Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Investor Day (April 2025)
126 slides from Haypp Group Ab's investor day presentation, Apr 3, 2025
Slide 1: Stockholm, Sweden 3rd April 2025
Stoekholm, Sweden = 3rd April 2025 HAY PP GROUP
Slide 2: Agenda CMD Schedule
Agenda CMD Schedule Presentation – Section 1-3 1 Achievements post CMD 2023 13:30 – 14:15 Q&A Expected Market Developments 2 25 min break & Opportunities Presentation – Section 4 3 Regulatory Environment 14:35 – 15:45 Q&A 4 Strategy for Success 15 min break Presentation – Section 5-6 5 Delivering in
Slide 3: Key Takeaways from Haypp Group CMD 2025
Key Takeaways from Haypp Group CMD 2025 1. RRPs generally and NPs in particular 3. Regulation will increase demands on have a long runway ahead retailers creating further competitive advantage for Haypp due to our long-term 2. There are many benefits to the consumer focus on compliance and engagemen
Slide 4: 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 Consumer CUSTOMER INSIGHTS 2025-04-03 Capital Markets Day 2025 4
Slide 5: Relative risk of nicotine product categories
Relative risk of nicotine product categories % 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
Slide 6: The impact of reduced risk products
The impact of reduced risk products Significantly lower smoking prevalence in Sweden with highest quit rate European smoking prevalence & quit % 60 50 40 30 20 10 0 SE NL DK FI IE LU BE PT MT CZ EU DE ES IT SI EEHU FR PL SK CY LT AT LV ROHR EL BG 27 Current smoker Stopped smoking 2025-04-03 Capital
Slide 7: Global transformation
Global transformation Strong market dynamics… …resulting in attractive growth for nicotine pouches Global market for nicotine pouches and snus, EUR bn CAGR 2024–28 Strong demand for less harmful products – has become normal CAGR +20% Legislation favours modern nicotine products – has become ingraine
Slide 8: Achievements post CMD 2023
Achievements post CMD 2023 Gavin O’Dowd CEO Nechecelive@iicc@ummmme = HA YPP GROUP
Slide 9: Assessing the 2025 targets
Assessing the 2025 targets Sales of SEK5bn by 2025 Adjusted EBIT margin of • Shortfall due to ZYN shortage in the USA 5 to 7% prior to re-investment • 5-7% adj EBIT margin in Core & Growth segments • Reinvestment in Emerging segment 2025-04-03 Capital Markets Day 2025 9
Slide 10: External factors affecting expectations
External factors affecting expectations Haypp US market share for products launched LTM 35% Better than expected 30% • Stronger US NP market growth 25% • Innovation in US market well-received by consumers 20% 15% 10% 5% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Worse than expected 24 24
Slide 11: Operational achievements
Operational achievements ✓ Grew NP market share across all markets* ✓ Successfully entered vape and HnB categories in Europe ✓ Increased profit margins while improving offering to consumers and brand owners ✓ Further strengthening our Media & Insights offering ✓ Continuing to lead in compliance with
Slide 12: Our journey of transformation
Our journey of transformation ERP AND Project Jarvis: New global ERP and standardized integration platform connecting E-coms, I N T E G R AT I O N ERP and Warehouses in a unified structure. Global geographical support. L AY E R Project V3: Modernizing and standardizing our European store sites using
Slide 13: Financial targets 2028
Financial targets 2028 Targets 2028 Sales Sales growth range of 18-25% annually Profitability Adjusted EBIT 5.5 % +/- 150 bps 2025-04-03 Capital Markets Day 2025 13
Slide 14: Today's Presenters
Today’s Presenters Gavin O’Dowd Svante Andersson Peter Deli Markus Lindblad CEO, Chief Executive Officer COO, Chief Operating Office & Deputy CEO CFO, Chief Financial Officer Head of Legal & External Affairs 2025-04-03 Capital Market Day 2025 14
Slide 15: Expected Market Developments & Opportunities
Expected Market Developments & Opportunities Peter Deli
Slide 16: RRP transformation is unstoppable
RRP transformation is unstoppable The global nicotine market is transforming, driven by evolving consumer preferences and regulatory changes GLOBAL – NUMBER OF NICOTINE USERS AND CONSUMER DISTRIBUTION BY CATEGORY1 In thousands Nicotine Pouches Vapor HnB Snus Cigarettes Comments +1,0% +1,5% 151 595 1
