Westwing Group Se · XETR:WEW
Westwing — FY2021 Earnings Presentation
40 slides from Westwing's earnings presentation, Mar 29, 2022
Slide 1: FY 2021 Results
FY 2021 Results Munich, March 29, 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
Our mission To inspire and make every home a beautiful home.
Slide 4: Agenda
AGENDA • Business Update • Financial Update • Summary & Q&A • Appendix 4
Slide 5: Business Update
Business Update
Slide 6: Update on the conflict in Ukraine
Update on the conflict in Ukraine How we are supporting Impact to our operations • Westwing has donated EUR 100,000 in emergency • Ukraine is the 3rd largest nationality at the Westwing aid to Caritas International team, with >300 team members plus temporary warehouse workers • Flexible vacation and
Slide 7: 2021 Summary
2021 Summary GROWTH EUR 522m Revenue, 21% growth on top of strong baseline from last year FY 2021 PROFITABILITY Profit generation of EUR 40m Adj. EBITDA at 7.7% Adj. EBITDA margin RESULTS Positive Free Cash Flow of EUR 2.7m while financing inventory buffers against supply chain FREE CASH FLOW disrup
Slide 8: FY 2021 Revenue growth of 21% on top of an exceptionally high baseline from 2020
FY 2021 Revenue growth of 21% on top of an exceptionally high baseline from 2020; +96% growth vs. 2019 Revenue [in EUR m] Active Customers LTM [in k] +96% +80% +21% +11% 522 1,705 1,529 433 934 949 254 267 838 813 205 220 725 174 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
Slide 9: Positive development across both the DACH and International segment
Positive development across both the DACH and International segment DACH segment revenue [in EUR m] International segment revenue [in EUR m] +96% +95% +22% +19% 297 226 243 190 126 122 121 151 112 116 133 98 79 62 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Note: All figure
Slide 10: Strong GMV retention in H1 2021 followed by a weaker H2 2021
Strong GMV retention in H1 2021 followed by a weaker H2 2021 leads to an overall full year retention rate of 91% GMV and GMV retention rate [EUR m, GMV share of previous year in %] 586 502 91% 310 123% 291 252 86% 230 93% 195 90% 93% 2015 2016 2017 2018 2019 2020 2021 GMV from new members of that ye
Slide 11: 2020 and 2021 cohort behavior in line with pre-pandemic cohorts
2020 and 2021 cohort behavior in line with pre-pandemic cohorts Cumulative GMV per first time buyer(1) [in months after first purchase] Q2 cohort Q3 cohort 400 400 350 2019 345 350 2020 352 2020 335 2019 351 300 300 2021 271 2021 260 2017 302 2018 315 250 250 2018 301 2017 312 200 200 150 150 100 10
Slide 12: Loyalty of our customers results in a very attractive customer lifetime spend
Loyalty of our customers results in a very attractive customer lifetime spend Cumulative GMV per DACH customer over 8 years [EUR] 1,600 1,500 EUR GMV after 8 years 1,200 Loyal customer base results in a very high lifetime spend 800 8 years and counting 400 Customer lifetime spend continues to increa
Slide 13: Strategic update 2022
Strategic update 2022: Managing a very uncertain 2022 by navigating growth with a long-term focus and protecting profitability Protecting topline in a dynamic and uncertain macro environment, while managing profitability levels alongside inflationary headwinds and continued supply chain challenges D
Slide 14: Westwing Collection on track towards the 50% strategic target share
Our high-margin Westwing Collection continues to be on track towards the 50% strategic target share Westwing Collection share [as % of GMV] 2021 Highlights • 9%pts improvement in Q4 2021 vs. Q4 50% 2020 in Westwing Collection share (as % of GMV) • FY 2021 Westwing Collection GMV: 37% EUR 200m (+55%
Slide 15: New and innovative businesses (1/2): Westwing Studio
New and innovative businesses powering future growth: (1/2): Provide unmatched customer experience with Westwing Studio 3D concept Available countries Germany, France and Netherlands Focus 2022 Scaling service in 7,100 individually existing countries designed rooms for 4,800 customers in 2021 Differ
Slide 16: New and innovative businesses (2/2): Westwing Delivery Service
New and innovative businesses powering future growth: (2/2): Successful multi-city rollout of Westwing Delivery Service 2021 2022 First delivery hub in Munich setup Roll-out to Hamburg & Berlin Every 10th large furniture Hamburg operational since Feb order in Germany covered by 22 – Berlin planned t
Slide 17: Our ambition on sustainability
Our ambition on sustainability: Enabling a sustainable way to live beautifully Sustainability touches all parts of our business, from people to products and from customers to supply chain. Our new Sustainability Strategy 2030 accordingly covers all aspect of our business model based on our belief th
Slide 18: Sustainability is already deeply embedded into our operating model
Sustainability is already deeply embedded into our operating model Westwing is scored within the top 30% Selected sustainability initiatives already implemented of our industry Climate neutral C- in our own operations since 2021 Decile rank Top 3 100% recycled(1) 10 9 8 7 6 5 4 3 2 1 packaging +100
Slide 19: Our Sustainability strategy 2030 sets clear focus areas and commitments
