Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Investor Presentation (November 2023)
62 slides from Tonies Se Class A's investor presentation, November 2023
Slide 1: Company Presentation tonies SE | November 2023
Company Presentation tonies SE | November 2023
Slide 2: Content
Content Introduction to tonies SE 9M 2023 & Outlook 2023 Sustainability Appendix tonies® 2
Slide 3: Introduction to tonies SE
Introduction to tonies SE
Slide 4: The world's largest interactive audio platform for kids
tonies: the world's largest interactive audio platform & creator of a multi-billion Euro category in kids entertainment & beyond
Slide 5: Our ecosystem is tailored to the needs of young families
Our ecosystem is tailored to the needs of young families by providing a playful, safe and screen-free audio experience i Toniebox: Smart, connected audio af player allows for a large installed base, anchoring our proprietary ecosystem fons Toues: ° Extensive and constantly growing choice of over 700
Slide 6: Superior content distribution requires proprietary tech platform
Superior content distribution requires proprietary tech platform tonies® 6
Slide 7: Our business model in a nutshell
Our business model in a nutshell r r ; Our platform is exponentially ... fueling our razorblade growing with more and more business model with highly Tonieboxes... predictable Tonie activations p Cumulative Tonieboxes sold Cumulative Tonies over customer lifetime LU) ) (Q4'16-Q3'23 in #) an (Sobecit
Slide 8: Key investment highlights
Key investment highlights Huge market Newly created multi-billion Euro product category tapping into adjacent connected opportunity audio, streaming as well as kids gaming and toys segments brand loyalty and differentiating value proposition, leveraging first-mover Differentiating Pioneer with categ
Slide 9: A new multi-billion Euro category at the intersection of four consumer markets
Market | Positioning Business model Brand Financial track-record | Growth opportunities We have created a new multi-billion Euro category in the nd intersection of four huge consumer markets SS iis) 5 yet #1 arket #2 7, mw) yho* 5 caming and Gam, “@¢ > Zi ol go? Mo - - Connected toys market EUR 136b
Slide 10: Toniebox is the first connected device to enter the child's room
Market Positioning Business model Brand Financial track-record | Growth opportunities Toniebox is the first connected device to enter the nd child's room . £ ee ¥ ide Video 7 > 75) Gaming RQOBLEX ©, « I tonies’ Streaming Kids first-mover advantage va . a i? rime Note(s): Not recommended for kids bel
Slide 11: Tech-driven, highly scalable D2C platform
Market Positioning Business model Brand Financial track-record | Growth opportunities Our business model is based on a tech-driven, highly ws scalable D2C platform, leveraging our proprietary ecosystem nd A . Touebou = ij ; =) Central platform for the ecosystem 3 °| EUR yy EUR | Accessories) §— Addi
Slide 12: Proven business model with clear focus on value creation
Market Positioning Business model Brand Financial track-record | Growth opportunities Proven business model with clear focus on value creation e > | | Go-to-market Proprietary content creation ae | tonigea lll my SELFRIDGES!\* mak ce = NSNE, UNIVERSAL ws ; if a a porery bam Ear Pallia _ : 700% ay am
Slide 13: Third party licenses relevant for majority of Tonies figurines revenue
Market Positioning Business model | Brand Financial track-record | Growth opportunities Third party licenses relevant for majority of Tonies- Y figurines revenue — share of own productions rises | Andto-Content | Licensed —_ Cc S . O . xe) || 2 0] O | LS tonies® 13
Slide 14: Distribution: strong omni-channel mix with increasing DTC share
Market Positioning Business model Brand Financial track-record | Growth opportunities Distribution: Strong omni-channel mix with increasing e DTC-share Channel Mix Strong Retail Partners _ ] Own Website =e — Stonies All Content Tonies © ev $BB ia BARNES <-NOBLE IMAGINATION tC @ aortas SATURN Bitcesr
Slide 15: Content-driven flywheel provides comprehensive customer data
Market Positioning Business model Brand Financial track-record | Growth opportunities tonies’ content-driven flywheel provides comprehensive tf customer data... Thanks to being daéa-Otuvet, More Cotter. we understand our users ..what they listen for, where and when .. how often and how long they lis
Slide 16: Customer inspiration and information about our products
