• Preliminary revenues of EUR 22.9 to 23.1 million in Q4 2019; Revenue increase compared to Q3 2019 due to sales promotions and Christmas business; preliminary revenues of EUR 82.3 to 82.5 million in FY2019
• Preliminary adjusted EBIT of EUR -1.9 to -1.6 million (-8.3% to -6.9% margin) in Q4 2019; positive effect from VAT adjustment of EUR 1.7 million; preliminary adjusted EBIT in FY2019 -EUR -13.9 to -13.6 million (16.9% to -16.5% margin)
• Available liquidity EUR 8.4 million as of December 31, 2019; lower cash burn of EUR 1.3 million in Q4 2019 due to better operating results, VAT correction and lower net working capital
• Significant double-digit revenue growth and significant improvement in adjusted EBIT expected for 2020; Break-even based on adjusted EBIT targeted for Q1 2021
• Subscription period for capital increase from January 23 to February 5, 2020; Commitments of EUR 2.75 million including commitments by Bodyguard and Holland at Home

Sales growth due to sales promotions and Christmas business in Q4 2019

Based on preliminary financial figures, the Group generated sales of EUR 22.9 to 23.1 million in Q4 2019. This corresponds to growth of 24.1% to 25.2% compared to the third quarter (Q3) of 2019 (EUR 18.5 million), which results in particular from the Christmas business and successful sales campaigns in China and the DACH region (Germany, Austria, Switzerland). In FY 2019, the Group generated revenues of EUR 82.3 to 82.5 million (FY 2018: EUR 104.8 million) on the basis of preliminary financial figures. Business in China grew in Q4 2019, but was below the Group's original targets, including the subsequent opening of the second customs store in China, the establishment of marketing cooperation with Langtao and a lower purchasing volume to conserve the company's liquidity.

Improved adjusted EBIT and lower cash burn in Q4 2019; Positive impact of VAT correction for China business

Based on preliminary figures, the Group generated an adjusted (ber.) EBIT of EUR 1.9 to 1.6 million, which is a higher EBIT of EUR 1.9 million. EBIT margin of -8.3 % to -6.9 %. In FY2019, windeln.de achieved a ber. EBIT of EUR -13.9 to 13.6 million (-16.9% to 16.5% ber. EBIT margin). This is a significant improvement compared to the previous quarter (Q3 2019: EUR -4.7 million and -25.5%. EBIT margin) due to better operating performance and a recognized VAT adjustment of 1.7 million (ber. EBIT effect approx. EUR 1.4 million) for deliveries made in previous years from windeln.de to Chinese customers via so-called freight forwarders.
The Group's available liquidity amounted to EUR 8.4 million as of December 31, 2019. The change in available cash and cash equivalents amounted to EUR -1.3 million in Q4 2019. This is a significant improvement compared to the previous quarter and is attributable to the better operating performance, the lower net working capital as of December 31, 2019 and the payment already received from the VAT correction in the amount of EUR 0.9 million. For the current year 2020, the Group expects further inflows of at least EUR 2.1 million from the VAT correction, i.e. a total of at least EUR 3 million.

Cooperation with Bodyguard and Holland at Home with focus on Chinese market in 2020

windeln.de has signed term sheets with the companies bodyguardpharm GmbH ("Bodyguard") and Holland at Home B.V. ("Holland at Home") to expand a joint cooperation. Both companies have also committed themselves to acquiring shares in the context of the upcoming capital increase with subscription rights via binding declarations of commitment.
Bodyguard (www.bodyguardapotheke.com) is a German online pharmacy with strong cross-border e-commerce business to China (https://www.ba.de/). A major advantage of the future cooperation for windeln.de is the product procurement of medical and pharmaceutical products (OTC) from Bodyguard, especially for the Chinese market. The market for medical and pharmaceutical (OTC) products in China is estimated at 17.9 billion euros in 2020. The product range of windeln.de and Bodyguard is complementary and the same target group is addressed with young families. windeln.de intends to generate additional sales in the low double-digit million euro range in 2020 from the cooperation with Bodyguard.
Holland at Home (www.holland-at-home.com/en/) is a Dutch online supermarket that, in addition to its own online shop for China (https://cn.holland-at-home.com), uses more than 25 sales channels such as Hipac, Pinduoduo International, Little Red Book & Dingxiangmama to China. A major advantage of working together for windeln.de is the use of Holland at Home's sales channels. In addition, windeln.de has access to high-quality dietary supplements through The Holland at Home affiliate House of Nutrition (www.houseofnutrition.de). windeln.de intends to generate additional sales in the low double-digit million euro range in 2020 from the cooperation with Holland at Home.

Significant revenue growth and improvement in adjusted EBIT expected for 2020; Break-even based on adjusted EBIT targeted for Q1 2021

For 2020, windeln.de expects significant double-digit revenue growth and a significant improvement in adjusted EBIT. This is to be achieved in particular through the new cooperations with Bodyguard and Holland at Home as well as further efficiency projects such as the relocation of the warehouse in Germany and the outsourcing of the IT shop system. Due to lower than planned sales for the Chinese market in 2019 and the associated lower top-up point for 2020, the company's target of reaching break-even at the beginning of 2020 on the basis of adjusted EBIT must be postponed to the first quarter (Q1) of 2021. The final results for Q4 and FY 2019 as well as further details on the outlook for 2020/21 will be announced windeln.de with the publication of the consolidated financial statements on March 18, 2020.

Subscription period for capital increase from 23 January 2020 to 5 February 2020

windeln.de will carry out a capital increase with subscription rights over the next two weeks, in which the Company's share capital will be increased by up to EUR 5,171,144.00 from currently EUR 2,989,101.00 by issuing up to EUR 5,171,144 to up to EUR 8,160,245.00. The subscription price was set at EUR 1.20 per share, so that the maximum gross proceeds of the capital measure amount to up to EUR 6,205,372.80. With the proceeds of the issue, windeln.de intends to strengthen the company's liquidity position in order to cover the company's currently still negative operating cash flow until break-even is reached on the basis of adjusted EBIT, to finance the build-up of net working capital necessary for growth in China and to implement important projects to increase efficiency such as the outsourcing of the IT shop platform and the relocation of the central warehouse. To date, windeln.de has already received commitment agreements totalling EUR 2.75 million.
Matthias Peuckert, CEO, and Dr. Nikolaus Weinberger, CFO of windeln.de: "We made good progress in 2019 in terms of reducing our cost base and net working capital. From a liquidity point of view, it is very pleasing that we have received a first part of the VAT refund for the China business and that more will follow. On the revenue side, we had higher revenue targets for 2019, but are confident that we will grow in China in 2020 due to the cooperation with Bodyguard and Holland at Home and thus achieve break-even based on adjusted EBIT by the first quarter of 2021. The current capital increase is an important building block in achieving our goals."

Selected preliminary key figures for the fourth quarter of 2019 and the 2019 financial year