Our Sustainability strategy 2030 sets clear focus areas and commitments to reach true sustainability in all part of our business Focus areas of our Sustainability Strategy 2030 Make Westwing Enable our a company customers to make Climate and Packaging people aspire to more sustainable energy work fo
Slide 20: Financial Update
Financial Update
Slide 21: Continued revenue growth of +21% in FY 2021
Continued revenue growth of +21% in FY 2021, on top of last year’s extraordinary baseline Group Revenue [in EUR m] DACH Segment Revenue [in EUR m] +21% +22% +60% 522 297 243 +75% -5% +62% 151 52 91 87 433 FY 2019 FY 2020 FY 2021 Q4 2019 Q4 2020 Q4 2021 267 International Segment Revenue [in EUR m] +7
Slide 22: Income statement details
Income statement details Delta Delta Q4 2019 Q4 2020 Q4 2021 FY 2019 FY 2020 FY 2021 [in % of revenue] 21 vs. 20 21 vs. 20 Higher sea freight rates Gross margin 47.1% 51.3% 47.6% -3.8% 44.6% 49.4% 49.1% -0.3% compensated by increased Westwing Collection share Rise in logistics and Fulfilment ratio -
Slide 23: Full year profitability of 7.7% Adj. EBITDA margin
Full year profitability of 7.7% Adj. EBITDA margin on the back of supply chain disruptions and funding of growth investments Group Adj. EBITDA [in % of revenue] DACH Segment Adj. EBITDA [in % of revenue] 22.1% 16.9% EUR -10m EUR 50m EUR 40m EUR 3m EUR 26m EUR 10m 13.1% 12.2% 16.5% 7.1% -0.3% 11.5% F
Slide 24: Net Working Capital end of 2021 temporarily positive at EUR 4m
Net Working Capital end of 2021 temporarily positive at EUR 4m Net Working Capital Capex ratio [in EUR m and % of LTM revenue] [in EUR m and as % of revenue] EUR -3m EUR -4m EUR 4m EUR 9m EUR 8m EUR 15m 0.8% 3.5% 2.9% 1.9% Increase driven by supplier pre-payments and higher inventory levels -0.9% FY
Slide 25: Positive Free Cash Flow of EUR 2.7m leads to strong Net Cash position
Positive Free Cash Flow of EUR 2.7m leads to strong Net Cash position of EUR 97m FY 2021 Net Cash bridge [in EUR m] 104.9 2.7 -0.5 97.4 -9.7 December 31, Free Cash Flow FX Effects Financing Cash Flow December 31, 2020 2021 25
Slide 26: Outlook 2022
Outlook 2022 Guidance FY 2022 Comments • Low consumer sentiment and adverse market developments in combination with extraordinary baseline effects to drive negative yoy growth in H1 2022 • Positive yoy growth rates expected in H2 2022, as baseline EUR 460m to 540m Revenue normalizes and consumer sen
Slide 27: We reiterate our 10-12% Adj. EBITDA mid-term target margin
We reiterate our 10-12% Adj. EBITDA mid-term target margin based on the proven scalability of our business model Adj. EBITDA margin [in % of revenue] 12% 10-12% 8% -2% to +3% FY 2020 FY 2021 Lower consumer Strategic growth Supply chain 2022 Normalizing Increase in Scale / operating Midterm sentiment
Slide 28: Summary and Q&A
Summary and Q&A
Slide 29: FY 2021 Summary Investment highlights
FY 2021 Summary Investment highlights The opportunity is massive Huge Home & Living market of EUR 120bn is still very early in eCommerce adoption FY 2021 Revenue: EUR 522m at 21% growth yoy Customer loyalty at the core The differentiating creative and inspirational core of Westwing drives FY 2021 Ad
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Slide 31: Appendix
Appendix
Slide 32: 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 33: 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 34: 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 Westwing Collection share in % of GMV 21% 22% 27% 25% 25% 22% 26% 28% 31% 32% 38% 37% Active customers in k 927 909 926 949 986 1,178 1,284 1,529 1,720 1,730 1,750 1,705 Numbe
Slide 35: Consolidated income statement
Consolidated income statement EUR m, in % of revenue FY 2020 FY 2021 Q4 2020 Q4 2021 Revenue 433 522 156 149 Cost of Sales -219 -266 -76 -78 Gross profit 214 257 80 71 Fulfilment expenses -86 -107 -29 -30 Marketing expenses -31 -49 -11 -14 General and administrative expenses -65 -79 -18 -16 Other op
Slide 36: Adjusted income statement
Adjusted income statement EUR m, in % of revenue FY 2020 FY 2021 Q4 2020 Q4 2021 Revenue 433 522 156 149 Revenue Growth yoy 62.0% 20.7% 76.1% -4.2% Cost of Sales -219 -266 -76 -78 Gross Profit 214 257 80 71 Gross Margin 49.4% 49.1% 51.3% 47.6% Fulfillment expenses -86 -107 -29 -30 Contribution profi
Slide 37: Segment reporting
Segment reporting DACH in EUR m FY 2020 FY 2021 Q4 2020 Q4 2021 Revenue 243 297 91 87 yoy Growth (in %) 60% 22% 75% -5% Adj. EBITDA 41 39 20 11 Adj. EBITDA Margin % 16.9% 13.1% 22.1% 12.2% International in EUR m FY 2020 FY 2021 Q4 2020 Q4 2021 Revenue 190 226 65 62 yoy Growth (in %) 64% 19% 77% -3%
Slide 38: Net Working Capital
Net Working Capital Net Working Capital (NWC) breakdown as of December 31, 2021 (EUR m) 11.5 12.1 54.9 -56.8 4.4 -17.4 Inventories Prepayments Trade & other Trade & other Customer NWC on inventories receivables payables prepayments Note: Unaudited. 38
Slide 39: Issued share capital
Issued share capital Share Information as of December 31, 2021 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 Treasur
Slide 40: Upcoming Events
Upcoming Events March 30, 2022 Jefferies 2nd Annual Pan-European Mid-Cap Conference May 11, 2022 Publication of quarterly statement Q1 2022 May 17, 2022 Bank of America Consumer eCommerce Virtual Field Trip May 18, 2022 Annual General Meeting for the 2021 financial year August 11, 2022 Publication o