Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Tonies Se Reg A — H1 2024 Earnings Presentation
37 slides from Tonies Se Class A's earnings presentation, Aug 22, 2024
Slide 1: Earnings Presentation H1 2024
Earnings Presentation Hi 2024 tonies SE | August 22, 2024
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 Tobias Wann Dr. Jan Middelhoff CEO CFO tonies® 3
Slide 4: tonies SE Agenda
tonies SE | Earnings Presentation Agenda | Welcome to tonies Business Highlights Financial Results Outlook 2024 Q&A tonies® 4
Slide 5: Largest interactive audio experience platform for children in the world
tonies: We have built the largest interactive audio experience platform for children in the world Density of Toniebox activations t i ~ Se sak Se faceted ¥ low EE high gi @ mn *ax 9 $ & B We are the #1 audio platform for kids globally We have unparalleled stickiness >90 million Tonies sold >7.3 mill
Slide 6: Over 70% of all Tonieboxes sold still active
>70% of all Tonieboxes sold still active '16 2017 2018 2019 2020 2021 2022 2023 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Slide 7: Business Highlights: Exciting things happening at tonies
Business high Our value levers: ) Internationalization Gross margin expansion yt “yp own content/IP Silla fail Product/channel mix perating leverage ights: Exciting things happening at tonies Seamless leadership transition sets the stage for next growth chapter KOHLS © TARGET. e Continued expansion
Slide 8: Business Highlights
Business Highlights 8
Slide 9: Seamless leadership transition
Seamless leadership transition — What a remarkable eae al company! Product Universal product-market fit: >50% DACH penetration rate & >50% international revenue Beloved and powerful brand with strong licensing and own IP: 2 out of top 5 franchises Business Successful go-to-market and distribution st
Slide 10: Positioned at the intersection of Technology, Content & Toys
tonies is uniquely positioned at the intersection of Technology, Content & Toys — key for entertainment in the 21st century | OS ©) 2) ¢ Largest and exponentially growing x audio hardware platform for children T e chn ol O° gy Highly regarded and awarded user experience creates high stickiness Seaml
Slide 11: Three major factors drive our success and future growth
Three major factors drive our success and future growth Storytelling shapes our culture and the world we live in > Reducing screen time is a top priority for parents and a D major mental health concern! Investments into children's development are growing double digit > Children have always learned h
Slide 12: Our customers confirm the amazing impact our products have
Our customers confirm the amazing impact our products i have on their children “Tlove tonies! It entertains and helps our kids use their imagination. The decrease in screen time is a wonderful thing for them.” . Katrina S. “I cannot express enough gratitude for this product. It has helped bring peac
Slide 13: Vision to enrich the lives of as many children as possible
It is our fundamental vision to enrich the lives of as many ef children as possible We have an incredible opportunity as we have so far only impacted the lives of 0.5% of our target 3 audience 1.5 bn children aged 0-10 years globally tonies® 13
Slide 14: We are just at the beginning
We are just at the beginning. Stay tuned.. for tonies’ firs Yy a i t Capital Markets Day in Hi 2025 I tonies® 14
Slide 15: 2023 2024 2023 2024
50 242 24 112 2023 2024 2023 2024
Slide 16: US Wholesale expansion playing a key role
... with US Wholesale expansion playing a key role © TARGET. 1770 1,600 1,550 #POS Hl Permanent I Seasonal Dec 23. H124 Dec 24e 109 #SKU 36 36 Hl Permanent Hl Seasonal Dec 23 H124 Dec 24e Note: numbers are rounded Walmart >/< Dec 23 Hi 24 Dec 24e moe SS) SS) Dec 23 H124 Dec 24e KOHES +850 permanent
Slide 17: Successfully launched Australia & New Zealand
We have successfully launched Australia & New Zealand wg We are confident that this is our most successful launch to date gan %, Product: Byer” wigiles Our biggest launch portfolio ever (55 Tonies, 4 Tonieboxes, Headphones, Listen&Go Bags & = 2 ms Night Light Tonies) with the most popular a: BA cont
Slide 18: Multi-year, multi-territory global contracts with top license partners
Securing our future IP Pipeline: multi-year, multi-territory i global contracts signed with top license partners 4 if Te Diieng; CONSUMER PRODUCTS 10+ new Tonies incl. Paw Patrol, Sponge = / new Disney and Marvel Tonies ; over the next few years! | Bob & Teenage Mutant Ninja Turtles \ ) ‘ over the n
Slide 19: Clever Tonies format launched successfully, enhancing CLV
Clever Tonies format launched successfully, enhancing customer lifetime value (CLV) Growing portfolio Key facts #SKUs #SKUs Launch date Jun 2024 Dec 2024 Target group extension edutainment for kids aged 5+ years Short go-to market Feb 2024 1 18 through standardized design Higher Gross margin Oct 202
