Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Investor Presentation (August 2023)
56 slides from Tonies Se Class A's investor presentation, August 2023
Slide 1: Company Presentation
Company Presentation tonies SE | August 2023
Slide 2: Content
Content Introduction to tonies SE H1 2023 Update & Outlook 2023 Appendix tonies® 2
Slide 3: Introduction to tonies SE
Introduction to tonies SE tonies® 3
Slide 4: Digitally connected Audio / Listening
tonies: the world’s largest interactive audio platform & creator of a multi-billion Euro category in kids entertainment & beyond Digitally connected Audio / Listening Playful No screen-time Child friendly Educational Independent play We are the pioneers of connected, technology-enabled audio systems
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 Toniebox: Smart, connected audio player allows for a large installed base, anchoring our proprietary ecosystem Tonies: Extensive and constantly growing choice of over 700 exciting c
Slide 6: Superior content distribution requires proprietary tech platform
Superior content distribution requires proprietary tech platform Gaming Video Audio tonies® 6
Slide 7: Our business model in a nutshell
Our business model in a nutshell Our platform is exponentially … fueling our razorblade … and adding further high growing with more and more business model with highly margin products to our tonies Tonieboxes… predictable Tonie activations universe Cumulative Tonies over customer lifetime Cumulative
Slide 8: Key investment highlights
Key investment highlights Huge market Newly created multi-billion Euro product category tapping into adjacent connected 1 opportunity audio, streaming as well as kids gaming and toys segments Pioneer with category-defining offering as first device in the kid’s room, high Differentiating 2 positionin
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 intersection of four huge consumer markets Connected toys market EUR 136bn EUR 70bn 7% CAGR 3% CAGR EURbn (2020A-25E) (2020A-25E) 16 16% CAGR (2020A-25E) 7 EUR
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 child‘s room Age: 0+ 1+ 3+ 8+ Video Gaming Audio Streaming tonies‘ Kids first-mover advantage Video Streaming tonies® 10 Note(s): Not recommended for kids below the
Slide 11: Tech-driven, highly scalable D2C platform with proprietary ecosystem
Market Positioning Business model Brand Financial track-record Growth opportunities Our business model is based on a tech-driven, highly scalable D2C platform, leveraging our proprietary ecosystem EUR Toniebox 99.00 Central platform for the ecosystem Tonies EUR 11.99 - 16.99 Third party EUR 14.99 –
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 Hardware Data-driven content production Distribution Contract Third party Proprietary Go-to-market manufacturing licensing content creation … … Deep design exp
Slide 13: Content-driven flywheel provides comprehensive customer data
Market Positioning Business model Brand Financial track-record Growth opportunities tonies’ content-driven flywheel provides comprehensive customer data… Thanks to being data-driven , we understand our users …what they listen for, where and when …how often and how long they listen for …how many user
Slide 14: Customers actively seek inspiration about our products
Market Positioning Business model Brand Financial track-record Growth opportunities We have truly excited customers that actively seek inspiration and information about our products ~335k followers globally tonies® 14
Slide 15: tonies is highly recognized
Market Positioning Business model Brand Financial track-record Growth opportunities tonies is highly recognized tonies® 15
Slide 16: 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 Since their release in 2021, our playtime songs have achieved triple gold status1,2 tonies® Original – Adele – 30 Playtime Songs Ed She
Slide 17: 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 drives sustainable revenue growth Revenue growth (EURm) Growth rate Actuals Plan 38% 703 CAGR (2019A-25E) 504 354 250 258 172 188 135 102 2019* 2020* 2021 2022
Slide 18: We intend to replicate our proven DACH success story globally
Market Positioning Business model Brand Financial track-record Growth opportunities We intend to replicate our proven DACH success story globally Development of global revenue distribution 40% 35% Revenue CAGR DACH (2022-25e) Revenue CAGR DACH (2019A-21A) 61% DACH 98% 25% US RoW 42% EUR EUR 13% EUR
Slide 19: Strong and highly predictable cohorts drive growth trajectory
Market Positioning Business model Brand Financial track-record Growth opportunities Strong and highly predictable cohorts drive growth trajectory Cumulative Tonies figurines purchased per Toniebox Sales since launch in Q4 2016 24 Our average customer buys 22 ~20 Tonies figurines +67m 20 within 4.5(1
Slide 20: Strong unit economics are the backbone of our business model
Market Positioning Business model Brand Financial track-record Growth opportunities Our strong unit economics are the backbone of our profitable business model Unit economics in EUR ~290 48 53 52 50 38 49 Box Purchase Year 1 Year 2 Year 3 Year 4 Year 5-6 Customer lifetime Note(s): Shown figures refe
Slide 21: 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 (medium term targets from IPO) Financial targets overview H1 2023 IPO: Group 2019(HGB) 2020(IFRS) 2021(IFRS) 2022(IFRS) (IFRS) medium-term Gross margin befo
Slide 22: Ready to capture multi-dimensional growth opportunities
Market Positioning Business model Brand Financial track-record Growth opportunities We are ready to capture multi-dimensional growth opportunities DACH penetration International Product and platform expansion + expansion + expansion Future Expand own content offering (“originals”) and extend depth/b
Slide 23: US with continued excellent traction since launch
Market Positioning Business model Brand Financial track-record Growth opportunities US with continued excellent traction since launch We were in the US even before Since then, we have conquered all …and significantly increased our market launch 50 states… market penetration January 2020 January 2021
Slide 24: Upwards and onwards for the US-market
Market Positioning Business model Brand Financial track-record Growth opportunities Upwards and onwards for the US-market 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 3
Slide 25: Listed with Target nationwide in the US starting fall 2023
Market Positioning Business model Brand Financial track-record Growth opportunities We will be listed with Target nationwide in the US starting fall 2023… 1,800 stores* 1,100 *representation will vary by location and size of store tonies® 25
Slide 26: First time also in 1,700 Walmart stores
Market Positioning Business model Brand Financial track-record Growth opportunities …and for the first time also in 1,700 Walmart stores 1,700+ new stores* nationwide starting Oct *representation will vary by location and size of store tonies® 26
Slide 27: Proven product fit in the US and clear channel strategy
Market Positioning Business model Brand Financial track-record Growth opportunities We have proven product fit in the US and leverage our strong growth momentum based on a clear channel strategy 65% 295 Growth rate Plan CAGR (2023E-25E) 384% Actuals CAGR (2020A-22A) 191 Revenue 116 growth (EURm) 52
Slide 28: Improving our platform and product offering is key to our strategic roadmap
Market Positioning Business model Brand Financial track-record Growth opportunities Improving our platform and product offering to satisfy and grow our fanbase is a key element of our strategic roadmap Accessories / Toniebox Tonies Own content Merchandise Next generation Alternative materials Signat
Slide 29: H1 2023 Update & Outlook 2023
H1 2023 Update & Outlook 2023 tonies® 29
Slide 30: H1 2023 – a profitable, high growth company
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 31: 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 32: 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 33: Sustainability starts with our product
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 34: Four sustainability pillars: Planet, Play, People, Principles
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 35: 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 Was
Slide 36: 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® 36
Slide 37: …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 38: 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 39: 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 40: 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 World
Slide 41: …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 42: Q2 2023 – Easter was early this year
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 43: 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® 43
Slide 44: Profitable business model with deliberate investment 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 45: 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 46: 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 47: 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 48: 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) 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 49: 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 50: Exciting extensions planned, including Canada
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 51: New Tonie categories launching 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 52: 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 53: Appendix
APPENDIX tonies® 53
Slide 54: 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 55: 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® 55
Slide 56: Thank you!
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