tonies SE (TNIE) Earnings Call Transcript & Summary

Good morning and a very warm welcome to everyone joining online, but especially to those here at the Smith Center inside the Science Museum in London. It's fantastic to meet existing and new investors here in person. As you probably already saw in your goodies bag, this isn't the first time we are working together with the Science Museum. Thank you for having us. My name is Moritz and as Head of Investor Relations, I'm honored to lead you through the day. Let's now have a look at the agenda. Today is all about the next chapter of the tonies story. We are going to show you exactly how we are moving from being a category creator to becoming a truly global icon. And for that, I'm excited that we have the full management board together on stage for the very first time. Over the next few hours, we will deep dive into the tonies experience, show you how we are scaling our growth engine, particularly with our U.S. first strategy, and demonstrate the resilience of our financial model that ensures we keep delivering on our promises. Before we kick off with the presentations, just a few quick housekeeping points to ensure a smooth day. First, please take a moment to switch your phones to silent during the breaks and the product exhibition, there will be enough sounds to make your day. Second, our lawyers have told me to point you to the closest fire exits here to the left as well as in the back. In case of fire alarm, please follow the instructions accordingly. Finally, we have a dedicated Q&A session for those that are here in the room scheduled for 1:15 local time, 2:15 Central European Time, which will also be streamed online. So please hold your major questions until then. During our working lunch and after the closing remarks, we have a setup -- we have set up a product exhibition. So you will have plenty of time to play around and chat with the management team. And now let's kick the day off. [Presentation]

