Tonies Se Reg A

recording in progress good morning and good afternoon to from wherever you are joining us virtually today and welcome to the tony's earnings call for the first quarter 2026 highlighting once again a great start to the year with me today are our ceo tobias van and cfo hans mueller as always tobias will walk you Through last quarter's business highlights, Hans-Jörg will walk you through the financials before we finish with the confirmation of our full year 2026 guidance. After the presentation, we will continue with the Q&A session and we invite you to submit your written questions through the Q&A function during the presentation already. We have an exciting story to share with you today. So without further ado, I will hand the floor over to Tobias to kick things off.

Thank you, Moritz. A warm welcome from me as well. Let me start where we always start, with the platform we've built. Because that platform keeps getting stronger and stronger. We've sold around 12.2 million Tony boxes, activated in more than 100 countries, and there are more than 165 million Tonys out there. If every Tony were a person, they would form one of the eight most populous countries on the planet. This is the world's leading platform for kids' audio. And this platform grows quarter after quarter, year after year. Every Tony Box you sell is a gateway to a trusted relationship that lasts for years to come. A product that genuinely earns its place in family life almost five hours a week, every single day. The first quarter is usually our smallest by revenue, but Q1 tells us a lot about the state of our business. Q1 2026 tells us that the momentum we built in 25 is carrying forward. In the first three months of 2026, we grew revenue by 35% in constant currency to 126 million euros. Every single market delivered high double-digit growth. Dach grew 28%. North America grew 34%. The rest of the world grew 53%. As our platform grows, our install base grows, we lock in future revenue. With a strong start to the year, we are fully on track to deliver our full year guidance. 2026 is shaping up to be another year of strong, profitable growth for Tony's. We've had a busy and productive first quarter. Let's have a look at what stood out. Q1 was a quarter of strong execution across all business. In North America, we continued our remarkable growth trajectory. In DACH, we showed once again that our most established market still has significant room to expand. And in rest of the world, We are building on the same momentum we have seen in our bigger markets not too long ago. We continue to grow through partnerships that open up new territory. One standout example, a collaboration with the German Professional Football League. Our DFL game adds a new genre to the Tony Play roster, sport. In addition, our products are being recognized by the industry's most respected voices, including not one, but two recent Red Dot Awards. One for the Tony Box, the other for Tony Play. On top of this, we've further strengthened our leadership team. A month ago, Mark McColgan joined us as General Manager North America. He previously served as General Manager of Mattel U.S., one of the biggest roles in our industry. Mark joining Tony's shows that you're competing at the highest level and underscores our ambition of becoming a global icon. Our strong start to the year goes beyond business success because what's behind these numbers are countless moments of joy in millions of family households around the globe. At Tony's, we spark magic moments for our little listeners. I only need one Tony figurine to prove this. This incredibly cute puppy can not only sing and rhyme. He also has sparked more than 200 million minutes of joy in Q1 alone. That is more than four years of listening time every single day. from January 1st to March 31st. I know these numbers are hard to grasp, but they are all the more rewarding when you imagine what they mean for children and parents alike. Peace of mind. Let's return to more tangible business highlights starting in North America. Only a year ago, we were the number six company in US preschool toys. In Q1 2026, we've risen to number two behind only Paw Patrol. And not only that, no other company has added more revenue year over year in preschool toys. We are the top gaining property and manufacturer in the category. From six to two within 12 months, that's a giant leap. And it reflects what we have built in the U.S. over the past years. A brand that families love, a product that time and time again has earned its place in family homes. And a retail presence that puts us exactly where parents shop. Yes, we are growing fast in North America. Yet, when you consider how many households we haven't yet reached, there is even so much more potential in this world. turning to DACH, our most established region, where brand awareness stands at 80%. In Germany, Tony's is the number one preschool toy property and manufacturing. And we are not just leading, we are adding more revenue than any other property or manufacturing. In other words, we are leading by miles and pulling further ahead. We have held the number one positions for more than 12 consecutive quarters. And we intend to hold it for much longer. Because we will keep delivering with new