Slide 17: 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 18: US & UK expected to account for most of NP consumer growth
US & UK expected to account for most of NP consumer growth Projected NP Consumers (2028E) +5.2 11,5 2028 6,3 2024 +0.7 +0.4 +0.7 +0.2 +0.1 +0.1 1,1 1,0 0,9 0,3 0,5 0,4 0,3 0,4 0,3 0,1 0,1 0,0 US UK Sweden Germany Norway Switzerland Austria Source: Euromonitor, FDA, UKGOV, Arthur D. Little. Note: mil
Slide 19: 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 2025-04-03 Capital Markets Day 2025 19
Slide 20: Regulatory
Regulatory one Markus Lindblad Head of Legal & External Affairs “YY
Slide 21: Regulatory environment
Regulatory environment License to operate • Regulators want to reduce harm from tobacco (smoking) use, question is the method to achieve this goal • Example of IQOS – US & Europe regulatory agenda driven by one company • Haypp setting the example (age verification/product verification) as market lea
Slide 22: Regulatory environment: US
Regulatory environment US – federal regulatory environment stable with states driving change • FDA Marketing Granted Orders (MGO) of first NP products important milestone • Digital marketing restrictions in line with Haypp operating model • Menthol ban, nicotine restrictions in cigarettes unlikely t
Slide 23: Regulatory environment: UK
Regulatory environment UK – committed to a risk reduction strategy • New regulation will support more sustainable market conditions • Restrictions on underage appealing nicotine products • Engaged with British Standards Institution (BSI) and set product standards in line with Haypp global standards
Slide 24: Regulatory environment: Europe
Regulatory environment Europe – TPD3 drives a positive environment in 2030 • Expect NP category, flavors and online will exist, with consumer base growing every year creating greater political weight • Online likely to be domestic, in line with Haypp’s operating model • DE remains committed to a sci
Slide 25: Legal Age Access Only for the future
Legal Age Access Only for the future • Regulation expected to restrict access earlier in buying process Out of store In store • Age verification is essential, while avoiding any product communication with Level of age verification underage visitors • Online will be increasingly important for media a
Slide 26: Scale advantages in compliance & regulation
Scale advantages in compliance & regulation • The Group has built the necessary processes and infrastructure • Systems rigorous and fully tested • Red flag processes in place to detect unusual behavior • Real time reporting • Complex implementation with low transactional costs • Haypp recognized as
Slide 27: Stockholm, Sweden 3rd April 2025
Stockholm, Sweden =3rd April 2025 HAY PP»>GROUP
Slide 28: Strategy for Success
Strategy for Success Gavin O’Dowd GEO, Chief Execubl¥es@itiget ““. p> 98 8 ee iiesee spec aN YPP GROUP
Slide 29: 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, reliable delivery • Compliant with local regulation S
Slide 30: Strategy for success
Strategy for success 2025-04-03 Capital Markets Day 2025 30
Slide 31: Haypp's Scale Economies Shared philosophy
Haypp’s Scale Economies Shared philosophy • Haypp’s business model is primarily focused on creating ever improving value for consumers • Constant growth further increases the benefits of shopping with us • The model also generates increasing value for brand owners and for regulators • Haypp’s shareh
Slide 32: Strategy for success: Search
Strategy for success Search 2025-04-03 Capital Markets Day 2025 32
Slide 33: Haypp's unique category drives different approach
Haypp’s unique category drives different approach Nicotine even in its RRP forms has dependence risk Traditional search providers have non-nicotine advertising policies These digital advertising restrictions are increasingly reflected in regulation Organic search is the only sustainable approach 202
Slide 34: Key success factors for SEO
Key success factors for SEO Relevance User experience Content Reach Widest & unique assortment Bespoke platform Global scale Public relations Top search engine ranking 2025-04-03 Capital Markets Day 2025 34
Slide 35: SEO remains a key strategic priority