Good morning. Welcome to our very first Capital Market Day here at tonies. I'm Tobias Wann, I've been the CEO of tonies for the last 2.5 years. So why a Capital Market Day? Why now? About 10 years ago, our very first Toniebox launched in Germany. After our 2 founders, where actually one of them is here today in the room, [ Patrick Fasbender], welcome, Patrick. Great to have you here, spent 3 years developing it. About 5 years ago, tonies IPO-ed at the Frankfurt Stock Exchange. This was the last time we prepared a midterm outlook for you. Since then, a lot has changed and a lot will change in the next 3 to 5 years. This is why we are here today. For the next 45 minutes, I want to tell you what you can expect from tonies and what it means for what comes next, how we move from a category creator to a true global item. But before I tell you anything about our markets, our financials, our strategy, I want to start somewhere else with a child. Imagine her, 4 years old, on the floor of a bedroom at the end of a long day. What she needs most is to feel safe. to listen, to explore, to invent stories in her own mind, to be in her own world in her their own terms. Now imagine her parents in the next room, proud of her curiosity, one thing had to grow, but also tired, juggling work, dinner screens everywhere. The constant negotiation of just one more video. Both have very real, very human needs. She needs security, imagination, a sense of agency over her own world. Her parents need peace of mind to know what's in her hand is safe age appropriate and genuinely good for her. And nowadays, meeting both of those needs at once has become a lot harder. Childhood is changing. It's all over the news these days, and it's increasingly shaped by passive algorithm-driven screen-based content. Parents can see, researchers can see it. And now governments are actually acting on it. The headlines are up here. Screen Time is among the top parental health concerns, phone bands spreading through schools worldwide, the anxious generation entering the mainstream. Parents aren't looking to ban technology. They are looking for an alternative, something that gives their child genuine agency and gives them a genuine piece of mind. That space between what a child needs and what a parent can trust is exactly where tonies lives. More than 12 million Tonieboxes have made it into families' lives. Yes, 12 million. Over the last 10 years, we built something that had never existed before. the world's largest interactive audio platform for children. Ears first by design. Why ears first? Because imagination starts with the years, not the eye. When a child here is a story without a screen in front of them, they are not passive. They're building the world in their own mind, the director, the set designer, the main character, all at once. We call this magic, not machinery. Exploration, not consumption. The child is in control of the experience. A child picks up a tonies, places it on the box. And here's their favorite story begin. A small act of choice that opens a whole new world for them. They did that. Not an algorithm, not a recommendation engine, not a parent deciding for them. And on the other side of that choice is imagination, discovery, learning, play. A tonies picked up at the age of 2 leads to a different one at the age of 4 and another one at 7. Children's grow with us, not out of us. That's why families stay with us for years and not weeks. And building a company that makes that possible, that is the mission we all signed up for when we joined tonies. Let me briefly introduce the incredible team that drives it day to day, and that is here today to target through with you. First of all, Ginny McCormick, our Chief Experience Officer, a highly experienced industry leader who spent many years at Hasbro and Amazon and joined us about 2 years ago. Chief Experience Officer, I know this needs explanation. Her role uniquely combines experience. That is what tonies is all about. In our case, that means marketing, product and content. And Ginny in those 2 years has already delivered exceptional results. Just think of the launch of the beautiful [ Toniebox 2 ] last year. Christoph Frehsee, our Chief Revenue Officer. He built our U.S. business from 0 to over $300 million in just a few years. His entrepreneurial perspective is invaluable to our growth story. Both Ginny and Christoph are actually based out of the U.S. And as you will hear in the next few hours, that is not coincidental. And then, of course, Hansjörg Müller, our Chief Financial Officer, who joined us with deep experience in subscription, platform and digital models, thanks to his prior roles at Netflix and Electronic Arts. And here, it's clearly also a strong track record of driving profitable growth. Behind the 4 of us stand over 600 tonies, as we call them, the people who actually make the magic around the world. Now before the 3 take you through their details, I want to give you my perspective of the future ahead of us. Let me start with the business model. tonies is a great business model because families join an ecosystem. And because our product delivers for them over the course of multiple years, again and again, tonies is built on subscription-like economics. Now how does this work? It all starts with the box. As I said, more than 12 million to date. And a box is always just the start of the being -- the beginning of the relationship. With each box come 20 tonies figurine purchases over the first 4.5 years, picked from over 1,500 tonies, 3,500 digital titles and more than 350 licensing partners. Many families stay with us much longer. Actually, many of the first Tonieboxes sold in 2016 are still in use today after 10 years. We also leverage our own IP, and there is more from digital offers to accessories like headphones. Very important for you to take home. We don't sell a product once. We earn a place in a family's routine and the relationship compounds from there. And the market is noticing. We are the recognized leader across toy in all our markets. And that's what [ Serkan ] is, the gold standard for tracking retail consumer spend. We are growing faster than any other preschool brand in the U.S., Germany, U.K., France, both for the full year of 2025 and again in the first quarter of 2026. All 4 markets simultaneously. And today, we are already the #1 preschool brand in Germany, the U.K. and France. And as of the last quarter, Q1, also #2 in the U.S. Australia and New Zealand is not on the slide here, but it's the same pattern. We are the fastest growing. And also after just 1.5 years after the launch, we are the #1 property in preschool toys in the first quarter of 2026 in Australia. This is what just a few years of execution look like. The U.S. launched just 5 years ago. And as you can see, the pace at which we grow is still leading the industry today. Again, this is independent third-party data. These are not our numbers, their numbers. And yes, in some ways, we are a toy. We sparked joy in children's lives, we enable their development via part of how they play. But let me be clear, when you look at us only as a toy you are thinking incorrectly about our category. tonies is a category creator. Sitting at the intersection of several markets, toy, education, technology, gaming, media streaming. We don't grow with the market. We take share across all of them. This is the pattern actually you hear again and again throughout the day. In each of these markets, we can deliver unique experiences. But what's more we have parents trust. Trust in the tonies brand is the success factor that let us play across them. Our product, as you know, is tactile first and highly durable. Some of you actually know what I usually do to demonstrate that. And finally enough, most recently, even the German newspaper wrote an article about it. I usually take this box, throw it against the wall, it will still work. I promise I don't do this here today. So you're safe. But now, here's where it gets interesting. We combine that with subscription-like economics, like in media and like in tech. That combination is genuinely rear. And think of the opportunity we have in [ Horizons ]. The opportunity overall is massive as our product world expands market opportunities, they stack on top of each other. We keep driving further addressable space, our early core our current expansion trajectory and further potential beyond that. Each of these [ horizons ] larger than EUR 100 billion, spending toy and technology where we started, now gaming and education, think of Tonieplay or our book and Pocket tonies, those are the nonfictional tones for kids already in school to media streaming for kids, not too far away property. This is the total addressable space, and we will go into this time. The scale we've reached today means we are already a through line running through childhood for an entire generation. You know these stats, and I get never tired of telling them. More than 12 million Tonieboxes in homes around the world, more than 165 million tonies, the figures. And the average child spends around 280 minutes a week with their Toniebox. That's close to 5 hours of active screen-free engagement. Now here's a way to look at those 280 minutes that we report every quarter. It's roughly about 7% of a young child entire [indiscernible]. So the box is not a device used occasionally. This is what it means to be part of the child's daily rhythm, wake-up, play bad time. And there are still lots of space for us to go into. But most important, I think, to all of us here, every additional minute we earn is a minute more of imagination is a minute less of passive consumption. Shortly after I joined tonies, I formulated the vision for us to become a global icon. And I made a commitment, pick a small number of priorities that can get us there and then stick to them. Today's those priorities define what we do. And just as importantly, they define what we do not do. There are 3: first, build an ecosystem that compounds value; second, win internationally, U.S. first. And third, extend our story of reliable, profitable growth. One strategy executed across 3 fronts. And today, you will hear from the 3 people here responsible for each one of them. Ginny on building an ecosystem that compounds, Christoph on winning internationally U.S. first and Hansjörg on extending our story of reliable to profitable growth. It's no coincidence that these priorities are also the 3 elements of how we run through the day to day. But before they take the stage, let me give you my CEO view first. Starting with how we are shaping the future of childhood by building an ecosystem that compounds value. The thought I want you to take from this chapter above all else, you're looking at an ecosystem business. This is not just about the box. It's about building a self-compounding system. At the heart of this ecosystem, the device, clearly, around it and above the box content portfolio, the tonies themselves. I'll show a bit more in a few seconds. Beyond that, accessories and wrapping all of it, the digital experience through our app. No single layer alone creates the value. It's created in the interaction between them. Content drives engagement, engagement drives habit, Habit drives repeat participation. And the ecosystem grows household lifetime value over time. The discipline I apply is simple. Everything we built must fit and compound within this ecosystem. So to start with. We've been steadily extending that above the box portfolio I mentioned year after year. Think of these as differentiating a child's engagement. We're building breadth, so we can be more tailored for different ages and for different use cases. We have book and pocket tonies offering nonfictional content for older children. My first tonies is for the very youngest. From the classic tonies right from the start in 2016 to pocket tonies in '23, Book Tonies in '24. My first tonies and Tonieplay as major innovations around the Toniebox 2 launch in 2025 to now [indiscernible] tonies our newest addition this year. Each new format means a new way into the ecosystem and a new reason for a family to stay longer. Like with any ecosystem be a backwards compatible a family that enters early doesn't exit when their child grows. The ecosystem grows with them and so does lifetime value. And of course, there's much more to come. A key part of this ecosystem is content, the heroes of their childhood. They're all here in one ecosystem. Bluey, you heard it yesterday. We just launched now exclusive to the Toniebox, a major driver of acquisition and retention this year and for the years to come. But there's so much more. Pikachu, Mickey, Peppa, Chase, we have Minecraft and Hot Wheels. It's important for me to say we are not distributors of that content. We invented a completely new way for kids to interact with these characters. Let me show you in one picture. Here, you see the sheer breadth, make account. It's about 70 tonies on one slide, but that's less than 5% of the current portfolio. Think about what this means. The child can access all of those with just one platform. When you want to watch your favorite TV show, where do you go? There's so many different offerings it's fragmented, right? The tonies platform, however, is not. Now let's move on to our device strategy. You've heard us me say device all the way through these presentations in the past today. And then we launched the upgrade of our wonderful Toniebox from 2016 to Toniebox 2 in 2025 and even better device than we had ever before. But the truth is, and I realize this when I joined, if you want a real ecosystem, we should ultimately lower longer think in terms of one device. And therefore, let me say this is my personal one more thing movement of this presentation. In the future, you'll say devices, plural. I'm proud to announce that this year, we will launch Toniebox Light. Here it is. The Toniebox light brings what a Toniebox is supposed to. The listening experience that makes tonies special to more families, an accessible entry point launching in selected markets later this year. And sitting next to our flagship product, Toniebox 2 on shelves. Whatever the device, the tonies promise doesn't change. You can expect independent intuitive listening, extensive content for every age and interest, a tactile experience in the parental peace of mind. Those 4 things are foundational their non-negotiable they are the defining features of a Toniebox. Now what the Toniebox Light adds is, first, addressable market expansion. This is about accessibility. Toniebox Light will help us lower the barrier to entry into the ecosystem. Second, we have a more compact design, as you can see. The Toniebox Light is a companion at home and beyond on family vacation and on the go. And third, we'll see an uptick in multi-device ownership. tonies family is adding devices for siblings or secondary locations for grandma's house or the living room. Same promise just made to a larger group of people. It means more families earlier and more devices per family. And that is as far as we will go today here. Now I know you have many questions. I tell you, in only a few weeks, we will release further details on Toniebox Light. And as you introduced the product in more depth, the strategy, the specs, the commercial details. Our half year earnings call on August 20 will provide an ideal opportunity for us to answer all those questions you have. So while we will not take questions on Toniebox Light today. I'm sorry. Let's say it's worthwhile to stay tuned for our next investor interactions in the second half of the year. Now here comes the second priority. When internationally, U.S. first. Before I talk about new markets, one thing has to be clear. Growth is not just the game of new markets. We still have a long way to go in the markets we already serve. Take the U.S., for example, North America. Even there, with all the market-leading success, only around 12% of relevant households have a Toniebox today, 12%. So we are winning the market and we've still reached just a bit more than 1 household in 10. Now imagine a world where that gets closer to 58%. That's the number we have already reached in DACH, so Germany, Austria, Switzerland. And even there, in DACH, where we are long established since 2016, our ecosystem economics give us tailwinds. We are still growing, plus 5% in '22 and '23, then plus 11% in '24 and now plus 16% in '25, and we are not done. As I said, pocket tonies, Book Tonies, Toniebox 2, Tonieplay, all these new product formats with more potential right in front of them. Our first global campaign, new channels, meeting parents where they shop with sales campaigns on TikTok and now entry into the grocery segment. Now if you've been paying attention during our Q1 call earlier this year, the first quarter in 2026 up 28% year-on-year DACH. That reconfirms our momentum. Established markets keep growing when the ecosystem keeps expanding. And beyond DACH, North America, the rest of world, as we call it, the markets we're already in are still growing rapidly. That's a 100% CAGR on a multiyear basis. Each market layers in as it launches. This is what disciplined international expansion looks like, every region growing. They don't substitute, they're additive. But of course, with all the room to grow still this market view would feel pretty incomplete without looking at the world still out there. Something I said many, many times. Today, we are activated in more than 100 countries. Now contrast that with our current core markets, DACH, North America, U.K., Ireland, France, Australia and New Zealand. In all these other markets, we never ran a campaign. We never set up a local team. We never signed a single retailer. Families found us anyway. That is what I call global product market fit. Now there are more than 570 million households with children in our core age range. 570 million. A very, very large part of that is the world still in front of us. So a fair question you ask now and actually many of you did in the past, if you have so much demand across the globe, why do you not go there? Why not go to Europe? I mean we are already established in several European markets and expanding it into more or lets us tap into real synergies to our operations, general partnerships, the infrastructure we already built and of course, an existing category actually created. Then some asked for Latin America. They see the potential to scale across 2 large language rooms. Spanish and Portuguese. It's just on localization effort, and that opens up many markets. Lastly, Asia. Enormous number. Enormous number of households and strongly digital mobile-first parents with a very strong appetite for premium trusted brands. The honest answer is we will, but on our own terms. For 2 years, we were very deliberate, device innovation and winning the U.S. Now we rebalance that focus towards international growth again. So here's another moment that makes me genuinely excited. I'm proud to announce that by the end of 2027, we plan to launch at least 2 new international markets. This is what our global product market fit allows us to do and what we intend to use throughout the years to come. And then our clear ambition, we want to be in all major regions by 2030. That brings me to my last topic, our story of reliable, profitable growth and how all of this translates into a midterm financial ambition. Hansjörg will take you deep into financials after lunch. I want to spend just a few minutes on how I think about Tony's financial path forward. Well, let's start with the past. We continuously delivered. 5 years since IPO, 5 years of delivery. Every year, guidance met or exceeded from more than EUR 250 million in 2021 and to EUR 630 million in 2025. And I can tell you, this was not always easy. 2021 was still with COVID, who remembers? With the consumer confidence crisis that came with it. And in that same year, we ran our very first full year of U.S. operations and launched France. Last year, it was tariffs and we mastered them, shifting production to Vietnam in record times, finding the right commercial response working closely with our partners. 5 years, 5 deliveries, no exception. And the present continues deadline. In 2025, we delivered EUR 630 million in group revenue and an 8.6% adjusted EBITDA margin. For 2026, I want to reiterate our guidance here loud and clear, more than EUR 760 million in group revenue, over 20% growth year-on-year. North America up more than 30% and a 9% to 11% adjusted EBITDA margin. And what's even better about that continuous delivery. It's structural. Every box that enters our ecosystem needs to 20-plus tonies over its lifetime. That's an observed behavior across all cohorts we've ever acquired in every market. More than 60% of the lifetime value of the cohorts we have acquired since 2020 is still in front of us. It's simply the future purchases from boxes already in homes today. On this slide, you are looking at a $1 billion business. One could say quasi banked. Before I close, one question I know is on your mind, and you probably want to hear from me, artificial intelligence. I tell you, it's on ours too, and I want to be clear how we think about it. It's not hard to find a newspaper headline these days along the lines of those that you can read here. AI productivity is about to become visible and investable and it will divide the best from the rest. We here at tonies intend to be among the best. First, AI is a structural tailwind, and we are capturing it already today across the value chain. From supply chain to marketing, to sales, to customer happiness and product management. And honestly, I'm personally always impressed to see this myself, tonies. It's one thing to hear from someone what I can do now, it's another thing to see how we put it to work every single day. Just another day, we had a launch assessment for a new product line. Dealing with this new data some tweaks and twists to handle. We estimated would have meant normally a week for a data analyst, maybe a bit more to put this together. We stitched together Claude and Snowflake. And we did it, I was in the room. We did this in 30 minutes. So not days, half an hour. I considered a CEO task, my CEO task to empower our tonies employees in such ways constantly. Another example, and you can check this one out for yourself, if you want. We launched an AI chatbot in several markets the other week. The results are quite honestly hard to believe, even for me. One market got an 80% automated resolution rate in the very first week, and our customers are loving it. This is happening now. We are a dynamic, innovative company. We pursued profitable growth for a decade now. We constantly upgrade. AI is just another page in that playbook. Now if you look at how parents, our customers are actually thinking about AI, there's a real reason to be bullish. Most parents believe AI will be crucial to their child's career. And I'm sure many of you in this room can relate to this. They see it as they see it as beneficial in education. They want their kids to be prepared. Around 2/3 of moms are actually already using AI themselves for parenting tips and recommendations. Parents see the opportunity. They understand that AI is going to fundamentally transform how their kids live as adults, and they want them to be ready for it. But and here's where it gets interesting. At the same time, parents are deeply worried. More than 2/3 fear it could hurt their child's creativity. Around 3 quarters worry that AI might say something inappropriate, untrue or unsafe. And most parents want stricter guardrails on AI for kids today. So here's the tension. Parents want their kids to benefit from AI, but they are not willing to sacrifice trust to get there. And that's exactly the space we have built for. That tension between the momentum behind AI, the good and rightful fear of parents of the risk for their children is actually an incredible business opportunity. Figuring that out, contributing to the resolution of that tension is, of course, extremely hard. But here, we are here at tonies set up for the challenge. Parental trust is what we've spent more than a decade earning. We can build on that. And we are already at the forefront of the AI opportunity. You know we have a strong innovation pipeline and our efforts to build AI into our business are scaling up today. That is what gives me confidence that AI is an opportunity that we have and should take, all while preserving that unique edge of magic and of sparking joy and imagination. So now where does all of this leave the future? It's clear to me our profitable growth story continues. Today, in 2025, EUR 60 million top line, 8.6% adjusted EBITDA margin. That's the starting point. In the midterm, we target more than EUR 1.4 billion in net revenue at a 16% to 18% adjusted EBITDA margin. As we will hopefully convey clearly to you today, there's a clear plan behind this, built on priorities and runways. Over the past years, we promised you to reach our financial targets, more than EUR 250 million in 2021, more than EUR 630 million in 2025. We delivered continuously over and over again. Today, we are reaching for more than EUR 1.4 billion, and we are confident to deliver it again. EUR 1.4 billion. But here's the thing. What we are doing at tonies is much more than a number on the P&L, more than a revenue line or a margin. It's much more -- it is building a true global icon. Think about what a global icon is, we basically covered it all today. It resolves the tension no one else has solved. For us here, tonies, that means we give children agency imagination and joy while giving parents trust and peace of mind. A global icon earns its place and emotional connection in key life moments. Your very first device, the one you still remember when you have children of your own. And the global icon scales across formats, markets and generations without ever losing its purpose or meaning. That is exactly the company we are building. With that, welcome to the rest of the day. My colleagues will take you through all the details. For those of you who are here in person in the room, we will have time to talk and walk through the immersive experience we've set up for everyone on the screens and obviously, for everyone in the room, there will be a structured Q&A at the end. Now please join me in welcoming Ginny, our Chief Experience Officer on stage.

