Humble Group Ab · OMXSTO:HUMBLE
Humble Group Ab — Investor Presentation (May 2024)
39 slides from Humble Group Ab's investor presentation, May 2024
Slide 1: Investor Presentation Q1 2024
Slide 2: Important Notice
IMPORTANT NOTICE This presentation and the information contained herein are being presented by Humble Group AB (pub), 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 following limitations a
Slide 3: Business Overview, Segments and Financial Information
Uji ve SIMON PETREN Founder & CEO BUSINESS OVERVIEW 4 ABOUT HUMBLE GROUP. 7 HUMBLE PLATFORM 10 STRATEGIC INITATIVES 11 HUMBLE INCUBATOR 12 INVESTMENT STRATEGY 13 BOARD OF DIRECTORS 14 EXECUTIVE TEAM SOURCE | oh OF BUSINESS SEGMENTS 16 SEGMENT OVERVIEW 17 FUTURE SNACKING 20 SUSTAINABLE CARE 24 QUALIT
Slide 4: Q1 2024 key figures
Figures in SEK Million APM: Alternative Performance Measure. LTM. Definition can be found on p.24 in Interim Report Q1 2024
Slide 5: Our Values, Purpose, Vision
OUR VALUES WITH A FUNDAMENTAL MARKET POSITION, WE ARE COMMITTED TO PROVIDING Innovation CONSUMERS INNOVATIVE, SUSTAINABLE AND HEALTHY FMCG PRODUCTS. Entrepreneurship Integrity AT HUMBLE GROUP, WE BELIEVE IN DOING BUSINESS RESPONSIBLY, ETHICALLY, AND Passion SUSTAINABLY. WE CALL IT DOING BUSINESS “TH
Slide 6: The Next Generation of Brands
BUSINESS OVERVIEW il ws Ym THE NEXT GENERATION OF BRANDS be S \ J BEYOND MEAT tw ee F M C G j Nn d U Si ry Pant based meet Oat-based products Plant-based baby formula Low-calorie jce ial Founded 2009 Founded 1994 Founded 2012 Founded 2012 | \ 4 4 RT i \\ disruptors ha axpar| SWEETS EST, Founded 2013
Slide 7: Humble Platform: An Ecosystem to Catalyze Growth
ABOUT HUMBLE GROUP HUMBLE PLATFORM. STRATEGIC INITATIVES HUMBLE INCUBATOR INVESTMENT STRATEGY BOARD OF DIRECTORS EXECUTIVE TEAM HUMBLE PLATFORM AN ECOSYSTEM TO CATALYZE GROWTH & SUSTAINABILITY ll-being oduct ACTIVE C Nia Uj vox HUMBLE GROUP’| INVESTOR PRESENTATION 7
Slide 8: Humble Platform
HUMBLE PLATFORM * Humble Group applies a decentralized business model where local decision-making meets central support functions. We support our subsidiaries by providing financing solutions to ensure economic stability and growth, assist with integrated analysis functions, and thereby identify opp
Slide 9: Real Time Follow Up and Decision Improvement for Local Management
REAL TIME FOLLOW UP AND DECISION IMPROVEMENT FOR LOCAL MANAGEMENT Recap 2023 Y Majority of companies integrated compeateverials Corporatesegmente campanyrame Revenue Outlook Humble Group “ a “ v Power BI real time from 75% to 99% Revenue Humble Group ~ LTM Rolling Revenue and LY Revenue by Year and
Slide 10: Humble Platform: Strategic Initiatives
BUSINESS OVERVIEW 3LE GROUP TRANSACTION: HUMBLE PLATFORM FINANCIAL TRANSACTIONS (LAST 12 MONTHS) PURPOSE AMOUNT (SEK) STATUS INITIATIVE, 4 M/ PROJECT STATUS Capital Structure = New issue 850m = Bank loan 1,650. * Strengthen balance sheet = Reduce interest cost Completed Divestment Property Portfolio
Slide 11: Humble Incubator: A Swedish Brand Factory
HUMBLE INCUBATOR A SWEDISH BRAND FACTORY - CASE STUDY CHALLENGE: Humble Group sought to expand its reach in the children's product market, particularly in language learning, leveraging its strong production and distribution networks. SOLUTION: Teaming up with Hatten Education, Humble will seek to la
Slide 12: Our Approach to M&A and Investment Strategy
OUR APPROACH TO M&A AND INVESTMENT STRATEGY Other +) Ȣ > SHARE DEALS ET DEALS. JOINT VENTURE Invest in entrepreneurial led businesses, with whom we are sharing our vision to deliver sustainable, high-quality products ? Join forces with key Invest in distressed assets, stakeholders in joint machiner
Slide 13: Board of Directors
HUMBI EP Nize BOARD OF DIRECTORS DAJANA MIRBORN CHAIRMAN OF THE BOARD # of shares: 41,114 Board member since 2021 Independent in relation to the company, group management and major shareholders in the company, Education: Master's degree from the University of Gothenburg, Executive Education from INS
Slide 14: Executive Team
UT HUMBLE G HUMBLE P' ATF EXECUTIVE TEAM SIMON PETREN Founder & CEO # of shares: 6,416,000 Simon holds a Master's degree in Product Innovation from KTH and Business Administration from Stockholm University. Simon is a co-founder of Pandy Foods and was its CEO until Pandy became part of Humble Group.
