New strategic route leads to growth significantly outpacing bedding market.
Full-year EBITDA (including IFRS 16) grew by 57.5% to € 33.4 million in 2020 with net profit of € 7.9 million.
Net cash generation amounted to € 19.8 million.
2020 sales amount to € 222.1 million representing a like-for-like uplift of 21.2% across all businesses.
Order intake for the Group grew like-for-like by 24.8%, leading to record high order book of 24.8 million on 31 December 2020 (up 19% vs. 31 December 2019).
Strong omni-channel approach drives online sales up by 86.5% like-for-like, leading to a channel share of 14.8% for the full year.
Gross margin further increased to 54.9% across the Group.

The table below shows the key figures for the full-year 2020, which comprises Beter Bed in the Benelux, Beddenreus in the Netherlands, Sängjätten in Sweden and our wholesale division DBC.

Key figures continuing operations 2020 2019
Revenue (in € million) 222.1 185.8
EBITDA including IFRS 16 (in € million) 33.4 21.2
EBITDA excluding IFRS 16 (in € million) 19.2 9.4
EBIT (in € million) 12.6 (0.4)
Net profit/(loss) from continuing operations (in € million) 7.9 (4.2)
Number of stores at year-end 151 161
Number of employees (FTE) at year-end 1,027 1,005
John Kruijssen, CEO of Beter Bed Holding N.V., comments:
"The COVID-19 outbreak significantly impacted society over 2020. Beter Bed Holding immediately adapted to this new
reality, creating momentum to develop positively, commercially and financially. While our first priority remained with
the health and safety or our employees and our customers throughout this unprecedented time, we geared the
organisation to the new economic reality, further fine-tuned our strategic direction and significantly improved the
level of digitalisation throughout the Group. The bedding market has been performing strong over 2020, with
consumers spending more on their quality of sleep. In this growing market, we have further increased our market
share and strengthened our position. We have shown almost 20% growth in revenue with costs tightly under control, further improving our margins and returning back to net profit. At the same time, we have launched several initiatives
to further increase our sustainability, and we will publish a revitalised CSR strategy mid-year, with new stretching targets to strive for. I am very proud of my Beter Bed Holding colleagues showing responsibility and decisiveness so
that our operations continued to be safe and developed even further, which gives us, despite the current lockdowns, confidence for the future.”

Number of stores
The table below shows the development of the number of stores in 2020.
Number of stores 1-1-2020 Opened Closed Franchise 31-12-2020
Beter Bed Netherlands 83 2 1 - 84
Beddenreus 34 2 2 - 34
Beter Bed Belgium 17 1 1 - 17
Total Benelux 134 5 4 - 135
Sängjätten 27 - 8 3 16
Total 161 5 12 3 151

COVID-19 update
The current lockdown and the limited visibility on the duration thereof, combined with the more generic COVID-19
developments, affect all of us. It is difficult to predict how 2021 will unfold, although it is already clear that the first
quarter has been hugely impacted through the closure of our physical stores. The vaccines in the various countries might bring some relief. Nevertheless, consumer confidence continues to be depressed and the economy volatile.
We continue our focus on cost control, disciplined capital spend and strict cash flow management, and at the same time we further increase our investments in our online channel and further digitalisation. Active stock and supplier
management is in place in order to manage disturbances caused by the lockdown. Precautionary measures are taken
and constantly reviewed to ensure safe working and, when possible again, safe shopping conditions.

Online – Digitalisation
2020 marked a historic transformation for the digital activities, mainly in the Benelux. Online order intake has doubled compared to last year.
COVID-19 impact in customer behaviour has sparked further acceleration of digital activities. Deliberate actions were
taken to bring investments forward in technology, people and a flexible deployment of highly specialised online agencies.
From a marketing perspective, initiatives have been taken such as flexible digital marketing investments based on
customer market demand to make sure we are present where the customer is looking for us. Increased measurements and KPIs have been further developed to be able to model, forecast, and better assess (digital)
marketing investments and logistic costs into predictive P&L impact. These efforts aim to drive top line growth, and
have already led to significantly improved category margins, digital marketing efficiency (return on ad-spend), and online profitability.
Besides the significant steps forward in digital marketing, our new state-of-the-art web platform was launched in Q3,
resulting in shorter website development release cycles. With this ability, enhanced and customer friendlier features
were quickly launched which improved website speed and mobile- and user-experience, and resulted in a significant conversion uplift.

