Royal Unibrew A/s · OMXCOP:RBREW
Royal Unibrew A/s — Investor Day (May 2024)
112 slides from Royal Unibrew A/s's investor day presentation, May 13, 2024
Slide 1: Welcome to Royal Unibrew's Capital Markets Day 2024
Welcome to Royal Unibrew’s Capital Markets Day 2024
Slide 2: Agenda for today
Agenda for today 12:30-12:55: CEO 12:55-13:15: ESG 13:15-13:35: International 13:35-13:45: O&A 13:45-14:00: Break 14:00-14:20: Norway 14:20-14:40: Netherlands 14:40-14:50: O&A 14:50-15:20: CFO 15:20-15:25: CEO 15:25-15:35: O&A 15:35-17:00: Site visit + socializing 17:00-17:15: Departure for store vi
Slide 3: Lars Jensen, CEO
Lars Jensen CEO
Slide 4: Agenda for today
Agenda for today 1) CEO: Lars Jensen * Strategy * Growth framework * Premiumization * Opportunities for growth 2) ESG: Henriette @ligaard * Our ESG framework * The road to O in manufacturing * Priorities in the coming years 3) International: Michael Jensen * The business * Understanding the macro im
Slide 5: CEO: Lars Jensen
[>] » CEO: Lars Jensen Strategy * Growth framework * Premiumization * Opportunities for growth Copyright © Reyal Unibrew. All rights reserved.
Slide 6: Key topics for today
Key topics for today Geographic footprint with growth opportunities Our strategy Our growth framework The importance of local scale Increased opportunities for future organic EBIT growth 6 Copyright © Reyal Unibrew. All rigrus reserved.
Slide 7: Growing market shares within existing countries while expanding into new countries
Royal Unibrew is successfully growing market shares within existing countries while expanding into new countries via acquisitions and partnerships 2013 (pre-Hartwall in Finland) e © Royal Unibrew home markets in 2013: Denmark, Italy, Estonia, Latvia and Lithuania 2013 (post-Hartwall in Finland) e €
Slide 8: Royal Unibrew is stronger than ever
Royal Unibrew is stronger than ever... Markets . @ Mutti-beverage 1 The totality of the completed M&A and Hy Mutti-niche partnerships has been transformational to O Production* our business 2. We have expanded our geographic Canada footprint significantly in recent years 3. This has stepchanged our
Slide 9: 2013 (pre-Hartwall in Finland)
2013 (pre-Hartwall in Finland) Royal Unibrew / Pepsi markets in 2013: Denmark Royal Unibrew / Pepsi markets in 2024: Denmark, Finland, Estonia, Latvia, Lithuania, Norway, Sweden, Danish/German border, the Netherlands, Belgium and Luxembourg Denmark (incl. Border) Netherlands Belgium + Luxembourg PEP
Slide 10: Purpose and ambition
Purpose and ambition THE PREFERRED CHOICE OUR CUSTOMERS Wepartner with ourcustomers and strive to grow togetherby offering portfolio ofrelevant brands and havinga chat lenger mindset Withour local decen- tralized setup we focusonagility and close collaboration — aiming to provide best-in-class servi
Slide 11: Behaviors and values
ZOOMING OUT We support our employees in takingthe time to zoom out and reflect on the long-termvalue and opportunities for our companyto ensure that we focus on what really makes a differencein thelong run, Zooming outinvolves the ability to adjustto new market trends, consumer behaviour changes or
Slide 12: Market evolutions: from niche to multi-beverage markets
Royal Unibrew’s market evolutions: Growing from niche markets to multi- niche markets to multi-beverage markets Many Number of sales channels Few Niche markets: Distribution model markets Multi-niche markets Few Number of product Many categories / brands Niche markets: * Niche markets can be either
Slide 13: Growth framework remains unchanged
Growth framework remains unchanged as growth and margins are higher than Group averages ©©@OOGOOE Energy Premium Low/No Sugar _Low/ No Alcohol RTDs, Ciders, Enhanced Waters Cocktails Copyright © Reyal Unibrew. All rights reserved. 13
Slide 14: Multi-beverage model focuses on most promising opportunities
Our multi-beverage model enables us to focus on the most promising opportunities Indexed profit contribution per hektoliter Baseline ooceeeseesuseeeeseseceee lo 10" ooeeeeeee a (os) © 5 y a co) Sa & = ° = os i Bo ° = 14 Copyright © Reyal Unibrew. All rights reserved.
