Good morning, everyone, and welcome to the next presentation of today's German Select conference. I am happy to welcome Moritz Verleger, Head of Investor Relations at Tonies. A housekeeping note, the conference is being recorded, and all participants are on a listen-only mode. If you have any questions for the Q&A session, please submit them using the chat box. Now let's get started. Moritz, the floor is yours. Thank you, Oliver, and welcome to the company presentation of Tonies. I am not sure whether everyone in this conference is aware of what Tonies actually does, so I brought the box with me. The Toniebox is the first connected device in a child's room. With the Toniebox, you can use any figurine, place it on top of the box, and it plays a song that you downloaded before. Once connected to the internet and once the song is actually downloaded onto the box, you can also use it without Wi-Fi. In addition to the figurines, last year, we also launched a play function that allows kids to interact with the box either in single player or multiplayer in a screen-free way. This is why we believe at Tonies we found the perfect way to help educate and entertain kids in a screen-free way. This allowed us to already sell more than 12.6 million Tonieboxes worldwide, and with that, more than 173 million figurines. We call it attached products. Basically, those figurines you literally find at every Rossmann, at every Müller, at every Saturn in Germany. Since last week, also at many dm. Basically, there is no way not to find it, not to buy it maybe for your kid on the way home. We noticed that once a box is sold within the first four and a half years, we sell around 20 figurines. Of course, over the lifetime of a box, much more. This gives us predictability of the revenues, and we call it subscription-like cohorts because thanks to the data we collect with the box, we can very precisely predict how much we are going to sell, what kind of products resonate well, what kind of products do not resonate so well. It gives us the beauty of the game that we can basically target our customers with follow-up purchases and basically extend content to our user base. This allowed us to grow more than 20% for full year 2025 to more than EUR 630 million revenues. On Thursday, right in time for this conference, we also published our first half 2026 results, and we continue growing by more than 40% on a constant currency-neutral basis on group level. In the DACH markets, although we already have a market penetration of almost 60%, six, zero, that means in more than every other household with kids between three and seven, we have a box at home, and we continue growing at more than 20%, so a solid double-digit rate. Why is that? Because basically, with the fact that we continue growing our platform, the Toniebox platform, the graphic you can see in the middle of this chart, and the fact that more than 70% of all boxes ever sold are still active, we basically fuel the flywheel of using the box as the center of our ecosystem and the figurines as high-margin profitability drivers to follow up on those purchases. But let me go back to the market Tonies is active in and why we think we have a USP to satisfy demand that exists in the toy, in the media, streaming, education, technology, and gaming segment. Tonies is right in the verge of those five mega trends in the next couple of years to come because we noticed that not only because of the fact that there is a much higher awareness how bad screen time and social media is for kids, also because of the fact that thanks to digitalization and the connectivity of toys, we basically created a new multi-billion euro category to combine those fast-growing markets. So what can you compare Tonies with? We all know Nintendo. We all know Netflix. They basically literally revolutionized the gaming and the video streaming industry. This is where we see Tonies, right in the intersection of audio, either through own content, how Nintendo basically introduced Super Mario, but also through licenses with third parties like Pokémon, what we launched last week, or also PAW Patrol and Peppa Pig, as you can see on the slide. How does the business model of Tonies work? We basically, as I mentioned before, have the Toniebox as the entrance to the ecosystem, right? The box is at the center of everything, and if you follow us closely and if you had a look at our H1 results last Thursday, you noticed that while our gross margin dropped, top line increased significantly. Why is that? Because in the first half of this year, we had a product mix tilted towards Tonieboxes. Of course, Tonieboxes, while still profitable for us, they come at a much lower gross margin than figurines. However, we notice, because we are already in the market for more than 10 years, that with every box we sell, on average, we have 20 figurines follow-up purchases, so the box is a great predictability of future figurine sales. So on one hand, we sell the box as the, let's say, razor in our razor blade model, still profitable. Then we sell figurines that are either developed through our own IP, I will go to that in a second, or through proprietary external content, and we distribute it either D2C, so online or offline. Both ways are a great way to basically satisfy the needs, but also satisfy the need for large product selection, because obviously online, you are able to offer more different figurines than offline. But also highlight the importance of the physical channel for kids to see the physical product and also try it out. What kind of products do we develop on top of the box? As I already mentioned before, we have own content, where we noticed a niche that's maybe not yet satisfied by licensors like Disney, Universal Music, PAW Patrol or Pokémon. One of our best sellers actually is the so-called Sleepy Friends that you can see here on the top left box, in the middle, helping kids to fall asleep, but also external licensed content that draws kids into stores. A three-year-old is probably fine with our own content. A three-year-old is not so