Market Positioning Business model inspiration and information about our products 7h Guys. These toniebdxes are life-changing) We got our four year old one for Christmas, and | have more than |'li admit invested in it. However. My son is 7 and requested one for himself. | laughed, thinking he wouldn'
Slide 17: tonies is a highly recognized brand
Market Positioning Business model Brand | Financial | track-recor d | Growth opportunities tonies is a highly recognized brand \y/ LICENSING XC INTERNATIONAL
Slide 18: tonies Originals are sold more often than albums of renowned artists
Market Positioning Business model Brand Financial track-record Growth opportunities tonies® Originals are sold more often in Germany than ~ albums of renowned artists q Since their release in 2021, our playtime songs have achieved triple gold status A & eh Il & S) — on eS ~ % tonies® Original — Play
Slide 19: Loyal and growing customer base drives sustainable revenue growth
Market | Positioning | Business model | Brand | Financial track-record| Growth opportunities | Our highly loyal and continuously growing customer base nd drives sustainable revenue growth Revenue growth (EURm) rowth rate Actuals [| Plan 703 38% CAGR (2019A-25E 504 102 2201" ‘ 220258 asa.—lUC ESa.—Ul
Slide 20: We replicate our proven DACH success story globally
Market | Positioning | Business model | Brand | Financial track-record| Growth opportunities | We replicate our proven DACH success story globally nd Development of global revenue m 9 49% 0 —_> 35% —_—_> Revenue CAGR (2022-25e) Revenue CAGR (2019A-21A) Note(s): 2019: Audited German GAAP financials;
Slide 21: Our average customer buys ~20 Tonies figurines within 4.5 years
Market | Positioning Business model Financial track-record | Growth opportunities | Our average customer buys ~20 Tonies figurines within 4.5 years a Cumulative Tonies figurines purchased per Toniebox (_Yeart —J{—Year2—)[Year3)[__Yeara )LYeare —) Strong and highly predictable cohorts drive growth e
Slide 22: Strong unit economics are the backbone of our profitable business model
Market | Positioning | Business model | Brand Financial track-record| Growth opportunities | Our strong unit economics are the backbone of our nd profitable business model Unit economics in EUR (Box Purchase { Year 1 mit Year 2 mit Year 3 mit Year 4 mit Year 56} Customer lifetime Note(s): Shown figu
Slide 23: Scalable business model will drive future profitability
Market Positioning Business model Brand Financial track-record| Growth opportunities Our scalable business model will drive future profitability rv (medium term targets from IPO) Financial targets overview H1 2023 IPO: Group 2019(HGB) 2020(IFRS) 2021 (IFRS) 2022(IFRS) (IFRS) medium-term ESS TEUgINIE
Slide 24: Ready to capture multi-dimensional growth opportunities
Market Positioning Business model Brand Financial track-record | Growth opportunities We are ready to capture multi-dimensional i growth opportunities DACH penetration International Product and platform expansion expansion expansion Rute Expand own content offering (“originals”) and extend depth/bre
Slide 25: US with continued excellent traction since launch
Market: | Positioning | Business model | Brand Financial track-record | Growth opportunities | US with continued excellent traction since launch = rv before market launch 50 states... market penetration We were in the US even | | Since then, we have conquered all ..and significantly increased our |
Slide 26: Upwards and onwards for the US market
Market | Positioning | Business model Upwards and onwards for the US-market ink units 1,000 900 800 700 600 500 400 300 Continued strong cohorts inm units 8 2020 2021 2022 2023 — Tonies (rhs) [lll Tonieboxes (ths) | Brand Financial track-record | Growth opportunities | 2020 Increase of retail channe
Slide 27: We will be listed with Target nationwide in the US
Market Positioning Business model Brand Financial track-record | Growth opportunities | We will be listed with Target nationwide in the US = starting fall 2023... tonies® 27
Slide 28: Market Positioning Business mo: del
Market Positioning Business mo: del
Slide 29: Proven product fit in the US and clear channel strategy
Market Positioning Business model Brand Financial track-record | Growth — We have proven product fit in the US and leverage our ey strong growth momentum based on a clear channel strategy [ Growth rate Plan 295 65% CAGR (2023E-25E) Actuals 384% Growth CAGR (2020A-22A) > 191 Ramp-UP FA y 116 52 66 16
