The Platform Group AG

Investor Presentation • Nov 25, 2024

THE PLATFORM GROUP

Equity Forum Frankfurt
$25^{\text {th }}$ November 2024

THE PLATFORM GROUP

Update

OUR MANAGEMENT STRUCTURE

Keyments

Consumer Goods
Freight Goods
Industrial Goods
Service and Retail Goods

LATEST DEVELOPMENTS (3 MONTH)

LATEST DEVELOPMENTS (3 MONTH)

Acquisition of Wehrmann (B2B machine platform)

Final migration of ViveLaCar/Cluno (car subscription platform)

LATEST DEVELOPMENTS (3 MONTH)

Increase of Guidance

(Guidance 09/2024)

Increase scalability of our TPG One Software System
(new API, new CMS, new frontend 01/2025)

WITH TPG SOFTWARE OUR PARTNERS GET ACCESS TO GLOBAL ECOMMERCE - 23 INDUSTRIES COVERED

RESEARCH / COVERAGE

LATEST UPDATE	INSTITUTION	RECOMMENDATION	PRICE TARGET (EUR)
NOV 05, 2024	FIRST BERLIN	Initiation	16.00 (Initiation)
OCT 28, 2024		Initiation	n/a
OCT 10, 2024	BIN	STRONG BUY (Initiation)	13.60 (Initiation)
SEP 30, 2024	Pareto Securities	Credit Comments	n/a
SEP 30, 2024	WARBURG RESE ARCH	BUY (old: BUY)	16.00 (old: 16.00)
AUG 26, 2024	ODDO BHF	BUY (old: BUY)	12.50 (old: 12.50)
AUG 26, 2024	amontega	BUY (old: BUY)	13.00 (old: 13.00)
APR 08, 2024	HAuCK aUfHÄUSER LAMPE	BUY (old: BUY)	17.00 (old: 17.00)

TPG SHARE

Financials

OVERVIEW 9M REPORT 2024 (VS. 9M 2023 PRO-FORMA) CONTINUING OPERATIONS

	9M 2024	9M 2023
GMV	€ 608.4 m	€ 469.3 m
Net revenue (EUR m)	€ 371.2 m	€ 284.5 m
Other revenues (EUR m)	€ 20.1 m	€ 15.2 m
Gross Margin	$35.4 \%$	$35.2 \%$
Marketing Cost Ratio	$6.4 \%$	$6.6 \%$
Distribution Cost Ratio	$7.8 \%$	$7.6 \%$
HR Cost Ratio	$5.4 \%$	$5.6 \%$
Adj. EBITDA (EUR m) (\% margin)	$\begin{aligned} & € 24.6 m \ & (6.6 \%) \end{aligned}$	$\begin{aligned} & € 14.5 m \ & (5.1 \%) \end{aligned}$
Reported EBITDA (EUR m) (\% margin)	$\begin{aligned} & € 39.8 m \ & (10.7 \%) \end{aligned}$	$\begin{aligned} & € 27.1 m \ & (9.5 \%) \end{aligned}$
Net profit (EUR m) continuing operations (\% margin)	$\begin{aligned} & € 28.3 m \ & (7.6 \%) \end{aligned}$	$\begin{aligned} & € 20.3 m \ & (7.1 \%) \end{aligned}$

Takeaways

GMV growth-rate: $+30 \%$
Revenue growth-rate: $+31 \%$

Higher increase compared to internal forecast: More customers, more partners, more consolid. companies. Positive gross margin development in 2024.

Distribution cost ratio with $7.8 \%$ above internal cost target-line (carrier cost increase in 9M 2024). Target ratio guidance with $7.6 \%$ in 2025

EBITDA adj. $+69 \%$ / EBITDA reported $+47 \%$ shows high effectiveness of 2023-2024 cost reduction program.

Net profit contin. operations $+39 \%$ : consistent with internal forecast.

OVERVIEW 9M REPORT 2024 (VS. 9M 2023 PRO-FORMA) CONTINUING OPERATIONS

	9M 2024	9M 2023
Net profit (EUR m), continuing operations	$€ 28.3 \mathrm{~m}$	$€ 20.3 \mathrm{~m}$
Net profit (EUR m), not-continuing operations	$€-2.8 \mathrm{~m}$	$€-2.9 \mathrm{~m}$
Net profit (EUR m), total	€ 25.5m	€ 17.4m
thereof minorities	€ 1.4 m	$€ 2.1 \mathrm{~m}$
Earnings per share (EUR), total	€ 1.26	€ 0.86
Earnings per share (EUR), continuing operations	€ 1.39	€ 1.02

Takeaways

Earnings per share with $€ 1.39$ and growth of $+36 \%$ (continuing operations): above internal forecast.

