Humble Group Ab · OMXSTO:HUMBLE
Humble Group Ab — Investor Day (September 2024)
106 slides from Humble Group Ab's investor day presentation, September 2024
Slide 1: Welcome to Humble Group's Capital Markets Day
Welcome to Humble Group’s Capital Markets Day Simon Petrén, Group CEO Capital Markets Day 2024
Slide 2: Today's presenters
Today’s presenters SIMON PETRÉN MARCUS STENKIL JOHAN LENNARTSSON JACOB MOTZFELDT SHEREE YOUNG ASHLEY SYMONDS DAVID RALPH GROUP CEO GROUP COO GROUP CFO CEO CEO CEO CFO HUMBLE GROUP HUMBLE GROUP HUMBLE GROUP TRUE CO BODY SCIENCE SOLENT GROUP SOLENT GROUP (Video) HUMBLE GROUP | CAPITAL MARKETS DAY 2024
Slide 3: Agenda CMD 2024
Agenda CMD 2024 Time Content Speaker 12:30 Registration & light lunch 13:00 – 13:30 An introduction to Humble Simon Petrén 13:30 – 14:05 Business Strategy Marcus Stenkil 14:05 – 14:20 Coffee break (or energy drinks) 14:20 – 15:40 Business Segments: Deep dive Simon Petrén, Jacob J. Motzfeldt, Ashley
Slide 4: An introduction to Humble
An introduction to Humble SIMON PETRÈN GROUP CEO HUMBLE GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 4
Slide 5: A modern and entrepreneurial driven FMCG group
A modern and entrepreneurial driven FMCG group On a mission to transform the industry WHAT WE DO We specialize in driving value and accelerating growth in small and mid-sized 7,446 551 FMCG companies MSEK MSEK Net Sales Adjusted EBITA LTM Q2 2024 LTM Q2 2024 82 1,117 Markets Group employees OUR OBJE
Slide 6: The FMCG market is one of the world's largest industries
The FMCG market is one of the world’s largest industries Consumer Packed Goods is a massive portion of the total FMCG market FMCG (Fast-Moving Consumer Goods) Consumer Packaged Goods (CPGs) are are everyday essentials like food, everyday items that come in beverages, and personal care items convenie
Slide 7: The world is changing – the FMCG market is lagging behind
The world is changing – the FMCG market is lagging behind Major global macro trends demand innovation and change HEALTH & WELLNESS Rising demand for healthier products DIGITAL COMMUNICATION SUSTAINABILITY We are committed to be a Expansion of e-commerce, social media, and Increasing need for ethical
Slide 8: Entrepreneurial group fueled by active ownership
Entrepreneurial group fueled by active ownership Decentralized operations with supportive governance, focused on driving value A dynamic network of small to mid-sized enterprises EN N TR O EP TI ing value VA RE riv INNO NEURSHIP D Active in the Consumer Packed Goods segment of the FMCG universe is a
Slide 9: Business Segments
Business Segments A resilient mix that creates opportunities Market access accelerator Product segments FUTURE SUSTAINABLE QUALITY NORDIC SNACKING CARE NUTRITION DISTRIBUTION Leading the transformation Leading Nordic manufacturing Nordic wholesale and distribution Natural brands and dynamic towards
Slide 10: Our history divided into two main phases
Our history divided into two main phases Buy, build, improve Phase 1 Phase 2 Establishment of the platform Integration & consolidation March 2023 Today 2020 Merger between Outlining the Launch of Business Equity raise of 875 Updated Pändy and Bayn Group Business Segments Segments MSEK, bond and bank
Slide 11: The future of Humble
The future of Humble Continuing to expand our FMCG powerhouse Consolidate and build on platforms Act on exciting opportunities Maintain strong cash flow - Invest in growth assets - Strategic bolt-on acquisitions HUMBLE GROUP | CAPITAL MARKETS DAY 2024 11
Slide 12: We sell more than just healthier candy and toothbrushes
We sell more than just healthier candy and toothbrushes We can fill an entire hypermarket store with different products +21% +40,000 Increase in # of products Products since 2022 Some examples here to the right, and many, many more… HUMBLE GROUP | CAPITAL MARKETS DAY 2024 12
Slide 13: A solid B2B partner with renowned brands
