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hello everyone and welcome to the tony's q1 2025 presentation my name is manuel bösing and i'm from the investor relations team today we will walk you through our presentation and afterwards we invite you to submit your questions via the zoom q a function on the call we have our ceo tobias van and our cfo dr jan middloff and now over to you tobias thanks manuel and a warm welcome also from my side

As usual, we'll start with what underpins everything that we do, our global platform. Tony's is the clear global leader in audio entertainment for children. And the data shows just how deeply it resonates. As of Q1 2025, over 9.3 million Tony boxes and 119 million Tony's have been sold and activated across more than 100 countries. This alone speaks volumes about our global reach. Even more meaningful is the depth of engagement, the unparalleled stickiness that we are achieving. Kids spend on average around 270 minutes per week with their Tony box. That's 270 minutes of creativity, imagination and storytelling. And very important to me, 270 minutes less on screens. It's this kind of meaningful usage that drives our mission. And it's also reflected in our exceptionally high net promoter score of 77 in the US. Just for reference, this puts us ahead of household names like Apple, Amazon, and Netflix. For us, that's more than just a number. It's a powerful reflection of the trust, emotional connection, and loyalty families have developed towards Tony's. It shows that parents don't just like our products, they actively recommend them to others because they value the role of our products in their everyday life. So let's take a look at how we translated this into performance in the first quarter of 2025. I want to preface this with a short remark. Given our successful and continuously growing international expansion, the impact of currency fluctuations, especially the US dollar, is growing. Going forward, we will report our growth as well as our financial guidance at constant currencies. This will enable us to provide a clearer view of our business performance and comparability across reporting periods. Overall, the first quarter of 2025 was a very strong start into the year. Thanks to the very good momentum across our international markets, we were able to grow revenue even stronger than in the previous year period. We recorded group revenue of 97 million euro, reflecting a currency-adjusted increase of 22% year-over-year. Continuing our growth path is good on its own. Accelerating it compared to Q1 last year is even more remarkable. The fact that we delivered such strong numbers speak to the underlying health and resilience of our business. Looking at our performance by region, the picture is encouraging. DACH remains stable at a high level with a slight decline of minus 3% in constant currency. This is in line with expectations given the early ordering from retail partners in Q4 and the delayed Easter impact. North America continued its dynamic growth path delivering an impressive 37% increase, further cementing its position as our largest market and a key driver of our overall performance. And the rest of the world was our fastest growing segment with 79% of growth and notable 19 million euro. This was led by strong contributions from the UK, France and Australia and New Zealand. Given the continued uncertainty around U.S. tariffs, we continue to refrain from issuing a full year guidance at this point. But this start into the year reinforces our confidence. Tony's is on track and well positioned to continue our profitable growth journey in 2025. What you see on the right-hand side of the slide is further evidence of our platform strength. We sold an additional 262,000 Tony boxes in the first quarter, continuing the exponential expansion of the Tony box platform. On top, we sold over 7 million Tonys in this quarter. This reflects the subscription-like behavior we observe across our customer base with high activation rates and repeat purchases driving lifetime value across markets. Let's now take a look at the three focus areas that shaped our first quarter. We'll go into more detail on each of them in just a moment. Starting with international expansion, we continued to build a strong momentum across markets from milestone achievement in the UK and France to accelerating our rollout in Australia and New Zealand. And firmly establishing Tony's as one of the top preschool toys in the US. On the product side, the Tony's category showed strong growth with our original content playing an increasingly central role. Standout IPs like Sleepy Friends continue to perform exceptionally well. And finally, our response to the US tariff situation. We've taken proactive steps to stay agile, including flexible production planning and price adjustments. I'll walk you through our response to this evolving environment in just a moment. Let's start with a closer look at our international expansion. All of our markets that we cluster as rest of world, so beyond DACH and North America, continue to develop strongly. Both the UK and France are great examples of how our German blueprint model translates internationally. Starting from D to C distribution, we are scaling our wholesale footprint with strong local retail partners, making our brand more visible and our