DGAP-News

windeln.de SE: windeln.de announces preliminary financials for 2020 with 8.6% revenues growth and modest adj. EBIT improvement year over year; adj. EBIT break-even target updated to full year 2022; further cost measures to be executed - Seite 2

Based on preliminary financials, Group's adj. EBIT (i.e. EBIT adjusted for non-recurring/extraordinary expenses and income if applicable in the reporting period) has improved modestly in 2020 compared to 2019 which is in line with the announced target communicated earlier.

The Group's cash and cash equivalents were EUR 8.5 million as of December 31, 2020. The Company continues to explore further financing options including further financing in/from China.

As the execution of growth plans in China takes more time, the target of adj. EBIT break-even early 2021 cannot be reached. The Company has ambitious growth plans and now targets to reach adj. EBIT break-even on Group level in the full year 2022. This will be supported by measures that improve the Company's cost base and that will be completed this year:

(i) Central warehouse move: The Company will move its central warehouse in Germany from Großbeeren to Halle in the first half year of 2021. The warehouse move was originally planned at the beginning of last year but could not be done due to the insolvency of a logistics partner as a result of the outbreak of the Corona pandemic. After a new tender process, Radial GmbH ("Radial"), a 100% subsidiary of the Belgian Post, was chosen as new logistics partner. The contract with Radial was signed in November 2020 and starts in 2021 and has a term of four years. Costs for the warehouse move including costs for the temporary parallel operation for two warehouse locations amount to approx. EUR 600 thousand (one-time). The Company expects total savings of approx. EUR 750 thousand (annually) from the warehouse move.

(ii) IT shop and PIM outsourcing: The Company is in the process of outsourcing its self-developed IT shop platform to Spryker and has completed the outsourcing of its Product Information Management System (PIM) to InRiver to reduce IT expenses, to increase system reliability and to enable changes in a faster and more efficient way. The implementation for windeln.de's Tmall shop was already successfully finalized August last year. The migration of the German, Swiss and Chinese shops will be completed this year. Estimated costs for the IT shop outsourcing including internal project expenses amount to approx. EUR 800 thousand (one-time) in 2021. Total cost savings related to the shop and PIM outsourcing amount to approx. EUR 500 to 750 thousand (annually) once all channels are migrated.