A solid B2B partner with renowned brands Legacy of serving some of the leading FMCG companies and retailers A diverse mix of pioneering brands and long-term favorites Branded Sales ▪ Our own brands and trademarked products Contract ▪ Sales from goods produced externally and internally Branded Manufa
Slide 14: Proud owner of future global champions
Proud owner of future global champions Continuing to invest in our most promising brands, exceptional value gain potential Median EV / sales multiple** 1,534 MSEK 43% 96 MSEK 3.7x Net Sales* Gross margin* EBITDA* Precedent transactions Humble hero brands Selected precedent transactions * LTM Q2 2024
Slide 15: A diverse portfolio of legacy brands
A diverse portfolio of legacy brands Historic track-record of successfully managing brands over time HUMBLE GROUP | CAPITAL MARKETS DAY 2024 15
Slide 16: Global distribution in key markets
Global distribution in key markets Our own people on the ground in 17 countries Persistent relationships with distributors, covering 82 markets Footprint across 5 continents ▪ London ▪ Hampshire ▪ Sheffield ▪ Cheshire ▪ Lisbon ▪ Porto ▪ Trofa ▪ Aveiro +150,000 Point of Sales NET SALES SPLIT BY MARKE
Slide 17: Persistent relations with global retailers
Persistent relations with global retailers Our B2B customer base consists of multinational corporations and local market leaders Sales contribution by customer size Customer categorization 10% Average customer size LTM Q2 2024 growth Top 1 - 15 14% Top 16 - 150 44% 216 MSEK 18% Top 15 customers Top
Slide 18: An industrial platform built for impact
An industrial platform built for impact Several production sites with modern capabilities Established relationships with top-tier contract manufacturers Skövde PRODUCTION SITES Key information: Industrial platform Ljung Total production units 18 Gothenburg Fredriksfors Höganäs Countries 7 Tammisaari
Slide 19: Recent capacity constraints have hindered full growth potential
Recent capacity constraints have hindered full growth potential Investments during previous two years enhances ability to meet strong demand Capacity constraints began in Q2 2023 due to Trend trajectory indicate exceptional growth and lost sales opportunity of Initiatives to increase capacity increa
Slide 20: Market share gained through volume
Market share gained through volume Restrictive pricing will favor us in a down-trading market European FMCG market 2023 Humble development Price / volume mix* Price / volume mix 120% 120% 100% 100% 7% 7% 4% 12% 20% 26% 30% 34% 80% 80% 39% 43% 60% 60% 113% 93% 93% 96% 40% 88% 40% 80% 70% 74% 61% 66%
Slide 21: Engaged entrepreneurs and local management
Engaged entrepreneurs and local management We have some of the most experienced FMCG veterans as shareholders and management <9% of key Former CEO of Trollhättan, Niklas Andersson, takes on the role as CEO for the consolidated Privab unit employees have been succeeded “I’m excited to drive Privab’s
Slide 22: Original structure during active acquisition phase
Original structure during active acquisition phase We haven’t acquired companies just to stack EBITA HUMBLE GROUP PRIIVAB MEDICA CLNICAL THE HUMBLE CO VITERNA SOYA WELLIBITES GO SUPERFOODS SOLENT KRYDDHUSET MARKNADSBOLAG NORD FITNESS LA PRALINE BARS BODY SCIENCE PRIVAB YSTAD GRAHNS AMBER HOUSE MARAB
Slide 23: Progress with our platform strategy, starting to yield results
Progress with our platform strategy, starting to yield results Down from 47 direct reporting units to 26, with more to come HUMBLE GROUP GOLDEN ARENA ARENA GREEN SALES FIRST CLASS SOLENT HERO BRANDS PRIVAB STAND ALONE ATHLETE CONFECTIONARY NUTRITION DISTRIBUTION BRANDS THE HUMBLE GRAHNS BARS PRIVAB
Slide 24: Key takeaways
Key takeaways An introduction to Humble Well-positioned to create Resilient position with diverse Governance model that fits long-term value and portfolio and customer base the market transformation accelerate growth HUMBLE GROUP | CAPITAL MARKETS DAY 2024 24
Slide 25: Business Strategy
Business Strategy MARCUS STENKIL GROUP COO HUMBLE GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 25