FROM EBITDA ADJUSTED TO EBITDA REPORTED

DEBT SITUATION

$(\epsilon \mathrm{m})$

	30.09 .2024	31.12 .2024 FC	31.12 .2025 FC
Cash + Cash equivalents	$€ 17.2 \mathrm{~m}$	$€ 10.4 \mathrm{~m}$	$€ 14.5 \mathrm{~m}$
Long term Debt (bank loans)	$€ 32.3 \mathrm{~m}$	$€ 33.1 \mathrm{~m}$
Short term Debt (bank loans)	$€ 37.8 \mathrm{~m}$	$€ 29.3 \mathrm{~m}$	$€ 107.6 \mathrm{~m}$
Bond	$€ 30.0 \mathrm{~m}$	$€ 30.0 \mathrm{~m}$
Net Debt	$€ 82.9 \mathrm{~m}$	$€ 82.0 \mathrm{~m}$	$€ 91.1 \mathrm{~m}$
LTM EBITDA	$€ 32.7 \mathrm{~m}$	$€ 32.0 \mathrm{~m}$	$€ 41.0 \mathrm{~m}$
Leverage	2.5 x	2.6 x	2.3 x

Target Leverage 2025
$1.5-2.3 \times$ LTM EBITDA

THE PLATFORM GROUP: NON-FINANCIAL KPI

	9M 2024	9M 2023
Number of Orders (period)	5.1 m	4.1 m
Average order value (EUR)	121	115
Active Customers (LTM)	4.5 m	3.8 m
Number of Employees (30.09.)	892	771
Number of Partners (30.09.)	12.981	11.683

Takeaways

Positive development: More partners (12.981) bring more products. More products bring more customers ( 5.1 m ), more customers bring more orders ( $9 \mathrm{M}: 5.1 \mathrm{~m}$ ).

Average order value increased to 121€ (2023: 115€), due to less discounts and delisting of low price-products.

Higher staff ( 892 employees) due to acquired companies

Total growth revenue: $€ 87 \mathrm{~m}(=100 \%)$

2 THE PLATFORM GROUP

Typical Questions :-)

"M\&A IS A DIFFICULT CASE..."

MAYBE, BUT WITHOUT M\&A THESE COMPANIES WOULD NOT BE BIG

SOME THOUSAND

SIEMENS

(1)) BOSCH

SOME HUNDRED

CONSTELLATION SOFTWARE INC. M\&A STRATEGY

MARK LEONARD, CEO

"One of our directors has been calling me irresponsible for years. His thesis goes like this: CSI [Constellation Software Inc.] can invest capital more effectively than the vast majority of CSI's shareholders, hence we should stop paying dividends and invest all of the cash that we produce, even if that means lowering our hurdle rates. I used to argue that we needed to maintain our hurdle rates because dropping them for a few marginal capital deployments would cause the returns on our entire portfolio to drop. The evidence supported my contention, so we kept the rates high for small and mid-sized [...] acquisitions and made very few exceptions for large [...] acquisitions. The by-product of this discipline has been a perennial inability to invest all the cash that we generate."

"WHY SPEEDING UP M&A?"

WE ARE ANTICYCLICAL

Year 2019

Enterprise Value
$2 x$ Revenue or
$8 x$ EBITDA

20-30 Buyers per target

Acquisitions of TPG:
0

Year 2024

Enterprise
Value
3-5x EBITDA

After Due Diligence:
Max. 3 Buyers

Acquisitions of TPG:

INVESTMENT CRITERIA FOR TARGETS

TPG's seeks to acquire 3-8 platforms annually based on a refined target profile and a follow-through mentality.

M\&A EXECUTION OUR M\&A FUNNEL

"HOW CAN YOU GROW BY DECLINING MARKETS?"

WE GROW BY PARTNERS, NOT BY INDUSTRY

Number of Partners 2024 vs. 2023

"SEEMS LIKE A MIX OF MANY SHOPS..."