SEO remains a key strategic priority Content on site Assortment SEO Tech development External engagement 2025-04-03 Capital Markets Day 2025 35
Slide 36: 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 2025-04-03 Capital Markets Day 2025 36
Slide 37: Fundamental forces affecting Haypp
Fundamental forces affecting Haypp COMPETITORS REGULATION Utilizing Haypp’s unique capabilities for short-term and long-term benefits Knowledge – Rebuilt platforms Credibility – Insights & Scale – Leveraging AI • leveraging 10 yrs of experience product testing • prime links from leading media • actu
Slide 38: Scaling content - HayppWriter
Scaling content - HayppWriter The Challenge Result – more products designed quickly & accurately • 7 markets with local legislation and languages across 16 store fronts with 10,000+ • New products launched and published in near real-time web pages and 2.5mn words • Content adapted to changing consum
Slide 39: 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 40: Our proprietary AI tool
Our proprietary AI tool HayppWriter transforms raw product data, into high-quality, SEO-optimized content at scale 2025-04-03 Capital Markets Day 2025 40
Slide 41: Potential futures of Search
Potential futures of Search Landscape Expectations • Extremely stable for over 2 decades – • Paid marketing of nicotine products will remain restricted undisputed dominance by Google • All dominant search tools will continue to optimize for end • LLM search largest threat to traditional user instead
Slide 42: Key takeaways from Search
Key takeaways from Search Category conditions continue to New era in technology brings become clearer with organic opportunities for those positioned positions determining the winner and prepared 2025-04-03 Capital Markets Day 2025 42
Slide 43: Strategy for success: Assortment
Strategy for success Assortment 2025-04-03 Capital Markets Day 2025 43
Slide 44: Consumers demand continuously improving products
Consumers demand 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% 202 2 202 3 2
Slide 45: Haypp's consumer base – early adopters & large
Haypp’s consumer base – early adopters & large Sweden – NP share of market, Haypp Active Consumers Haypp vs Offline 1,400,000 60% 1,200,000 50% 1,000,000 40% 18 - 24 months avg 800,000 30% 600,000 20% 10% 400,000 0% 200,000 okt/20 okt/21 okt/22 okt/23 okt/24 jan/21 jul/22 jan/24 jan/20 jul/20 jul/21
Slide 46: Understand and access consumers
Understand and access consumers Significant demand from brand owners Desire to understand and Appetite to launch products to navigate rapidly changing Haypp’s trend setting consumer consumer behavior base 2025-04-03 Capital Markets Day 2025 46
Slide 47: Industry's largest Insights provider
Industry’s largest Insights provider CONCEPT LAUNCH Multidisciplinary +4000 data points Direct access to Team on every customer each customer AWARENESS CONSIDERATION Powered by our 4000+ data points per consumer, direct consumer feedback and AI/machine learning TRIAL REPURCHASE Provide brand owners
Slide 48: Insights demand continuously expanding
Insights demand continuously expanding Number of Insights services 90 80 70 60 50 40 30 20 10 0 2020 2021 2022 2023 2024 Transactional Data Consumer Insights Combined 2025-04-03 Capital Markets Day 2025 48
Slide 49: Industry's largest Insights provider
Industry’s largest Insights provider CONCEPT M&A GOVERNMENTS LAUNCH AWARENESS ACTIONABLE INSIGHTS CONSIDERATION TRIAL RESEARCHERS REGULATORS REPURCHASE LOYAL 2025-04-03 Capital Markets Day 2025 49
Slide 50: US – Longitudinal cohort studies
US – Longitudinal cohort studies Supporting PMTA submissions and surveillance To characterize the longitudinal effect of real-world use of nicotine pouches on U.S. adults use of combustible cigarettes ~10K New NP Consumers each month From New NP Consumer To Experienced NP Consumer First NP 3 6 12 Pu
Slide 51: Understand and access consumers
Understand and access consumers Significant demand from brand owners Desire to understand and Appetite to launch products to navigate rapidly changing Haypp’s trend setting consumer consumer behavior base 2025-04-03 Capital Markets Day 2025 51
Slide 52: 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 Richest awareness offer with broad reach SPONSORED LISTING MAIL COMMUNICATION One of our primary trial drivers Temporarily boost new
