Slide 1: New President and CEO
New President and CEO BACKGROUND • Joined Cloetta in 2018 as CEO Cloetta Sweden and member of Group Management Team • >20 years spent within FMCG of which 16 years in international roles • Solid experience from executive positions within Kraft Heinz and Findus, with a focus on strategy and business
Slide 2: Q2/2024: Improved profitability and continued organic growth
Q2/2024 12 July 2024 Improved profitability and continued organic growth
Slide 3: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Strategic update 4 Q&A
Slide 4: Leading confectionery company in Northern Europe
Leading confectionery company in Northern Europe Key figures Net sales by country, 2023 Annual net sales 2023 (SEKbn) 30% Sweden 8.3 21% 15% Finland The Netherlands 10% Denmark Candy Pick & mix Employees (on average) 6% Norway 6% Germany 2,600 5% The UK 7% International Markets Countries with sales
Slide 5: Q2: Improved profitability and continued organic growth
Q2: Improved profitability and continued organic growth Q2 Net sales 1 Operating environment saw a significantly reduced food price inflation than last year +1.8% Organic growth 2 Continued to deliver stable underlying volumes SEK 2.0 bn Improved adjusted operating profit driven by previous pricing
Slide 6: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Strategic update 4 Q&A
Slide 7: Continued sales growth
Continued sales growth Net sales Q2/2024 YTD/2024 +2.0% +4.1% + 0.7% 2 038 + 3.8% -0.3% + 0.6% 4 132 + 1.8% -0.5% 1 998 3 971 Branded packaged: + 1.2% Branded packaged: + 2.4% Pick & mix: + 3.4% Pick & mix: + 7.5% Q2/23 Organic Structural FX Q2/24 2023 Organic Structural FX 2024 growth changes growt
Slide 8: Sales development
Sales development Share of net sales and organic sales growth, %, in quarter 20.5% Branded packaged products 14.8% 10.2% 10.9% 11.1% 9.3% 8.2% 7.3% 6.1% 4.0% 3.6% 2.5% 1.2% 73% Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Pick & mix 79.6% 27% 32.4% 32.7% 21.6% 23.8%
Slide 9: Pricing and margin-enhancing initiatives lift profit
Pricing and margin-enhancing initiatives lift profit Operating profit, adjusted Q2/2024 YTD/2024 • Fair pricing caught up to earlier input cost increases, but cocoa continued to 9.6% 10.9% 9.8% 10.0% -11 -1 414 go up and will affect YTG 391 35 1 222 16 • Margin-enhancing initiatives in P&M 191 14 an
Slide 10: Strong improvement in P&M; Branded profit protected
Strong improvement in P&M; Branded profit protected Operating profit, adjusted, by segment Q2/2024 YTD/2024 12.7% 12.3% 12.7% 11.2% 186 -3 183 370 -35 335 Branded packaged Q2/23 var. Q2/24 2023 var. 2024 0.9% 7.1% 2.0% 7.0% 58 79 34 39 Pick & mix 21 5 Q2/23 var. Q2/24 2023 var. 2024 10
Slide 11: Increased investments in core brands key driver vs LY
Increased investments in core brands key driver vs LY SG&A Q2/2024 YTD/2024 22.9% 29.1% 22.6% 25.3% +135 +148 41 593 50 1 046 92 2 93 5 898 458 Q2/23 Items FX Net SG&A Q2/24 2023 Items FX Net SG&A 2024 affecting affecting comparability comparability 11
Slide 12: Strategic building blocks to deliver margin expansion
Strategic building blocks to deliver margin expansion Greenfield Net facility Revenue Perfect Manage- Factory ment 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- 2019 2023 term 11.4%* 9.6%* ≥
Slide 13: Free cash flow further improved: YTD SEK +148m vs LY
Free cash flow further improved: YTD SEK +148m vs LY Cash flow 230 Q2/2024 • Improved Q2 Free cash flow vs LY driven -171 54 by lower capex investment more than -31 28 offsetting increased working capital -306 • Increased working capital due to -224 higher seasonal inventory build following Cash flo
Slide 14: Strong financial position: Net debt/EBITDA 1.8x
Strong financial position: Net debt/EBITDA 1.8x Financial position • Net debt/EBITDA successive improvement continues with an all-time low for a Q2, and well below target of 2.5x • Net debt SEK 2.0bn despite dividend payments, driven by cash generation and favourable revaluation • Unutilised access
