htg-2022-12-31-en

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

HomeToGo SE, Luxembourg — CONSOLIDATED FINANCIAL

STATEMENTS


Table of Content	Page

Combined Management Report	4
1. Background to the Group	4
1.1. General	4
1.3. Group Structure	4
1.4. Management System	5
1.5. Research & Development	8
2. Report on Economic Position	9
2.1. Macroeconomic and Sector-specific Environment	9
2.2. Business Development	10
2.3. Results of Operations, Financial Position and Net Assets	12
2.4. Employees	18
3. Statutory Results of Operations and Financial Position of the Company	18
4. Risk and Opportunity Report	20
4.1. Risk and Opportunity Management System	20
4.2. Illustration of Risks	21
4.3. Illustration of Opportunities	26
5. Significant Events after the Reporting Period	26
6. Outlook	26
Consolidated Financial Statements	28
Consolidated Statements of Profit or Loss and Other Comprehensive Income	29
Consolidated Statements of Financial Position	30
Consolidated Statements of Changes in Equity	31
Consolidated Statements of Cash Flows	32
Notes to the Consolidated Financial Statements	33
1 - Corporate information	33
2 - Basis of preparation	33
3 - Scope of consolidation	34
4 - Summary of significant accounting policies	35
5 - New and revised standards	45
6 - Business Combinations and other acquisitions	46
7 - Critical accounting judgments, key estimates and assumptions	50
8 - Segment and geographic information	51
9 - Revenues	53
10 - Cost of Revenues	53
11 - Product development and operations	54
12 - Marketing and sales	54
13 - General and administrative	55
14 - Other income and expenses	55
15 - Financial result, net	56
16 - Income taxes	56
17 - Earnings (loss) per share	57


18 - Personnel expenses	58
19 - Intangible assets and goodwill	59
20 - Property, plant and equipment	62
21 - Trade and other receivables (current and non-current)	63
22 - Other financial assets (current and non-current)	63
23 - Other assets (current and non-current)	64
24 - Shareholder’s equity	65
25 - Borrowings	66
26 - Provisions (current and non-current)	67
27 - Other financial liabilities (current and non-current)	67
28 - Other liabilities (current and non-current)	69
29 - Deferred taxes	70
30 - Share-based payments	72
31 - Related party transactions	74
32 - Auditor's fees	76
33 - Financial instruments	76
34 - Financial risk management	81
35 - Change in accounting policy - Classification of warrants	84
36 - Subsequent events after the reporting period	86

HomeToGo SE

Combined Management Report for Financial Year 2022

1. Background to the Group

1.1. General

HomeToGo SE, Luxembourg is a public European company (Société Européenne) that is listed on the Frankfurt

Stock Exchange, having its registered office at 9, rue de Bitbourg, L-1273 Luxembourg, Luxembourg, and

registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés de

Luxembourg) under number B249273.

This Management Report comprises both the Group Management Report and the Management Report of

HomeToGo SE. Herein, we report on the business performance as well as the situation and expected

development of HomeToGo Group (hereafter also referred to as "HomeToGo" or "Group") and HomeToGo SE

(hereafter also referred to as "Company").

1.2. Business Model

The HomeToGo Group operates an international marketplace for vacation rentals, which connects millions of

users in their search for a place to stay with thousands of inventory suppliers across the globe, resulting in the

world’s most comprehensive inventory coverage in the alternative accommodation space. At the time of the

report, the portfolio of HomeToGo comprises more than 15 million (2021: 15 million) aggregated

accommodation offers provided by more than 60,000 (2021: 31,000) online travel agencies, tour operators,

property managers and other inventory suppliers (“Partners”) worldwide.

HomeToGo operates its business through local websites and apps in 25 countries. Besides the main brand

HomeToGo the international market appearance is carried out through further various brands like Agriturismo,

AMIVAC, Atraveo, Casamundo, CaseVacanza, e-domizil, EscapadaRural, Tripping, Wimdu, as well as software

brands SECRA and Smoobu. The HomeToGo marketplace integrates a vast inventory in one platform and

enables users to book accommodations from diverse partners, either on the Partners’ external websites or

directly on the HomeToGo platform. Furthermore, the Group offers software-as-a-service ("SaaS") products for

semi-professional agencies and homeowners, which enables them to centrally control their listings and

coordinate their actions across multiple platforms. We also effectively improve the quality and synchronization

of the existing inventory for our Partners, in particular online travel agencies ("OTAs") and property managers,

and grant them access to technology services and qualified demand that otherwise would not be easily

available to them.

As an internet marketplace, HomeToGo sees itself as an entry opportunity in the search for a vacation rental.

With our Onsite solution, there is an option to directly book with the connected Partners via HomeToGo. The

use of the platform is thereby free of charge for users. Instead, HomeToGo receives a commission from the

connected booking partner for every successful referral of a booking or for the generation of a query,

respectively.

1.3. Group Structure

HomeToGo Group is managed by its ultimate parent company HomeToGo SE and is operated under one

segment. The Group comprises the parent entity, HomeToGo SE, domiciled in Luxembourg and serving as

holding entity, and its main operating subsidiaries in Germany, Italy, Spain, Switzerland, Lithuania and the US.

As of December 31, 2022, HomeToGo SE had direct or indirect shareholdings in 15 companies, which belong to

the Group and from which all are fully consolidated.

Continuing the M&A-strategy during financial year 2022 the scope of consolidation was further increased by

the acquisitions of the operational entities AMIVAC SAS ("AMIVAC"), e-domizil subgroup ("e-domizil") that

consists of e-domizil GmbH, Atraveo GmbH and e-domizil AG, as well as SECRA Bookings GmbH and SECRA

GmbH (together "SECRA"). All of them were acquired to further strengthen the Group's position especially in

the Subscriptions & Services sector of the alternative accommodation industry, but also increasing its inventory

reach.

Effective January 1, 2022, LS I Advisors Verwaltungs-GmbH, Munich, Germany, HS Holiday Search GmbH, Berlin,

Germany, Mertus 288. GmbH, Berlin, Germany, and Mapify UG (haftungsbeschränkt) ("with limited liability"),

Kassel, Germany were merged onto HomeToGo GmbH, all four entities ceased to exist. Furthermore, effective

March 29, 2022 LS I Advisors GmbH & Co. KG, Munich, Germany was merged onto HomeToGo SE and also

ceased to exist.


Subsidiaries and Investments	Function	Location	Share in capital 2022	Share in capital 2021
HomeToGo GmbH	operational	Berlin, Germany	100%	100%
Casamundo GmbH	operational	Berlin, Germany	100%	100%
Smoobu GmbH	operational	Berlin, Germany	100%	100%
Atraveo GmbH	operational	Düsseldorf, Germany	100%	n/a
e-domizil GmbH	operational	Frankfurt, Germany	100%	n/a
SECRA GmbH	operational	Sierksdorf, Germany	100%	19%
SECRA Bookings GmbH	operational	Sierksdorf, Germany	100%	19%
e-domizil AG	operational	Zurich, Switzerland	100%	n/a
Feries S.r.l.	operational	Milan, Italy	100%	100%
Escapada Rural S.L.	operational	Barcelona, Spain	100%	100%
AMIVAC SAS	operational	Paris, France	100%	100%
Adrialin d.o.o.	operational	Rijeka, Croatia	100%	100%
UAB HomeToGo Technologies	engineering	Kaunas, Lithuania	100%	100%
UAB HomeToGo Technologies Vilnius	engineering	Vilnius, Lithuania	100%	100%
HOMETOGO INTERNATIONAL, INC.	sales	Wilmington, Delaware, USA	100%	100%

1.4. Management System

The governing bodies of the Group are the Management Board, the Supervisory Board and the Shareholders’

Meeting of HomeToGo SE. Detailed information on the composition of Management and Supervisory Board can

be found on the Investor Relations website of the Company https://ir.hometogo.de/websites/hometogo/

English/5000/corporate-governance.html.

The Management Board monitors and controls the Group’s development through a comprehensive reporting

system. The Management Board reporting informs in detail on current developments in the operating business

in the form of absolute and relative key figures.

The Supervisory Board receives a monthly report including an income statement which provides a

comprehensive picture of HomeToGo Group’s economic position. Significant items and their changes are

explained and discussed in detail in regular meetings between the Management Board and the Supervisory

Board.

HomeToGo's core financial key performance indicators (KPIs) for the management of the Group are Booking

Revenues, Onsite Booking Revenues, IFRS Revenues and Adjusted EBITDA. Besides IFRS Revenues, the

Management Board uses the non-GAAP KPIs Booking Revenues, Onsite Booking Revenues and Adjusted EBITDA

as Management believes that they enhance investors' ability to evaluate and assess the underlying financial

performance of the Group's continuing operations and the related key strategic business drivers. They are

additional core metrics used by the Management Board internally to support operating decisions, including

those related to evaluating performance, analyzing operating expenses, performing strategic planning and

annual budgeting. These additional core metrics should not be considered as a substitute for measures of

financial performance, financial position or cash flows reported in accordance with IFRS.

Booking Revenues is used in addition to IFRS Revenues as it allows to measure performance as soon as

bookings and clicks are made by the traveler. Revenues from Subscription & Services are considered equally for

Booking Revenues as under IFRS to complement the view. Thus, Booking Revenues provide the best view to

forecast the development of our IFRS Revenues and at the same time better match to the corresponding

marketing expenses.

Onsite Booking Revenues are a subset of Booking Revenues and one of our strategic focus areas for the

generation of growth with higher profitability. Onsite Share measures the penetration of our Partner base with

our Onsite Product.

Adjusted EBITDA is used as an additional metric to Net Income to assess the Group's performance as it presents

the sustainable operational performance of the business. Adjusted EBITDA is close to cash flows generated and

thus provides a useful measure for period-to-period comparisons.

Definitions for all of our four core metrics are outlined in the following table:


Booking Revenues*		Booking Revenues is a non-GAAP operating metric to measure performance that is defined as the net Euro value of bookings before cancellations generated by transactions on the HomeToGo platforms in a reporting period (CPA, CPC, CPL and Subscriptions & Services). Booking Revenues do not correspond to, and should not be considered as alternative or substitute for IFRS Revenues recognized in accordance with IFRS. Contrary to IFRS Revenues, Booking Revenues are recorded at the point in time when the booking is made. Revenues from Subscription & Services are considered equally for Booking Revenues as under IFRS to complement the view. Please find the reconciliation to IFRS Revenues as the closest GAAP measure under 2.2 Business Development.
Onsite Booking Revenues and Onsite Share*		Onsite Booking Revenues are a subset of Booking Revenues. Onsite Bookings occur when the complete user journey is conducted on HomeToGo domains. Onsite Share is defined as ratio of Onsite CPA Booking Revenues to Booking Revenues excluding Booking Revenues from Subscriptions & Services that measures the penetration of our Partner base with our Onsite Product. Onsite Bookings allow the Group to realize a higher Take Rate and to establish a closer relationship with the user, which leads to lower marketing expenses over time. Both effects result in a higher profitability of the Group. Please find the reconciliation to IFRS Revenues as the closest GAAP measure under 2.2 Business Development.
IFRS Revenues		Revenues according to IFRS accounting policies. CPA IFRS Revenues are recognized on check-in date. CPC and CPL Revenues are recognized on booking or click date. IFRS Revenues from Subscriptions & Services are recognized over time or when services are provided. HomeToGo generates revenue through the following main revenue types: •Cost per Action (“CPA”): CPA is the largest revenue stream, whereby HomeToGo receives a percentage-based commission for successful onsite- or offsite booking referrals, which facilitate a stay. Depending on the contractual terms with the respective partner, the revenue for HomeToGo is either calculated as percentage of the commission or as percentage of the booking value (sometimes called revenue share). •Cost per Click (“CPC”) HomeToGo receives a fixed commission based on every successful referral click. •Cost per Lead (“CPL”): HomeToGo receives a fixed commission based on every successful referral inquiry (lead). •Subscriptions & Services are related to subscription-based revenue from Partners who can use the platform for listing of their rental objects over a determined period.
Adjusted EBITDA*		Net income (loss) before (i) income taxes; (ii) finance income, finance expenses; (iii) depreciation and amortization; adjusted for (iv) expenses for share-based compensation and (v) one-off items. One-off items relate to one-time and therefore non-recurring expenses and income outside the normal course of operational business. Among others those would include for example income and expenses for business combinations and other merger & acquisitions (M&A) activities, litigation, restructuring, government grants and other items that are not recurring on a regular basis and thus impede comparison of the underlying operational performance between financial periods. Please find the reconciliation from Profit/Loss from operations to Adjusted EBITDA under 2.3 Results of Operations.
* unaudited

In addition to the above, HomeToGo uses a range of further KPIs - both financial and non-financial - to support

its business. These further KPIs are a function of our core financial KPI Booking Revenues. Thus, the

Management Board uses these historical KPIs to further assess operating performance and as a basis for

strategic planning. The Management Board believes that such KPIs will also be used by investors and analysts in

addition to our four core financial metrics described above to assess the performance of HomeToGo.

Overview of our further financial KPIs (non-GAAP):


Gross Booking Value (GBV)*		GBV is the gross EUR value of bookings on our platform in a reporting period (including all components of the booking amount except for VAT). GBV is recorded at the time of booking and is not adjusted for cancellations or any other alterations after booking. For CPA transactions, GBV includes the booking volume as reported by the Partner. For CPC, GBV is estimated by multiplying the total click value with the expected conversion rate. The total click value is the duration of the search multiplied with the price per night of the clicked offer. This total click value is multiplied with the average conversion rate of that micro conversion source for CPA Partners in the respective month. Please find the reconciliation to IFRS Revenues under 2.2 Business Development.
CPA Take Rate*		CPA Take Rate is the margin realized on the gross booking amount and defined as CPA Booking Revenues divided by GBV from CPA Booking Revenues (excl. Revenues from Hotels and Subscriptions & Services). Please find the reconciliation to IFRS Revenues under 2.2 Business Development.
Cancellation Rate		Cancellation Rate reflects the share of Booking Revenues that are cancelled subsequently, however, before being recognized as IFRS Revenues. This metric is not actively used for steering of the Group, but it is monitored continuously and used for forecasting and budget planning. Please find the reconciliation to IFRS Revenues under 2.2 Business Development.
* unaudited

Our non-financial KPIs are defined as follows:


Bookings*		Bookings represent the number of bookings generated by users of the HomeToGo platforms. Please find the reconciliation to IFRS Revenues under 2.2 Business Development.
CPA Basket Size*		CPA Basket Size is defined as CPA Gross Booking Value per booking, before cancellations. Please find the reconciliation to IFRS Revenues under 2.2 Business Development.
* unaudited

1.5. Research & Development

As a technology company, HomeToGo undertakes development in view of optimizing the search intelligence,

software solutions provided to its Partners and users of SaaS products and develops self-used IT modules. The

technical platform, on the basis of which the Group’s websites and apps are operated, is an important

differentiating factor compared to competitors, being continuously further developed in line with the

requirements of the market and the expectations of the users. In-house and external experts engage with the

continuous development of the platform. Our R&D work aims at achieving innovations that support a more

convenient booking experience for our customers. Furthermore, we aim at ensuring our market leadership as

the marketplace with the world's largest selection of alternative accommodation. In this regard, the Lithuanian

subsidiaries, UAB HomeToGo Technologies and UAB HomeToGo Technologies Vilnius, play a major role in

performing most of the development services for the HomeToGo Group.

Over the past year, HomeToGo continued to enhance its platform mainly by offering further products and

services as well as by adding features improving the booking experience to generate additional Revenues or

increasing cost efficiency. HomeToGo also consolidated technologies within the Group following acquisitions,

enabling more of the brands within the Group to take advantage of the existing and continuously enhanced

platform technology while strategically extending HomeToGo's distribution network.

The Group’s direct R&D expenses in 2022 amounted to EUR 13.1 million (2021: EUR 8.2 million), resulting in

R&D expenses in relation to HomeToGo’s IFRS Revenues 9% (2021: 9%). The capitalization ratio amounts to

29% (2021: 19%) and amortization allocatable to capitalized development expenses amounted to EUR 1.1

million (2021: EUR 0.5 million). The increase in capitalization ratio is due a higher focus on development

projects for new products and projects leading to substantial enhancements as well as an improved effort

capturing of the value creation in our product development process.

HomeToGo SE as an individual entity and pure financial holding does not conduct any operations related to

research and development.

2. Report on Economic Position

2.1. Macroeconomic and Sector-specific Environment

At the time of the publication of our Combined Management Report, the economic environment was impacted

by the aftermath of the ongoing war in Ukraine and persistent supply chain frictions, particularly in China, with

significant effects on energy prices and a tightening monetary policy as a reaction to the highest inflation rates

since the 1970s. This has led to consumer sentiment indicators to decline with the Consumer Confidence

Indicator (CCI)1 of the European Commission and the Conference Board Consumer Confidence Index2 being at

low levels.

Furthermore, it is projected by the International Monetary Fund3 that the growth of the global economy will

experience a slow down to 2.7% in 2023 compared to 3.2% in 2022. UBS Investment Bank is expecting 13 out of

32 economies to contract for at least two quarters by the end of 2023. Fading Covid-19 reopening tailwinds,

uncertainty in Europe over energy rationing, labor supply shortages, monetary tightening and negative real

wage growth are all pulling down on growth. In the other direction, inflation is not expected to move to a

structurally higher level after the pandemic and therefore central banks are expected to ease interest rates

from current levels in 2023. Labor markets in the Eurozone have been unimpaired from the macroeconomic

distress in 2022. In a more cautious view the OECD is expecting inflation rates to remain high with 6.6% year-

on-year in 2023, due to rising energy prices, it is expected that tighter monetary policy and decelerating growth

will help to eventually moderate inflation.

According to UBS Research, 2021 Eurozone surveys were suggesting that households were delaying spending,

waiting for Covid-19 mobility restrictions to be removed.4 Despite adverse macroeconomic effects in the

financial year 2022, the travel industry has shown a strong recovery from the Covid-19 pandemic and reached

pre-pandemic levels in Germany in the third quarter of 2022.5 The travel sector is thereby benefiting from pent-

up demand after two years of subdued travel due to Covid-19-related travel restrictions.6 According to

proprietary survey data of UBS Investment Bank, travel demand in terms of bookings for alternative

accommodation reached a new all-time high in June 2022, exceeding the prior high from June 2021.7 According

to data from OAG, weekly seat capacity on commercial passenger airlines averaged 90.7 million so far this year,

up from 61 million during the same period in 2020 but still some way below the 2019 level of 110.9 million. The

gap is gradually closing and global capacity on airlines exceeded 100 million for the first time since the

pandemic hit during the summer 2022 travel season.8

1 Consumer Confidence Indicator (CCI), European Commission, released as of November 22, 2022, retrieved at https://economy-

finance.ec.europa.eu/system/files/2022-11/Flash_consumer_2022_11_en.pdf

2 Press release on the US Consumer Confidence by the Conference Board, retrieved at https://www.conference-board.org/topics/

consumer-confidence

3 World Economic Outlook, International Monetary Fund, as of October 2022, retrieved at https://www.imf.org/en/Publications/WEO/

Issues/2022/10/11/world-economic-outlook-october-2022

4 Global Economics & Markets Outlook, UBS AG, November 2022

5 https://www.destatis.de/DE/Presse/Pressemitteilungen/2022/12/PD22_523_45412.html

6 https://www.euromonitor.com/article/unprecedented-pent-up-demand-drives-travel-recovery

7 Global Economics & Markets Outlook 2023-2024, UBS AG, November 2022

8 https://www.oag.com/coronavirus-airline-schedules-data

2.2. Business Development


HomeToGo KPI Cockpit	2022	2021	2022 vs. 2021
Booking Revenues (EUR thousands)*	163,711	123,555	32%
CPA Onsite*	76,730	50,168	53%
CPA Offsite*	33,965	44,350	(23)%
CPC + CPL*	30,582	20,249	51%
Subscriptions & Services*	22,433	8,788	155%
Onsite Share*	54%	44%	+11pp

IFRS Revenues (EUR thousands)	146,839	94,839	55%
CPA Onsite	66,877	31,523	112%
CPA Offsite	25,716	34,127	(25)%
CPC + CPL	30,587	20,401	50%
Subscriptions & Services	23,660	8,788	169%

Adjusted EBITDA*	(20,661)	(21,070)	2%
Adjusted EBITDA margin*	(14.1)%	(22.2)%	+8 pp

Net Income	(53,499)	(177,025)	70%

Gross Booking Value (EUR thousands)*	1,644,265	1,437,515	14%
GBV from CPA	1,149,011	1,134,000	1%

Bookings (#)*	1,026,097	929,419	10%
CPA Onsite*	745,293	492,281	51%
CPA Offsite*	280,804	437,138	(36)%
CPA Basket Size (EUR)*	1,120	1,252	(11)%
CPA Take Rate*	9.6%	8.3%	+ 1.3pp

Cancellation Rate*	14%	20%	+ 6pp
Cancellations (EUR thousands)*	(22,286)	(24,797)	10%

Cash & cash equivalents + other highly liquid short-term financial assets (EUR thousands)	161,557	252,910	(36)%
Equity (EUR thousands)	263,697	290,451	(9)%
Equity ratio	77%	80%	+ (3)pp
Employees (end of period)	650	417	56%
* unaudited

HomeToGo's business proved to be resilient in view of a contracting global economic environment during the

year 2022. The Group could further increase its visibility with website visits increasing slightly to 376 million

from approx. 375 million during the previous year while the revenue conversion improved significantly.

While 2021 was still affected by temporary travel restrictions, 2022 returned to a typical booking trend with a

strong performance in terms of Booking Revenues. Although having strong Booking Revenues in the first part of

the year, the last-minute booking trend for summer remained strong, particularly supported by Southern

European countries like Italy and Spain. From the second quarter onwards, the Group saw increases in both,

Booking Revenues and IFRS Revenues, due to our most recent acquisitions of e-domizil and SECRA. Both

acquisitions are following our strategy for Onsite Booking Revenues and Booking Revenues from Subscription &

Services. The US market was impacted by high inflation rates, leading to higher overnight rates which based on

given Take Rates translates directly into higher Booking Revenues. On the back of more secure travel planning

HomeToGo registered also a trend for early bookings already in 2022 with travel periods in 2023. As a result,

we realized a strong growth in Booking Revenues during the fourth quarter of 2022, while the corresponding

IFRS Revenues will only lead to revenue recognition in 2023.

Booking Revenues increased significantly by to EUR 163.7 million in 2022 with an overall growing share of

bookings made directly on our platforms that resulted in a higher Onsite Share of 54% compared to 44% in the

previous year and enabling the Group to realize a higher CPA Take Rate with an increase of +1.3ppt compared

to the prior year.

IFRS Revenues developed favorably and increased even more significant by 55% to EUR 146.8 million in 2022,

driven by the acquisitions during 2022, the Group's expansion of business activities and a further increase in

travel activity with more check-ins in the first half of the year from travel events like Easter and Pentecost

compared to the prior period.

The following table presents the reconciliation from GBV over CPA Take Rate to IFRS Revenues:


Reconciliation Gross Booking Value (GBV) to IFRS Revenues in EUR thousands, except for Take Rate CPA that is presented in percent	2022	2021
Gross Booking Value (GBV)*	1,644,265	1,437,515
t/o GBV from CPA	1,149,011	1,134,000
x CPA Take Rate*	9.6%	8.3%
Booking Revenues from CPA	110,695	94,518
+ Booking Revenues from CPC, CPL and Subscriptions & Services	53,015	29,037
Booking Revenues*	163,711	123,555
Cancellations	(22,286)	(24,797)
Bookings with check-in in different reporting period	5,414	(3,919)
IFRS Revenues	146,839	94,839
* unaudited

On the supply side, the Group managed to increase the number of Partners to approx 60,000 (2021: 31,000).

The Group continues to leverage its technical expertise for its Partners by building new solutions around its

marketplace model to help Partners thrive across the entire vacation rental ecosystem.

