windeln.de publishes first quarter 2020 and preliminary April 2020 figures

• Q1 2020 revenues EUR 14.9 million (Q1 2019: EUR 17.2 million) and Q1 2020 adjusted EBIT EUR -2.4 million (Q1 2019: EUR -3.0 million)
• Strong April 2020 revenues: preliminary revenues EUR 15.3m due to EUR 7.1 million sale of health products to business customers, higher other sale and China VAT refund
• Total cash available EUR 9.1 million as of April 30, 2020; high build-up of net working capital required for Chinese business
• Financial target to reach adjusted EBIT break-even in Q1 2021 unchanged

Munich, May 28, 2020: windeln.de SE (“windeln.de”, �

Revenue development in Q1 in DACH stable year over year, China lower due to product availability; April revenues very strong

Revenues for DACH amounted to EUR 4.7 million in Q1 2020 and were relatively stable compared to the previous year period (Q1 2019: EUR 4.9 million). Focus for the DACH region remains on increasing profitability. DACH accounts for approximately 32% of Group revenues in Q1 2020. With revenues of EUR 10.2 million in Q1 2020 (Q1 2019: EUR 12.4 million), approximately 68% of Group revenues are attributable to China. Revenues in China were lower than the previous year as product sourcing, especially for the bonded warehouses in China, was lowered for liquidity reasons before completion of the cap

Operating contribution and adj. EBIT in Q1 2020 improved year over year; strong build-up of team in China

The Group gross profit margin (gross profit as % of revenues) from continuing operations (ex. Bebitus Shops) was stable at 26.1% in Q1 2020 compared to the previous year (Q1 2019: 26.3%). Adj. fulfilment costs as % of revenues decreased year over year to 11.0% in the Q1 2020 (Q1 2019: 16.6%), mainly due to more fulfilment from our bonded warehouses and lower warehouse rental costs after the reduction of product assortment. The contract with the existing service provider of the current warehouse in Germany is being extended due to insolvency of the Kids Fashion Group GmbH & Co. KG (Kanz) as

Cash outflow in Q1 reduced; successful capital increase in February; revenue growth in China requires build-up in inventory/net working capital

In Q1 2020, the operating cash outflow (incl. Bebitus) of EUR 1.9 million was improved compared to EUR 5.3 million in Q1 2019 due to the improvement in operating result and reduction of net working capital. The Group’s total cash available was EUR 11.7 million as of March 31, 2020, which is EUR 3.3 million higher compared to December 31, 2019 (EUR 8.3 million) due to the successful capital increase finalized 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