Slide 53: 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 54: Supercharging growth
Supercharging growth Media & Insights growing 2x speed of Group revenue • Driven by further improvements in Haypp’s offerings • Demand for service in Growth Markets • High single-digit percentage of sales 2025-04-03 Capital Markets Day 2025 54
Slide 55: Next Gen for Media
Next Gen for Media MEDIA INSIGHTS Touch points throughout Extensive, historical full consumer journey consumer data 2025-04-03 Capital Markets Day 2025 55
Slide 56: Strategy for success: Price
Strategy for success Price 2025-04-03 Capital Markets Day 2025 56
Slide 57: Haypp remains the most valuable partnership
Haypp remains the most valuable partnership Benefits of working with Haypp are greater in high volume markets and will trend to 15% as markets mature • No returns • No field force • No fridges/gantries ~15% Aggregated cost saving • No printed point of sale material by working with Haypp • 1 point of
Slide 58: 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 2025-04-03 Capital Markets Day 2025 58
Slide 59: 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 60: Haypp helps consumers choose brands & helps brand owners understand consumers
Haypp helps consumers choose brands & helps brand owners understand consumers Consumers Assortment Price Brand owners The most attractive Unique launch and Ground-breaking Profitable partnership consumer base activation platform Insights capabilities 2025-04-03 Capital Markets Day 2025 60
Slide 61: Strategy for success: Convenience
Strategy for success Convenience 2025-04-03 Capital Markets Day 2025 61
Slide 62: Convenience – an underestimated element of scale & retention
Convenience – an underestimated element of scale & retention Onboard new suppliers and Orders fulfilled in fast, reliable Answer questions the consumer products, managing stock levels & transparent way has before, during or after purchase EFFIC IENT EXECU TION OF ALL THE AB OVE 2025-04-03 Capital Ma
Slide 63: The specifics of our categories
The specifics of our categories Unique logistical characteristics • Low weight to value – pick/pack/ship friendly product • Low degrees of consumer returns (< 0,4%) • Limited seasonality makes demand forecasting accurate • Relatively limited number of SKU’s compared to other products sold online The
Slide 64: The scalable convenience chain
The scalable convenience chain Haypp Warehouse Haypp Automated Warehouse • Low fixed cost, high variable cost/order • Higher fixed cost, lower variable cost/order • Longer lead times at peak demand • Improved lead times and efficiency, scaling very well with volumes • Modular and upgradeable 5% Ware
Slide 65: Convenience – What we built yesterday for today
Convenience – What we built yesterday for today Inbound and product information Shipping • Product Information Management (PIM) • Transport administration system integrated into V3 • ERP • Enables choice of best shipper for each locality, reducing shipping time and cost with accuracy Warehouse • Aut
Slide 66: What we're building today for tomorrow
What we’re building today for tomorrow Speed, accuracy and cost will remain primary elements of consumer satisfaction and retention Inbound and product information Shipping • AI replenishment/supply planning tool reduces working capital • Implement more shipping options in all markets to meet evolvi
Slide 67: Consumer satisfaction key to long term growth
Consumer satisfaction key to long term growth 67 Haypp average NPS across its markets 40% ~80% Almost 40% of new consumers get recommended from a friend Retention on second order and forward NPS 72 NPS 58 NPS 61 NPS: Asking our consumers if they are likely to recommend us to a friend or a colleague
Slide 68: Loyalty fuels consumer base growth
Loyalty fuels consumer base growth Continuously growing consumer base… …increasing AOV and repurchase rates as we retain consumers Attract new customers Give them reasons to return 700,000 US Zyn Shortage +42% 600,000 +31% +12% 500,000 Increase in average 6yr CAGR for Increase in average AOV order f
Slide 69: Strategy for success