2.3. Results of Operations, Financial Position and Net Assets

The statements made on the net assets, financial position and results of operations of the HomeToGo Group

are based on the values and comparative figures of the consolidated financial statements for the financial year

2022, which have been prepared in accordance with the International Financial Reporting Standards (IFRS) as

adopted by the EU. More detailed explanations on the accounting and valuation methods applied can be found

in the notes to the consolidated financial statements 2022.

a) Results of operations

Compared to the previous fiscal year, the Group's operating result has developed as shown in the following

table:


Shortened Statements of Profit or Loss
(in EUR thousands)	2022	2021	2022 vs. 2021
IFRS Revenues	146,839	94,839	55%
Cost of Revenues	(12,202)	(4,327)	182%
Gross profit	134,637	90,512	49%
Product development and operations	(28,678)	(23,840)	20%
Marketing and sales	(126,284)	(95,390)	32%
General and administrative	(47,851)	(112,751)	(58)%
thereof: Non-cash listing service expense (de-SPAC Charge)	—	70,437	n/a
Other expenses	(1,160)	(631)	84%
Other income	3,671	11,646	(68)%
Loss from operations	(65,666)	(130,455)	50%

The following sections outline the development of individual income and expense items:


Breakdown of IFRS Revenues by activity areas
(in EUR thousands)	2022	2021	2022 vs. 2021
CPA	92,593	65,650	41%
thereof:
CPA Onsite	66,877	31,523	112%
CPA Offsite	25,716	34,127	(25)%
CPC and CPL	30,587	20,401	50%
Subscriptions & Services	23,660	8,788	169%
Total	146,839	94,839	55%

In the financial year 2022, the Group’s total IFRS Revenues increased significantly by more than EUR 52.0

million to EUR 146.8 million. The major portion of the IFRS Revenues was generated from CPA (“Cost per

Action”), CPC (“Cost per Click”) and CPL (“Cost per Lead”) transactions. The increase in IFRS Revenues in 2022

was strongly driven by our recent acquisitions of e-domizil, SECRA and AMIVAC. Please refer to section 6 -

Business Combinations and other acquisitions of the Notes to the Consolidated Financial Statements for further

information. Furthermore, IFRS Revenues increased due to a continued recovery of travel activity in the

alternative accommodation sector in 2022 and due to expansion of the Group's business activities. As a result

of further strategic investments and the acquisition of e-domizil, the CPA Onsite IFRS Revenues more than

doubled by 112% to EUR 66.9 million. The growth in IFRS Revenues within Subscriptions & Services is mainly

explained by the acquisition of SECRA as of May 31, 2022 and AMIVAC as of January 1, 2022.


Breakdown of expenses by functional areas
(in EUR thousands)	2022	2021	2022 vs. 2021
Cost of Revenues	12,202	4,336	181%
Product development and operations	28,678	23,726	21%
Marketing and sales	126,284	95,495	32%
General and administrative	47,851	112,751	(58)%
Other expenses	1,160	626	85%
Total	216,175	236,934	(9)%

A significant portion of the Group's 2022 expenses is explained by expenses for performance marketing within

our Marketing and sales function and share-based compensation expenses. The reconciliation to Adjusted

EBITDA below provides a general overview of the impact of share-based compensation on the different cost

functions.

Cost of Revenues increased by EUR 7.9 million or 182% from EUR 4.3 million in 2021 to EUR 12.2 million in 2022

due to higher expenses for hosting resulting from increased bookings and traffic on our websites. Besides,

amortization of EUR 4.8 million of the order backlog recognized as part of the acquisition of e-domizil in April

2022 was leading to the disproportionate increase in Cost of Revenues. The adjusted gross profit margin9

increased by 0.1 percentage points from 96.4% in 2021 to 96.4% in 2022.

The increase in expenses for product development and operations by 20% to EUR 28.7 million in 2022 (2021:

EUR 23.7 million) mainly results from higher personnel-related expenses (2022: EUR 15.9 million, 2021: EUR 9.4

million) due to the increase in the scope of consolidation. The respective cost ratio9 to Revenues marginally

improved by 0.3 percentage points due to economies of scale.

Marketing and sales expenses increased by 32% from EUR 95.4 million in 2021 to EUR 126.3 million in 2022.

The majority of the increase was driven by EUR 27.2 million or 34% higher expenses for performance marketing

capturing a further resurgence of demand in the travel sector following the further lifting of travel restrictions

in 2022 compared to previous year. The Marketing and sales cost ratio9 of 81.3% improved by 10.6 percentage

points during 2022 compared to the prior year period from 91.9% whereas the improvement goes back to

increased efficiency within our performance marketing activities that was leveraged to build up a strong

Booking Revenues Backlog10 of EUR 32.5 million as of December 31, 2022 with a significant increase by 71.8%

compared to the prior year. According to IFRS those CPA Revenues from bookings in the backlog will be realized

based on their check-in date in 2023 without requiring any additional marketing expenses and thus, represent

an important building block in our goal to reach Adjusted EBITDA break-even in 2023.

General and administrative expenses decreased by 58% (2022: EUR 47.9 million, 2021: EUR 112.8 million)

mainly due to significantly lower expenses for share-based compensation (2022: EUR 19.0 million, 2021: EUR

17.6 million) recognized within General and administrative. The higher expenses for share-based compensation

in the prior period included a one-time non-cash expense in the amount of EUR 70.4 million that HomeToGo

incurred in connection with the successful consummation of the business combination with Lakestar SPAC I SE.

The expense represented the excess of the fair value of shares deemed issued as part of the business

combination over the fair value of identifiable net assets assumed from Lakestar SPAC I SE that economically

constitutes the listing service provided by Lakestar SPAC I SE. In addition, expenses for consulting services went

significantly down due to higher expenses in the prior period for the preparation of the de-SPAC transaction

(2022: EUR 7.3 million, 2021: EUR 13.1 million). As an opposing effect the Group incurred higher costs as a

public company during 2022 as reflected especially by increased expenses for third party services (2022: EUR

3.1 million, 2021: EUR 1.8 million). Furthermore, personnel-related expenses in General and administrative

increased to EUR 12.9 million (2021: EUR 6.8 million), with the number of staff as well as the scope of

consolidation due to acquisitions of subsidiaries having significantly increased. The respective cost ratio11 in

proportion to IFRS Revenues increased from 12.9% in 2021 by 2.1 percentage points to 15.0% in 2022 mainly

due to the higher costs as a public company incurred in 2022 compared to the prior year.

9 Adjusted for expenses for share-based compensation, depreciation, amortization and one-off items

10 Booking Revenues before cancellation

11 Adjusted for expenses for share-based compensation, depreciation, amortization and one-off items

Other income includes income from the translation of foreign currencies mainly related to the appreciation of

the USD compared to EUR. Overall, other income is below the prior year level due to government grant related

to income in 2021 of EUR 9.3 million in connection with Covid-19 aids by the German state.

In 2022, the Group incurred a consolidated net loss in the amount of EUR 53.5 million compared to the 2021

net loss of EUR 177.0 million. The improvement of EUR 123.5 million compared to the previous period is mainly

explained by an improved marketing efficiency, by the listing service expense of EUR 70.4 million described

above that was recognized in General and administrative in 2021 and lower consulting expenses due to the de-

SPAC transaction in the prior year.

In order to assess the operating performance of the business, HomeToGo's management uses Adjusted EBITDA

as an additional metric to Net Income as it presents the sustainable operational performance of the business.

HomeToGo recorded an Adjusted EBITDA of EUR (20.7) million in 2022 compared to EUR (21.1) million in 2021.

While the absolute improvement is relatively small, the Adjusted EBITDA margin improved significantly from

(22.2)% in 2021 to (14.1)% in 2022 due to an improved marketing marketing cost efficiency as well as the

successful acquisitions, in particular e-domizil. Overall, the development of the Group’s result of operations are

assessed favorably given the current global economic contraction. The reconciliation of the Group's Adjusted

EBITDA is shown in the following table:


Reconciliation to Adjusted EBITDA in EUR thousands	2022	2021
Loss from operations	(65,666)	(130,455)
Depreciation and amortization	12,974	4,690
thereof recognized in Cost of Revenues	6,975	866
thereof recognized in Product development and operations	526	785
thereof recognized in General and administrative	571	480
thereof recognized in Marketing and sales	4,902	2,559
EBITDA	(52,692)	(125,764)
Share-based compensation expenses	25,652	101,997
thereof:
Listing service expense (Sponsor as well as public shares and warrants from de-SPAC)	—	70,437
Share-based Compensation Programs	25,652	31,560
thereof recognized in:
Product development and operations	4,951	8,260
Marketing and sales	1,671	5,700
General and administrative	19,030	17,601
One-off items*	6,379	2,698
thereof one-off items recognized in general and administrative	6,212	11,954
Business combination (de-SPAC)	—	12,801
Mergers and acquisitions	1,348	533
Capitalized transaction costs under IFRS	—	(1,818)
Litigation	1,366	—
Reorganization & restructuring	753	—
Arrangements for contingent payments with service condition	903	—
Inflation premium paid to employees	279	—
Other	1,563	438
thereof one-off items recognized in product development and operations	687	—
Infrastructure	246	—
Inflation premium paid to employees	441	—
thereof one-off items recognized in marketing and sales	329	—
Inflation premium paid to employees	329	—
thereof one-off items recognized in other income	(849)	(9,256)
Income from release of provisions	(700)	—
Income from government grants	(149)	(9,256)
Adjusted EBITDA*	(20,661)	(21,070)
Adjusted EBITDA margin*	(14.1)%	(22.2)%
* unaudited

Other one-off items in 2022 includes a donation of EUR 0.5 million to OneUkraine gGmbH, a German non-profit

organisation, for the provision of sustainable humanitarian relief for the Ukrainian people at home and abroad.

Furthermore, this bucket includes EUR 0.5 million for a group-wide company event and EUR 0.3 million other

non-periodic expenses.

b) Financial position

The following table provides an overview of the Group’s financial development:


(in EUR thousands)	2022		2021
Cash and cash equivalents at the beginning of the year	152,944	152,944,000	36,237
Cash flow from operating activities	(36,349)		(83,256)
Cash flow from investing activities	(621)		(118,343)
Cash flow from financing activities	(5,253)		317,093
Foreign currency effects	1,329		1,213
Cash and cash equivalents at the end of the year(1)	112,050		152,944

(1) Includes restricted cash and cash equivalents of EUR 2.3 million as of December 31, 2022 (2021: nil).

As of December 31, 2022, the Group has cash and cash equivalents in the amount of EUR 112.0 million (2021:

EUR 152.9 million). The financial development of the Group was primarily driven by payments for the

acquisition of subsidiaries.

The decrease in cash outflow from operating activities compared to the previous year is mainly due to

decreased payments amounting to 1.9 million in 2022 compared to EUR 42.1 million for the cash settlement to

beneficiaries of the Virtual Stock Option Program ("VSOP") that was higher due to the high amount of

exercisable options during the de-SPAC transation.

The development of cash outflow from investing activities from EUR 118.3 million in 2021 to EUR 0.6 million in

2022 mainly goes back to payments for the acquisition of subsidiaries, net of cash acquired in the amount of

EUR 46.2 million (2021: EUR 16.4 million) and payments for internally generated intangible assets in the

amount of EUR 3.8 million (2021: EUR 1.5 million). Those cash outflows are offset by proceeds in the amount of

EUR 50.0 million in 2022 from the sale of a portion of the Group's investment in a short-term money market

fund for which the payment in 2021 in the amount of EUR 100.0 million explained the main part of the prior

year cash outflow from investing activities of EUR 118.3 million.

The 2022 cash outflow from financing activities consists of repayments of borrowings in the amount of EUR 4.4

million (EUR 2.8 million) and payments for the principal portion of lease liabilities in the amount of EUR 0.9

million (2021: EUR 1.0 million).

The following table provides an overview of the outstanding loans within the Group as of December 31, 2022:


Debtor	Loan Amount (in EUR thousands)	Payout date	Maturity	Nominal interest rate	Carrying amount (in EUR thousands)
HomeToGo GmbH	6,000	February 2020	December 2023	4.35%	1,500
HomeToGo GmbH	10,000	February 2021	September 2025	2.12%	6,333
Feries S.r.l.	400	August 2020	August 2025	1.50%	278
Escapada Rural S.L.	500	May 2020	June 2023	2.50%	85
Escapada Rural S.L.	300	May 2020	June 2025	1.55%	177
Adrialin d.o.o	100	February 2022	September 2027	0.25%	100
Total	17,300	n/a	n/a	n/a	8,473

The following table provides an overview on the outstanding loans within the Group for the comparative period

as of December 31, 2021:


Debtor	Loan Amount (in EUR thousands)	Payout date	Maturity	Nominal interest rate	Carrying amount (in EUR thousands)
HomeToGo GmbH	6,000	February 2020	December 2023	4.35%	3,000
HomeToGo GmbH	10,000	February 2021	September 2025	2.12%	8,414
Feries S.r.l.	400	August 2020	August 2025	1.50%	376
Escapada Rural S.L.	500	May 2020	June 2023	2.50%	337
Escapada Rural S.L.	300	May 2020	June 2025	1.55%	252
Total	17,200	n/a	n/a	n/a	12,378

HomeToGo Group’s financial position can be stated as positive. The Group has been able to meet its payment

obligations at any time. Liquidity shortages have neither occurred nor are such shortages foreseeable for the

future.

c) Net Assets


(in EUR thousands)	Dec. 31, 2022		Dec. 31, 2021		2022 vs. 2021
Non-current assets	159,169	46%	85,962	24%	+73,207	85%
Current assets	185,448	54%	279,321	76%	(93,873)	(34)%
Total assets	344,618	100%	365,284	100%	(20,666)	(6)%

Equity	263,697	77%	290,451	80%	(26,754)	(9)%
Non-current liabilities	30,014	9%	38,736	11%	(8,722)	(23)%
Current liabilities	50,907	15%	36,097	10%	+14,810	41%
Total equity and liabilities	344,618	100%	365,284	100%	(20,666)	(6)%

As of the balance sheet date, the balance sheet total of the Group amounts to EUR 344.6 million (2021: EUR

365.3 million), with EUR 159.2 million (2021: EUR 86.0 million) accounting for non-current assets and EUR 185.4

million (2021: EUR 279.3 million) accounting for current assets.

The main non-current assets are composed of intangible assets in the amount of EUR 138.4 million (2021: EUR

61.4 million) and property, plant and equipment in the amount of EUR 15.0 million (2021: EUR 15.2 million).

The increase in intangible assets mainly results from the acquisitions of AMIVAC, e-domizil and SECRA, resulting

in the recognition of additional goodwill in the amount of EUR 43.4 million and trademarks, order backlog,

customer relationships and software in the amount of EUR 41.2 million. Property, plant and equipment

increased due to the consolidation of right-of-use assets of acquired subsidiaries.

Current assets mainly relate to trade receivables including other receivables (2022: EUR 14.5 million, 2021: EUR

19.0 million), cash and cash equivalents (2022: EUR 112.0 million, 2021: EUR 152.9 million) and an investment

in a money market fund (2022: EUR 49.5 million, 2021: EUR 100.0 million). The increase in trade receivables is

in line with the increased IFRS Revenues whereas current other receivables decreased from EUR 9.2 million as

of December 31, 2021 to EUR 0.9 million as of December 31, 2022 due to the payment of a Covid-19 related

government grant from the German state in 2022. Furthermore, current other financial assets have decreased

to EUR 51.8 million as of December 31, 2022 from EUR 102.0 million as of the prior year, reflecting the sale of a

portion of our investment in money market funds amounting to EUR 50.0 million.

As of December 31, 2022, the Group’s equity amounts to EUR 263.7 million (2021: EUR 290.5 million).

Accordingly, the equity ratio amounts to 77% (2021: 80%) and is above the target equity ratio of 50% that is

required by covenants. The decrease in the equity ratio compared to the prior year mainly results from the

recognition of a total comprehensive loss in 2022.

Non-current liabilities decreased to EUR 30.0 million as of December 31, 2022 compared to EUR 38.7 million in

the prior year mainly due to the decrease in fair value of warrants compared to the prior year and the

repayment of borrowings during the reporting period.

Current liabilities amount to EUR 50.9 million as of December 31, 2022 compared to EUR 36.1 million as of the

prior year. The increase is explained by the increase in contract liabilities from EUR 3.9 million as of December

31, 2021 to EUR 11.9 million as of December 31, 2022 and the recognition of traveler advance payments owed

to homeowners in the amount of 5.5 million as of December 31, 2022 (2021: nil). Both aforementioned liability

positions go back to the acquisition of e-domizil, whereas the advance payments mainly relate to collection

services provided by e-domizil for their homeowners. As part of these payment services, e-domizil collects

travelers' advance payments as well as advance payments for the booking services prior to the traveler's check-

in at the booked accommodation. The travelers' advance payments that e-domizil needs to transfer to the

homeowners right before check-in of the traveler are shown here under Other financial liabilities, while the

advance payments received for booking services are presented under Other liabilities (current). Refer to the

table under note 28 - Other liabilities (current and non-current) of the Consolidated Financial Statements for

further details. The amount of traveler advance payments as a portion of cash and cash equivalents with an

amount of EUR 2.3 million as of December 31, 2022 (2021: nil) is subject to statutory restrictions and not

available for general use by the Group. Furthermore, current liabilities as of December 31, 2022 contain current

trade payables in the amount of EUR 12.5 million (2021: EUR 15.4 million).

d) Overall statement

The Management Board views the business development of 2022 as positive. The Group took advantage of the

mainstreaming of the alternative accommodation market. HomeToGo significantly increased its IFRS Revenues

and Booking Revenues in 2022, as a consequence of the continued M&A strategy and HomeToGo's ability to

attract and retain customers, with a focus on its strategically important Onsite business, as well as positive

development of its Subscriptions & Services business, all in all paving the way for future growth.

HomeToGo exceeded prior year's expectation for IFRS Revenues and Booking Revenues. While the

Management Board's expectation of Adjusted EBITDA still being negative has been met, the overall amount of

EUR 20.7 million has been better than expected driven by an improved Marketing cost ratio and successful

business combinations. Overall, HomeToGo is delivering on its target growth and margin corridor.

2.4. Employees

As of December 31, 2022 the Group had employed 650 employees (2021: 372), representing an increase of 56%

compared to the prior year. The overall increase is explained by the acquisitions.

3. Statutory Results of Operations and Financial Position of the

Company

The purpose of HomeToGo SE is the creation, holding, development and realization of its investment in

HomeToGo GmbH. Due to its sole purpose as a financial holding entity, the Company is subject to the same

price, credit and cash flow risks as the Group as a whole. Refer to 4.2. Illustration of Risks for an assessment of

risks the Company is exposed to.

Results of Operations

As a pure financial holding the Company did not generate any Revenues or income during the financial year

2022. The Company incurred expenses of EUR 341.3 million in 2022 (2021: EUR 17.7 million) that led to a loss in

the same amount in the respective period.

The expenses in 2022 mainly compose of an impairment for the investment held in HomeToGo GmbH of EUR

258.2 million and an impairment for the own shares held by the Company of EUR 62.4 million. The main input

factors for the impairment test for the investment in HomeToGo GmbH leading to the impairment were a

higher discount rate and a reduction in net cash while the business plan did not change significantly. As the

share price of the Company throughout the financial year 2022 was constantly below the acquisition cost of the

treasury shares of EUR 10.00 an impairment is recognized using the share price of EUR 2.26 as of December 31,

2022 as fair value input. Furthermore, the disposal of treasury shares below their acquisition costs of EUR 10.00

as part of the considerations paid for the acquisitions of e-domizil and SECRA as well as for the VSOP

settlements during 2022 led to a loss of in total EUR 15.7 million. There is no impact on the consolidated

statement of profit or loss according to IFRS resulting from the before mentioned impairments and losses on

disposals.

Besides, expenses incurred as a public company that are made up of expenses for third-party services

amounting to EUR 0.3 million (2021: EUR 0.2 million) as well as consulting and audit expenses and EUR 1.3

million (2021: EUR 0.6 million), respectively.

Financial Position

As of December 31, 2022, the Company had cash and cash equivalents of EUR 1.6 million compared to EUR 2.9

million in the previous year. The Company was always able to meet its payment obligations. No liquidity

shortfalls have occurred or are foreseeable in the future.

Net Assets


(in EUR thousands)	Dec. 31, 2022		Dec. 31, 2021		2022 vs. 2021
Non-current assets	833,298	98%	1,088,637	91%	(255,339)	(23)%
Current assets	19,852	2%	106,295	9%	(85,724)	(81)%
Total assets	853,869	100%	1,194,931	100%	(341,063)	(29)%

Equity	851,846	100%	1,193,118	100%	(341,273)	(29)%
Current liabilities	2,023	—%	1,813	—%	+210	12%
Total equity and liabilities	853,869	100%	1,194,931	100%	(341,063)	(29)%

Non-current assets are composed of the Company's investment in HomeToGo GmbH whereas the decrease

during the fiscal year is the result of an impairment of the investment carrying in the amount of EUR 258.2

million, mainly driven by a higher discount rate and a reduction in net cash.

Current assets comprise treasury shares in the amount of EUR 18.2 million (2021: EUR 102.7 million) and cash

and cash equivalents of EUR 1.6 million (2021: EUR 2.9 million).

During the financial year 2022 the Company transferred 452,148 and 700,000 Class A shares each with a par

value of EUR 0.0192 per share as purchase price components as part of the acquisitions for e-domizil and

SECRA, respectively. In addition, 1,055,640 Class A Shares were transferred to VSOP beneficiaries in 2022

(2021: 4,210,905 Class A shares). The transfers of the treasury shares are presented as "Re-issuance of treasury

shares as consideration for acquisitions" while the transfers to the VSOP beneficiaries are presented under

"Share-based compensation" within the consolidated statement of changes in equity for 2022.

4. Risk and Opportunity Report

As an international company, HomeToGo has exposure to macroeconomic, sector-specific, and company-

specific risks and opportunities. This risk and opportunity report provides an overview of the implemented risk

and opportunity management system and presents the risks and opportunities considered material for

HomeToGo.

4.1. Risk and Opportunity Management System

The Management Board of HomeToGo SE assumes overall responsibility for the development and operation of

an effective risk and opportunity management system (RMS) for HomeToGo. The CFO has implemented the

RMS that consists of the following elements:

Risk and Opportunity Objectives

The objective of the RMS is to create the necessary transparency about risks and opportunities for decision

makers, to foster the risk and opportunity culture, and to create a common understanding of risks and

opportunities throughout the company.

Risk and Opportunity Identification and Monitoring

Using multiple instruments, such as workshops and self-assessments, the identification and assessment of risks

and opportunities is carried out by both the risk and opportunity owners during day-to-day operations and the

CFO on a quarterly basis.

Risk and Opportunity Assessment

All risks and opportunities identified are evaluated with regard to their probability of occurrence and their

potential impact based on a one-year time horizon. The identified single risks and opportunities are finally

aggregated. The probability of occurrence represents the possibility that a specific impact for a risk or an

opportunity may materialize within the next three to 60 months. The impact assessment is conducted on a

quantitative scale that refers to the potential financial impact. The material risks and opportunities are

described in the next section of this report.

Risk and Opportunity Control

Risk and opportunity owners are charged with developing and implementing effective risk mitigating and

opportunity supporting measures within their responsibility area. Depending on the type, characteristics, and

assessment of the risks, different risk strategies are applied by the risk owners to reduce the risk, considering

costs and effectiveness. Risk strategies can be risk avoidance, reduction, transfer to a third party, or

acceptance.

Risk and Opportunity Management Improvements and Reporting

The respective risk owner reports on the overall risk and opportunity situation to the senior management, the

Management Board, and the Supervisory Board on a quarterly basis.

4.2. Illustration of Risks

Overall assessment of risks

Overall, the Management Board identified no risks that might threaten the Company’s and the Group’s ability

to continue as a going concern and, from today’s perspective, no such risks are recognizable for the foreseeable

future.

Cybersecurity and IT risks

We operate websites and apps with which we collect, maintain, transmit, and store information about our

users, Partners, and others, including personal information, as well as other confidential and proprietary

information, including information related to intellectual property. We also employ third-party service

providers that store, process, and transmit proprietary, personal, and confidential information on our behalf.