Slide 26: 3 layers of synergies depending on the opportunity
3 layers of synergies depending on the opportunity A refined strategy to maximize our engagement in our companies Layer 1: Group level Shared services, procurement and centralizing functions between companies Example: Supporting with the time-consuming tasks such as HR, Finance, legal and business i
Slide 27: 7 key areas form our Value Creation Model
7 key areas form our Value Creation Model The foundation on which we drive value in our companies Strategic framework Trend transformation Supplier leverage Our objective is to make it easier New product development and more fun for entrepreneurs to build companies Distribution leverage Investment r
Slide 28: Strategic framework (1/7)
Strategic framework (1/7) Developing a long-term business plan THE CHALLENGE FOR SMEs Lacking a clear strategy and business infrastructure 3 to 5-year strategic business plan to execute and scale Operational opportunities WHAT ENTREPRENEURS NEED Strategic plan to maximize value potential long-term P
Slide 29: Trend transformation (2/7)
Trend transformation (2/7) Helping our companies capitalize on health transition as % of Net Sales by category THE CHALLENGE FOR SMEs Struggling to identify trends and ensuring seamless execution 53% 50% 57% WHAT ENTREPRENEURS NEED A network of innovators that can provide guidance in executing on th
Slide 30: New product development (3/7)
New product development (3/7) Innovation and investing in product quality The industry Our capability THE CHALLENGE FOR SMEs Time consuming and resource-constrained +2 years <6 months for conventional FMCG companies from idea to development projects to launch new products from ideation product launc
Slide 31: Supplier leverage (4/7)
Supplier leverage (4/7) Ensure the right product to the right price THE CHALLENGE FOR SMEs Finding relevant suppliers and obtaining favorable Internal production terms 18 Production units with WHAT ENTREPRENEURS NEED broad capability A diverse supplier network and minimized production cost External
Slide 32: Distribution leverage (5/7)
Distribution leverage (5/7) Accelerate roll-out in key markets globally THE CHALLENGE FOR SMEs +150,000 Access to Difficult to find the right distribution partner Points of Sales 82 globally markets globally WHAT ENTREPRENEURS NEED 13 Direct access to Distribution in key strategic markets and a part
Slide 33: Investment resources (6/7)
Investment resources (6/7) Unlocking potential with greater resources Bars Production i Gråbo is currently installing their 5th production line, with line 6 ordered, to scale long-term THE CHALLENGE FOR SMEs Entrepreneurs are often limited by capital capacity to execute on value-driven initiatives ~
Slide 34: HQ services (7/7)
HQ services (7/7) Time-consuming areas of any business - ESG integration Sustainability - CO2 accounting - Other compliance and reporting - Accounting & budgeting THE CHALLENGE FOR SMEs Finance - Treasury Manage administrative tasks and at the same time - Tax operate the business - Contract manageme
Slide 35: Power BI: State-of-the-art data platform (7/7)
Power BI: State-of-the-art data platform (7/7) Making our leaders better informed about what is happening in real time DASHBOARDS CUSTOMIZED FINANCIAL REPORTS Valuable SCORECARDS insights for decision- making and control DEEP DIVE CUSTOMERS, SUPPLIER REPORTS MARKETS, PRODUCTS Groupwide coordination
Slide 36: Humble Incubator
Humble Incubator Gathering insights across the Group and driving innovation in a structured process Initiator and executor of new ideas and concepts Branding Marketing strategy Partnership building Leverage from strengths of Value Creation Model Supplier sourcing Product development resources Distri
Slide 37: Key takeaways
Key takeaways Business Strategy The more we learn, the better We have developed a model New product development to we get at driving value in our that enables our companies find the next big thing companies to reach their full potential HUMBLE GROUP | CAPITAL MARKETS DAY 2024 37
