Humble Group Ab · OMXSTO:HUMBLE
Humble Group Ab — Investor Presentation (March 2023)
33 slides from Humble Group Ab's investor presentation, March 2023
Slide 1: Investor Presentation Q1 2023
Investor Presentation Q1 2023 1
Slide 2: Important notice
Important notice IMPORTANT NOTICE This presentation and the information contained herein are being presented by Humble Group AB (publ), reg. no. 556794-4797 (the “Company”). By attending a meeting where this presentation is presented, or by reading this presentation, you agree to be bound by the fol
Slide 3: Today's Presenter
TODAY’S PRESENTER Humble Group at a Glance Humble DNA Growth Strategy Value Creation Platform SIMON PETRÉN Segments Deep Dive Founder & CEO Humble Group Financial Overview and Outlook 2023 3
Slide 4: Humble Group at a glance
Humble Group at a Glance Humble Group at a glance A leading FMCG group in the forefront of functional foods and sustainable products Humble Group is a Sweden-based FMCG group that supplies cutting edge and healthy sugar reduction and vegan products as well as eco-friendly and sustainable products
Slide 5: Humble Group: On a path to disrupt the industry
Humble Group at a Glance Humble Group On a path to disrupt the industry HUMBLE GROUP IS A FUTURE-FMCG OUR VALUES POWERHOUSE COMMITTED TO Innovation ENABLE PRODUCTS Entrepreneurship AND BRAND Integrity POTENTIAL, WITH A Passion FUNDAMENTAL POSITION IN GLOBAL MEGA TRENDS; FUNCTIONAL FOOD, ECO-FRIENDLY
Slide 6: Humble Group's DNA
Humble DNA Humble Group’s DNA Committed to providing consumers innovative, sustainable and healthy FMCG products GLOBAL FORCES… …ENABLED BY SUCCESS FACTORS HUMAN HEALTH GLOBAL SUSTAINABILITY INNOVATION ENTREPRENEURSHIP Reduces the risk of obesity, Focus on ensuring a sustainable Challenge, innovate
Slide 7: Sales Growth
Growth Strategy SALES GROWTH MAIN MARKETS AND GROUP POSITIONING Origin •Originating from the Nordics •Main market and Humble HQ. •Prioritised main market and continued strong positioning Key markets today •Key markets with established Humble subsidiaries. •Continue to grow in current key markets and
Slide 8: Humble Incubator
Value Creation Platform HUMBLE INCUBATOR THE SWEDISH BRAND FACTORY PRODUCTION: Preferably by a HG subsidiary to maximize gross profit and to ’’keep everything in-house’’. PRODUCTION BRANDS: Minimum 3 new brands created/year focusing on better for you or better for the planet type of products. DISTRI
Slide 9: Humble Platform
Value Creation Platform HUMBLE PLATFORM FMCG POWERHOUSE THAT ENABLE SYNERGIES AND EFFICIENCY IN THE ENTIRE VALUE CHAIN BUSINESS DISTRIBUTION ENTREPRENEURSHIP PURCHASING TECHNOLOGY MANUFACTURING INTELLIGENCE NETWORK Decentralised Strong purchasing and Share recipes and scale on Shared manufacturing p
Slide 10: Innovation at the Core
Value Creation Platform INNOVATION AT THE CORE PATENTED TECHNOLOGY OF EUREBA SUGAR REPLACEMENT THE RESULT / SOLUTION THE PRODUCERS’ DILEMMA IN SUGAR REDUCTION IS THAT WHAT CONSUMERS WANT TO: Humble Group develops, produces and markets a unique Reduce the calories intake, composition of sweetened f
Slide 11: Synergy Sales Study
Value Creation Platform SYNERGY SALES STUDY Pändy and Swedish rollout NET SALES, PÄNDY FOODS LTM ROLLING 12 COMMENTARY SEK million +309% The graph to the left shows Pändy's sales LTM rolling 12 During 2019-2020, Pändy experienced difficulties growing sales Golden Athlete During the fourth quarte
Slide 12: The Operational Platform - New Business Segments
Segments Deep Dive THE OPERATIONAL PLATFORM - NEW BUSINESS SEGMENTS Keeping coverage of the full value chain while attaining a more clear segmentation of our core businesses Innovation Research & Development Nordic Quality Capability Distribution Nutrition Manufacturing Proof of concept Future Susta
Slide 13: Future Snacking
Segments Deep Dive FUTURE SNACKING
Slide 14: Future Snacking - Brands
Segments Deep Dive 5-year vision - Become global leading provider of next FUTURE SNACKING - BRANDS generation snacks and confectionary. Proof of concept and innovation with our own brands Attractive concept in contract manufacturing OVERVIEW Efficient supplier in private label Competitive posi
Slide 15: Future Snacking - Manufacturing
Segments Deep Dive 5-year vision - Become global leading provider of next FUTURE SNACKING - MANUFACTURING generation snacks and confectionary. Proof of concept and innovation with our own brands Attractive concept in contract manufacturing OVERVIEW Efficient supplier in private label Competiti
Slide 16: Future Snacking - Historical Development