Slide 15: Business Segments
Slide 16: Four Business Segments Covering Various Consumer Categories
NET SALES BY MARKET LTM NORDICS 56% OTHER EUROPE HUMBLE GROUP | INVESTOR PRESENTATION FOUR BUSINESS SEGMENTS COVERING VARIOUS CONSUMER CATEGORIES ACROSS THE VALUE CHAI! FUTURE SNACKING OF i Our focus on innovative, sustainable snacks and treats prioritizes health without compromising taste or qualit
Slide 17: Future Snacking
URE SNACKING VISION LEADING PROVIDER OF HIGH-QUALITY SUGAR-REDUCED AND CONFECTIONARY SNACKS. Lae % r
Slide 18: Clear Value Offering Across the Segment
CLEAR VALUE OFFERING ACROSS THE SEGMENT I +90% market share in within sugar-free and healthier candy in the Nordics. HB High technological barriers limit possible market entry for competitors. Leading brands with high recognition in innovative space. a I Fast-paced product development and R&D enable
Slide 19: Segment Overview: Future Snacking
SEGMENT OVERVIEW FUTURE SNACKING SUSTAINABLE CARE JORDIC DISTRIBUTION Share of Group Net Sales Share of Group Adj. EBITDA Q1 2024 Qt 2024 = The sales trajectory for confectionery and snacks remains robust with a positive momentum. Notably, Pandy has secured further new listings in existing, and new,
Slide 20: Sustainable Care
— s TAINABLE : SUST/ WY ¥ VISION A MODERN PERSONAL- AND HOME CARE RETAIL PARTNER. HUMBLE GROUP | INVESTOR PRESENTATION = f
Slide 21: Cutting-Edge Personal & Home Care Products
FUTURE SNACKING SUSTAINABLE CARI ALITY NUTRITION CUTTING-EDGE PERSONAL & HOME CARE PRODUCTS I Strong brands in attractive spaces - showcased competitive challengers to traditional brands. HB High entry barriers for competitors and opportunity to capitalize on mover-advantage. IB Pioneering businesse
Slide 22: Global Retail Platform with International Reach
BUSINESS SEGMEN FUTURE SNACKING QUALITY NUTRITION NORDIC DISTRIBUTION GLOBAL RETAIL PLATFORM WITH INTERNATIONAL REACH AND COMPETITIVE MARKET POSITIONING I Sharing of licenses, brands, suppliers and other IP. Cross-selling and net working capital optimization. Sharing of freight contracts from Solent
Slide 23: Segment Overview: Sustainable Care
Share of Group Net Sales Share of Group Adj, EBITDA Qi 2024 Qi 2024 THE Group cost HUMBLE wM fancystage co. cmon ECO by Naty. ‘Amounts in MSEK 522 NET SALES Qn 2024 HUMBLE GROUP | INVESTOR PRESENTATION Solent, the largest entity in Humble, delivered solid topline growth with an improved profitabilit
Slide 24: Quality Nutrition
vis NORDICSSEEADING BUSINESS To BUS \ PROD] AUSTRALIA; A SPORTS N HUMBLE GROUP | INVESTOR PRESENTATION
Slide 25: Quality Nutrition: Full-Service Offering
LITY NUTRITION FULL-SERVICE OFFERING ACROSS MULTIPLE CATEGORIES WITH SCALABLE PRODUCTION AND BRANDS Lr I Several leading brands with high recognition in innovative space. Unique market positioning in the Nordic nutrition manufacturing landscape I Full-service offering across multiple categories with
Slide 26: Commercial Manufacturing Offer
ENTS Fl a F FUTURE SNACKING QUALITY NUTRITION NORDIC DISTRIBUTION COMMERCIAL MANUFACTURING OFFER Arena Nutrition enhance Humble's B2B customer experience by delivering a complete portfolio of high-quality products across several categories within sports nutrition. I Arena Nutrition enables an increa
Slide 27: Segment Overview: Quality Nutrition