Strategy for success Continuously improving Search, Assortment, Price and Convenience at scale requires the correct technology and infrastructure 2025-04-03 Capital Markets Day 2025 70
Slide 70: Haypp infrastructure
Haypp infrastructure Efficient & agile Scalable Replicable Expandable Bespoke processes and systems combined with select top-class suppliers and products 2025-04-03 Capital Markets Day 2025 71
Slide 71: Our journey of transformation
Our journey of transformation New global ERP and standardized integration platform connecting E-coms, JARVIS ERP and Warehouses in a unified structure. Global geographical support. Modernizing and standardizing our European stores on the same processes, toolsets V3 and UX framework. New base for agi
Slide 72: Our journey of transformation: Where we are
Our journey of transformation SE V3 Migrating the SE/CH sites to new E-com platform, integrating new media solution. Where we are Haypp EU V3 Haypp EU migration to new E-com. Breaking out AT to standalone site. Now Vapeglobe V3 Norway V3 UK WH First site on All tree EU NOR V3 Insourcing UK new E-com
Slide 73: New infrastructure benefits
New infrastructure benefits Consumer impacts Long term benefits • Search - staying ahead of the curve in evolving search landscape • Legal Age Access Only • Search - extending our content automation capabilities, leveraging AI at • Build once, deploy everywhere scale across our stores • Streamlining
Slide 74: Opportunities created by data
Opportunities created by data Already using today Structured data is key • Algorithms guiding our consumers to the most relevant products, choices, • Advanced well beyond other companies of and offers Haypp’s size due to external usage for past 5 • Propensity scoring & frequency models within our CR
Slide 75: The Potential of Brand
The Potential of Brand 2025-04-03 Capital Markets Day 2025 76
Slide 76: The Potential of Brand
The Potential of Brand Realities in the marketplace Why Haypp Group Opportunity & benefits RRP is rapidly moving from niche to mainstream Communicating category benefits difficult for brand • Strong emotional connection to the category with a sense of shared owners due to regulations community • Fra
Slide 77: The Potential of Brand
The Potential of Brand Realities in the marketplace Why Haypp Group? Opportunity & benefits The largest NP retailer in the world We have a longstanding relationship with our Deep passion for the category consumers, based on trust: • Knowledgeable • Responsible • Independent We understand the consume
Slide 78: The Potential of Brand
The Potential of Brand Realities in the marketplace Why Haypp Group? Opportunity & benefits Increased brand strength Further increasing the value we can provide to our • Accelerating loyalty partners • Reinforcing organic search • Brand equity transfer • Amplifying word of mouth Increasing long-term
Slide 79: Summary of our strategy
Summary of our strategy • Prioritize perpetually improving the consumer offer • Continuously increase value for brand owners and regulators relative to any other retailer • Prioritize long-term improvement over short- term boost • Utilize technology to release benefits of scale • Further strengthen
Slide 80: Stockholm, Sweden 3rd April 2025
Stockholm, Sweden = 3rdApril 2025 HAY RP GROUP
Slide 81: Delivering in Markets
Delivering in Markets Svante Andersson COO, Chief Operating Officer & Deputy CEO HAY PP GROUP
Slide 82: Remarkable performance across markets since IPO
Remarkable performance across markets since IPO +40% 61% CAGR • CAGR of 40 percent in NP category, NP now 51% accounting for ~2/3 of Group volume 42% 34% • Increased market share in all geographies1 mn cans 59 • Served more than 1.1 million consumers in 2024 44 32 22 • Built robust and consistent bu
Slide 83: Sweden – Delivering in highly competitive home market
Sweden – Delivering in highly competitive home market Sweden - NP 2024 Sweden provides an actionable template for SOM how to win in other markets Share of Market 32% • Challenging market dynamics: • Low offline retail margins E-SOM Ecom Channel Share 85% • High offline retail distribution • Masterin
Slide 84: US – Major growth potential in complex environment
