• Preliminary sales of EUR 76.1 million for continuing operations in 2020, which corresponds to growth of +8.6% compared to the previous year (slightly below the double-digit sales growth target)
• Target of moderate improvement of adjusted (ber.) EBIT in 2020 compared to the previous year was achieved based on preliminary financial figures
• Ber. EBIT break-even target for early 2021 will not be achieved as growth in China takes more time; About. EBIT break-even targeted for the full year 2022
• Further cost-efficiency measures to be implemented in 2021
• Available liquidity EUR 8.5 million as of December 31, 2020

Munich, February 1, 2021: Following the finalization of the preliminary financial figures for 2020, windeln.de SE ("windeln.de", "Group" or "Company"; ISIN DE000WNDL201 and DE000WNDL128) announced that consolidated sales for continuing operations increased from EUR 70.1 million in 2019 to EUR 76.1 million in 2020. This corresponds to sales growth of +8.6% compared to the previous year and is thus below the targeted double-digit sales growth target. Based on the preliminary financial figures, the company's sales in China grew from EUR 51.3 million in 2019 to EUR 56.0 million in 2020 (+9.2% year-on-year growth). Sales growth was lower than planned as market conditions in China - also in the 4th year. Quarter 2020 - were more challenging than expected and the development of new sales channels took more time. In addition, the process for duty-bearing deliveries from Germany to China had to be adapted and rolled out again in December 2020 after this delivery process was inactive for several months due to new regulatory and technical requirements of Chinese customs. Over the past year, windeln.de has built a local team in China, which is critical to the continued success of the Chinese business, as more than 70% of total sales are generated with the Chinese region. windeln.de successfully opened a new online shop on the Chinese market platform "JD.com" in December 2020. On January 29, the company also announced the appointment of Chris Reitermann as a member of the Supervisory Board, a highly experienced manager and CEO in Chinese e-commerce. The development in China in January of this year was promising and the company expects significant sales growth for the Group for the full year 2021.

Based on the preliminary financial figures, the ber. EBIT (i.e. EBIT adjusted for one-off/extraordinary expenses and income, if applicable in the reporting period) improved slightly in 2020 compared to 2019, which corresponds to the previously communicated target.

The company's available liquidity amounted to EUR 8.5 million as of December 31, 2020. The Company is evaluating financing options, including further financing in/from China.

Since the implementation of the growth plans in China takes more time, the ber. EBIT break-even target for early 2021 not achieved. The company has ambitious growth plans and aims to break even on the basis of the ber. EBIT for the full year 2022. This goal is supported by several cost-cutting measures that will be completed this year:

(i) Relocation of the central warehouse: The company will move its central warehouse in Germany from Großbeeren to Halle in the first half of 2021. The warehouse move was originally planned at the beginning of last year, but could not be carried out due to the insolvency of a logistics partner as a result of the outbreak of the corona pandemic. Following a new call for tenders, Radial GmbH ("Radial"), a 100% subsidiary of Belgian Post, was selected as the new logistics partner. The contract with Radial was signed in November 2020, starts in 2021 and has a term of four years. The costs for the warehouse relocation, including the costs for temporary parallel operation for two warehouse locations, amount to approx. EUR 600 thousand in 2021 (one-off). The company expects total savings of approximately EUR 750 thousand (annually) as a way as a way of moving the warehouse.
(ii) Outsourcing of IT shop and PIM: The Group has already completed the outsourcing of the product information management system (PIM) to InRiver and is currently outsourcing the self-developed IT shop platform to the external partner Spryker in order to reduce IT costs, increase the reliability of the systems and enable changes faster and more efficiently. The implementation for windeln.de's Tmall shop was successfully completed in August last year. The migration of the German, Swiss and Chinese shop will be completed this year. The estimated costs for IT shop outsourcing, including internal project costs, amount to approx. EUR 800 thousand in 2021 (one-off). The total cost savings associated with shop and PIM outsourcing amount to approximately EUR 500 thousand to EUR 750 thousand (annually) once all channels have been migrated.
(iii) Personnel and material cost savings: The company has significantly reduced its total workforce in recent years, from more than 400 active employees (full-time equivalents, VEs) in early 2018 to less than 200 at the end of 2020, despite the strong team building in Romania and China over the same period. Other (non-personnel) costs were also reduced, e.B. due to the office move in Munich or the reduction of Supervisory Board remuneration in 2020. In 2021, the company intends to further reduce its personnel and material costs.

Board members Matthias Peuckert, Sean Wei and Dr. Nikolaus Weinberger comment: "The year 2020 was special in many ways and presented our company with some challenges. We know that we owe it to prove that we are leading the company to profitability. However, we are convinced that we will achieve this goal and subsequently benefit from long-term and sustainable sales growth."