WE HAVE ONE SOFTWARE - AND WE RUN WITH THIS SOFTWARE DIFFERENT PLATFORMS

WE ARE AN OPERATIVE HOLDING - AND SCALE GROWTH

"WHICH M\&A FAILED?"

TPG'S M\&A TRACK RECORD

OVER 24 ACQUISITIONS SINCE 2020 - NO M\&A FAILED

AT A GLANCE LEADING MACHINE TRANSACTION PLATFORM IN EUROPE

KEY PERFORMANCE INDICATORS

2016
Foundation

25
Employees

€ 30m
Revenue 2024e

Barcelona
Headquarter

500
Logistic partners

7.000
Listed machines

17
Markets

DING MORI

HIGHLIGHTS

SUCCESSFUL DEVELOPMENT WITH TPG'S POST-MERGER APPROACH

IN A NUTSHELL

THE PREFERRED PARTNER FOR ONLINE SALE OF LUXURY SECONDHAND FURNITURE

HIGHLIGHTS

TPG POST-MERGER APPROACH AS A VALUE DRIVER FOR MOEBELFIRST

PARTNERS

AT FIRST SIGHT

THE PLACE TO GO WHEN IT COMES TO LUXURY AND PREMIUM FASHION AND ACCESSORIES

HIGHLIGHTS

FROM PURE ECOMMERCE WITH LOSSES TO PLATFORM WITH PROFITS

"IS AMAZON A COMPETITOR?"

WE SELL ON MORE THAN 50 CHANNELS

"WHY DOES THE LOCAL RETAILER DOES NOT MAKE ECOMMERCE HIMSELF?"

HOW WE CREATE VALUE FOR OUR PARTNERS

HOW WE CREATE VALUE FOR THE PARTNER

OUR GUIDANCE 2024

Developments 9M 2024

Better Q3 2024 results than internal forecast / Strong beginning of Q4 2024

Higher profitability due to cost efficiency program (2024) and scalable cost structure

Positive market tailwinds: B2B + B2C spending grow

Excellent conditions for new acquisitions in 2024 and 2025 with fair values

Increased scalability of our TPG One Software Platforms allows us to connect partners faster and enter new industries within $<4$ month

M\&A PIPELINE Q4 2024 / Q1 2025

B2C Commerce

• Industry: Opticians
• Country: Germany
• Focus on high margin
  opticians and online platform for opticians

Acquisition:

• 50,1\% Acquisition
• Management remains
• Call-/put options 2027

Status:
DD:	done
SPA/Signing:	Jan. 2025

B2B Finance platform

• Industry: Finance
• Country: Germany
• Focus on finance platform solutions and finance B2Bclients

Acquisition:

• 50,1\% Acquisition
• Management remains
• Call-/put options 2027

Status:
DD:	done
SPA/Signing:	Dec. 2024

B2C Commerce

• Industry: Luxury
• Country: USA
• Focus on luxury clothing and bags, 90\% UScustomers, $>500$ stores connected

Acquisition:

• 50,1\% Acquisition
• Management remains
• Call-/put options 2027

Status:
DD: ongoing/open
SPA/Signing: Jan/Feb. 2025

TPG GUIDANCE (09/2024)

OUR FUTURE STRATEGY

LEADING POSITION	POWER OF SCALE NEW MARKETS	CONTINUED M\&A EXPANSION	GEOGRAPHICAL EXPANSION
Becoming the No. 1 Platform in Europe	Expanding into 30 industries by 2025	3-8 Acquisitions per year	Increasing geographical footprint outside of Germany
Organic growth higher than market		Long-term goal of $50 \%$ organic / $50 \%$ inorganic growth	Near-term France and Italy, long-term U.S. and India

IR CONTACT

Financial CALENDAR

DATE
EVENT

NOW 25, 2024
German Equity Forum 25 - 27 November 2024, Frankfurt/Main

NOW 22, 2024

Publication Quarterly Statement (call-date Q3)

NOW 19, 2024

CIC Forum 19 - 21 November 2024, Paris

NOW 13, 2024

MKK - Munich Capital Market Conference, Munich

09-2024

Equity Forum Fall Conference 2 - 3 September 2024, Frankfurt/Main

REINHARD HETKAMP (CFO)
Investor Relations
ir@the-platform-group.com

THANK YOUL