Slide 38: Quick Q&A…
Quick Q&A… SIMON PETRÉN MARCUS STENKIL GROUP CEO GROUP COO HUMBLE GROUP HUMBLE GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 38
Slide 39: Agenda CMD 2024
Agenda CMD 2024 Time Content Speaker 12:30 Registration & light lunch 13:00 – 13:30 An introduction to Humble Simon Petrén 13:30 – 14:05 Business Strategy Marcus Stenkil 14:05 – 14:20 Coffee break (or energy drinks) Simon Petrén, Jacob J. Motzfeldt, Ashley Symonds, David Ralph, Sheree Young 14:20 –
Slide 40: Coffee break and energy drinks
Coffee break and energy drinks Presentations to begin again shortly HUMBLE GROUP | CAPITAL MARKETS DAY 2024 40
Slide 41: Business Segments: Deep dive
Business Segments: Deep dive SIMON PETRÈN JACOB MOTZFELDT SHEREE YOUNG ASHLEY SYMONDS DAVID RALPH GROUP CEO CEO CEO CEO CFO HUMBLE GROUP TRUE CO BODY SCIENCE SOLENT GROUP SOLENT GROUP (Video) HUMBLE GROUP | CAPITAL MARKETS DAY 2024 41
Slide 42: Future Snacking
FUTURE SNACKING HUMBLE GROUP | CAPITAL MARKETS DAY 2024 42
Slide 43: Introduction to Future Snacking
Introduction to Future Snacking Leading the transformation towards healthier snacks and confectionary 949 ▪ Gummies ▪ Mouth refreshments MSEK Branded ▪ Foam ▪ Spreads Sales, 79% Net Sales ▪ Coated ▪ Jams ▪ Chocolate ▪ Spices and spice mixes ▪ Hard boiled ▪ Bakery ▪ ▪ Caramel Truffles / Pralines ▪ To
Slide 44: Market opportunity in traditional and sugar-reduced confectionary market
Market opportunity in traditional and sugar-reduced confectionary market Global conventional candy market Global sugar-reduced market USD Bn USD Bn 2,3 2,2 298 2,2 268 1,9 240 203 214 1,5 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Conventional candy market Sugar-reduced market Sugar-reduced m
Slide 45: Sugar-reduced has not met consumer expectations
Sugar-reduced has not met consumer expectations Compromising quality and taste for healthier alternatives is no longer an issue Traditional alternatives EUREBA: 1:1 sugar replacement Traditional sugar substitute alternatives are often maltitol based, EUREBA revolutionizes the industry by providing a
Slide 46: Transforming the confectionary market country by country
Transforming the confectionary market country by country Well-established in Sweden – Pändy is poised to accelerate a global market entry Pändy, Wellibites, Tweek, Green Star Successful market entry and quickly becoming the most popular sugar-reduced candy Other “free from” confectionary brands Humb
Slide 47: Arena Confectionary: Local candy manufacturing unit
Arena Confectionary: Local candy manufacturing unit Changing the assortment to high value-add products Q2 2024 Has since changing supplier in 2023 become the largest customer in Grahns 30% Sugar-reduced as % of Net Sales 2020 LTM Q2 2024 2% 20% Leveraging of layer 3 synergies Sugar-reduced as Sugar-
Slide 48: Swedish Candy – A new phenomenon
Swedish Candy A new phenomenon Not just a trend, Swedish Candy is here to stay Swedish candy is taking the world by storm as interest goes viral Production is maxed out to keep up with soaring demand We see this as more than a passing trend - it's a fundamental shift in consumer behavior towards aut
Slide 49: Strategic initiatives – Future Snacking
Strategic initiatives – Future Snacking Specific projects to support underlying segment growth Company or Revenue potential by initiative at full completion # Initiative Type Status Estimated timing Platform MSEK Arena 2nd shift and Franssons Q3 2024 1 Capacity increase 0-24 months Confectionery CAP
Slide 50: Case Presentation 1 - True Co.
Case Presentation 1 - True Co. is a leading brand and producer on a Net Sales development mission to make global mouth refreshment and candy replacements healthier and more sustainable. 103 R AG Business Segment 24 %C Acquired 86 75 Future Snacking November 2021 43 5% 1% % of Net Sales % of EBITA 20
Slide 51: True Co.
