Swiss Water Decaffeinated Coffee, Inc. · TSX:SWP
Swiss Water Decaffeinated Coffee — Q2 2025 Earnings Presentation
26 slides from Swiss Water Decaffeinated Coffee's earnings presentation, August 2025
Slide 1: Swiss Water Decaffeinated Coffee Inc. Investor Presentation Q2 2025
Swiss Water Decaffeinated Coffee Inc. Investor Presentation Q2 2025
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements to be materially different from any
Slide 3: Why Invest?
Why Invest? Growing Industry. Profitable Operations. Proven Execution. Significant Future Growth. 2
Slide 4: Good coffee. Good choice. Good business.
Good coffee. Good choice. Good business. 3
Slide 5: A Global Leader In Sustainable & Specialty Decaffeination for 20+ Years
A Global Leader In Sustainable & Specialty Decaffeination for 20+ Years Decaffeination Tolling Logistics We ship, handle, and We buy, decaffeinate with our We decaffeinate green coffee warehouse regular and proprietary 100% chemical- on behalf of our premium decaffeinated green coffee free water pro
Slide 6: Swiss Water Process: Amazing Coffee Without Caffeine
Swiss Water Process: Amazing Coffee Without Caffeine Process Revenue Gross Profit Adj. EBITDA Volume In 000’s In 000’s In 000’s 40,000 30,000 18,000 Growth 35,000 30,000 25,000 16,000 14,000 +6% 10-year CAGR 20,000 12,000 25,000 10,000 20,000 15,000 8,000 15,000 10,000 6,000 10,000 4,000 5,000 5,000
Slide 7: Water + Temperature + Time
Water + Temperature + Time • Our unique, proprietary, multi-stage, chemical free, trusted process delivers high quality decaf coffees that are Better Flavour. indistinguishable from caffeinated counterparts in taste and aroma Better Aroma. • Our process ensures all coffee certifications remain intac
Slide 8: Zero Chemicals Ever.
Zero Chemicals Ever. Developed through years of technological & operational expertise, process refinement and capital investment 7
Slide 9: People Drink Decaf Because They Love The Taste of Coffee
People Drink Decaf Because They Love The Taste of Coffee. Why do you drink decaf coffee? 70% say because they enjoy the taste. And they expect it to taste as good as regular coffee. 8
Slide 10: Decaf is In Demand.
Decaf is 3+ People who order decaf are In Demand. almost twice as likely to drink 3+ cups of coffee per day than other coffee drinkers Driven by 61% demographics: Of decaf drinkers want (and will pay for) better quality, great tasting coffee 18-24 year-olds rank higher in decaf consumption than any
Slide 11: The World's Only Branded Decaf Coffee Method
The World’s Only Branded Decaf Coffee Method We’ve invested in building a premium decaf coffee brand through cost-effective, targeted regional media, print, PR and co-marketing events with customers Brand Strength Drives Driving Higher Margin Sales Consumer Choice for Retailers Swiss Water Decaf com
Slide 12: Resilient Across Markets & Regions
Diversified, Blue-Chip Customer Base with Global Reach Resilient Across Our top 3 customers Revenue is well- Markets & account for ~36% distributed across our Regions of revenue customer base 11
Slide 13: Our Markets
Our Markets 60+ International Markets Volume Growth by Region: North America Asia Pacific Europe/MEA + 7% (3Y CAGR) + 9% (3Y CAGR) + 17% (3Y CAGR) 13 12
Slide 14: Our Delta B.C. Facility
Our Delta Facility provides strategic access to both domestic and International markets. Our Delta B.C. Facility 24/7 operations Construction of new facility completed in 2021; 2nd line added in 2023 Capex: ~$125M Leased facility with attractive purchase option 14 13
Slide 15: Continuous Improvement Through Efficiency
