Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Planet MicroCap Showcase: Vegas 2025
26 slides from Haypp Group Ab's conference presentation, April 2025
Slide 1: Haypp Group
Haypp Group Planet MicroCap Showcase: Vegas 2025 1
Slide 2: Haypp’s Investment Case
Haypp’s Investment Case Aligned with two powerful secular trends: Philosophy of scale economies shared 1) adoption of reduced risk nicotine benefits consumers & suppliers/brand products; 2) consumers shift to online owners. As Haypp’s scale grows, so do supporting 18-25% topline CAGR its competitive
Slide 3: Haypp’s assortment focused on RRPs
Haypp’s assortment focused on RRPs % risk of cigarette smoking HAYPP GROUP OFFERING 100 80 60 40 20 0 Cigarettes Cut tob. Bidis Cigarillos Water pipe Smokeless Cigars US chewing US MST Snus Heat-not-Burn Nicotine Non-tob. nic tob. tob. (RoW) tob. vaping pouches Murkett R, Rugh M and Ding B. Nicotine
Slide 4: Haypp in the right markets leading the right category
Haypp in the right markets leading the right category Number of RRP consumers Number of RRP consumers Current* markets Other European markets** +12 44 +7 15 +7 32 +3 25 8 +4 Nicotine Pouches 3 21 17 1 24 +2 13 0 9 22 0 8 Vapor 21 7 9 11 HnB 2 5 +3 5 1 2021 2024 2028E 2021 2024 2028E *Includes analyz
Slide 5: Online penetration - room to increase in US & UK
Online penetration - room to increase in US & UK O N L I N E P E N E T R AT I O N % - 2 0 2 4 49* 36 22 14 7 3 NP NP NP NP NP Vape 5
Slide 6: Integral position in the value chain
Integral position in the value chain Continually improving assortment of innovative products CONSUMERS SUPPLIERS Media outreach & Distribution centres E-commerce DATA Insights on Consumers CONSUMER INSIGHTS 6
Slide 7: Haypp’s constants across markets
Haypp’s constants across markets Consumers demand Regulators mandate • Significant, consistent value • Legal Age Access Only • Choice/assortment • Appropriate limits on nicotine strengths and restrictions on packaging & flavor descriptors • Fast, accurate, transparent & reliable delivery • Compliant
Slide 8: Strategy for success
Strategy for success - Search. Dominate organic search driving near free consumer acquisition while preparing for an AI driven future - Assortment. Provide the widest range of quality assured products on the market combined with newest legal innovations - Price. Offer consumers the best value in the
Slide 9: Search dominance
Search dominance Controlling the digital AAA locations Generating high share of free traffic Paid 3% Organic 97% Organic Paid 2 effects of search dominance: • Marketing costs now 0.5% revenue • Barrier to entry due to traffic to AAA locations 9
Slide 10: Haypp’s SEO positions are barriers to entry
Haypp’s SEO positions are barriers to entry Dominating organic NP visibility New consumers New Consumers ~7.4x 500,000 20% CAGR ~5.3x 400,000 ~4.5x ~4.4x 300,000 200,000 100,000 - Closest competitor UK Sweden USA Norway 2022 2023 2024 Source: Company information * Compared to online retailers in USA
Slide 11: Consumers demand wide-range of continuously improving products
Consumers demand wide-range of continuously improving products Haypp market share of products launched LTM Number of new NP launches 8.6 New SKUs 45% 200 tried per Year 8.9 6.3 40% 35% New SKUs New SKUs 150 tried per tried per Year Year 30% 25% SE 100 20% UK US 15% 50 PRODUCT EXPLORATION 10% 5% 0 0%
Slide 12: Haypp’s Media eco-system
Haypp’s Media eco-system Activation tools (examples) On-site marketing with +3M impressions per month Awareness BRAND PAGES ON SITE COMMUNICATION SEARCH BAR VISIBILITY 2-4x Richest awareness offer with broad reach share of trials SPONSORED LISTING MAIL COMMUNICATION One of our primary trial drivers
Slide 13: Industry’s largest Insights provider
Industry’s largest Insights provider CONCEPT M&A GOVERNMENTS LAUNCH AWARENESS ACTIONABLE INSIGHTS CONSIDERATION TRIAL RESEARCHERS REGULATORS REPURCHASE LOYAL 13
Slide 14: Sharing scale benefits with consumers
