Slide 1: The leading electronic retailer for gemstone jewelry in Europe
The leading electronic retailer for gemstone jewelry in Europe Investor Presentation Half year 2018 financial presentation
Slide 2: Table of contents
Table of contents Bi] summary H1 2018 Financials Outlook 2018 Appendix ue BW N
Slide 3: Highlights in H1 2018
Highlights in H1 2018 H1 H1 2018 2017 YoY% Revenues (€m) 72238 = 32,097 -8.6% total Segment 4148 hole 307.2% EBITDA (€m) “ vty - . Total Equity oa706 3195) -109% (€m) : , -10. Equity ratio (%) 54.0% 584% -4.4% Products sold 532,793 448,774 18.7% Active e171 79996 oom customers ' , . total comprehens
Slide 4: Table of contents Summary
Table of contents 1 Summary Byiize 3 Financials 4 Outlook 2018 5 Appendix
Slide 5: After a very successful launch in 2017 our B2B business has experienced declining sales
After a very successful launch in 2017 our B2B business has experienced declining sales Q2 2018 Quarterly revenues in M€ 2,500 2,036 2,000 1,500 1,119 1,000 634 - ll ) Q1 2017 Q2 2017 Q3 2017 Source: H1 2018 financial report, unaudited, derived from internal ERP-System 1,362 705 546 Q4 2017 Q1 2018
Slide 6: Cancellations increased significantly in Q1 and Q2
Cancellations increased significantly in Q1 and Q2 Cancellations as % of sales by month of booking Starting in Q1 2018 we have experienced an unexpected increase cancellations of orders Cancellations based on demand revenue 25% A thorough analysis has been 20% conducted and an action plan with more
Slide 7: Grossprofit margins have been under pressure since 2015
Grossprofit margins have been under pressure since 2015 Fx-rate loss of the € against the THB Labor cost increase in Thailand Lower fixed cost degression in the new factory than expected
Slide 8: elumeo has opened its integrated value chain to third parties
elumeo has opened its integrated value chain to third parties
Slide 9: Multiproduct has helped to increase the productivity of our airtime
Multiproduct has helped to increase the productivity of our airtime v/ © y a JUWELO Raw a iz In order to increase variety while reducing inventory at constant productivity we launched the new format “Multiproduct” Up to seven different pieces of jewelry can be presented at the same time This format
Slide 10: First tests in June 2018 have been encouraging
First tests in June 2018 have been encouraging 40% 35% 30% 20% 15% 10% June 19 June 22 June 23 June 24 June 25 % of daily total g BAirtime mRevenue Source: Derived from internal ERP-System
Slide 11: eCommerce has struggled as well albeit less than classic television
eCommerce has struggled as well albeit less than classic television Quarterly revenues in ME by sales channel in Germany 16.0 14.0 12.0 10.0 8.0 6.0 40 2.0 0.0 Ql a2 Q3 Q4 Qi Q2 Q3 Q4 Ql a2 Q3 Q4 Qi Qe 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 ecommerce MTV Source: H1 201
Slide 12: Mobile has seen the sharpest decline in our eCommerce business
Mobile has seen the sharpest decline in our eCommerce business Quarterly revenues in M€ by sales channel of German eCommerce business 7.0 6.0 Mobile 5.0 4.0 3.0 We c | © Bidding agent 2.0 = 1.0 ma . 0.0 @ Classic webshop Qi Q2 3 Q4 Qi Q2 Q3 Q4 Qi Q2 Q3 Q4 Qi Qe 2015 2015 2015 2015 2016 2016 2016 201
Slide 13: Branded collections have been launched on the classic webshop
Branded collections have been launched on the classic webshop considerably later than on TV..... October November January March May April May 2016 2016 2017 2017 2017 2018 2018 April November March March March April July 2018 2017 2018 2018 2018 2018 2018 oO ‘OF oO OF oO Oo .o taxceriscurn BASIC ama
Slide 14: Resulting in a lagged increase of performance in the webshop
....Fesulting in a lagged increase of performance in the webshop... Share of branded and unbranded products in webshop (DE, FR, ES NL) in demand revenue (‘000 €) Jan 2017 - June 2018 1000 900 800 700 600 500 400 300 200 100 m™Web Product Branded ™ Web Product Unbranded Source: H1 2018 financial repo
Slide 15: But also in an increasing average selling price in 2018