Furthermore, we rely on encryption and authentication technology licensed from third parties to securely

transmit confidential and sensitive information. While we have a cyber risk management in place and take

extensive steps to protect the security, integrity, and confidentiality of sensitive and confidential information

(e.g., password policies and firewalls), our security practices may be insufficient enabling third parties to

potentially breach our systems (e.g., through Trojans, spyware, ransomware or other malware attacks, or

breaches by our employees or third-party service providers), which may result in unauthorized use or

disclosure of information. Such attacks might lead to blackmail attempts, forcing us to pay substantial amounts

to release our captured data or resulting in the unauthorized release of such data. Given that techniques used

in those attacks change frequently and often are not recognized until launched against a target, it may be

impossible to completely secure our systems. In addition, technical advances and continued expansion and

increased complexity of our IT infrastructure could increase the likelihood of security breaches. The operation

of our business requires a number of licenses and other (usage) rights, e.g., in connection with integrating

content into our platform. In the future, we may require additional licenses (e.g., if legal environments change,

or we provide additional services). There is, however, no guarantee that we will be able to obtain all required

licenses or other (usage) rights or that we will manage to comply with all requirements imposed on us

thereunder. If we fail to obtain and maintain such licenses or rights, we may not be able to conduct our

business as intended, which may adversely affect our growth and profitability. Service outages might occur by

loss of domains of other HomeToGo Group brands due to overlooked renewals that could result in a loss of

Booking and IFRS Revenues.

To mitigate these risks, we continuously review and strengthen our IT security strategy and take an increasing

number of technical measures and organizational policies to protect against unauthorized access to our

systems and data. We use advanced server solutions scalable by specialized third-party providers and recruit

experts in order to ensure system integrity and safety and reduce IT risks to an acceptable level. We constantly

review required renewals of all HomeToGo Group domains to ensure the timely renewal of the domain

ownership. Furthermore, we are centralizing procedures and responsibilities across the HomeToGo Group to

support these measures.

In 2022, in consultative collaboration with security experts, we have assessed our cybersecurity according to

NIST Cybersecurity Framework. Based on the framework, we have planned the next security advancement

milestones and already delivered a number of new security enhancements. As an example, we launched a

comprehensive Bug Bounty program as an additional way to deliver surety to our measures and strategy.

Additionally, to increase awareness of cyberattacks at work, we have launched a program of security

awareness training for our employees, raising our protection from within our team.

Product risks

Our listing products bear the risk that fraudulent homeowners might post fake or not as described offers on our

platforms. Travelers would arrive to find no holiday home or not as described holiday home resulting in

frustration and customer complaints that could damage the reputation of HomeToGo or one of our other

brands leading to lower Booking and IFRS Revenues. To mitigate this risk we are constantly reviewing our fraud

detection processes to initiate pre-emptive detection of potentially fraudulent hosts. We have integrated a

third party vendor that is able to detect and block fraudulent accounts and listings creation. Further, we are

using know your customer (KYC) verification flows before paying out funds to Partners.

For our payment services we rely on banks, card schemes, and other payment processors to execute certain

components of the payments process. For inbound payments, we pay these third parties interchange fees and

other processing and gateway fees to help facilitate payments from travelers to Partners. As a result, if we are

unable to maintain our relationships with these third parties on favorable terms or if these fees are increased

for any reason, our profit margin, business, and results of operations could be harmed. Additionally, if these

third parties experience service disruptions or if they cease operations, travelers and Partners could have

difficulty making or receiving payments, which could adversely impact our reputation, business, and results of

operations.

Legislative and regulatory risks

HomeToGo is subject to numerous laws and regulations, particularly on data protection, competition,

consumer protection, online commerce and short-term rentals on EU, national and local levels. This includes, in

particular, the General Data Protection Regulation (GDPR) and extends to local legal frameworks and changes

pertaining to the German Telekommunikation-Telemedien-Datenschutz-Gesetz (TTDSG), the German Gesetz

gegen den unlauteren Wettbewerb (UWG) as well as the EU "New Deal for Consumers" Directive, besides

travel-related regulations for platforms offering short-term rentals.

On the digital environment as such, the evolving regulatory framework for the use of cookies and similar

technologies in many jurisdictions may impair a convenient online service for our users and performance on

our platforms that may lead to limitations for our business and digital marketing techniques.

Responsible and confidential handling of customer data is key to our business. To mitigate risks of potential

violations, our legal team continuously monitors data protection requirements and developments in

interpretations, supports in implementing corresponding measures and processes and provides advice.

Mandatory training and a regular focus group raise awareness for GDPR compliance which go hand in hand

with close cooperation and alignment with responsible teams for adequate protection of personal data of

customers as well as partners and employees. Appropriate processes are reviewed, updated and implemented

with due care, also seeking advice from external foreign legal counsels and the external data protection

officer(s) to ensure correct interpretation of changing legal requirements and timely incident response.

Evolving platform and consumer protection regulations are reviewed by our legal team and incorporated in the

HomeToGo product environment to ensure transparency for users with corresponding texts and features.

In addition, short-term rental regulations on federal, regional and municipality levels impact the display of our

offerings and are considered in operational business processes and product configurations. Those short-term

rental regulations are enacted worldwide with the intention to control and restrict the renting of private

accommodations. Such law implementations may result in higher legal costs and necessary resources

depending on the individual market and jurisdiction. To remain up to date with interpretations and travel-

related regulations, HomeToGo is engaged in industry associations, such as the Deutscher Ferienhausverband

e.V. (DFV), the European Holiday Home Association (EHHA) as well as other associations and actively advocates

the EU-wide harmonization of the regulation on short-term renting (e.g., by preparing and submitting position

papers).

Legislative and regulatory authorities or other policy-making organizations in other countries where we operate

may expand the scope of application of laws and regulations in force, enact new laws or regulations or issue

revised rules or guidelines on data privacy, short-term rentals, consumer protection or overall online

commerce. For instance, the EU Directive 2021/514 (DAC7, Directive of Administrative Cooperation in the field

of taxation in the EU) with the consecutive national laws like the German Plattformen-Steuertransparenzgesetz

(PStTG) is in force resulting in reporting obligations - on the income realized by sellers offering certain services -

applicable to the digital economy. In 2024, the EU Digital Services Act further regulates online platforms more

generally with more exhaustive additional rules in particular on transparency and further compliance

measures.

Any failure to comply with dynamically changing data protection or other regulatory provisions and

interpretations could result in administrative or civil legal proceedings, harm to our business, operations and

reputation or even in significant fines.

Marketing risks

Another risk factor, is the reachable efficiency and effectiveness of marketing expenses. There is a risk of

increased user acquisition costs as competition with direct and indirect competitors in online marketing

channels is intensifying. Furthermore, there is a risk of losing SEO traffic and revenue due to Google updates

and an increasing visibility of Google owned products.

HomeToGo counters this with investments in the brands of the HomeToGo Group, which are, geared to the

main brand, HomeToGo. For example, through the evaluation of organic search results, targeted CRM

campaigns are launched or TV and outdoor advertising is placed in order to increase the efficiency of the

marketing measures applied and to reduce the dependency on individual online marketing channels. We

perform long-term focussed SEO in line with Google guidelines, focus on high-quality content and constantly

improve our Onsite quality metrics. Further, we monitor competition for strategic investments or partnerships.

Partner risks

Our business depends on our Partners maintaining their offers on our platform and engaging in practices that

encourage users to book those offers. If Partners do not establish or maintain a sufficient number of offers and

availability for their properties, the number of nights booked declines for a particular period, or the price

charged by Partners declines, our revenue would decline and our business, results of operations, and financial

condition would be materially adversely affected. While we plan to continue to invest in our Partners and in

tools to assist Partners, these investments may not be successful in growing our Partners and offers on our

platform. In addition, Partners may not establish or maintain offers if we cannot attract prospective users to

our platform and generate bookings from a large number of users. While HomeToGo has experienced only a

limited number of contract terminations by Partners in the past, Partners have from time to time taken their

inventory temporarily off its websites, e.g., for technical reasons.

Since our key Partners, in particular OTAs, typically operate their own platforms and/or also use the services of

other platforms, we face the risk that a key Partner may decide to suspend or terminate its partnership with us.

Such decisions can be based on factors that are beyond our control. For example, a key Partner may decide to

reduce spending on services from us due to a challenging economic environment or other factors, both internal

and external, relating to its business. These factors, among others, may include corporate restructuring, pricing

pressure, changes to an outsourcing strategy, or switching to another platform. Furthermore, our reliance on

certain key Partners for a significant portion of our revenue may give these Partners a certain degree of pricing

leverage against us when negotiating contracts and terms of service.

The loss of all or a portion of our business with, or the failure to retain a significant amount of business with,

any of our key Partners could have a material adverse effect on our business, financial condition and results of

operations.

Ukraine Risk

As at the time of the publication of the Combined Management Report, the war in Ukraine is ongoing and its

development remains unpredictable. There is a risk that the war will further escalate and that the battle

ground could extend geographically and actively involve territories of neighboring sovereign countries, which

could further adversely impact the perception of security of the public and lead to a decrease in global travel

activity. There is the risk that the current economic environment could further deteriorate and have an adverse

lasting impact on consumers' disposable incomes. This could have a consequence of a decrease in demand for

travel activities and related services and result in lower Booking and IFRS Revenues. Furthermore, the risk of

default among our Partners could also increase and lead to an augmented liquidity risk for the Group.

The future development in terms of the war in Ukraine and the economic environment cannot be foreseen

beyond the short-term view, however HomeToGo will continue to monitor the situation closely and will

continue to flexibly respond at short notice to any new development.

Covid-19 Risk

Furthermore, there is a remote risk that the Covid-19 virus could again adversely affect travel behavior in the

future with new variants of the virus spreading that may be immune to vaccination and immunization following

an infection. The recent shift by China's policy makers to abandon the zero Covid-19 policy could possibly raise

the risk of new variants and may trigger a new global wave with negative impacts on travel and already

stressed supply chains leading to lower Booking and IFRS Revenues for HomeToGo.

Growth Risk

With a focus on the Group's future profitability, there is a risk that measures aimed at further realizing cost

efficiencies could have an unexpected constraining impact on the growth of the Group's business.

Inflation Risk

Our financial performance is subject to global macroeconomic conditions being impacted by high inflation rates

and a rapid rise in interest rates as a reaction by central banks. High inflation might impact our business model

negatively as the consumers' real discretionary income might shrink. Higher interest rates set by central banks

as a countermeasure to normalize inflation rates will impact the global economy with adverse effects on

consumers' ability to travel. Higher interest rates will lead to higher costs of capital, used as discount rates in

our impairment test models. Higher discount rates would reduce valuations, absent any offsetting adjustments

to cash flow projections, for example due to inflation. This would be an impairment trigger and could result in

an impairment. We are carefully monitoring our cost spending and might be able to pass part of increasing

prices on to market participants.

Liquidity and default risks

Due to the continuing loss situation, there is generally a medium-term liquidity risk. Furthermore, a default risk

exists in respect of our Partners’ receivables, which might also adversely affect liquidity. Given the size of our

Partners (partly listed companies), we regard a default of large Partners as unlikely whereas the risk is slightly

higher compared to the financial year 2021 given contractions in the economic environment at the time of the

publication of the combined management report. A slightly higher default risk arises from small and non-

professionalized Partners, which is treated through consistent follow-up care. Overall, this refers to a minor

volume and does not adversely affect HomeToGo’s further existence. The Group has strong liquidity resources

at its disposal and an effective liquidity management.

Foreign currency risks

We offer our Partners and users integrated payments in more than 28 currencies and a considerable portion of

our business is conducted in foreign currencies. Therefore, we are exposed to a certain currency risk.

HomeToGo counters this currency risk through natural hedging of the main foreign currencies (primarily USD,

GBP and CHF) by keeping bank accounts in the corresponding foreign currency in order to always be able to

hold a stock of foreign currency in this way and not to be exposed to short-term currency fluctuations.

Acquisitions risks

HomeToGo has acquired multiple businesses since 2018 and we will continue to regularly evaluate potential

acquisitions. We may expend significant cash or incur substantial debt to finance such acquisitions, which

indebtedness could result in restrictions on our business and significant use of available cash to make payments

of interest and principal. In addition, we may finance acquisitions by issuing equity or convertible debt

securities, which could result in further dilution to our existing stockholders. We may enter into negotiations

for acquisitions that are not ultimately consummated. Those negotiations could result in diversion of

management time and significant out-of-pocket costs. If we fail to evaluate and execute acquisitions

successfully, our business, results of operations, and financial condition could be materially adversely affected.

In addition, we may not be successful in integrating acquisitions or the businesses we acquire may not perform

as well as we expected. While our acquisitions to date have not caused major disruptions in our business, any

future failure to manage and successfully integrate acquired businesses could materially adversely affect our

business, results of operations, and financial condition.

ESG risks

We recognize we will need to invest significant effort and resources to further develop and align our ESG

activities whilst continuing to comply with the changing regulations and policies, specifically in terms of how we

measure and report ESG data. If our ESG practices do not meet regulatory requirements or investor, traveler or

employee expectations, then our reputation could be negatively affected. Similarly, our failure to fulfill ESG

commitments to meet reporting standards could mean we are subject to regulatory punishment or actions by

stakeholders that could negatively impact our business. We recognize the following risks among ESG pillars

Environmental, Social and Governance:

Environmental risks

There are potential risks inherent in climate protection efforts, reflected in regulatory changes and consumer

demand. The overarching need to travel less to protect the planet could affect customers' willingness to book

multiple vacations per year and/or long-distance travel. In addition, stakeholder concerns, as well as negative

press about sustainable travel trends such as flight- or ‘workation’ “shaming”, could negatively impact a

customer’s willingness to travel. The increasing pressure to use sustainable modes of transportation may make

it more difficult for some of our inventory to be accessible, and hence less attractive to book. Globally, Covid-19

and other pandemics may lead to new forms of travel restrictions or travel fatigue. With increasing

repercussions caused by the severity of climate change, the inaccessibility of certain regions throughout the

year due to extreme weather conditions or natural disasters might make it more difficult or even impossible to

travel to relevant destinations.

Social risks

Our employees’ expertise and commitment are important factors for our successful development and depend

on our ability to recruit, train, motivate and retain highly qualified employees and, at the same time, promote

our corporate culture. Changes in the macro-economic landscape may impact the stability of HomeToGo's

social climate, e.g. the ability to retain and attract top talent in a competitive and ever-evolving environment. A

risk factor is the skilled labor shortage (“Fachkräftemangel”) which continues to prevail in Germany and other

countries, which may pose a risk to retain key employees and attract additional top talent and qualified staff,

e.g., in the field of software developers. The loss of qualified staff, high employee fluctuation or lasting

difficulties in filling vacant positions with suitable applicants might adversely affect our ability to effectively

compete in our business, and we might lose important know-how, or our competitors might gain access to such

know-how.

Additionally, we note a tendency for the younger generation to seek a "purpose-driven" work environment and

increasingly look for jobs in sustainability-related industries (e.g. NGOs and social ventures). We see it as an

important task to monitor the mental and physical well-being of our employees who may suffer from the

difficult global times we are experiencing, such as the war in Ukraine, the Covid-19 pandemic, rising inflation

and the threat of recession or other factors. In addition, we see a risk in ensuring that employees are treated

equally and fairly regardless of gender, ethnicity, culture, sexual orientation and other factors. In order to

attract and retain qualified staff, we offer competitive compensation packages with long-term incentive models

and other employer benefits, which serve the professional and health promotion of our employees.

Furthermore, we strongly invest in our corporate culture and the development and further training of our

employees. Maintaining an engaging culture in the face of increasing remote working and a global employee

and office base requires special care and attention, while continuing to ensure a high degree of flexibility and

independence for our workforce.

Governance risks

We see a risk in maintaining sound corporate governance while complying with the additional reporting

guidelines that HomeToGo will be required to follow in 2023 and the years to come. As such it is important to

ensure that the business is organized in such a way that accounting, treasury and financial operations are

satisfactorily controlled in all other respects and that the risks inherent in the business are identified, defined,

measured, monitored and controlled at all times in accordance with all relevant external and internal

frameworks.

As our global footprint grows, we closely monitor all risks related to anti-corruption, even though we do not

consider them to be a material threat to our current business or financial performance. Although we do our

best to keep a close eye on all matters along our supply chain complementing our standard partner contracts

with compliance standards we incorporate for ourselves and expect from these business partners as well, we

recognize that limited transparency and the lack of a suppliers’ code of conduct in some business relationships

might make it difficult for us to enforce adequate compliance with protection from human rights-related risks

along the supply chain and that this is therefore considered a standard risk.

4.3. Illustration of Opportunities

Prior to the Covid-19 pandemic, the market for alternative accommodation was experiencing significant

growth. We anticipate that the alternative accommodation industry will continue to expand significantly

because of an observable trend in the traveler preferences away from traditional hotel and resort reservations

and more towards vacation homes, as demonstrated during the Covid-19 pandemic. The mainstreaming of

vacation rentals was accelerated by the pandemic and persists even in a crisis that showed people always

travel, only further driving repeat demand. This can be traced back to its high flexibility by nature, safety of

vacation rental, the often convenient and short distances to domestic locations, the offering of maximum

independence and seclusion, as well as a wide range of amenities that help travelers control their budget.

Further expansion of trends such as "workations" are expected as consumers are adding additional days before

or after their holidays and just work from away. In order to maintain its previous growth trajectory in a

sustained manner, HomeToGo will offer its customers and users a fully integrated product portfolio with

tailored products and software-based solutions in these new market fields as a result of the growing

digitization of this privately and semi-professionally operated tourism sector segment.

With cancellation rates reaching pre-Covid-19 pandemic levels, a faster than expected return to historic

cancellation rates or even a further decrease can lead to additional IFRS and Booking Revenues.

During the pandemic many people considered purchasing an own holiday home in domestic locations instead

of further renting. In order to fully utilize these new homeowners might use platforms like HomeToGo that

increases their reach significantly and could lead to additional supply on our platform.

Faster implementation of our software solutions can lead to faster digitalization of inventory and therefore

benefit the whole alternative accommodation industry.

Increased competition among our Partners can lead to better economics for HomeToGo as Partners will want

to have a higher traffic share.

5. Significant Events after the Reporting Period

No significant events occurred between the end of the reporting period and the date that the financial

statements are authorized for issue.

6. Outlook

Building on a strong Booking Revenues Backlog of EUR 32.5 million as of December 31, 2022 that was a

significant increase by 71.8% compared to the end of 2021, the new fiscal year 2023 started well for

HomeToGo with strong bookings across markets. As usual bookings were driven by traditional early booking

markets like DACH and the Netherlands. However, also markets like North America, who usually book more in

Q2, have been quite active.

According to the Global Online Travel Booking Platform Market 2022-2026 study by Technavio, the online

booking industry is up to an increasing market size, with an expected growth of 13.9% in 2023 and an average

CAGR of 15.7% from 2023 to 2026. The International Air Transport Association (IATA) is also facing an ongoing

recovery for the year 2023 with passenger numbers expected to surpass the four billion mark for the first time

since 2019, with 4.2 billion travelers expected to fly. Both studies underline that the online travel business and

the alternative accommodation industry continues to be a fast growing market.12

For the short-term future, the Group will continue its growth path by further expanding its business in both

Europe and North America by onboarding more Partners, acquiring new customers and capitalizing on

returning customers, all with the help of our technology-driven solutions enabling access to incredible homes.

With travel as a priority for leisure spending for the majority of consumers13 and consciousness for

environmental and sustainable use of resources rising, we see that the trend of choosing alternative

accommodation for vacations will persist and prove to be resilient during periods of economic contractions that

12https://www.iata.org/en/pressroom/2022-releases/2022-12-06-01/#:~:text=In%202023%20the%20airline%20industry,from

%202.9%25%20in%202022)

13 McKinsey & Company Germany Consumers Pulse Survey, 9/23-10/2/2022

are projected to persist. HomeToGo's performance during the Covid-19 pandemic has proven the resilience of

our business model. We aim to further scale our operations across geographic areas and replicate our proven

marketing playbook in DACH region to drive repeat demand globally.

With the expansion of our Subscription & Services business, we will continue to deliver an unparalleled

experience for users on our platform to drive repeat demand and brand loyalty. On the Supply side, we will

support our Partners with growth, continuing to prove the integration potential of our marketplace to drive

acceleration for both the demand and supply side.

A key piece of fostering our path to profitability is our focus on delivering an incredible experience that

travelers want to return to, combined with an efficient marketing strategy to drive and scale repeat demand at

lower costs. We have taken operating measures to optimize our resource allocation and pace our overhead

investments. This is combined with savings from lifting valuable synergy potentials with our subsidiaries from

our key acquisitions. At a topline level, we have consolidated contracts within HomeToGo Group plus offered

new, engaging add-on services to drive Revenues and additional margins.

For the financial year 2023, the HomeToGo Group expects to grow Booking Revenues by 13-25% to a range of

EUR 185-205 million. Onsite share of Booking Revenues share is expected to grow by 2-7 percentage points to

56-61%. IFRS Revenues are expected to grow by 13-19% to EUR 165-175 million. We expect further economies

of scale and an improved efficiency of our marketing activity that will enable us to reach Adjusted EBITDA

break-even in 2023 within a range between EUR (2.5) and 2.5 million.


Luxembourg, March 29, 2023
Management Board of HomeToGo SE



Dr. Patrick Andrae			Wolfgang Heigl
Co-Founder & CEO			Co-Founder & CSO



Valentin Gruber			Steffen Schneider
COO			CFO

HomeToGo SE

Consolidated Financial Statements

for the Financial Year 2022

Registered office: 9, rue de Bitbourg

L - 1273 Luxembourg

R.C.S. Luxembourg: B249273

Consolidated Statements of Profit or Loss and Other

Comprehensive Income for the Years Ended December 31


(in EUR thousands, except share and per share data)	Note	2022	2021* (adjusted)
Revenues	9	146,839	94,839
Cost of Revenues	10	(12,202)	(4,327)
Gross profit		134,637	90,512
Product development and operations	11	(28,678)	(23,840)
Marketing and sales	12	(126,284)	(95,390)
General and administrative	13	(47,851)	(112,751)
Other expenses	14	(1,160)	(631)
Other income	14	3,671	11,646
Loss from operations		(65,666)	(130,455)
Finance income		8,822	12,434
Finance expenses		(1,894)	(58,803)
Financial result, net	15	6,928	(46,368)
Loss before tax		(58,738)	(176,823)
Income taxes	16	5,239	(202)
Net loss		(53,499)	(177,025)
Total comprehensive loss		(53,721)	(177,042)
Basic and diluted earnings (loss) per share	17	(0.47)	(2.22)
Weighted average ordinary shares outstanding (basic and diluted)		113,367,886	79,619,166

The accompanying notes are an integral part of these consolidated financial statements.

*) refer to note 35 for the resulting effects from a change in presentation of warrants from equity to liabilities.

Consolidated Statements of Financial Position as of

December 31


(in EUR thousands)	Note	2022	2021* (adjusted)
Assets
Non-current assets
Intangible assets and goodwill	19	138,404	61,360
Property, plant and equipment	20	15,023	15,202
Other receivables (non-current)	33	—	814
Income tax receivables (non-current)		95	79
Other financial assets (non-current)	22	5,504	8,249
Other assets (non-current)	23	143	258
Total non-current assets		159,169	85,962
Current assets
Trade and other receivables (current)	21	14,466	18,997
Income tax receivables (current)		1,622	79
Other financial assets (current)	22	51,778	101,960
Other assets (current)	23	5,533	5,341
Cash and cash equivalents		112,050	152,944
Total current assets		185,448	279,321
Total assets		344,618	365,284

Equity and liabilities
Equity
Subscribed capital		2,441	2,441
Capital reserves		519,032	508,963
Foreign currency translation reserve		(240)	(18)
Share-based payments reserve		85,638	68,744
Retained Earnings		(343,174)	(289,680)
Total shareholder´s equity	24	263,697	290,451
Borrowings (non-current)	25	5,631	9,371
Other financial liabilities (non-current)	27, 35	15,517	23,192
Provisions (non-current)	26	518	1,182
Other liabilities (non-current)	28	404	1,117
Income tax liabilities (non-current)		13	—
Deferred tax liabilities	29	7,930	3,874
Non-current liabilities		30,014	38,736
Borrowings (current)	25	2,844	3,007
Trade payables (current)		12,544	15,395
Other financial liabilities (current)	27	10,057	8,885
Provisions (current)	26	1,645	108
Other liabilities (current)	28	19,824	8,534
Income tax liabilities (current)		3,993	168
Current liabilities		50,907	36,097
Total liabilities		80,921	74,833
Total shareholder´s equity and liabilities		344,618	365,284

*) refer to note 35 the resulting effects from a change in presentation of warrants from equity to liabilities.