products, new content, new reasons for families to join, to stay, and to come back. And then, rest of the world. Three markets, different stages of maturity, but one shared result. Tony's is the brand families reach for. especially in preschool toys. In this category, we are the number one property in the UK, in France, and in Australia. Number one, but just getting started. A very rare combination. Because in each of those markets, we are also adding more revenue than all other properties. The picture is the same for manufacturer rankings. We are leading in France, one of Europe's most competitive markets. And in Australia, we've reached the top within just 18 months. That's the result of our playbook. And that is global icon material. What excites me most is how early we still are in each of those territories. The positions we hold today are the foundation, not the ceiling. Our brand thrives most at major commercial events. With an earlier Easter this year, Q1 gave us the chance to show what Tony's is capable of when we show up globally. One voice, one campaign across every market at once. This spring, we dialed up the joy. The same creative direction, the same spring energy tailored to each channel and market. In DACH alone, we distributed around 500,000 catalogs to our retail partners. That kind of reach At that kind of scale, it's only possible because we've built the retail presence, the partnerships, and the brand recognition to make it last. A global campaign with a local feel, generating more than 12 million impressions from Melbourne to London, from Paris to Los Angeles. And families responded exactly as we hoped. ESA boosted our revenues on three continents. Now let's talk about partnerships. Partnerships can open up entirely new territories. Our collaboration with the DFL, the German Football League, does exactly that. Together, we have launched the first-ever Tony-played sports game, Stadion Duell Bundesliga. It's a multiplayer experience available across all our markets with the added appeal of a favorite team experience in Dach. It's a new game mechanic designed to travel to other leagues and to other sports. This is not just a licensing deal, it's another proof of concept for what TonyPlay is, a platform for interactive play that starts with audio and reaches far beyond it. So, we're now in sports, and in a way that's a logical next step, because Tonys and sports go way back, we've been supporting the Minnesota Timberwolves in the NBA and our local Bundesliga team, Fortuna Düsseldorf, for quite some time. With more and more collaborations, we're extending that spirit globally beyond the game itself. In Minneapolis, we've had in-arena brand activations with the Timberwolves, who are currently making a deep playoff run. In Auckland, Creator and local Tony star Emma Memmer joined more than a thousand families for a picnic at Eden Park, New Zealand's national stadium. In Düsseldorf, we hosted a children's press conference together with Fortuna Düsseldorf. The kids asked all the questions. And I was joined by Mario Goetze, World Cup winner and Tony's fan himself, for a visit to Clementina Children's Hospital in Frankfurt, where we gave away Tony's products. Q1 is also the season of industry events. This year, again, we showed up with energy. Nuremberg, London, New York, Las Vegas, Tony's was everywhere, winning some of the most prestigious awards our industry has to offer, like the Toy Award for my first Tony's in Nuremberg. Across every booth, our childhood-long product journey was front and center. Whether it's My First Tonys, Cuddle Tonys, or Tony Play, the industry is paying attention. Retail partners have just been as excited as families. Feeling this waltz to kick off the year is never getting old to me. And our products are award-winning, even beyond our industry. This quarter, we want to highlight not one, but two awards for our design. The Red Dot Design Award is one of the most respected design recognitions in the world. Tony Box 2 received the Red Dot Award. Tony Play received Red Dot Best of the Best, the highest distinction this honor offers. Two products, two awards, one clear signal. We are not just building great experiences. We are building them in a smart and beautiful way. Advancing our business also means setting up the organization the right way. And the right way starts with the right people. I'm excited that four weeks ago, Mark McCall joined us as our new general manager in North America. Mark spent more than 25 years at Mattel, most recently as GM for their U.S. business, which generates revenue of more than $5 billion. This appointment shows the appeal of our platform, our vision, and our strategy, not only to consumers and investors, but to top talent in our industry. North America is key to our global growth strategy, and Mark brings the track record of creating affinity for beloved brands. That's exactly what we need to scale our next phase of growth in the U.S. And with this appointment also comes an important transition. Christophe Fraisier, who joined our management board last year, will now fully focus on his chief revenue officer role, driving commercial excellence across all our markets. With that, I hand over to Hans-Jörg, who will present you the details of our Q1 results.