Segments Deep Dive FUTURE SNACKING - HISTORICAL DEVELOPMENT TREND OVERVIEW 1 200 SEGMENT SHARE BY SALES PER 2022 *NET SALES SEK million 1 084 1 083,9 17% 1 000 928 801 782 800 655 83% 600 5 399,6 461 FUTURE SNACKING OTHER SEGMENTS 400 360 291 SALES CAGR 200 2015 - 2022 ~ 20.7% 0 2015 2016 2017 2018
Slide 17: Quality Nutrition
Segments Deep Dive QUALITY NUTRITION
Slide 18: Quality Nutrition - Manufacturing
Segments Deep Dive QUALITY NUTRITION - MANUFACTURING OVERVIEW 5-year vision – Become a leading full-service supplier of nutritional products in the Nordic market and be a Competitive positioning competitive alternative in other global key markets such as Australia and Western Europe Subsidiaries w
Slide 19: Arena Nutrition Platform
Segments Deep Dive ARENA NUTRITION PLATFORM Short-term o Similar brands with attractive valuations and good track record. COMMERCIAL OFFER o E-commerce Long-term Investment ongoing in an own drink o Large and well-established brands that add manufacturing production line – ca 10 MSEK. strategic
Slide 20: Quality Nutrition - Brand
Segments Deep Dive QUALITY NUTRITION - BRAND 5-year vision – Servicing customers with leading, local and OVERVIEW high-quality nutritional products in selected geographies and across pricing segments. Competitive positioning Subsidiaries with high growth potential; o - Well-renowned brand with a v
Slide 21: Quality Nutrition - Historical Development
Segments Deep Dive QUALITY NUTRITION - HISTORICAL DEVELOPMENT TREND OVERVIEW 1 600 SEGMENT SHARE BY SALES PER 2022 *Net Sales SEK million 1 460 1 460,5 1 400 23% 1 200 1 138 1 010 1 000 947 928 892 849 77% 778 5 023,1 800 QUALITY NUTRITION OTHER SEGMENTS 600 400 SALES CAGR 2015 - 2022 200 ~ 9.4% 0 2
Slide 22: Nordic Distribution
Segments Deep Dive NORDIC DISTRIBUTION
Slide 23: Nordic Distribution
Segments Deep Dive NORDIC DISTRIBUTION OVERVIEW OUR 5-YEAR VISION Be the prioritized partner of Be a competitive wholesale Capitalize on concepts and Deliver innovative solutions choice for healthy and challenger in the Nordics create well-established that exceed out customer’s sustainable brands to
Slide 24: Nordic Distribution
Segments Deep Dive NORDIC DISTRIBUTION OVERVIEW Humble Channel Segment subsidiary Non-traditional trade Food & Sports Nutrition No distribution or established sales force. Opportunity to in all segments and channels Distribution in selected categories. Non-traditional trade, Opportunity to expand
Slide 25: Nordic Distribution - Historical Development
Segments Deep Dive NORDIC DISTRIBUTION - HISTORICAL DEVELOPMENT TREND OVERVIEW 2 500 SEGMENT SHARE BY SALES PER 2022 *Net Sales SEK million 1942 1942 2 000 30% 1 628 1 500 1 329 4 501,5 1 234 70% 1 086 974 1 000 930 NORDIC DISTRIBUTION OTHER SEGMENTS 848 SALES CAGR 500 2015 - 2022 ~ 12.6% 0 2015 201
Slide 26: Sustainable Care
Segments Deep Dive SUSTAINABLE CARE
Slide 27: Sustainable Care - Manufacturing and Distribution
5-year vision – Stay innovative and continue to provide Segments Deep Dive SUSTAINABLE CARE cutting-edge personal & home care products globally Capitalize on current brand portfolio and subsidiaries unique and established positioning. OVERVIEW Focus on brand development and acquire complementary
Slide 28: Sustainable Care - Historical Development
Segments Deep Dive SUSTAINABLE CARE - HISTORICAL DEVELOPMENT TREND OVERVIEW 2 500 SEGMENT SHARE BY SALES PER 2022 *Net Sales SEK million 1 957,2 2 000 1 957 30% 1 644 1 500 1 397 4 526,4 1 216 70% 1 126 1 070 1 000 SUSTAINABLE CARE OTHER SEGMENTS 849 828 SALES CAGR 500 2015 - 2022 ~ 12.7% 0 2015 201
Slide 29: Financial Overview and Outlook 2023
Financial Overview and Outlook 2023 FINANCIALS AND OUTLOOK 2023
Slide 30: Continued Expansion and Growth
Financial Highlights CONTINUED EXPANSION AND GROWTH Amounts in MSEK The Growth is driven by; NET SALES DEVELOPMENT 4 800 Increased international expansion 1 606 Increased sales volume Additional distribution 1 347 Minor price increases Strong demand for healthier “better-for-you” and sus
Slide 31: Focus on Improved Margins
Financial Highlights FOCUS ON IMPROVED MARGINS Amounts in MSEK ADJUSTED EBITDA 551 Adjusted EBITA – margins sustained in line with previous quarters in 2022 179 Room for margin improvements in 2023 with; 148 153 Normalized freight rates 113 107 235 Less price volatility 52 27 Stronger sale
Slide 32: 2023 Outlook
2023 Outlook 2023 outlook OPERATING SEGMENTS Continued execution of strategic synergies and utilization of our operational platform to enable further innovation and expansion of our Humble brands IMPROVED MARGINS & CASH FLOW Q4 provided an indication of our initiatives to optimize working capital, c
Slide 33: Q&A
Q&A