Hawesko : ZWISCHENBERICHTE (hawesko holding quaterly communication 31.03.2024)

NO. 1 FOR PREMIUM WINES

QUA R T E R LY 2024 COMMUNIC AT ION A S

AT 31 M A RCH

quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

AT A GLANCE

OPERATIONAL HIGHLIGHTS	01/01-31/03	01/01-31/03
in € million		2024	2023
Sales revenue		144,1		153,1
adjusted EBIT		3,7		5,7
Reported EBIT		3,7		5,6
IMPORTANT KEY FIGURES
in %
Gross margin		44,6%		43,6%
EBIT margin (adjusted)		2,6%		3,7%
BALANCE-SHEET AND CASH FLOW DATA
in € million
Inventories		122,0		131,0
Receivables from goods and services		34,1		38,4
Net debt/liquidity		-48,0		-20,0
Working capital		56,0		54,9
Cash out-/inflow from operating activities		-3,8		-16,1
Free cash flow		-8,2		-23,1

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COMPELLING FORMATS FOR DELIGHTED CUSTOMERS

Extensive range for wine connoisseurs

Austria's leading

specialist wine dealer

German wines straight

from the producer

Traditional fine

wine trader

Italian wines and lifestyle

Jacques' ocations

and online offerings

The best wines

from Spain

Rare and top wines from all

over the world

Excellent wines for Sweden

	Wine individuality in the premium
International wine variety	segment	Top wines from Italy

Premium portfolio for highest	Omnichannel premium retailer	Exquisite spirits portfolio	Selected Bestseller
quality demands	in the Czech Republic

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

A WORD FROM THE BOARD

Dear Shareholders,

Dear friends of the Hawesko Group,

In the first three months of the new financial year, sales of the Hawesko Group were down on the same period of the previous year in a challenging economic environment, with customers continuing to hold back on consumption. At € 144 million, sales fell short of the 2023 figures by 6 per cent. The Group generated an operating result from operating activities (adj. EBIT) of € 3.7 million and an operating EBIT margin of 2.6 per cent. This - in comparison to the previous year - weaker start to the financial year is also due to the fact that the public holiday constellation had a negative impact on the number of working days.

Sales in the retail segment slightly exceeded the previous year's level at the end of March, contributing around 35 per cent of the Hawesko Group's total sales at € 50.8 million. After a rather subdued start in January due to the weather conditions, the trend in the shop business stabilised in the following weeks, exceeding that of the previous year. This development is also based on a slight increase in customer frequency and average sales. In contrast, the online shops of the retail companies Jacques' and WEIN & CO were less robust. In some cases, significant declines had to be accepted. This is highly comparable with the overall development of the Hawesko Group's e-commerce segment and reflects the consumer mood in e-commerce. Increased purchase prices were passed on to customers with a sense of proportion. We also succeeded in increasing the gross profit margin overall by optimising the product range and assortment policy, among other things. Fortunately, this approach did not have any recognisable inhibiting effect on purchasing in the generally difficult environment. Rising costs, particularly in wine purchasing and for service providers, were at least partially offset by this approach to gross profit. The Operating EBIT in the Retail segment totalled € 2.6 million in the first quarter, around half a million euros below the previous year's figure.

At € 43 million, sales in the B2B segment fell short of the 2023 reference value, although this was more pronounced than we had expected. The percentage shortfall was 10 per cent and was influenced, among other things, by a weak phase before Easter. This development resulted from a clear reluctance on the part of major customers in Germany and abroad, the hotel industry, as well as the specialised and food retail trade. It became apparent that our partners were focussing their business policy on the short term: The volume of wine stocks was reduced slightly and, overall, purchases were made more in line with demand - adapted to the customers' weak consumption. The pleasing increase in the gross profit margin could not compensate for the degression effects resulting from the sales trend. Overall rising costs, including those of external partners in the area of logistics, were partially offset. In the B2B segment, the operating result was therefore at a low level of € 0.7 million.

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

The E-Commerce segment also recorded a decline in sales. Sales reached the € 50.2 million mark, down 8 per cent on the previous year. The reasons for this include - in addition to the unfavourable constellation of working days mentioned above - backlogs in the delivery and invoicing of orders. These backlogs could only be reduced at the beginning of the second quarter. This was due to final relocation activities as part of the expansion of our logistics centre. At the same time, the new logistics set-up has laid the foundation for further optimisation of processes and costs.