The strong growth in online sales necessitated additional investments in supply chain warehousing and delivery as
well as after-sales customer care and self-service capabilities. Finally, especially Benelux also benefited from its active
presence on third party marketplaces such as Amazon, Bol.com and Wehkamp, which showed an overall market demand increase across the board.

Benelux
Benelux business experienced strong growth, driven by the solid performance of ourretailstores, despite the COVID-19
related disruption by lockdowns in Belgium and Netherlands, and the growth in our online proposition. The pandemic has fundamentally altered consumer behaviour and retail operations, making digital adoption and transformation a
necessity. We have proven to be well underway in achieving this digital transformation to become a true omnichannel retailer.
Stores in Belgium closed twice for a total of 13 weeks, however, sales lost during the mandatory closing have
completely been recovered by strong online performance which continued to grow within this timeframe, as well as increased offline sales due to strong marketing campaigns and commercial activities once stores reopened.
The development of our customer value proposition 'Beter Bed, Better Sleep, Better Life' has continued in 2020 despite the pressure caused by COVID-19.
The importance of bettersleep for better life is underpinned by more than 2,000 scientific studies: bettersleep makes
people healthier, more energetic, more social and happier. Beter Bed's own research shows that a large group of people do not always recognise or acknowledge the importance of sleeping well. An average person spends only € 2
a week on sleeping, while we spend as much as one third of our lives in bed, showing the potential of our market.
Building on 35-years of experience as a sleep specialist, we dedicate our knowledge and resources to helping customerssleep better and increasingly use data and digitaltoolsto improve ourservice. During this quarter, Beter Bed
will introduce a mattress in its stores that uses sensors to analyse the support required for the perfect sleeping
comfort, depending on the customer's body mass, length and weight. This tool will support our sleep consultant in advising customers to make better choices. This strategy has been kicked-off by the 'Slaapkoppen' (Sleepy heads)
campaign, launched on 14 December 2020.

New Business
New business comprises DBC’s wholesale business and Sängjätten in Sweden.

DBC
Volumes to Beter Bed and independent third party retailers significantly improved in 2020 as a result of the active
commercial approach, qualitative leveraging of the M line brand and a supportive attitude towards dealers to help
them in these unprecedented timesin retail. As a result of COVID-19 the international wholesale business experienced
delays in tender processes. Nevertheless, DBC was able to sign a number of new customers, including the DeRUCCI agreement announced in Q4 2020. The funnel of prospectslooks promising for 2021 and further innovations are in the
pipeline, to materialise throughout 2021.

Sängjätten
The Swedish business implemented the newly designed plan across the network, rightsized the organisation's
network and support organisation. Throughout the year we experienced that customers appreciated the new stores
and new ranges with local, international and our own brands very positively. Both online and in-store sales showing like-for-like growth, proof of the improved position of Sängjätten as a sleep specialty store in the Swedish market.

Financial review
Revenue
Group revenue from continuing operations in 2020 was € 222.1 million, which is 19.5% higher compared with
€ 185.8 million in 2019, with like-for-like revenue growth of 21.2%. Both the Benelux and the New Business operations
contributed to this revenue growth. The Benelux reported significant year-on-year revenue growth of 21.1%, with like-for-like revenue growth of 20.7%, whereas New Business, which comprises Sängjätten in Sweden and the DBC wholesale business, delivered year-on-year revenue growth of 8.7% with like-for-like revenue growth of 25.3%. The
Group’s online activities have increased significantly, at a growth rate of 86.5%. From a regional perspective, 88% of
revenue in 2020 was generated in theNetherlands(2019: 85%), 5% in Belgium(2019: 6%) and 7% in Sweden (2019: 9%).