Consolidated Statements of Changes in Equity for the Years Ended

December 31


(in EUR thousands)	Note	Subscribed capital		Capital reserves		Own shares**	Retained earnings		Foreign currency translation reserve	Share- based payments reserve	Total shareholders' equity
As of Jan 1, 2021		93		113,280		—	(112,656)		—	22,148	22,865
Net loss		—		—		—	(177,025)		—	—	(177,025)
Other comprehensive loss		—	—	—	—	—	—	—	(18)	—	(18)
Total comprehensive loss		—		—		—	(177,025)		(18)		(177,042)
Conversion of convertible loans	6	18	—	146,259	—	—	—	—	—	—	146,277
Conversion of earn outs	6	1	—	515	—	—	—	—	—	(515)	1
Share capital restructuring	6	1,438	—	(1,438)	—	—	—	—	—	—	—
Reverse acquisition of Lakestar SPAC	6	665	—	164,616	—	—	—	—	—	70,437	235,718
Redemption of SPAC shares and warrants	6	—		102,692		(102,692)	—		—	—	—
Share issuance for PIPE financing	6	144	—	74,856	—	—	—	—	—	—	75,000
Share issuance transaction costs	6	—	—	(1,818)	—	—	—	—	—	—	(1,818)
Share-based compensation	31	81	—	12,693	—	—	—	—	—	(23,325)	(10,551)
As of Dec 31, 2021		2,441		611,656		(102,692)	(289,681)		(18)	68,745	290,451

As of Jan 1, 2022		2,441		611,656		(102,692)	(289,681)		(18)	68,745	290,451
Net loss		—		—		—	(53,499)		—	—	(53,499)
Other comprehensive loss		—		—		—	—		(222)	—	(222)
Total comprehensive loss		—		—		—	(53,499)		(222)	—	(53,721)
Re-issuance of treasury shares as consideration for acquisitions - net of transaction costs and tax	6	—		(7,701)		11,521	—		—	—	3,821
Share-based compensation	30	—		(4,309)		10,556	—		—	16,893	23,141
As of Dec 31, 2022		2,441		599,646		(80,615)	(343,175)		(240)	85,638	263,697

The accompanying notes are an integral part of these consolidated financial statements.

*) Refer to note 35 for the resulting effects from a change in presentation of warrants from equity to liabilities.

**) This column has been added as an adjustment to prior year to enhance transparency.

Consolidated Statements of Cash Flows for the Years Ended

December 31


(in EUR thousands)	Note	2022	2021* (adjusted)
Loss before income tax		(58,738)	(176,823)
Adjustments for:
Depreciation and amortization		12,974	4,690
Non-cash listing service expense - de-SPAC Charge		—	70,437
Non-cash employee benefits expense - share-based payments	30	25,652	31,560
Fair value (gains)/losses on non-current financial assets at fair value through profit or loss		—	(377)
VSOP - Exercise tax settlement charge		(1,683)	(30,495)
VSOP - Cash paid to beneficiaries		(262)	(11,616)
Finance costs - net	15	(6,928)	46,368
Net exchange differences		(1,047)	(972)

Change in operating assets and liabilities
(Increase) / Decrease in trade and other receivables		6,722	(12,496)
(Increase) / Decrease in other financial assets	22	(187)	(4,968)
(Increase) / Decrease in other assets	23	3,726	(4,135)
Increase / (Decrease) in trade and other payables		(5,834)	9,742
Increase / (Decrease) in other financial liabilities	27	(4,986)	2,439
Increase / (Decrease) in other liabilities	28	(4,782)	(5,067)
Increase / (Decrease) in provisions	26	770	(376)
Cash generated from operations		(34,602)	(82,088)

Interest and other finance cost paid (-)		(997)	(1,140)
Income taxes (paid) / received		(750)	(28)
Net cash used in operating activities		(36,349)	(83,256)
Proceeds from / (Payments for) financial assets at fair value through profit and loss	22	50,000	(100,000)
Payment for acquisition of subsidiaries, net of cash acquired	6	(46,199)	(16,385)
Payments for property, plant and equipment	20	(382)	(324)
Payments for intangible assets	19	(187)	(91)
Payments for internally generated intangible assets	19	(3,828)	(1,545)
Proceeds from sale of property, plant and equipment		(25)	2
Net cash used in investing activities		(621)	(118,343)
Proceeds from borrowings and convertible loans	25/26	—	76,175
Proceeds from recapitalization, net of redemptions		—	171,489
Proceeds from PIPE financing		—	75,000
Transaction costs		—	(1,818)
Repayments of borrowings	25	(4,362)	(2,787)
Principal elements of lease payments		(891)	(966)
Net cash provided by financing activities		(5,253)	317,093
Net increase (decrease) in cash and cash equivalents		(42,223)	115,494
Cash and cash equivalents at the beginning of the period		152,944	36,237
Effects of exchange rate changes on cash and cash equivalents		1,329	1,213
Cash and cash equivalents at the end of the period		112,050	152,944

The accompanying notes are an integral part of these consolidated financial statements.

*) refer to Note 35 for the resulting effects from a change in presentation of warrants from equity to liabilities.

HomeToGo SE, Luxembourg

Notes to the Consolidated Financial Statements

(Amounts in EUR thousands, except stated otherwise)

1 - Corporate information

The HomeToGo Group (“HomeToGo” or “Group”), comprises the parent entity HomeToGo SE ("HomeToGo

SE"), Luxembourg, Luxembourg (the “Company”), and its direct and indirect subsidiaries. The Company is

registered in the commercial register of the Registre de commerce et des sociétés in Luxembourg under

number B249273. The Company’s address is Rue de Bitbourg 9, 1273, Luxembourg, Luxembourg.

The business activities of HomeToGo include the operation of an international marketplace for alternative

accommodations that connects millions of users searching for a place to stay with thousands of inventory

suppliers across the globe, resulting in the world’s most comprehensive inventory coverage in the alternative

accommodation space. At the time of the report, HomeToGo’s portfolio comprised more than 15 million

aggregated accommodation offers provided by over 60,000 online travel agencies, tour operators, property

managers and other inventory suppliers (“Partners”) worldwide. HomeToGo operates its business through

localized websites and apps in 25 countries. The marketplace seamlessly integrates a vast inventory in one

simple search and enables users to book accommodations from diverse Partners, either on the Partner’s

external accommodation websites or directly on the HomeToGo marketplace platform. The consolidated

financial statements of HomeToGo were initially authorized for issue by the Management Board on March 29,

2023.

HomeToGo SE was originally known as Lakestar SPAC I SE (“Lakestar SPAC”) a Special Purpose Acquisition

Company with the objective of acquiring a European late-stage growth company in the technology sector with

the funds raised from private placements. Lakestar SPAC became listed on the Frankfurt Stock Exchange on

February 22, 2021.

On July 14, 2021, HomeToGo GmbH and Lakestar SPAC entered into a Business Combination Agreement

(“BCA”) whereby Lakestar SPAC became the legal parent company of HomeToGo GmbH, its direct and indirect

subsidiaries for a contribution and exchange of HomeToGo GmbH shares for new Public Shares (the “Business

Combination” or “Transaction”). On September 21, 2021 the Transaction was closed (the “Closing”) and

Lakestar SPAC changed its name to HomeToGo SE.

HomeToGo GmbH was deemed to be both the accounting acquirer and the predecessor entity in the

subsequent fillings of the combined company. Please refer to Note 6 - Business Combinations and other

Acquisitions in the notes to the consolidated financial statements for 2021 for further explanations on the

Transaction.

2 - Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with International

Financial Reporting Standards (“IFRS”) and the interpretations issued by the International Financial Reporting

Standards Interpretations Committee (“IFRIC”) as adopted by and to be applied in the European Union.

The official version of the accounts is the ESEF version available at the Officially Appointed Mechanism (OAM)

of Luxembourg under https://www.bourse.lu/issuer/HomeToGo/102802.

The accounting principles set out below, unless stated otherwise, have been applied consistently for all periods

presented in the consolidated financial statements. We refer to note 35 - Change in accounting policy -

Classification of warrants for the change in presenting warrants in accounting for the de-SPAC transaction.

HomeToGo has also decided to change the presentation of treasury shares in its Statement of changes in equity

by introducing a separate column on treasury shares, which shows the deduction from equity. HTG determined

that such change would improve the transparency about the development of treasury shares, which will be

reissued through transactions or as settlement of claims resulting from share-based compensation.

HomeToGo’s financial year ends December 31. All intercompany transactions are eliminated during the

preparation of the consolidated financial statements.

The consolidated financial statements have been prepared on a historical cost basis, unless otherwise stated.

The consolidated financial statements are presented in Euro (“EUR”), which is the functional currency of the

Company and all subsidiaries of HomeToGo. All values are rounded to the nearest thousand, except when

otherwise indicated. Due to rounding, differences may arise when individual amounts or percentages are

added together.

The consolidated financial statements are prepared under the assumption that the Group will continue as a

going concern. Management believes that HomeToGo has adequate resources to continue operations for the

foreseeable future.

3 - Scope of consolidation

The consolidated financial statements include the balances and results of the Company and its wholly-owned

subsidiaries. Subsidiaries are entities directly or indirectly controlled by the Company. The Company controls an

entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and has

the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date

on which control commences until the date on which control ceases.

Besides the Company, the following subsidiaries are included in the scope of consolidation as of December 31,

2022:


Subsidiary	Location	Percentage of ownership
HomeToGo GmbH	Berlin, Germany	100%
Casamundo GmbH	Berlin, Germany	100%
Smoobu GmbH	Berlin, Germany	100%
Atraveo GmbH	Düsseldorf, Germany	100%
e-domizil GmbH	Frankfurt, Germany	100%
SECRA GmbH	Sierksdorf, Germany	100%
SECRA Bookings GmbH	Sierksdorf, Germany	100%
e-domizil AG	Zurich, Switzerland	100%
Feries S.r.l.	Milan, Italy	100%
Escapada Rural S.L.	Barcelona, Spain	100%
AMIVAC SAS	Paris, France	100%
Adrialin d.o.o.	Rijeka, Croatia	100%
UAB HomeToGo Technologies	Kaunas, Lithuania	100%
UAB HomeToGo Technologies Vilnius	Vilnius, Lithuania	100%
HOMETOGO INTERNATIONAL, INC.	Wilmington, Delaware, USA	100%

Please refer to Note 6 - Business Combinations and other acquisitions for additions to the scope of

consolidation during the year 2022 .

Effective January 1, 2022, LS I Advisors Verwaltungs-GmbH, Munich, Germany, HS Holiday Search GmbH, Berlin,

Germany, Mertus 288. GmbH, Berlin, Germany, and Mapify UG (haftungsbeschränkt), Kassel, Germany were

merged onto HomeToGo GmbH, all four entities ceased to exist. Furthermore, effective March 29, 2022 LS I

Advisors GmbH & Co. KG, Munich, Germany was merged onto HomeToGo SE and also ceased to exist.

On July 4, 2022, HomeToGo GmbH entered into a sale and purchase agreement for 100% of the shares in

Adrialin d.o.o for a total preliminary cash consideration of EUR 0.7 million. The entity is based in Croatia with its

principal business being the activity of an online travel agency (OTA).

In accordance with provisions of section 264 paragraph 3 of German Commercial Code (Handelsgesetzbuch),

Casamundo GmbH, e-domizil GmbH, Atraveo GmbH, are exempt from the requirement to prepare notes the

financial statements and a management report (where applicable) as well as to publish their financial

statements and management reports (where applicable).

4 - Summary of significant accounting policies

a)Current versus non-current classification

HomeToGo classifies assets and liabilities by maturity. They are classified as current in the consolidated

statement of financial position if they mature or are otherwise settled or realized within one year. Deferred tax

assets and liabilities are consistently presented as non-current in the consolidated statement of financial

position.

b)Foreign currency translation

HomeToGo’s consolidated financial statements are presented in Euro, which is the functional and presentation

currency of the Company and its subsidiaries. For each entity, the Group determines the functional currency

and items included in the financial statements of each entity are measured using that functional currency.

Functional currency is defined as the currency of the primary economic environment in which each entity

operates.

Any transactions denominated in foreign currencies are translated at the exchange rates prevailing on the date

of transaction. Balance sheet items denominated in foreign currencies are translated at the closing rate for

each reporting period, with resulting translation differences recognized within the consolidated statement of

profit or loss and comprehensive income.

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary

economy) that have a functional currency different from the presentation currency are translated into the

reporting currency as follows:

•assets and liabilities for each balance sheet presented are translated at the closing rate at the date of

that balance sheet

•income and expenses for each statement of profit or loss and statement of comprehensive income are

translated at average exchange rates (unless this is not a reasonable approximation of the cumulative

effect of the rates prevailing on the transaction dates, in which case income and expenses are

translated at the dates of the transactions), and

•all resulting exchange differences are recognized in other comprehensive income.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities,

and of borrowings are recognized in other comprehensive income. When a foreign operation is sold or any

borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified

to profit or loss, as part of the gain or loss on sale.

c)Profit or loss structure

HomeToGo uses a cost of revenue structure to present its expenses by function. See Note 9 and the following

paragraph for further explanations about the content in the different profit or loss line items.

d)Revenue recognition

HomeToGo applies IFRS 15 Revenue from Contracts with customers. The standard establishes principles for

reporting information to users of financial statements, about the nature, amount, timing and uncertainty of

revenue and cash flows arising from an entity’s contracts with customers. Management applies the five-step

model according to IFRS 15 when determining the timing and amount of revenue recognition.

HomeToGo operates a marketplace for alternative accommodations that connects millions of travelers

searching for a perfect place to stay with thousands of inventory suppliers across the globe. HomeToGo

generates revenue through the following main revenue types:

•Cost per Action (“CPA”): CPA is the largest revenue stream, whereby HomeToGo receives a percentage-

based commission for successful onsite- or offsite booking referrals, which facilitate a stay. Depending on

the contractual terms with the respective partner, the revenue for HomeToGo is either calculated as

percentage of the commission or as percentage of the booking value (sometimes called revenue share).

•Cost per Click (“CPC”) HomeToGo receives a fixed commission based on every successful referral click.

•Cost per Lead (“CPL”): HomeToGo receives a fixed commission based on every successful referral inquiry

(lead).

•Subscriptions & Services are related to subscription-based revenue from Partners who can use the

platform for listing of their rental objects over a determined period.

CPA transactions are commission-based revenues where the Partner compensates HomeToGo for facilitating

bookings that resulted in a stay of the traveler. HomeToGo is acting as an agent in either scenario as described

above. The Company considers its Partners, in particular online travel agencies (“OTAs”), or the rental property

owners and managers to be its customers. Only the CPA contracts and the specific bookings taken together

would constitute a contract under IFRS 15. Typically, these bookings are cancellable at any time. The contracts

with the OTA partners stipulate that HomeToGo only earns CPA for bookings that facilitate a stay. Furthermore,

for the majority of contracts the payment claim of HomeToGo only comes into existence once the check-in of

the traveler has occurred. HomeToGo also engages in a multitude of post-booking activities that facilitate the

check-in (hence the stay of the traveler), e.g. customer support for the traveler. These activities are not distinct

from each other and are not separate performance obligations. It is therefore management’s judgement to

define the single performance obligation of the Group’s CPA transactions as ‘successful booking’ which

facilitates a stay. Therefore, the revenues for CPA transactions are recognized at the same point in time as the

check-in date of the traveler when HomeToGo’s performance obligation is satisfied. Payments received from

Partners for bookings where check-in has not occurred yet are recognized as contract liabilities.

For CPC or CPL transactions, HomeToGo receives a fixed commission based on every successful inquiry or

referral click. As opposed to CPA transactions, each click or inquiry initiated by the traveler through the

HomeToGo platform with referral to the partner website is considered a distinct promised service. HomeToGo

has an enforceable payment claim based on the monthly click volume and is not subject to cancellation or

similar risks. Therefore, the ‘simple referral’ through CPC meets the criteria of a performance obligation which

is satisfied at a point in time i.e. with the click through the partner website. HomeToGo recognizes the revenue

for CPC at the corresponding click date.

In HomeToGo’s subscription contracts, property managers or owners pay in advance for Software as a Service

("SaaS") and online advertising services related to the listing of their properties for rent over a fixed period,

which is usually one year. As the performance obligation is the SaaS or listing service and is provided to the

property manager/owner over time of use (SaaS) or the life of the listing period, the Subscriptions & Services

IFRS Revenues are recognized on a straight-line basis over the time of use (SaaS) or listing period respectively.

Amounts received as prepayment are recognized as contract liabilities.

Variable consideration might occur in the form of performance-based bonuses with respect to revenue based

on bonus agreements that can be agreed for CPL and CPA transactions. HomeToGo includes variable

consideration estimated in the transaction price only to the extent that it is highly probable that a significant

reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with

the variable consideration is subsequently resolved.

e)Intangible assets and goodwill

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and

accumulated impairment losses, if any. The useful life of intangible assets is assessed as either finite or

indefinite. Refer to Note 19 - Intangible assets and goodwill for further details regarding the carrying amount of

HomeToGo’s intangible asset balances and to Note 6 - Business Combinations and other acquisitions with

respect to information on goodwill and intangible assets resulting from business combinations.

Intangible assets with a finite useful life

Intangible assets with a finite useful life consist of licenses, trademarks and domains, customer relationships,

order backlog and internally generated software.

In accordance with IAS 38, development costs that are directly attributable to the design, coding and testing of

identifiable software modules controlled by the Group are recognized as intangible assets where the following

criteria are met: 1) It is technically feasible to complete the software so that it will be available for use, 2)

management intends to complete the software and use or sell it, 3) there is an ability to use or sell the

software, 4) it can be demonstrated how the software will generate probable future economic benefits, 5)

adequate technical, financial and other resources to complete the development and to use or sell the software

are available, 6) and the expenditure attributable to the software during its development can be reliably

measured. Directly attributable costs that are capitalized as part of the software include employee costs and

other directly attributable costs. Software maintenance costs are recognized as an expense incurred.

Intangible assets with a finite life are amortized over their estimated useful life on a straight-line basis and

assessed for impairment whenever there is an indication that the intangible asset may be impaired. The

amortization period and the amortization method of intangible assets with a finite useful life are reviewed at

least annually, with any changes treated as changes in accounting estimates. Changes in the expected useful

life or the expected pattern of consumption of the assets’ future economic benefits are considered when

assessing the amortization method and useful life of the asset.

The estimated useful lives are as follows:


Asset type		Estimated useful life
Software and licenses		3 to 5 years
Trademarks		3 to 15 years
Customer relationship		up to 10 years
Order backlog		1 year
Internally generated software		3 to 7 years
Goodwill		indefinite

Intangible assets and goodwill

HomeToGo’s goodwill originated from the acquisitions of subsidiaries and is included in intangible assets and

goodwill. Goodwill represents the difference between the purchase price and the net identifiable assets

acquired at fair value. Refer to Note 6 for further details on Business Combinations.

Goodwill is not subject to amortization but tested annually for impairment, or more frequently if events or

changes in circumstances indicate that they might be impaired. Refer to accounting policy on business

combination and goodwill in section p).

f)Property, plant and equipment

Property, plant and equipment is stated at historical cost, net of accumulated depreciation and accumulated

impairment losses, if any. Historical cost includes any expenditures that are directly attributable to the

acquisition of the asset, including costs incurred to prepare the asset for its intended use.

Property, plant and equipment is depreciated on a straight-line basis over each asset’s expected useful life.

Depreciation methods, useful lives and residual values are reviewed at least annually and adjusted

prospectively, if appropriate.

HomeToGo applies the following useful lives when estimating depreciation of property and equipment:


Asset type		Estimated useful life
Leasehold improvements		2 to 15 years
Other equipment and office equipment		2 to 13 years

Leasehold improvements are amortized over the shorter of the underlying lease or the expected useful life of

the asset.

All repair and maintenance costs are expensed when incurred.

HomeToGo assesses property, plant and equipment for impairment whenever there is an indication of

potential impairment.

g)Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the

arrangement at inception. The arrangement is, or contains, a lease if fulfillment of the arrangement is

dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or

assets, even if that right is not explicitly specified in an arrangement. HomeToGo assesses at the inception of

the contract whether the contract is or contains a lease.

HomeToGo’s leases consist of real estate, car leasing and distinct server leases. Lease terms are negotiated on

an individual basis and may contain a range of different terms and conditions. Lease contracts may be

negotiated for fixed period or include extension options.

To determine the lease terms, all facts and circumstances which offer economic incentives to exercise

extension options are included. If it is reasonably certain that a lease term will be extended, the related

extension option is included. The lease terms include fixed payments as well as variable payments that depend

on an index or rate.

Management of HomeToGo reviews the contractual and current market conditions individually when

determining whether an extension option is reasonably certain to be exercised.

The lease liability is measured at the date of commencement of the lease as the present value of the expected

lease payments. To determine the present value, HomeToGo discounts the remaining lease payments with the

incremental borrowing rate of the lessee. The incremental borrowing rate is the interest rate that HomeToGo

would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an

asset of a similar value to the right-of-use asset as the underlying lease agreement in a similar economic

environment.

Right-of-use assets are measured at cost at the date of commencement of the lease. The cost is comprised of

the initial lease liability measurement and any lease payments made before the commencement date, less any

lease incentives received and estimated cost of dismantling and removing the underlying asset incurred by the

lessee.

Right-of-use assets are presented in the balance sheet as part of property, plant and equipment.

After the commencement date, HomeToGo measures right-of-use assets at cost less accumulated depreciation

and any accumulated impairment losses.

For subsequent measurement, the carrying amount of the lease liability is increased to reflect the interest on

the lease liability and reduced to reflect the lease payments made. The finance expenses associated with the

lease term are recognized in the consolidated statement of profit or loss and other comprehensive income over

the lease term.

No impairment losses have been identified on HomeToGo’s right-of-use assets in 2022 and 2021.

HomeToGo elected to apply an exemption for low value leases and short-term leases in accordance with IFRS

16. Low value leases are leases with contract amounts below EUR 5 thousand. Short-term leases relate to lease

agreements with a lease term of less than 12 months. Lease payments associated with low value leases and

short-term leases are expensed on a straight-line basis over the lease term. Accordingly, no right-of-use assets

or lease liabilities are recognized for low value and short-term leases.

h)Impairment of non-financial assets

HomeToGo assesses whether an asset may be impaired at each reporting date. If any indication of impairment

exists, or when annual impairment testing for such an asset is required, HomeToGo estimates the asset’s

recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit's (CGU)

fair value less costs of disposal or its value in use. The recoverable amount is determined for an individual asset,

unless the asset does not generate cash inflows that are largely independent of those from other assets or

groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is

considered impaired and written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a discount

rate that reflects current market assessments of the time value of money and the risks specific to the asset.

HomeToGo does not use the fair value less costs of disposal method when assessing the recoverable amount of

its non-financial assets.

HomeToGo bases its impairment calculation on detailed budgets and forecasted cash flows. Impairment losses

are recognized in the consolidated statement of profit or loss and other comprehensive income in expense

categories consistent with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an

indication that previously recognized impairment losses no longer exist or has decreased.

If such indication exists, HomeToGo estimates the asset’s or CGU’s recoverable amount.

