Tonies : Inside Information / Ad Hoc Information Earnings Presentation FY 2023

Earnings Presentation FY 2023

tonies SE | April 11, 2024

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-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the tonies SE. They are not historical or current facts, nor are they guarantees of future performance.

By their nature, forward-looking statements involve several risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described in this document. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable mandatory law or regulation, the tonies SE expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document to reflect any change in the tonies SE's expectations with regard thereto or any change in events, conditions or circumstances on which any such forward-looking statements are based. Neither tonies SE nor any other person accepts any responsibility for the accuracy of the opinions expressed in this document or the underlying assumptions.

This presentation includes key performance indicators (KPI), including adjusted EBITDA margin, contribution margin and free cash flow which are not measures of liquidity or financial performance under International Financial Reporting Standards (IFRS). Adjusted EBITDA is calculated from EBITDA by adjusting for various effects to create a metric for the underlying profitability of the business. EBITDA was historically adjusted for the following non-recurring effects: (i) effects of share-based compensation, (ii) own software development (as this is not currently capitalized), (iii) special projects and bonuses, and (iv) costs and effects related to tonies IPO / business combination. The adjusted EBITDA margin is defined as adjusted EBITDA in percent of revenue. Contribution margin is the contribution profit in percent of revenue. The contribution profit is calculated from the gross profit after licensing costs less various revenue- related costs that are together aggregated as fulfilment (mostly freight and logistics costs, fees for online marketplaces, costs of payments and certain variable sales costs). Contribution profit and contribution margin show how much is available for coverage of fixed costs such as personnel, other expenses and marketing. Free cash flow is defined as the sum of cash flow from operating activities and cash flow from investing activities and represents the Group's cash efficiency and enables an assessment of profitability.

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Who you have on the call today

Tobias Wann	Dr. Jan Middelhoff
CEO	CFO

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tonies SE | Earnings Presentation Agenda

Welcome to tonies

Business Update FY 2023

Financial Results FY 2023

Outlook 2024

Q&A

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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 life of ~50m people1

6.8m Tonieboxes and

82m Tonies sold since

Q4 2016

Families in >100

countries have

activated a Toniebox

Note: All figures as per FY 2023 / December 2023 | 1 50m People = "extended family" affected by a Toniebox (assuming ~8 consumers/customers per Toniebox (e.g., the child, family & friends))

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Business model: We create unparalleled value around a unique product and brand

1	Global category creator and leader - offering a smart connected audio
experience device "Toniebox" for children - unparalleled stickiness
2	Largest global platform - proven, highly-profitable business model in
DACH replicated internationally in US, UK and FR (product-market fit!)
3	Profitable repeat purchases model with subscription like cohorts -
superior CLV1 through purchases of high-margin Tonies figurines and
	other products
4	Clear value levers: (1) Internationalization, (2) Gross margin expansion,
(3) Own content/IP, (4) Product/channel Mix, (5) Operating leverage
5	True love brand offering all blockbuster IP and proprietary own content
- highly-vocal and attached fanbase (WOM2 effects)

268 min		>70% active
average weekly playtime		of all Tonieboxes ever sold

DACH >50%		>100 countries
penetration rate		with Tonieboxes activated

~20 Tonies		EUR ~290
per Toniebox after 4.5 years		customer lifetime value

+20ppts		DACH >16%
contribution margin since 2019		EBITDA margin already

NPS >70		2 out of top 5
measured daily in US		franchises are our own IP

Since our IPO in 2021 we have exceeded all promises made … and we are only getting started!

Note: Company data as of FY 2023 / December 2023 | 1 Customer lifetime value | 2 Word of mouth

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FY 2023 performance at a glance: Another record year!

Revenue:

EUR 361m

YoY: +40%

DACH: EUR 166m (+5%)	54%
NA: EUR 140m (+ 114%)
share int.
ROW: EUR 55m (+59%)	business

Adj. EBITDA1 /EBITDA margin:

+4.0% / +2.4%	>35%
YoY: + 6.4pp / +15.9pp	contribution
margin

Toniebox platform grows exponentially every year…

Cumulative Tonieboxes sold

(Q4'16-Q4'23 in #)

>70%

of all Tonieboxes

sold still active

• fueling the highly predictable repeat purchases of Tonies

Cumulative Tonies over customer lifetime

Subscription-like

cohorts

~20

Tonies per

Toniebox after 4.5

years

Free cash flow:	'16	2017 2018 2019 2020 2021 2022 2023	Year 1	Year 2 Year 3 Year 4 Year 5 Year 6
EUR -5m	74m	+1.9m Tonieboxes		+23.4m Tonies
YoY: +83m	cash	sold in 2023		sold in 2023
available2
Note: Company data as of FY2023 / December 2023	| 1 Only adjusted for share-based compensation | 2 At December 31, 2023, including unused credit line of EUR 15m	tonies® 7

Business Update

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Growing platform: In Q4, we have proven our ability to deliver commercial excellence yet again

EUR >169m

EUR 67m

Tonieboxes

EUR 95m

Tonies

EUR 7m

~ 1bn

impressions reached with our first ever

nationwide 360 brand campaign

>500k Tonieboxes

sold within 10 days during

Black Friday week

AND MANY MORE

Top 10 Tonies in Q4

Others

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A truly international business: >50% revenue outside of DACH

Revenue (in EURm)

		Share of DACH			361
		Share of International
						258	46%
					188	61%
135
					81%		54%
94%
	39%
					19%
			6%
				2021	2022	2023
2020

FLAGS

REPRESENT

MARKET

LAUNCH1

We replicated our proven, profitable DACH blueprint in 3 selected core markets (UK, US and FR)

It takes 3-4years for a core market to become profitable

In total, we ship to 25 countries, incl. 17 countries catered to by our European Webshop

1 UK officially launched in 2018 with significant scale up in 2020

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