Noho Partners Plc · OMXHEX:NOHO

Noho Partners — Investor Day (May 2024)

67 slides from Noho Partners's investor day presentation, May 22, 2024

  1. Slide 1: Capital Markets Day 2024

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  2. Slide 2: Agenda

    Agenda Summary of the previous strategy cycles New strategy for 2027 QEA Strategy for profitable growth in Finland Q&A Better Burger Society Q&A International business: Norway and Denmark QEA Financial targets for 2027 QEA Summary QEA /16.05 | End of the event 2 CMD 22 May 2024 Aku Vikstrém Timo Lai

  3. Slide 3: Today's speakers

    Today's speakers Aku Vikstrém Timo Laine Jarno Suominen CEO Chairman of the Board Deputy CEO. hr Yrj6 Narhinen Benjamin Gripenberg Jarno Vilponen BBS Chairman of the Business Director CFO Board 3 CMD 22 May 2024 Maria Koivula Business Director NOHO

  4. Slide 4: Summary of the previous strategy cycles

    Summary of the previous strategy cycles Aku Vikstrom CEO CMD 22 May 2024 NOHO

  5. Slide 5: Growth is in NoHo Partners' DNA

    Growth is in NoHo Partners’ DNA 2006-2023 NET SALES CAGR 27% 00 ° Mr Max Restamax NoHo Partners 480 1996-2011 2012-2017 2018-2024 400 350. 300 250 200 1 150 100 [J 50 > em 1 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 12020 2021 1 2022 2023 2024 Listing in Nasclag 5 CMD 22 M

  6. Slide 6: We are the most profitable company in our industry in Finland

    MEUR We are the most profitable company in our industry in Finland OUR EBIT HAS TRIPLED SINCE PRE-COVID TIMES 40 35 30 25 20 101%" 101% - 65% : 6.1% Denmark & Royal -integration Covid-19-pandemic ——e 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 mag EBITS ——EBIT margin 1 CMD 22 May 2024 * Restau

  7. Slide 7: The key target for the previous strategy cycle was to increase profitability

    The key target for the previous strategy cycle was to increase profitability WE REACHED THE TARGETS IN ALL FOUR FOCUS AREAS 1% 10 % 2019 Outcome r Pci. = Efficiency Cost savings Denmark 2024 target ri y — improvements ——— turnaround = = a = T 7 CMD 22 May 2024 NS ¢ SS 4, > NOHO

  8. Slide 8: EBIT margin development

    \EBIT margin of % during the NOHO

  9. Slide 9: The restaurant market in Northern Europe is fragmented, developing, and full of opportunities

    The restaurant market in Northern Europe is fragmented, developing, and full of opportunities Number of restaurants: Finland Norway ~11,000 ~22,000 F.staurants Fe staurants Denmark Sweden © » ~18,000 ~20,000 © Fstaurants Fstaurants

  10. Slide 10: New strategy for 2027

    New strategy for 2027 Timo Laine Chairman of the Board NOHO 10 CMD 22 May 2024

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  12. Slide 12: Strong and profitable growth in Finland, international growth continues with a new operational model

    = Strong and profitable growth in Finland, international growth continues with a new operational model = = PROFITABLE GROWTH IN «ACTIVE INVESTOR IN a) FINNISH RESTAURANT AND INTERNATIONAL RESTAURANT -, ENTERTAINMENT MARKET BUSINESS 400 os BBS “ a x) D te. ee 2023 2027 + 4 2 z= CMD 22 May 2024 ea 3 A

  13. Slide 13: Profitable growth in Finnish restaurant market

    ‘ profitabl@yrowth in Finnish restau 'e and a market o The home market potential, which has not been reclaimed, is substantial ——_ Our market position is strongest, and the competitive advantages are the largest, in our home market We possess the best expertise and experience in acquisitions in the

  14. Slide 14: Experience endorses success; Investor partnerships in a key role

    Experience endorses success Investor partnerships in a key role » Active ownership combined with operational steering, e.g. Eezy and Superpark » Synergy benefits based on our operating model and industry expertise » Cooperation with the competent investors will speed up international growth, opens u