Financial instruments - Initial recognition and subsequent events

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or

equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value

through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow

characteristics and HomeToGo’s business model for managing them. With the exception of trade receivables

that do not contain a significant financing component or for which the Group has applied the practical

expedient, HomeToGo initially measures a financial asset at its fair value plus, in the case of a financial asset

not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant

financing component or for which HomeToGo has applied the practical expedient are measured at the

transaction price.

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs

to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount

outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial

assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss,

irrespective of the business model.

HomeToGo’s business model for managing financial assets refers to how it manages its financial assets in order

to generate cash flows. The business model determines whether cash flows will result from collecting

contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at

amortized cost are held within a business model with the objective to hold financial assets in order to collect

contractual cash flows while financial assets classified and measured at fair value through OCI are held within a

business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

•Financial assets at amortized cost (debt instruments)

•Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

•Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon

derecognition (equity instruments)

•Financial assets at fair value through profit or loss (equity instruments, money market funds)

Financial assets at amortized cost (debt instruments)

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are

subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized,

modified or impaired.

In the case of a financial asset not at fair value through profit or loss (FVTPL), financial assets are measured at

amortized cost and include trade and other receivables and other financial assets.

Financial assets at fair value through profit or loss (equity instruments)

The group subsequently measures all equity investments at fair value. Changes in the fair value of financial

assets at FVTPL, in particular to investments in money market funds, are recognized in profit or loss in the

period in which it arises.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is

derecognized (i.e., removed from HomeToGo’s consolidated statement of financial position) when:

•The rights to receive cash flows from the asset have expired

•HomeToGo has transferred its rights to receive cash flows from the asset or has assumed an obligation to

pay the received cash flows in full without material delay to a third party under a ‘pass-through’

arrangement; and either (a) HomeToGo has transferred substantially all the risks and rewards of the asset,

or (b) HomeToGo has neither transferred nor retained substantially all the risks and rewards of the asset,

but has transferred control of the asset.

When HomeToGo has transferred its rights to receive cash flows from an asset or has entered into a pass-

through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor

transferred control of the asset, HomeToGo continues to recognize the transferred asset to the extent of its

continuing involvement. In that case, HomeToGo also recognizes an associated liability. The transferred asset

and the associated liability are measured on a basis that reflects the rights and obligations that HomeToGo has

retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower

of the original carrying amount of the asset and the maximum amount of consideration that HomeToGo could

be required to repay.

Impairment

HomeToGo recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair

value through profit or loss, if the exposure is material, presented under General and administrative expenses.

For trade receivables, HomeToGo applies a simplified approach in calculating ECLs. Therefore, HomeToGo does

not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting

date if the exposure is material. HomeToGo has established a provision matrix that is based on its historical

credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic

environment.

The Group considers a financial asset in default when contractual payments are 365 days past due. However, in

certain cases, HomeToGo may also consider a financial asset to be in default when internal or external

information indicates that HomeToGo is unlikely to receive the outstanding contractual amounts in full before

taking into account any credit enhancements held by HomeToGo. A financial asset is written off when there is

no reasonable expectation of recovering the contractual cash flows.

HomeToGo holds trade receivables from contracts with partners as of December 31, 2022 of EUR 13.5 million,

as of December 31, 2021 of EUR 9.8 million. These have been impaired by EUR 1.7 million, 2021: EUR 0.8

million.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, either as financial liabilities at fair value through profit or

loss or as financial liabilities at amortized cost.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and other

payables, net of directly attributable transaction costs.

HomeToGo’s financial liabilities include trade and other payables, as well as loans and borrowings including

bank overdrafts as well as financial liabilities from warrants.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

•Financial liabilities at fair value through profit or loss

•Financial liabilities at amortized cost

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial

liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the

near term.

Gains or losses on liabilities held for trading are recognized in the statement of profit or loss. The Group has

classified the Class A Warrants and Class B Warrants as financial liabilities as at fair value through profit or loss.

Financial liabilities at amortized cost

This is the category in accounting for loans and borrowings, except for Class A and Class B Warrants described

above. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized

cost using the effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the

liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs

that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit

or loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms,

or the terms of an existing liability are substantially modified, such an exchange or modification is treated as

the derecognition of the original liability and the recognition of a new liability. The difference in the respective

carrying amounts is recognized in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement

of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is

an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants as of the measurement date in the principal or, in its absence, the

most advantageous market to which HomeToGo has access at that date. The fair value of a liability reflects its

non-performance risk.

HomeToGo measures the fair value of an instrument using the quoted price in an active market for that

instrument, if such price is available. A market is regarded as ‘‘active’’ if transactions for the asset or liability

take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then HomeToGo uses valuation techniques that maximize the

use of relevant observable inputs and minimize the use of unobservable inputs. The chosen valuation

technique incorporates all factors that market participants would take into account in pricing a transaction.

In determining the appropriate fair value measurement for financial assets and liabilities, the Group involves an

independent external valuation expert, who uses appropriate valuation techniques.

Based on the input parameters used for measuring the fair values are assigned to one of the following levels of

the fair value hierarchy for purposes of disclosure:

•Level 1: Quoted (unadjusted) market prices in active markets for identical assets and liabilities,

•Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,

either directly (that is, as prices) or indirectly (that is, derived from prices), and

•Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable

inputs).

i)Treasury Shares

Treasury shares of HomeToGo SE are recognized with their acquisition costs paid to repurchase its own shares.

They result from the redemption process as part of the de-SPAC transaction on September 21, 2021. The

acquisition costs for the own shares are deducted from equity. All shares redeemed are Class A Shares.

Management may use treasury shares to settle share-based payment obligations, service warrant exercises and

as part of consideration in case of business combinations. No gain or loss is recognized in profit or loss on the

purchase, sale, issue or cancellation of the own shares.

j)Provisions

HomeToGo recognizes provisions when it has a present obligation, legal or constructive, as a result of a past

event, it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the

present value of management´s best estimate of the expenditure required to settle the present obligation at

the end of the reporting period. The increase in provision due to the passage of time and unwinding of the

discount rate is recognized as finance expenses.

k)Income taxes

Current income taxes

Current income tax is the expected tax payable or receivable based on the taxable income or loss for the period

and the tax laws that have been enacted or substantively enacted as of the reporting date. Management

periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation

is subject to interpretation. It establishes provisions where appropriate based on amounts expected to be paid

to the tax authorities. In case of uncertainties related to income taxes, they are accounted for in accordance

with IFRIC 23 and IAS 12 based on the best estimate of those uncertainties.

HomeToGo establishes tax liabilities based on expected tax payments. Liabilities for trade taxes, corporate

taxes and similar taxes on income are determined based on the taxable income of the consolidated entities less

any prepayments made. Calculation of tax liabilities is based on the recent tax rates applicable in the tax

jurisdiction of HomeToGo.

Deferred taxes

Deferred taxes are recognized on temporary differences between the carrying amounts of assets and liabilities

in the financial statements and the corresponding tax bases used in the computation of taxable income and are

accounted for using the balance sheet-liability method.

Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets

are recognized to the extent that it is probable that taxable income will be available against which deductible

temporary differences can be utilized.

However, deferred tax liabilities are not recognized if the temporary difference arises from goodwill.

Furthermore, deferred tax assets and deferred tax liabilities are not recognized if the temporary difference

arises from the initial recognition (other than in a business combination) of other assets and liabilities in a

transaction that affects neither taxable income, nor the accounting profit.

Current and deferred tax is charged or credited in the consolidated statement of profit or loss and other

comprehensive income, except when it relates to items charged or credited directly to equity, in which case the

current or deferred tax is also recognized directly in equity.

Deferred tax assets and liabilities are calculated using tax rates expected to be in place in the period of

realization of the associated asset or liability, based on tax rates and tax laws that have been enacted or

substantively enacted by the end of the reporting period in the respective jurisdiction.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it

is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be

recovered.

l)Earnings (Loss) per share

HomeToGo presents earnings (loss) per share data for its ordinary shares. Basic earnings (loss) per share is

calculated by dividing the net income of the period attributable to the owners of the Company by the weighted

average number of ordinary shares outstanding during the period. HomeToGo only issued ordinary shares

according to IAS 33, all of which are outstanding, because all share classes are subject to the same dividend

entitlement with regard to the earnings for the period. The potential ordinary shares were not taken into

account, because the effect on loss per share would have been antidilutive. The weighted average number of

shares is calculated from the number of shares in circulation at the beginning of the period adjusted by the

number of shares issued during the period and multiplied by a time-weighting factor. The time-weighting factor

reflects the ratio of the number of days on which shares were issued and the total number of days of the

period.

m)Segment reporting

An operating segment is a component of HomeToGo that engages in business activities from which it may earn

Revenues and incur expenses and for which discrete financial information is available and used by the Chief

Operating Decision Maker (“CODM”) to make decisions around resource allocation and review operating

results of HomeToGo. HomeToGo identified the CEO of the Company as the CODM and operates under only

one operating segment and therefore the consolidated financial information represents the segment reporting.

n)Share-based compensation and other employee benefits

The Group granted remuneration in the form of share-based payments, whereby management and employees

render services as consideration for equity instruments of the Group (equity-settled transactions).

The measurement of equity-settled transactions is determined by the fair value at the date when the grant is

made using an appropriate valuation model in accordance with IFRS 2. Costs are recognized within profit or loss

together with a corresponding increase in equity (share-based payment reserves), over the period in which the

service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative

expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the

extent to which the vesting period has expired and the Group’s best estimate of the number of equity

instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period

represents the movement in cumulative expense recognized as at the beginning and end of that period. Service

and non-market performance conditions are not taken into account when determining the grant date fair value

of awards, but the likelihood of the conditions being met is assessed as part of HomeToGo’s best estimate of

the number of equity instruments that will ultimately vest. Market performance conditions are reflected within

the grant date fair value. Any other conditions attached to an award, but without an associated service

requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value

of an award and lead to an immediate expensing of an award unless there are also service and/or performance

conditions. No expense is recognized for awards that do not ultimately vest because non-market performance

and/or service conditions have not been met. Where awards include a market or non-vesting condition, the

transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied,

provided that all other performance and/or service conditions are satisfied. When the terms of an equity-

settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified

award, provided the original vesting terms of the award are met. An additional expense, measured as at the

date of modification, is recognized for any modification that increases the total fair value of the share-based

payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or

by the counterparty, any remaining element of the grant date fair value of the award is credited immediately

through profit or loss.

The Group sometimes engages in share-based payment transactions to acquire goods or services from parties

other than employees, e.g. as part of business combinations. The goods or services received in exchange for

shares should be measured at the fair value of those goods or services. It is presumed that the fair value of

goods or services can be measured reliably in the case of transactions with parties other than employees. If this

presumption is rebutted, the fair value is measured indirectly by reference to the fair value of the equity

instruments granted as consideration. Employee services or unidentifiable goods or services are measured

indirectly at the date on which the equity instruments are granted. The fair value is not subsequently re-

measured after the grant date.

Employee Benefits

The Group also has liabilities for long service leave and annual leave that are not expected to be settled wholly

within 12 months after the end of the period in which the employees render the related service. These

obligations are therefore measured as the present value of expected future payments to be made in respect of

services provided by employees up to the end of the reporting period, using the projected unit credit method.

Consideration is given to expected future wage and salary levels, experience of employee departures and

periods of service. Expected future payments are discounted using market yields at the end of the reporting

period of high-quality corporate bonds with terms and currencies that match, as closely as possible, the

estimated future cash outflows.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an

unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when

the actual settlement is expected to occur.

Termination benefits are payable when employment is terminated by the group before the normal retirement

date, or when an employee accepts voluntary redundancy in exchange for these benefits. The group recognizes

termination benefits at the earlier of the following dates: (a) when the group can no longer withdraw the offer

of those benefits; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37

and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary

redundancy, the termination benefits are measured based on the number of employees expected to accept the

offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present

value.

The Group has long-term incentive plans for two managing directors as a result of a business combination. The

managing directors will be entitled to a payment of up to EUR 2.0 million each after fulfilling a service period of

30 months after acquisition and meeting related sales-based performance goals. The liability is presented

under long-term financial liabilities and subjected to linear vesting over the service period. If one of the

managing directors is leaving before the end of the service period the respective claim is forfeited while the

other managing directors claim is not.

o)Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all

attached conditions will be complied with. When the grant relates to an expense item, it is recognized as

income on a systematic basis over the periods that the related costs, for which it is intended to compensate,

are expensed. The Group has chosen to present grants related to an expense item as other operating income in

the statement of profit or loss and other comprehensive income.

p)Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured

as the aggregate of the consideration transferred, which is measured at acquisition date fair value. Acquisition-

related costs are expensed as incurred and included in General and administrative expenses.

The Group determines if a transaction is to be accounted for as a business combination, using the

concentration test and by determining that it has acquired a business when the acquired set of activities and

assets include an input and a substantive process that together significantly contribute to the ability to create

outputs. The acquired process is considered substantive if it is critical to the ability to continue producing

outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or

experience to perform that process or it significantly contributes to the ability to continue producing outputs

and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability

to continue producing outputs.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition

date. Contingent consideration classified as an asset or liability that is a financial instrument and within the

scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognized in the

statement of profit or loss in accordance with IFRS 9.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and

any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of

the net assets acquired is in excess of the aggregate consideration transferred, the Group reassesses whether it

has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures

used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an

excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is

recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose

of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to

the group of CGUs. The allocation is made to those groups of CGUs that are expected to benefit from the

business combination in which the goodwill arose. The units or groups of units are identified at the lowest level

at which goodwill is monitored for internal management purposes, being the one operating segment.

HomeToGo Group operates under one segment that comprises seven CGUs. Besides the CGU HomeToGo that

comprises the operating entities HomeToGo and Casamundo Management identifies the acquired businesses

Feries, Escapada Rural, Smoobu, AMIVAC, e-domizil and SECRA as separate CGUs for the purpose of testing

assets, other than goodwill, for impairment. Goodwill is tested for impairment on the basis of the seven

combined CGUs as the synergies from the business combinations are benefiting the business of the whole

Group. The Group level is the lowest at which management captures information for internal management

reporting purposes about the benefits of goodwill.

Impairment losses relating to goodwill cannot be reversed in future periods.

5 - New and revised standards

New and revised standards issued, but not yet effective

At the date of authorization of these financial statements, HomeToGo has not early applied the following new

and revised IFRS standards that have been issued, but are not yet effective:


New or revised standards – endorsement completed		Effective date
IFRS 17 Insurance Contracts		January 1, 2023
IFRS 17 (A) Insurance Contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information		January 1, 2023
IAS 12 (A) Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction		January 1, 2023
IAS 1 (A) Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies		January 1, 2023
IAS 8 (A) Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates		January 1, 2023
(A) Amendment

New or revised standards – endorsement outstanding		Effective date
IAS 1 (A) Presentation of Financial Statements: Classification of Liabilities as Current or Non- current (2020)		January 1, 2024
IAS 1 (A) Presentation of Financial Statements: Non-current Liabilities with Covenants (2022)		January 1, 2024
IFRS 16 (A) Leases: Lease Liability in a Sale and Leaseback		January 1, 2024
(A) Amendment

From the standards listed above the only amendments expected to have an impact on the reported assets and

liabilities and net income of HomeToGo are the one listed below.

The IAS 12 (A) will have an impact on the recognition of deferred tax liabilities and assets from rights of use

assets and lease liabilities in the future. So far, the exemption for the initial recognition of a deferred tax

resulting from the recognition of a rights of use asset and lease liability according to IAS 12.15 has been availed,

which will not be possible anymore.

The impact on the consolidated financial statements from the amendments to IAS 1 is not considered to be

material.

6 - Business Combinations and other acquisitions

AMIVAC

On August 29, 2021, HS Holiday Search GmbH entered into a share transfer agreement for AMIVAC SAS

(“AMIVAC”) whereby the sole shareholder had to sell all shares in AMIVAC if the French workers council agreed

to the transaction. With the fulfillment of the condition, HS Holiday Search GmbH entered into a share

purchase agreement to acquire 100% of the shares in AMIVAC for EUR 4.2 million with a holdback amount of

EUR 1.0 million on October 27, 2021, with the agreed closing date being January 1, 2022.

As part of the agreement, the seller carved out all assets related to its vacation business unit and transferred

those to AMIVAC until January 1, 2022. As a result, AMIVAC holds three complementary platforms offering

vacation rental listings and an IT platform. In addition, the seller provided operational support through a service

agreement to run AMIVAC’s vacation rental business as usual during 2022.

Given that HomeToGo had no controlling rights as of December 31, 2021, the first-time consolidation of

AMIVAC only took place on January 1, 2022. Apart from the holdback amount of EUR 1.0 million, which was

shown within other financial liabilities, EUR 3.2 million were fully paid as of December 31, 2021.

The final allocation of the consideration to assets and liabilities assumed as of January 1, 2022, as part of the

business combination is shown in the following table:


(in EUR thousands)		Fair Value
Cash		150
Intangible assets: trademarks		570
Intangible assets: customer relationships		1,391
Intangible assets: software		117
Contract liabilities		(1,132)
Net deferred tax liability		(155)
Net identifiable assets acquired		941
Add: goodwill		3,209
Net assets acquired		4,150

A total deferred tax liability of EUR 155 thousand was recognized based on the local tax rate of 25%.

The goodwill recognized as part of the business combination relates to synergy effects with HomeToGo’s

marketplace and AMIVAC’s market position within the subscription business. It will not be deductible for tax

purposes. The goodwill is allocated to the CGU HomeToGo due to the expected synergy effects with the

HomeToGo platform through the access to additional inventory and further traffic.

Acquisition related costs of EUR 52 thousand are included in General and administrative expenses in the

consolidated statements of comprehensive income.

The acquired business contributed Revenues of EUR 2.3 million and a net loss of EUR 0.5 thousand to

HomeToGo during the financial year 2022.

The composition of the cash consideration, including partial payments of the holdback, and the impact on the

consolidated statements of cash flows during the reporting period can be derived from the following table:


(in EUR thousands)
Cash paid		702
Cash and cash equivalents acquired		150
Net cash paid for AMIVAC		552

EUR 298 thousand of the total consideration are still held back as of December 31, 2022.

e-domizil

With signing on March 31, 2022, HomeToGo GmbH and e-vacation Group Holding GmbH (the former

shareholder) entered into a sale and purchase agreement (‘SPA’) for 100% of the shares in e-domizil GmbH

located in Frankfurt am Main, Germany, for a total preliminary consideration of EUR 44.7 million. The total

preliminary consideration is composed of a preliminary cash portion in the amount of EUR 42.8 million

including a working capital adjustment in the amount of EUR 0.4 million and shares of HomeToGo SE equivalent

to the amount of EUR 1.9 million based on the agreed share price at closing date. EUR 4.0 million of the

preliminary cash consideration was paid to an escrow account and will be transferred to the former

shareholder in November 2023.

e-domizil has two subsidiaries that were included in the acquisition: e-domizil AG (located in Zurich,

Switzerland) and Atraveo GmbH (located in Düsseldorf, Germany).

e-domizil is a marketplace in the industry for alternative accommodations and is focused on the homeowner as

a customer. e-domizil simplifies the rental process including the collection process for the homeowner and

offers interfaces to third-party systems as well as e-domizil’s own websites. For its services, the subgroup is

entitled to commission depending on the rental price. e-domizil was acquired to strengthen the Group's

position in the alternative accommodation industry, further increasing its inventory reach.

The closing accounts and thus the purchase price determination have not been finalized as of December 31,

2022 due to unforeseen delays in support from seller side. Therefore, the purchase price allocation is subject to

changes that might affect the acquired goodwill. The preliminary allocation of the consideration to assets and

liabilities assumed as of April 1, 2022, as part of the business combination is shown in the following table:


(in EUR thousands)		Fair Value
Cash		13,311
Intangible assets: trademarks		4,873
Intangible assets: customer relationships		16,765
Intangible assets: software		2,149
Intangible assets: order backlog		6,345
Trade receivables		397
Property plant and equipment		349
Other assets		4,537
Trade payables		(2,427)
Traveler advance payments		(7,878)
Contract liabilities		(9,251)
Other financial liabilities		(529)
Other liabilities		(3,295)
Provisions		(103)
Income tax liabilities		(1,075)
Net deferred tax liability		(9,028)
Net identifiable assets acquired		15,140
Add: goodwill		29,537
Net assets acquired		44,677

A total deferred tax liability of EUR 9.0 million was recognized, based on the local tax rate of 30.2%. There were

no tax losses carried forward to be considered as deferred tax asset.

The goodwill recognized as part of the business combination relates to synergy effects with HomeToGo’s

marketplace and e-domizil’s market position within the vacation rental business. It will not be deductible for

tax purposes. The goodwill is allocated to the CGU HomeToGo due to the expected synergy effects with the

HomeToGo platform through the access to additional inventory and further traffic.

The fair value of acquired trade receivables is EUR 397 thousand and equals the gross contractual amount for

trade receivables less loss allowances.

Acquisition-related costs of EUR 588 thousand are included in General and administrative expenses in the

consolidated statements of comprehensive income.

The acquired business contributed Revenues of EUR 25.2 million and a net income of EUR 4.0 million to

HomeToGo for the period from April 1, 2022, to December 31, 2022. The Revenues vary during the financial

year due to the seasonality of the business, with a peak during the summer. If the acquisition had occurred on

January 1, 2022, consolidated pro-forma Revenues and net loss for the combined entity (Group + e-domizil) for

the financial year 2022 would have been EUR 149.5 million and EUR (56.3) million respectively. These amounts

have been calculated using the subsidiaries’ results and adjusting them for

•differences in the accounting policies between the group and the subsidiaries,

•and the additional depreciation and amortization that would have been charged assuming the fair

value adjustments to intangible assets had applied from January 1, 2022, together with the

consequential tax effects.

The composition of the cash consideration and the impact on the statements of cash flows during the reporting

period can be derived from the following table:


(in EUR thousands)
Cash paid		42,584
Cash and cash equivalents acquired		13,311
Net cash paid for e-domizil		29,273

SECRA

After the purchase of a 19% stake in SECRA GmbH ("SECRA GmbH") and SECRA Bookings GmbH ("SECRA

Bookings") both located in Sierksdorf, Germany on August 23, 2021 HomeToGo acquired the remaining 81% of

the shares of both entities from SECRA Holding GmbH that is owned by the managing directors of both

acquired legal entities on May 31, 2022 leading to a business combination that was achieved in stages.

The transaction is accounted for as a step acquisition. Before the business combination both SECRA

investments were accounted for under IFRS 9 as investments at fair value through profit and loss. The fair value

of the SECRA investments immediately before the business combination accounted for EUR 3.4 million in total

leading to a loss of EUR (0.2) million from the fair value revaluation incurred for the period January 1 until May

31, 2022 that is presented under finance expenses.

Besides the fair value of EUR 3.4 million of the investments already held, the consideration totaling EUR 14.6

million comprises of a cash portion in the amount of EUR 10.0 million, shares of HomeToGo SE equivalent to

the amount of EUR 2.0 million and an earn-out liability of 2.6 million. In the event that certain pre-determined

revenue targets are achieved by the subsidiaries for the years ending December 31, 2022 and December 31,

2023, an additional contingent consideration of up to EUR 2.7 million may be payable in cash up to three

months after the end of each relevant financial year, i.e. 2022 and 2023. HomeToGo recognized a financial

liability in the amount of EUR 2.6 million as of the acquisition date. The expectation compared to the

preliminary PPA is higher due to better information on the business plan that was not available for the

preliminary PPA leading to an adjusting effect to the date of acquisition. The resulting liability is measured at

fair value (Level 3) through profit and loss. Management expects the earn-out thresholds to be reached in full

in both years. For derivation of the fair value an interest rate of 3.3% has been used. The earn-out is considered

as part of the consideration transferred increasing the Goodwill by the fair value assumed as of acquisition date

of EUR 2.6 million. From the purchase price, an amount of EUR 4.0 million was transferred to an escrow

account and will be payable after December 31, 2024, only if both former shareholders who continue to work

for HomeToGo as managing directors do not forfeit their entitlement as a result of specified leaver clauses

before that date. In case one of the two managing directors is leaving prior to the end of the respective service

period the respective claim of up to EUR 2.0 million per managing director expires. The agreement includes a

service component and is accounted for as a separate transaction in accordance with IAS 19. The claims for

these escrow amounts are recognized in General and administrative expenses over the vesting period until

December 31, 2024 using linear vesting.