True Co. Products for a greener and cleaner future A\ Dates |» i True 7 FB 4 Mint _>Gum | # ee |
Slide 52: Company purpose
Company purpose Making fresh mouth and candy replacements healthier and more sustainable. Jacob Motzfeldt CEO & Co-Founder Background in management consulting, experience with sales, operations & finance. MSc Finance & Strategic Management from Copenhagen Business School. True Co. Started in 2017 wi
Slide 53: Market opportunity
Market opportunity Sleeping giants creating a market gap. > Limited category innovation for decades > Consumers want real purpose, health and sustainability +> True Co. has emerged as the global category captain set to continue and accelerate growth Distribution Wide Narrow Example Brand overview in
Slide 54: Geared for innovation, agility, quality and cost competitiveness
Geared for innovation, agility, quality and cost competitiveness. Co-packer* () (gum, mints) ° Retailer End-consumer
Slide 55: True Co. – Three brands
| True Co. | Three brands with vast and complementary potential. True Gum True Mints True Dates Plastic free chewing gum Plantbased mints Candy flavored dates Plastic Natural Plantbased No added Made in TREN free gum flavours sweeteners sugar Denmark & i
Slide 56: Broad distribution and complimentary strengths
Broad distribution and complimentary strengths creating large cross selling potential. Aselection of retailers Everyday low-price (discounters) Expected rev share in ‘24H2 ~25% of revenue (‘24 H2) REMA 1000 Bilka Netto® Supermarkets ~80% ofrevenue ('24H2) @ oa oy Gay coop IA LE © We on KESKO [a0 BIL
Slide 57: From idea to own factory and +5000 stores
From idea to own factory and +5000 stores distribution in 7 months. Idea from Humble Group Developing with Humble Group Launching with Humble Group ww Nov 2023 _— Dec ‘23 - Apr ‘24 _— May 24- Sep 24 Idea generated in session with Fast-tracked development in Highly succesful market Humble Group Manag
Slide 58: +1 million bags of dates to Norway
+1 million bags of dates to Norway. Presenting the products to the trade in April and within 4 months selling more than 1 million bags. > Distributed through Humble Group subsidiary, Vitalkost. +> Key launches in Rema 1000, 7-Eleven, Narvesen, Sunkost and Life. — Launched with evidently strong produ
Slide 59: Partnership reflections from years in Humble Group
Partnership reflections from 3 years in Humble Group. We continue to feel More innovation In-group knowledge Larger Management like entrepreneurs ideas by being part faster product distribution of sparring geared with a strong sense of a global group development products for professionalism of owner
Slide 60: True Co. – Our plan for the period ahead
| True Co. Our plan for the period ahead. > Stay true to our impact-driven mission and high ambitions > Maintain focus on focus on innovation muscle, quality and reliable supply +> Continue to build and scale brands and distribution internationally ee 4 Ni ile. > Historical growth to be continued ——
Slide 61: Sustainable Care
SUSTAINABLE CARE HUMBLE GROUP | CAPITAL MARKETS DAY 2024 61
Slide 62: Introduction to Sustainable Care
Introduction to Sustainable Care Natural brands and dynamic personal and homecare partner Branded 2,297 ▪ Oral care ▪ Laundry Sales, 41% MSEK ▪ Diapers ▪ Pet care Net Sales ▪ Wet wipes ▪ Air care Distribution, ▪ Hair care ▪ Baby care 15% ▪ Body care ▪ Femcare ▪ ▪ Skin care Cleaning ▪ ▪ Candles Unive
Slide 63: Natural care market outperforming traditional personal care
Natural care market outperforming traditional personal care Exciting exposure with some of our major brands Global natural care market USD Bn* 21,6 20,9 Global natural care 19,6 4.7% 17,2 CAGR 16,5 2019-20231 2,3 bn SEK Humble natural care exposure LTM Q2 2024 2019 2020 2021 2022 2023 HUMBLE GROUP |
Slide 64: High recognition premium brands
High recognition premium brands A challenging last few years, positioned to capitalize on a market bounce back Supply chain disruptions have caused raw material shortages and increased shipping costs, which disproportionately impacted eco-friendly brands Stabilizing economic conditions and a renewed
Slide 65: Full-service provider in personal and home care
Full-service provider in personal and home care Leveraging our own facilities and growing private label distribution Production Distribution / Private Label Solutions Case - sustainable transformation Specialized products including skin, hair, oral and body Specialized in designing, developing, and
Slide 66: Strategic initiatives – Sustainable Care
Strategic initiatives – Sustainable Care Specific projects to support underlying segment growth Company or Revenue potential by initiative at full completion # Initiative Type Status Timing Platform MSEK New product 1 Babblarna Joint venture Q4 2024 3-36 months development New plant- New product 2 N
Slide 67: Case Presentation 2 - Solent
Case Presentation 2 - Solent specializes in innovative product solutions, Net Sales development focusing on sustainable packaging, category MSEK management, and global sourcing for some of the world’s most recognizable brands 1 404 GR CA Business Segment Acquired 2 5% 1 110 Sustainable Care October
Slide 68: Today's presenters
TODAY’S PRESENTERS ASHLEY SYMONDS DAVID RALPH CEO CFO SOLENT GROUP SOLENT GROUP © 2024 Solent Group All Rights Reserved. No distribution without written authorised permission.
