Capital Markets Day 2021 - Westwing targets EUR 1 billion in revenue and more than EUR 100 million in Adj. EBITDA profitability by 2024/25

• Strategy and initiatives defined to grow to EUR 1 billion in revenue and a very strong profitability of more than EUR 100 million Adj. EBITDA by 2024/25
• Westwing is raising its long-term profitability target to 15% Adj. EBITDA, confirming the very attractive profitability of its consumer love brand strategy
• Strong financial start in the first quarter 2021 with a revenue of EUR 138m at 105% year-over-year growth and EUR 20m Adj. EBITDA at an Adj. EBITDA margin of 14%
• Positive outlook for 2021 confirmed: Revenues of EUR 510-550m (growth of 18-27% yoy) and Adj. EBITDA of EUR 42-55m (8-10% Adj. EBITDA margin) expected

Munich, May 12, 2021. Westwing, the European leader in inspiration-based Home & Living eCommerce, presents its "Strategy and targets 2024/25" at today's Capital Markets Day.

Strategy and targets 2024/25

The Home & Living market is still at a very early stage of eCommerce, which will enable strong online market growth through dynamic eCommerce adoption in the years to come. Based on this massive growth opportunity in its EUR 120bn market, Westwing announces its "Strategy and targets 2024/25".

With the multiyear strategic program "Westwing Customer Experience 2.0", the Company follows a clear and ambitious pathway to grow to EUR 1 billion in revenue by 2024/25. This growth target is combined with a strong profitability target based on Westwing's consumer love brand strategy. Westwing targets more than EUR 100 million Adj. EBITDA profitability annually by 2024/25. Furthermore, this high profitability will continue to result in strong cash generation to drive substantial financial value creation, based on Westwing's best-in-class cash conversion.

Next to growth and profitability targets, Westwing's strategy also includes a clear brand ambition: Westwing aims to be the most desirable consumer Home & Living brand for Home Enthusiasts, by creating the most inspiring customer experience and being its customers' most loved brand. This ambition will be underpinned by Westwing's core competencies: creativity and inspiration. To further strengthen this core, Westwing's creative team will grow from currently over 200 team members to over 400 team members by 2045/25.

"After a decade in the market, we are now ready to embark on the next chapter for Westwing," says Stefan Smalla, Founder & CEO of Westwing. "With our strategy and targets 2024/25 we have quantified the exciting opportunity for the coming years and developed a clear strategic pathway to EUR 1 billion in annual revenues. At the same time, we believe that this is only the beginning. Even with our targeted revenue of EUR 1 billion by 2024/25, we will be at less than 1% market share in European Home & Living. The long-term opportunity is massive, and we will invest decisively into profitable future growth".
 

Furthermore, Westwing is raising the long-term target profitability to 15% Adj. EBITDA on today's Capital Markets Day, confirming the very attractive profitability of its consumer love brand strategy. The pathway to meet the long-term target profitability is based on three strategic drivers.

Firstly, based on the proven scalability of Westwing's business model, profitability will increase with a growing number of customers and the scale effects those bring. Secondly, Westwing will drive the share of its Westwing Collection from currently 31% of GMV to the strategic target of 50%. The Westwing Collection is the highly profitable own brand of Westwing. Thirdly, Westwing will seize the value opportunity in its International segment, which currently has a significant profitability upside potential compared to the well-established and highly profitable DACH segment.

Strong financial start in Q1 2021

The Company's performance in the first quarter of 2021 proves how well the business model scales and how the consumer love brand strategy leads to highly attractive financial results. Westwing generated revenues of EUR 138 million (Q1 2020: EUR 68 million), achieving a very strong growth of 105% compared to the previous year. The Company's profitability improved significantly with an Adj. EBITDA of EUR 20 million (Q1 2020: EUR -1 million) and an Adj. EBITDA margin of 14.2% in Q1 2021 (Q1 2020: -1.8%). The Free Cash Flow in the first quarter of 2021 was EUR 14 million (Q1 2020: EUR -6 million), with a last-twelve-months Free Cash Flow of EUR 60 million at a 12% margin. Growth continues to be driven by high retention of existing customers as well as successful new customer acquisition, with a 102% increase of new customers compared to the first quarter of 2020.

Furthermore, Westwing released a trading update for the second quarter 2021 with GMV growth of c. 15% Q2 to date while comparing against very strong peak baseline of last year.

Based on strong Q1 2021 and Q2TD results, the guidance for FY 2021 of EUR 510-550 million revenue (18-27% year-over-year growth) and an Adj. EBITDA of EUR 42-55 million (Adj. EBITDA margin of 8-10%) is being confirmed.

Live broadcast of the Capital Markets Day

Today's Capital Markets Day of Westwing will be broadcasted via live stream starting at 3:00 PM CEST on the Company's investor relations website: https://ir.westwing.com. The recording of the live stream will be available thereafter at this site.

Note: All figures are unaudited.

About Westwing
Westwing is the European leader in inspiration-based Home and Living eCommerce with EUR 433m of revenue in 2020. Through its 'shoppable magazine', Westwing inspires its loyal Home Enthusiast customers with a curated product selection and combines that with gorgeous content. With unparalleled loyalty, Westwing is generating more than 79% of orders from repeat customers. Westwing's mission is: To inspire and make every home a beautiful home. The company was founded in 2011 and is headquartered in Munich. Westwing went public on the Frankfurt Stock Exchange in October 2018 and is active in eleven European countries.

Disclaimer
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 rely on these forward-looking statements as predictions of future events and the Company undertakes no obligation to update or revise these statements. The Company's actual results may differ materially and adversely from any forward-looking statements discussed in this press release due to a number of factors, including without limitation, risks from macroeconomic developments, external fraud, inefficient processes at fulfilment centres, inaccurate personnel and capacity forecasts for fulfilment centres, hazardous material / conditions in production with regard to private labels, lack of innovation capabilities, inadequate data security, lack of market knowledge, risk of strike and changes in competition levels.