Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Investor Presentation (May 2024)
72 slides from Tonies Se Class A's investor presentation, May 2024
Slide 1: Company Presentation
Company Presentation tonies SE | May 2024
Slide 2: Content
Content Introduction to tonies SE Results 2023 & Outlook 2024 Results Q1 2024 Sustainability Appendix tonies® 2
Slide 3: Introduction to tonies SE
Introduction to tonies SE tonies® 3
Slide 4: We have built the largest interactive audio experience platform for children
tonies: We have built the largest interactive audio experience platform for children in the world and it’s just the beginning! Density Toniebox activations low high Our products enrich the 7m Tonieboxes and Families in >100 life of >50m people1 88m Tonies sold since countries have Q4 2016 activated
Slide 5: Business model: unparalleled value around a unique product and brand
Business model: We create unparalleled value around a unique product and brand Global category creator and leader – offering a smart connected audio 281 min >70% 1 experience device “Toniebox” for children – unparalleled stickiness average weekly playtime in Q1 24 average monthly active users in Q1
Slide 6: FY 2023 performance at a glance: Another record year
FY 2023 performance at a glance: Another record year! Revenue: Toniebox platform grows … fueling the highly predictable EUR 361m exponentially every year… repeat purchases of Tonies Cumulative Tonieboxes sold Cumulative Tonies over customer lifetime YoY: +40% (Q4’16-Q4’23 in #) DACH: EUR 166m (+5%)
Slide 7: 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 8: 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 9: Superior content distribution requires proprietary tech platform
Superior content distribution requires proprietary tech platform Gaming Video Audio tonies® 9
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+ 5+ 8+ Video Gaming Audio Streaming tonies‘ Kids first-mover advantage Video Streaming Note(s): Not recommended for kids below the age of
Slide 11: Tech-driven, scalable DTC platform leveraging proprietary ecosystem
Market Positioning Business model Brand Financial track-record Growth opportunities Our business model is based on a tech-driven, highly scalable DTC platform, leveraging our proprietary ecosystem EUR Toniebox 99.00 Central platform for the ecosystem EUR EUR EUR EUR Tonies 9.99 - 16.99 Third party 1
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: 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- figurines revenue – share of own productions rises Audio-Content Own Licensed Own Figurine Licensed 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 DTC-share Channel Mix Wholesale Direct-to-Consumer Strong Retail Partners Own Website Amazon Marketplace 63% 55% 74% 84% 37% 45% 26% 16% 2020 2021 2022 2023 Direc
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 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 users
Slide 16: Excited customers seeking 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 >800k followers globally tonies® 16
Slide 17: tonies is a highly recognized brand
Market Positioning Business model Brand Financial track-record Growth opportunities tonies is a highly recognized brand #1 best selling German brand on amazon.com1 “Discover Imagination" "Licensee of the Year 2023" 360 campaign 1. Highest selling German brand that started on amazon.de and moved to a
Slide 18: tonies Originals 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 2022, our own franchise has achieved triple gold status 1,2 Ed Sheeran – tonies® – Billie Eilish – Plus Sleepy f
Slide 19: Loyal 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 From IPO in November 2021 Actuals Plan 703 37% CAGR (2019-23) > 480 354 361 250 258 172 188
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 Development of global revenue mix For the first time: International revenue > DACH revenue RoW DACH 15% DACH 98% 25% DACH EUR EUR 102m 46% 361m US 39% UK 2% 2019 20
Slide 21: Strong and highly predictable cohorts drive growth
Market Positioning Business model Brand Financial track-record Growth opportunities Strong and highly predictable cohorts drive growth (as of Dec 31, 2023) Cumulative Tonies figurines purchased per Toniebox Sales since launch in Q4 2016 25 Our average customer buys ~20 Tonies figurines within 4.5(1)
Slide 22: 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 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 (medium term targets from IPO) Financial targets overview IPO: Group 2019(HGB) 2020(IFRS) 2021(IFRS) 2022(IFRS) 2023 (IFRS) medium-term Gross margin before