Slide 69: Our mission
OUR MISSION to inspire, manufacture and deliver products that make people feel better in a sustainable way © 2024 Solent Group All Rights Reserved. No distribution without written authorised permission.
Slide 70: Our divisional structure
OUR DIVISIONAL STRUCTURE Added division through the integration of Go Superfoods PERSONAL CARE HOMECARE FOOD & SNACKS NUTRITION & WELLNESS & BEAUTY 11% 13% 32% 44% Share % of total sales Share % of total sales Share % of total sales Share % of total sales LTM Q2 2024 LTM Q2 2024 LTM Q2 2024 LTM Q2 2
Slide 71: Sales split by division
Nutrition & Wellness, 13% Personal care & beauty, 32% Food & Snacks, 11% Homecare, 44% © 2024 Solent Group All Rights Reserved. No distribution without written authorised permission.
Slide 72: Solent Global – Headline financial performance
SOLENT GLOBAL - HEADLINE FINANCIAL PERFORMANCE • Net Sales Development* Net Sales development • Increase from SEK 905m in FY21 to SEK 1,404m in FY23 MSEK • CAGR of 25% • Growth across all sectors 1 404 • Particularly strong in Health & Beauty & Bags 1 110 • Solent Operational Highlights • Annual COG
Slide 73: The Solent differentiator
THE SOLENT DIFFERENTIATOR 1 2 3 TREND PROPOSAL EXECUTE SPOT THE TRENDS BRING TO LIFE TRUSTED TO DELIVER CUSTOMER, DATA, INSIGHT, CUSTOMER RELEVANT EFFICIENT, FAST, OPTIMAL, PRODUCT DEVELOPMENT, DESIGN, PROPOSITIONS, END TO END QUALITY, SUPPLYCHAIN, INNOVATION, FORMULATION, PLANNING, COMMERCIALS, DOC
Slide 74: A live example of our solution
A LIVE EXAMPLE OF OUR SOLUTION M&S CLEAN WASH & LAUNDRY RANGE MARKET INSIGHT PRODUCT INNOVATION DESIGN & FRAGRANCE RANGE ARCHITECTURE Identify existing hero Finalizing bespoke Collaborative Final Range build and products packaging design development with sign off on Commercials Spot the trends and t
Slide 75: Humble Group leverage
HUMBLE GROUP LEVERAGE INTEGRATION OF GO SUPERFOODS, ONGOING COLLABORATIONS AND LIMITLESS POTENTIAL HUMBLE GROUP GOLDEN ARENA GREEN SALES FIRST CLASS SOLENT HERO BRANDS ARENA NUTRITION PRIVAB STAND ALONE ATHLETE CONFECTIONARY DISTRIBUTION BRANDS GO GRAHNS EWALCO BARS PRIVAB FITNESS NATY THE HUMBLE CO
Slide 76: Leverage of commercial synergies in the group
LEVERAGE OF COMMERCIAL SYNERGIES IN THE GROUP Humble brand distribution consolidation Solent private label / tertiary model replicated in new markets Vertically integrated manufacturing Joint purchasing © 2024 Solent Group All Rights Reserved. No distribution without written authorised permission.