Slide 15: Agenda
Agenda 1 Cloetta in brief and quarterly update 2 Financials 3 Strategic update 4 Q&A
Slide 16: Our strategy
Our strategy “ Growth leadership Cloetta is a proud provider of joyful in Branded moments – our brands and Lower costs and greater 1 packaged goods products bring fun and joy to memorable occasions efficiency 3 4 We are convinced that our consumer focus is the Sustainability basis for us to grow and
Slide 17: Growth leadership in Branded packaged goods
1 Growth leadership in Branded packaged goods Responding to growing consumer trend demanding local brands and innovative offerings As Branded 1 Profitable growth and improved product mix, continued recovery of mix packaged products have an 2 Market share growth in core markets by focus and support o
Slide 18: Growing in new channels
1 1.6 Growing in new channels E- and Q-commerce - emerging online channels Cloetta’s strategic choice to Highlights in 2024 focus on online channels is showing clear results. Strong growth in US and UK for The Jelly Bean Planet in E-commerce (Amazon) Quick commerce* expanded rapidly during the pande
Slide 19: Sustainable value from the Pick & mix business
Sustainable value from the Pick & mix business 2 Driving profitable volume growth to 5–7% EBIT including allocated costs From its strong 1 Growth of consumer trends like individualism and sustainable packaging market position Cloetta has good 2 Customers see this as in-store differentiation to attra
Slide 20: Market position enables category development
2 Market position enables category development 2 Second quarter with EBIT margin in line with medium-term target of 5–7% Valorising P&M Cloetta is the largest P&M supplier in Europe 2023 P&M is one of the fastest growing confectionery categories in the Nordic market Arlanda airport, Stockholm Cloett
Slide 21: Lower Cost and Greater Efficiency
3 Lower Cost and Greater Efficiency Adding % EBIT to our result Cloetta has 1 Perfect Factory: increasing efficiency and reducing waste and energy in our plants programs to optimise all lines 2 Greenfield project of the P&L by lowering cost and 3 ZBB methodology to reduce indirects NRM spending with
Slide 22: Update on greenfield project
3 4 Update on greenfield project Secure and improve on adjusted EBIT margin of at least 14 per cent • When operational, creates capacity for growth, significantly reduces cost and reduces greenhouse gas emissions • EBIT contribution remains higher up in the range SEK 220–260m • Important step on jou
Slide 23: Our sustainability agenda
4 Our sustainability agenda Sustainability targets and ambitions For You • Offer sugar-free, less sugar and options with functional ingredients • Offer more vegan options • Supporting dental health with our xylitol products Cloetta’s sustainability agenda focuses on • Continue to work towards zero w
Slide 24: Alignment to CSRD reporting already in 2024
4 Alignment to CSRD reporting already in 2024 Voluntary Corporate Sustainability Reporting Directive-reporting already for 2024 Decision to start aligning Cloetta’s CSRD-preparations Q2/ 2024 Cloetta’s reporting according to CSRD requirements already • Double Materiality Analysis finalised in 2024,
Slide 25: Q&A
Q&A 25
Slide 26: Thank you!
Thank you! UPCOMING IR EVENTS 9 Sep Group lunch in Stockholm (Nordea) 1 Oct Silent period starts 25 Oct Interim report Q3 2024 CONTACT US ir@cloetta.com press@cloetta.com sustainability@cloetta.com
Slide 27: Appendix
Appendix 27
Slide 28: Greenfield facility – Pro forma profit and loss Q2
Greenfield facility – Pro forma profit and loss Q2 Q2/2024 Q2/2024 Q2/2024 Other items Pro-forma Greenfield affecting Reported excl. Adjusted comparability greenfield Net sales 2,038 - 2,038 - 2,038 Cost of goods sold -1,321 -1 -1,320 - -1,320 Gross profit 717 -1 718 - 718 Selling expenses -298 - -2
Slide 29: 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