  15. Slide 15: Focus areas for the 2027 strategy cycle

    5 CMD 22 May 2024 Focus areas for the 2027 strategy cycle Profitability accelerating growth * Efficient capital allocation and profit * Growth in Finnish operations and international growth through investment activities Strengthening the balance sheet * Controlled debt level * Decreasing financial e

  16. Slide 16: Long-term financial targets 2025-2027

    Long-term financial targets 2025-2027 % CMD 22 May 2024 Finnish operations: International business: Dividend: Net debt: Turnover of approx. MEUR 400 and maintaining the current good level of EBIT margin Profitable growth and creating shareholder value Company aims to distribute annually increasing d

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  18. Slide 18: Our strategy for profitable growth in Finland

    Our strategy for profitable growth in Finland Jarno Suominen Deputy CEO Maria Koivula Business Director

  19. Slide 19: Model supporting our strategy

    bans =— CG @ £R an model support Growingand Operational Bestcustomer Committed Significant developing excellence experience employees benefits of our strategy market scale 9 CMD 22 May 2024 NOHO

  20. Slide 20: Development of the Finnish restaurant market 2005-2022 and outlook

    Development of the Finnish restaurant market in © 2005-2022 and outlook for the strategy period THE VALUE OF THE RESTAURANT MARKET LONG-TERM DRIVERS FOR THE 2005-2022 RESTAURANT MARKET 180 40 oo. 60 40 Fj Megatrends (urbanization, use of 10 20 time) 720 10 ; ; ‘00 0 y Changes in consumer behaviour 8

  21. Slide 21: Restaurants have become a part of our daily lives

    Restaurants have become a part of our daily lives © THE NUMBER OF RESTAURANT VISITS HAS INCREASED SIGNIFICANTLY FINNISH CITIES ARE GROWING IN SIZE 70% 700000 = +20% 60% 600 000 50% 500 000 40% 400 000 +43 -% 30% 300 000 127% $36% ° 75% 415 % 20% 200 000 *85% i +24 % 10% 100 000 1 | | al al 0% 0 all

  22. Slide 22: We are involved in every stage of the experience chain

    We are involved in every stage of the experience chain 195 resourses 2023 . Entertainment restaurants y 61 Food restaurants i 122 Event restaurants oe 12 22 Nokia Arena and Messukeskus are both determined as one unit CMD 22 May 2024 Our restaurant portfolio covers © the most profitable segments of t

  23. Slide 23: Operational excellence determines the outcome

    ey Operational excellence determines the outcome WE SCALE OUR PERSONNEL TO MATCH THE DEMAND FOOD RESTAURANT NIGHT CLUB 20000 120 60 000 200 15.000 45.000 150 10 000 30.000 100 PS 0 5.000 | | | | | | 15.000 ) | | | ul! hill ) SO ° Val ‘a al \a Wa Ya Na ‘a a va Na \a Na va Sh Sh Sh OS SH A A SH OS SY

  24. Slide 24: Best customer experience

    fe) best customerex perience Paccess is based on the! es, 66.5 70.3 NPS 2022 NPS 2023 NA 714.9 NPS Q1 2024 \\\e NOHO

  25. Slide 25: Committed personnel is a key to success

    Committed personnel is a key to _ tins 7 85% 94% Employee satisfaction 2021 91% Employee satisfaction 2023 Employee satisfaction 2022 i r CMD 22 May 2024

  26. Slide 26: Creating value through acquisitions

    1 Creating valu throu “ . dS af fe \€ i yal we | yaya «eee Implementation of NoHo synergies =F Value creation - BE tor shareholders bs 4

  27. Slide 27: Acquisition 07/2022

    Acquisition 07/2022 Acquisition price MEUR 2.3 CMD 22 May 2024 synergies Procurement synergies Sales synergies Personnel synergies \_ ee ll Fe Cumulative turnover (LTM) SESE RS SS EV / EBITDA SSS2FH85gBs Operational EBITDA development FY 2019 Q2/23-Q1/24 427t€ < 543 t€ 20.7% +27% 23.2% 7)\ SEA HORSE