Slide 77: Leverage of operational synergies in the group
LEVERAGE OF OPERATIONAL SYNERGIES IN THE GROUP Consolidated logistics Centralized accounting & legal functions Centres of excellence across various key areas: - Technical – quality, ethical and R&D - In-house design - Marketing - Product development and trend analysis - Procurement - People and cult
Slide 78: Executive summary
EXECUTIVE SUMMARY SOLID PLATFORM REFINED BUSINESS MODEL LEVERAGE POTENTIAL Solent is a high growth, Over 30-year reputation Significant potential to leverage financially strong platform within delivering market disruptive and of Humble Group’s vertically Humble Group that has the key value adding in
Slide 79: Quality Nutrition
QUALITY NUTRITION HUMBLE GROUP | CAPITAL MARKETS DAY 2024 79
Slide 80: Introduction to Quality Nutrition
Introduction to Quality Nutrition Leading Nordic manufacturing and strong sports nutrition brands 1,528 ▪ Powders ▪ EUREBA Branded MSEK ▪ Protein bars ▪ NAVIA Sales, 46% Net Sales ▪ Capsules ▪ Vitamins Distribution, ▪ Tablets ▪ Minerals 3% ▪ Energy drinks ▪ Substitutes ▪ Superfoods Contract Manufact
Slide 81: The sports nutrition market is surging
The sports nutrition market is surging Humble is the leading Nordic contract manufacturer with a vast product range Global sports Nutrition market development USD Bn* Global sports nutrition 44 16.6% CAGR 2019-20231 33 30 20 19 1.5 bn SEK Humble sports nutrition exposure LTM Q2 2024 2019 2020 2021 2
Slide 82: Arena Nutrition
Arena Nutrition Nordic powerhouse in contract manufacturing of sports nutrition Comprehensive offering: Arena Nutrition provides a complete range of high-quality products across key categories in sports nutrition, tailored to Nordic B2B markets Innovation & quality: We drive faster innovation and en
Slide 83: Extensive scaling phase at Bars Production SE
Extensive scaling phase at Bars Production SE Aiming to become a European premium supplier of protein bars Production line 5: Installment in progress to service short-term demand. The line is sold out in capacity Production line 6: Additional line ordered to increase capacity long-term and grow busi
Slide 84: Strategic initiatives – Quality Nutrition
Strategic initiatives – Quality Nutrition Specific projects to support underlying segment growth Company or Revenue potential by initiative at full completion # Initiative Type Status Timing Platform MSEK 2nd shift and 1 Ewalco Capacity increase Shift Q4 2024 3-36 months CAPEX PL dates + 2 Amazing F
Slide 85: Case Presentation 3 - Body Science
Case Presentation 3 - Body Science is a leading provider of Net Sales development high-performance sports supplements and MSEK wellness products, trusted by athletes, fitness 420 enthusiasts, and health professionals alike G R CA Business Segment Acquired 36 % 318 Quality Nutrition August 2022 212 1
Slide 86: Nordic Distribution
NORDIC DISTRIBUTION HUMBLE GROUP | CAPITAL MARKETS DAY 2024 86
Slide 87: Introduction to Nordic Distribution
Introduction to Nordic Distribution Nordic wholesale and distribution partners, accelerating growth for our brands Logistics 32% 2,671 24% MSEK 22% Net Sales 13% Stock keeping Marketing & concepts 4% 4% 1% Field sales force Account Management 560 MSEK Gross profit 79 MSEK EBITA +185,000 Pallets disp
Slide 88: Distribution Access
Covering all key channels in Sweden Direct access to stores provides an advantage in trying new innovations Grocery trade Specialty trade Discount Fitness / Pharma Distribution Access Warehousing Logistics Distribution Wholesale Retailers RIKSGRÄNS NORGE Fitness ecom/stores End consumer HUMBLE GROUP
Slide 89: A nation-wide wholesaler and logistics partner
A nation-wide wholesaler and logistics partner driving volume growth for our customers HUMBLE GROUP | CAPITAL MARKETS DAY 2024 89
Slide 90: Consolidation to gain economies of scale
Consolidation to gain economies of scale Centralizing purchasing and functions to gain competitive advantage in the procurement processes Selected Privab customers Consolidated Central logistics Partnership agreement Integrated sales regions RIKSGRÄNS NORGE Health and wellness Pick & Mix concept Con
Slide 91: Strategic growth initiatives – Nordic Distribution
Strategic growth initiatives – Nordic Distribution Specific projects to support underlying segment growth Company or Revenue potential by initiative at full completion # Initiative Type Status Timing Platform MSEK Export pick & 1 Privab Structural Started 0-48 months mix 2 GSD Consolidation Structur
Slide 92: Quick Q&A…