Slide 30: Improving platform and product offering is key to our strategic roadmap
Market | Improving our platform and product offering to satisfy and ww grow our fanbase is a key element of our strategic roadmap Positioning | Business model | Brand Financial track-record | Growth opportunities | Toniebox Next generation Toniebox and target group expansion Installed Base A Alterna
Slide 31: 9M 2023 & Outlook 2023
9M 2023 & Outlook 2023 Business Update all Revenue Performance 9M 2023 ay Profitability & Cashflow H1 2023 #3 Outlook 2023 & Key takeaways
Slide 32: The world's largest interactive audio platform for kids
The world's largest interactive audio platform for kids... ~5.7m Tonieboxes sold +1.5m in last 12 months ~72m Tonies sold +20m in last 12 months >850 different “Blades” | Kids are the same around the globe >100 countries \ es activated We wef launched Ee wef in Sep 23 Density Toniebox activations lo
Slide 33: Offering a basis for innovations such as Clever Tonies
... Offering a great basis for countless innovations such as our new format “Clever Tonies” “Clever Jouies”’ provide edutainment for kids aged 5 years and above fostering knowledge acquisition, emotional intelligence & social skills Still screen-free More affordable & perfect for collecting v¥ More
Slide 34: Positive feedback for our AI-based story generator
We already got a lot of positive feedback for our pioneering Al-based story generator but it's getting even better! Feedback from the UK was great*: 8+ /10 overall experience rating 97% rated generated text q+/5 We just started further testing of engagement & monetisation potential in Germany —_ Del
Slide 35: Gaining recognition in the US by sparking kids' imagination
We keep gaining recognition in the US by sparking kids’ imagination ... r ee ~ | 3 nominations for Toy of the Year 2023 [ Top 20 bestseller list on Amazon Prime Day - 360 marketing campaign in a4 | Discover Imagination Plush Toy of the Year tonies x Steiff Jimmy Bear Creative Toy of the Year Creativ
Slide 36: Entering Q4 with a strong retail footprint
... and enter the important Q4 with a strong retail footprint Distribution of US retail stores Canada launch in September Walmart >< Smvemenettvebetee YoY:#POS in the US increased by >50% , 177 stores ; Tonieboxes already (Indigo & WY installed _ Toys 'R’ Us) Oct 2023: launch in 1,600 Walmart stores
Slide 37: Closed a syndicated loan facility to secure working capital
We successfully closed a syndicated loan facility with strong partners to secure working capital needs for growth | rey oe SO Syndicated loan facility = Replaced previous bilateral credit facilities of EUR 26 million = EUR 30 million + EUR 10 million COMMERZBANK Bank aus Verantwortung ° top-up optio
Slide 38: 9M 2023 & Outlook 2023
9M 2023 & Outlook 2023 ‘® Business Update Revenue Performance 9M 2023 ay Profitability & Cashflow H1 2023 #3 Outlook 2023 & Key takeaways
Slide 39: 9M 2023 on track to reach 2023 guidance
9M 2023 — on track to reach 2023 guidance driven by resilient DACH market & very strong international growth... i Revenue by region Hom 2022 | 1.2 Rest of World Revenue split by region 138.2 29% 9M 2022 == vow we AA% 9M 2023 Hi Intemationclll M™) DACH From local dominance to international | success
Slide 40: Strong and well-balanced growth in all product categories
.. and strong & well-balanced growth in all product categories! Revenue by product category Revenue split by product category Hom 2022 (9m 2023 Tonies Accessories | _& Digital MM Tonieboxes | 191.9 [Ml Tonies | Hl Accessories & Digital | 27% | 9M 2022 9M 2023 tonies® 40
Slide 41: Q3 2023 strong rebound in DACH and rapid international expansion
Q3 2023 — strong rebound in DACH and continued rapid international expansion | Revenue by region fg Bs 2022 | SW a3 2023 DACH: supported by’ baseline effect vs Q3 2022 (-9% YoY) Group Accessories & Digital — tonies® 41 Tonies
Slide 42: 9M 2023 & Outlook 2023
9M 2023 & Outlook 2023 ce) Business Update all Revenue Performance 9M 2023 4 Profitability & Cashflow H1 2023 #3 Outlook 2023 & Key takeaways
Slide 43: We delivered profitable growth in H1 2023
We delivered profitable growth in H1 2023 Veilece EBITDA margin Ma ks on +2.6% +10.4fefr vor * Achieved profitability in H1 2023 driven by: * increased gross margin (+71pp) mainly due to price increases, channel mix, product mix and lower costs for inbound-logistics (e.g. airfreight) * higher contri
Slide 44: Why will tonies be a profitable company?