US – Major growth potential in complex environment • Approximately 50mn nicotine consumers of which 6 million used NP in 2024, 3x more than in 20211 • Number of nicotine pouch consumers expected to double over next 5 years1 • Six sizeable (multi-billion-dollar) brand owners present in NP category •
Slide 85: US – Largest opportunity with Haypp already well-positioned
US – Largest opportunity with Haypp already well-positioned US - NP 2024 • Well positioned within Search, Assortment, Price and Convenience SOM Share of Market 2.5% • Further advancing key aspects of consumer experience is expected to generate material growth E-SOM Ecom Channel Share 85% • Complex r
Slide 86: Search – Driving awareness & adapting to future search landscapes
Search – Driving awareness & adapting to future search landscapes Full compliance with MGO product search requirements Adapting to AI driven search with expectation of US first Strong channel share and low online penetration provides for opportunity to drive awareness • Clearer brand identity • Test
Slide 87: Assortment - Value increasing with innovation
Assortment - Value increasing with innovation Haypp US market share for products launched LTM 35% 30% 25% • Rapidly evolving market with increasing assortment driving fragmentation 20% • Consumer guidance to relevant recommendations 15% • Products independently tested for quality 10% • Increased Med
Slide 88: Price – Scale economies shared with consumers
Price – Scale economies shared with consumers • High offline retail margins provides strong opportunity to retain material price gap and support online migration • Augmented with increasing media and insights revenue • Economies of scale: inbound pricing, fulfilment and fixed overheads Focused appro
Slide 89: Convenience – Consumers want fast, reliable and transparent
Convenience – Consumers want fast, reliable and transparent High level of e-commerce maturity sets bar for expectations • Fast • Reduced average lead time by 2 days since 2023, expecting further reduction • Exploring distributed small, focused warehouses in high density regions • Same day delivery c
Slide 90: Team – Reinforcing key local capabilities
Team – Reinforcing key local capabilities Accelerating progress to further improve consumer experience and navigate external environment • Dedicated local US team • Consumer focus • External focus • Key infrastructure and knowledge from Europe shared with US • Material ramp-up from mid-2025 2025-04-
Slide 91: Key takeaways US - Ideal conditions
Key takeaways US - Ideal conditions • Largest NP market and growing fast • Environment rapidly changing to be optimal for Haypp’s proven business model • Conditions favourable for long-term value creation • Expanding key local capabilities • Targeting material increase in market share by 2028 • Will
Slide 92: UK – NP market in infancy but growing rapidly
UK – NP market in infancy but growing rapidly UK - NP 2024 SOM Share of Market 4.0% E-SOM Ecom Channel Share 65% • Expected to be 2 largest NP market nd NP YoY • 3x current number of NP consumers forecasted by 2028 Volume growth 97% (9% of total nicotine consumers)1 • Generally supportive reduced ri
Slide 93: UK – Well-positioned to benefit from category and channel growth
UK – Well-positioned to benefit from category and channel growth Execute on fundamentals for consumer experience • Expectation that paid digital advertising will be further restricted; already have strong organic position • Continue to broaden product offerings utilizing full European assortment • R
Slide 94: Norway – A showcase in how we benefit from regulation
Norway – A showcase in how we benefit from regulation • Highly regulated environment with stringent restrictions on marketing, retail display and product packaging • Consumer wants exploration Norway - NP 2024 • Taking market share while improving profitability SOM Share of Market 18% E-SOM Ecom Cha
Slide 95: Norway – Operating in a highly regulated environment
Norway – Operating in a highly regulated environment Haypp’s stores Traditional retailers • Brand visibility • Closed doors • Product explanation • Plain packaging • Product guidance • No guidance • Pack size options • Limited trial • Price awareness • No brand building • Brand introduction 2025-04-
Slide 96: DACH – Strong consumer demand despite regulatory constraints
