• Good progress on restructuring since beginning of the year and further progress ahead
• Operational and financial improvements continue in fourth quarter; longer recovery of Chinese business delays adj. EBIT break-even to early 2020
• Capital reduction and capital increase to provide further funding

Munich, November 22, 2018: Since the beginning of the year, windeln.de SE (“windeln.de”, “Group” or “Company”) has made good progress on the restructuring of the Company and is continuing to do so. However, reaching adjusted EBIT break-even will take one year longer than previously targeted for early 2019, primarily due to the Chinese business not having reached previous year levels yet despite improvements in the fourth quarter. Therefore, the Management Board decided to convene an Extraordinary General Meeting on January 9, 2019, to resolve on an ordinary capital reduction by

Good progress on the restructuring since the beginning of the year

Since the beginning of the year, windeln.de successfully implemented several efficiency and profitability measures, including selling the unprofitable business in Eastern Europe and closing the loss making Italian shop. These measures result in a positive EBIT impact of approx. EUR 5 to 6 million annually. Additionally, the management team has been reduced, business department in all regions re-organized and headcount reduced from more than 400 to 218 active full-time equivalents (FTEs) by September 30, 2018. Furthermore, a new pricing mechanism, a new search tool, a pregnancy app, a baby s

Further progress ahead for both the Chinese and European business

The Chinese business was impacted by temporary stricter custom controls and product relaunches in the second and third quarter of this year but has started to gradually improve. In addition to this recovery, the Company pursues a product and channel diversification strategy: windeln.de will add the new category “Beauty”, one of the largest and fastest growing categories in cross-border e-commerce to China, as well as further market platforms in 2019. In this context, a second permanent bonded warehouse in China will be opened early 2019. The implementation of these strategic projects wi

Operational and financial improvements in Q4 2018; adjusted EBIT break-even target early 2020

windeln.de expects double digit % revenue growth in the current fourth quarter compared to the third quarter of this year due to major sales events in China (11.11 and 12.12) and in Europe (Black Friday) as well as the Christmas season impact. In addition, the Group expects further structurally improved margins, SG&A expenses and net working capital in the current quarter. However, full recovery of the profitable Chinese business to previous year sales levels will take longer. As a result, the Company expects that adjusted EBIT break-even will be delayed by one year to early 2020.

Capital reduction and capital increase with subscription rights

In order to provide funding for the Group’s ongoing restructuring, the Management Board decided to convene an Extraordinary General Meeting on January 9, 2019 to resolve on an ordinary capital reduction according to §§ 222ff. AktG (German Stock Corporation Act) by way of a reverse stock split of the Company´s shares. The capital reduction reduces the current share capital of the Company from EUR 31,136,470.00 by EUR 28,022,823.00 to EUR 3,113,647.00. The difference of EUR 28,022,823.00 is utilized to cover losses of the Company. The sum of equity and balance sheet remains unchanged.

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