product more accessible. As of Q1, we've now sold over 1 million Tony boxes and more than 10 million Tonys in the UK alone. And we continue to deliver exponential growth. While an above average D2C revenue share positively impacts our profitability, we are growing our retail footprint, a key lever to scale reach, drive visibility and grow our customer base beyond our own channels. By the end of 2024, we increased point of sales in the UK by more than 40% to well over 2,000, including new listings at Sainsbury's, JoJo, and The Entertainer. In France, remarkably, we've reached the pole position just three years after launch, a strong sign of how quickly we can scale even in the most competitive markets. By Q1, we've sold over 300,000 Tony boxes and around 3 million tokens. The 2024 point of sale growth of 96% was a record performance. Major retail partners like La Grande Recre and Leclerc are helping to drive visibility and reach. Both markets show how well our go-to-market strategy translates internationally and provide a strong foundation for further growth. Let's now turn to Australia and New Zealand. It feels like we've arrived a long time ago, but it remains our most recent market launch and a particularly remarkable success story that continues to develop even better than expected. Launched in August 2024, ANZ was the most successful market entry in Tony's history, showing just how well our model also works in completely new regions. This strong start hasn't gone unnoticed. Within a few months after launch, Tony's was awarded the Australian product of the year 2024. Outstanding. In addition, we were also recognized with the product of the year in the infant and preschool category, a powerful signal of consumer endorsement and early brand relevance in that region. Having sold 45,000 Tony boxes and over 300,000 Tonys, our platform has now reached a critical scale to boost further growth in Australia and New Zealand. To support this high demand for our products, we've also significantly expanded our regional Tonys assortment. What was already the largest launch assortment ever is now more than twice as big, giving local consumers access to a broader and ever-growing portfolio of beloved characters and stories. At the same time as everywhere, we are rapidly scaling our retail footprint. You can see on the right-hand side that the number of point of sales has increased by 71% since the launch in August with key partners such as Big W, Baby Bunting, and just recently Target playing a central role in expanding visibility and distribution. And now to the U.S., Our rapid growth is not just visible in our own revenue or point of sale data. Tony's is now also officially one of the country's top preschool toys, both with our brand and as a corporate manufacturer. Looking at absolute point of sale sales, we have already achieved a strong ranking as the sixth largest property and corporate manufacturer in 2024. Tony's really has firmly arrived in the stores as well as in the minds and hearts of families with preschool children in the US. And now we are knocking on the door of the top five brands. We are confident to further climb the ranks because of another ranking that is even more noteworthy and confidence instilling, and that is our growth. We claimed number two positions in year-over-year growth for brands and corporate manufacturers of preschool toys in 2024. That means Tony's outgrew all but one competitor in both categories in the entire United States. Given our revenue growth, our profitability, and our wholesale expansion, we know about our fantastic momentum in the US. These rankings confirm our numbers. They reflect the combined strength of our product market fit our retail footprint and execution, and our customer experience strategy. Now, this official brand recognition with such a strong market position is the next clear signal of the progress on our journey towards shaping Tony's into a true global icon. Let's now turn to recent developments in one of our core product categories, our Tony's figurines. I just mentioned that Easter unusually shifted towards Q2 this year. I repeat this as particularly Tony's figurines experience a sales boost from Easter festivities. Still, the Tony's category delivered a 26% growth year over year, equivalent to almost 17 million euros in additional revenues. This performance underlines the strength and resilience of our content-driven model with strong licensed characters and stories, as you can see in our bestseller list, but in which own content becomes increasingly more important. In Q1 alone, we launched 65 new Tonys. More than 40% of these were original own content IPs. We're increasingly creating value, not just through licensing, but through our proprietary storytelling and creative development. We also continued to expand our pocket Tony's portfolio, a format that is proving particularly relevant for children aged above five years. With now more than 95 SKUs live globally, Pocketonis are evolving into a standalone growth lever with strong engagement and margin contribution. Given their outstanding success in the DACH region, they are also the best example for how we create growth through innovation, even in more penetrated and developed markets. Talking about the strength of our content strategy and doubling down on own content, one series