Thank you to by us. Hello, everyone. One more time. Hello. All right. We're more than 25 years. I've been helping companies understand and serve families around the world. Back last night after the game, I did a bit of an audit I've worked on brands that have endured for over 90 years and some that have only survived for a few. And in that work, I start to understand patterns. What's truly differentiated, what stays with families as biased generation after generation. And that's why I'm so excited to be at tonies. tonies is one of those rare brands. And I'm going to share with you now how we're shaping the future of childhood. So in our time together, we're going to cover 3 things. First, why are we uniquely positioned to win in this change with how parents think about entertainment and education for their children. How we are building differentiated content with tonies Studio and our proprietary data and how we're engineering the ecosystem to stay with families for long-term engagement. So let's jump in or as we say at tonies, ears up. There is a broader culture shift happening about parenting. And this presents a new paradox for parents. Their children have more access to content and technology than ever before, and it's exponentially growing every day. And for parents, they are torn. Of course, they want this child to be curious, independent, engage with the world around them. But at the same time, every parent knows your #1 job is to protect that child. And they know they now need to protect against technology. Why? Well this is the first generation of parents who grew up surrounded by social media, constant connectivity with their phones, algorithmic feeds, and they know firsthand the positives and the negative consequences. Many are conflicted about their own relationship with technology and they are stopping and pausing before they give that technology to a child whose brain is literally still for me. And this experience is amplified in culture and now validated in research. Unlike 5 or 3 years ago, now there is tremendous research showing the impact of technology and screens, especially in early children in their cognitive, social and emotional skills. The research continues to evolve, but the verdict is absolutely clear. Excessive exposure, 2 screens in their early years has developmental trade-offs. And that's why the conversation has shifted from families and schools to matter of public health national policies. Over 40 countries are drafting or have already implemented technology, limiting access to children. The U.K. had announcement today. We also saw big ships Sweden, who was an early adopter of screens and schools reverse their position last week. And this is not a trend. This is now because of the research an established fact about child development. Over 10 years ago, tonies has pioneered the need for something different for families. It was designed around a powerful belief that children should, of course, have technology and content, but it absolutely has to be delivered in a way that supports their development. I'm excited to share with you today, we are announcing the Tonies Advisory Group. Now this is a group of experts from around the globe, neuroscientists, educators, psychologists, all who understand what is happening in these trends. They have agreed to share their research and their expertise directly with our teams. This Board understands the importance of audio. It's something many of us take for granted. But audio, unlike anything else in early childhood is impactful. It literally builds your brain through this active engagement. Now I'm not a scientist, so rather than hear it from me, I thought you may like to hear from some of our experts. [Presentation]

So this commitment to research is not new. In fact, for the past 3 years, we've been working to do independent research with leading universities. And we've been doing this both in the U.S. and in Europe. Let's look at the results. This is what independent research says about the impact of having a Toniebox in your household. These are huge shifts 53% increase in a child's attention, 66% improvement in vocabulary. And most significantly, a 25% drop in excessive screen time when tonies is in the home. The research validates what families have been telling us for years. Tonieboxes improved their children. They improve everyday family life. They add tremendous value. Now let's move to our second chapter. Let's talk about content. Content continues to be one of tonies strength and most difficult to replicate tools. This isn't because of the depth of our portfolio, although it is deep. But it's also because our experiences are differentiated. And as we just heard, audio content meets families in a way that traditional media, movies, entertainment, often does not. Now our ecosystem at tonies is based on a very simple insight, a child's relationship with audio evolves as they grow. At tonies, we do not believe in one childhood. We don't believe in one audience. There's different ages. There's different stages. There's different moments. And that's why we've developed our ecosystem. Now of course, we all know, tonies is more than audio. These amazing figuring and our cuddly plush are tactile, right, because that's a key part of how children learn, especially in those little years. But let's talk about audio for a minute because it gives us a very clear lens to see changes in behaviors, interest and independence. So let's start with our youngest listeners. Those early sounds, those become dada, become words, become dada, I love you, and that fuels the family. They understand action and reaction through audio. And of course, it's a soothing tool. It gives them emotional regulations. At the moment, they often need the most. When children grow 4 to 6, this is the age of their independence. They're choosing their audio. They're creating routines, how they use audio in their everyday life. And this is the age of imagination in discovery. It's the age of questions. When, where? Why? Why? Why? Why? Why? This is what happens. Audio brings that to life. And this is how the bond is family, music, stories. Children grow up, they become more complex. Of course, they can handle more depth in their content, more logic, more rationale, more emotional topics. But they also are looking for interactivity. They want to choose -- they want content that connects them with their social environment, which is surging at this point. And this is the base that they start creation. So all these insights have been operationalized in our ecosystem. And as you can see, we move families from the very first my first tonies, all the way up to our older content. And what's really critical for you to understand is we never lose connection with the family. We continue to deepen trust year-after-year product after product. Now all this amazing content is powered by Tonies Studio. As you know, global entertainment brands have their own internal studios. So do we. Tonies Studio is our creative engine. It's where we bring together our expertise in storytelling, child development and ears first audio. This team is amazing. Combinations of producers, script writers, musician, audio experts and we work with a diverse network of partners from ideation to the final production. This team obsesses over details. Many of you may not initially recognized when you're listening to the audio on some examples. How many words per minute can a 2-year-old handle? What's the right way to build suspense that's exciting, but not scary for a 7-year-old. These are the expertise that we have in our studio. And this is why, regardless of the age or the stage, our tonies products have the highest quality bar. And that deepens families trust and has them come back purchase after purchase. Speaking of trust, we have the trust of over 350 partners who have chosen tonies to extend their brand. Now we are not simply another licensee or a distribution outlet. But for partners like Disney, Hasbro, Paramount, we're a translator of their beloved brand. And this has shifted over the years. Initially, we were working with existing stories. But now these partners see us as a true creative partner. We take their IPs and create bespoke in character stories, things that you cannot find anywhere else. The reason we can do this is because we have earned this trust. After years and years of high-quality reviews, consistent execution and of course, the consumer's response an average of 4.7 stars on tonies and the sound we love most, the repeat plays day after day. This trust creates a flywheel when parents are making choices, some of these partners immediately signal safety to them, quality and of course, the brands their children know in moves. And as we bring more families into our ecosystem, we have broader reach and deepening engagement. And that is incredibly valuable to these partners. So this wheel connects and it's very difficult for anyone else to disrupt, which is why this partner chose to launch exclusively on tonies. Pokémon, #1 global toy property for 4 years. It's a phenomenon. Why? Well, it's equally appealing to children and the parents who grew up with this decades and decades ago. It has cultural scale, nostalgia and enduring fandom. This is the type of partner that can immediately extend our reach and also serves everyone who's in our ecosystem. Now again, when we worked with Pokémon, they have a deep canon of stories, of course, but we're not using their stories. They entrusted Tonies Studio to create exclusive content based on their characters. I'm super proud of this work. I had to beg for a sneak peak. So for your ears only. [Presentation]

We are so excited. Obviously, Pokémon fuels collectibility, and we can see this influencing the tonies ecosystem. Also, Pokémon has a wild fan community. So I was thrilled to see their response. Across Reddit, fan forums, you see this comment over and over and over again. I don't even have a child, and I cannot wait to buy these Pokémon tonies. Now let's talk about the capability that I think at tonies often is misunderstood by people from the outside. Many companies talk about content, right, and they talk about a library. A tonies for us, content is a system. It's one that continuously improves with every listen. Of course, we have sales data, and we have download data, but we have much more. We understand how families use our product. We understand when they put a tonies on the box, and they take it off. When they repeat it, what time of day they're listening, how routines form. And of course, this data is all captured within local guidelines. But with over 165 million tonies sold, that's a lot of data to learn from. And we put that in practice. So let me give you a very simple example. When we initially launched our Paw Patrol tonies, we were working with Paramount and their existing stories. And we saw how children put them on when they listened, how often they came back and then we compared it to other content within our portfolio for the age. And then when it came time to introduce new Paw Patrol based on the new season, we made many improvements. We shifted to add more character voices. We added sound in moments where the story was falling off and not holding children's engagement. We increased audio effects to make moments more dramatic as they imagined. And now these are some of our top performers. So our moat is it a single title. It's not an individual franchise, but it's our listening and learning system that only tonies has. Now let me tell you a story of a brand. It started with a single Tony, but it became a beloved tradition for families. Using our data, we saw that box uses spiked in the evenings as families were putting children to bed. And they were using all kinds of tonies some maybe not for the sweetest streams, maybe some a little more exciting. So we saw the opportunity. And that's what led us to create [ Sleepy Friends ]. This is our unique approach to bedtime rituals. It has calm characters, soothing stories and soundscape that lull you into the sweetest streams. And we know that because in over 3 million families, this is their nightly tradition. [ Sleepy Friends ] though is now moving beyond the box. We are partnering with [ Carlson ], a leading German publisher to launch a series of books next year. Of course, this will expand our retail presence, we'll be beyond the tonies aisle and into books. We'll launch with over 3,500 bookstores in Germany. And this will be a tool to introduce new families to sleepy friends, but also tonies. But the headline I want you to take away is this is a signal of our future. Not only will tonies be the destination for great childhood brands. We will also be the creator. We will move from license to licensor, and this is just beginning. Now our third section and most critical, how families stay. Why do they continue to age with tonies? Now in other children's brands, especially those I've been part of, they have a unique structural challenge. They focus on segments like infant or preschool, and that means growth requires constantly acquiring new households younger children. That's not a barrier for tonies. And in this chart, you can see how households evolve with us. My first tonies, our first listening experience, is 80% activated in households with children under the age of 2. That gives us the opportunity to introduce them and create these listening rituals. As children age, you see classic tonies. It serves our youngest ages, but also ages up with the child in our figurines. Tonieplay, which we were very proud to launch last year, has been activated in households with children 3 to 4, 40% of the time. And book and pocket continue to age up, as you see children grow with tonies. So as you can see, the family stays with us. We do not lose. Now that we've talked about how we grow within an age, let's talk about something equally important. How do we deepen engagement at each? Well, I'm going to share with you 4 mechanisms that we've established across the portfolio. First is relevance. Kids, just like adults are trend-driven. They know when something is hot and when it's growing. And that's why at tonies, we stay very close to kids culture and evaluating emerging trends. A great example of this is Ms. Rachel. For those of you who do not know her, she is YouTube's favorite preschool teacher based out of the U.S. And when we brought her to the tonies platform became #1 in U.S. downloads and #2 in the U.K. a phenomenal example of when a creator, trusted by parents comes into our ecosystem, our community responds. Now let's talk about routines. You heard me talk about the relevance of bed times and being part of daily family life. Let me share facts with you. Families who own at least one sleep tonies double the number of Tonies that they buy in their lifetime. Let that sink in. One single figuring can double a family spend with tones. That is the power of routines. Because that daily listening drives deeper engagement that leads to more demand, which, of course, leads to more purchases. Seasonal moments. Now these are a bit of a special routine. The simplest way to think of them is thinking about holidays, of course, for children, the most magical time. We have content like Grinch in the U.S. or the Tonies Advent Calendar, which is the Tonies original we created. Now in Germany, children on average, listened 14 minutes per day from December 1 to December 24. Just about [indiscernible] tonies. That is the time they are making their wish list, talking to Santa and parents are making purchasing decisions. And tonies is present the entire time. Now let's talk about serialized experiences. This is a new format we've launched from tonies. Many of you know us for single listening sessions. But now we have content that evolves across multiple listening days. A phenomenal example is our today with tonies podcast created in the U.K. for children under the age of 4. It has daily content and, of course, cliffhangers, like the answer to a joke or riddle that's revealed the next day. So this naturally encourages a listening behavior, and it's how many families start their morning. This format is an example of how we will enter new categories. I'm sure many of you can immediately see the connections between sports and serialized experiences. We can follow seasons, we can highlight moments and all the while help tonies ears first experiences come into new households. Sports [ Bande ] it's shared identity as a family is a natural extension. Now all 4 mechanisms together drive deeper engagement, relevance, routine, seasonal moments and serialized experience. And speaking of relevance, I'm sure none of you missed our big news yesterday. Yes, you can believe it Bluey has come to tonies. [Presentation]