much focused on external licensed content, but you probably already noticed in the supermarket how the hype around licensed products, especially with large franchises like Pokémon or PAW Patrol, is basically satisfying a demand for any kind of product. I've even seen tissues with a PAW Patrol logo. I've seen wet wipes in Pokémon design, and this is basically where Tonies goes into the niche of a certain licensed product and adding the Tonified content to it. I already mentioned the flywheel. How does the typical Tonie customer work? Why do we expect to continue growing at more than 20% or double-digit rates in the DACH region, although we are already at 60% of all households, or all potential customers? Thanks to the data being fully owned by us and being fully run on our own platform. Every Tonie figurine that gets activated consists of or contains an NFC chip that is tracked whenever it's activated. So we know exactly what kids listen to, when they listen to it, how often they listen to something. We know exactly where you bought your box for the first time and how many follow-up purchase this specific customer might have. So we know exactly what kind of content is currently asked for. So we basically analyze the consumption of the content. We analyze potential, let's say, breakups, so content that might not work, and we also analyze how intensively people engage with the platform. And through that, we also found out that basically, and for obvious reasons, the majority of our customers fall asleep, or our little listeners fall asleep with the Toniebox. So basically, we identified this need to develop rather bedtime routine supportive Tonies, in order to increase the attachment with the product. Because sometimes we are wrongly valued or understood as a toy company. Tonies is not a toy company anymore. With the launch of the Toniebox 2, we basically created an ecosystem supported by the, as I already mentioned, box as the entrance to the ecosystem, but also by our app that allows parents to adjust the Toniebox to the needs of their children. How successful was the app? Well, you can see here, during Christmas period, our Tonies app was the number one app across all categories. So not only in the gaming or children category, across all categories in the U.S., in the DACH region, in the U.K. and France. And of course, you might argue, of course, it is number one because most Tonieboxes are probably given as the Christmas present. However, many iPhones are also given as a Christmas present, and what do you do when you get a new iPhone? Of course, you download your standard apps like ChatGPT, probably Amazon, probably Gmail. However, Google outperformed all other apps across this Christmas period, showing the significance of the Tonies app as a supporter of the Tonies ecosystem. In order to leave more time for Q&A, I quickly run through the predictability of our customer lifetime value. Basically, we see with a box purchase, people or customers first try out one or two figurines, and then with increasing usage, we also see increasing purchase behavior and increasing customer lifetime value. Sometimes worried investors ask me, "Okay, what about the secondary market?" Of course, the secondary market means missing revenue, but we noticed that even with the box, and especially in the DACH region, even a box when sold a second or third time on the secondary market, those secondhand buyers show a similar follow-up purchase behavior of customers who bought a new box. Plus, the emotional attachment of children with the secondhand box is much higher because very often if you buy a used box, you also buy 20 used figurines with it. So the likelihood that your kid will accept a new box with those 20 figurines is much higher than if you buy a new box with just one or two figurines. This, of course, also plays a role in our profitability development over the last couple of years. Right? At the beginning, the focus was on increasing the installed base of boxes. Boxes, as I mentioned before, carry a lower gross margin of figurines. And you see here we became adjusted EBITDA margin positive for the first time in 2023, and we continue increasing profitability year over year. Why do we show adjusted EBITDA? Well, the only thing we adjust for is share-based compensation, so it is not that we hide something there. Right? Two months ago, during our CMD, we basically issued a new midterm guidance, and we expect to continue growing to EUR 1.4 billion in revenues by 2030 and to an adjusted EBITDA margin of 16%-18% in the midterm. Let me quickly dive into H1, before we go to the Q&A. I already mentioned our new midterm guidance that we shared more than EUR 1.4 billion revenue by 2030 and a midterm adjusted EBITDA margin of 16%-18%. Why are we so confident that we actually achieve it? Well, I already mentioned the installed base of Tonieboxes that continued growing. As an investor, I would not just focus on the sales of Tonieboxes. I would rather focus on the installed base, so the cumulative number of Tonieboxes in the market, and given that 70%-80% of all boxes, even those sold 10 years ago, are still active. If you then add an average figurine follow-up purchase of 20 boxes just in the first four years, and of course more figurines in the years after that, we basically can highly predict our midterm revenue and profitability development. Especially in our new growth market, the U.S., Australia, and New Zealand, but also U.K. and France. What we also announced during the Capital Markets Day is that we will launch in at least two new markets in 2027. We have follow-up growth drivers to come. During the Capital Markets Day, we also announced to launch a new box. The new Toniebox will add as a complement, not as a substitute for our flagship product, the TB2. The new box, TB Lite, will be smaller and cheaper to also offer a way for price-sensitive customers to enter the Tonie ecosystem because, as I already mentioned, our razor blade model is about increasing the installed base of boxes in order to support the figurine purchases. We also