• Revenue in Q1 2020 of EUR 14.9 million (Q1 2019: EUR 17.2 million) and adjusted EBIT in Q1 2020 of EUR -2.4 million (Q1 2019: EUR -3.0 million)
• Strong revenue in April 2020: Preliminary revenue of EUR 15.3 million from sales of healthcare products to business customers (EUR 7.1 million), high other revenues and VAT refund in China • Total available cash and cash
equivalents of EUR 9.1 million as of April 30, 2020; strong build-up of net working capital required for the Chinese business
• Target break-even on the basis of adjusted EBIT in the first quarter of 2021 remains unchanged

Munich, May 28, 2020: windeln.de SE ("windeln.de" or "Company"; ISIN DE000WNDL201) today released its financial results for the first quarter (Q1) 2020. The company generated sales of EUR 14.9 million in Q1 2020 (Q1 2019: EUR 17.2 million). The adjusted (ber.) EBIT amounted to EUR -2.4 million in the first quarter of 2020 (Q1 2019: EUR -3.0 million). In view of the ongoing divestment process of Bebitus (online stores in Spain, Portugal and France), Bebitus' published figures are reported as "discontinued operations". Preliminary sales for April (excluding Bebitus) amounted to EUR 15.3 million.

Sales development in the first quarter in DACH stable compared to the previous year, China lower due to product availability; April sales very strong

DACH sales amounted to EUR 4.7 million in Q1 2020 and were relatively stable compared to the same period of the previous year (Q1 2019: EUR 4.9 million). The focus for the DACH region continues to be on increasing profitability. DACH accounted for around 32% of Group sales in the first quarter of 2020. With sales of EUR 10.2 million in the first quarter of 2020 (Q1 2019: EUR 12.4 million), China accounts for around 68% of Group sales. Sales in China were lower than in the previous year, as product procurement, especially for the bonded warehouses in China, was curtailed for liquidity reasons before the capital increase was completed. The Bebitus business unit to be sold generated sales of EUR 2.5 million in the first quarter of 2020, which is significantly lower than in the same period of the previous year (Q1 2019: EUR 3.5 million), as the focus here was also on improving profitability.
The company's preliminary sales for April 2020 (excluding Bebitus) amounted to EUR 15.3 million. Approximately EUR 7.1 million in revenue resulted from the sale of healthcare products (related to Covid-19) from China to business customers. But even without these orders, April sales were strong at around 8.3 million euros. The delays in order processing in the German warehouse due to Covid-19 at the beginning of April no longer exist.

Operating contribution margin and adjusted EBIT improve year-on-year in the first quarter of 2020; Strong team building in China

The Group's gross profit margin (gross profit as % of sales) from continuing operations (excluding Bebitus Shops) was stable in the first quarter of 2020 at 26.1% compared to the previous year (Q1 2019: 26.3%). The ber. Fulfillment costs as a percentage of revenue decreased to 11.0% year-on-year in the first quarter of 2020 (Q1 2019: 16.6%). This is mainly due to the higher processing via our bonded warehouses and lower warehouse rental costs after the reduction of the product range. The contract with our existing service provider for the central warehouse in Germany will be extended due to the insolvency of Kids Fashion Group GmbH & Co. KG (Kanz) as the originally planned future service provider. With regard to the planned warehouse relocation, various options are currently being examined. The ber. Marketing costs as a percentage of sales remained stable year-on-year at 4.3% in the first quarter of 2020 (Q1 2019: 4.3%). The operating contribution margin (gross profit less ber. Fulfillment costs and ber. Marketing costs) amounted to EUR 1.6 million (10.8% of sales) in the first quarter of 2020, which corresponds to an improvement compared to the first quarter of the previous year (Q1 2020: EUR 0.9 million; 5.4% of sales), also due to a further VAT refund for China. The ber. other selling and administrative expenses in the first quarter of 2020 remained stable compared to the first quarter of the previous year despite the hiring of new employees in China and amounted to EUR 4.0 million (Q1 2019: EUR 4.0 million). In March, the company's Board of Directors appointed Xiaowei (Sean) Wei as a member of the Board of Directors. With this innovation, a new office was opened in Beijing / China and a local team was set up. As of today, windeln.de in China employs a total of 37 people. As a result, other selling and administrative expenses will be higher in the second quarter of 2020 than in the first quarter. Reported EBIT improved to EUR -2.2 million in the first quarter of 2020 compared to EUR -3.1 million in the first quarter of 2019. The ber. EBIT from continuing operations amounted to EUR -2.4 million in the first quarter of 2020 after EUR -3.0 million in Q1 2019.

Cash outflow reduced in the first quarter; successful capital increase in February; Sales growth in China requires the build-up of inventories / net working capital

In the first quarter of 2020, the operating cash outflow (incl. bebitus) of EUR 1.9 million compared to EUR 5.3 million in the first quarter of 2019 improved due to the improvement in operating profit and the reduction in net working capital. The Group's total cash position amounted to EUR 11.7 million as of March 31, 2020, which corresponds to an increase of EUR 3.3 million compared to December 31, 2019 (EUR 8.3 million) due to the capital increase successfully completed in February 2020, in which 5,171,144 new shares were issued. The subscription price was set at EUR 1.20 per new share, so that the gross proceeds of the capital measure amounted to EUR 6,205,372.80. Following the successful approval of the securities prospectus by the German Federal Financial Supervisory Authority (BaFin) on 14 May 2020, the new shares were admitted to trading on the regulated market of the Frankfurt Stock Exchange on 19 May 2020. The Group's total cash and cash equivalents were lower at EUR 9.1 million as of April 30 due to the build-up of inventories (net working capital). Such a build-up will continue to be needed to drive revenue generation in China. In particular, sales via the bonded warehouses in China lead to long cash conversion cycles.

Matthias Peuckert, CEO of windeln.de, and Nikolaus Weinberger, CFO of windeln.de: "In these challenging times related to Covid-19, we are excited to meet our customers' needs for a safe shopping experience and provide them with the products they need. With Sean as a new board member, we have begun to significantly expand the team in China to capitalizing on the great growth opportunities in China, although this leads to higher other selling and administrative expenses and requires high cash investments in net working capital. Already in April, we benefited from this increased focus on sales from product imports from China. Overall, our goal of breaking even on the basis of adjusted EBIT in the first quarter of 2021 remains unchanged."