It is impossible for me to overstate the strength of Bluey. And I know for many of you, whose YouTube feed or videos does not look like a preschool family or like mine. That may be new news. So let me give you some context. Bluey was the #1 stream show in the U.S. last year. Please note, I did not say #1 children. #1 show across all content. And that was for the second consecutive year. 45 billion minutes of Bluey were viewed in the U.S. alone. It's the #1 preschool property. And that's why we are so excited to give this to our fans, who reacted with joy, steels and a whole lot of social shares yesterday when we send out our preorder announcement. And of course, we're bringing Bluey to tonies as a full ecosystem launch. For new families who don't know tonies, there's a Bluey with our beloved Toniebox [indiscernible]. We also have 3 classic tonies representing the key characters of Bluey, Bingo and [indiscernible]. And of course, a Tonieplay game. So children can have their own interactive stories with Bluey. All of this is surrounded by accessories, or to go bag and sleeve. And so this is how we talk about launches, right, across our whole ecosystem. This content is exclusive to tonies and uses the entertainment voices, and we know that's very critical to our audience. And while it's fun to talk about the new, I want to also talk about a part of our portfolio that continues to grow. These are our evergreen titles. So at tonies content becomes valuable year after year. Here's 3 examples for you. We have our favorite children's song that launched in '21 and in '22 [ Gabby's Dollhouse ] and in '23 [ Spidey ]. You can see one of our owned originals, but also 2 licensed content, boy and girl, and despite having launched years and years ago, these are in the top played tonies in the past 6 months, right? Amazing. We haven't done anything to these products, and they continue to delight consumers as they discover our ecosystem. And this is how our launches become long-term assets. Now I'm going to end with something that I hope you will enjoy as much as I do. I want to talk through what happens when families fully engaged in the ecosystem. We've talked and shared with you a lot about an average household, right? You know our 280 minutes. They have 1 box and roughly 20 tonies over the 4.5 years. But what I want to share with you today is our super found. So we define these as the top 10% of households that engage in listening and buy. They are completely different. They listen to tonies 60 minutes a week. They use their box 325 days a year on average. They own over 2 boxes. They were 6x more likely to upgrade to Toniebox to and their collection in that same period goes to 50 tons. So hopefully, you understand that the average family is not our ceiling. It's our beginning. So we've covered a lot. We've talked about the shift that's happening for modern families and why tonies is uniquely able to leave. We've talked about how we built differentiated capabilities, there are partnerships through our own IPs through Tonies Studio through our listening data. And we've talked about a business designed for enduring engagement, one that grows with children that strengthens the relationship with families over time and becomes more valuable as their ecosystem expands. And this is what gives us confidence in the relevance of this category is solving a need for families, confidence in the strength of our model and confidence in our ability to be the next global icon for families. And now we have a 15-minute break. [Break]

As announced earlier, we are progressing through the day, and you will now hear from Christoph, our Chief Revenue Officer, on scaling the growth engine, how we win internationally.

Thank you, Tobias. Yes, hello. I'm Christoph Frehsee, [indiscernible] depends when you live that long in America and Germany, you don't anymore. But yes, let me tell you actually how I got to tonies. And what made me understood that this product has truly global customer appeal back in 2019. So my son who lived in California received the Toniebox in California from his grandma in Germany. Basically, within date, [ Tonie time ], that's -- he coined the word became his favorite part of the day. It was basically story, music and at the time, everything diners like t-rex, [indiscernible], all the things -- and the best part was I got my phone back. So it became as far as possession. Toniebox had to go everywhere. And so when it was his turn on sharing day, he took his Toniebox to his little pre-school in Palo Alto for show and tell. And in the evening, I got this picture. Look at him, little Christoph with his little collection, [indiscernible]. And so I asked him, so you took the box, how it go? And he was like, well, now everybody wants one. And [ Michel ] as though only if we had frozen. And Jason next to him, he wanted to [indiscernible]. And by the end of the week, every parent and also every single teacher ultimately was asking me where they could get the singing and talking box that all the children's were talking about. So I remember thinking, wow, here we are. In Silicon Valley, [ worst place ] iPhone, iPad, YouTube, social media. And if this product can have such engagement but also word-of-mouth, word of kids, word of mom there's really a much bigger opportunity here. So when the opportunity came to join tonies and jump start the U.S. business, yes, jumped on it, never look back. So today, in the next 30 minutes or so, I want to do 3 things. First, bring you up to speed and show you how we've built tonies internationally over the last 6 years. Second, a little bit the growth engine. We're going to get a little bit tactical there behind our success. And then third show why we believe truly the run rate ahead is even larger than the road behind us. Past, present. So as Tobias told you bicode, basically, demand is not limited by geography. Today, we operate in 5 markets, 10 countries yet Tonieboxes has been activated all around the world in more than 100 countries. Families are basically already telling us where demand is. Our job is simply to meet them. Our growth was sequenced and intentional, started out, Germany, Austria, Switzerland, then U.K., Ireland, United States 2020, immediately after France. That helped us unlock Canada, and then we added Australia, New Zealand in 2024. Each market was chosen deliberately. Each market taught us something and each launch made the next one easier. So when I had the pleasure to join tonies we made just over EUR 100 million. That was a big deal like that. And the revenue, so came entirely from that. Since then, we've grown the company more than sixfold. That itself in the same period has more than doubled beyond EUR 2 million last year. And at the same time, we added another EUR 400 million of additional revenue outside of our home market. As you can see, Bluey, the United States or North America has become our largest market and one of our fastest growing as well, demonstrating that the tonies model can succeed well beyond its country of origin. In fact, we call the U.S. now our second home market. Importantly, at the same time, though, we did not sacrifice profitability to get there. Growth profitability actually improved from minus yes, 15 million at that time that we burn some money to actually plus EUR 54 million adjusted EBITDA. So that's total minus 8.1 billion, adjusted EBITDA plus within 4 years. tonies has proven it can scale across markets, grow revenue and increase profitability at the same time. I think that combination is quite ramp. Now let's look at the market that really put our model to the test, the United States. Like Tobias also made it clear. One strategic choice matter more than any other in the past, to prioritize the U.S. not because it's easy, but because it was the largest opportunity and the toughest test. The U.S. has roughly manage more children than in Germany. And families also spent more than 1.5x per child on toys, entertainment, educational product, the intersection where we operate. So together, that creates a 7.5x larger opportunity than our home market. And we knew if we would succeed there, we would gain more than scale. We would build the capabilities, partnerships and confidence to expand locally. So there's tremendous value in the U.S., not just financially, but also strategically. The U.S. is the largest consumer market in the world. On currency, one shared language, yet enough diversity to actually reflect many of the dynamics that we see globally. This is where you compete for attention with the world's strongest and biggest brands. This is where you partner actually with the biggest licenses, the most sophisticated retailers and also the most advanced digital platforms. I experienced it myself. When you sign with Disney, Netflix or Warner Bros. in the U.S., every license in the world afterwards takes your call. At the same time, and that is really interesting. The U.S. has one of the most consolidated retail landscapes anywhere. Basically, Target, Walmart and Amazon service more than 85% and of preschool consumer demand. So that means when you master this and you earn meaningful space at those 2 retailers, Target or Walmart, for example, every conversation around the world with other retailers fully changes. But perhaps more importantly, the U.S. also made us a better company. To win in the U.S. we had to grow up fast. We had to strengthen basically every capability across the business, from product to operations, to marketing, retention and also sales. The U.S. was not just a market opportunity. It was our proving ground. So 5 years later, the results speak for themselves. Our largest market, we generate more than USD 300 million in net revenues. We're present in more than 7,500 point of sales. That means we have earned shelf space, virtually everywhere where parents are. So not just target Walmart, Amazon is digital, but then also [indiscernible], clubs like Sam's Club, Barnes & Nobles, Macy's and many others. In Q1, sales volume, tonies is the second largest preschool manufacturer in the U.S., basically just behind [ Spin Master], who own Paw Patrol and [indiscernible], but ahead of Mattel and Hasbro. And that ranking actually, the [indiscernible] data does not even include our own website sales and not fully our volume. So you make the math where we actually stand. Most importantly, we've achieved the scale while reaching only approximately 12% penetration. Or put differently, nearly 90% of U.S. households with children are still ahead of us. So how do we do it? Well, like Tobias said, we declared the U.S. our second home market. That means we built a real U.S. company there. We built an organization with more than 100 team members in North America and also a new headquarter in Boston. Fun fact, I'd make share for now still the only one with a German accent over there. Well, [indiscernible] the team, our retail strategy really worked. From day 1, I would also say it was our retail chess game. We played it very, very deliberately. I knew that target or Target, like we call it in California had to become really our lead retail partner. The Target mom was not just a perfect customer. It is the customer. Bull's eye, perfect ten. We knew if Target truly embraces the brand, Walmart would take notes. And that's exactly what happened. So we build Target from -- we have 2 earlier stripes also there, 4 feet to 8 feet, even now 12 feet. So let me tell you a little anecdote. From the first meeting, I remember this vividly, they made it very clear that they would never think that our brand could earn more than 4 feet in line target because they clearly said the productivity we require, Christoph, is really, really high. Well, we are on the space, and it looks like this now. 2 feet. And as I said, as these target went from 8 to 12 feet around that time, Walmart really woke up and was saying "Oh my god, we're missing market share here." So they position us in a way. They call this the trend part the end of the aisle on the racetrack and a very dominant position and invested heavily behind the brand. [Presentation]

That was the feature in last year's holiday campaign. And to be clear, you might think, well, you buy yourself into that clip. That's the Walmart clip that [indiscernible] Tony's Nespresso, Apple, right? Now that kind of visibility at Walmart cannot be earned -- it cannot be bought. You have to earn it with foot traffic and relevance. And that is what tonies brings to retailers. So we obviously also had to build cultural relevance in the U.S. So when we launched TP2, we launched it at America's most important commercial intersection Times Square in New York. And we also partnered with some of the most influential voices in children's entertainment. Ginny introduced earlier, Ms. Rachel, the nation's #1 preschool teacher 5 million Instagram poles with a beautiful figure in here, [ Chris Cross, Apples]. Let me show you how she goes really to battle for us with her [indiscernible]. [Presentation]