in particular stands out, and that's our Sleepy Friends. Our Sleepy Friends were originally designed based on usage data that indicated that the Tony box is popular as a bedtime companion. We leveraged that into creating a series of soothing stories, sounds, and accessories that help families ease into the night. And the response has been fantastic. Sleepy Friends is the fourth best performing IP in our entire global portfolio. Within the sleep category specifically, it is our top performing IP setting the benchmark for both usage and satisfaction. With an average rating of 4.8 out of five stars, the series resonates deeply with families. And most importantly, 90% of surveyed parents say it improves the child's bedtime routine, which is exactly the kind of real-life value we aim to create. That's why we continuously look for how to build on that success. To celebrate World Sleep Day in March, we, for example, launched a dedicated global campaign and introduced a new collection of sleepy friends, the Sleepy Ocean Tonys. The portfolio combines storytelling with atmosphere and cross-category sales potential. It now includes seven Tonys and three nightlight Tonys, which are of higher value, as you know, and one of our most successful accessories. The success of Sleepy Friends is a great example of how our own IP can grow into a full brand ecosystem, emotionally meaningful for families and commercially scalable across regions and formats. And now let's move to a topic that has kept us and probably you as well, particularly busy over the last days and weeks, the US tariffs. As you can see here on the screen, the environment has been highly volatile and challenging for us. But we have the right toolbox to come out even stronger. Sourcing options, pricing power, financial flexibility, and cost optimization. Today, we'll take a closer look at the first two elements of our toolbox, sourcing and pricing. But before we dive deeper into our strategic initiatives to mitigate these effects from tariffs, I would like to quickly show where we currently stand. China currently at 30%, tariffs down from peak levels of 145%. Vietnam currently at 10%, down from 46% announced on Liberation Day. Tunisia at 10%, down from 28%. and Bosnia also at 10% and down from 35%. This clearly demonstrates how dynamic and uncertain the situation has been over the last weeks for all of us. To address this uncertainty, we've taken deliberate and proactive steps to ensure a maximum of operational flexibility. Rather than waiting for policy clarity, we focused on creating optionality in our production setup. This means building the ability to adapt quickly and shift production volumes depending on how the situation evolves without compromising availability or cost efficiency. Here's how we've approached it. For Tony boxes, we now have Vietnam as an alternative. Sourcing of Tony boxes for the US market is now fully feasible as we started producing in Vietnam shortly before tariffs were even introduced. We're actively expanding existing production footprints for Tony's figurines outside of China, including Tunisia and Bosnia. We are currently also working with our suppliers to ramp up capacity at these locations. Next, we're diversifying upstream with materials now sourced from a much, much broader range of countries beyond China to reduce input dependency. So in all of this, we are balancing more than just tariffs. We also factor in lead times, logistic costs, and production scalability to ensure we remain agile without disrupting service quality or profitability. This diversified approach puts us in a strong position not only to mitigate tariff risks, but also to strengthen the long term resilience of our supply chain. And As a natural next step alongside our supply chain measures, we also reviewed our pricing structure to ensure we can partially offset the financial impact of tariffs while maintaining fairness and clarity for our consumers. So since May 1st, we've introduced a new simplified pricing model with now three instead of five price points for figurines in the U.S., Group 1 Tonys are now priced at $19.99, an increase of up to $2 compared to the previous range of $17.99 to $19.99. This is a shift in the pricing structure with significant impact enabling us to manage the current environment. Group 2 Tonys remain unchanged at $14.99. And creative Tony's, which make up a relatively small fraction of Tony's sales in the US, were reduced to $9.90. So, where appropriate, we continue to offer selected promotions, for example, to seize the maximum potential of high-impact commercial moments. This move helps to partially mitigate the tariff impact while ensuring our pricing stays transparent and easy to understand. Importantly, while we've adjusted some prices, our high-quality figurine standards remain completely unchanged. We remain fully committed to delivering a premium experience, both in terms of product and content. We communicated the change proactively at the end of April through all relevant customer channels in the U.S., It's important to stress these adjustments are exclusively linked to the current tariff situation. We do not aim to benefit from the situation. Should tariffs be lifted, we will immediately revisit and readjust the pricing structure accordingly. And now over to our CFO Jan for the final say.

