The Platform Group (TPG) investor relations material

Business performance and outlook

• Customer confidence has rebounded after initial concerns from geopolitical events, with positive trends in B2B order volume and strong performance in the machine sector, though the furniture sector remains challenging due to market and logistics cost pressures.

• All five business segments are growing, with an expanding partner network and expectations to meet full-year guidance.

• Q1 showed positive net revenue and EBITDA development, with stable or slightly declining EBITDA margin due to marketing and gross margin cost drivers.

• Organic growth accounted for over 71% in Q1, with a focus on increasing partners and products rather than acquisitions.

M&A and financing strategy

• Several M&A targets are in progress, including a significant retail acquisition in Belgium/Luxembourg and the pharma company AEP, both expected to close in the coming months.

• Two finalized financing options are available, one for €80 million (2-year term) and another with a higher amount and longer duration, with a decision imminent.

• Debt leverage reduced from 2.7 in 2023 to 2.0 in Q1 2024, with a target to maintain this level even after new M&A activity.

• A €5 million bond buyback program will start in July for six months, potentially increasing in volume.

• Fewer but more significant M&A deals are planned for 2024, with 5-6 signings and 1-2 divestments expected.

Cost management and operational efficiency

• AI-driven cost-cutting and efficiency programs are being implemented, particularly in software development and workforce allocation.

• These initiatives are expected to significantly improve operational efficiency and reduce costs.