launched new partnerships with Hasbro naming Monopoly, Game of Life, and Guess Who? for Tonieplay. Last week we also launched a Pokémon series, and we were the first company that was allowed to actually bring their own audio into Pokémon. Bluey is one of the largest franchises in English-speaking markets, especially in Australia, U.S., and the U.K. Lastly, we also announced a partnership with Bayern Munich, which allows us to go into serialized sports content. For those of you who probably already have a question on subscription revenue, with the new Bayern Munich partnership, we will create new content every two weeks, following every home match of Bayern Munich in order to increase engagement amongst kids. This will be a pilot for us to first of all, test serialized content, updated content, and to see how this basically impacts the cross-selling of other products as well. Basically, I think football club, not only football clubs but sports clubs in general, they all have a desire to be in the kids' room as early as possible because we all know when do kids choose their favorite sports club? Quite likely with six, seven, eight years and this is exactly the sweet spot of Tonies. We basically do not only act as a licensee for sports clubs, but also as a marketing channel. With that, I will quickly reiterate our guidance, and give you some more detail on that. Basically, I already said we grew to EUR 630 million in 2025 and expect to grow more than 20% in constant currency. As you might know already, the first half we grew 38% and even 41% on a constant currency level. I already read some basically negative feedback why we didn't increase guidance. As you might know, 2/3 of our revenue comes from the second half of the year. Especially in Q4, we make 50% of our revenues given the Christmas period. It's impossible for us to already increase guidance, although we do not have any insights into the Christmas period. Given the predictability of our figurine sales following box purchases, we expect to achieve an adjusted EBITDA margin of 9%-11% for the full year 2026. With that, I close my presentation and looking forward to receive your questions. Oliver, over to you. Great. Thank you, Moritz. We already have a couple of questions in the chat box, and feel free to add further questions when they arise. Maybe I am going to start with two questions regarding the cash flow. There is the question, when the strong revenue and EBITDA increase will start to convert into free cash flow, and what the structural working capital needs of your company are when you reach EUR 1 billion of revenues? Maybe related to that also the question, since H1 free cash flow was highly negative, when do you expect that to reverse? In the third quarter or maybe only in the fourth quarter when you do most of your Christmas sales? Okay. This was a very long question. Maybe we can unpack it. Let me start on the free cash flow and the cash conversion. First of all, we do not guide on free cash flow, but what we, I think stated very clearly was we do expect positive free cash flow for the full year. Now, it might sound like a large step if you start with -EUR 64 million to achieve a positive free cash flow for the full year, but same with the EBITDA. Given that this first half of the year was tilted towards Tonieboxes with lower gross margin and was impacted by U.S. tariffs that just started in H1 last year, we had a low comparison base for Tonieboxes. However, for the second half of the year, given the hype launches we had with Pokémon, Bluey, the Hasbro games, and our expectations of, let us say, figurine-heavy half year, we expect this to reverse both on EBITDA level but also on free cash flow level, right? Because we needed to stock inventory, we needed to prepare for those hype launches around Toniebox Lite, around Pokémon, so we needed to get those goods in, and we expect to sell it off during the second half of the year. I think there was another question on working capital? Yes. Basically, what are your structural working capital needs? I do not know if you have a figure, working capital as a percentage of sales that you are targeting or some other kind of indication that you could give in terms of working capital development in relation to your revenue development, maybe. This number varies quarter by quarter, and this is why we do not guide on it or do not have a specific KPI how we manage working capital, because it always depends on the product pipeline, right? For June 2026, our working capital needs look artificially high compared to the previous year. Why is that? Because in the previous year, we launched the new TB 2 later in the year compared to the TB Lite this year. That means those high working capital in the previous year, they were rather towards the end of July, end of August, compared to now end of June. And only because the due date was end of June and we stocked up with TB Lites, we stocked up with Pokémon and Bluey content, this number looks artificially high. Okay. Understood. You mentioned all of the product launches which you are preparing for or have prepared for. The question is if you can give an indication for current trading in the third quarter and how was the start of Bluey and Pokémon and maybe even the Toniebox Lite. Anything you can say on that question? Well, I cannot go into details, of course. Until we see the first sales results on Toniebox Lite, this will still take some time because it will be first sold exclusively at Walmart, and we do not launch it in all markets. For example, we do not launch it in DACH and France. Not sure whether this was known before. But what I can say as a qualitative comment on Pokémon and also, for example, the Bayern Munich content, yes, all small scale, but it shows the magnitude and the success this new product can still take. On Pokémon, we basically and also retailers sold out during the pre-orders, and then we restocked. What we noticed also through the social media reception is that this does not only have a direct impact on sales, but also an indirect impact on