DACH – Strong consumer demand despite regulatory constraints High potential region with strong consumer demand DACH - NP 2024 • Germany – category growth restrained by regulatory uncertainty SOM • Closed to domestic sales of NP Share of Market 21% • Regulatory clarity expected at latest with TPD3 E-
Slide 97: DACH – Potential German opening will trigger growth
DACH – Potential German opening will trigger growth Medium term plans +58% 6.6 CAGR • Key elements of Search, Assortment and Price already in place 4.7 • Launched Austrian site in February mn cans • Further enhancement of Convenience needed 3.4 • Accelerate channel share 1.7 • Capture greater portio
Slide 98: Emerging
Emerging 1 Vaping and HnB in existing European markets 2 On NP, Vaping and HnB in new European markets hold Investment guidance of 1-2% of net sales 1% actual 2025-04-03 Capital Markets Day 2025 99
Slide 99: Emerging – Vaping & HnB in existing European markets
Emerging – Vaping & HnB in Vape & HnB Launch Timeline existing European markets Late Mid Late 2022 2023 2023 2022 2023 2024 Rapidly growing volume but very low market share • Sizeable consumer base in existing markets with approximately 8mn vape and 2mn HnB 0.7 consumers1 0.5 • Organic search remain
Slide 100: Vape & HnB in existing European markets
Vape & HnB in existing European markets • Accelerating consumers transition away from smoking via a multi-category offering • Positioned to benefit from potential upcoming legislation, e.g. disposable ban in UK • Utilize Media & Insights offering across multi-category • Continue to invest due to lon
Slide 101: New European markets – Ready to go at the right time
New European markets – Ready to go at the right time • Regulatory uncertainty remains, but likely to be clarified • Developing category knowledge and partnerships in all RRP categories • New infrastructure facilitates market entry • Haypp ready but waiting for appropriate conditions 2025-04-03 Capit
Slide 102: Remarkable Growth Opportunity and Proven Business Model
Remarkable Growth Opportunity and Proven Business Model Growth • US opportunity expected to deliver exceptional long-term shareholder value priorities • Many European markets showing strong potential, particularly UK 1. US • New RRP categories further extend the growth runway • Well proven business
Slide 103: Peter Deli: CFO
Peter Deli : CFO, Chief Financial Office
Slide 104: What does this mean?
What does this mean? Tech infrastructure will allow rapid Tailwind of 2 powerful secular trends adaption across consumer sites to improve Haypp’s brand & visibility US is key market for investment due to Regulatory environment stabilizing with magnitude of potential returns (but favorable shift in e
Slide 105: KPI's to measure success
KPI’s to measure success Net sales Adjusted EBIT Target: 5.5% +/-150 bps adj. EBIT in 2028 Target: 18-25% CAGR (’24 → ’28) (Non-linear improvement, ’25-27 relatively (Lower in 2025 due to US Zyn shortage) heavier US investment) Haypp will invest in growth as long as strong returns are expected 2025-
Slide 106: Haypp Group Sales
Haypp Group Sales Total Consumption HAYPP GROUP Online Penetration SALES Channel Share 2025-04-03 Capital Markets Day 2025 107
Slide 107: Segment dynamics
Segment dynamics Consumption Haypp Group Haypp Group Growth Market Share Market Share (CAGR ’24-’28) ‘24 target ‘28 Core NP ~15% ~27% ~29% Core Snus ~ -8% ~13% ~13% US ~20% ~2-3% ~4-5% Growth Europe ~35% ~8% ~10% Emerging* ~8% ~0.1% ~0.3% *SE Vape, UK Vape, DE Vape and UK HNB 2025-04-03 Capital Mark
Slide 108: Net sales to reach SEK 7-9 bn by 2028
Net sales to reach SEK 7-9 bn by 2028 Transformation from snus to NP …and expected to continue overall over last 4 years sales acceleration Net Sales (SEK bn) Net Sales (SEK bn) 7-9 bn CAGR 18-25% Vape, HNB CAGR +16,4% 3,7 Vape, HNB 3,2 +25% - 2,6 30% 2,3 +47% 3,7 NP 30% 62% NP 85% Snus -6% Snus -8%
Slide 109: Segment dynamics
Segment dynamics Consumption Haypp Group Haypp Group Share of Growth Market Share Market Share incremental (CAGR ’24-’28) ‘24 target ‘28 revenue Core NP ~15% ~27% ~29% +30% Core Snus ~ -8% ~13% ~13% -10% US ~20% ~2-3% ~4-5% +65% Growth Europe ~35% ~8% ~10% +10% Emerging* ~8% ~0.1% ~0.3% +5% *SE Vape
Slide 110: What could this look like for Haypp?