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 growth opportunities DACH penetration International Product and platform expansion + expansion + expansion Future Expand own content offering (“Originals”) and extend depth/b
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 We were in the US even Since then, we have conquered all …and significantly increased our before market launch 50 states… market penetration January 2020 January 2021
Slide 26: We have proven product fit in the US
Market Positioning Business model Brand Financial track-record Growth opportunities We have proven product fit in the US Revenue growth (EURm) From IPO in November 2021 295 Growth rate Plan Actuals 191 > 200 260% CAGR (2020-23) 140 116 66 52 16 20 3 2020A 2021A 2022A 2023 2024E 2025E n.a. 566% 223%
Slide 27: Upwards and onwards for the US-market
Market Positioning Business model Brand Financial track-record Growth opportunities Upwards and onwards for the US-market (as of Dec 31, 2023) Continued strong cohorts Increase of retail channel as planned in k units in m units 1,500 >6,500 10 Opposite strategy 35% 35% retail partner 10.8m to DACH:
Slide 28: US wholesale expanding: proven potential to Target and Walmart
Market Positioning Business model Brand Financial track-record Growth opportunities US wholesale is expanding continuously: We have successfully proven our potential to Target and Walmart Exemplifying our successful retail evolution 2020 2021 2022 2023 2024 Online only Seasonal listings >1,000 store
Slide 29: Improving platform and product offering is key to 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 30: Results & Outlook 2024
Results & Outlook 2024 Business Update Financial Results FY 2023 Outlook 2024 & Key takeaways tonies® 30
Slide 31: Growing platform: commercial excellence proven again in Q4
Growing platform: In Q4, we have proven our ability to deliver commercial excellence yet again EUR >169m ~ 1bn impressions reached with our first ever nationwide 360 brand campaign >500k Tonieboxes EUR 67m sold within 10 days during Tonieboxes Black Friday week AND MANY MORE Top 10 Tonies in Q4 EUR
Slide 32: A truly international business: >50% revenue outside of DACH
A truly international business: >50% revenue outside of DACH Revenue (in EURm) We replicated our proven, profitable DACH blueprint in 3 selected core Share of DACH 361 markets (UK, US and FR) Share of International 258 46% It takes 3-4 years for a core market 188 to become profitable 61% 135 81% 94%
Slide 33: DACH is our mature market but still grows mid single digit
DACH is our mature market but still grows mid single digit Revenue by product category Tonieboxes Tonies Despite every second child owning a +5% Toniebox2, DACH still grows single revenue Others 25% growth YoY 22% digit, especially on Tonies and other 24% 30% products (profitability drivers) 72% 70%
Slide 34: Better unit economics: expansion of value lever own content
Better unit economics: Successful expansion of value lever “own content” Improvement in unit 2 out of top 5 global bestselling franchises1 New additions in economics through: are our own brands (IP) 2023 1. Gross margin Global quantities sold in 2023 improvement 1. 2. Licensing costs reduction 2. •
Slide 35: Category leadership: Constant innovation of product portfolio
Category leadership: Constant innovation of product portfolio AI stories from Santa Nightlight biggest test run to date with Bestselling new accessory >80,000 stories generated with >EUR 2m revenue – builds on successful franchise Sleepy friends Advent calendar Clever Tonies >169min avg. weekly Grea
Slide 36: Optimized working capital: Efficient inventory steering and financing
Optimized working capital: Efficient inventory steering and financing Typical seasonal inventory built-up • tonies has only “good“ inventory, i.e., no fresh or seasonal items that could go “bad” • Inventory is crucial for growth and healthy cohorts (launches and availability drive repurchases) • Wor
Slide 37: Results & Outlook 2024
Results & Outlook 2024 Business Update Financial Results FY 2023 Outlook 2024 & Key takeaways tonies® 37
Slide 38: Exponential revenue growth + profitability break-even
Exponential revenue growth + profitability break-even Revenue Exponential revenue growth exceeding guidance DACH: EUR 166m (+5%) of EUR 354m driven by international markets, esp. 54% EUR 361m NA1: EUR 140m (+114%) share int. NA, and all product categories business YoY: +40% ROW: EUR 55m (+59%) Adj.