Slide 15: Outlet value creation
@) @) outlet value cre ® @) () Data-driven insights and adaptability Brand consis- tency and trust Customer Brand c Customer ee relation- E visibility and - experience ships placement Merchan- dising Measure- ment and evaluation Copyright © Reyal Unibrew. All rights reserved.
Slide 16: 16
16 Copyright © Reyal Unibrew. All rights reserved.
Slide 17: 17
17 Copyright © Reyal Unibrew. All rights reserved.
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Slide 21: Unlocking more growth opportunities
Unlocking more growth opportunities Premiumization Volume Operational Share growth efficiency buy-backs Long-term organic EBIT growth target of 6-8% Mergers & acquisitions ale EPS growth 21 Copyright © Reyal Unibrew. All rights reserved.
Slide 22: Take-aways
take-aways Our strategy and growth framework remain unchanged The toolbox used in new platforms is the same as we have successfully deployed in other markets Higher growth potential from partnerships We are in a stronger position than ever 22 Copyright © Reyal Unibrew. All rights reserved.
Slide 23: End: Lars Jensen, CEO
End: Lars Jensen CEO
Slide 24: Henriette Dilgaard
~—S Henriette Dilgaard Vice President, Group C
Slide 25: Agenda for today
Agenda for today 1) CEO: Lars Jensen * Strategy * Growth framework * Premiumization * Opportunities for growth 2) ESG: Henriette @ligaard * Our ESG framework * The road to O in manufacturing * Priorities in the coming years 3) International: Michael Jensen * The business * Understanding the macro im
Slide 26: ESG: Our ESG framework
© 2) ESG: Henriette Plilgaard * Our ESG framework * The road to O in manufacturing * Priorities in the coming years 26 Copyright © Reyal Unibrew. All rights reserved.
Slide 27: Key topics for today
Key topics for today The importance of sustainability at Royal Unibrew Update on sustainability performance Next steps 27 Copyright © Reyal Unibrew. All rights reserved.
Slide 28: Purpose and ambition
Purpose and ambition THE PREFERRED CHOICE THE PREFERRED CHOICE for... We want to be THE PREFERRED CHOICE of local beverage partner that challenges the status quo by doing better every day ina fun, agile and sustainable way THE FUTURE Weare deeply rooted inthe communities where we work, and we partne
Slide 29: Our ESG track-record and achievements
Our ESG track-record and achievements From “inside the fence”... Pre-2018 © 2018 © 2019 © | | KPI setting | 2020 @ 2021 | | .. to full value chain @ 2022 @ 2023 | Efficiency improvements year-on-year Materiality assessment as basis for ESG prioritization Short-term targets established New long-term
Slide 30: Our ESG aspiration
Our ESG aspiration: Royal Unibrew is globally recognized as a leader in sustainable beverages - delivering strong financial performance together with strong local engagement and a neutral CO, footprint 5, 2 30 8
Slide 31: Rated #1 in the world in beer, spirits and wine
In April 2023, Royal Unibrew was rated #1 in the world in beer, spirits and wine (subsector of overall food products category) Above-average performance 2021 Mi 2022 2023 scores will be released later in 2024 Below-average performance 308 o SUSTAINALYTICS 276 225225 212 219218 187188 | 187) 169 6.8
Slide 32: Overall KPIs
Overall KPIs Pe Our consumers & customers RS : Our products Fi Our people Poo No/Low growing faster than average on the portfolio - and faster than market (YoY) QV) 100% carbon emission free by 2025 in scope 1 and 2* 100% safety culture #1 partner of choice for customers as sustainable beverage supp
Slide 33: i
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Slide 34: Expanding focus from inside the fence to entire value chain
Expanding focus from inside the fence to entire value chain Ey Ww) 17' 7% DISTRIBUTION REFRIGERATION TOTAL 67 28 396 0-0 EEE 19% 5% 10 42% AAW WATEREALS MALTING BREWERIES pacranane 2023 KgCO,/hi 71 24 41 166 Raw materials * Recipe changes * Optimize production processes - use of enzymes * Partnershi
Slide 35: Take-aways
take-aways ® We are well underway to become 100% CO, emission free in 2025 for scope 1 and 2* ESG agenda driven by more than compliance and efficiency improvements Main challenges to the CO, reduction journey are access to electricity and getting supplier commitments Se Co-operating and co-developin
Slide 36: End: Henriette Dilgaard
~—S End: Henriette Ollgaard Vice President, Group C
Slide 37: Michael Jensen, International