Why will tonies be a profitable company? Proven, profitable icati i Focus on execution of business model in selected focus margin-enhancing blueprint in DACH markets: US, UK, FR levers from our strategy tonies® 44
Slide 45: Profitable business model and deliberate investment in international growth
tonies has a profitable business model and deliberately chose to invest in international growth Gross margin before licensing costs Gross margin after licensing costs Contribution margin Adj. EBITDA margin Markets 2019(HGB) 44.6% 270% 15.2% 3.6% only active in DACH & UK H1 2023 2020(IFRS) 2021(IFRS)
Slide 46: A clear plan of our margin-enhancing levers
We have a clear plan of our margin-enhancing levers Increasing gross margin after licensing & operating leverage Successful price increases Expansion of high- margin offering Optimization of product portfolio & launches “| Reduction of licensing costs Cost-conscious SG&A management US, UK and France
Slide 47: H1 2023 gross margin improvement and costs drive positive adjusted EBITDA
H1 2023 — Gross margin improvement and costs drive positive adjusted EBITDA Adjusted EBITDA margin bridge (in pp) ower licensing 78% Adj. EBITDA margin H1 2022 \ COGS Licensing Fulfilment Marketing Personnel Opex Other Adj. costs \ EBITDA Y Y margin Improvement in H1 2023 LU contribution margin Othe
Slide 48: Wrapping up with P&L: key numbers and margins
Wrapping up with P&L: Key numbers and margins (adjusted) / Vix in EURm and / AUS ineurmand HMC ore beta Kee Abs. % of revenue Abs. % of revenue Abs. Revenue 113.1 - 844 = 28.7 = Gross profit 735 65.0% 48.9 579% 247 +71 pp Gross profit after 63.9 56.5% 352 417% 287 +148pp licensing costs /AGj. EBITDA
Slide 49: Cash flow reflects early inventory build-up for Q4
Cash flow reflects early inventory build-up to be ready for the important Q4 Cash bridge (in EURm) oe “3r Preparing for Q4: early inventory build amid macroeconomic uncertainties — last L year we had exceptional 4pp lower gross margin due to airfreight! Operating CF driven by strong inventory build-
Slide 50: 9M 2023 & Outlook 2023
9M 2023 & Outlook 2023 ce) Business Update all Revenue Performance 9M 2023 ay Profitability & Cashflow H1 2023 3 Outlook 2023 & Key takeaways
Slide 51: Outlook FY 2023 fully on track
Outlook FY 2023* — after 9 months we are fully on track to achieve our ambitious targets Ly fe! SIO Results FY 2022 258 354 Group revenue (EURm) in % of revenue L Outlook from IPO Outlook FY 2023 FY 2023 (437% YoY) * US revenue (EUR) 66 116 (477% YoY) Group adjusted EBITDA -2.4% “positive” Wy Furthe
Slide 52: Tobias Wann appointed new CEO of tonies SE
Tobias Wann appointed as the new CEO of tonies SE with effect as of January 1st, 2024 eer A = / — = - = us = ow . Logical next step after Marcus and Patric step back from the operating business at their own request, having led the company for 10 years to its position as a love brand and market leade
Slide 53: 9M 2023 Key takeaways
9M 2023 — Key takeaways all Despite challenging times, we continuously keep our promises & deliver against the plan W, We prove that we are a profitable growth company « The US-market growth is happening -— its our most important growth market [Ln Qutlook for 2023 confirmed: we are confident in reac
Slide 54: Sustainability
Sustainability
Slide 55: We want to lead the change in our category
Sustainability: We want to lead the change in our category “Load the change” “For us, a planet worth living on is a part of our vision, and so we are committed to leading change in our category toward a more sustainable future.” eg The journey just started! | \ We set standards We focus on sustainab
Slide 56: Sustainability starts with our product
Sustainability starts with our product — the Toniebox is a sustainability cornerstone 7 Conscious content Raising awareness for endangered species with "Conservation Crew"-Tonies 7 Durable 148x more play time than an average gifted toy** Neo screen-time contributes to physical and mental well-being
Slide 57: Four sustainability pillars: Planet, Play, People, Principles
Our sustainability goals have four pillars related to the ESG areas: Planet, Play, People, Principles i Bf emtonrenar_[soast —fcorerance Visit our new website for more information! People We take increasing | We prioritize strong and long- _ responsibility in measuring and 7 | lasting relationships
Slide 58: Our Planet goals translate into concrete actions
Example: Our “Planet” goals translate into concrete actions Materials Implementation of biobased or recycled materials in all tonies products CO. reduction Reduction of con emissions via 100% recyclable or reusable optimization of operations packaging for Tonies and Tonieboxes Circular concepts Expa
Slide 59: Appendix
K APPENDIX é
Slide 60: Meet us on conferences in Q4
Meet us on conferences in Q4 " pnesuts Conferences | @) 4 NOV 22: SdK Company Presentation NOV 27-29: Deutsches Eigenkapitalforum 2023 } DEC 5: Berenberg European Conference =) {vec 14: HSBC European Small & Mid-Cap Series tonies® 60
Slide 61: Investor Relations Contact
Investor Relations Contact Investor Relations Website https://irtonies.com Investor Relations Contact Manuel Bosing Head of Investor Relations Phone: +4915157846012 Mail: manuel.boesing@tonies.com tonies® 61
Slide 62: Confidentiality and forward-looking statements
Confidentiality All information within these slides is strictly confidential and can only be handed over or published to third persons with the prior written consent of tonies SE. These slides contain forward-looking statements Certain statements included in this document are forward-looking stateme