Then next up, [ Lorie Burke]. So [ Lori Bergner ] is actually one of the most recognized names in children music in the U.S. with more than 700,000 YouTube subscribers. She's also a partner of us that goes on tour with us, and [indiscernible] actually halts and concept halls with little kits where you take a child for the fast content. [Presentation]

Of course, they do. Well, if you ask Snoop Dogg, what to get for your kids in the next holiday season to tell you. [Presentation]

It's actually really cool, tonies, if you get a hold of it. Bowl and it's about affirmation. It's really gets you started in the morning. So winning the U.S. ultimately required 3 this: a local team retail excellence and then also building cultural relevance. Together, those capabilities have become truly [indiscernible] for growth in every market we enter. By now, I think you got it, business model is quite simple. At the core, growth is driven by 2 compounding levels, household acquisition on the one hand and customer lifetime value. Acquisition is driven by the market size, distribution, brand awareness and lifetime value is driven by the quality of the content experiences. The partnerships we form and our truly outstanding understanding of our customer behavior. So looking ahead, of course, we expect Toniebox Light to help us accelerate household acquisition as Tobias mentioned, and I think it was also very clear from Ginny's presentation how our investments in our content experiences and the partnerships we form truly further will accelerate and strengthen our ability to increase lifetime. Let me show you how this formula played out in numbers in the United States from what we want to share today. Basically, our installed base, cumulative grew with a 104% CAGR between '21 and '25 while the figurines, the attach sold grew even faster at approximately 139% CAGR. This is truly the compounding effect in action. And importantly, this formula repeats itself. Once the market reaches minimum efficient scale, the installed base compounds, attach compound and also with that, obviously, profitability flows. Toniebox sales become tomorrow's reoccurring demand. It's a formula. So we have shown that the model travels from Germany, our home market to the U.S., two markets with, I think you agree, very different consumer behaviors, media habits and also retail landscape. But we have seen the same formula to drive growth and profitability in very similar ways. Now let's look at the growth engine that powers it. Our growth engine is not built around a single channel. It's built around 3 channels, 2 omnichannel, each serving a distinct purpose, [indiscernible] wholesale and marketplaces. Each channel plays its role in acquiring customers, building engagement and maximizing lifetime value. Together, they form one integrated distribution engine. Let's start with tonies.com. We call it, it's the home of the tonies. It's our most important channel for actually initiating new households and retaining existing ones. Over the last 6 years, we have built what I believe is the best customer acquisition experience in the category. The reason is simple. Unlike traditional retail, we're not limited by shelf space and we can help every family build the perfect tonies experience from day 1. So let me show you this kind of like half-life, how our bundle works on the website. So imagine [indiscernible] set now to get my little niece Hana who lives in Washington, D.C. into the system, right? Take a red Toniebox. Now I build a collection. Now she loves more [indiscernible] and then -- what else Zootopia, we've been to the movies together, great for [indiscernible]. She's a huge Frozen fan. So Olaf has a cattle tonie into the bundle. Now I want to help my sister, so let's definitely get sleepy sheep for bed time, and that will double the future value also we heard. Then I can't check out without games. [ Gabi Dollhouse ] game is actually also -- really if you want to play that. That should be good for [indiscernible]. Now system is smart as you need a controller before you continue. Headsets because, yes, we love when they listen to tonies, but sometimes it's good, they listen by themselves. And then a creative tonie, I'm a big fan, and it's actually [indiscernible] is a huge skew because people actually design and make it look like whoever sends the message is. My sister and her daughter a lot on the go. So I take also a bag to keep it all together when they travel. And then Hannah likes a night light at night as well. So the [indiscernible]. Tada, checkout $323 plus tax. So before long, I have actually built a completely personalized experience around that child. And ultimately, no retailer can offer that level of personalization, right. No retailer can offer that level of assortment also. And the result is a significant higher basket value at the point of acquisition. But we can clearly see because customers build their own ecosystem from day 1. They also tend to exhibit stronger lifetime value over time. Second channel, on wholesale. So our retail partners, right? Our retail partners provide us with basically the physical manifestation of the brand. It gives us in every country, national reach and build brand awareness. -- in trusted retail environments, some small mom and pops, 2 big chains. And with that access to millions of families where they already shop, being also carried at retailers like Target, legitimizes the brand because ultimately, customers trust the creation of those retailers. Unlike online channels, retail allows customers actually to discover the brand physically. They can touch the product. They see all the figurines. They experience also the quality of the product. And in many stores, they can actually press a button and get a taste of their audio experience themselves. And that moment really matters because tonies is a product that becomes even more compelling once you touch and experience it. Retail plays also a unique role in collection building. Families often come into a store, say, you can only pick one, but well, they leave with several. And wholesale is not simply a distribution channel for us. That's truly -- it's a partnership. It's where we introduce the brands to millions of families where they discover it and their journey is. Personally, I really love selling to retail. This brand because it's a true win-win. Retailers actually prioritize tonies because they combine, we combine this high-value customer that we bring in with the predictable recurring demand that Tobias has also talked about. Currently, we are at 25,000 doors point of sales globally right now. Fun fact [indiscernible] is most retailers initially listed as a toy. Remember, Target's saying you're only going to get 4 feet. But what they quickly discover is that we behave very differently. At first, they're attracted by our customer profile. We bring in the cool mom that listens to Ms. Rachel. So we bring in parents, millennials and Gen Z families. It's a premium customer, above-average spending power. But what really changes the conversation is what happens after the first Toniebox is sold. As retailers build what we call their native installed base, these households come back and retailers see customers returning again and again and again for characters, games and accessories. They see a very high purchase frequency, much higher than other brands can offer and they see growing demand from households, they have already acquired themselves. So in many ways, the model resembles the traditional video game console business, a platform creates future demand. But unlike video games, we retain the physical collectible nature of our figures. That will not go away. While much of the gaming has moved towards digital downloads, subscriptions, game passes, our business model remains highly productive for physical retail. That combination is powerful and also thought after. Retailers initially by a toy but they ultimately discovery, it's a category of its own. And because our platform is connected, and that's where the fun stuff starts now, we can help retailers also understand the value that installed base in ways other brands that they carry cannot. So next slide is going to get a bit technical, so bear with me. Most retailers can tell you how many boxes they sold. They can also tell you how many figures they sold. But we can get one step further. We can connect those sales back actually to the activation behavior of the boxes from that retailer. So retailer here every box is 10,000 boxes and every figurine is 100,000 figurine. So 50,000 boxes, 500,000 figurine sold. They feel great at first glance. 10 tonies tons per box is already really, really attractive attach rate. So there's little reason. They do this with 4 feet to expand space. But the activation data that we can show them tells a different story. Actually, in this example, yes, you have built this install base. But here's what you [ more ] people, new customers only bought 200 activated 200,000 of the 500,000 tonies you sold on their boxes. They actually purchased another 400,000 tonies elsewhere. So the retailer actually served only 33% of that consumer demand. Trucking [indiscernible]. A typical 4-foot section can only carry 32 to 48 tonies. But families quickly outgrow that assortment and begin purchasing additional characters elsewhere because the retailer simply does not stock them. So at roughly $20 per tonies. This equals to missing demand of 400,000 tonies represents approximately EUR 8 million potential retail sales flowing to other channels. That changes the conversation. What initially looked like a successful category 10 tons per box, we yield a much larger opportunity. Hidden within the retailer's own install base. And that is how you grow from 4 feet to 8 feet to 12 feet at national retailer. The same data helps us also resolve the channel conflict because you're like wait a second, where did the other 300,000 figurines go? Well, we can show retailers sometimes worry about the growth of Amazon and tonies.com. Using activation data, we can demonstrate how households move across channels and how the entire ecosystem contributes to the category's growth. Just as importantly, the same retailer can see the 300,000 tons sold went to boxes purchased elsewhere. Happy about this. That realization changes also the conversation because instead of viewing those channels purely as competitors, some game, retailers recognize the opportunity to capture ongoing content purchases from a much larger install base. And so they really want to leverage their unfair advantage, which is physical presence in many markets. So instead of arguing about which channel gets credit for a particular sale, the [indiscernible] really become serving as much of the in-store base as possible in their physical presence. That's the power of a connected device. So the result is that tonies can actually win across all retail formats. It's also very special. I would say most bands are really dependent on 1 or 2 dominant channels. Tonies is different here. Parents do not think in retail formats, right? They think about solving a need for their child. That allows tonies to really show up wherever parents, but also gift givers like grandparents already shop. Bookstores, Barnes & Noble in the U.S. or [indiscernible] Germany, mass retailers talked about Walmart or [ BIG W ] in Australia. Specialty stores, [indiscernible], huge chain here in the U.K., France and also Germany. [indiscernible]. Here in London, I would recommend that you actually go to [ John Lewis]. When grocers, drugstores pop-up concepts, we try it and even vending machine. So this significantly really expands our addressable distribution opportunity while reducing the dependence on any single channel. And there's another reason why tonies' growth engine has proven so scalable across the markets and geographies. And here's what our retail relationships buy us globally. I talked about -- took us 5 years to get to target. That forced Walmart's hand, much quicker 2 years. Now it accelerates expansion everywhere else. The impact goes beyond. When we entered Australia and New Zealand, we basically cover directly 2 major retailers, both with 8 feet and they watch closely how target Walmart allocates space to spot trends in their own markets. So within year 1, we secured 2 leading retailers. And together, they represented more than 80% of the local retail network almost immediately. The same happened also as we jumped from the U.S. to Canada. So as I said before, success in the U.S. shortens the path to scale everywhere else. The third channel is marketplaces. So if wholesale is about which, tonies.com is really about the engagement collections. Marketplaces basically sit at this intersection. They help us acquire new households, strengthen customer lifetime value and maintain also commercial control. When I say marketplaces, I mean mainly Amazon, which we operate, and that's important as a third-party seller, but also local players like [ Cdiscount ] in France, or also walmart.com in the U.S. where we supplement as a seller Walmart's owned inventory. Marketplaces work because they align perfectly with how modern parents shop. In the U.S., more than half of product searches start actually on Amazon. 70% of all adults in the U.S. subscribe to Amazon Prime. That means [ wonder ] phone. Like tonies.com, marketplace allow us to offer our full portfolio without shelf-based constraints. And because we operate primarily as a third-party seller, like I said, we maintain control about pricing, assortment experience and valuable customer insights. So I've discussed the engine. But now I'll show you 3 boosters here. I will talk a little bit more. It's kind of our unfair competitive advantages. And these boosters are particularly powerful. First one is our app. Here we are on the left side, had. When you buy a Toniebox, you have to register the box. And actually, parents give us most cases, the child's age and also content preferences. That really allows us to put them on the customized journey all along the tonies experience. The second one is our app -- that was the first one. The second one is our first-party data. I showed you already how we use it with our retail partners. And of course, we use it for customers for better experience. And lastly, for the business, it helps us making better decisions all across forecasting and supply chain as well. Third one is our real-world fandom. We have life experiences. I mentioned already [ Lori Bergner ] in the U.S. But in Germany, you have 20 boxes for museum tours. And in the U.K., we took a London taxi to have Santa Claus deliver 20 boxes to hospitals before the holiday season. So we engage our user base in real life experience. And that is really priceless. Together, these 3 advantages, transient acquisition, increase engagement and expand the customer lifetime value across the entire ecosystem. So each channel basically reinforces each other. That's the flywheel and these advantages have it been faster every time. Now third chapter. So far, we discuss the engine. The question is where do we go from here? So far, we are focused on what we've built, a business spanning 5 markets, 10 countries, more than 12,000,000 Tonieboxes sold and a proven growth engine that has scaled across geographies. But we believe the opportunity ahead is significantly larger. Within our existing markets, we continue to see substantial room for growth in household penetration, distribution, awareness and engagement. Beyond that, tonies' households already exist in more than 100 countries around the world. creating a really strong foundation for future expansion. In total, we estimate our addressable opportunity exceeds 570 million households globally. In short, significant growth opportunities, both within our existing markets and in new geographies. The question is not whether there's room to grow. The question is where we go next and web. So when we evaluate markets, we do this with 2 lenses: strategic attractiveness, we check market size, language leverage and competitive dynamics to maximize our reach. The other dimension is operational readiness. We look at our infrastructure, existing demand and content localization to maximize ROI. Together, these criteria, both determine where we go and when we go. Over time, we have developed 3 repeatable models for entering new markets. The first is a fully owned operation as demonstrated in France. France is a really cultural distinct market and they had an established player at the time. So we went head on. The local capabilities, localize the experience and successfully compete it. 4 years later, we won on [indiscernible]. The second is our adjacent expansion, as demonstrated in Canada, a market that is very similar to the U.S. while requiring French language capabilities also for Quebec, we support Canada from our existing organization in the U.S., allowing us to leverage teams, content and infrastructure already plays. And the third one is the distributor that model that we applied in Australia and New Zealand. It's highly efficient for us because we combine local expertise with our proven launch playbook and existing portfolio. Three different market requirements, 3 different approaches. The principle remains the same. So for future launches, we'll continue to obviously invest in those launches. But each one will benefit from the capabilities, the content partnerships and the experiences we have already built. Our road ahead, EUR 1.4 billion, as to why I said, importantly, that ambition does not require us to reinvent the model. It starts by continuing to grow the markets we already serve. Remember, DACH 58% and but only approximately 12% penetration in our second home market, the United States. Significant opportunities remain there across awareness, distribution, household and engagement. Beyond our existing footprint, we see very attractive opportunities across Europe, across Latin America, of course, but also to expand further in Asia and Pacific. Tonieboxes are already used in many of these markets today. So what we shared today, our ambition is basically '26, new markets by the end of '27 to be in all major regions by the end of 2030. The next step is not about building a [indiscernible]. It's about scaling what we already have. Our ambition is built on this proven growth engine. Over the last decade, we have proven that this model actually works. And importantly, that model and this engine also becomes stronger with every market we enter. Our data compounds, our operational playbook compounds, our license relationships compound, our localization capabilities compound, our distribution credibility compounds most important and absolutely price list our tender compounds. I believe we're still in the early chapters of the tonies story. And by now, I hope I've convinced you of 2 things. First, the product is proven. Across markets, [indiscernible] and also retail formats. And second, we have absolutely built a repeatable growth engine with the operational and commercial capabilities required to scale tonies globally. The opportunity had a substantial more than EUR 1.4 billion in revenue and 16% to 18% EBITDA margin by 2030. So after lunch, Hansjörg will walk you through the final model that underpins that ambition. [Break]