Slide 39: P&L: Key numbers and margins (adjusted)
P&L: Key numbers and margins (adjusted) FY 2023 FY 2022 +/- EURm % of revenue EURm % of revenue EURm pp Revenue 360.9 100.0% 258.3 100.0% 102.7 - COGS -138.5 -38.4% -119.0 -46.1% -19.5 +7.7pp Gross profit 222.5 61.6% 139.3 53.9% 83.2 +7.7pp Licensing costs -36.3 -10.1% -31.7 -12.3% -4.7 +2.2pp Gross
Slide 40: Geography split: International revenue exceeds DACH for the first time
Geography split: International revenue exceeds revenue in the DACH region for the first time Revenue growth by region Revenue split FY 2022 360.9 International +40% FY 2023 DACH 258.3 2x 54% US business 39% +5% 360.9 +114% 258.3 +59% 61% 46% 158.3 165.9 140.4 65.6 54.7 34.4 Group DACH North America
Slide 41: Product split: Strong and well-balanced growth in all categories
Product split: Strong and well-balanced growth in all product categories Revenue growth by product category Revenue split by product category +40% FY 2022 360.9 Tonieboxes FY 2023 Tonies Accessories & Digital 258.3 33% +42% 34% 360.9 +35% 63% 258.3 225.5 62% 159.1 118.1 +45% 87.3 11.9 17.3 5% 5% Gro
Slide 42: Deep-dive Q4: Strongest tonies quarter ever
Deep-dive Q4: Strongest tonies quarter ever with more than EUR 169m revenue mainly driven by NA and ROW Revenue growth by region Revenue growth by product category +41% Q4 2022 +41% Q4 2022 Q4 2023 Q4 2023 Prior year baseline effect +47% +98% 169.0 169.0 +33% -4% 120.1 120.1 +61% 94.8 80.2 60.4 57.8
Slide 43: Segment reporting introduced: DACH with >16% EBITDA margin
Segment reporting introduced: DACH market already with >16% EBITDA margin Total North Rest of Corporate tonies DACH operating Reconciliation America World headquarters group1 in mEUR segments Revenue 165.9 140.4 54.7 360.9 0 0 360.9 Licensing costs -28.0 -13.1 -5.7 -46.8 6.0 4.5 -36.3 Contribution m
Slide 44: Adjusted EBITDA margin at upper end of guidance range
Adjusted EBITDA margin at upper end of guidance range Adjusted EBITDA margin bridge (in pp) 0.9% • COGS driven by price increases, lower inbound logistics costs (airfreight), favorable 2.2% -1.8% 1.5% -3.4% channel/regional/product mix • Licensing costs lower due to regional mix, 0.4% +4.0% successf
Slide 45: Improved cash position from higher profitability and working capital management
Improved Cash position resulting from higher profitability and more efficient working capital management Cash bridge (in EURm) -2.5 59.3 • Operating CF driven by EBITDA 8.1 improvement and only slightly -12.9 11.6 increased net working capital • Investing CF mainly for manufacturing tools, product-r
Slide 46: Ready for Free Cash Flow breakeven in 2024
After significant improvement in 2023 we are ready for Free Cash Flow breakeven in 2024 Free Cash Flow (FCF) (in EURm) • FCF substantially improved from EUR > 10 -88m in 2022 to EUR -5m in 2023 • Driven by a significantly higher cash flow from operating activities (higher -5 EBITDA, only slight incr
Slide 47: Results & Outlook 2024
Results & Outlook 2024 Business Update Financial Results FY 2023 Outlook 2024 & Key takeaways tonies® 47
Slide 48: FY 2023 – Once again, we have delivered on all promises
FY 2023 – Once again, we have delivered on all promises Outlook from IPO Results Guidance FY 2023 FY 2023 FY 2024 >4801 Group revenue (EURm) 354 361 (>33% YoY) North America >2001 108 140 revenue (EURm) (>42% YoY) Adjusted EBITDA na +4.0% 6-8% margin (%) Free cash flow (EURm) -5 >10 • Another year o
Slide 49: Four priorities ensure we deliver our plan
Four priorities ensure we deliver our plan I II III IV Excite customers with Grow our customer Leverage full Build a scalable great experiences base customer potential company tonies® 49
Slide 50: Exciting customers in a sustainable way: New products planned for 2024
I. Exciting customers in a sustainable way: New products & initiatives planned for 2024 Building a new Fueling the Entering a new Leading change in Extending franchise: collectors’ category: the category: educational A whole new hype: Literature and >200 Tonies with franchise world for musical Limit
Slide 51: Grow customer base: Australia & New Zealand launch
II. Grow customer base: Australia & New Zealand up for an amazing start New core market: We have our own local team on the ground >6,400 Tonieboxes already activated Distribution: Together with >250 POS secured for launch Our biggest launch portfolio ever tonies® 51