  28. Slide 28: Maria Koivula, Business Director

    28 Maria Koivula Business Director CMD 22 May 2024 Food restaurants Events Entertainment restaurants NOHO

  29. Slide 29: Superior brand portfolio: food restaurants

    Superior —__ brand portfolio FOOD RESTAURANTS 52, < 1 ‘ Unique concepts and Share of our turnover scalable brands in Finland 2023 ee | Turnover MEUR 151 (2023) all Units in total 122 The profitability in our food A restaurants clearly exceeds the market average Alarge variety of brands in the larges

  30. Slide 30: Key sources for growth during the strategy cycle

    Key sources for growth during .. the strategy cycle Acquisitions We continue to grow by acquiring restaurants with proven concepts in local markets Opening Opening new restaurants in the most attractive locations new restaurants Scaling of Scaling up Hook-concept by opening new restaurants and throu

  31. Slide 31: A winning blend of extensive expertise and top-quality brands: events

    A winning blend of extensive expertise and top-quality brands EVENTS 1 The largest event venues, Nokia Arena and Messukeskus (Helsinki Expo and Convention Centre) are part of our portfolio (CO) We succeed in tenders due to our A diverse brand portfolio and expertise in event management In | Turnover

  32. Slide 32: Key sources for growth during the strategy cycle

    ier Key sources for growth during the strategy cycle Contracts on + We target contracts for both existing and new venues in cities profitable urban with significant potential projects + We evaluate the potential of the offered venues on a case- by-case basis, taking into account the company's profit

  33. Slide 33: Market leader in the most profitable segment

    Market leader in the most profitable segment ENTERTAINMENT RESTAURANTS < 1 , #1in nightclubs in Finland both in turnover and no. of units (CO) #1 in gaming restaurants in Finland ae” In | Turnover MEUR 97 all (2023) 33% Share of our turnover in Finland 2023 Nightclubs 23 Pubs 25 Gaming restaurants 1

  34. Slide 34: Key sources for growth during the strategy cycle

    the strategy cycle Competitiveness + We ensure that our current portfolio develops and maintains of the current its excellent profitability portfolio + We will strenghten our #1 position in the market Key sources for growth during eel Acquisition of Our comprehensive knowledge and experience in micr

  35. Slide 35: All three segments will contribute to growth in the strategy cycle

    All three segments will contribute to growth in the strategy cycle WE MAINTAIN THE CURRENT GOOD PROFITABILITY LEVEL AND EBIT MARGIN 400 - a 290 250 2023 Events Entertainment Food restaurants 2027 MEUR 20-40 restaurants MEUR 45-55 MEUR 25-45 35 CMD 22 May 2024 NOHO

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  38. Slide 38: Better Burger Society

    38 CMD 22 May 2024 Better Burger Society Yrj6 NGrhinen Chairman of the Board, Better Burger Society NOHO

  39. Slide 39: Better Burger Society highlights

    ~ Better arse Earn 7¢ = Faster than market #1 1 =3 average comparable Premium burger New markets g rowt h player in Europe = ~~ é * @«@ Short payback y Maintaining current | : excellent . og. - og time for ie, profitability Approx. 5 ) investments 'S New openings in 4 > CI every market per year

  40. Slide 40: We operate in attractive markets

    _ —, ———————ooo—l—e—eee We operate in attractive markets Hamburger market Cw Hamburger market No. of restaurants No. of restaurants mare FRIENDS Possibilities to aBRGRS 27 grow market share Others 800 Expected market growth 5-7% both in Finland and in Switzerland Growing markets The 2008 financial c

  41. Slide 41: BBS' brands are consumers' favourites

    BBS’ brands are consumers’ favourites Both concepts are the biggest better burger chains in their home markets... ..and consumers’ favourites 7/10 #1 6 The no. of restaurants in Finland 27 Categories won in Price position , customer survey — among premium 10 8 8 8 «© > chains 3.3 FRIENDS FRIENDS fe

