Slide 1: Continued organic growth and strengthened profit
Q3/2024 25 October 2024 Continued organic growth and strengthened profit 1
Slide 2: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Update on strategic priorities 4 Q&A
Slide 3: Leading confectionery company in Northern Europe
Leading confectionery company in Northern Europe Net sales 2023 (SEKbn) Net sales by country, 2023 Business segments* 8.3 30% 21% Sweden Finland 15% Candy Employees (on average) 10% The Netherlands Denmark 74% Chocolate 6% Norway Branded 2,600 6% Germany packaged Pastilles 5% The UK products Chewing
Slide 4: Q3: Continued organic growth and strengthened profit
Q3: Continued organic growth and strengthened profit Q3 Net sales 1 Further stabilised food price inflation +5.7% Organic growth 2 Total volumes were stable, with P&M growing faster than Branded packaged products SEK 2.2 bn 3 Rolling 12-month adjusted operating profit highest ever 4 Profitability in
Slide 5: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Update on strategic priorities 4 Q&A
Slide 6: Continued sales growth in Q3
Continued sales growth in Q3 Net sales Q3/2024 YTD/2024 +2.2% +3.4% +5.7% -1.5% +4.4% -0.7% -0.3% 6 328 -2.0% 2 196 2 148 6 119 Branded packaged: +1.4% Branded packaged: +2.1% Pick & mix: +18.6% Pick & mix: +11.1% Q3/23 Organic Structural FX Q3/24 2023 Organic Structural FX 2024 growth changes growt
Slide 7: Sales development
Sales development Q3 share of net sales and organic sales growth by quarter 20.5% Branded packaged products 14.8% 10.2% 10.9% 11.1% 9.3% 8.2% 6.1% 4.0% 3.6% 2.5% 1.2% 1.4% 72% Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Pick & mix 32.4% 32.7% 23.8% 24.4% 22.4% 21.6%
Slide 8: Margin-enhancements in P&M lift profit
Margin-enhancements in P&M lift profit Operating profit, adjusted • Margin-enhancing initiatives in P&M and absence of LY one-time Wilko cost drive Q3/2024 YTD/2024 profit improvement 9.7% 10.8% 9.8% 10.3% • Stable gross profit in branded packaged -3 -3 652 238 segment 42 61 • Full effect of high co
Slide 9: Strong improvement in P&M; Branded profit stable
Strong improvement in P&M; Branded profit stable Operating profit, adjusted, by segment Q3/2024 YTD/2024 13.3% 12.0% 12.9% 11.5% 216 -25 586 -60 191 526 Branded packaged Q3/23 var. Q3/24 2023 var. 2024 -1.5% 7.7% 0.8% 7.2% 55 47 113 126 Pick & mix 13 -8 2023 var. 2024 Q3/23 var. Q3/24 9
Slide 10: Increased investments in core brands key driver vs LY
Increased investments in core brands key driver vs LY SG&A Q3/2024 YTD/2024 19.7% 21.2% 21.6% 23.9% +42 +190 51 465 101 1 511 95 -6 423 2 -11 1 321 Q3/23 Items FX Net SG&A Q3/24 2023 Items FX Net SG&A 2024 affecting affecting comparability comparability 10
Slide 11: Strategic building blocks to deliver margin expansion
Strategic building blocks to deliver margin expansion Greenfield Net facility: On Revenue hold as of Perfect Manage- September Factory ment 2024 VIP+ Branded cost mix and Swedish reduction volume Pick & mix business Pick & mix at Covid-19 and cost volumes breakeven and value inflation 2022–2023 Mid-
Slide 12: Free cash flow further improved: YTD SEK +236m vs LY
Free cash flow further improved: YTD SEK +236m vs LY Cash flow 20 Q3/2024 229 -38 211 6 -18 199 • Improved Q3 Free cash flow vs LY driven by improved working capital and lower capex investment • Improved working capital from Cash flow Changes in Investments Free cash Other Cash flow Cash flow invent
Slide 13: Strong financial position: Net debt/EBITDA 1.6x
Strong financial position: Net debt/EBITDA 1.6x Financial position • Net debt/EBITDA successive improvement again at an all-time low, and well below target of 2.5x • Net debt SEK 1.8bn driven by cash generation • Unutilised access to cash of SEK 4.0bn, including EUR 160 million for greenfield invest
Slide 14: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Update on strategic priorities 4 Q&A
Slide 15: Update on greenfield plant project
Update on greenfield plant project Investment on hold and reassessment initiated • Reassessment initiated due to increased risk relating to energy supply with resulting changes to the timing of Background planned start-up • In 2022, the plan to invest in a greenfield facility and a related closure o
Slide 16: Further results from optimising product portfolio
Further results from optimising product portfolio Update on SKU reduction Reduction of Key areas to drive SKU reduction SKU’s close to Branded packaged goods 30% • ABCD classification and regular delisting of D SKU’s (since 2021 baseline) • Recipe and raw materials harmonisation • Semi-finished prod
Slide 17: Growing our brands through new occasions
Growing our brands through new occasions “ Brand consideration* Skippers Pipes enters candy bags Our strategy is +29% FROM TO strongly • Countlines, single personal use • Mini’s in bags, shared occasion influenced by • 7% of Danes buy countlines • 77% of Danes buy candy bags Volume the focus to grow
Slide 18: Q&A
Q&A 18
Slide 19: Thank you!
Thank you! UPCOMING IR EVENTS 14 Nov Plant visit to Ljungsbro, Sweden (arranged by Danske Bank) 29 Jan Year-end report 2024 11 Mar Annual and sustainability report 2024 10 Apr AGM 2025 CONTACT US ir@cloetta.com press@cloetta.com sustainability@cloetta.com
Slide 20: Appendix
Appendix 20 | Cheetta
Slide 21: Greenfield facility – Pro forma profit and loss Q3
Greenfield facility – Pro forma profit and loss Q3 Q3/2024 Q3/2024 Q3/2024 Other items Pro-forma Greenfield affecting Reported excl. Adjusted comparability greenfield Net sales 2.196 - 2.196 - 2.196 Cost of goods sold -1.493 6 -1.499 - -1.499 Gross profit 703 6 697 - 697 Selling expenses -268 - -268
Slide 22: Important information
Important information • 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 con