Despite this, there is still no recognisable trend reversal towards growth in the E-Commerce segment, neither in the industry as a whole nor in the development of our formats. There are initial signs that the declines are weakening noticeably and that the trough could be reached in the first half of the year. For the year as a whole, and in the longer term, we expect this segment to move sideways, with slight growth under favourable conditions. The E-Commerce segment's operating result totalled € 2.1 million, falling short of the previous year's figure by € 0.7 million, despite an improvement in gross profit.

The significant increase in costs in the previous financial year continued at a slightly lower level across all companies, although this was countered with tightly controlled price increases. Gross profit was also increased gradually and sustainably. In order to permanently manage the rise in costs, all companies developed measures to implement very strict cost discipline, increase internal productivity and optimise working capital. As a result, inventories are significantly lower than in the previous year. In the opinion of the Executive Board, internal optimisation is the foundation for a more offensive product and supply policy implemented in line with economic rationality. This approach will have a positive impact on business development in the long term, particularly if the economic situation improves. In addition, our initiatives to increase the use of artificial intelligence and the expansion of our offerings in the low/no-alcohol sector have a promising effect on the Group's performance.

Sales are expected to grow slightly for the financial year as a whole. Even if a noticeable upturn in the business environment cannot be assumed in the short term, it is expected that catch-up effects from the weak first quarter will become apparent over the rest of the year and that the measures planned for the end of the year will bring an overall improvement. In terms of earnings, we expect that at least the previous year's operating result will be achievable. The structural improvement in the gross profit margin and continued cost discipline, which will increase internal efficiency and productivity, will make a significant contribution to this.

Even though the challenges remain great, we believe we are still well equipped! Above all, the trust placed in us by our customers and shareholders strengthens us in our actions and in pursuing our chosen path in a level-headed and continuous manner.

Your Executive Board

Thorsten Hermelink

Alexander Borwitzky

Hendrik Schneider

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

INTERIM SITUATION REPORT

FRAMEWORK CONDITIONS

According to a recent forecast by the International Monetary Fund (IMF), the outlook for the global economy has improved slightly and global economic growth of 3.2 per cent is expected. The global economy is still considered to be resilient and growth stable. At the same time, inflation is expected to fall. However, the IMF has lowered its GDP forecast for Germany to 0.2 per cent. The IMF is therefore forecasting the weakest growth for Germany of all the leading western G7 industrialised nations. According to the IMF, as an export nation, Germany is suffering more than other countries from the overall weak global trade and is also struggling with high energy prices.

After consumer sentiment deteriorated sharply in January, this negative development at the beginning of the year did not prove to be the start of a further downward trend. Despite a slight increase in the propensity to buy, consumer optimism remains subdued and is still below the levels seen before the coronavirus crisis. Although consumers' propensity to buy is rising again slightly, their propensity to save is also increasing. This is reflected in the stable footfall in bricks-and-mortar retail, while footfall in online retail is declining slightly. The starting point for the increase in the propensity to buy is the expected increase in consumer income, as well as the expected further decline or stable inflation. At the same time, there is still a certain degree of uncertainty among consumers, whereby they are focussing on building up a financial cushion.

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

EXPLANATION OF THE BUSINESS PERFORMANCE

EARNINGS SITUATION

In the period from 1 January to 31 March 2024, the Group generated sales of € 144.1 million, down 5.9 per cent on the previous year. Sales in the e-commerce and B2B segment declined compared to the previous year, while sales in the retail segment remained at the previous year's level thanks to stable customer demand.

The retail units had to contend with lower customer frequency at the beginning of the year due to weather- related influences such as regional flooding in Germany and Austria, which was made up for over the course of the quarter.

The E-Commerce segment recorded a decline in sales of 8.1 per cent compared to the previous year. In addition to a high level of customer reticence, the discontinuation of business to Sweden had a negative impact on sales development (€ -0.8 million). Customer restraint was reflected not only in lower customer frequency, but also in lower sales per order. Delays in the commissioning of certain areas of the new logistics centre in Tornesch also meant that delivery performance was not at the desired level and orders could not be invoiced.