  42. Slide 42: BBS's brands have grown, and the units are performing well

    BBS's brands have grown, and the units are performing well Strong growth throughout COVID-19 pandemic FRIENDS Friends & Brgrs sales and CAGR*, MEUR &BRGRS 432% 1 2019 2020 7 2021 2022 ) Holy Cow! Sales and CAGR*, MCHE +12% 2023 2019 2020 * Compounded annual growth rate, 42 CMD 22 May 2024 2021 2022

  43. Slide 43: We want to expand into attractive European markets

    We want to expand into attractive European markets Screening of over 100 potential targets WHAT KINDS OF COMPANIES ARE WE LOOKING FOR? * Similar concept: fast, fresh, local * Brand loved by customers * Arealrestaurant chain model si NOHO * Growth potential in the home market 43 CMD 22 May 2024

  44. Slide 44: Our value creation is based on improved scalability

    Our value creation is based on improved scalability The #1 better burger company in Europe Better burgers for all Leading brands, LEAN GROUP partnerships MANAGEMENT TEAM 1 Fast, fresh, local i FRIENDS Brand 3? Brand 4? SBRGRS Accelerating comparable Efficient new openings Data based management and g

  45. Slide 45: Better Burger Society highlights

    ~ Better arse Earn 7¢ = Faster than market #1 1 =3 average comparable Premium burger New markets g rowt h player in Europe = ~~ é * @«@ Short payback y Maintaining current | : excellent . og. - og time for ie, profitability Approx. 5 ) investments 'S New openings in 4 > CI every market per year

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  47. Slide 47: International business in Norway & Denmark

    ay CMD 22 May 2024 International business in Norway & Denmark Benjamin Gripenberg Director, International business NOHO

  48. Slide 48: New markets

    0-3 New markets FL osscy TOP 5 ovresi TO) Return on invested capital >10% : profitability level bbe. Rsk a tM halt *s Maintaining current

  49. Slide 49: We operate in growing markets

    We operate in growing markets Possibilities to grow market share Growing markets Cycle tolerance Source: Euromonitor, expert assessment 49 CMD 22 May 2024 Restaurant market Restaurant market No. of restaurants No. of restaurants am 20 NOHO gi 25 NOHO AT 4 wy 17 980 21975 Expected market growth: » 5-

  50. Slide 50: Versatile restaurant portfolio targeted for larger audiences

    Versatile restaurant portfolio targeted for larger audiences RISEN 280 Youngs nieu e : : on rN part I ond KRIOTIANSAND STAVANGER BEES oOo CAMPING =a Catering CAMPING oom KS = COW: cocks*cows ‘CAMPING. ‘campINe “cAMPING ny im BOOK Malmé cos {GAEL TRUDI SPU | mene LE TRAI FE] aierorr Kedbyen BIRO Ps P

  51. Slide 51: NoHo's international business on a growth track

    NoHo’s international business on a growth track STRONG GROWTH IN NORWAY FOCUS ON PROFITABILITY IN DENMARK Turnover in Norway and CAGR*, MEUR Turnover in Denmark and CAGR*, MEUR 45 | 30 424% -1% > 40 ; 40,4 25 35 24,3 30 20 21,9 25 15 20 ie 17.2 15,5 168 10 112 1 : 5 ) ) 2019 2020 2021 2022 2023 2019

  52. Slide 52: NoHo in Norway and in Denmark

    NoHo in Norway and in Denmark: Operational + Unique operating model combined with strong local brands excellence * Decades-long experience and sustainable practices support profitable growth + Versatile restaurant portfolio and solid operating model diminish seasonal and cyclical fluctuations + Proc