Slide 52: Key takeaways: FY 2023 was another record year
Key takeaways: FY 2023 was another record year for tonies I Outperformance of the plan, exponential growth in all markets (40% YoY) II Capturing the US-market opportunity is real (EUR 140m revenue (2x YoY)) III tonies is an EBITDA profitable, high-growth company (2.4% EBITDA margin) IV Segment r
Slide 53: Results Q1 2024
Results Q1 2024 tonies® 53
Slide 54: Q1 2024 performance at a glance
Q1 2024 performance at a glance! Results: Toniebox platform grows … fueling the highly predictable Revenue: EUR 78m (+20% YoY) exponentially every year… repeat purchases of Tonies Cumulative Tonieboxes sold Cumulative Tonies over customer lifetime (Q4’16-Q1’24 in #) DACH: EUR 40m (+2%) NA: EUR 28m (
Slide 55: Q1 2024: revenue growth of 20% in line with expectations
Q1 2024: revenue growth of 20% in line with expectations - high activations underline robust consumer sentiment Group revenue (EURm) • Revenue growth in line with expectations +20% • Strong Easter business across the different regions 78.3 • Revenue growth affected by: • a strong baseline effect (Q1
Slide 56: Newest format Clever Tonies improves our gross margin
We innovate based on our value levers: Our newest format “Clever Tonies” improves our gross margin Our value levers: Gross margin improvement: Clever Tonies have a higher margin due to lower design, production and licensing costs1 1. Internationalization 2. Gross margin expansion 3. Own content/IP 4
Slide 57: First tonies Podcast leverages data-based own content
Our first tonies Podcast leverages our data-based own content to drive engagement Our value levers: Our successful, insights-based own content: Edutainment for kids aged 5 years and above 1. Internationalization Toniebox activity across ARIA bronze weekdays and hours (schematic) medal winner 2. Gros
Slide 58: Rest of world: International markets drive growth
Rest of world: International markets drive growth - we have traction in all our regions Significant increase in retail footprint 2nd biggest player in category1 in mature market in just two years >100k >1m >850k >8.4m Tonieboxes sold Tonies sold since Tonieboxes sold Tonies sold since since market e
Slide 59: Strong performance at Walmart sets stage for expansion
Strong performance at Walmart sets stage for expansion with additional stores and Tonies assortment in 2024 Additional POS Additional shelf space with +350 new stores in H2 2024 in 500 stores in Q3 2024 1,950 +22% increase >30% increase in Walmart POS in Tonies assortment 1,600 2023 2024 Note: numbe
Slide 60: tonies has a strong competitive shield
tonies has a strong competitive shield I. User experience IV. Seasonal build-up • Simple and intuitive design for the usage of kids • Head start of 8 Christmas holiday seasons • Unrivalled stickiness of the product: • Cumulated number of Tonieboxes sold • 281 minutes average weekly playtime1 by quar
Slide 61: Q1 2024: Revenue growth driven by international markets
Q1 2024: Revenue growth driven by international markets Revenue growth by region Revenue split Q1 2023 78.3 International +20% Q1 2024 DACH 65.1 49% 40% +2% 78.3 +47% 65.1 60% 51% 39.2 40.2 +49% 27.9 19.0 6.9 10.3 Group DACH North America Rest of World Q1 2023 Q1 2024 tonies® 61
Slide 62: Q1 2024: More than 70% of sales generated with Tonies
Q1 2024: More than 70% of sales generated with Tonies Revenue growth by product category Revenue split by product category +20% Q1 2023 78.3 Tonieboxes Q1 2024 Tonies 19% Accessories & Digital 65.1 +16% 20%% 78.3 73% 65.1 56.9 75% +21% 49.2 +83% 12.5 15.1 3.5 6.4 5% 8% Group Tonieboxes Tonies Access
Slide 63: Sustainability
Sustainability tonies® 63
Slide 64: 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 65: 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 66: Sustainability goals: 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 67: 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 68: Appendix
APPENDIX tonies® 68
Slide 69: World's largest interactive audio platform & creator of a multi-billion Euro category
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 70: Ecosystem tailored to 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 71: 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® 71
Slide 72: 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