Share of Group Net Sales Q1 2024 Share of Group Adj. EBITDA QI 2024 a SN IBRucton Vitargo cet WOLVERINE <> gsr c) ‘Amounts in MSEK Kisie} NET SALES Qn 2024 Group cost —_* VITERNA eWalco 122 GROSS PROFIT Qi 2024 = Body Science received an award for “Best New Protein Bar for 2024" relating to its newl
Slide 28: Nordic Distribution
= TT _- caitlin VISION NO. 1 DISTRIBUTION PARTNER FOR HEALTHY AND SUSTAINABLE BRANDS
Slide 29: Prioritized Partner for Healthy and Sustainable Brands
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 enter with strong reach in key distribution in D2C and B2B expect
Slide 30: Distribution Channels
Non-traditional trade ▪ Non-traditional trade, ▪ Grocery trade Grocery trade ▪ Specialty trade, ▪ pharmacy trade Specialty trade, fitness ▪ stores Convenience trade, ▪ fitness stores
Slide 31: Segment Overview: Nordic Distribution
IN SEGMENT OVERVIEW FUTURE SNACKING SUSTAINABLE CARE NORDIC DISTRIBUTION Adj. EBITDA . . same jy 7 Share of Group Net Sales Share of Group Ad «Slightly weaker margin levels across the segment, mainly due prices increases from suppliers. As a result of the development in prices, several subsidiaries
Slide 32: Plastic free gum, Made in Denmark
i Made in Denmark win8 804 ¢ Plastic free gum y i \ Cum 2 Plastic free gum F ee SO Plastic free gum - ( i Bi, (- ¢ Made in Tr a y ¥ | 2 B z o ; S & ~3 <
Slide 33: Strong Organic Proforma Net Sales Development
STRONG ORGANIC PROFORMA NET SALES DEVELOPMENT TREND OVERVIEW SEK million NET SALES * Solid growth every year that we have consolidated proforma (2016). * Only 2 months with negative organic growth since 2019 and they were due to covid. * Average longevity of Humble subsidiaries is 22 years, SALES CA
Slide 34: Net Sales
NET SALES RETAINED GROWTH MOMENTUM IN A CHALLENGING COMPARISON QUARTER So NET SALES DEVELOPMENT 1 1838 0 ien 1888 1592 1606 i| 1347 an Q12022 Q12023 QI 2024 Q2 2022 Q2 2023 Q3 2022 Q3 2023 Q4 2022 Q4 2023 LTM NET SALES DEVELOPMENT Q12022 = 2.2022» Q3.2022 © Q4.2022 © Q12023-)« Q22023 §—Q32023 «= Q42
Slide 35: Gross Profit
GROSS PROFIT SLIGHTLY IMPROVED GROSS MARGIN DESPITE PRICING VOLATILITY GROSS PROFIT DEVELOPMENT 529 500 415 342 297 Q12022 Q12023 Q12024 Q2 2022 Q2 2023 Q3 2022 Q3 2023 LTM GROSS PROFIT DEVELOPMENT 614 478 Q4 2022 Q4 2023 12022 = 2.2022» Q3.2022 §=—Q42022 © 12023) Q22023 = Q3. 2023 Gross Profit LTM
Slide 36: Profitability
PROFITABILITY SOUND PROFITABILITY GROWTH ADJ, EBITDA DEVELOPMENT 168 169 152 128 ) | | aaa Qe a2 Q3 Q3 Q4 Qa 202220232024 20222023» 20222023 «2022-2023 LTM ADJ. EBITDA DEVELOPMENT. qe qi Q@2. a3) 4 Qt 2 3 4 2022 2022 2022 2022 2023 2023 2023 2023 2024 —Adjusted EBITDA LTM “HUMBLE GROUP INVESTOR PRES
Slide 37: Sustained Cash Flow Management
Sustained a consistent and strong operating cash flow exceeding SUSTAINED CASH FLOW MANAGEMENT - AFFECTED BY INCREASED PURCHASES +100 MSEK in line with efforts to improve the cash flow generation. Negative effect on working capital mainly attributable to an increased inventory, as a result of subsid
Slide 38: 2024 Focus
1. EXECUTE ON STRATEGIC INITATIVES AND ENSURE EFFECTIVE IMPLEMENTATION 2. MAINTAIN HIGH CASH CONVERSION 3. IMPROVE GROSS MARGIN 4. LAUNCH NEW INCUBATOR INIATIVES THAT CONTRIBUTES TO INCREMENTAL GROWTH 5. INTERNATIONALIZE OUR STRONGEST BRANDS AND CAPITALIZE ON MOMENTUM
Slide 39: Simon Petren, CEO
SIMON PETREN CEO +46 (0) 70 999 94 55 simon@humblegroup.se