Michael Jensen Senior Vice President International
Slide 38: Agenda for today
Agenda for today 1) CEO: Lars Jensen 4) Hansa Solera: Jakob Simmelsgaard * Strategy * The business * Growth framework * Status on integration * Premiumization * Growth and efficiency opportunities * Opportunities for growth 5) Vrumona: Ilco Kwast 2) ESG: Henriette @ligaard * The business * Our ESG f
Slide 39: International: Michael Jensen
(>) 3) International: Michael Jensen * The business * Understanding the macro impact * Growth and efficiency opportunities 39 zg Ea z 5 3 2 2 z > < 3 g a © 3 cc o © ° =z > S 8
Slide 40: Key topics for today
Key topics for today Our International business unit in brief The business model of International Current status on International Mid-term key initiatives 40 Copyright © Reyal Unibrew. All rights reserved.
Slide 41: Introduction to our business unit International
Introduction to our business unit “International” “International” consists of 5 overall markets Europe * Key brands: Supermalt, Vitamalt, LemonSoda Canada * Key brands: Amsterdam, Faxe Americas * Key brands: Vitamalt, lemonade Africa * Key brands: Faxe, Powermalt Asia * Key brand: Tempt We work clos
Slide 42: The business model of International
The business model of “Internat Business model Low fixed cost structure ad Limited local set-up Working through partners _ Focused approach in pursuing pockets of growth Focus on niche positions Benefiting from existing assets primarily in Denmark and France The relocation of production from Denmark
Slide 43: Product portfolio anchored in local strongholds
Product portfolio achored in local customer/consumer strongholds; potential to further leverage route-to-market synergies Strong beer penetration in Market-leading premium Strong niche propositions Strong penetration in Exploring regional white prioritized geographies Malt propositions exploring rel
Slide 44: International impacted by external factors
In recent years, International has been negatively impacted by external factors such as COGS and shipping costs in addition to production capacity constraints EBIT margin Ml Net revenue (mDKK) 804 2020 2021 2022 2023 Good current momentum Decline in 2024 shipping rates expected Production moved from
Slide 45: Business model strengthened and moved closer to consumers
The business model of International has been strengthened to become more resilient - and has been moved closer to local consumers Moved production for Canada to Amsterdam Brewery in Toronto Trinidad market moved to local license partner Chinese production has been localized Copyright © Reyal Unibrew
Slide 46: Local production of Tempt in China
~- Local production of Tempt in China unlocks | both financial and environmental efficiencies * Profit upside from establishing local production @ Elimination of import duties © Mitigation of higher European COGS @ Elimination of overseas shipping costs ¢ Freeing up capacity in Faxe, Denmark, which
Slide 47: Mid-term key initiatives
Mid-term key initiatives Overall: Optimizing route-to Canada: Expand market position _ Asia: Continued expansion of cider Malt: Keep building category leadership CSD: Accelerate growth in key markets 0O0e00 47 served, Copyright © Reyal Unibrew. All rights re
Slide 48: Key take-aways
Key take-aways International has been negatively impacted by external factors (variable costs and freight costs) in recent years From a sourcing perspective, International has been less of a priority in 2022 and 2023 — full supply for 2024 expected Net revenue organically up by 47% in Ql] Significan
Slide 49: End: Michael Jensen
End: Michael Jensen Senior Vice President International q Copyright © Reyal
Slide 50: Q&A session
O&A session
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Slide 52: Jakob Simmelsgaard, Norway
~—S Jakob Simmelsgaard General Manager Norway
Slide 53: Agenda for today
Agenda for today 1) CEO: Lars Jensen * Strategy * Growth framework * Premiumization * Opportunities for growth 2) ESG: Henriette @ligaard * Our ESG framework * The road to O in manufacturing * Priorities in the coming years 3) International: Michael Jensen * The business * Understanding the macro im
Slide 54: Hansa Solera: The business
© 4) Hansa Solera: Jakob Simmelsgaard * The business * Status on integration * Growth and efficiency opportunities 54 Copyright © Reyal Unibrew. All rights reserved.
