Slide 1: 2022 results
2022 results 15 July 2022 Henri de Sauvage-Nolting, President/CEO Frans Rydén, CFO Nathalie Redmo, IR
Slide 2: Agenda
Agenda 1. Quarterly update 2. New greenfield facility 3. Financials 4. Strategic update 5. Q&A 2
Slide 3: Key messages
Key messages Double-digit growth and improved profitability • Communicated pricing effective in Q2; new pricing announced for H2 given further inflation • Global supply chain challenges managed without material disruptions • 6th quarter of growth in Branded, further actions to grow pastille and gum
Slide 4: New greenfield facility
New greenfield facility 4
Slide 5: Consolidation of manufacturing network into a new greenfield facility
Consolidation of manufacturing network into a new greenfield facility • Rationale of the investment • Facilitate further growth;15,000 tonnes extra capacity • Enable significant cost savings through consolidation and automation • Reduce greenhouse gas emissions (SBTi) Ljungsbro • Union consultations
Slide 6: Financials
Financials 6 | Chetta
Slide 7: Net sales
Net sales Double-digit growth driven by volume and pricing Second quarter 6 months +14.5% +12.3% + 2.6% 1 626 + 2.8% 3 166 + 11.9% + 9.5% 1 420 2 818 Branded packaged + 8.2% Branded packaged + 5.4% Pick & mix + 24.4% Pick & mix + 24.1% Q2 ’21 Organic growth FX Q2 ’22 2021 Organic growth FX 2022 7
Slide 8: Sales development
Sales development Branded, % of Q2 ‘22 sales 9.3% 8.2% 7.3% 3.6% 3.6% 2.5% 4.0% 2.5% 0.6% 1.4% 1.7% -2.5% -3.6% -6.3% 75% Q1 ’19 Q2 ’19 Q3 ’19 Q4 ’19 Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Pick & mix, % of Q2 ’22 sales 79.6% 32.4% 18.1% 21.6% 23.8% 24.4% 25% 6.4% 0.0%
Slide 9: Operating profit, adjusted
Operating profit, adjusted Solid profitability despite high inflationary environment • Profit driven by higher Operating profit, adjusted volumes, favourable mix and 6 months Second quarter pricing, partly offset by higher input costs. 10.1% • On track with communicated -42 10.0% -57 320 pricing, ne
Slide 10: Operating profit, adjusted by segment
Operating profit, adjusted by segment Branded profit +150 bps by favourable mix; Pick & mix profitable for a fifth consecutive quarter Second quarter 6 months 11.2% 12.7% 11.6% 12.8% 154 303 123 31 254 49 Branded packaged Q2 ’21 var. Q2 ’22 2021 var. 2022 1.2% 1.9% -3.2% 2.1% 17 Pick & mix 8 37 4 4
Slide 11: SG&A
SG&A Stable SG&A despite strong volume growth in Pick & mix and sustained marketing investments Second quarter 6 months 28.2% 25.8% 27.1% 26.1% -19 -64 -2 -2 -401 -10 -763 -21 -7 -41 -420 -827 Q2 ’21 Items FX Net SG&A Q2 ’22 2021 Items FX Net SG&A 2022 affecting affecting comparability comparability
Slide 12: Cash flow
Cash flow Increased working capital driven by seasonal inventory build-up and inflation 190 Q2 ‘22 -268 • Inventories driven by seasonal build-up 1 and inflation. Safety stock increased given -58 -136 global supply volatility. -309 • Receivables driven by higher sales and -444 pricing. Cash flow Cha
Slide 13: Financial position
Financial position Continued strong financial position • Net debt in line with last year despite higher working capital and increased dividend • Leverage at 2.4x; down vs. last year and below long-term target of 2.5x • All existing loan facilities have been extended with one year to 2024-2026 at unc
Slide 14: Greenfield facility ‒ Q2 financial impact
Greenfield facility ‒ Q2 financial impact One-off costs in line with previous communication Impact financial Q2 2022, Greenfield Other items Q2 2022, reporting reported facility affecting adjusted • SEK -225m recognised in comp. Q2 includes impairments of Cost of goods sold -1,267 -222 2 -1,047 SEK
Slide 15: Strategic update
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Slide 16: Growth leadership in Branded packaged products
Growth leadership in Branded packaged products Candy Refreshment Chocolate 61% of total sales 15% of total sales 19% of total sales Focus Focus Focus • Premium innovations • Penetration focus • Royal relaunch in Finland • E-commerce • Breath refresh Mynthon • Kexchoklad core growth • International M
Slide 17: Innovations driving valorisation and naturalness
Innovations driving valorisation and naturalness Fruit-based candy recruits new younger consumers to G&B The new Fruit & Licorice launch attracts youngsters even stronger. Fruit-based candy; all time high market share G&B Norway Already 20% of whole G&B Norway The 1st candy with 50% fruit - Maximisi
Slide 18: Regain penetration and growth in refreshment
Regain penetration and growth in refreshment Increase brand penetration by enticing the young Maximising presence and activities to seize mobility recovery Läkerol Lemon – an instant success! Change in mobility³ vs January 2020, % • Top 3 flavor within the younger TG¹ FY’21 Q1’22 Q2’22 FY’21 Q1’22 Q
Slide 19: Focus on lower costs and greater efficiency
Focus on lower costs and greater efficiency Net Revenue Portfolio optimisation Perfect factory Management Focus Focus Focus • First phase completed in core • Complexity reduction • Waste Reduction markets • Delisting low margin SKU’s • Raw material harmonisation • Visualfabriq promo Evaluation tool
Slide 20: Approved science-based targets; global warming well below 1.5°C
Approved science-based targets; global warming well below 1.5°C Scope 1; 5% Scope 2; 6% Cloetta has committed to reduce its greenhouse gas emissions within 315,168 scopes 1, 2, and 3* by 46 per cent by tCO2e in 2019 2030 from a 2019 base year. *Scope 1: direct emissions from own manufacturing, Scope
Slide 21: Q&A
Q&A 21
Slide 22: Thank you!
Thank you!
Slide 23: Appendix
Appendix 23
Slide 24: Greenfield facility – Pro forma profit and loss
Greenfield facility – Pro forma profit and loss Impact financial reporting Q2 2022, Greenfield facility Q2 2022, reported and other items adjusted affecting comp. Net sales 1,626 1,626 Cost of goods sold -1,267 -220 -1,047 Gross profit 359 -220 579 Selling expenses -246 -246 General and admin expens
Slide 25: Disclaimer
Disclaimer • This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an