....DUt also in an increasing average selling price in 2018 Price/piece DE, IT, FR Jan - Jun 2018 actual + Jul 2018 FC vs. prior year 2017 60.00 50.00 40.00 30.00 20.00 10.00 —@—WEBSHOP DE = =@=WEBSHOP IT —®—WEBSHOP FR
Slide 16: Traffic: Germany constant, France and UK decreasing, Italy growing
Traffic: Germany constant, France and UK decreasing, Italy growing Sessions Germany, France, Italy, UK - Jan - Jul 2018 actual vs. prior year 2017 600,000 500,000 400,000 300,000 200,000 100,000 + & & e+ © \ e Ss 5S) es a? aX as y Sy SY a er LP PS » at ae Sa A od > S s S A 3 & ‘ ‘ S) oY ¢ ¥ Ds —®—WE
Slide 17: No clear positive effect on conversion rate after relaunch
No clear positive effect on conversion rate after relaunch Conversion rate in % Germany, France, Italy, UK - Jan - Jul 2018 actual in weeks In % 16 Relaunch 14 12 0.4 0.2 1 2 3 4 5 6 7 8 9 140 11 12 #13 #14 #15 #16 «17 «18 «19 20 «21 «22 «623 «624 «625 «26 «627 «628 «629 «(30 in weeks —_—DE ——IT UK
Slide 18: Cost of operations remain stable in H1 2018 vs H1 2017
Cost of operations remain stable in H1 2018 vs H1 2017 Development of operating expenses (EUR Mn.) 11.322 __ 11.393 Broadcasting and channel rental expenses IB Personnel and service expenses Sales and marketing expenses Hi 2017 H1 2018 Source: H1 2018 financial report, unaudited
Slide 19: Table of contents
Table of contents 1 Summary 2 Qi 2018 4 Outlook 2018 5 Appendix
Slide 20: Summary of H1 2018 results
Summary of H1 2018 results Group's total revenues (w/o UK) for H1 2018 decreased by -8.6% to EUR 29.3 million after EUR 32.1 million in H1 2017 * Significantly reduced B2B business = Requirement to reduce the capacity in the production = Reduced capacity resulted in lack of variety and declining rev
Slide 21: Statement of financial position of discontinued operations
Statement of financial position of discontinued operations 30 Jun 2018 31 Dec 2017 ~— Change EUR thousand | % of balance sheet total in% Assets Trade receivables 16 0.0% 216 04% -924% Other financial assets 4102 77% 159 0.3% >1.000% Other non-financial asscts 119) 0.9% 67) 01% 75.9% Cash and cash eq
Slide 22: Statement of income of discontinued operations
Statement of income of discontinued operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in% 30 Jun 2018 30 Jun 2017 in% Revenue 14 100.0% 1,700 100.0% -99.2% 62 100.0% 4,222 100.0% = -98.5% Cost of goods sold 90 651.4% 1127 _ 66.3% _ -92.0% 135 216.0% 3,588 80.2% _ -96.0%
Slide 23: H1 2018 vs. H1 2017 performance
H1 2018 vs. H1 2017 performance - Overview Revenues 32.4 —_—_, 29.3 H1 2017 H1 2018 a Total segment EBITDA and margin H1 2017 H1 2018 unaudited - in EUR million 1.2018 financial report Gross profit 43.3% 38.4% 13.9 -18.9% OO 11.1 H1 2017 H1 2018 =! oo, Comments * Strong decline in B2B led to lower c
Slide 24: Q2 2018 vs. Q2 2017 performance
Q2 2018 vs. Q2 2017 performance - Overview Revenues 17.4 27 -26.8% —__, Q2 2017 Q2 2018 a Total segment EBITDA and margin Q2 2017 Q2 2018 +0.2 a ~ -25.4% 12018 financial report , unaudited in EUR million Gross profit 43.4% 37.6% 75 ch -36.6% 48 i Q22017 Q22018 =! Comments = Strong decline in B2B led
Slide 25: Selected key data H1 2018
Selected key data H1 2018 EUR thousand Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH [unless indicated otherwise] in % 30.06.2018 30.06.2017 in % Revenue 12,729 100.0% 17,387 100.0% -25.8% 29,338 100.0% 32,097 100.0% -8.6% Product revenue by regions fabsolutely and in % of product revenuel Germany 10,382
Slide 26: Selected key data H1 2018
Selected key data H1 2018 EUR thousand Q2 2018 Q2 2017 QoQ 1 Jan - 1 dan - HoH [unless indicated otherwise] in% 30.06.2018 30.06.2017 in% Total assets! na 53,191 100.0% 54,709 100.0% 2.8% Total equity! na 28,706 54.0% 31,952 58.4% -10.2% [absolutely and in % of balance sheet total] Working capital?
Slide 27: Group segment reporting - continuing operations Jan - Jun 2018
Group segment reporting - continuing operations 1 Jan - 30 Jun 2018 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 27,392 93.4% 9,670 35.3% -3,794 -13.9% Sales division Others 1,945 6.6% 286 14.7% -8 -0.4% Group functions & eliminations 0 0.