The object of business of each of the legal entities is the planning, development, provision, and operation of

websites including its own listing/online booking portal Ostsee-Ferienwohnungen.de as well as the planning,

development, provision, and operation of software solutions for the management of vacation rentals and their

marketing via channel management technology. For their services, both the SECRA Bookings and the SECRA

GmbH, are entitled to either a subscription fee or a service fee for booking services, depending on the rental

price. Thus, Revenues from SECRA are shown under Revenues from Subscriptions & Services. SECRA GmbH and

SECRA Bookings were acquired to further strengthen the Group's position in the SaaS and Services sector of the

alternative accommodation industry and increasing its inventory reach for the HomeToGo marketplace.

The allocation of the consideration to assets and liabilities assumed as of May 31, 2022, as part of the business

combination is shown in the following table:


(in EUR thousands)		Fair value
Cash		2,048
Intangible assets: trademarks		2,861
Intangible assets: customer relationships		4,557
Intangible assets: software		1,580
Property plant and equipment		147
Trade receivables		1,027
Income Tax Receivables		80
Other assets		553
Trade payables		(89)
Other financial liabilities		(141)
Other liabilities		(1,437)
Income tax liabilities		(218)
Deferred tax liability		(2,857)
Net identifiable assets acquired		8,110
Less: previously held investment of 19%		(3,430)
Add: goodwill		9,945
Consideration transferred for 81% of SECRA acquired on May 31, 2022		14,625
Thereof: contingent consideration measured at fair value through profit and loss		2,626

The goodwill recognized as part of the business combination relates to synergy effects with HomeToGo’s

marketplace and the SECRA’s market position within the SaaS and Services sector. It will not be deductible for

tax purposes. The goodwill is allocated to the CGU HomeToGo due to the expected synergy effects with the

HomeToGo platform through the access to additional inventory and further traffic.

Acquisition-related costs of EUR 115 thousand are included in General and administrative expenses in the

consolidated statement of or loss and other comprehensive loss.

The acquired business contributed Revenues of EUR 8.9 million and a net loss of EUR 1.2 million to HomeToGo

for the period from June 1, 2022, to December 31, 2022. If the acquisition had occurred on January 1, 2022,

consolidated pro-forma Revenues and net loss for the combined entity (Group + SECRA) for the financial year

2022 would have been EUR 148.9 million and EUR (53.8) million respectively. These amounts have been

calculated using the subsidiaries results and adjusting them for

•differences in the accounting policies between the group and the subsidiary, and

•the additional depreciation and amortization that would have been charged assuming the fair value

adjustments to intangible assets had applied from January 1, 2022, together with the consequential

tax effects.

The composition of the consideration and the impact on the statements of cash flows during the reporting

period can be derived from the following table:


(in EUR thousands)
Cash paid		10,040
Cash acquired		2,048
Net cash paid for SECRA		7,992

7 - Critical accounting judgments, key estimates and assumptions

The preparation of HomeToGo’s consolidated financial statements in accordance with IFRS requires

Management to make judgments, estimates and assumptions that affect the reported amounts of revenues,

expenses, assets and liabilities, and the accompanying notes disclosures and the disclosure of contingent

liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material

adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and underlying assumptions are subject to continuous review.

Below is a summary of the critical measurement and accounting judgements, including disclosure of the key

assumptions used by Management in applying accounting policies based on future developments, and which

could have significant effects on carrying amounts stated in the consolidated financial statements, or for which

there is a risk that significant adjustments may need to be made to the carrying amount of assets and liabilities

in subsequent years.

a)Critical accounting judgements

Classification of Class A and B Warrants

As of September 21, 2021 HomeToGo consummated the de-SPAC transaction. As part of this de-SPAC

transaction HomeToGo took over public and non-public warrants, which had been issued by Lakestar SPAC

prior to the Transaction and accounted for the assumption of the warrants initially as an equity-settled share-

based payment arrangement under IFRS 2, rather than as financial liabilities under IFRS 9. As a result of the IFRS

IC agenda decision on Special Purpose Acquisition Companies (SPAC): Accounting for Warrants at Acquisition

issued on October 24, 2022), the Group reassessed its accounting for the warrants acquired through the

business combination with Lakestar SPAC and recorded such warrants as a financial liability at fair value

through profit or loss. For further details regarding the change in accounting policy refer to Note 35 - Change in

accounting policy - Classification of warrants. Prior year financial statements including all related notes have

been adjusted for that change.

Internally generated intangible assets

For individual software modules, Management sometimes applies judgement to determine the point in time

where research can be separated from development activities. In connection with management judgement

about the future economic benefit of software modules, the Group uses assumptions regarding the future

performance of the software modules concerned and their implications on the Group's business activities to

distinguish between substantial enhancements and maintenance/bug fixing. While development expenses for

substantial enhancements are capitalized, efforts for maintenance/bug fixing are operating expenses.

In 2022 HomeToGo capitalized EUR 3.8 million (2021:1.5 million) as internally generated software.

Government Grants

In 2020, HomeToGo received governments grants recognized as income for investment in new employments.

The granting of subsidies is subject to the condition that investments are made in permanent jobs and that the

payroll exceeds a certain amount in the grant period from August 19, 2019 to February 18, 2023. The

management of HomeToGo assumed that the conditions of reaching a certain level of personnel-related

expenses are and will be met with reasonable assurance. Therefore, HomeToGo initially recognized the full

receivable amounting to EUR 1.9 million under the grant in 2020 from which EUR 0.5 million have already been

received in 2021 and further EUR 0.5 million were received in January 2023.

As of December 31, 2022 management of HomeToGo has re-estimated the maximum amounts for the payroll

and investments that could be reached until the end of the grant period and determined that the maximum

amount that could be received under the grant agreement will amount to EUR 1.3 million. Thus, the receivable

for the outstanding grant had to be reduced to EUR 0.9 million as of December 31, 2022. Until December 31,

2022 EUR 1.2 million were accrued as other income out of which EUR 0.1 million relate to the fiscal year 2022.

b)Key estimates and assumptions

Incremental borrowing rate

The incremental borrowing rate for lease accounting is determined based on interest rates from various

external financial data adjusted to reflect the terms of the lease and the nature of the leased asset. For

additional information with respect to extension options refer to Note 4.

Impairment of goodwill and trademarks

At least annually, or when circumstances indicate a potential impairment event may have occurred, HomeToGo

assesses whether goodwill and trademarks acquired in business combinations are impaired. The CGUs which

resulted from the business combinations were tested for impairment as part of the annual goodwill impairment

test. Key assumptions used in HomeToGo’s impairment assessments of these assets include forecasted cash

flows of the business, estimated discount rate, and future growth rates. Management uses internal and

external data to develop these key assumptions. This includes consideration of any impact of the Covid-19

pandemic, inflationary pressure including rising interest rates with negative impact on consumers discretionary

income, fears in regard to a broader war in Europe and of any impact of the ongoing discussion about climate

change. Refer to Note 19 - Intangible assets and goodwill.

Litigation

HomeToGo Group has set up provisions for litigations that could not be settled by the date the consolidated

financial statements of HomeToGo were authorized for issue. The provisions are measured with the best

estimate of the amount to be paid. Due to the inherent uncertainty of a litigation the possible financial risk

might even be higher than the estimated amount. Refer to Note 26 - Provisions (current and non-current).

Fair value determination for share-based payment arrangements and derivative financial

liabilities

Share-based payment arrangements

The Group operates equity-settled share-based compensation plans, pursuant to which certain participants are

granted virtual shares or stock options of the Company. Prior to the de-SPAC transaction, due to the lack of

quoted market prices prior, the Group determined the grant date fair value for the measurement of the equity-

settled transactions at the grant date with a valuation model, considering certain assumptions relating to the

volatility of stock price, the determination of an appropriate risk-free interest rate and expected dividends. The

share price input is based on the company's valuation. See Note 30 - Share-based payments for details on the

plan.

In past settlements the beneficiaries' claim was settled partially in equity and cash to fulfill the tax withholding

obligations of the Company and transfer the tax payable to the tax authority. In the process an excess amount

between the general tax rate applied and the actual personal tax rate was transferred directly to the

beneficiary. For future settlements the expected amounts in excess of the employee's tax obligation associated

with the share-based payment are accounted for as a cash-settled share-based payment plan. The resulting

liability is remeasured at each reporting date.

8 - Segment and geographic information

In line with the management approach, the operating segment was identified on the basis of HomeToGo’s

internal reporting and how the CODM assesses the performance of the business. On this basis, HomeToGo

identifies as a single operating and therefore the consolidated financial information represents the segment

reporting.

In the reporting period two single customers accounted for more than 10% of HomeToGo’s Revenues:


	Year ended December 31,
(in EUR thousands)	2022	2021
Customer 1	28,053	19,114
Customer 2	25,838	30,534
	53,891	49,648

Revenues from customers can be attributed to the entity's country of domicile in the amount of EUR 78.0

million, 2021: EUR 30.9 million, the United States of America in an amount of EUR 19.2 million, 2021: EUR 25.7

million and to the rest of world in total EUR 49.6 million, 2021: EUR 38.2 million. Due to the reverse acquisition

of HomeToGo SE (formerly Lakestar SPAC) by HomeToGo GmbH in 2021, Germany is still treated as the entity's

country of domicile, because the Group's main operations sit here.

Non-current assets located in the entity's country of domicile amounting to EUR 119.3 million, 2021: EUR 50.5

million and in all foreign countries amounting to EUR 39.9 million, 2021: EUR 34.6 million.

9 - Revenues

HomeToGo recognizes its Revenues as follows:


	Year ended December 31,
(in EUR thousands)	2022	2021
Revenues recognized at a point in time
CPA	92,593	65,650
thereof
CPA Onsite	66,877	31,523
CPA Offsite	25,716	34,127
CPC and CPL	30,587	20,401
Revenues recognized over time
Subscriptions & Services	23,660	8,788
	146,839	94,839

CPA Onsite reflect Revenues from bookings made directly on HomeToGo platforms while CPA Offsite Revenues

are generated on Partner's platforms.

For CPA and CPC Revenues, typically the payment occurs shortly after the performance obligation is satisfied.

However, for certain agreements, customers pay in advance leading to a certain amount of fees which are

presented under contract liabilities. Subscription & Services Revenues are generally collected before the

performance obligation is satisfied over time leading to a high balance of contract liabilities, which is

subsequently released over the performance period.

The 2022 increase in Revenues is explained by the expansion of the Group's business activities, a further

increase in travel activity as well as additional Revenues from acquisitions.

Revenues recognized in the financial years 2022 and 2021 from contract liabilities were EUR 3.9 million and

EUR 2.9 million respectively. All amounts recognized from contract liabilities are recognized as Revenues within

the subsequent year. Refer to Note 28 - Other liabilities (current and non-current) for further information on

contract liabilities. No information is provided about remaining performance obligations as of December 31,

2022 and December 31, 2021 since all performance obligations are originally expected to be satisfied within

one year or less, as allowed by IFRS 15.121.

10 - Cost of Revenues


	Year ended December 31,
(in EUR thousands)	2022	2021
Depreciation and amortization	6,975	866
Hosting and domains	4,363	3,003
Other	863	467
	12,202	4,336

Hosting and domains comprise the expenses for server hosting services and the expenses for domain

subscriptions. Depreciation and amortization also contains the amortization of the internally generated

intangible assets.

Overall increase in Cost of Revenues compared to the prior year is mainly due to the amortization of order

backlog acquired with e-domizil and increased expenses for hosting and domains due to a higher amount of

traffic on the Group's platforms.

11 - Product development and operations


	Year ended December 31,
(in EUR thousands)	2022	2021
Personnel-related expenses	15,854	9,435
Share-based compensation	4,951	8,260
Software expenses	4,651	4,223
Licence expenses	2,024	878
Depreciation and amortization	526	785
Other	671	145
	28,678	23,726

Personnel-related expenses for product development and operations comprise expenses for the workforce for

development and maintenance of the platform and system infrastructure as well as customer service.

Depreciation and amortization relate to the respective assets attributed to this workforce.

Other includes overhead costs directly attributable to the product development and operations function.

12 - Marketing and sales


	Year ended December 31,
(in EUR thousands)	2022	2021
Performance marketing	108,404	81,173
Personnel-related expenses	10,080	5,289
Depreciation and amortization	4,902	2,559
Share-based compensation	1,671	5,700
Other	1,227	774
	126,284	95,495

Performance marketing relates to paid marketing services, search engine marketing (“SEM”), content

marketing and other forms of inbound marketing as well as on- and off-site search engine optimization.

Performance marketing activities are scaled to bringing demand to the Group’s booking platforms and

converting website visitors to users who make bookings. The increase in 2022 performance marketing expenses

results from the Group's increased customer acquisition and retention investments. Personnel-related

expenses increased due to acquisitions.

13 - General and administrative


	Year ended December 31,
(in EUR thousands)	2022	2021
Share-based compensation	19,030	88,038
thereof: Non-cash listing service expense (de-SPAC Charge)	—	70,437
Personnel-related expenses	12,935	6,803
Consulting expenses	7,346	13,079
Expenses for third-party services	3,131	1,829
Expected credit loss and write-offs	1,499	776
License expenses	753	553
Depreciation and amortization	571	480
Other	2,586	1,193
	47,851	112,751

The increase in personnel-related expenses is in line with the growth of the Group's number of employees, see

Note 18 - Personnel expenses for further details.

The increase in expenses for third-party services is related to the Group's increased expenses as a public

company.

Other have mainly increased due to a donation of EUR 0.5 million.

In 2021 expenses for share-based compensation contained a non-cash expense for the listing service of EUR

70.4 million incurred as part of the accounting for the de-SPAC transaction.

Consulting expenses are significantly down compared to the prior year due to the Group's increased expenses

incurred in the prior year as part of the Transaction.

14 - Other income and expenses

Other income includes foreign exchange gains of EUR 1.6 million (2021: EUR 1.6 million) and government grant

related income in 2022 of EUR 0.3 million (2021: EUR 9.3 million). Furthermore, other income includes income

from the release of a provision in the amount of EUR 0.8 million in 2022 due to the successful conclusion of a

legal dispute in favor of the Group in the current year.

There are future conditions or other contingencies attached to the expense related grants. HomeToGo did not

benefit directly from any other forms of government assistance in 2022. Income from government grants in

2022 is significantly lower than in 2021 due to Covid-19 state aid granted in the prior year.

Other expenses include foreign exchange losses of EUR 0.5 million (2021: EUR 0.6 million).

15 - Financial result, net


	Year ended December 31,
(in EUR thousands)	2022	2021 (adjusted)
Finance income
Interest income	5	1
Other	4	18
Income from remeasurement to fair value	8,813	12,415

Finance expenses
Interest expenses	521	3,644
Expenses from remeasurement to fair value	757	54,512
Interest expenses on leases	517	517
Other	98	130

Financial result, net	6,928	(46,369)

Income from remeasurement to fair value in the amount of EUR 8.8 million in 2022 (2021: expenses of EUR

12.4 million) relates to the remeasurement of warrants, see Note 35 - Change in accounting policy -

Classification of warrants for further details. Expenses from remeasurement to fair value include the

revaluation of a money market fund in the amount of EUR 0.5 million (2021: EUR 0.0 million) and in the amount

of EUR 0.8 million (2021: income from remeasurement to fair value in the amount of EUR 0.4 million) relate to

the revaluation of the 19% investment stake in SECRA held immediately before the acquisition of the remaining

shares on May 31, 2022, see Note 6 - Business Combinations and other acquisitions for further details. In 2021,

expenses from remeasurement to fair value also relate to the remeasurement of embedded derivatives

resulting from convertible loans that were fully converted into shares of the Company in the prior year.

16 - Income taxes

The HomeToGo SE is subject to taxation under the laws of Luxembourg. In 2022, the overall tax rate is 24.94%

(2021: 24.94%), consisting of corporate tax rate of 17%, a 7% solidary surcharge on the corporate tax rate and a

municipal business tax rate of 6.75%.


	Year ended December 31,
(in EUR thousands)	2022	2021
Current tax	(2,567)	(207)
Deferred tax	7,806	5
Income tax	5,239	(202)

Current taxes in 2022 comprise an amount of EUR 0.2 million related to prior year income taxes (2021: nil).

The following table shows the reconciliation between the expected and the reported income tax expense:


	Year ended December 31,
(in EUR thousands)	2022	2021* (adjusted)
Loss before tax	(58,738)	(176,823)
Tax at the expected group tax rate (24.94%, 2021: 24,94%)	14,649	44,100
Tax effects of:
Deviations from group tax rate 24.94% (2021: 24,94%)	4,198	7,957
Tax effect due to changes of tax rate	326	—
Taxes relating to other periods	(240)	—
Share-based compensation programs	(6,657)	17,498
Listing service fee de-SPAC transaction	—	(21,083)
Permanent differences	(321)	(3)
Non-deductible expenses	(63)	(366)
Non-recognition of DTA on current year tax losses	(8,560)	(38,887)
Non-recognition of DTA on temporary differences	2,056	(9,378)
IRE Leasing and dismantling obligation	(28)	(125)
Other tax effects	(122)	86
Total income tax expense	5,239	(202)
Effective total income tax rate (%)	(8.92)%	0.12%

17 - Earnings (loss) per share

Basic earnings per share:


	Year ended December 31,
	2022	2021* (adjusted)
Net income (loss) for the period (in EUR thousands)	(53,499)	(177,042)
Weighted average number of ordinary shares issued	113,367,886	79,619,166
Total basic and diluted earnings per share attributable to the ordinary equity holders of the Company (in EUR)	(0.47)	(2.22)

For details on the composition of equity refer to note 24 - Shareholder’s equity.

For the calculation of diluted earnings per share, the share-based payment programs were considered. In

accordance with IAS 33.58, settlement in ordinary shares was assumed for contracts where the Company has

the option to settle in cash or in ordinary shares. These potential ordinary shares were not taken into account,

because the effect on loss per share would have been antidilutive. As a result, basic earnings per share

corresponds to diluted earnings per share.

Number of potential ordinary shares:


	As of December 31,
	2022	2021
Share-based payment programs	11,130	33,868
	11,130	33,868

18 - Personnel expenses

The average number of employees is presented below:


	Year ended December 31,
(Number of employees)	2022	2021
female	256	161
male	325	211
Total	581	372

Employee benefits expense are composed of the items as shown in the following table:


	Year ended December 31,
(in EUR thousands)	2022	2021
Wages and salaries	23,220	14,258
Social security expenses	7,015	4,964
thereof: Retirement benefit costs	38	6

19 - Intangible assets and goodwill


(in EUR thousands)	Goodwill	Trade- marks and domains	Software and licenses	Internally generated software	Customer relation- ships	Order Backlog	Intangibl e assets
Cost
As of January 1, 2021	25,654	7,033	548	4,300	10,105	1,249	48,890
Additions	—	—	1	—	—	—	1
Additions from business combinations	14,664	1,849	2,475	—	2,328	—	21,317
Additions from internal development	—	—	—	1,545	—	—	1,545
As of December 31, 2021	40,318	8,882	3,024	5,845	12,433	1,249	71,752

Accumulated amortization and impairment
As of January 1, 2021	—	1,675	109	2,306	1,980	1,249	7,319
Amortization charge of the year	—	828	193	867	1,184	—	3,072
As of December 31, 2021	—	2,503	302	3,173	3,164	1,249	10,391

Carrying amount
As of January 1, 2021	26	5	439	2	8	—	42
As of December 31, 2021	40,318	6,379	2,722	2,672	9,270	—	61,361

Cost
As of January 1, 2022	40,318	8,882	3,024	5,845	12,433	1,249	71,752
Additions	—	1	187		—	—	188
Additions from internal development	—	—	—	3,828	—	—	3,828
Additions from business combinations	43,381	8,423	3,731	—	22,728	6,345	84,607
Disposals	—	(184)	(27)	—	—	—	(211)
Reclassifications	—	(361)	(414)	571	(163)	—	(367)
As of December 31, 2022	83,699	16,761	6,502	10,244	34,998	7,594	159,798

Accumulated amortization and impairment
As of January 1, 2022	—	2,503	302	3,173	3,164	1,249	10,391
Amortization charge of the year	—	1,321	1,111	1,139	3,040	4,759	11,370
Disposals	—	—	(1)	—	—	—	(1)
Reclassifications	—	(545)	559	(218)	(163)	—	(367)
As of December 31, 2022	—	3,279	1,971	4,095	6,040	6,008	21,393

Carrying amount
As of January 1, 2022	40,318	6,379	2,722	2,672	9,270	—	61,361
As of December 31, 2022	83,699	13,482	4,530	6,150	28,958	1,586	138,405

Amortization in relation to trademarks and domains and customer relationships are presented within

marketing sales expenses, while order backlog and internally generated software amortization is presented

within cost of revenues.

Material intangible assets comprise of the following:


(in EUR thousands)	2022	2021	Remaining useful life as of Dec 31, 2022

Trademarks	13,481	6,564
e-domizil GmbH	3,783	—	9 years
SECRA Bookings GmbH	2,694	—	9 years
Casamundo GmbH	2,135	2,492	6 years
Smoobu GmbH	1,510	1,695	8 years
Feries Srl	1,076	1,265	6 years

Customer relationships	28,958	9,270
e-domizil GmbH	15,507	—	9 years
SECRA Bookings GmbH	4,291	—	9 years
Escapada Rural S.L.	2,725	3,115	7 years
Feries Srl	2,196	2,584	6 years
Smoobu	1,901	2,134	8 years

The intangible assets were identified as part of the business combination in the corresponding period. Refer to

Note 6 - Business Combinations and other acquisitions for further information.

Goodwill impairment test

The recoverable amount of the group of CGUs is determined based on the value in use. The key assumptions

for determining the value in use are those regarding the cash flows, discount rates and growth rates. The

values assigned to the key assumptions represent management’s assessment of future trends in the relevant

industry and have been based on historical data from both external and internal sources.

The future cash flows were estimated with the underlying assumption that the Covid-19 pandemic opened up

an increased market potential for vacation rentals as more traveler used vacation rental for the first time to

avoid hotel accommodations. These travelers saw the benefits of vacation rentals and thus, there is the

assumption for a sustainable positive trend in the upcoming years. In addition, the pandemic has provided an

additional market potential for remote working while traveling, or "workation". Travelers are enabled by their

employers to extend their holidays and to work for example a week ahead of the actual holidays or a week

after at the destination of their travel. Thus, travelers are staying in a holiday area for three weeks instead of

two weeks. Further, the Management Board sees travelers becoming longer term rental customers, for

example staying over the winter abroad instead of for example in Germany. Before the pandemic this was not

an option for the majority of employees. These effects, combined with the Group’s ambitious measures to

grow the business as an OTA, are driving a more optimistic business plan post COVID-19 and therefore higher

Revenues and EBITDA. Moreover, the increasing awareness in respect of the ecological impact of air travel

contributes to the general trend to prefer domestic or nearby vacation destinations. With its innovative

platforms and an increasing number of users and website visitors, the Management Board believes that

HomeToGo is well placed with its offerings to meet that expected change in travelling behavior and therefore

expects that it will be able to achieve its growth ambition. On that basis, the Group expects significant double-

digit growth over the next years. Hence, significant progress is already expected for 2023. The cash flow

projections are based on a detailed business plan for 5 years. Due to the high growth stage of HomeToGo, the

business plan was prolonged by four further planning years (based on yearly assumptions regarding the net

sales and margin development) to reflect a step-by-step declining growth of the Group until the terminal value.

Management estimates discount rates as a pre-tax measure derived from the historical industry average

weighted-average cost of capital. The WACC takes into account cost of equity and cost of debt, weighted

according to the portion of debt and equity in the Group's target capital structure. The cost of equity and cost

of debt are derived from the expected return an investor would require for an equity investment or debt

investment with similar risk. Segment-specific risks of the travel market are incorporated by applying a beta

factor. The beta factor is evaluated annually based on publicly available market data of comparable companies.