What could this look like for Haypp? Net sales range from SEK 7 bn to 9 bn in 2028 7 bn 7.5 bn 9 bn 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% 2025-04-03 Capital Markets Day 2025 111
Slide 111: Segment profitability
Segment profitability Demonstrated ability to increase profitability and grow the business Core segment Growth segment Total Group adj. EBITDA adj. EBITDA 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 2024 * *includes SEK 33mn / 0.9 % inves
Slide 112: Core Markets – the key profit contributor
Core Markets – the key profit contributor Sustained profitability with increasing sales Key dynamics towards 2028 ppt effect on adj EBITDA Margin on goods sales ~ 3.0 9.0% 8.5% 2.5 Product mix impact 1-2% 8.0% 2.0 7.5% Media & Insights 1-2% 1.5 7.0% 2.6 2.1 2.4 6.5% Fulfilment costs scale ~ 1.0 6.0%
Slide 113: Core Markets – the key profit contributor
Core Markets – the key profit contributor Sustained profitability with increasing sales Key dynamics towards 2028 ppt effect on adj EBITDA Margin on goods sales ~ 3 9.0% 8.5% 2.5 Product mix impact 1-2% 8.0% 2 Long-term steady state adj. EBITDA margin at low double-digits 7.5% Media and insights 1-2
Slide 114: Growth Markets – the sales growth driver
Growth Markets – the sales growth driver Scale supports profit improvement Key dynamics towards 2028 ppt effect on adj EBITDA 1.2 15% Margin on goods sales - 3-4% 1.0 10% Product mix impact - 5% 0.8 0% Media & Insights + 2-3% 0.6 1.0 -5% 0.4 0.8 -10% Fulfilment costs scale + 2-3% 0.2 0.5 -15% Market
Slide 115: Mid-single digit adjusted EBIT margin expected at end of the period
Mid-single digit adjusted EBIT margin expected at end of the period 2024 2028E Core 6-8 Sales CAGR:5-9% 1.9 Adjusted EBITDA increase 2-4ppt 1-2 5.5 +/- 150 bps Growth 5.6 Sales CAGR:35-45% Adjusted EBITDA increase 4-6ppt 3.7 Emerging Sales CAGR:30-50% Adjusted EBITDA -1% of group sales Adj. Depr./ A
Slide 116: 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 H1 support the P&L 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 Q
Slide 117: 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 2025-04-03 Capital Markets Day 2025
Slide 118: Financial Targets 2028
Financial Targets 2028 Targets 2028 Sales Sale growth range of 18-25% annually Profitability Adjusted EBIT 5.5 % +/- 150 bps The board of Haypp Group expects to use cash flows for the company’s Dividend policy continued expansion 2025-04-03 Capital Markets Day 2025 119
Slide 119: People and Culture
People and Culture Team • Deep expertise across nicotine and e-commerce • Understand the operating model • Clear ownership to deliver the vision • Diverse range of skills and backgrounds (36 nationalities) Culture of deep cooperation • No hierarchy • Teaming up • Driven be innovation • Going the ext
Slide 120: Foundation of Haypp's Success: Performance
Foundation of Haypp’s Success Performance 2025-04-03 Capital Markets Day 2025 121
Slide 121: Foundation of Haypp's Success: Operating model
Foundation of Haypp’s Success Operating model 2025-04-03 Capital Markets Day 2025 122
Slide 122: Foundation of Haypp's Success: Technology and processes
Foundation of Haypp’s Success Technology and processes 2025-04-03 Capital Markets Day 2025 123
Slide 123: Foundation of Haypp's Success: People and culture
Foundation of Haypp’s Success Operating model People and culture 2025-04-03 Capital Markets Day 2025 124
Slide 124: Foundation of Haypp's Success: Inspiring a smoke free future
Foundation of Haypp’s Success Operating model Inspiring a smoke free future 2025-04-03 Capital Markets Day 2025 125
Slide 125: Key Takeaways from Haypp Group CMD 2025
Key Takeaways from Haypp Group CMD 2025 1. RRPs generally and NPs in particular 3. Regulation will increase demands on have a long runway ahead retailers creating further competitive advantage for Haypp due to our long-term 2. There are many benefits to the consumer focus on compliance and engagemen
Slide 126: Thank you!
Thank you! hayppgroup.com HAY PP GROUP