Slide 20: Streamlined European logistics and warehousing
Streamlined European logistics and warehousing — wl from 3 players to 1 European leader } ) arvato Ey Upscaling of service levels Streamlined reporting & supportive IT Global warehouse footprint Mid-single digit EUR million savings tonies® 20
Slide 21: Financial Results H1 2024
Financial Results H1 2024
Slide 22: Strong H1 puts us firmly on track to reach FY 2024 guidance
Strong H1 puts us firm Revenue EUR 1 Adj. EBITDA’/ EBITDA margin 2.6% | 2.0% YoY: +0.8pp / +4.4pp Free cash flow EUR -32m y on track to reach FY 2024 guidance Growth driven by international markets, particularly North America, and continued very strong growth in the mature DACH region. 51% share int
Slide 23: P&L: Key numbers and margins (adjusted)
P&L: Key numbers and margins (adjusted) 1 2024 EURm % of revenue 3 % of revenue EURm a e COGS Gross profit Incl. EUR 3.4m _ Telease of provision Gross profit after licensing costs J (~3pp) Fulfilment Contribution profit. METKON. unmnnnnnnnnnannnnnna on SG&A Personnel QW WOT CAPA ZE amma naman Svnmun
Slide 24: H1 Regional split: international markets drive growth
H1 Regional split: international markets drive growth, rv mature DACH Region achieves high single-digit gains Revenue by region jin cur) Revenue split +30% Hl 11 2023 146.8 Hl International Mt 2024 Mi DACH Group DACH North America Rest of World H1 2023 H1 2024 y= tonies® 24
Slide 25: H1 Product split: balanced growth across all categories
H1 Product split: balanced growth across all categories (a Revenue by product category tin cur) Revenue split by product category +30% Wl H1 2023 146.8 MB Tonieboxes MBit 2024 Ml Tonies Hl Accessories & Digital Group Tonieboxes Tonies Accessories H1 2023 H1 2024 & Ve & Digital tonies® 25
Slide 26: Q2 revenue: accelerated growth led by North America
Q2 revenue: accelerated growth led by North America Revenue by region (in curm) Revenue by product category (in curm) +43% Group Hl a2 2023 WM 02 2024 DACH North America Rest of World +43% t Group Revenue reclassification increased Tonieboxes & Tonies revenue while decreasing Accessories & Digital r
Slide 27: EBITDA positive for the first time in the seasonally weaker H1
• EBITDA positive for the • first time in the seasonally • weaker H1 since IPO •
Slide 28: Adjusted EBITDA margin improvement YoY
Adjusted EBITDA margin improvement YoY Adjusted EBITDA margin bridge tin pp) One-off effect in H1 2023 of EUR 3.4m had positive impact of ~3pp (release of licensing provisions) COGS Licensing Fulfilment Marketing Personnel Opex Ownwork Other costs capitalized H1 2024 H1 2023 Y Improvement in othenco
Slide 29: Cashflow reflects early inventory build up for second half
Cashflow reflects early inventory build up for the important rv second half of the year Cash bridge (in cuRm) 59.3 Cash as of Operating CF InvestingCF Financing CF FX effects Cash as of 31 Dec 2023 30 Jun 2024 Operating CF driven by strong inventory build-up to avoid stock-outs and minimize air frei
Slide 30: Ready for Free Cash Flow breakeven in 2024
After significant improvement in 2023 we are ready for Free rv Cash Flow breakeven in 2024 Free Cash Flow Yield H1 FY 2023 2024 FCF 510 (in EURm) =o) -39 -32 Revenue >480 361 (in EURm) 113 147 FCF/ FCF improved from EUR -39m in HL 2023 to EUR -32m in H1 2024 despite higher revenue basis in 2024 Driv
Slide 31: Outlook 2024
Outlook 2024 31
Slide 32: Guidance FY 2024: Continued significant revenue growth & improved profitability
Guidance FY 2024': Continued significant revenue growth & Iv further improved profitability driven by structurally strong Group revenue (EURm) North America revenue (EURm) Adjusted EBITDA margin (%) Free cash flow (EURm) 4.0% -5 024 >480! (>33% YoY) >200! (>42% YoY) 6-8% >10 + Free cash flow will fu
Slide 33: Business priorities for H2
Business priorities for H2 Our value levers: wr ad Leon content/IP OX Internationalization perating leverage Deliver commercial moments around Black Friday/Cyber Monday and Christmas Launch of Book Tonies in Q4 — stay tuned for another innovation! pal Deliver North America growth as planned to becom
Slide 34: Q&A
Q&A tonies® 34
Slide 35: I ▪ II ▪ III ▪
I▪ II▪ III▪ IV V▪ VI▪ ▪ tonies® 35
Slide 36: Meet us on conferences and roadshows
Meet us on conferences and roadshows | MAR 7: Berenberg EU Opportunities Conference MAR 19: Jefferies Pan-European Mid-Cap Conference { MAR 19: Jefferies Pan-European Mid-Cap Conference (wruirracs APRS FRA) LONE BPR) MAY 21: Berenberg Manhattan Conference MAY 22 (NYC) } JUN 7: Warburg Conference (Au
Slide 37: Investor Relations Contact
Investor Relations Contact Investor Relations Team Contact ir@tonies.com Investor Relations Contact Manuel Bosing Head of Investor Relations Phone: +4915157846012 Mail: manuel.boesing@tonies.com tonies® 37