Welcome back. I hope you enjoyed the break. Wonderful London weather, 27 degrees I'm hearing, sun is shining. So when tonies comes to London, London is actually giving back. Isn't that great? So now we have 2 more important agenda topics for all of you. You first hear from Hansjorg, our CFO, about our resilient financial model. And then we have Q&A where we will all be -- all 4 of us will be on stage and happily take your questions. With this, please welcome on stage, Hansjorg Muller, CFO, tonies.

Good afternoon. Welcome to the last session before we open it up to your questions, actually. So before I take you through our resilient financial model. Let me give you a bit of perspective on myself. Many of you already know me. For those who don't, I've spent my career in similarly strong ecosystem environment at EA, at Netflix, both businesses are built on similarly strong cohort economics, the same mechanics you'll see a lot more of in the next 30 minutes. If there's one thing I learned, the key lesson I took from these experiences is the real strength was never a single product. It was always the ecosystem around it. And this is exactly what we have at tonies in a strong and powerful way. and it is what drives our financials. So if you take nothing else away from the next 30 minutes, take these 3 things. One, and you've heard this now a couple of times, we are much more than a toy. We run an attractive, predictable, resilient ecosystem. Two, our track record. This is our confidence in our ambition. Three, what the ambition actually is more than doubling revenue to EUR 1.4 billion by 2030, and more than doubling profitability to 16% to 18% in the midterm. So what do you expect today? This is how I structured my session. First, the basics, how our ecosystem economics actually work, then I'll get more into our track record, and then I'll deep dive into what to expect. So with that, let me introduce to you into our ecosystem flywheel. You've all been to a toy shop, right? You walk down the toy aisle. Most likely, you find a plastic toy, a very linear short life, sometimes singular moment of July. What we do at tonies is different. We take the best out of toy. And with that, we touch so many areas at once. Sparking joy and magic moments, fostering child development and for parents like some of us giving a real sense of peace of mind. Now I'll take that and combine that with the attractiveness of very specific business models. So in addition to toy, we reach into education, I think pocket tones, clever tons and that's only the start of what a journey into learning could look like. We bring in technology, the box itself, the data library Christoph spoke about earlier. We bring in gaming, think Tony play as the category innovation in audio gaming. And then most importantly, the recurring pattern of media and streaming. In fact, more than what it's shown on the slide here, with new content, we're now just entering sports, as Ginny has shown you before. So yet another vector, a classic toy can simply not deliver. So summarizing the box purchase is merely the entry into that ever-growing ecosystem. Let me get you one level closer to how our ecosystem economics behave, namely their subscription like with purchase patterns that drive predictability. We manage cohorts. This is how the cohort model works. So what you're looking at here is the attach behavior of every cohort. The number of tons activated year-by-year for each year's intake. Take 2021, as an example. You see a year 1 purchase a year 2, year 3, year 4. The families who entered in 2021 bought a certain number of tonies in that first year, and then it kept going. Now look across the vintages. The same year 1 purchase is more or less the same in 2021, 2022, 2023, 2024, 2025. The year 2 purchase, again, is remarkably consistent, right? The year 3 purchase the same. You get the idea, right? This is what consistency looks like, and that gives us predictability and resilience over time. What does that mean? We can plan and build our forecasts on cohort behavior, we've now observed for years. And obviously, what's shown here is in units, the same is true for our revenue. So what does that mean? What does this tell us about the model, 4 things. First, it works anytime, as you can see here. Every cohort, every vintage shows similarly stable behavior. Second, it works everywhere. We saw this in [indiscernible] first. We saw the same kind of behavior and predictability when we launched in the U.S. Every market behaves subscription like. What you see here in the chart is just the global aggregate of this. Third, the ecosystem compounds a growing portfolio structurally feeds the cohort stability with new formats. My first tonies cuddle, tonies toy play, Clever Tonies, they all add lifetime value to cohorts we already have not just new ones. And then fourth, it's resilient against saturation. Newness is baked into the product's DNA. When we launched something like Bluey or Pokemon, which Ginny just showed you, the whole ecosystem feels new again to our families. Now that you've seen how the cohort model works, let me show you its longevity. Longevity starts with early entry. No device enters the child room younger than tonies. I only need one number to show you that. 79%. That's the share of children who get into tonies aged 3 or younger. Now compare that to, for example, Amazon Alexa or Nintendo or Roblox. We are simply the first device in the children in the child's room by several years. Why does that matter? Well, one, it's a blue ocean. It's hard for competitors to reach into that age group that early. Other devices aren't as built for the total room and only become relevant at age 4 or even at 6 plus. So moreover, this early entry precisely means high longevity. Boxes activated in 2016 can still be active today and a significant share of them actually are. Last, it leaves us with the potential to extend on both ends, right? My first tonies, Toniebox 2, which is one plus certified, moved is even younger than before. Clever Tonies or Play Tonieplay. They keep families longer. And while there is still room to go, it's a reality today that we already entered the room years before competition arrives. So this early capture compounds into real lifetime value. Now let me connect the cohort economics with the longevity of that ecosystem. And I'll translate it into financial terms. Each bar here is 1 year core. And the revenue that cohort generates over its life. I'll give you 2 examples. I'll talk to 2 examples. Take 2020. The families who joined 6 years ago are still generating revenue today. We've delivered much of their value of cars already, but they haven't stopped. Not least, of course, because new formats and content keep them engaged throughout. Now take 2025, for example, a far larger cohort with almost all of its economic value still ahead of it. The bars get thicker every year because each cohort is bigger and more valuable than the last. And the revenue still to come from cohorts we have already acquired is more than EUR 1 billion. Now factoring the cohorts we will have acquired by end of this year. You're looking at approximately EUR 1.5 billion in revenue that we predict based on reliable corporate behavior. That is the essence of cohort-based economics. It is some may even say a quasi bank business. So I've shown you how the ecosystem economics work. Next part, let's look at the track record. Tobias already alluded to it, in net revenue terms, we've always delivered on what we promised, as we've grown from EUR 188 million to the EUR 630 million in net revenue, every single year we met or beat our guidance. We did that despite some significant headwinds. Of course, we guide on profitability as well, and we've always delivered on both of them year-over-year. That delivery is impressive on its own. It's even more impressive against the backdrop. You've heard me talk last year about tariffs and component costs this year. But such headwinds didn't just arrive recently. For the last 5 and more years, we've had our fair share. Every single year. You see that little character at the top. That's a creative vampire tone. We put them on our internal slides whenever there's something scary on the horizon. But we all know we continuously delivered. The resilience of the business model is what delivered. But still our little guy here has had more than a busy few years. 2021 COVID and global supply chain disruption, 2022 with the war in Ukraine inflation, consumer sentiment crisis. 2023, the Middle East crisis raw material price ForEx. 2024 inflation consumer caution again, 2025 tariffs, FX headwinds, still cautious consumers. So through every year of it, the model held, reliable, growing and more profitable. You all know what 2025 looked like an extensive new tariff regime on top of everything else. And still, we delivered. So let me show you the toolkit behind that resilience. At the top, the installed base flywheel, our large fan base kept purchasing subscription-like right through it. Then supply chain, a flexible setup with fast ramp-up of our Vietnam capacity to diversify box supply. Incredible agility shown by our teams. Next, pricing, a measured well-communicated response with limited impact on volumes. This is the commercial firepower we have earned as a business. Lastly, design to value continuous improvement across our cost base to counterbalance the pressure. And the result in a year like that, net revenue up 36% at constant currency, adjusted EBITDA up 50% year-on-year. One new flagship platform launched successfully, 3 new above the box formats prepared, 2 of which landed successfully in 2025 with Tonieplay and [indiscernible], which we launched in 2026. So really remarkable. That brings me to the third and final part what to expect. What are we aiming for? Right? You were probably all staying for even after lunch. Let's unpack it. We already shared the ambition earlier today. 2025, we did EUR 630 million in net revenue at 8.6% adjusted EBITDA margin. By 2030, we target more than EUR 1.4 billion, just to repeat, at a midterm margin of 16% to 18%. That is more than doubling revenue over [ 2.2x ] and it's expanding margin by more than 1.9x versus 2025. I'll let you do the math of multiplying these effects through. But what's driving this? Let's start with the top line. By 2030, as I said, we target the EUR 1.4 billion. It's a 17% compound annual growth rate from here. It has 3 building blocks. First, the existing business. Most of the growth comes from the core, existing products in existing markets. growing the installed base, driving the flywheel. While product innovation and new launches are exciting and provide us with additional potential, it's confident to know that much of what we aim for is actually coming from the predictable engine we already have today. Second, new devices and attach innovation, drive additional growth. Tonie Box Light is just another step in this sense. And third, new market launches. They contribute meaningfully. You've heard Christoph say today, will add 2 next year, but they will take time to ramp, time to build the flywheel, and we have planned for that. So now let's turn to the bottom line. Our ambition is to bring adjusted EBITDA to around 16% to 18% midterm, a clear step up where we are today. I'll come to the contributing factors to that step up next. Gross margin will remain a key lever for future EBITDA improvement. There's mainly 3 drivers behind it. First, the product mix. This is the flywheel again as the installed base growth and attach grows faster still, how 20 tonies, for 1 box. On average, margin improves naturally. Second, structural cost improvements, major efficiency program across products, design to value, supply chain design and more. Third, our commercial and production levers, a stable response setup with sourcing flexibility proven highly effective last year. Let's boss is noteworthy that we expand gross margin and with awareness of how external factors, component cost, inflation tariffs and more have been working against us in the past years. But as we bring it together, how do we get from here to there on EBITDA. So the first building block Around half of the EBITDA margin step-up will come from gross margin improvement, what I just explained on the previous slide. [indiscernible] to this are, again, the natural product mix improvement and further product innovation. In the second building block, roughly the other half is coming from operating leverage. What do we mean by operating leverage, structural improvements to the underlying business. as we scale, scale effects, we become more efficient on many fronts. Our brand works harder for us. And the third also important building block while we drive for efficiency, we also retain our focus on growth. This EBITDA ambition also ensures the funding of the initiatives we've shared with you today. Let me move to a slightly different topic. I want to point out the nature of our -- the CapEx light nature of our business. tonies is -- and we aim that to continue a CapEx-light business by design, right? We have no own manufacturing. The production backbone sits to a large degree with our suppliers. We have no own distribution. We go through 3PLs and third-party retail. No warehouse fleet, no store network and our hardware is durable and long cycle. Generational updates are infrequent. So the tooling and the R&D investment stays relatively low. Now what do we do with all this success? How do we allocate capital I think, will be one of your questions. For now, the best home for our capital is the growth in front of us, guided, first and foremost, by reinvestment into the core. This means organic growth and ecosystem scaling. So we invest to expand internationally and to fund that high-margin innovation that grows lifetime value. Moreover, there's a second important aspect to this. It's balance sheet resilience, right, keep leverage low use our cash to self-fund the growth, maintain flexibility. There will be, of course, opportunities once the ecosystem sustainably generates more and more and more cash to allocate. And we'll pursue these opportunities like always with a clear vision and discipline, but for now, we don't have plans to share buybacks or dividends or the likes. So before I close, a few things that you should know about this plan. On product, every planned innovation from Box to attach is reflected in the ambition we stated. On internationalization, the planned velocity of new market launches through 2030 is reflected, too. On efficiencies, we've reflected our full efforts to manage the bottom line from cost of goods sold to operating leverage with no dedicated AI efficiency gains yet priced in. So we might wonder some further upside, right? You might be thinking about inorganic growth, faster rollout, unconfirmed launches is explicitly not yet in these numbers. So let me bring it all together with what gives me confidence in this plan. First, our subscription like economics that I've shown you. They give us predictability with around EUR 1.5 billion of future revenues still outstanding just from already existing cohorts and those we will acquire until the end of this year. Second, the margin expansion is structural. The operating leverage is only one aspect. A large part of it is almost inevitable as the installed base scales. And third, we have a proven playbook tested, repeatable, adaptable business levers that drive that resilience. Lastly, capital discipline and strong profitability levers fund the next phase. This plan isn't based on needing capital raises or changing capital structure, the model funds itself. And of course, looking at the [ stellar ] team today on stage, we have another reason that this ambition is more than realistic to achieve. With this, thank you. I look forward to your questions. But before I go there, Tobias for some closing remarks.