Slide 55: Key topics for today
Key topics for today Hansa Solera in brief Key development areas Growth opportunities Key take-aways 55 Copyright © Reyal Unibrew. All rights reserved.
Slide 56: Royal Unibrew Norway: Footprint recap
Royal Unibrew Norway: Footprint recap -@- HANSA BORG 2002 * Royal Unibrew acquires 25% of Hansa Borg * Long-term knowledge of the Norwegian market and business via 25% minority share in Hansa Borg 2021 Royal Unibrew acquires 100% of Solera Beverage Group Solera Beverage Group is a leading importer a
Slide 57: Market shares and production sites in Norway
Cider/RTD On-trade market shares Beer Cider/RTD Vinmonopolet market s' Spirits Wine Spirits 4% 1 Non-alco Royal Unibrew Norway production sites; Olden: Water source and bottling plant for natural mineral water Olden : ais? Bergen: Hansa Brewery ® Sarpsborg Borg Breweries BORG Grimstad: Negne ©, craf
Slide 58: Strong multi-beverage portfolio of local and international brands
Strong multi-beverage portfolio consisting of local and international brands Beer in any format Market leaders and Fastest growing With Norway's High end in From premium CSD - biggest (tank, keg, bottle, category winners at category challenger widest wine and categories that international to beverag
Slide 59: Key development areas
Key development areas Performance model Route-to-market Operational effectiveness A winning mindset 59 Copyright © Reyal Unibrew. All rights reserved.
Slide 60: Delivered: Performance model
© Performance model Delivered IT infrastructure Royal Unibrew standard SAP implementation Adapting Royal Unibrew policies New ways of working HR tools ; a Harvest Royal Unibrew system transparency Finance- and accounting infrastructure a Data-driven decisions - faster Data quality improvements Data-
Slide 61: Delivered: Route-to-market
© Route-to-market Delivered Integrating sales forces into one per channel Consolidation of 3 party logistics Kristiansand brewery closed and site sold Increased efficiency * One front-end invoicing * Joint logistics * Synergies from cross selling 61 Copyright © Reyal Unibrew. All righte reserved,
Slide 62: Delivered: Operational effectiveness
© Operational effectiveness Delivered Procurement Sales and operations planning Performance management One management team Leadership structure * Supply chain tools and optimization * Better data and more streamlined processes * Commercial tools 62 Copyright © Reyal Unibrew. All righte reserved,
Slide 63: Delivered: A winning mindset
© A winning mindset Delivered Royal Unibrew leadership expectations * Implement Royal Unibrew growth framework Common policies * Increase profit focus Aligning employment contracts HR tools Removing silos Bonus systems Copyright © Reyal Unibrew. All righte reserved, 63.
Slide 64: Growth opportunities
Growth opportunities Lead Cider/RTD through expansion in on-trade and accelerated growth of the market Maintain volume scale in Beer category and increase value via innovation Developing our partnerships Win in on-trade: Succeed with cross-selling Increase market share in Wine and Spirits Establishi
Slide 65: Take-aways
take-aways Strong multi-beverage starting point Deliver on short-term development areas: Performance model Route-to-market Operational effectiveness A winning mindset Capture growth opportunities 65 Copyright © Reyal Unibrew. All rights reserved.
