024 Revenue 188.4 1
Slide 31: In Q1 2024, we adjusted costs of EUR -2.7m related to the complexity reduction
In Q1 2024, we adjusted costs of EUR -2.7m related to the complexity reduction, of which only EUR -0.6m had cash impact Complexity reduction costs in 2024 Unadjusted P&L Adjusted P&L Cash impact impact impact One-off implementation EUR -0.2m EUR -0.1m EUR -0.2m Restructuring severances EUR -2.6m - E
Slide 32: Issued share capital
Issued share capital Share information as at 31 March 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 sh
Slide 33: Investor Relations Contact
Investor Relations Contact Teresa Fischer Perez-Lozao Director Corporate Finance ir@westwing.de 33
Slide 34: Events May 2024
Events 14 May 2024 German Spring Conference 19 June 2024 Annual General Meeting 8 August 2024 Publication of half-year results 34