Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Tonies Se Reg A — FY 2023 Earnings Presentation
36 slides from Tonies Se Class A's earnings presentation, Apr 11, 2024
Slide 1: Earnings Presentation FY 2023
Earnings Presentation FY 2023 tonies SE | April 11, 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: Agenda
tonies SE | Earnings Presentation Agenda Welcome to tonies Business Update FY 2023 Financial Results FY 2023 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 and it’s just the beginning! Density Toniebox activations low high Our products enrich the 6.8m Tonieboxes and Families in >100 life of ~50m people1 82m Tonies sold since countries have Q4 2016 activate
Slide 6: 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 1 experience device “Toniebox” for children – unparalleled stickiness 268 min average weekly playtime >70% active of all Tonieboxes ever sold Largest g
Slide 7: 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 8: Business Update
Business Update tonies® 8
Slide 9: Growing platform: commercial excellence 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 10: 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 11: 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 12: Meanwhile, US is just getting started
Meanwhile, US is just getting started … 1.5 million #1 Tonieboxes best selling German sold since market entry brand on amazon.com1 1. Highest selling German brand that started on amazon.de and moved to amazon.com via Amazon Global Selling program tonies® 12
Slide 13: US wholesale is expanding continuously
US wholesale is expanding continuously: We have successfully proven our potential to Target and Walmart Revenue share Wholesale vs. D2C1 Wholesale D2C Exemplifying our successful retail evolution 35% 35% 2020 2021 2022 2023 2024 Seasonal >1,000 >1,500 >1,750 stores & Online listings in stores stores
Slide 14: Better unit economics: expansion of 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 15: 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 16: Optimized working capital: 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 17: Financial Results FY 2023
Financial Results FY 2023 tonies® 17
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Outlook 2024
Outlook 2024 tonies® 27
Slide 28: Guidance FY 2024
Guidance FY 20241: Continued significant revenue growth and further improvement in profitability Results Guidance FY 2023 FY 2024 >4801 Group revenue (EURm) 361 (>33% YoY) >2001 North America revenue (EURm) 140 (>42% YoY) Adjusted EBITDA margin (%) +4.0% 6-8% Free cash flow (EURm) -5 >10 • Another y
Slide 29: 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® 29
Slide 30: Exciting customers: New products and initiatives 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 31: Stay tuned for 2025…
Stay tuned for 2025… tonies® 31
Slide 32: Grow customer base: Australia & New Zealand
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® 32
Slide 33: Q&A
Q&A tonies® 33
Slide 34: 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 35: Meet us on conferences and roadshows
Meet us on conferences and roadshows Results Conference Roadshow MAR 7: Berenberg EU Opportunities Conference MAR 19: Jefferies Pan-European Mid-Cap Conference MAR 19: Jefferies Pan-European Mid-Cap Conference H1 APR 11: FY 2023 APR 15 (FRA), 16 (LON) & 23 (PAR) MAY 15: Q1 2024 MAY 21: Berenberg Man
Slide 36: Investor Relations Contact
Investor Relations Contact Investor Relations Team Contact ir@tonies.com Investor Relations Contact Manuel Bösing Head of Investor Relations Phone: +4915157846012 Mail: manuel.boesing@tonies.com tonies® 36