The B2B segment also felt the effects of weak customer demand and recorded 9.9 per cent lower sales than in the previous year. Sales in both Germany and the foreign units were below the previous year's level at the end of the quarter. In the foreign units, the disproportionately high decline in sales at Global Wines & Spirits had a particularly negative impact on the segment's performance. In addition to the loss of a brand, changes in regulatory requirements regarding alcohol tax led to the decline. In the German units, less promotional business was transacted with food retailers (LEH) compared to the previous year due to the focus on increasing margins. In addition, price negotiations with some major food retail customers could not be finalised, resulting in some delivery stops.

The average bottle price increased in all three segments in the first quarter compared to the previous year. Active cost management, particularly in the e-commerce and B2B segments, led to a positive cost trend in the first quarter and thus to a decline in total costs across all segments. However, it was not possible to fully offset the decline in sales due to the significant drop in sales volumes.

The operating result (adj. EBIT) totalled € 3.7 million in the first quarter, down € 2.0 million on the previous year. The decline in EBIT is due in particular to weak market conditions, consumer restraint and a high level of uncertainty among companies and households. Even though experts have predicted a slight recovery in economic output for 2024, a noticeable macroeconomic recovery is not expected until the second half of the year at the earliest. This is reflected in the sales trend in the e-commerce and B2B segments in particular and could not be compensated for by lower costs, including in the marketing area of the e-commerce segment and in the freight and logistics costs of the other two segments, to the detriment of profitability in the first quarter.

The Group's operating EBIT margin for the first quarter was 2.6 per cent (previous year: 3.7 per cent).

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

In relative terms, the gross margin rose from 43.7 per cent in the previous year to 44.5 per cent. While the margin in the Retail and B2B segments remained almost constant, the gross profit margin in the E-Commerce segment rose by 1.5 percentage points.

REVENUE, INCOME AND EXPENSES	01/01-	01/01-		Change
€ '000		31/03/2024	31/03/2023		abs.	rel.
Sales revenue		144.140		153.118		-8.978			-5,9 %
Cost of materials		79.945		86.276		-6.331			-7,3 %
GROSS PROFIT		64.195		66.842		-2.647			-4,0 %
Other operating income		4.037		4.327		-290			-6,7 %
Personnel expenses		19.011		19.225		-214			-1,1 %
Depreciation and amortisation		6.172		5.802		370			6,4 %
Expenses for advertising		10.006		11.132		-1.126			-10,1 %
Expenses for commissions		10.028		10.189		-161			-1,6 %
Freight and logistics expenses		8.810		9.721		-911			-9,4 %
Miscellaneous other operating expenses		10.530		9.388		1.142			12,2 %
OPERATING RESULT (ADJUSTED EBIT)		3.675		5.712		-2.037			-35,7 %

Other operating income totalling € 4.0 million (previous year: € 4.3 million) mainly includes rental and lease income from Jacques' Partner. The decrease of 6.7 per cent is mainly due to a special effect in the previous year. At the beginning of 2023, one Jacques' shop changed its retail space at the landlord's request in exchange for a payment of around € 0.2 million before the official end of the lease.

Personnel expenses in the Group fell by 1.1 per cent to € 19.0 million, in particular due to declining developments in the e-commerce and B2B segment, and amounted to 13.2 per cent (previous year: 12.5 per cent) of revenue. The decline in personnel expenses in the e-commerce and B2B segment is attributable to a small number of employees as part of the personnel measures adopted in the previous year.

Advertising expenses at the end of the first quarter of 2024 were significantly lower than in the previous year. The main driver of advertising cost savings remains the e-commerce segment, where printing costs for advertising materials in particular were saved. At 6.9 per cent, the advertising cost ratio is therefore around

0.4 percentage points lower than in the previous year. Due to the high relevance of new customer acquisition with regard to the future business development of the e-commerce segment, advertising expenditure was flexibly adjusted to consumer sentiment in order to maximise advertising efficiency. No fundamental or across-the-board cuts were made to the budget.

Commission expenses fell slightly in the first quarter compared to the same period of the previous year. Commission from partners of Jacques' shops, which make up a large part of the item, remained at a constant level in line with the sales trend at Jacques'. By contrast, sales commissions in the B2B segment fell slightly.