Slide 28: Group segment reporting - continuing operations
Group segment reporting - continuing operations Q2 2018 Revenue Gross Segment- EUR thousand | % of (segment) revenue profit EBITDA Sales division Germany & Italy 12171 95.6% A113 33.8% -2,996 -24.6% Sales division Others 558 4.4% 29 5.2% -65 = --11.7% Group functions & eliminations ) 0.0% 641 na. -1
Slide 29: Table of contents
Table of contents 1 Summary 2 H12018 3 Financials P4 | outlook 2018 5 Appendix
Slide 30: 2018 Outlook
2018 Outlook On August 6" elumeo SE revised its forecasts for 2018 - reasons have been: = Significantly reduced B2B business and reduced capacity in the factory leading to lack of variety - we opened our integrated supply chain to third party suppliers = New multiproduct strategy delayed - full roll
Slide 31: Table of contents
Table of contents Summary H1 2018 Financials Outlook 2018 1 2 3 4 BS] acvendn
Slide 32: Statement of income of continuing operations
Statement of income of continuing operations
Slide 33: Statement of income of discontinued operations
Statement of income of discontinued operations
Slide 34: Split of selling expenses - continuing operations
Split of selling expenses - continuing operations Q2 2018 Q2 2017 QoQ 1Jan- 1 Jan - HoH EUR thousand | % of revenue in % 30 Jun 2018 30 Jun 2017 in % Broadcasting and channel rental costs 2,268 178% 2,073 11.9% 94% 4109 14.0% 4456 13.9% -7.8% Personnel expenses 1,750 137% 1,531 88% 143% 3,339 114% 3
Slide 35: Split of administrative expenses - continuing operations
Split of administrative expenses - continuing operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in % 30 Jun 2018 30 Jun 2017 in % Personnel expenses 1,060 83% 955 5.5% 11.0% 2,036 6.9% 1,928 6.0% 5.6% Depreciation, amortisation and impairment loss 170 13% 204° 12% = -16.
Slide 36: Total segment EBITDA of continuing operations
Total segment EBITDA of continuing operations Q2 2018 Q2 2017 QoQ 1 Jan - 1 Jan - HoH EUR thousand | % of revenue in% 30 Jun 2018 30 Jun 2017 in% Total segment EBITDA -5,255 -254% 220 1.3% <-1.000% _-4,148 -141% -1,019 -3.2% -307.2% Effects from foreign currency translati 98 0.8% 943 54% -89.6% -424
Slide 37: Consolidated statement of financial position
Consolidated statement of financial position ASSETS 30 Jun 2018 31Dec 2017 ~— Change EUR thousand | % of balance sheet total in% Non-current assets Intangible assets 714 13% 755 14% -5.A% Property, plant and equipment 8,968 16.9% 9,374 17.1% -4.3% Other financial assets 451 08% 394 0.7% 14.4% Other
Slide 38: Consolidated statement of financial position
Consolidated statement of financial position EQUITY & LIABILITIES 30 Jun 2018 = 31.Dec 2017 Change EUR thousand | % of balance sheet total in% Equity Issued capital 5500 103% 5.500 101% 0.0% Capital reserve 34,288 645% 34179 625% 0.3% Retained losses -15,285 -28.7% -11,452 -209% -33.5% Foreign curre
Slide 39: Consolidated statement of cash flows
Consolidated statement of cash flows Q22018 = 22017, aca 1Jan - 1Jan - HoH EUR thousand in% 30dun 2018 30Jun 2017 inx Earnings before taxes (EBT) of continued operations -3,717 +499 -845.4% -5,692 -2,034 -179.9% Earnings before taxes (EBT) of discontinued operations 42,734 -654 518.2% +2,168 -1399 2
Slide 40: Consolidated statement of cash flows
Consolidated statement of cash flows Q22018 = Q2.201/ Qo 1 Jan - ian - HoH EUR thousand in% 30Jun 2018 30Jun 2017 inx - Payments for investments in intangible assets - 0 ne -21 -7 190.8% - Payments for investments in property, plant and equipment -120 59 -1n4.a% -170 109 -e6.0% and property, plantan
Slide 41: Points of contact
Points of contact Executive Board Wolfgang Boyé, Don Kogen, Bernd Fischer, Boris Kirn, Thomas Jarmuske, Deborah Cavill, Anette Bronder, Roland Sand Investor Relations contact Claudia Erning Erkelenzdamm 59/61 10999 Berlin E-Mail: ir@elumeo.com Phone: +49 30 69 59 79-231 Fax: +49 30 69 59 79-650