Thank you, Tobias. Let me take you through the numbers now. But before turning to Q1 2026, let me briefly recap our full year 2025 performance, not to repeat what we've already covered in April, but because the profitability trajectory is an important context for everything that follows. Our focus is on scaling Tony's sustainably and profitably. Last year, we achieved strong pipeline growth whilst expanding our margin above our guidance range, despite macro headwinds. This achievement shows what Tony's is capable of for scaling and we're accelerating margin growth simultaneously. Our business model is designed to fuel exactly that. Conscious will only report our margins again in August. We foresee such a development for this year, too. Now, let's look at Q1 2026. It's been a great start, and our top-line growth shows strong momentum. But let's also put the size of particularly Q1 and Q2 into perspective. With 50% of our business conducted in Q4, we are, of course, happy with our Q1 results, and they confirm our outlook on the year. Group revenue came in at 126 million euros. This growth of 35% in constant currency was the result of high double digit contributions from all regions. The one number that really stands out here is our DAH growth rate of 28%. It's an outstanding result in such an established market. We're now up to 50 million euros in Q1 revenue. As momentum and adoption of product innovation continued and the shift of Eastern to Q1 provided an additional tailwind. North America delivered 48 million euros, up 34% in constant currency. So in our most important growth market, we're continuing the momentum we built through 2025. Quite literally, that is. because our new customers that joined our ecosystem in Q4 showed particularly high engagement during the first months of 2026, actively building their collections and driving long-term value. The rest of the world surged by 53% to €28 million. This was driven by increased market penetration, retail expansion and new product launches. Tobias already discussed how fast we're growing across the individual markets. It's clearly reflected in our top line. Together, our markets outside DACH make up 60% of our revenue share. This is on par with last year's level and that's despite the strong performance in DACH and headwinds from unfavorable FX on the top line. Tony's is a global company with a global footprint. The next slide contains one of my favorite figures. Looking at our categories, Tony Box revenue grew over 60% year-over-year in constant currency. What you see here is the Tony Box 2 impact in full force, but also considering that in Q1 2025, the Tony Box 2 launch was already known to retail and the environment, so sales were already slowing down. So not entirely comparable like-for-like versus the prior year. It's a great result nevertheless, I have to point out, and it reinforces the strength of our business model. Once again, the box growth locking in future revenue from above-the-box sales. At the same time, we've seen strong demand for Tony's, with 30% growth and close to 100 million euros in revenue this quarter. Accessories and digital grew 18% and remained a steady contributor as our platform expands. As a result, our revenue mix shifted slightly, with Tony Box's gaining share due to the reasons just mentioned. This shift is as planned and as mentioned specific to Q1 from a year-on-year perspective, and the margin mix implications from this shift are as expected and will be shared as we report H1 in August. Talking just about growth across all areas wouldn't point a complete picture of what we've been working on over the past few months. Because in the current macro environment, I think it's very important for us to emphasize resilience as well. It's a structural feature of our business. Whilst the situation around fluctuating tariffs may have stabilized to an extent, we are closely monitoring a range of macro effects. We are using our toolbox to optimize production costs and we're watching carefully how consumer sentiment and FX effects develop. But here's what we do know. On tariffs, we have a stable response in place with sourcing flexibility across our production network and commercial levers that we have proven effective before. On memory chip prices resulting from demand and supply peaks due to the industry's focus on AI, We have flexibility and choice in memory technology and box production. We've secured box and memory inventory positions, and if necessary, we have pricing options at hand to protect margins so that further volatilities can be covered from within our guidance. With regards to consumer sentiment, our category is and remains resilient. Families do not compromise on quality experiences for their children. Our platform drives loyalty, and our IP pipeline gives us lots of reasons to be optimistic about even stronger customer acquisition and engagement in the months to come. And finally, as I mentioned on previous calls, on FX effects, whilst we do see effects on the top line, on the bottom line, our business model and distribution of currencies across revenue and cost provides natural hedges. and our financing structure gives us flexibility on working capital. To recap, our transition from last year to this year, 2025 proved we can execute in volatile conditions. 2026 shapes up to be no different. And with that, back to Tobias and our outlook.