Gross profit
Gross profit as a percentage of revenue increased to 54.9% compared with 53.0% last year. Cost of goods
improvements were mainly realised by reallocated sourcing and re-engineering of products. As a result of higher
revenue at a higher gross margin, gross profit for the year increased by 23.8% to € 121.9 million, compared with € 98.5 million in 2019.

Operating expenses
Total operating expenses for 2020 were € 109.2 million, compared with € 105.4 million in 2019. Operating expenses
increased much less than revenues, and the increase was mainly driven by other operating expenses, due to higher marketing investments to grow the online and offline order intake, and logistic costs due to the growth of the order
intake. Other operating expenses increased by € 4.1 million to € 40.7 million in 2020 (2019: € 36.6 million).
Total personnel expenses amounted to € 47.8 million, compared with € 47.1 million last year. This was mainly explained by a higher number of employees in the Benelux to fulfil the supply chain activities related to the increased
order intake and wage inflation.
Depreciation, amortisation and impairment expenses were € 20.8 million in 2020 compared with € 21.7 million in 2019. This decrease is mainly the consequence of the level of investments related to the liquidity constraints until
2019, and the impact of COVID-19 in 2020.

Results
EBITDA (including IFRS 16) increased from € 21.2 million in 2019 to € 33.4 million in 2020, reflecting the 19.5%
increase in revenue, improved gross profit percentage and increased operating expenses. 2020 EBIT increased yearon-year to € 12.6 million (2019: EBIT loss of € 0.4 million). Net profit from continuing operations amounted to
€ 7.9 million (2019: net loss of € 4.2 million). Beter Bed Holding improved its financial position in 2020. However, in
line with the dividend policy the management board proposes to the AGM on 12 May 2021 that no dividend will be paid for the 2020 financial year.

Cash flows
Total cash flow generated from operating activities in 2020 was € 43.1 million (2019: € 3.2 million). The operational
cash flow generation of our continued business was positive, and we have achieved working capital improvements in all areas.
Total cash flow frominvesting activitiesin 2020 was an outflow of € 3.5million compared with an inflow of € 12.7million
in 2019. The total amount of investments in both tangible and intangible fixed assets amounted to € 3.6 million in
2020, compared with € 4.4 million in 2019. The majority of these investments related to investments in IT and E-commerce platforms, the new stores and required maintenance in existing stores.

Cash, liquidity and debt financing
The cash flow from financing activities for the year was an outflow of € 19.8 million (2019: outflow of € 20.2 million),
due to the deleveraging and the significant improvements in our financial position. The financing cash flow consists of repayment of borrowings of € 4.2 million and the payment of lease liabilities for an amount of € 15.2 million, and interest paid.
The cash position changed significantly during 2020. At year-end 2020, the Group reported a net cash position of € 19.3 million (2019: net debt of € 7.9 million).

Financing and solvency
In July 2020, Beter Bed Holding N.V. further improved its healthy financial position, with an extension of the existing
financing facilities of € 22.3 million with our incumbent banks until 31 December 2021. Furthermore, the shareholder
loan of € 3.5 million plus incurred interest was converted into newly issued shares. In total, 2.13 million new shares
were issued for thistransaction. Furthermore, an agreement was closed to decrease the interest rate applicable to the
perpetual loan to 10% until mid-2021 after which it will go back to 15%.
Solvency significantly improved as a result of the operating profit and the conversion of the shareholder loan,standing
at 13.6% as at 31 December 2020 (2019: 3.1%).
Independent auditor’s report
The financial information in the appendices is taken from the consolidated financial statements of Beter Bed Holding N.V. for which an unqualified auditor’s report has been issued by the independent auditor.
Annual report 2020 and AGM Beter Bed Holding N.V.
Beter Bed Holding N.V. is publishing its annual report for the financial year 2020 today on its website
www.beterbedholding.com. An interactive PDF document is available on this website.

The virtual Annual General Meeting will take place through a live webcast on 12 May 2021. The agenda including
explanatory notes and notice to the AGM will be published on the Company’s website on 31 March 2021.

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