Tonies Se Class A · XETR:TNIE
Tonies Se Class A — Investor Presentation (November 2024)
53 slides from Tonies Se Class A's investor presentation, November 2024
Slide 1: Company Presentation
Company Presentation tonies SE | November 2024
Slide 2: Content
Content Introduction to tonies SE Q3 Results & Outlook 2024 Sustainability Appendix tonies® 2
Slide 3: Introduction to tonies SE
Introduction to tonies SE tonies® 3
Slide 4: 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 low high We are the #1 audio platform for kids globally We have unparalleled stickiness Families in >100 countries >7.8 million >95 million ~270 min NPS >70 have activate
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 >270 min >70% 1 experience device “Toniebox” for children – unparalleled stickiness average weekly playtime in H1 24 average monthly active users in H1
Slide 6: Q3 2024 performance at a glance
Q3 2024 performance at a glance Revenue Q3 Toniebox platform grows … fueling the highly predictable EUR 95m +26% YoY exponentially every year… repeat purchases of Tonies revenue growth Cumulative Tonieboxes sold Cumulative Tonies over customer lifetime YoY: +21% in 9M 2024 (Q4’16-Q3’24 in #) DACH: E
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 with 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 and own productions of Tonies figurines
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: 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: Loyal, 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 From IPO in November 2021 Actuals Plan 703 37% CAGR (2019-23) > 480 354 361 250 258 172 188
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: US wholesale expanding: 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 28: Improving platform and product offering to grow our fanbase
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: Q3 Results & Outlook 2024
Q3 Results & Outlook 2024 Business Highlights Q3 Results 2024 Outlook 2024 & Key takeaways tonies® 29
Slide 30: Business highlights for future success, delivered in Q3
Business highlights for future success, delivered in Q3 Our value levers: Internationalization Gross margin expansion Drove internationalization Continued to build a love Expanded target group base with successful US wholesale brand close to the with Book Tonies and DTC expansion consumer introducti
Slide 31: Driving international growth with strong US momentum
Driving international growth with strong US momentum Doubling shelf space, >2x growth at major US tripling sales e-commerce events 2023 2024 2023-2024 >2x >2x Tonieboxes Tonies sold1 sold1 >2x ~3x Tonieboxes Tonies sold1 sold1 1 Compared to number of units sold during the same commercial days in 202
Slide 32: Building a love brand close to the consumer
Building a love brand close to the consumer Education Partnerships Marketing Campaigns New Clever Tonies concept with most popular children education TV host in DACH Family-focused partnership with Minnesota Timberwolves and Lynx promoting screen-free, Tailored children imaginative play experience w
Slide 33: Introducing Book Tonies
Introducing Book Tonies Full-length audiobook Tonies of favorite Instantly sparking enthusiastic customer bestsellers reactions Building on the Clever Tonies’ success story Age group expansion targeting older kids 5+ Margin expansion through simplified design Faster launches with standardized fo
Slide 34: Introducing Lalalinos – the next big hero franchise
Introducing Lalalinos – The next big hero franchise Scout Cosmo Akio Franchise strategy & world designed to go beyond the Tonie into diverse category and format portfolio Emphasis on children's development and social emotional learning through rhythm, singing & dancing Launch: DACH (Nov 2024); US
Slide 35: Welcoming Ginny – our new CXO
Welcoming Ginny – our new CXO to strengthen tonies’ brand profile • Appointed Chief Experience Officer (CXO) at tonies on Sept 2, 2024 • Oversees Brand, Product, and Content for cohesive strategy • Role aims to elevate tonies as a global icon in screen-free kids' entertainment • 20+ years in marketi
Slide 36: Q3 Results & Outlook 2024
Q3 Results & Outlook 2024 Business Update Q3 Results 2024 Outlook 2024 & Key takeaways tonies® 36
Slide 37: 9M 2024 revenue by region
9M 2024 revenue by region: growing global presence through successful international expansion Revenue by region (in EURm) Revenue split by region 9M 2023 242.1 International +26% 9M 2024 DACH 191.9 53% 44% +6% 242.1 +53% 191.9 +51% 56% 47% 108.1 114.3 92.1 60.1 23.7 35.7 Group DACH North America Res
Slide 38: 9M 2024 revenue by product category
9M 2024 revenue by product category: growth driven by highly profitable Tonies figurines Revenue by product category (in EURm) Revenue split by product category +26% 9M 2023 242.1 Tonieboxes 9M 2024 Tonies Accessories & Digital 24% 191.9 +33% 27% 242.1 72% 191.9 +15% 173.4 68% 130.7 50.9 58.3 0% 10.
Slide 39: Q3 2024 revenue: growth from international markets and Tonies
Q3 2024 revenue: growth driven by international markets and Tonies figurines Revenue by region (in EURm) Revenue by product category (in EURm) +21% Q3 2023 +21% Q3 2023 Q3 2024 Q3 2024 +38% Phasing effect after strong +1% growth in H1 95.3 +40% 95.3 Revenue reclassification 78.8 78.8 effect -2% 66.6
Slide 40: Q3 Results & Outlook 2024
Q3 Results & Outlook 2024 Business Update Q3 Results 2024 Outlook 2024 & Key takeaways tonies® 40
Slide 41: Q4 is always the most important quarter
Q4 is always the most important quarter – we know how to scale We have built and expanded strong wholesale Revenue Share (in percent) partnerships Q1 - Q3 Q4 We have proven excellence in D2C channels and key commercial moments 43% 46% 47% 50% Our supply chain is ready with inventory in market
Slide 42: Wholesale footprint in international markets continues to grow
Our wholesale footprint in international markets continues to grow +24% Successful wholesale expansion 8,290 6,663 with existing and new partners POS POS continues Dec 23 Dec 24e +52% 2,350 Highest-ever absolute y-o-y 1,550 POS POS POS growth in a single market Dec 23 Dec 24e +39% 886 High paced who
Slide 43: Guidance FY 2024: on track for revenue growth and profitability
Guidance FY 20241: On track to deliver on revenue growth and profitability targets with a structurally strong Q4 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
Slide 44: Business priorities for Q4
Business priorities for Q4 Our value levers: Internationalization Gross margin expansion Deliver commercial moments Ensure success of new Book around Black Friday/Cyber Tonies format Monday and Christmas Own content/IP Product/channel mix Prepare for what’s Operating leverage coming next Deliver Nor
Slide 45: Key takeaways
Key takeaways: I International expansion successfully continuing, with US execution in full swing II Boosting market leadership with an expanded product lineup, featuring fresh content and reaching a broader audience III Supply chain ready for Q4 — we have all planned inventory in markets! IV Accele
Slide 46: Sustainability
Sustainability tonies® 46
Slide 47: 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 48: 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 49: 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 50: 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 51: Appendix
APPENDIX tonies® 51
Slide 52: 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: [email protected] tonies® 52
Slide 53: 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