Slide 1: Earnings Presentation H1 2023
Earnings Presentation H1 2023 tonies SE | August 23, 2023
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements. Forward-looking statements can typically be identified by the use of words such as "expects", "may", "will", "could", "should", "intends", "plans", "predicts", "envisages" or "anticipates" or other words of similar meaning. These forward-
Slide 3: Who you have on the call today
Who you have on the call today Marcus Stahl Jan Middelhoff Co-CEO, CFO Co-Founder tonies® 3
Slide 4: Agenda
tonies SE | Earnings Presentation Business Update AGENDA H1 2023 Results Outlook Q&A tonies® 4
Slide 5: H1 2023 – we are a profitable, high growth company – our strategy works!
H1 2023 – we are a profitable, high growth company – our strategy works! Results H1 2023 Business update Outlook FY 2023 • Achieved profitability with adj. • Establishing sound sustainability • We are fully on track to reach our EBITDA margin at 2.6% (+10.4 pp framework to lead our category goals an
Slide 6: Business Update
a2 Business Update eC
Slide 7: The world's largest interactive audio platform for kids
The world’s largest interactive audio platform for kids… ~5.3m +1.4m Kids are the same Tonieboxes sold in last 12 months around the globe >100 countries with activated Tonieboxes** ~67m +19m Tonies sold in last 12 months Psst, there’s ~4,800 titles much more to come soon. in our audio library ~268 m
Slide 8: Sustainability: We want to lead the change in our category
Sustainability: We want to lead the change in our category “Lead the change” The journey just “For us, a planet worth living on is a part of our vision, and so we are committed to started! leading change in our category toward a more sustainable future.” We set standards We focus on sustainability t
Slide 9: Sustainability starts with our product – the Toniebox is a sustainability cornerstone
Sustainability starts with our product – the Toniebox is a sustainability cornerstone Conscious content raising awareness for endangered species with “Conservation Crew”-Tonies Durable No screen-time 148x more play time than contributes to physical and an average gifted toy** mental well-being Educa
Slide 10: Our sustainability goals have four pillars related to the ESG areas
Our sustainability goals have four pillars related to the ESG areas: Planet, Play, People, Principles Environmental Social Governance Visit our new website for more Planet People information! We take increasing We prioritize strong and long- responsibility in measuring and lasting relationships with
Slide 11: Example: 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 CO2- reduction Packaging Reduction of CO2-emissions via 100% recyclable or reusable optimization of operations Planet packaging for Tonies and Tonieboxes Wast
Slide 12: Artificial Intelligence: we pioneered AI-based story generation in our category
Artificial Intelligence: we pioneered AI-based story generation in our category … It took us only 6 weeks from idea to product launch tonies® 12
Slide 13: … and customers really loved it
… and customers really loved it 65% “Excitement of “LOVED it, so wonderful to see a of caretakers had seeing my child’s business being innovative with new technology and great to see AI used not used any other face when the story in a positive way - very exciting!” AI-tool in their life has been tai
Slide 14: US-market lives up to our high expectations
US-market lives up to our high expectations Continued strong cohorts Increase of retail channel as planned in k units in m units 800 6 Digital Retail 700 5.9m 5 600 66% 60% Tonies sold 75% 4 80% 500 740k 400 3 Tonieboxes 300 sold 2 200 40% 34% 25% >6,000 1 20% 100 retail partner 2020 2021 2022 2023e
Slide 15: Disney's Encanto - most successful Tonie launch in the US
Disney’s Encanto - most successful Tonie launch in the US Huge commercial success… …leveraged by social media 3.8x sales over typical AAA-Tonie launch #1 Amazon new Platinum Launch ● Hero product Platinum Launch ● Content Creator release in Toys & ● 700,115 reach ● 1.7m views ● 3,689 engagements ● 1
Slide 16: Financial Results H1 2023
Financial Results H1 2023 tonies® 16
Slide 17: We delivered profitable growth in H1 2023
We delivered profitable growth in H1 2023 Revenue Adjusted EBITDA margin EUR 113m +34% YoY +2.6% +10.4pp YoY Continued very strong demand Conscious growth investments • In line with plan & on track to reach EUR 354m • Achieved profitability in H1 2023 driven by: • Fueled by international markets…: •
Slide 18: H1 2023 – revenue growth in line with full year guidance
H1 2023 – revenue growth in line with full year guidance… Revenue by geography Revenue split by geography H1 2022 International H1 2023 113.1 DACH +34% 84.4 41% 25% +4% 113.1 +171% 84.4 75% 59% From local 63.4 66.2 dominance to +55% international 33.8 success 12.5 8.4 13.1 Group DACH US Rest of Worl
Slide 19: …and driven by all product categories!