Good morning, everyone. Q1, a good start, as Tobias said. I also want to just call out that in Q1, we only report on top lines of revenue. But I felt it was helpful that we maybe also just briefly recap on our full year results that we published about four weeks ago, which showed the power of our business model. And we have delivered an on-plan performance. We have continued successful execution of our international expansion path. You can see it's 62% of international business. And I think what has been truly remarkable is the double digit growth that we have seen in all of our segments in full year 2024. Here on top box left right. But what has also been a very fundamental and substantially important step for us is proving that our profitability journey continues. We have added 4.6 percentage points on our EBITDA margin. That's clean and reported. And that is, I think, a substantial step forward, which has led us to breaking even on free cash flow. 33 million euros of free cash flow is a very, very strong improvement year over year, has put us in an excellent position from a cash perspective, 107 million euros cash available on account and through working capital lines. And in addition, Following our full year results, we've also upgraded our SIN loan facility, so our ability to finance our working capital. And from a financial perspective, that, of course, gives me a lot of confidence that we're in a good position to manage also headwinds that could arise from potentially additional costs out of a tariff scenario. And maybe you want to just round up and show you that also our blueprint in DACH, that is where what we're rolling out internationally is continuing to show growth, both on top line, but also on profitability. And I've brought with me also as a recap, our segment reporting from our full year results. And I really want to emphasize that We are building on a resilient, profitable business model. You can see it here in the dark region, which shows 23% EBITDA margin, which has improved substantially versus prior year. You also see that our North American business and our rest of world business has turned profitable to end of last year. And therefore, I believe Tony's is in a very good position to make this a good year for Tony's, despite all the uncertainties that still prevail. around tariff scenarios for our business. But now let's look a bit more into Q1. And Tobias has already told you that it's the first time we are really reporting currency neutral. And I think the fluctuation of FX requires this. And it's been a very good year. I would say with a stronger start into the year than last year, we have seen a growth towards 97 million euros in net revenue. Just as a small fun fact, this is almost the full year revenue of our 2019 year. business as Tony's. So I think just for the team entirely, that's been kind of a milestone everyone was really excited about. Tobias also spoke to the development in DACH, which is completely anticipated. Just as a reminder, we had seen over 20% growth in Q4 year over year in the DACH region. And that came from just typical baseline effects that we always have at Tony's. Those of you who track us for longer hear me talking a lot about not comparing us too much quarter over quarter and comparing how was it because key dates such as Christmas, Chinese New Year, Easter business and other effects can actually really shift comparison. But you can imagine that this is actually a pretty healthy level because we have capped the overall level. Essentially, there's a million euros difference only. And if you then consider a strong Q4, you can imagine that we probably have seen some ordering falling into Q4 versus Q1 on a year-on-year comparison and hence. We are very, very happy with the development in that and consider it to be super healthy. North America growing 37% on a constant currency basis. And we also tried to show you what the currency adjusted rate would have been. So you see the effects are coming through. Rest of world clearly picking up the pace and that leads to a continued evolution of our international business share. That is our strategy and it's working. And if you would now add also a Q1 2023, you would see that essentially we're almost adding 10 percentage points year over year over year on our international expansion path. And that clearly shows you that our strategy works. If you look on the comparison by product, which we also provide to you, you can see that we have seen a pickup in our Tony's growth. Tony boxes are growing 8%. In there are some of those effects you have seen also on the baseline effect. If that, for example, was a little bit earlier or you have a retail entry, I wouldn't over-interpret it because if you look at prior year, you see a little bit more growth. It's absolutely as expected. But of course, we're also excited to see very strong Tony sales here. H1 is typically Tony's time. It's when customers get on their Christmas purchases of boxes. Additionally, Tony's because children love it so much. Tobias talked about the net promoter score. These are the facts you see here at work. And hence, we are very, very happy with the product mix. Also adding that the accessories business going double digit in Q1 is obviously encouraging. With this, I'm done already. It's a Q1 only, and I'll let Tobias take me through the upload for 2025.