Thank you Hansjorg. Thank you, Ginny. Thank you, Christoph. Let's wrap this up. These are the things I would like -- we would like you to take home from this very first Capital Market Day here in London. You heard us talking about 3 things repeatedly over the last couple of hours. Number one, build an ecosystem that compounds value. right? We had introduced you to Toniebox Light. Ginny spoke about our content portfolio and everything that actually surrounds that very important first point of our strategy. Secondly, win internationally, U.S. first. I think Christoph made it really, really clear how we got there in North America. And what are some of the unique strengths is that only we have that we can now apply as we continue to further internationalize our business. And how that -- and I say it again, this word, compounds over time. Australia was a great example of us applying all the learnings of all the previous market launches, and you could see the effect there. Third, extend our story of reliable, profitable growth. Hansjorg took you deeper into our numbers. We have revealed our midterm ambition of EUR 1.4 billion in revenues by 2030 and also obviously the 16% to 18% adjusted EBITDA margin that goes with that. And this is all built on our subscription like cohorts that again, compound, think of the quasi-bank business that we have shown to you. And the last thought I want to kind of make sure you take home is, yes, this is hopefully very clearly showing you we are not your average toy. We are much, much more than that. And there's so much more for us to obviously go after. And allow me a fourth point that is not on the screen. What makes me extremely confident about us delivering all this is our fantastic team that we have here at tonies. Over 600 very motivated people that show up every single day to make this happen in Germany, in the U.K., in France, in North America, in Australia and probably in a few more countries down the road. So thank you very much for joining us here in London, the Science Museum. Thank you very much, everyone. On the screen, I know there's been a lot of you, and thank you for your patience as we went through the day. We are opening up for Q&A now. So I would like to ask, first of all, Moritz, our Head of IR back on stage and then also my colleagues, Ginny, Christoph and Hansjorg. And then we open up for questions, and hopefully, we'll have some time for an informal chat after. Thank you very much.

And we have 2 wonderful colleagues here, left and right with microphones in their hand, so please raise your hand and then either [indiscernible] will bring you a microphone, and we try to actually capture the priority of the hands going up, I think first. Can you maybe quickly introduce yourself and then ask the question?

Sure. My name is [indiscernible], I'm from Needham Capital. In the release this morning, you disclosed that your penetration in Germany was a 5% which is really, really high. So my question is, number one, are you surprised at how high that penetration number is, number one. Number two, going to go higher? And number three, how replicable is that 58% across your other key geographies?

Fantastic question. Thank you very much. No, I'm not surprised. Obviously, I've seen this number growing over the last couple of years. And so I actually -- I'm just convinced that this number is something that we can, to a degree, also take as a target for other markets. Probably not at the exact same height, I mean if you look at the U.S. business, I would always say this is a great aspiration, but the North American market works differently, right? I mean it has different listening behaviors. It has also different media consumption behaviors, it's a lot more diverse market, but it's clear, hopefully, by today, that the 12% that we have in North America is really, as Christoph also said, just the beginning, right? But let's also say -- I mean, Germany is our home market, home markets behave slightly different, but it's also our hero market, and we'll take what we have in Germany, all the learnings and applied in other markets. The Important thing that I find most -- I mean the really important fact that makes us all very proud about our core market is the growth we see in this established market. The 26% year-over-year growth in Q1 of 2026. This is probably what I would like to take away. Maybe one from this side, Gerhard.

Gerhard Orgonas from Berenberg. You said that the partnership with Bluey and Pokemon was exclusive. And I don't think that was the case historically where Disney would go along several platforms. Can you tell us how this came about, how defensible this is and why they have chosen to be exclusive with you?

Ginny, you want to take that?

Absolutely. So for both partnerships, 2 factors to think about. Obviously, when they look at the space, they see tonies as a leader. So while others are asking, they are not responding. The second piece is, as we shared, all the content we create is exclusive to that platform. So while there will be Pokemon on different platforms like audible or experiences like this, this is what we will own with families. And those 2 pieces are becoming more and more critical to our partners and who they select and how they want to establish these relationships long term.

My name is [ Russell Pointon ] from Edison. Two questions. First of all is on the product. I'd just be interested to find out what was the most important feature that surprised you on the launch of the second box. And the second question with -- on the presentation on the U.S., you talked about the population size and the relative lifetime spend is 1.5. Could you just talk about the factors that build into that 1.5? Is it just a reflection of relative wealth, that type of thing and perhaps link that into how you think about future markets? Is it the -- I assume your gains go for the markets where the spend per customer is probably likely to be higher?

Yes. Great. So just I'll take the first one, you take the second one. So the feature that surprised us, you used the word surprised, maybe it's not the right word, on Toniebox 2, obviously, you heard me saying this a couple of times. We had and still have, obviously, Toniebox 1, it's still used in millions of households. It's a wonderful product. It works every single day, every stat you see -- I mean it's mostly driven obviously from Toniebox 1. So we always said the time we are going to launch a new box would be a time when we have, when we think we have a real innovation. So not just round shapes or something like that. Really, we wanted to bring something new. And so that is -- that was the time. The time was there last year when we built everything is ready for Tonieplay. Interactive audio gaming. Another category we created. And surprised or not whatever word you want to take, the way Tonieplay is now landing in the households is really amazing. And we like that. It's -- the games that we have, the quality of the games, the level of interaction, the adoption of this relatively young category is really, really good. And that's, by the way, something that only works on Toniebox 2. Christoph, do you want to talk about it?

Yes. I appreciate Russell, you picked on those numbers. So first to the 1.5x, that includes toy entertainment and educational product. And that's the intersection that we consider ourselves. And I think the different spending have, of course, not just only geographically, but also social economic in every market. So at the end of the day, when you say like how it influences future selection. As I said, we optimize for reach where the next million users. And then we balance this with ROI, what's for us the most effective way to ultimately reach them. And I think with that, there are plenty of pockets around the world in different formats that we can reach.