brand awareness and, let's say, social media buzz on the company as a whole. We will share more details on that during Q3, of course. Yeah. Could you comment on the price points for the Pokémon figurines? I think you also have a yellow Pokémon box. Are they priced similar as the other figurines and boxes? Yeah. They are priced exactly the same. The figurines are also sold at EUR 17, and the box is sold as a bundle. Then, of course, we sell The Pokémon box together with the figurine to have some cross-selling opportunities as well. Okay. We have two questions regarding the Toniebox Lite. The one is whether you expect the same cohort behaviors for the Toniebox Lite as you experienced them from the Toniebox 1. Also the question why I think you answered the question why you are not selling in DACH in your conference call on the H1 numbers because the penetration is also high, but why are you only starting to sell them via Walmart in the U.S. because you also have other retail outlets? Well, this was a standard sales agreement, right? Walmart gave us the opportunity to be stocked in 800 additional point of sales if we give them the box exclusively three or four weeks in advance. It is only a timing thing, right? We will sell the box nationwide in the U.S. just at Walmart a little bit earlier because of contractual negotiations and, yeah, 800 additional points of sales that I mentioned before. Then the first part of the question was on cohort behavior differences between the TB 2 and the TB Lite, right? The TB 1 and the TB Lite. You talked a lot about the cohorts on the TB 1. The question is, what is your expectation on the Toniebox Lite regarding the cohort behavior? Do you expect less figurines sold Oh, okay. Lower price point? Okay. Actually, I thought it was a typo and you meant TB 2, but okay. The difference between TB Lite and TB 1. Well, obviously we did our market research, and we expect because of the fact that the TB Lite is also much smaller in size compared to the TB 1, we expect increased household penetration. So some existing customers might also use it as a travel box or as a second box at their grandmother's house or grandfather's. So it's very difficult to compare. But again, we wouldn't have launched the box if we wouldn't expect similar purchase behavior, at least to the TB 2. Yeah. Okay. Because time is running out and we still have a lot of questions, I am going to do it quick. The two questions regarding the EBITDA margin. The first one was, again, on the Toniebox Lite. Are you selling that with a positive margin? Yes. Yeah, sorry. Yes. The margin on the TB Lite will be relatively almost the same as the TB 2. Of course, in absolute terms, it is lower because the TB Lite is almost half the sales price, right? But we always sell it in bundles. Yeah. So we sell it with a content figurine, and then there are some customers who might buy sleeves for the TB Lite, which is highly margin accretive. But the box itself is also sold at a positive margin. Okay. Question on the USA. What level of revenue do you have to reach to get an EBITDA margin of 10%-15% in the U.S.? This is something in the future. I cannot comment on this. Okay. What is the share of production facilities in the different regions? You produce in-- Yeah, sorry. Yeah. What we did disclose is that with our Vietnam, we produce boxes in Vietnam and in China, and with the Vietnamese production supply, we could satisfy the U.S. demand. Okay, very good. Maybe the last one, sorry, we cannot go into all of the questions, but the last one is, do you see any risks of necessary write-downs maybe for the second half if you do not sell all of the new products that you have introduced? No, because the good thing is the majority of our products are timeless, right? They are children products, and you can sell them any time, right? They don't run out. Even the Bayern Munich content Tonie, and this is also the beauty of our. Actually, very good question for the end. The beauty of our business model, because the fact that we own everything in the cloud and that nothing is stored on the figurines means it's easy for us to update content. Right? So even if something is outdated or is not, let's say, compliant anymore, with literally one click, we can change the content on the figurines. And this makes the figurines, first of all, impossible to clone, right? Because there's not a memory chip in here, it's an NFC chip, and that only works on cloud with a unique code, and it also allows us to constantly update content. So let's assume the Bayern Munich content doesn't sell out this season. What do we do? We can still sell it next season, technically, with new content. So there is no risk of obsolete inventory or something in the long run because you might need to write it off in your balance sheet, but in real, there will always be a market for it. Okay, very good. [crosstalk] Those are very nice last. The [crosstalk] funny thing is those figurines, maybe as the last comment, those figurines that do not sell, of course, we discontinue them in production, but have a look at the secondary market, right? Those figurines that weren't successful at the beginning are now sold for triple, quadruple, or even more times the price on secondhand platforms just because of the limited supply. Great words. A big thank you to you for the insights and to everybody attending. We would be grateful if you could share your feedback with the company, and you will find a short feedback form in your email box. The next presentation is from Mr. Wann and starts now. You can find the dial-in link in the chat box. Thank you all for joining us today. For a few final words, I will now hand over the floor once again to Moritz. Goodbye and take care. Moritz, anything you want to add as closing remarks? No. Thanks very much for joining. Feel free to reach out to ir@tonies.com for follow-up questions or a follow-up call, and I am happy to elaborate the business model of Tonies not only in 15 minutes but in lengthy time, and looking forward to your individual questions. Thank you. Bye-bye.