Westwing Group AG Trading Update: FY 2020 GMV growing to EUR 502m; Q4 y-o-y growth accelerating to 79%; Adj EBITDA expected around the upper end of EUR 37-48m FY 2020 guidance

• The fourth quarter concludes a very successful FY 2020 for Westwing with Gross Merchandise Volume (GMV) growing by 62% year-over-year to EUR 502m
• The number of Active Customers soared to 1.5 million per end of FY 2020 (+61% year-over-year), driven by increased loyalty of existing customers and very strong new customer acquisition
• Continued high growth rates in the seasonally strongest fourth quarter with Gross Merchandise Volume (GMV) up by 79% year-over-year to EUR 175m
• Steady increase of the strategic Own & Private Label share to an all-time high of 28% of GMV in the fourth quarter 2020 driving contribution margins
• Management expects to end up around the upper end of the full year Adj EBITDA guidance (9-11% Adj EBITDA margin, EUR 37-48m Adj EBITDA) in FY 2020

Munich, January 14, 2021 // Westwing, the leader in inspiration-based Home & Living eCommerce in Europe, announces preliminary and unaudited trading information for the fourth quarter and the full year 2020.

Based on an accelerated Home & Living eCommerce adoption, Westwing delivered a very successful year 2020. Westwing was able to fully leverage the accelerated Home & Living eCommerce adoption and grew its topline significantly, with Gross Merchandise Volume (GMV) growing by 62% year-over-year to EUR 502m for the full year 2020. Very positively, this growth was driven by both existing customers as well as strong new customer acquisition. Westwing benefitted from its extremely loyal customer base who showed even higher engagement and repurchase rates, driving a substantial portion of the growth in FY 2020. In addition, Westwing's organic focused marketing model provided the basis for a very strong new customer acquisition, with the number of new customers growing by 91% year-over-year for FY 2020. As a result, the number of Active Customers having made at least one order in the last twelve months increased to 1.5 million per end of FY 2020, growing by 61% compared to 0.9 million Active Customers at the end of FY 2019.

The Westwing business model proved its strength, robustness, and scalability during last year's stress test: The very strong growth was delivered at very high customer satisfaction and loyalty, with smoothly running technology and operations.

Building on this, FY 2020 proved the ability of Westwing to achieve long-term target profitability of more than 10% Adj EBITDA margin given very strong contribution margins in combination with significant operating leverage in G&A functions and single digit marketing ratio.

The seasonally strong fourth quarter concluded the successful year of 2020 with an accelerated GMV year-over-year growth of 79% to EUR 175m (Q4 2019: EUR 98m). Positively this growth was again recorded in both segments equally, as the DACH segment was growing by 78% in the fourth quarter 2020 and the International Segment by 82%, proving a strong development across the whole country portfolio.

The strategically important Own & Private Label share increased to an all-time high of 28% in the fourth quarter (+3 percentage points year-over-year), clearly showing the path towards the strategic target of 50% Own & Private Label share.

Based on the strong fourth quarter, Westwing confirms the growth guidance for FY 2020 (55-65% revenue growth compared to FY 2019) and expects to meet the upper part of that range, as FY 2020 revenue growth is expected to be approximately in line with GMV growth of 62% year-over-year. Furthermore, profitability has continued to be very strong throughout the fourth quarter. As a result, the Adj EBITDA guidance is confirmed and Management expects to end up around the upper end of the full year guidance (9-11% Adj EBITDA margin, EUR 37-48m Adj EBITDA) for FY 2020.

"This has been a very intense year, and I am extremely proud how well the team has delivered these outstanding results in those unprecedented times.", says Westwing CEO and Founder Stefan Smalla. "In 2020 we were able to prove how well the unique business model of Westwing is working at scale and that we are following the right strategy. We are fully focused on executing this strategy also in 2021 and to continue to pursue the massive opportunity ahead of us. To inspire and make every home a beautiful home."

Westwing will publish its full year results for FY 2020 and outlook for FY 2021 on March 30, 2021.

For further information, please visit Westwing's investor relations website at: ir.westwing.com

Note: All figures are unaudited.

About Westwing

Westwing is the leader in inspiration-based Home & Living eCommerce in Europe with EUR 267m of revenue in 2019. 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 80% of sales 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