The Platform Group AG

Investor Presentation • Sep 3, 2024

THE PLATFORM GROUP

Herbsikonferenz
Frankfurt, 3. September 2024

THE PLATFORM GROUP

Summary

TPG'S STRATEGY

CLEAR VISION AND ROADMAP TO BECOME EUROPE'S LEADING PROFITABLE PLATFORM GROUP

TPG has defined a clear strategy to achieve its long-term goal in becoming Europe's leading technology enabled platform

WITH TPG SOFTWARE OUR PARTNERS GET ACCESS TO GLOBAL ECOMMERCE - 22 INDUSTRIES COVERED

TPG SHARE

TPG GUIDANCE

THE PLATFORM GROUP: REVENUE DEVELOPMENT

2 THE PLATFORM GROUP

Typical Questions :-)

"DAS MIT DEM M\&A GEHT JA OFT SCHIEF..."

KANN JA SEIN, ABER SONST WÄREN DIESE UNTERNEHMEN NICHT SO ENTSTANDEN

EIN PAAR TAUSEND

SIEMENS

(1)) BOSCH

EIN PAAR HUNDERT

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."

"WARUM JETZT SO VIELE M\&A?"

WIR HANDELN ANTIZYKLISCH!

Jahr 2019

Kaufpreise von
2x Umsatz oder
$8-12 x$
EBITDA

20-30 Bieter auf einem Target

Anzahl
Akquisitionen TPG:
0

Jahr 2024

Kaufpreise von 3-5x EBITDA

Nach Due Diligence max. 3 Bieter

Anzahl
Akquisitionen TPG:
8

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

B2B eCommerce

• €60m Revenue

• 40 employees
• Located in EU

Acquisition:

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

Status:
DD:	ongoing
SPA/Signing:	Sept. 2024

B2B Forest specialist

• €2m Revenue
• 8 employees
• Located in Germany
• Acquisition with existing subsidiary Simon-ProfiTechnik / additional acquisition to scale business in niche segment

Acquisition:

• Asset Deal / 100\%

Status:
DD: done
SPA/Signing: Aug.-Sept. 2024

B2C Consumer goods

• $>€ 20 \mathrm{~m}$ Revenue
• $>100$ employees
• Located in Germany

Acquisition:

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

Status:
DD: ongoing.
SPA/Signing: Oct. 2024

"WIE KÖNNEN SIE WACHSEN, WENN DER MARKT SCHRUMPFT?"

WIR HÄNGEN VON DER PARTNERENTWICKLUNG, NICHT VON DER BRANCHE AB!

Number of Partners 2024 vs. 2023

"DAS WIRKT WIE EIN GEMISCHTWARENLADEN..."

WIR SIND KEIN GEMISCHTWARENLADEN, SONDERN WIR BETREIBEN UNSERE SOFTWARE IN VERSCHIEDENEN BRANCHEN!

WIR SIND EINE OPERATIVE HOLDING! SO HEBEN WIR DEN WERT!

"WELCHE M\&A SIND GESCHEITERT?"

TPG'S M\&A TRACK RECORD

ÜBER 24 AKQUISITIONEN SEIT 2020

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 MÖBELFIRST

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

"IST DIE AKTIE NICHT UNTERBEWERTET?"

TPG AKTIE

"IST AMAZON NICHT EIN KONKURRENTS"

WIR VERKAUFEN FÜR UNSERE PARTNER AUF >50 KANÄLE!

"WARUM MACHT EIN HÄNDLER DAS NICHT SELBST?"

HOW WE CREATE VALUE FOR OUR PARTNERS

HOW WE CREATE VALUE FOR THE PARTNER

HOW WE CREATE VALUE FOR OUR PARTNERS

HOW WE RAMP UP REVENUES FOR OUR PARTNERS

Typical Point of Sale (POS), fashion

$+27 \%$


$-49 \%$ material
$-17 \%$ HR
$-12 \%$ rents
$-15 \%$ others

$-47 \%$ material
$-6 \%$ HR
$-21 \%$ platform
$-15 \%$ others

11\% Margin
Online revenue

Financials

OVERVIEW H1 REPORT 2024 (VS. H1 2023 PRO-FORMA) CONTINUING OPERATIONS

	H1 2024	H1 2023
GMV	€ 442.5 m	€ 367.3 m
Net revenue (EUR m)	€ 231.5 m	€ 187.5 m
Other revenues (EUR m)	€ 16.4 m	€ 12.8 m
Gross Margin	$35.6 \%$	$35.7 \%$
Marketing Cost Ratio	$6.3 \%$	$6.5 \%$
Distribution Cost Ratio	$7.7 \%$	$7.5 \%$
HR Cost Ration	$5.4 \%$	$5.6 \%$
Adj. EBITDA (EUR m) (\% margin)	$\begin{aligned} & € 17.6 m \ & (7.6 \%) \end{aligned}$	$\begin{aligned} & € 13.2 m \ & (7.0 \%) \end{aligned}$
Reported EBITDA (EUR m) (\% margin)	$\begin{aligned} & € 30.0 m \ & (13.0 \%) \end{aligned}$	$\begin{aligned} & € 23.9 m \ & (12.7 \%) \end{aligned}$
Net profit (EUR m) continuing operations (\% margin)	$\begin{aligned} & € 21.7 m \ & (9.4 \%) \end{aligned}$	$\begin{aligned} & € 16.4 m \ & (8.7 \%) \end{aligned}$