Slide 66: End: Jakob Simmelsgaard
End: Jakob Simmelsgaard General Manager Norway
Slide 67: Ilco Kwast, Vrumona
~—S Tlco Kwast Managing Director Vrumona
Slide 68: Agenda for today
Agenda for today 1) CEO: Lars Jensen * Strategy * Growth framework * Premiumization * Opportunities for growth 2) ESG: Henriette @ligaard * Our ESG framework * The road to O in manufacturing * Priorities in the coming years 3) International: Michael Jensen * The business * Understanding the macro im
Slide 69: Vrumona: The business
© 5) Vrumona: Iico Kwast * The business * Status on integration * Growth and efficiency opportunities 69 Copyright © Reyal Unibrew. All rights reserved.
Slide 70: Key topics for today
Key topics for today ©@©@@C Vrumona in brief Creating a growth company Growth opportunities Margin management Efficiency improvements 70 Copyright © Reyal Unibrew. All rights reserved.
Slide 71: A rich history full of entrepreneurship
A rich history full of entrepreneurship * 1945: Establishment of N.V. Vitam- Fruit Products Company * 1947: Vitam becomes KA.D., production of 1.5 million bottles reached * 1949: One-year license for Pepsi Cola production, start of construction of new factory * 1950: Start of cooperation with Heinek
Slide 72: Sustainability and sugar reduction initiatives
HEAT RECOVERY IN FACTORY ooo ae 00 ] COOLCULATOR DETERMINE COOLING CAPACITY NEEDED TRANSPORT OPTIMALISATION CONTINUOUS PROCESS ~ oo 100% RPET mitt 100% GERECYCLED PET 1,5L PEPSI BOTTLE WILL CONTAIN 1,3 GRAM LESS PLASTIC TETHERED CAPS ‘CAP ATTACHED TO PACKAGING INTRODUCTION DEPOSIT ON CANS _—- april
Slide 73: Benelux is the most recent addition to our footprint
The Benelux region is the most recent addition to our overall footprint 2013 (pre- ‘wall in Finland) w Royal Unibrew home markets in 2013: Denmark, Italy, Estonia, Latvia and Lithuania Royal Unibrew home markets in 2024: Denmark, Italy, Estonia, Latvia, Lithuania, Finland, France, Canada, Norway, Sw
Slide 74: Vrumona has a solid #2 position in soft drinks
Vrumona has a solid #2 position in the - and is especially focused on the low/no Overall Overall Adult Mainstream Functional Energy market position in soft drinks CsD water drinks position in low/no sugar soft drinks segment 74 Copyright © Reyal Unibrew. All rights reserved.
Slide 75: Product portfolio focused on non-alcoholic drinks
Product portfolio focused on non-alcholic drinks; opportunity to grow within these categories and expand the footprint to new categories Competitive portfolio in Leading and innovating Growingthebrandina Large volume category Leading in mixers for Incubator for new Growing category mainstream soft d
Slide 76: Main steps in first phase of Vrumona's new journey
Main steps taken in first phase of Vrumona’s new journey Separation from Heineken almost completed Change of focus during retailer negotiations to become a real challenger and gain distribution Capacity and capability expansion; Border production started to support the Royal Unibrew network 76 Copyr
Slide 77: Creating a growth company
Creating a growth company better: re ( beet ) Update production capacities to service the market Can line to service market with right products, drive efficiencies and increase capacity to service Belgium and Luxembourg P Glass line to premiumize portfolio and drive efficiencies Tu] Focus on growth
Slide 78: Organic earnings growth opportunities
Organic earnin * Sales force to drive higher margin products and cold availability * Drive better mix through data and opportunities from updated production capabilities s growth opportunities Efficiency * Strong platform: Growth will deliver operating leverage * From capex investments * Carve-out f
Slide 79: Key priorities to unlock Vrumona's growth potential
Key priorities identified in order to unlock the full growth potential of Vrumona Carve-out Unlock full commercial potential Supply chain capacity and capabilities People Belgium Progressing as planned Progressing as planned Progressing as planned Progressing as planned Progressing as planned * Carv
Slide 80: Take-aways
take-aways Strong starting point with a good portfolio and good (but under-invested) assets Capable organization; however, needs to be transformed to become more growth-oriented Clear building blocks to improve profitability: In-store execution Growth framework Upgrade of production capabilities Bet
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