Adjustments to the discount rate are made to reflect a pre-tax discount rate. The additional basis was a market

risk premium and the risk-free interest rate.

The growth rates are based on industry growth forecasts. For 2022, Management has considered the lower end

of commonly applied growth rates to be appropriate as the planned growth for the coming years is expected to

exceed industry growth but will level out the long-term.


	Financial Year
	2022	2021
Discount rate (pre-tax)	18.4%	14.9%
Growth rate	1.0%	2.0%

During the periods presented, no impairment was recognized. No change in a key assumption considered

possible by management would cause the carrying amount to exceed the recoverable amount. Even if the free

cash flows decreased by 50 % or the terminal growth rate was 0%, this would not result in any impairment.

20 - Property, plant and equipment


(in EUR thousands)	Right-of- Use Real Estate	Right-of- Use Asset Car Leasing	Leasehold improveme nts	Other equipment, factory and office equipment	Total property, plant and equipment
Cost
As of January 1, 2021	16,512	18	2,104	649	19,284
Additions	19	—	54	324	396
Additions from business combinations	—	27	—	10	37
Disposals	(32)	—	—	(23)	(55)
As of December 31, 2021	16,499	45	2,158	960	19,662

Accumulated depreciation and impairment
As of January 1, 2021	2,221	18	232	399	2,870
Depreciation charge of the year	1,304	6	138	170	1,618
Disposals	—	—	—	(22)	(22)
As of December 31, 2021	3,525	24	370	547	4,466

Carrying amount
As of January 1, 2021	14,291	—	1,872	250	16,413
As of December 31, 2021	12,974	22	1,788	412	15,197

Cost
As of January 1, 2022	16,499	45	2,158	960	19,662
Additions	537	—	35	354	926
Additions from business combinations	470	—	—	32	503
Disposals	—	—	—	(110)	(110)
As of December 31, 2022	17,506	45	2,193	1,237	20,982

Accumulated depreciation and impairment
As of January 1, 2022	3,525	24	370	547	4,466
Depreciation charge of the year	1,232	12	135	225	1,605
Disposals	—	—	—	(109)	(109)
As of December 31, 2022	4,757	36	505	664	5,962

Carrying amount
As of January 1, 2022	12,974	22	1,788	412	15,197
As of December 31, 2022	12,749	10	1,687	573	15,022

Leasing activity during the reporting periods presented is comprised of office buildings and cars. The most

significant contract, which commenced in 2020, is the office building in Berlin, also resulting in significant

dismantling obligations.

Expenses related to low value leases and short-term leases amounted to EUR 15 thousand in the financial year

2022 (2021: EUR 8 thousand) and to EUR 100 thousand in the financial year 2022 (2021: EUR 270 thousand),

respectively.

The total cash outflow for leases amounted to EUR 1,507 thousand in 2022 (2021: EUR 1,512 thousand). It

includes the payment of the principal amounts, interest and short-term and low value leases.

Extension options are assumed to be reasonably certain to be exercised for all leases and are therefore

considered within the calculation of the right-of-use assets and lease liabilities.

Lease liabilities are included in Other liabilities. See Note 27 - Other financial liabilities (current and non-

current). For the interest expense related to leases refer to Note 15.

21 - Trade and other receivables (current and non-current)

Current trade and other receivables consist of:


	December 31,
(in EUR thousands)	2022	2021
Trade receivables	13,544	9,755
Other receivables	921	9,237
	14,464	18,992

The increase in trade receivable is related to the growth in business activity and corresponds to the increase in

revenues in 2022.

Other receivables declined as of December 31, 2022, compared to the prior year due to a government grant

paid in 2022.

22 - Other financial assets (current and non-current)

Other current financial assets consist of:


	December 31,
(in EUR thousands)	2022	2021
Money market fund	49,507	99,965
Deposits	2,270	1,995
	51,777	101,960

The current portion of other financial assets contains an investment into a short-term money market fund

accounted for at fair value through profit and loss, from which a portion amounting to EUR 50.0 million was

sold during 2022.

Other non-current financial assets consist of:


	December 31,
(in EUR thousands)	2022	2021
Deposits	5,504	1,502
Financial asset at fair value through profit or loss	—	3,597
Payments in advance for business combination	—	3,150
	5,504	8,249

Refer to section 6 - Business Combinations and other acquisitions on the details relating to the derecognition of

Financial asset at fair value through profit or loss for the 19% acquired in 2021 for both SECRA Bookings GmbH

and SECRA GmbH. Payments in advance for business combination represent payment in advance for the

acquisition of AMIVAC made in the prior year.

The increase in deposits is mainly explained by the acquisition of SECRA. As agreed in that acquisition EUR 4.0

million have been transferred to an escrow account. This deposit will be used to settle the liability to the

former shareholders building up until 2024 in other financial liabilities, refer to note 6 - Business Combinations

and other acquisitions for further details.

23 - Other assets (current and non-current)

Other current assets consist of:


	December 31,
(in EUR thousands)	2022	2021
Other non-financial assets	466	1,695
Other tax receivables	774	1,253
Prepaid expenses	3,659	2,399
Advance payments made	633	—
	5,533	5,347

Prepaid expenses have increased following the closing of new IT infrastructure agreements with prepayments.

Other non-current assets consist of:


	December 31,
(in EUR thousands)	2022	2021
Other tax receivables	28	187
Prepaid expenses	58	65
Other non-financial assets	57	6
	143	258

24 - Shareholder’s equity

The different shareholder classes can be summarized as follows:


	@									HomeToGo SE shares (0.0192 EUR nominal value)
	Commo n Shares	Series A Shares	Series B Shares	Series C Shares	Series C1 Shares	Series C2 Shares	Series C3 Shares	Series C3/Fall 2018	Series C4	Class A Shares	Class B2 Shares	Class B3 Shares
As of January 1, 2021	36,736	15,488	13,618	10,030	645	5,160	7,837	3,709
Conversion of convertible loans									18,438
Conversion of earn outs								1,290
Capital reorganization	(36,736)	(15,488)	(13,618)	(10,030)	(645)	(5,160)	(7,837)	(4,999)	(18,438)	80,793,077
Shares issued in recapitalization, net of redemptions										30,051,667	2,291,667	2,291,666
Shares issuance for PIPE financing										7,500,000
Share-based compensation										4,210,905
As of December 31, 2021	—	—	—	—	—	—	—	—	—	122,555,649	2,291,667	2,291,666
Share-based compensation										1.055.640
Distribution of treasury shares as consideration transferred in business combinations										1,152,148
As of December 31, 2022	—	—	—	—	—	—	—	—	—	123,707,797	2,291,667	2,291,666

On September 21, 2021 HomeToGo GmbH and Lakestar SPAC (now HomeToGo SE) consummated the BCA

which led to the listing on the Frankfurt Stock Exchange and a capital reorganization of the Group.

The Company's Class A through Class B3 Shares in HomeToGo SE are non-par value shares and have been fully

paid. Class A Shares are publicly traded. As part of the de-SPAC transaction in September 2021 a total of 10.1

million Class A Shares were redeemed against capital reserves. Regarding the current stock of these treasury

shares, reference is made to the following paragraph under "Treasury Shares". Class B1 to B3 Shares are

neither redeemable nor transferable, assignable or sellable other than to the members of the Management or

Supervisory Board. Holders of Class A to B3 Shares are entitled to the same dividend and liquidation rights and

have one vote per share at general meetings.

As part of the consummation of the de-SPAC transaction all Class B1 shares were automatically converted into

Class A Shares at a ratio one for one. As at December 2022 and 2021, 4,583,333 Class B shares are issued and

outstanding. All Class B2 Shares will automatically convert into Class A Shares at a ratio one for one, once the

closing price of the Class A Shares for any ten trading days within a thirty trading day period exceeds EUR 12.

Similarly, all Class B3 Shares will automatically convert into Class A Shares at a ratio one for one, once the

closing price of the Class A Shares for any ten trading days within a thirty trading day period exceeds EUR 14.

There is no expiry date for the conversion of Class B2 Shares or Class B3 Shares into Class A Shares.

Capital reserves

Subscribed capital and capital reserves include received capital through the issuance of shares for cash or

premium in kind. See above for share issuances during the presented periods.

Retained earnings

Retained earnings include the accumulated losses attributable to the shareholders.

Treasury Shares

Treasury shares are shares in HomeToGo SE that are held by the Company as a result of the redemption

process as part of the de-SPAC transaction in September 2021. Shares redeemed in 2021 were recognized at

their redemption price of EUR 10.00 per share and deducted from equity attributable to the owners as treasury

shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any

consideration received, net of any directly attributable incremental transaction costs and the related income

tax effects, is included in equity attributable to the owners of the Company. As of the reporting the number of

treasury shares held is 8.1 million (2021: 10.1 million).

Foreign currency translation reserve

Exchange differences arising on translation of the foreign controlled entity are recognized in other

comprehensive income, as described in Note 4 b), and accumulated in a separate reserve within equity. The

cumulative amount is reclassified to profit or loss when the net investment is disposed of.

Share-based payments reserve

The share-based payments reserve is used to capture the effect of share-based payment transactions. The

Group operates share-based payment plans, see Note 30 - Share-based payments for details of these plans. The

Company does not reclassify amounts for vested awards to other equity items.

25 - Borrowings

The following table provides an overview on the outstanding loans within the Group as of December 31, 2022:


Debtor	Loan Amount (in EUR thousands)	Payout date	Maturity	Nominal interest rate	Carrying amount (in EUR thousands)
HomeToGo GmbH	6,000	February 2020	December 2023	4.35%	1,500
HomeToGo GmbH	10,000	February 2021	September 2025	2.12%	6,333
Feries S.r.l.	400	August 2020	August 2025	1.50%	278
Escapada Rural S.L.	500	May 2020	June 2023	2.50%	85
Escapada Rural S.L.	300	May 2020	June 2025	1.55%	177
Adrialin d.o.o	100	February 2022	September 2027	0.25%	100

The following table provides an overview on the outstanding loans within the Group as of December 31, 2021:


Debtor	Loan Amount (in EUR thousands)	Payout date	Maturity	Nominal interest rate	Carrying amount (in EUR thousands)
HomeToGo GmbH	6,000	February 2020	December 2023	4.35%	3,000
HomeToGo GmbH	10,000	February 2021	September 2025	2.12%	8,414
Feries S.r.l.	400	August 2020	August 2025	1.50%	376
Escapada Rural S.L.	500	May 2020	June 2023	2.50%	337
Escapada Rural S.L.	300	May 2020	June 2025	1.55%	252

26 - Provisions (current and non-current)

Provisions consist of:


	2022
(in EUR thousands)	Dismantling	Other	Total
Beginning of financial year	483	807	1,290
Additions	—	1,683	1,683
Acquired through business combination	—	103	103
Releases	—	(837)	(837)
End of financial year	483	1,680	2,163

Thereof: non-current	483	35	518
Thereof: current	—	1,645	1,645


	2021
(in EUR thousands)	Dismantling	Other	Total
Beginning of financial year	112	1,175	474
Additions	371	83	1,237
Utilizations	—	(451)	(48)
End of financial year	483	807	1,290

Thereof: non-current	431	751	1,182

Other provisions include provisions with regard to employment lawsuits, which were not decided in or out of

court at the time this annual report was prepared. The prospects of success are uncertain at the time of writing

due to the lack of a supreme court ruling in similar cases. The total amount of the provision for litigation

amounts to EUR 1.3 million and reflects the Managements' best estimate of the amount probable to be paid

resulting from the suits.

The provision for dismantling relates to HomeToGo's dismantling provisions for leasehold improvements.

27 - Other financial liabilities (current and non-current)

Other current financial liabilities consist of:


	December 31,
(in EUR thousands)	2022	2021
Lease liabilities	1,512	1,228
Other financial liabilities	3,064	7,657
Traveler advance payments owed to Homeowners	5,480	—
	10,057	8,885

Other financial liabilities included a liability for the holdback as part of the acquisition of Smoobu in the amount

of EUR 5.0 million as of the prior year that was paid in 2022 and explains the decrease in carrying amount

during the reporting period.

Current other financial liabilities contain traveler advance payments collected in the amount of EUR 5.5 million

as of December 31, 2022 (2021: nil). These advance payments mainly relate to the newly acquired entity e-

domizil that provides collection services for their home owners. As part of these payment services, e-domizil

collects travelers' advance payments as well as advance payments for the booking services prior to the

traveler's check-in at the booked accommodation. The travelers' advance payments that e-domizil needs to

transfer to the homeowners right before check-in of the traveler are shown here under Other financial

liabilities, while the advance payments received for booking services are presented under Contract liabilities as

part of Other liabilities (current). Refer to the table under Note 28 - Other liabilities (current and non-current).

The amount of traveler advance payments as a portion of cash and cash equivalents with an amount of EUR 2.3

million as of December 31, 2022 (2021: nil) is subject to statutory restrictions and not available for general use

by the Group.

Other non-current financial liabilities consist of:


	December 31,
(in EUR thousands)	2022	2021* (adjusted)
Lease liabilities	12,787	12,949
Class A and Class B Warrants	1,425	10,238
Other financial liabilities	1,305
	15,517	23,192

Other financial liabilities include a liability arising from a service component as part of the SECRA business

combination leading to a payable of up to EUR 4.0 million until December 31, 2024, refer to 6 - Business

Combinations and other acquisitions for further information.Class A and Class B Warrants include public and

non-public warrants, which had been issued by Lakestar SPAC prior to the de-SPAC transaction in September

2021 of EUR 1.4 million. On February 19, 2021, the Company issued 9,166,666 Class A Warrants for a price of

EUR 10.00 per unit. Class A Warrants are publicly traded under ISIN of LU2290524383. Each Class A Warrants

entitles its holder to subscribe for one Class A Share, with a stated exercise price of EUR 11.50 subject to

customary anti-dilution adjustments. Holders of Class A Warrants can exercise the warrants on a cashless basis

unless the Company elects to require exercise against payment in cash of the exercise price. Class A Warrants

may only be exercised for a whole number of shares. Class A Warrants expire five years from the date of the

consummation of the de-SPAC transaction, consummated on September 21, 2021, or earlier upon redemption

or liquidation. The Company may redeem Class A Warrants upon at least 30 days’ notice at a redemption price

of EUR 0.01 per Class A Warrant (i) if the closing price of its Class A Shares for any 20 out of the 30 consecutive

trading days following the consummation of the Business Combination equals or exceeds EUR 18.00 or (ii) if the

closing price of its Class A Shares for any 20 out of the 30 consecutive trading days following the consummation

of the Business Combination equals or exceeds EUR 10.00 but is below EUR 18.00, adjusted for adjustments to

the number of Class A Shares issuable upon exercise or the exercise price of Class A Share as described in the

prospectus. Holders of Class A Warrants may exercise them after the redemption notice is given.

On February 18, 2021, the Company issued 5,333,333 Class B Warrants at a price of EUR 1.50 per warrant. Class

B Warrants are identical to the Class A Warrants underlying the Units sold in the private placement, except that

the Class B Warrants are not redeemable and may always be exercised on a cashless basis while held by the

SPAC Founders or their Permitted Transferees (defined in the prospectus). Class B Warrants are not part of the

private placement and are not listed on a stock exchange.

Please refer to note 35 - Change in accounting policy - Classification of warrants for further information on

presentation and valuation of warrants.

28 - Other liabilities (current and non-current)

Other current liabilities consist of:


	December 31,
(in EUR thousands)	2022	2021
Personnel-related liabilities	3,883	1,652
Other tax liabilities	637	570
Other non-financial liabilities	3,394	2,450
Contract liabilities	11,909	3,864
	19,824	8,535

Other non-current liabilities consist of:


	December 31,
(in EUR thousands)	2022	2021
Personnel-related liabilities	393	322
Other non-financial liabilities	11	795
	404	1,117

Other non-financial liabilities mainly relate to the deferred government grant.

29 - Deferred taxes

The change in deferred tax liabilities (DTLs), net was recognized as income tax expense (income) or through

acquisition of subsidiaries during 2021 and 2022. The unrecognized deferred tax assets (DTAs) amount to EUR

63.0 million (2021: EUR 59.8 million) and are mainly attributable to EUR 430 million (2021: EUR 381 million) for

unused tax losses and EUR 22.1 million (2021: EUR 10.2 million) unrecognized temporary differences.

The tax losses only incurred in Germany and Luxembourg. EUR 205 million (2021: EUR 182 million) of the tax

losses are attributable to German corporate income tax and EUR 203 million (2021: EUR 180 million) to German

trade tax. There is no expiry date for the cumulative tax losses except for tax losses in the amount of EUR 281

million (2021: EUR 19 million) in Luxembourg, which will expire after 17 years according to local tax regulations.

The Group has recognized a DTA on tax losses that arose in Luxembourg for HomeToGo SE of EUR 64 million,

mainly explained by the impairment of the investment in HomeToGo GmbH, netted by a DTL arising from

temporary difference on the investment held in the subsidiary of EUR 64 million.

The Group has further unused tax losses that arose in Luxembourg of EUR 22 million (2021: EUR 18 million) that

is available for 17 years, following the year in which incurred, for offsetting against future taxable profits of the

Company. No DTA has been recognized in respect of these losses as they may not be used to offset taxable

profits elsewhere in the Group. They have arisen in Luxembourg, where there's neither taxable income in

current year nor is expected in the incoming years. There are no other tax planning opportunities or other

evidence of recoverability in the near future.

There are temporary differences resulting from the Group's share-based compensation programs due to

different valuation methods according to IFRS and the tax base, leading to EUR 20.7 million deductible

differences according to IFRS compared to the tax base in 2022. It is uncertain to which extent and when these

temporary differences would reverse. They cannot be measured reliably as the future settlements of claims

resulting from exercises are dependent on several external factors that cannot be predicted reliably, especially

considering the Company's short history on the stock exchange. Thus, for these temporary differences no DTA

was recognized as December 31, 2022.

For the Class A and Class B Warrants, a DTA of EUR 0.4 million (2021: EUR 2.6 million) was not recognized as it

has been considered not recoverable.

The total amount of temporary differences associated with investments in subsidiaries for which DTLs have not

been recognized amount to EUR 1.3 million (2021: EUR 0.3 million).


	December 31,
(in EUR thousands)	2022	2021
Deferred tax liabilities, net
Beginning of fiscal year	(3,874)	(2,236)
Recognized through profit or loss	7,806	5
Recognized through acquisition of subsidiaries	(11,863)	(1,643)
End of fiscal year	(7,930)	(3,874)

Deferred tax assets and liabilities are recognized for the following types of temporary differences and tax loss

carryforwards.


	December 31,
	2022		2021
	Deferred tax		Deferred tax
(in EUR thousands)	Assets	Liabilities	Assets	Liabilities
Intangible assets		(16,890)	—	(5,963)
Financial assets	—	(64,579)	—	—
Other assets	15	(176)	—	—
Provisions	148	—	247	(3)
Trade payables	—	—	47	—
Other liabilities	—	—	6	—
Tax losses	73,553	—	1,792	—
Total Gross	73,715	(81,645)	2,092	(5,966)
Offsetting	(73,715)	73,715	(2,092)	2,092
Total after offsetting	—	(7,930)	—	(3,874)

30 - Share-based payments

Virtual Option Plans prior to the de-SPAC - General

Prior to the de-SPAC, HomeToGo had implemented several virtual stock option programs ("VSOPs"). These old

programs were closed or settled as part of the de-SPAC transaction, i.e. no new beneficiaries can enter these

programs and no further awards are granted to existing beneficiaries. In the financial year 2022, these

programs were continued in an ordinary course considering settlements for leavers and releases of the IFRS 2

reserve in case of targets not being met for some performance-dependent vesting of options. All material

terms and conditions and the classification remain unchanged. The number of virtual options of all share-based

payment programs other than the new long-term incentive program that is further described below developed

as follows:


	2022
	Number of virtual options	Weighted average of exercise prices
Outstanding as of Jan 1	17,057	3,057
forfeited during the year	1,160	87
exercised during the year	4,768	2,934
Outstanding as of Dec 31	11,130	3,419

Of the outstanding 11,130 options as of December 31, 2022, 1,961 were vested. These options are exercisable

at the next scheduled settlement date since December 31, 2022 that took place in January 2023. The liability

for cash-settled obligations resulting from the settlement process as of December 31, 2022 amount to EUR 0.4

million and was measured at the share price as of December 31, 2022 of EUR 2.0.

New long-term incentive program - LTI

In 2022 a new long-term incentive ("LTI") program was established and during the interim period, for the new

LTI several grant agreements were made. The LTI comprises two different virtual programs, the Virtual Stock

Option Program (VSOP 2022) and the Restricted Stock Unit Program (RSUP 2022). Under both programs, Virtual

Stock Options (VSOs) and Restricted Stock Units (RSUs) are granted to beneficiaries at the same time. Both the

VSOP 2022 and the RSUP 2022 entitle the beneficiary to receive a cash payment upon exercise of their VSOs /

RSUs. The target group for the LTI are HomeToGo's employees, advisors of the Group as well as managing

directors of affiliated companies. For the Management Board, a similar program was launched with slightly

different terms to comply with rules for Management Board remuneration.

General Terms and conditions - LTI

The participants can select the allocation of their overall grant between VSOP 2022 and RSUP 2022. Both

programs differ in terms of the risk profile from the perspective of the beneficiaries, because the RSUs do not

have a strike price, whereas the VSOs do.

As of December 31, 2022, the aggregate maximum plan volume of the RSUP 2022 and VSOP 2022 was limited

to the value of 1,225,556 Class A Shares of the Company. VSOs / RSUs may be granted to the participants in

one or more tranches at any time until the end of the year 2025. Therefore, hereinafter the two programs are

described together as one program and specified terms and conditions of each program are highlighted if

necessary.

VSOs / RSUs are granted to the respective beneficiary based on the terms stipulated in each program by

concluding an individual grant agreement between the respective beneficiary and HomeToGo. All grants are

subject to a service condition.

The strike price for the VSOs is specified in the individual grant agreement with the beneficiary and is always

calculated based on the average share price of the last ten trading days prior to the respective grant date. RSUs

are granted without a certain strike price.

The vesting period for the VSOs / RSUs is two years in total, and the vesting period shall begin following the

grant date or another vesting start date specified in the grant agreement. For the first year, there is a cliff in the

case of new hires and a quarterly vesting in the second year. For existing employees, the number of granted

VSOs / RSUs shall vest, unless otherwise determined in the grant agreement, in installments of 1/8 for each full

quarter on a linear basis.

After the exercise of the RSUs the beneficiary shall have a payment claim against the Company equal to

HomeToGo's share price at the time of the exercise. The exercise of the VSOs shall lead to a payment claim

equal to the difference between the share price at the time of exercise and the individual strike price stipulated

in the grant agreement. The beneficiary may exercise the VSOs / RSUs within three years following the vesting

date. VSOs / RSUs do no need to be exercised collectively, i.e. some parts of the grants may already be

exercised while others are still vesting.

HomeToGo is entitled, in its sole discretion, to fulfill the payment claim in whole or in part by transfer of shares,

in lieu of paying a cash amount, based on the share price then applicable.

Special Terms and conditions - LTI for Management Board

The terms and conditions of the LTI for the Management Board are generally in line with the terms and

conditions described above except for the following:

•The aggregate maximum plan volume of the MB-RSUP 2022 and the MB-VSOP 2022 shall be limited to

the value of 2,979,058 Class A Shares of the Company.

•The vesting period for the VSOs / RSUs is four years instead of two.

•There is mandatory cliff of one year.

Classification and accounting - LTI

The classification of the VSOP and RSUP do not differ from the classification of the previous Virtual Option Plans

of the Group. Since HomeToGo has a settlement choice in its sole discretion and has the ability to fulfill the

payment claim through shares of the Company, based on the assessment of the Company’s intent and past

practice in the Group's other share-based compensation schemes, the LTI is classified as equity-settled. Hence,

the fair value of each VSO / RSU is determined at the grant date, as further described below. Vesting conditions

are treated as graded, depending on the individual terms and conditions summarized above.