I'm Jeff from [ First ] Generation. This question is for Ginny. I thought the super fan engagement metrics were really interesting. I'm curious if you've learned anything around the inputs that are controlled but by tonies that can result in a greater number of super fans. And then I'm also interested as to whether you know what the daily activations are for the product as a percentage of total activations, just how much is an actual daily habit for the [indiscernible].

Happy to answer those. I don't have the daily activation, so I'll get back to you on that. But for the super fans, what we've seen is some of those triggers. Obviously, we shared the Sleep Tonie statistic with you, which obviously enables a deeper engagement. And we also see a lot in terms of how quickly they acquire tonies in the first year as really being a signal and how they will deepen their relationship. And the last is the content diversity. So it's very easy. I think if you don't have a little listener in your life to think a figurine is a figurine. No, it is not. So you really have to represent the right characters, the right stories, the right environment. And that is also a key signal we see.

Christian from NuWays. I have a question. So the -- on the figuring that you sell per Toniebox after 4.5 years, all this data is based on TB 1. Would you expect this to be any different with TB 2?

Ginny, another one. Sorry, [indiscernible].

Yes. I'm happy to, but everyone, feel free to join in. we seeing no signals of why that would change. If anything, there is more growth opportunities. would figure TB tail. So obviously, we've talked about play, the excitement in that full different category, which, again, is accretive. It's not replacing the figurines. It's another way, another time a day, another occasion to interact with your Tony box. SP-8 So we see exciting future there.

Yes. I may ask another one on the U.S. I mean, basically, it seems like all the building blocks are already in place, right? You had all the relevant retailers your brand recognition is really strong. So do you have to do much more to get to the #1 and maybe double sales? Or is it basically just -- you just have to wait and wait for the cohorts actually to convert into Tonie figurines sales?

I mean it's great. In the U.S., we basically just roll out of bad and then the rest happens pretty I think your observation is pretty good in the sense of like, as I mentioned, the pump is primed the distribution channels there. The numbers we also post are significant in that sense. The native install base that model that I shared with you of also how much basically every retailer has almost hooked themselves in. I think retail would have a really hard problem right now to take 20 or reduce it because their own space will be like, where are the tonies, right? So -- but hey, it's also, as I said earlier, one of the most competitive markets. It's one where you compete for mind share with parents like in no other. So we want to defend it, and our work is not on. Does that help?

It's Peter from [ Pictet ]. Could you guys talk a little bit about the road map for sports and what to think about that? It seems like a very big area that there's a lot to do. So I'd love to understand a little bit higher tackling, such a big opportunity?

Yes. I mean I love to talk about sport all the time, but then she also says, come on, tame. So you probably take it before I get too excited because I am super excited about Sports.

Hopefully, you've seen in the portfolio today, there is sports content in our Pocket Tonie we know consumers love. We also have a Tonieplay sports game came out in Germany right now where you can battle, bring that competitive energy you may have to Tonieplay. And so with those initial experiences, again, we are testing new formats in different ways. That also with our growth, has triggered a lot of conversations from different leagues, whether in the U.S. or in Germany or across Europe, who obviously see this tandem as something that is very important to the family. And a lot of these sports companies are focusing on building their brands at their earliest years. So there's tremendous synergies, nothing we'll announce today, but we're very excited at the road map of different kind of experiences we can create together.

Stuart Brown, private investor. My 1-year-old son is delighted about the news of Blue coming to Tony Box. He would like to know when that will start shipping in the U.K. And also Blue, you've gone with the figurines as a 3 pack, I believe, retailing at the pricing I've seen $70 in the U.S. What does that say about the pricing power and Bluey, the character that you've gone with a 3 figurine pack at a higher price point than is traditionally the case for the average figurine?

Yes. Look, we realize when we work as with our retail partners in all ways that the individual figurines. So we retail it at 3x $60. And ultimately, that was almost a void that there's a higher price point giftable item. So it actually -- and we've started to build this more and more because right now, as a gift giver, you give the 100 or above 100. And then you like with [indiscernible]. So we want it, and we felt Bluey is also if there is an and that's a great one to introduce that. The commercial aspect, there's also planning aspects to that, but we're very excited about it.

[indiscernible].

So for those who couldn't hear, [ Lucia ], by the way, our General Manager for the U.K. here at tonies, mid-August for preorder date, right? The U.S.

The U.S. has now also to strengthen our relationship. We have a first-to-market experience with Target on July 19. Starting there and then the other retailers will join after a little bit. And oh, preorder is on right now. So yes, you can go on tonies.com and also a target in preorder right now yes, it's selling.

Trevor Fitzgerald from Mirabel Asset Management. Just a follow-up question, a bit of housekeeping about the lifetime value of the cohorts. You've got a number there of EUR 1 billion to EUR 1.5 billion but that's a pretty wide range for something you've got a very good idea of. Why so wide range? And when it comes to lifetime value, what's your definition of that lifetime, I remember that 4.5 years before.

I'll give you a shot. The reason why there is a range, EUR 1 billion to EUR 1.5 billion is because the EUR 1 billion is associated with the cohorts that we have already acquired. Whereas the EUR 1.5 billion is associated with the additional cohort that we expect to acquire throughout this year. The main difference that describes the end of both ranges. There was a second part of it or...

lifetime value before we had 5 years is that [indiscernible] ? Because obviously, lifetime is a long time.

Yes. We usually express -- this is in simplified terms, to make this easy to communicate and understand 20 tonies per box through a 4.5-year period. Of course, that's more than 20 if the lifetime is longer. But that's the easiest and, I think, most adequate number to compute or model with.

Thank you for the question. More questions from the room? Or there now the finance goes up. Maybe we go over here real quick for you, Ramon, microphones coming.

[ Ramon Huber ] from Lima Capital in Zurich. So I have a question for all of you. You have to be ready and are going to see who is raising the first hand. Who will still work at tonies? I think Tobias was the first.

But I also extended my contract.

It's Thomas from [indiscernible]. Given you're officially in 10 countries, but unofficially in 100, you obviously tolerate a bit of a gray market. But I just wonder how you feel about the gray market in general, in particular, as you launch the new box and given its selective launch, there's a risk of it being transmitted across borders, maybe more than you're currently comfortable with, with your existing portfolio.

Thank you. Not worried at all. I honestly say this. I mean we've received this question before. We looked at the data ourselves. Let me give you some real interesting perspective. When we look at gray -- you call it gray, you can say second market -- secondhand market, right? There's an interesting data point here. If you buy your box and usually that secondhand market box comes with an assortment of tons. There is an interesting thing to watch. Kids, households with a second-hand market box immediately have a higher listening time than someone who probably buys a new box with only 1 or 2 figurines. And I think by now, after this day, you know why. Because they have immediately some more figurines they can actually select from, the probability that they find something that they really hooked with is higher. Secondly, and I think we also referred to this a couple of times throughout the day, we have this built-in newness freshness. I think you had also expressed this so nicely. The ecosystem feels new almost every day because every day, there is something new coming. And I can tell you, when there is the new Moana movie coming to the box offices, whether you have actually a second market or a first market box, that kid wants to listen to that Tonie the moment the movie releases in the cinema. So the buying pattern of Tonie is similar. So we actually look at a secondary market box as something that completely works in our favor. And so this is why I'm also not at all worried about this box having any cannibalization effect on this box or in any other box market. Love the question.

The gross profit margin is one of your key levers for the margin improvement. And just a question about the memory prices currently. I think they're hitting Nintendo quite hard. How are you looking into memory prices this year, next year? And how can you deal with that?

Yes. Maybe let me start off with this year, the memory price dynamic is included in our guidance. And our ambition that 2030 or midterm target that we expressed is based off of today's market prices, basically priced in. Of course, as I've already alluded to in the earnings calls, we have a toolkit, right, of maneuverability. We have experience, knowledge and production capacity for different technologies in terms of memory chips, and we can switch depending on which market prices break out or not. So that's the first. Then we have, of course, our long lead inventory buys and our existing inventory. Last resort, as always, we have the pricing power that we demonstrated should we need it.

Can you guys just flesh out a little bit the reason why you guys have a very wide moat around your business, i.e., what's going to stop any other competitor from stealing some of the growth that you guys have lined up nicely in front of you from a market standpoint? How is it that you're going to retain your market share and protect yourselves against any potential threats from competitors?

Yes. I think I hope you have actually seen it at some point throughout the day, right? This is -- we have various ways how we look at our competitive moats. The #1 moat is the 12 million boxes and the ever accelerating flywheel in obviously, boxes getting into households. And let me be very clear. The 12 million boxes that we have in households today is actually over 12 million as we speak. It's something that we have built over the lifetime of 10 years. When Patrick and the team started in 2016, obviously, that was the first commercial moment for us in the fourth quarter of 2016. And then look -- and we are showing this in many of the interactions with you. Every fourth quarter, we are actually making a significant jump in box activations because fourth quarter for us is box quarter. And this is because, obviously, Christmas and Black Friday, Cyber Monday, all these events that we have, and you cannot compress this. It's hard to compress this. So we are going to continue obviously growing, and we're looking back at 10 years of execution of that growth, number one. Number two, the content library. I think by now, it's clear. We are creating amazing content, unique content. We talked about some exclusivity that we have on some of the leading IPs in the world. Number three, our international expansion strategy. There is no global competitor, period. There is no company that is in all the markets that we are in. And we are planning to literally release the brake and grow significantly faster in more markets. So -- and then let me actually finish with one thought. You saw the number as well today, 570 million households in our age range as households with kids in our age range. That is a number we are really going after. So competition might be interesting for some of you, and it is to a degree also for us. But we look really forward and we see this huge opportunity, this blue ocean to actually use your word that we still can go after. So I'm extremely confident about the growth strategy and the moat that we have built. Yes. Maybe one more question from you.

Stuart Brown again. At what point does [ Hasbro ] or a [ Mattel ], particularly given some of you and your colleagues' recent career experience, at what point do those companies decide to stop licensing out and just decide to take the company themselves?

The company?

Yes, tonies, yes. As in buy out.

I mean, first of all, I can't comment on Hasbro's strategy, and I'm pretty sure Jimmy wouldn't either. You would need to look and talk to them about it. I want to make one thing very clear, and I really mean it, and I say this for all 4 of us here on the stage. Look, when I say we are building a global icon, and we have a generational opportunity to build a global icon. I'm not actually looking at someone taking us out to use your words in the next 1 or 2 years. We have an opportunity here at tonies to actually create something generationally, and we are here on stage for the years to come to actually take that opportunity. Thank you. Thank you very much for the great questions. Thank you for coming. For those in the room, please mingle with us now. And over a coffee, we have this beautiful, as we call it, immersion room over there where you can actually just get a feeling of how tonies really work in our day-to-day lives at our customers. Thanks again. Thanks, everyone, on the screens. It was great, and talk to you soon.