Continuous Improvement Through Efficiency Expanded decaffeination capacity to meet growing demand Driving margin improvement & volume growth: 80% 75% 70% 72% 94% 93% 95% • Six Sigma methodologies • Statistical process controls • Lean manufacturing 2018 2019 20201 2021 2022 20232 2024 initiatives Uti
Slide 16: Warehousing and Logistics
Warehousing and Logistics Belgium Germany British Columbia Ontario Ready-to-roast Washington Texas New Jersey Swiss Water® California Decaf coffees are warehoused across North America and Europe 15
Slide 17: Multiple Revenue Streams
Multiple Revenue Streams In 000’s GREEN REVENUE PROCESS REVENUE DISTRIBUTION REVENUE $140,000 $45,000 $14,000 $40,000 $120,000 $12,000 $35,000 $100,000 $10,000 $30,000 $80,000 $25,000 $8,000 $60,000 $20,000 $6,000 $15,000 $40,000 $4,000 $10,000 $20,000 $2,000 $5,000 $0 $0 $0 2018 2019 2020 2021 2022
Slide 18: Accelerating Growth through Strategic Brand Investment
Accelerating Growth through Strategic Brand Investment 43% of US decaf drinkers Short Term Initiatives recognize Swiss Water • Refresh brand identity Decaf – accelerating brand awareness • Digital marketing optimization • Deepen business development efforts across key regions Building on strong bran
Slide 19: Exploring New Revenue Streams
Exploring New Revenue Streams Developing the premium decaffeinated coffee marketplace • Relaunching customer online marketplace Exploring caffeine capture and sale • Caffeine market is moving away from synthetic caffeine • Natural caffeine prices remain high due to demand • Incremental EBITDA: $3 –
Slide 20: Strong Financial Growth
Strong Financial Growth 12 months ended Dec 31 In $000’s (except per share amounts) 2024 2023 2022 2021 Revenue $ 173,129 $ 166,277 $ 176,935 $ 125,076 Gross Profit 26,190 18,798 26,088 17,611 Operating Income 11,055 5,630 13,381 6,686 Net (loss) Income 1,269 (528) 2,387 496 Adjusted EBITDA1 14,318
Slide 21: Executive Leadership & Board of Directors
Executive Leadership & Board of Directors Frank Dennis Iain Carswell Owen Horn Marisol Pinzon Alan Wallace Frank Dennis Eric Yanagi Robert B. Johnston PRESIDENT & CEO CFO VP | OPERATIONS MD | TRADING DIRECTOR, CHAIR OF DIRECTOR, DIRECTOR DIRECTOR & DEVELOPMENT THE BOARD PRESIDENT & CEO Sam Hameed Er
Slide 22: Balanced Capital Allocation
Balanced Capital Allocation Increasing § New facility financed with debt and Company’s FCF (now complete) Free Cash Flow (FCF) § Minimal ongoing MOB CAPEX ($1-$2M) § Interest costs being reduced Debt Reduction § Principal debt repayments of $6M/year of construction loans (current $54M) § Target of 2
Slide 23: De-Levering Balance Sheet
De-Levering Balance Sheet June 30, 2025 Multiple of (in millions) EBITDA (1) Notes Working Capital ABL(2) $ 47 Will fluctuate with NY’C’ Price Construction Loans $ 54 5.0x Target: 2.5x – 3.0x $6M repayment/year Equity Value (3) $ 42 3.9x (1) Non-GAAP financial measures. See Q2’25 MD&A for additional
Slide 24: Q2 2025 Results
Q2 2025 Results 3 months ended June 30 6 months ended June 30 In $000’s except per share amounts 2025 2024 $ Change % Change 2025 2024 $ Change % Change Revenue $ 67,695 $ 43,372 $ 24,323 56% $ 129,967 $ 82,102 $ 47,865 58% Cost of sales (62,447) (35,707) (26,740) 75% (117,432) (69,322) (48,110) 69%
Slide 25: Investment Summary
Investment Summary § Global Decaf Market Offers Strong Growth Potential § Unique Chemical-Free Decaffeination Process § The World’s Only Branded Decaf § New Facility Expands Capacity and Enhances Margins § Free Cash Flow Enables Debt Reduction and Operational Growth 23
Slide 26: Contact Us
Contact Us: Iain Carswell, Chief Financial Officer Swiss Water Decaffeinated Coffee Inc. 604.420.4050 investor-relations@swisswater.com investor.swisswater.com
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