…and driven by all product categories! Revenue by product category Revenue split by product category H1 2022 Tonieboxes +34% H1 2023 113.1 Tonies Accessories & Digital 22% 84.4 +37% 25% 113.1 73% 84.4 82.3 +21% 71% 60.1 +62% 20.6 24.9 3.7 5.9 4% 5% Group Tonieboxes Tonies Accessories H1 2022 H1 2023
Slide 20: Q2 2023 – Easter was early this year with retail revenues mostly booked in Q1
Q2 2023 – Easter was early this year with retail revenues mostly booked in Q1 Revenue by geography Revenue by product category Q2 2022 Q2 2022 +25% Q2 2023 +25% Q2 2023 +35% -4% 48.0 48.0 38.5 +126% 38.5 +1% 33.8 28.2 27.0 +66% 25.1 14.8 +37% 11.3 11.4 6.6 6.2 3.7 2.0 2.8 Group DACH US Rest of World
Slide 21: Why will tonies be a profitable company?
Why will tonies be a profitable company? Proven, profitable Replication of blueprint Focus on execution of business model in selected focus margin-enhancing blueprint in DACH markets: US, UK, FR levers from our strategy tonies® 21
Slide 22: tonies has a profitable business model and deliberately chose to invest in international growth
tonies has a profitable business model and deliberately chose to invest in international growth 2019(HGB) 2020(IFRS) 2021(IFRS) 2022(IFRS) H1 2023 (IFRS) Gross margin before We have been licensing costs 44.6% 50.1% 54.1% 54.2% 65.0% profitable with our DACH blueprint includes -4pp of exceptional air
Slide 23: We have a clear plan of our margin-enhancing levers
We have a clear plan of our margin-enhancing levers Increasing gross margin after Increasing gross margin licensing & operating leverage Optimization of Successful price Expansion of high- Reduction of licensing Cost-conscious SG&A product portfolio & increases margin offering costs management launc
Slide 24: H1 2023 – Gross margin improvement and lower licensing costs drive positive adjusted EBITDA
H1 2023 – Gross margin improvement and lower licensing costs drive positive adjusted EBITDA Adjusted EBITDA margin bridge (in pp) • COGS driven by price increases, lower cost for inbound logistics (mainly -2.8% airfreight) as well as favorable effects 0.5% from channel and product mix 7.7% -0.1% -0.
Slide 25: Wrapping up with P&L: Key numbers and margins (adjusted)
Wrapping up with P&L: Key numbers and margins (adjusted) in EURm and H1 2023 H1 2022 Delta % of revenue Abs. % of revenue Abs. % of revenue Abs. pp. Revenue 113.1 - 84.4 - 28.7 - Gross profit 73.5 65.0% 48.9 57.9% 24.7 +7.1pp Gross profit after 63.9 56.5% 35.2 41.7% 28.7 +14.8pp licensing costs Cont
Slide 26: Cash flow reflects early inventory build-up to be ready for the important Q4
Cash flow reflects early inventory build-up to be ready for the important Q4 Cash bridge (in EURm) 55 Adj. EBITDA • Operating CF driven by strong 50 +3.0 inventory build-up to avoid stock- Preparing for Q4: outs & high airfreight costs in case 45 Other effects of macroeconomic disruptions -12.1 earl
Slide 27: Outlook
Outlook 27
Slide 28: Guidance FY 2023 – fully on track to achieve our ambition
Guidance FY 2023* – fully on track to achieve our ambition Results Guidance from IPO Guidance FY 2022 FY 2023 FY 2023 Group revenue (EURm) 258 354 354 (+37% YoY) US revenue (EURm) 66 108 116* (+77% YoY) Group adjusted EBITDA -2.4% na “positive” in % of revenue Further year of significant growth ahea
Slide 29: Exciting extensions planned for our portfolio and Canada entry
We have some exciting extensions planned for our portfolio and will also bring our Tonies to Canada Top licenses Own content New Tonies of the most beloved New Tonies of our successful own characters among kids that spark content series that promote diversity and imagination: e.g., Paw Patrol, Marve
Slide 30: New Tonie categories will launch in H2 2023
Our platform also offers a great basis for countless innovations – some new Tonie categories will launch in H2 2023 Podcast-like Advent Calendar Clever Tonies Our very first advent calendar Tonie with daily content Our new, more affordable, Tonie format with edutaining updates: Every day from Decemb
Slide 31: H1 2023 – Key takeaways
H1 2023 – Key takeaways Despite challenging times, we continuously keep our promises & deliver against the plan We prove that we are a profitable growth company The US-market growth is happening – its our most important growth market FCF on plan, with inventory-level in H1, we are well prepa
Slide 32: Meet us on conferences and roadshows
Meet us on conferences and roadshows Results Conferences Roadshows AUG 23: H1 2023 AUG 30: London AUG 31: Paris SEP 5: Corporate Conf. Coba & ODDO BHF SEP 6: US (virtual) H2 SEP 19: BB/GS German Corporate Conference SEP 7: US (virtual) NOV 13: Q3 2023 NOV 16: Warburg Conference NOV 27-29: Deutsches
Slide 33: Investor Relations Contact
Investor Relations Contact Investor Relations Website https://ir.tonies.com/ Investor Relations Contact Manuel Bösing Head of Investor Relations Phone: +4915157846012 Mail: manuel.boesing@tonies.com tonies® 35