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

Freight and logistics expenses fell as a result of lower e-commerce and B2B sales. However, in terms of the cost ratio, cost increases were already recognisable in the first quarter, particularly for logistics service providers in the e-commerce segment.

Miscellaneous other operating expenses mainly include IT costs (€ 2.5 million), occupancy costs (€ 1.8 million), vehicle and travel expenses (€ 1.1 million), other personnel expenses (€ 1.0 million), tasting costs (€ 0.7 million) and legal and consulting costs (€ 0.6 million). In the Group, these increased by 12.2 per cent in the first quarter compared to the previous year. This was driven in particular by other personnel expenses (€ +0.3 million), which rose year-on-year due to the increased number of external employees for the start-up phase of the new logistics centre in Tornesch. IT costs also increased compared to the previous year due to higher licence fees (€ +0.2 million).

		01/01-	01/01-
€ '000		31/03/2024	31/03/2023
OPERATING RESULT FROM OPERATING ACTIVITIES (ADJUSTED EBIT)		3.675		5.712

Restructuring expenses

Other adjustments

0

-10

-52

-41

RESULT FROM OPERATING ACTIVITIES (REPORTED EBIT)		3.665		5.619

At € -1.6 million, the financial result in the reporting period was around € 0.4 million lower than in the previous year and mainly includes higher interest expenses for borrowed capital (€ 0.6 million) and lease financing (€ 1.2 million) than in the previous year.

The tax expense amounts to € 0.7 million (previous year: € 1.4 million), which corresponds to a tax rate of 31.7

per cent (previous year: 31.8 per cent).

The consolidated net income attributable to the shareholders of Hawesko Holding totalled € 1.4 million (previous year: € 3.1 million). The resulting earnings per share thus totalled € 0.16 (previous year: € 0.33). This was based on a number of shares of 8,983,403 in the reporting period (unchanged from the previous year).

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quarterly communication as at 31 march 2024

HAWESKO HOLDING SE

FINANCIAL POSITION

ASSETS					Change
€ '000		31/03/2024	31/03/2023		abs.	rel.
Bank balances and cash on hand		18.756		11.396		7.360			64,6 %
Trade receivables		34.058		38.428		-4.370			-11,4 %
Inventories and advance payments on inventories		135.168		146.227		-11.059			-7,6 %
Fixed assets		214.527		213.600		927			0,4 %
Other assets		30.351		25.628		4.723			18,4 %
TOTAL ASSETS		432.860		435.279		-2.419			-0,6 %

CHANGES COMPARED TO THE PREVIOUS YEAR'S REPORTING DATE OF 31 MARCH 2023

The balance sheet total as at 31.03.2024 totalled € 432,9 Mio. and is therefore € -2,4 Mio. or -0,6 Prozentper cent below the previous year.

Bank balances and cash in hand increased by € 7.4 million compared to the previous year. Trade receivables declined in line with sales revenue (€ -4.4 million).

The € 11.1 million decrease in inventories is primarily due to the continued rigorous inventory management in all units. In addition, more variable order management at suppliers also led to a reduction in inventories.

Fixed assets remained almost constant compared to the previous year. The activation of the logistics hall led to an increase in land and buildings of € 6.6 million compared to the first quarter of the previous year. At the same time, the impairment of the goodwill of Wein & Co. in the third quarter of 2023 in the amount of € 8.2 million led to a decrease in intangible assets, which was not yet included in the first quarter of 2023.

Other assets include the investment Dunker Group OÜ, Tallinn, which has been accounted for using the equity method since the fourth quarter of 2023 in the amount of € 7.4 million. This was offset by current other tax refund claims, which were lower than in the previous year, and lower receivables from loans granted.

CHANGES COMPARED TO THE REPORTING DATE OF 31 DECEMBER 2023

millionIn c mparison with the value as at 31.12.2023 (€ 444,6 Mio.), the balance sheet total decreased by € 11.8 as at the reporting date. Trade receivables decreased by € 15.8 million. Inventories increased by € 1.3

million. Due to the strong seasonal fluctuations of the business model, inventories generally reach their lowest level in December and trade receivables their highest. Bank balances increased by € 1.6 million.

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