  53. Slide 53: Market is very fragmented: ~22k restaurants

    3 Market is very fragmented: ~22k restaurants and EUR 9bn market (NOK 105bn) The largest players in Norway: Egon appr. NOK 2bn turnover (1.9%) Pizzabakeren appr. NOK 1,5bn turnover (1.4%) Peppes/Jordanes appr. NOK 1,5bn turnover (1.4%) Eik appr. NOK 1bn turnover (0.9%) Akershusgruppen = appr. NOK 69

  54. Slide 54: Market is very fragmented: ~18k restaurants

    Market is very fragmented : ~18k + restaurants and EUR 7bn market (DKK 52.2bn) The largest players in Denmark: Madklubben DKK 448m turnover (0.9%) Cofoco DKK 373m turnover (0.7%) 2 Sovino Brands DKK 298m turnover (0.6%) he: - y i= Noho Denmark DKK 269m turnover (0.5%) MBs 4 bd SS 5 ; Dining Six DKK

  55. Slide 55: Triple Trading: vertical synergies and investment activities

    55 CMD 22 May 2024 @ Triple Trading: vertical synergies and investment activities Gibletg ae U ROYAL KEVIN.MURPHY . —— UNIBREW IRONMAN. -~ COCKS — eo OLIOLI

  56. Slide 56: a. aa

    a. aa SS

  57. Slide 57: Financial targets for 2027

    Financial targets for 2027 Jarno Vilbonen CFO NOHO

  58. Slide 58: Net debt development

    Net debt development * Our balance sheet has strenghtened since the COVID-19 pandemic * Net debt is at a lower level than before COVID-19 * Simultaneously, company profits have increased substantially. Both turnover and profitability have increased significantly compared to pre-COVID times * Net deb

  59. Slide 59: Understanding IFRS liabilities

    Understanding IFRS 16 liabilities * Interest bearing liabilities in the balance sheet have grown substantially — Why? — Does the company have too much debt? — What will happen in the future? + Understanding IFRS 16 liabilities — IFRS 16 liabilities will grow as the business grows — Wedonot optimize

  60. Slide 60: Financing

    Financing Li ‘ ot f feet i t ° Wearenegotiating on anew financing agreement, which would enable a more balanced repayment of loans and execution of our profitable growth strategy « Weare simultaneously evaluating strategic options to accelerate our international business’ profitable growth + New par

  61. Slide 61: Our strong cash flow and negative net working capital support growth

    Our strong cash flow and negative net working capital support growth Strong cash flow and negative net working capital enable the execution of our growth strategy * The financing agreement under negotiations will release significant part of cash flows for business development * Acquisitions remain i

  62. Slide 62: Long-term financial targets 2025-2027

    Long-term financial targets 2025-2027 62 CMD 22 May 2024 Finnish operations: International business: Dividend: Net debt: Turnover of approx. MEUR 400 and maintaining the current good level of EBIT margin Profitable growth and creating shareholder value Company aims to distribute annually increasing

  63. Slide 63: Strong and profitable growth in Finland, international business will continue with a new model

    CMD 22 May 2024 Strong and profitable growth in Finland, international business will continue with a new model PROFITABLE GROWTH IN FINNISH RESTAURANT AND ENTERTAINMENT MARKET ACTIVE INVESTOR ROLE IN THE INTERNATIONAL RESTAURANT MARKET i) ae

  64. Slide 64: Net debt to operational EBITDA around 2x at the end of the strategy period

    64 CMD 22 May 2024 Net debt to operational EBITDA around 2 at the end of the strategy period 3x \y NET DEBT TO OPERATIONAL EBITDA In the long-term term, the company aims to decrease the ratio of net debt to operational EBITDA, adjusted for IFRS 16 lease liability, to the level of approx. 2. 2x 2023

  65. Slide 65: Our dividend policy remains unchanged

    Our dividend policy remains unchanged Covid-19 Dividend/share, € Pere DIVIDEND POLICY an In the long-term, NoHo aims to distribute annually increasing dividends. Dividend yield, calculated with share price at the end of December 2023, was 5.0%. “The proposed dividend payment was cancelled N t I 65 C

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NoHo Partners — Investor Day (May 2024) on 6ix