HomeToGo recognizes personnel expenses related to employee services as they are received. The

communication of the grant promise (= entitlement) with the amount of the grant and the other major terms

and conditions is treated as the earlier service commencement date as per IFRS 2 IG4, notwithstanding that the

beneficiary may still choose from the allocation of VSOs / RSUs. In case a beneficiary is already performing his

service knowingly of his future LTI grant and a specified vesting start date, the vesting start date is considered

the earlier service commencement date, and the expenses are already recognized as of the vesting start date.

In the IFRS 2 valuation, management estimates the grant date fair value for the purpose of recognizing the

expense during the period between the earlier service commencement date and the grant date. Management

will revise the estimate in each reporting period until the grant date has been established.

Fair value measurement - LTI

For the RSUs the fair value at the grant date is determined by the share price at grant date since these do not

have a certain strike price. For the VSOs the fair value at the grant date is determined by the Company using

the Black-Scholes-option pricing model and a binomial option pricing model of Cox-Ross-Rubinstein, as the

option can only be exercised at several discrete points in time.

The fair value was measured based on the following significant parameters: a weighted average share price of

EUR 4.0, a volatility of 45.73%, a risk-free interest rate of 0.45%, and a dividend yield of 0.0%. Due to the fact

that there is not sufficient historical data of the share price of the Company available the expected volatility

was derived from the historical volatility of peer group companies. The exercise of the VSOs may take place in

tranches after the respective vesting date and up to three years afterward. The weighted average term of the

virtual shares outstanding is 4.4 years. The valuation resulted in a weighted average fair value of EUR 1.70 per

virtual share.

The number of VSOs / RSUs of the new LTI program developed as follows during the period ending

December 31, 2022:


	2022		2022
	Number of VSOs	Weighted average of exercise prices	Number of RSUs	Weighted average of exercise prices
granted during the year	11,578,406	3.50	2,033,537	—
forfeited during the period	82,778	3.17	14,227
Outstanding as of December 31	11,495,628	3.50	2,019,310	—

The total expenses in relation to all existing share-based compensation including the virtual option plans prior

to the de-SPAC are allocated as follows:


	Year ended Dec 31,
(in EUR thousands)	2022	2021
Product development and operations	4,951	8,260
Marketing and sales	1,671	5,700
General and administrative	19,030	88,037
Total	25,652	101,997

The IFRS 2 reserve thus developed as follows:


	2022	2021
	Change	Change
January 1	68,744	22,148
Acquisition Mapify	—	172
Conversion of Earn Outs	—	(515)
Lakestar SPAC Listing Service Fee	—	70,437
VSOP Exercise equity settlement	(6,248)	(12,774)
VSOP Exercise tax settlement charge	(1,787)	(30,495)
VSOP Exercise cash settlement charge not through Profit or loss	(423)	(3,524)
Regular VSOP charge	25,350	23,296
Year end	85,636	68,744

31 - Related party transactions

HomeToGo’s related parties are comprised of a significant shareholder of HomeToGo, the members of the

Management Board and the Supervisory Board, the close members of the family of these persons and

controlled entities by these persons.

Entities with significant influence over the Group

Until the Transaction, the largest shareholder of the Group had significant influence over the Group and

constituted a related party according to IAS 24. Since this investor was also represented on the Supervisory

Board of HomeToGo SE until June 30, 2022, the investor was still assumed to have significant influence over the

Group until that date, although the percentage share in the parent company significantly reduced through the

Transaction. This shareholder participated in the convertible loan in March 2021 with EUR 3.0 million.

Key management personnel of the Group

The Management Board as well as the Supervisory Board of the Group constitute the key management

personnel and therefore related persons according to IAS 24 for HomeToGo.

Compensation paid and granted to the key management personnel is summarized in the table below.


	December 31,
(in EUR thousands)	2022	2021
Short-term benefits	1,435	1,020
Share-based payments	20,667	15,660
	22,102	16,680

Share-based payments expenses for key management personnel arose from the Virtual Stock Option Program

and Long-Term Incentive Plans described under Note 30 - Share-based payments.

The Group has not granted any loans, guarantees, or other commitments to or on behalf of any of the related

persons. Other than the remuneration disclosed above the following transactions occurred with entities

controlled by key management personnel:

OneUkraine gGmbH, a German non-profit limited liability company and related party to the Group due to its

affiliation to members of the Management and Supervisory Board, received a donation amounting to EUR 500

thousand from the Group to provide sustainable humanitarian relief to the Ukrainian people at home and

abroad.

NFQ UAB Technologies ("NFQ") a software company registered in the Republic of Lithuania, has been identified

as a related party according to IAS 24. During the reporting period, an agreement with NFQ has been in place

on the provision of certain software development services, office space and other services by NFQ to entities of

HomeToGo for cash consideration. Other services mainly include the provision of payroll, accounting and car

rental services. The business transactions under the scope of the agreement were made at arm's length terms.

Furthermore, the Group purchased services from NFQ X GmbH, Germany which was identified as a related

party.

Below listed amounts resulted from related party transactions with NFQ and NFQ X GmbH, Germany during the

reporting period:


	December 31,
(in EUR thousands)	2022	2021
Product development and operating expenses	8,765	5,493
Other Services	206	172
Office Rent	241	246
Payables towards NFQ	409	4

32 - Auditor's fees

The following expenses were incurred for services provided by the auditors and related companies of the

auditors for the HomeToGo Group:


	December 31,
(in EUR thousands)	2022	2021
Audit fees	1,219	1,490
thereof: audit fees for previous fiscal year audits and IFRS Conversion in prior year	261	838
Other attestation services	—	127
Other services	35	—
Total	1,254	1,618

33 - Financial instruments

The table below shows the net gains and losses, presented as positive and negative amounts respectively, of

financial instruments per measurement category as defined by IFRS 9:


	December 31,
(in EUR thousands)	2022	2021
Financial assets measured at Amortized cost (AC)	(1,623)	(1,069)
Financial assets and financial liabilities measured at fair value through profit or loss (FVTPL)	(625)	342
Financial liabilities measured at Amortized cost (AC)	(2,508)	—
Financial liabilities measured at fair value through profit or loss (FVTPL)	8,813	(10,031)

Total interest expenses including amortization from the effective interest method on financial liabilities that are

measured at amortized cost for the year was EUR 0.9 million (2021: EUR 2.0 million).

The following table shows the carrying amounts and fair values of financial assets and financial liabilities,

including their levels in the fair value hierarchy. The table excludes fair value information for financial assets

and financial liabilities not measured at fair value if the carrying amount reasonably approximates fair value.

The carrying amounts of cash and cash equivalents, trade and other receivables as well as trade payables are

approximately their fair value due to their short-term maturities. For all other financial assets and liabilities, no

changes have occurred that would have had a material effect on the fair value of these instruments since their

initial recognition.

Financial instruments as of December 31, 2022 are as follows:


	December 31, 2022
(in EUR thousands)	Carrying amount	Category in accordance with IFRS 9	Fair value	Fair value level
Non-current assets
Other receivables	—	Amortized cost
Other financial assets	5,504
thereof deposits	5,504
Current assets
Trade and other receivables	14,466	Amortized cost
thereof trade receivables	13,544
thereof other receivables	921
Cash and cash equivalents	112,050	Amortized cost
Other financial assets	51,778
thereof deposits	2,270
thereof money market funds	49,507	FVTPL	49,507	Level 1
Non-current liabilities
Borrowings	5,631	Amortized cost
Other financial liabilities	15,517
thereof lease liabilities	12,787	N/A
thereof warrants	1,425	FVTPL	1,425	Level 3
thereof other liabilities	1,305
Current liabilities
Borrowings	2,844	Amortized cost
Trade payables	12,544	Amortized cost
Other financial liabilities	10,057
thereof lease liabilities	1,512	N/A
thereof other liabilities	3,064	Amortized cost
Traveler advance payments owed to Homeowners	5,480	Amortized cost

Financial instruments as of December 31, 2021 are as follows:


	December 31, 2021
(in EUR thousands)	Carrying amount	Category in accordance with IFRS 9	Fair value	Fair value level
Non-current assets
Other receivables	814	Amortized cost
Other financial assets	8,249
thereof deposits	1,502
thereof investments	3,597	FVTPL	3,597	Level 3
Current assets
Trade and other receivables	18,992	Amortized cost
thereof trade receivables	9,755
thereof other receivables	9,237
Cash and cash equivalents	152,944	Amortized cost
Other financial assets	101,960
thereof deposits	1,995
thereof money market funds	99,965	FVTPL	99,965	Level 1
Non-current liabilities
Borrowings	9,371	Amortized cost
Other financial liabilities	23,187
thereof lease liabilities	12,949	N/A
thereof warrants	10,238	FVTPL	10,238	Level 3
thereof other liabilities	5
Current liabilities
Borrowings	3,007	Amortized cost
Trade payables	15,395	Amortized cost
Other financial liabilities	8,885
thereof lease liabilities	1,228	N/A
thereof other liabilities	7,656	Amortized cost

The carrying amounts of the financial assets and liabilities measured at amortized cost listed above and defined

by IFRS 9 as of December 31, 2022 and 2021 were as follows:


	December 31,
(in EUR thousands)	2022	2021
Carrying amount
Financial assets measured at amortized cost	134,289	179,397
Financial assets measured at fair value through profit or loss (FVTPL)	49,507	103,562
Financial liabilities measured at amortized cost	26,555	26,555
Financial liabilities measured at fair value through profit or loss (FVTPL)	1,425	10,238

As HomeToGo does not meet the criteria for offsetting, no financial instruments are netted.

Where quoted prices in an active market do not exist, HomeToGo uses valuation techniques that maximize the

use of relevant observable inputs and minimize the use of unobservable inputs. The valuation technique used

incorporates all factors that market participants would consider in pricing such a transaction, e.g. the fair values

disclosed in the notes for the host contract of convertible loans are determined by using credit-risk specific

discount factors.

The following paragraph shows the valuation technique used in measuring Level 3 fair values at December 31,

2022 and December 31, 2021 for financial instruments measured at fair value in the statement of financial

position as well as the significant unobservable inputs used:

• Valuation techniques: The valuation of the embedded derivative is performed using an option price

model. More specifically the valuation was performed using binomial trees for HomeToGo’s share price and

refinancing rate to derive a fair value of the conversion right. As described in Note 36, as part of the de-SPAC

transaction HomeToGo took over Class A and Class B warrants, which had been issued by Lakestar SPAC prior to

the transaction. These warrants are in scope of IFRS 9. The valuation of the warrants is performed using an

option pricing model (Black-Scholes model).

• Significant unobservable inputs: The option pricing model uses different inputs. The most significant

unobservable input is the refinancing rate of HomeToGo. Further inputs for the valuation model are the

Company value and the volatility of equity. Both inputs have a lower impact on the fair value of the entire

embedded derivative. The primary inputs used in the valuation of the warrants are the share price of

HomeToGo at valuation date, the risk-free interest rate and the volatility of the underlying share price as well

as the term of the instruments. The risk-free interest rate is based on yields of German sovereign bonds. The

share price as well as the risk-free rate are observable in the market. The share price volatility is based on a

peer group and is therefore not observable in a market.

The following tables show a reconciliation for Level 3 fair values:


(in EUR thousands)	Warrants	Embedded Derivative
Opening balance Jan 1, 2021	—	(12,465)
Issuance of convertible loans and modification of existing contracts	—	(24,961)
Acquisition of warrants	(12,506)	—
Transfer from Level 1	(6,472)	—
Losses recognized in finance costs	—	(2,644)
Gains recognized in finance income	8,740	2,436
Conversion into equity	—	37,634
Closing balance Dec 31, 2021	(10,238)	—

Opening balance Jan 1, 2022	(10,238)	—
Gains recognized in finance income	8,813	—
Closing balance Dec 31, 2022	(1,425)	—

In 2021 HomeToGo took over Class A and Class B Warrants, which were issued by Lakestar SPAC prior to the

de-SPAC transaction. The Class A Warrants are public listed warrants. At the acquisition date the Class A

Warrants constitute a level 1 instrument. The price for the Class A Warrants was directly observable in the

market as sufficient trades were observable. As of December 31, 2021, as well as December 31, 2022, no trades

of the Class A Warrants were observable. Hence, the valuation was performed by using an option price model

with a peer group volatility as an unobservable input. As of December 31, 2022, and December 31, 2021 the

Class A public Warrants constitute a level 3 instrument. HomeToGo transferred the Class A Warrants from level

1 to level 3 in 2021. The Class B warrants are not publicly listed. The valuation of the Class B Warrants was

performed by using an option price model with a peer group volatility as an unobservable input. Hence, the

Class B Warrants constitute a level 3 instrument as of the acquisition date, December 31, 2022 and December

31, 2021. There was no level transfer regarding the Class B Warrants.

There were no further transfers between the different levels of the fair value hierarchy during the periods

presented. HomeToGo’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at

the end of the reporting period.

The following tables show the impact on the fair value of the warrants, as well as the impact on the financial

result, by shifting the significant inputs in the valuation model of the warrants:


Closing balance Dec 31, 2022
(in EUR thousands)	Effect on financial result (in EUR thousands)	Effect on financial result (in EUR thousands)
Change in Share Price	+10%	(10)%
Change in Warrant Price	(460)	389
Change in Volatility	+10%	(10)%
Change in Warrant Price	(1,473)	947

Closing balance Dec 31, 2021
(in EUR thousands)	Effect on financial result (in EUR thousands)	Effect on financial result (in EUR thousands)
Change in Share Price	+10%	(10)%
Change in Warrant Price	(2,719)	2,415
Change in Volatility	+10%	(10)%
Change in Warrant Price	(5,933)	5,198

34 - Financial risk management

HomeToGo is exposed to the following risks from the use of financial instruments:

a) Credit risk

b) Liquidity risk

c) Market risk, interest rate and currency risk

The Company´s Management Board have the overall responsibility for the establishment and oversight of

HomeToGo’s risk management framework. HomeToGo’s risk management policies are established to identify

and analyze the risks faced by HomeToGo and to minimize negative impact on the financial position of

HomeToGo related to those risks.

Capital risk management

HomeToGo’s objective when managing capital is to safeguard HomeToGo’s ability to provide returns for

shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the

cost of capital. Management monitors capital usage by overseeing the decrease and increase of cash and cash

equivalents as presented in the consolidated statement of financial position. To optimize interest income and

to minimize negative interest rates the Group invested surplus funds in highly liquid money market funds. The

Group is subject to a financial covenant with regard to some loans issued in 2020 for which no breach has

occurred. HomeToGo needs to achieve an economic equity ratio of 50% or higher. Management expects to

achieve the necessary equity ratio.

a)Credit risk

Credit risk is the risk of financial loss to HomeToGo if a customer or counterparty to a financial instrument fails

to meet its contractual obligations. Credit risk includes both the immediate default risk and the danger of a

decline in the customer’s creditworthiness.

HomeToGo is exposed to credit risk on cash and cash equivalents and current other financial assets, which it

monitors centrally. HomeToGo maintains its cash deposits at financial institutions with top credit ratings. The

creditworthiness of these financial institutions is constantly monitored. HomeToGo considers that its cash and

cash equivalents and current other financial assets have low credit risk based on the external credit ratings of

these financial institutions.

HomeToGo is generally exposed to the credit risk that its partners are cash-strapped or in financial difficulties

and thus, would not pass the agreed share of commission to HomeToGo. Overall, the credit risk for trade and

other receivables is considered moderate. The maximum risk exposure for all financial assets is the carrying

amount. Refer to Note 4 regarding the application of the expected credit loss model.

b)Liquidity risk

Liquidity risk is the risk that HomeToGo will encounter difficulty in meeting the obligations associated with its

financial liabilities that are settled by delivering cash or another financial asset. HomeToGo’s approach to

managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when

they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking

damage to HomeToGo’s reputation. In case needed, HomeToGo uses regular external financing options such as

bank loans to quickly raise larger amounts of fresh capital and thus always ensure a certain liquidity buffer.

The following are the remaining contractual maturities of financial liabilities at the balance sheet date. Apart

from lease liabilities, the amounts are gross and undiscounted and include contractual interest payments and

exclude the impact of netting agreements.


	December 31, 2022
(in EUR thousands)	<1 year	1 - 5 years	> 5 years	Total	Carrying amount
Trade and other payables	12,544	—	—	12,544	12,544
Other liabilities	19,824	404	—	20,228	20,228
Other financial liabilities	8,545	1,305	—	—	9,850
Warrants	—	1,425	—	1,425	1,425
Borrowings	2,844	5,631	—	8,475	8,475
Lease liabilities	1,590	5,870	10,021	17,481	14,299
Total	45,346	14,636	10,021	60,154	66,822

	December 31, 2021
(in EUR thousands)	<1 year	1 - 5 years	> 5 years	Total	Carrying amount
Trade and other payables	15,395	—	—	15,395	15,395
Other liabilities	8,535	1,117	—	9,653	9,653
Other financial liabilities	—	10,243	—	10,243	10,243
Borrowings	3,007	9,371	—	12,378	12,378
Lease liabilities	1,228	1,632	11,318	14,178	14,178
Total	28,165	12,120	11,318	51,603	51,603

The following table shows changes in liabilities arising from financing activities:


(in EUR thousands)	January 1, 2022		Cash flows		Changes in fair values		New leases		Additions from business combinations		Reclassi fication / Convers ion		Modifica tions and other effects		Interest		December 31, 2022
Borrowings (non- current)	9,371		—		—		—		—		(4,024)		—		285		5,631
Warrants (non- current)*	10,238		—		(8,813)		—	(109)	—	35	—		—		—		1,425
Lease liabilities (non- current)	12,949		—		—		537		466		(1,164)				—		12,787
Borrowings (current)	3,007		(4,187)		—		—		—		4,024		—		—		2,843
Lease liabilities (current)	1,229		(896)		—						1,164		(481)		496		1,512
Total	36,792	—	(5,083)	—	(8,813)	—	537	(109)	466	35	—	—	(481)	—	781	—	24,199

(in EUR thousands)	January 1, 2021		Cash flows		Changes in fair values		New leases		Additions from business combinations		Reclassi fication / Convers ion		Modifica tions and other effects		Interest		December 31, 2021
Borrowings (non- current)	3,558		9,969		—		—		—		(3,255)		(1,244)		343		9,371
Warrants (non- current)*	—				(9,602)		—		—		19,839		—		—		10,238
Convertible loans (non- current)	33,132		66,206		—		—	(108,626)	—	34,629	(108,626)		(25,341)		34,629		—
Lease liabilities (non- current)	13,665		—		—		1		10		(517)		(210)		—		12,949
Derivatives (non- current)	12,465		—		207		—	(38)	—		(37,633)		24,961		—		—
Borrowings (current)	2,113		(2,362)		—		—		—		3,255		—		—		3,007
Lease liabilities (current)	1,464		(966)		—		18		10		517		(332)		517		1,229
Total	66,398	—	72,848	—	(9,395)	—	19	(146)	19	35	(126,420)	—	(2,166)	—	35,490	—	36,792

c) Market, interest rate and currency risk

Market risk is the risk that changes in market prices, such as foreign exchange rates or interest rates will affect

HomeToGo’s income or the value of its financial instruments. HomeToGo manages its market risk on a

centralized basis with the objectives of managing and controlling market risk exposures within acceptable

parameters.

Exposure to interest rate risk normally arises from variable interest-bearing financial instruments. HomeToGo

only has fixed interest loan agreements and therefore is not exposed to an interest rate risk.

HomeToGo is not exposed to a material transactional foreign currency risk.

35 - Change in accounting policy - Classification of warrants

As part of the de-SPAC transaction on September 21, 2021 HomeToGo took over public and non-public

warrants, which had been issued by Lakestar SPAC prior to the Transaction.

As a result of the IFRS IC agenda decision on Special Purpose Acquisition Companies (SPAC): Accounting for

Warrants at Acquisition issued on October 24, 2022, the Company reassessed its accounting for the warrants

acquired with the SPAC merger and recorded such warrants as a financial liability at fair value through profit or

loss. Accordingly, the Company accounted for a change in accounting policy and respectively adjusted its

financial statements retrospectively in accordance with IAS 8 for better comparison with prior year period. The

Group had previously accounted for the Class A Warrants and Class B Warrants as an equity-settled share-

based payment arrangement under IFRS 2 as they were considered part of the deemed issuance of equity

instruments to acquire Lakestar SPAC. In line with the guidance provided in the IFRS IC agenda decision the

Group considers the warrants as assumed and classifies the Class A Warrants and Class B Warrants as financial

liabilities by applying IAS 32 since the “fixed-for-fixed” condition in IAS 32.22 is not fulfilled as warrants contain

a net settlement feature. The warrants are no longer considered as deemed consideration but as part of the

net assets acquired.

Calculation of IFRS 2 non-cash listing service expense (de-SPAC transaction) as of September 21, 2021:



Fair Value in EUR million	As previously reported	Adjustments	As adjusted
Class A Shares (19.8 million shares at EUR 8.98 per share)	177.6	—	177.6
Class A Warrants (9.2 million warrants at EUR 0.80 per warrant)	7.3	(7.3)	—
Class B2 Shares (2.3 million shares at EUR 8.45 per share)	19.4	—	19.4
Class B3 Shares (2.3 million shares at EUR 8.23 per share)	18.9	—	18.9
Class B Warrants (5.3 million warrants at EUR 2.34 per warrant)	12.5	(12.5)	—
HomeToGo GmbH’s shares and warrants deemed issued	235.7	(19.8)	215.9
Less:
Lakestar SPAC’s net assets	165.3	(19.8)	145.5
IFRS 2 non-cash listing service expense	70.4	—	70.4

The retrospective change in accounting policy has no impact on the total amount of the IFRS 2 non-cash listing

service expense of the de-SPAC transaction. Following the change in the classification of Class A and Class B

Warrants, HomeToGo GmbH’s shares deemed issued amount to EUR 215.9 million and Lakestar SPAC’s net

assets amount to EUR 145.5 million resulting in an IFRS 2 non-cash listing service expense of EUR 70.4 million.

The classification of the warrants as a financial liability requires measurement at fair value, with non-cash fair

value adjustments recorded in the Consolidated Statement of Profit or Loss and Other Comprehensive Income

under Finance income and expenses.

For further information regarding the valuation of warrants please refer to Note 34 - Financial instruments.

Valuation of Class A and Class B Warrants


Fair Value in EUR million	December 31, 2022	December 31, 2021
(In EUR) per Option
Class A Warrants	0.10	0.71
Class B Warrants	0.10	0.71
(in EUR thousands) total value
Class A Warrants	901	6,472
Class B Warrants	524	3,766
Total Class A and Class B Warrants	1,425	10,238

The classification of warrants has been changed retrospectively as a change in accounting policy by adjusting

each of the affected financial statement line items for the prior period, as follows:

Consolidated Statement of Financial Position (extract):


December 31, 2021 (in EUR thousands)	Impact of change in accounting policy
	As previously reported	Adjustments	As adjusted
Other financial liabilities (non-current)	12,954	10,238	23,192
Deferred tax liabilities	3,874	—	3,874
Total liabilities	64,596	10,238	74,834
Retained Earnings	(279,444)	(10,238)	(289,682)
Total equity	300,687	(10,238)	290,449

Consolidated Statement of Profit or Loss and Other Comprehensive Income (extract):


For the year ended December 31, 2021 (in EUR thousands)	Impact of change in accounting policy
	As previously reported	Adjustments	As adjusted
Finance income	2,833	9,602	12,434
Finance expenses	(38,964)	(19,839)	(58,803)
Income taxes	(202)	—
Net loss	(166,789)	(10,238)	177,025

Impact on basic and diluted earnings per share (EPS):


For the year ended December 31, 2021 (in EUR thousands)	Impact of change in accounting policy
	As previously reported	As adjusted
Basic and diluted earnings (loss) per share	(2.09)	(2.22)

The change did not have an impact on OCI for the prior periods presented or the Group’s operating, investing,

or financing cash flows for the prior periods presented.