Quick Q&A… SIMON PETRÈN TOBIAS LEVIN JACOB MOTZFELDT ASHLEY SYMONDS DAVID RALPH GROUP CEO PORTFOLIO MANAGER CEO CEO CFO HUMBLE GROUP HUMBLE GROUP TRUE CO SOLENT GROUP SOLENT GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 92
Slide 93: Financials
Financials SIMON PETRÉN JOHAN LENNARTSSON GROUP CEO GROUP CFO HUMBLE GROUP HUMBLE GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 93
Slide 94: A Capital Allocation Strategy that resonates with our Business Strategy
A Capital Allocation Strategy that resonates with our Business Strategy whilst ensuring we will obtain our financial targets HUMBLE GROUP | CAPITAL MARKETS DAY 2024 94
Slide 95: Aligning financial targets with our Business Strategy
Overview Aligning financial targets with our Business Strategy OLD TARGET UPDATED TARGET SEK 16 billion in proforma net sales with organic growth of at Average net sales growth of at least 15 percent per year, Growth least 15 percent per year. primarily driven by organic growth. Profitability SEK 19
Slide 96: Historical investments and operating cash flow
Capital structure Historical investments target We have continuously invested in CAPEX to Operating cash flow development act on opportunities Highlighting some of the key investments made in Quality Nutrition and Future Snacking. 184 146 154 Quality Nutrition 129 127 138 105 101 ▪ Bars Production i
Slide 97: Capital allocation priorities
Capital structure Capital allocation priorities target Invest in attractive assets and bolt-on acquisitions Growth assets Bolt-on acquisitions to existing platforms Machinery and equipment Investments in new facilities where we want to scale Entrepreneurial driven SMEs Investments to existing factor
Slide 98: Capital structure target
Capital structure Capital structure target target Natural deleveraging through amortization and Improved profitability Leverage development 3,9x 2 083 3,3x OLD TARGET UPDATED TARGET 1 825 1 808 3,1x Net debt in relation to LTM Net debt* in relation to EBITDA adjusted EBITDA < 2.5x 530 545 577 <2.5x
Slide 99: Track-record of stable growth
Net Sales Track-record of stable growth Target Proforma development since 2016 Proforma Net Sales (MSEK) Net Sales growth (inc. Currency) Intragroup elimination of 10% Our companies have a long history of stable growth year have been applied on 7 446 historical figures to reflect 7 106 over year – o
Slide 100: Net Sales growth target
Net Sales Net Sales growth target Target Aligned with our history and Business Strategy Historical underlying CAGR ~14.3% 2019 – LTM Q2 2024 Revenue potential from initiatives by Business Segment OLD TARGET UPDATED TARGET MSEK Average annual Net Sales 16 billion SEK net turnover growth of Proforma b
Slide 101: Gross margin development
Profitability Gross margin development Target Positive momentum since turning point in Q3 2023 Gross margin development Increased internal focus to support our subsidiaries to operate in a challenging macro environment 7 446 7 295 7 049 6 718 Group-wide initiatives starting to show results, and will
Slide 102: Operational cost base
Profitability Operational cost base Target Increased efficiency of resources employed Increased sales & marketing efforts, +40% YTD investing for long-term growth and profitability Overhead development as % of Net Sales 14,8% Other external expenses and personnel costs will not be 14,5% increased at
Slide 103: Profitability target
Profitability Profitability target Target Several operational improvements to significantly improve the profitability margin OLD TARGET UPDATED TARGET ~4.4% EBIT margin LTM Q2 2024 1.9 bn SEK adjusted EBITDA EBIT margin of Continued positive development in gross margin Proforma basis 10% resulting f
Slide 104: Key takeaways
Key takeaways Financials We have invested in our Strategic initiatives and bolt-on Positioned to regain gross companies to prepare them acquisitions will contribute to margin and leverage the for the future the already strong underlying operational cost base growth HUMBLE GROUP | CAPITAL MARKETS DAY
Slide 105: Key takeaways from today's CMD
KEY TAKEAWAYS FROM TODAY’S CMD Maximize value Invest cash flow in Execute on Increase Continue to drive extraction from our great opportunities strategic initiatives profitability by transformation companies growing with cost towards healthier control products HUMBLE GROUP | CAPITAL MARKETS DAY 2024
Slide 106: Q&A
Q&A SIMON PETRÉN MARCUS STENKIL GROUP CEO GROUP COO HUMBLE GROUP HUMBLE GROUP HUMBLE GROUP | CAPITAL MARKETS DAY 2024 106