Haypp Group Ab · OMXSTO:HAYPP
Haypp Group Ab — Q1 2025 Earnings Presentation
27 slides from Haypp Group Ab's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Report
— =| x PP GROUP Q1 2025 Report May 06, 2025
Slide 2: Today's presenters
Today’s presenters Ne ' Ww Peter Deli CFO HAYPP GROUP ge 7
Slide 3: Haypp Group
HAYPP GROUP
Slide 4: Operational highlights
Operational highlights • • • • • Haypp Group Nicotine pouch volume LFL Adjustment LFL base Share of NP 45% 49% 52% 55% 58% 60% 63% 62% 63% 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 LFL adjustment represent US Zyn and other NPs into closed states *Launched in 2024
Slide 5: US nicotine pouch market development
US nicotine pouch market development Favorable dynamics in the environment We are working to capitalize on the opportunity • • • • • • Haypp Group’s volume sold of NP • SKU’s launched in 2024 +74% Q4 2024 Q1 2025 *External reporting
Slide 6: Infrastructure overhaul on track
Infrastructure overhaul on track Overhaul is critical for future success Progressing according to the plan ERP & V3 storefront • middle layer upgrade • Norway • UK • Germany Austria To be completed Sweden in 2025 • To be completed Switzerland in 2025 • US n/a
Slide 7: Legal and regulatory update
Legal and regulatory update – –
Slide 8: Net sales bridge: US Zyn and closed states
• • +10% +35% 2024 Q1 US Closed US Zyn 2024 Core Growth 2025 Q1 reported states Q1 L4L
Slide 9: Net sales bridge by market (mn SEK)
• • (mn SEK) +5% +22% 2024 Q1 US US US Zyn 2024 Core Growth Emerging 2025 Q1 reported Closed Tobacco Q1 LFL states
Slide 10: Net sales growth reported and like-for-like
• • • 20% 22% 20% 17% 6% 2024 FY 2024 2025 Q1 2025 2025 NP Snus Vape&HNB Q1 2025 reported FY L4L reported Q1 L4L YTD April L4L
Slide 11: Gross margin as % of net sales
• • • • • 35% Gross margin as % of net 171 sales 157 126 135 135 99 97 113 93 12% 13% 13% 13% 14% 14% 14% 17% 18% 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1
Slide 12: Adjusted EBIT bridge Q1 '24 to Q1 '25
• • • 1,2 2,1 2,1 5,2 4,3 4,1 0,3 3,5 6,4 Reported 3,5 5,2 Group Emerging segment 0,8 investment Core and Core and Core and Emerging Adj. EBIT Adj. EBIT Margin Marketing OPEX Depr. Adj. EBIT Growth Adj. Growth uplift Growth reinvestment Q1 ’25 Q1 ’24 Q1 ’25 EBIT Q1 ’24 Q1’25
Slide 13: Core Markets
Core Markets + Netsales increased 10 per cent and reached SEK 692.8 m (627.7) for the first quarter. In constant currency, net sales increased by 11 per cent + Nicotine pouch volume - which makes up over 50% of our Core volume - grew 23 per cent during the quarter; snus continued to decline as expec
Slide 14: Growth Markets
Growth Markets + Net sales decreased by 18 per cent to SEK 198.6 m (241.8) for the first quarter due to a stopping of all sales into California since early September last year, LFL Net sales growth 65 per cent + Nicotine pouch volume grew by 68 per cent on a LFL basis (reported decreased 7 per cent)
Slide 15: Emerging Markets
Emerging Markets * Net sales for the fourth quarter, amounted to SEK 31.8 m from the vape segment in the UK, Germany and Sweden * EBITDA for the business unit was SEK -11.5 m. The EBITDA margin amounted to -36.3 per cent driven by commercial investments and a high share of fixed costs compared with
Slide 16: Inventory normalized after YE increase, also reducing working capital need
• Inventory normalized after YE Also reducing the working capital need Leverage is down to 0.4 x last 12 increase months adj. EBITDA Inventory (mn SEK) Net working Capital (mn SEK) Net debt (mn SEK) 350 350 Net Debt 300 300 Net debt/L12M Adj. EBITDA, times 250 250 250 2.0 200 200 200 1.6 150 150 150
Slide 17: Haypp Group
HAYPP GROUP
Slide 18: Outlook
Outlook Long term fundamentals remains robust for risk reduced products, for the online channel and for Haypp * The Group’s operating model continues to deliver increasing value for consumers and suppliers while growing the company’s gross margin. * With tightening legislation Haypp’s commitment to
Slide 19: Long term target
Long term target Haypp Group’s Board of Directors adopted the following financial targets for 2028: Sales * Revenue growth range of 18-25 per cent CAGR. 2025 reported performance expected to be under this range. Profitability * Adjusted EBIT margin of 5.5 percent +/- 150 basis points. Divi . * The B
Slide 20: Slide 20
Slide 21: Haypp Group
02/05/2025 HAY PP GROUP
Slide 22: Selected KPIs
Selected KPls 2025 2024 LTM Full-Year ai ai 2024 Operational Number of orders (thousand) 1185 1,196 4,935 4,946 Average order value (SEK) 703 684 694 690 Active customers (thousand) 553 548 1,032 1146 Balance sheet Inventories (MSEK) 227.5 225,7 2275 298.7 Net working capital (MSEK) 200.3 181.9 200.
Slide 23: Strictly private and confidential
STRICTLY PRIVATE AND CONFIDENTIAL
Slide 24: Haypp Group business model: Integral position in the value chain
Haypp Group business model: 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 24
Slide 25: Haypp Group focus on less harmful products
Haypp Group focus on less harmful products % 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 26: 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 27: 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 27