Sharing scale benefits with consumers 1 2 3 Material revenue from Sharing 15% savings Scale economies in Media & Insights with brand owners distribution and overheads Pricing advantage to the consumer 14
Slide 15: Sustainable lower price for consumers
Sustainable lower price for consumers Haypp offers lower prices Market model differs by geography than physical POS Offline retail Core Growth Market type margin NP Media & Insights contribution ~30% ~50% discount discount ~20% discount ~40% discount Core Mid High Growth High Medium and rapidly grow
Slide 16: Scale advantages in compliance & regulation
Scale advantages in compliance & regulation • Haypp has built the necessary processes and infrastructure • Legal Age Access Only is the priority • Systems are rigorous and fully tested • Red flag processes in place to detect unusual behavior • Real time reporting • Complex implementation with low tr
Slide 17: Remarkable performance since IPO
Remarkable performance since IPO Nicotine pouch volume growth Net Sales Adjusted EBIT +18% 4 CAGR 160.0 70 3.7 +40% 3.5 140.0 60 CAGR 3.2 +48% 3 +47% 120.0 CAGR 50 2.6 2.5 2.3 2.3 100.0 SEK mn SEK bn 1.7 mn cans 40 2 0.7 1.2 80.0 30 59 134.5 1.5 60.0 20 44 1 40.0 78.2 32 1.6 -6% 22 1.4 1.4 1.3 58.5
Slide 18: Measuring success through 2028
Measuring success through 2028 Net sales Adjusted EBIT Target: 5.5% +/-150 bps adj. EBIT in 2028 Target: 18-25% CAGR (2024 → 2028) (Non-linear improvement, 2025-2027 (Lower in 2025 due to US Zyn shortage) relatively heavier US investment) Haypp will invest in growth as long as strong returns are exp
Slide 19: Net sales to reach SEK 7-9bn by 2028
Net sales to reach SEK 7-9bn by 2028 Transformation drivers leading to expected overall sales acceleration Net Sales (SEK bn) 7-9bn CAGR 8 18-25% • NP dominated product mix Vape, HNB 7 • Increasing contribution from Growth 6 segment markets of US, UK and DACH 5 +25% - 4 3.7bn 30% • Category growth a
Slide 20: What could this look like for Haypp?
What could this look like for Haypp? Net sales range from SEK7bn to SEK9bn in 2028 7bn 7.5bn 9bn CAGR 18% CAGR 20% CAGR 25% US market CAGR 17% US market CAGR 21% US market CAGR 26% Haypp market Haypp market Haypp market share – 3% share – 4% share – 5% 20
Slide 21: Segment profitability
Segment profitability Demonstrated ability to increase profitability and grow the business Core segment Growth segment Total Group Adj. EBITDA & margin Adj. EBITDA & margin Adj. EBITDA & margin 227 206 192 174 12 135 1% 102 -8% -16% -57 8% 8% 9% -72 4% 4% 6%* 2022 2023 2024 2022 2023 2024 2022 2023
Slide 22: Mid-single digit adj. EBIT margin expected in 2028
Mid-single digit adj. EBIT margin expected in 2028 2024 2028E Core 6-8 Sales CAGR: 5-9% 1.9 Adj. EBITDA margin increase 2-4ppt 1-2 5.5 +/- 150 bps Growth 5.6 Sales CAGR: 35-45% Adj. EBITDA margin increase 4-6ppt 3.7 Emerging Sales CAGR: 30-50% Adj. EBITDA -1% of group sales Adj. Depr./ Adj. EBIT Adj
Slide 23: Haypp will maintain a healthy balance sheet
Haypp will maintain a healthy balance sheet Healthy balance sheet Working capital optimized to CAPEX back to <2% after support the P&L H1 2025 Net debt/adjusted EBITDA, Net working capital (SEK mn) CAPEX (as % of net sales) times 6 300 6% 5 5% 4 200 4% 3 3% 2 100 2% 1 1% 0 0 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 24: Capital Allocation Principles
Capital Allocation Principles Haypp Group expects to generate strong returns in online RRP’s Continue organic investment into the strategic segments of 1 our current geographies 2 Explore M&A opportunities to accelerate expansion 3 No expectation of excess capital 24
Slide 25: Haypp’s Investment Opportunity
Haypp’s Investment Opportunity Share price & volume 120 200,000 Robust growth outlook with multiple drivers & 175,000 100 sustainable competitive advantages combined with 150,000 material barriers to entry 80 125,000 Shareholder base shifting toward the US with investors recognizing the long-term po
Slide 26: Thank you!
Thank you! hayppgroup.com HAYPP GROUP