DGAP-Adhoc

windeln.de AG: windeln.de Initiates Set of Measures to Focus its Business Activities, Improve Processes, and Increase Profitability

windeln.de AG / Key word(s): Strategic Company Decision

28.07.2016 01:00

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Munich, Germany, July 28, 2016. windeln.de AG is launching a comprehensive
set of measures including the closing of Nakiki's shopping club business,
relocating the central warehouse and focusing the product range on its
largest 290 suppliers, who represent more than 95% of windeln.de's sales
with about 60,000 products. Thereby windeln.de group will reduce its
complexity considerably while maintaining a full product range.
Additionally, further efficiency and cost benefits will be gained by
measures to accelerate integration of the Southern and Eastern European
online shops bebitus and feedo, centralize purchasing and automate
functions throughout the company.

Implementation of this set of measures will be supported by management
changes. Jürgen Vedie has been taken on as the new COO, a position that he
previously held at Zooplus. Also the management team for windeln.de shop's
business with German and Chinese customers will be realigned on the second
level.

By closing Nakiki's shopping club business the windeln.de team will be
reduced by 100 employees (approx. 22 % of employees in Germany). One-off
restructuring costs will amount to ca. EUR 2 million, which will be
recognized as expenses in 2016 and 2017. The cumulative positive EBIT
effects that the set of measures will produce (including measures already
communicated and initiated), are estimated to total more than EUR 65
million gross up to the end of 2019 or approx. EUR 20 million per annum in
full run rate.

Without Nakiki's shopping club business, management anticipates according
to the guidance announced in May, that sales from ongoing operations will
increase by 25% from EUR 161 million to EUR 200 million in the course of
2016. The forecast for adjusted EBIT margin from ongoing operations in
fiscal year 2016 is in the range of -10% to -12%.

According to preliminary figures, windeln.de group (not including Nakiki)
achieved year-on-year growth of 35% and an adjusted EBIT margin of -14% in
the first half of the year, which meets expecations in light of the
introduction of a new ERP program in the second quarter, and also
regulatory changes in China and related customer uncertainty.

Note: "Adjusted EBIT" is not a parameter in accordance with IFRS.
Information on the calculation of adjusted EBIT are shown in the Annual
Report 2015 windeln.de AG.


Contact:
windeln.de AG
Alexandra von Kempis
Head of Investor Relations
Hofmannstr. 51
81379 Munich
[e-mail]
[phone]


28.07.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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Language: English
Company: windeln.de AG
Hofmannstr.51
81379 Munich
Germany
Phone: 089 / 416 17 15-0
Fax: 089 / 416 17 15-11
E-mail: [e-mail]
Internet: www.windeln.de
ISIN: DE000WNDL110
WKN: WNDL11
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart,
Tradegate Exchange

End of Announcement DGAP News-Service

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