Takeaways

H1 2024 with better results than internally calculated

GMV Growth +20.5\% / Revenue Growth +23.5\%: both higher increase compared to internal forecast

Distribution cost ratio with $7.7 \%$ above internal cost target-line (due to carrier cost increase) $\rightarrow$ actions in Q2

EBITDA adj. $+32.6 \%$ / EBITDA reported $+25.7 \%$ shows high effectiveness of cost reduction program

Net profit $+32 \%$ : above internal forecast.

OVERVIEW H1 REPORT 2024 (VS. H1 2023 PRO-FORMA) CONTINUING OPERATIONS

	H1 2024	H1 2023
Net profit (EUR m), continuing operations	$€ 21.7 \mathrm{~m}$	$€ 16.4 \mathrm{~m}$
Net profit (EUR m), not-continuing operations	$€-2.8 \mathrm{~m}$	$€-2.8 \mathrm{~m}$
Net profit (EUR m), total	€ 18.8m	€ 13.5m
thereof minorities	$€ 0.9 \mathrm{~m}$	$€ 1.8 \mathrm{~m}$

Earnings per share (EUR), total	€ 0.90	€ 0.59
Earnings per share (EUR), continuing operations	€ 1.09	€ 0.82

Takeaways

Earnings per share with $€ 1.09$ and growth of $+33 \%$ (continuing operations): above internal forecast

Reduction of minority results ( $€ 0.9 \mathrm{~m}$ ) due to share buy program (Lott, ApoNow, Moebelfirst, ViveLaCar)

STRONG GMV AND REVENUE GROWTH CONTINUING OPERATIONS

GMV Growth 6M

PROFITABILITY AS A KEY FOR SUSTAINABLE GROWTH CONTINUING OPERATIONS

EBITDA adj. 6 M
EBITDA reported 6 M

FROM EBITDA ADJUSTED TO EBITDA REPORTED

THE PLATFORM GROUP: NON-FINANCIAL KPI

	H1 2024	H1 2023
Number of Orders	3.749 .858	3.250 .763
Average order value (EUR)	118	114
Active Customers (LTM)	4.8 m	3.8 m
Number of Employees	794	761
Number of Partners (31.03)	12.547	10.857

Takeaways

Positive development: More partners (12.547) bring more products. More products bring more customers ( 4.8 m ), more customers bring more orders (H1: 3.7m).

Average order value increased to 118€ (2023: 114€), due to less discounts and less campaigns.

Higher staff (794 employees) due to cost efficiency program and reduction in two subsidiaries.

OUR GUIDANCE 2024

Developments H1 2024

Better H1 2024 results than internal forecast

Higher profitability / strong EBITDA development due to cost efficiency program (2023-2024)

Positive market tailwinds: B2B + B2C spending grow

Excellent conditions for new acquisitions in 2024 with fair values and badwill expectations

Seven acquisitions (01-08/2024) will boost GMV, revenue and EBITDA/net profit

INCREASE OF GUIDANCE 2024

by 29 May 2024 ("Guidance 05/2024")

CONFIRMATION OF GUIDANCE

2024 by today

BALANCE SHEET

(TEUR)

ASSETS	30.04.2024	31.12.2023
Non-current assets	128.532	120.178
Current assets	130.474	159.550
Total Assets	259.006	284.340
EQUITY/LIAB.	30.04.2024	31.12.2023
Equity	88.331	81.603
Non-current liabilities	54.641	50.811
Current liabilities	116.034	151.386
Total equity and liabilities	259.006	284.340

Takeaways

Reduction of inventory by - $£ 27 \mathrm{~m}$ (due to car sale activities Cluno/ViveLaCar)

Increase of cash to $€ 15 \mathrm{~m}$, strong reduction of liabilities in H1 2024

Constant level of bank liabilities ( $€ 62 \mathrm{~m}$ )

Equity ratio with positive development (H1: 34\%)

DEBT SITUATION

$(\epsilon \mathrm{m})$

	30.06.2024	31.12.2024 FC
Cash + Cash equivalents	€ 15.1 m	€ 11.3 m
Long term Debt (bank loans)	€ 36.2 m	€ 33.1 m
Short term Debt (bank loans)	€ 32.1 m	€ 27.9 m
Bond	€ 0 m	€ 30.0 m
Net Debt	€ 53.2 m	€ 79.7 m
LTM EBITDA	€ 28.4 m	€ 30.0 m
Leverage	1.87 x	2.65 x

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

CASH FLOW

$(\epsilon \mathrm{m})$

Cash flow from operating activities	€ 21.4 m
Cash flow from investing activities	- € 15.1 m
Cash flow from financing activities	€ 1.4 m
Cash at the beginning of the period	€ 7.5 m
Change in cash in period	$+€ 7.6 m$
Cash at the end of the period	€ 15.1 m

THANK YOUL