Slides
Page 1
Interim report Q2/2025 Strong quarterly growth with continued strengthened profitability
Page 2
Agenda 1. Cloetta in brief 2. Strategic priorities and financial targets 3. Quarterly update 4. Financials 5. Q&A 2
Page 3
Northern Europe’s leading confectionery company creating joy through iconic brands for over 160 years 3 Employees (on average) 2,600 Countries with operations 11 Profitability 10.6% Operating profit margin, adj.10 Superbrands of net sales >50% Joined the Science Based Targets initiative (SBTi) in 2020 Net sales 8,6 SEKbn Pastilles & Gum Candy & Chocolate Pick & mix Powered by Joy All numbers are FY2024
Page 4
Investment case 4 Northern Europe’s leading confectionery company, creating joy through iconic brands for over 160 years A non-cyclical market with stable consumer demand outgrowing FMCG Food Broad confectionery portfolio favoured by evolving consumer preferences Iconic brand portfolio of international Superbrands and strong local hero brands with high consumer loyalty Attractive growth opportunities in scaling of Superbrands , focused expansion beyond core markets , and excelling in marketing and innovation Attractive cash flow generation with clear upside on margin and shareholder value 2 3 4 5 8 Selective M&A to accelerate strategy of geographic presence and category expansion 6 7 Committed to sustainability and responsible sourcing across the value chain
Page 5
Agenda 1. Cloetta in brief 2. Strategic priorities and financial targets 3. Quarterly update 4. Financials 5. Q&A 5
Page 6
To be the winning confectionery company, inspiring a more joyful world Our vision 6
Page 7
Strategic framework to drive profitable growth Win with our Superbrands Grow beyond core markets Excel in marketing and innovation Enhancing the operating model 1 2 3 Vision Strategic priorities Further leverage people & culture Accelerator To be the winning confectionery company, inspiring a more joyful world Selective M&A Enablers 7
Page 8
Very successful launch of ice cream cones Continued successful entry of TUPLA in the ice cream category • Previous successful entry of Tupla in the ice cream category through tubs • In Q2, also TUPLA ice-cream cones were launched • Based on initial data and estimates, the TUPLA cones are the most sold ice cream cones in Finland during first weeks after the launch • Initial sales data indicates that TUPLA cones will be one of the most sold ice- cream cones in Finland in 2025 8 Win with our Superbrands1 From countlineinto new categoryfollowed by product expansion
Page 9
IKEA collaboration and further expansion in US Update on the gradual step up in North America and new global agreement with IKEA 9 Grow beyond core markets2 Further expansion in North America • Steadily growing sales • Candy King concept pilot installations provide valuable new insights into long-term US consumer preferences • Continue to see very good opportunities to grow both our business segments in North America New global agreement with IKEA • Sales during past two years based on a limited agreement with the IKEA’s Swedish operations • This year a global supplier agreement was signed • We now look forward to truly build a global collaboration with IKEA over the mid-term
Page 10
14% Our new long-term financial targets >50%<1.5x3-4% Organic sales growth Dividend policyNet debt /EBITDA¹Adjusted EBIT margin Previous target 1-2% 14% long-term Around 2.5x 40-60% long-term ≥12% by 2027 10¹ Net debt / EBITDA target may be temporarily exceeded in the event of acquisitions, provided there is a clear path to de-leveraging of profit after tax
Page 11
Agenda 1. Cloetta in brief 2. Strategic priorities and financial targets 3. Quarterly update 4. Financials 5. Q&A 11
Page 12
Strong growth with continued strengthened profitability Q2/2025 • Strong growth on top of expected Easter sales effect • Continued strengthening of profitability • Broad portfolio continues to be a strategic strength during times of fast changes in consumer behaviour • Continue to expect organic growth close to new long-term target of 3-4% in the second half of the year • Adjusted profitability of 11.5 per cent with continued strong investments in Superbrands • Alignment of operating structure to new strategic priorities and improving agility proceeding according to plan - new organisation announced 12 SEK bn Q2 Net sales +6.5% Q2 Organic sales growth Branded Pick & mix +1.0% +21.3% 2.1 Organic growth
Page 13
Agenda 1. Cloetta in brief 2. Strategic priorities and financial targets 3. Quarterly update 4. Financials 5. Q&A 13
Page 14
14 Strong growth on top of the expected Easter sales effect Net sales Q2/24 +6.5% Organic growth -1.0% Structural changes -3.5% FX Q2/25 2 038 2 078 +2.0% Branded packaged: +1.0% Pick & mix: +21.3% 2024 +2.6% Organic growth -1.0% Structural changes -2.0% FX 2025 4 132 4 117 -0.4% Branded packaged: -1.2% Pick & mix: +12.7% Q2/2025 YTD/2025
Page 15
Sales development Q2 share of net sales and organic sales growth by quarter 15 69% 31% Branded packaged products Pick & mix Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q2/25 8.2% 10.2% 6.1% 20.5% 14.8% 10.9% 11.1% 3.6% 1.2% 1.4% 1.6% 1.0% Q1/25 -3.4% 24.4% 15.7% 21.0% 32.7% 22.4% 16.4% 13.6% 11.7% 3.4% 18.6% 17.3% 4.6% 21.3%
Page 16
16 Continued strengthening of the profitability Operating profit, adjusted • Improvement mainly driven by continued strong performance in the Pick & mix segment • Profitability further strengthened by continued net revenue management including portfolio rationalisation • Improvement with continued long-term investment in brands 36 Q2/24 -8 Vol./Mix Price/ Cost -10 FX Q2/25 222 24010.9% 11.5% 113 2024 -50 Vol./Mix Price/ Cost -12 FX 2025 414 46510.0% 11.3% YTD/2025Q2/2025
Page 17
Profitability improved in both business segments Operating profit, adjusted, by segment 17 Branded packaged Pick & mix 183 181 Q2/24 var. Q2/25 -2 39 5920 Q2/24 var. Q2/25 12.3% 12.6% 7.1% 9.1% 335 34813 2024 var. 2025 79 11738 2024 var. 2025 11.2% 12.1% 7.0% 9.3% YTD/2025Q2/2025
Page 18
18 10 Q2/24 -53 Items affecting comparability -15 FX Net SG&A Q2/25 593 535 -58 29.1% 25.7% SG&A 42 2024 -52 Items affecting comparability -17 FX Net SG&A 2025 1 046 1 019 -27 25.3% 24.8% YTD/2025Q2/2025 Investments in brands and salary inflation drive SG&A
Page 19
Cash flow • Free cash flow in the quarter follows seasonal pattern while also affected by Easter phasing. • YTD Free cash flow improved 50 per cent vs last year , from SEK 127m to SEK 191m • Other investing activities reflect divestiture of Nutisal last year 19 Q2/2025241 -8 -338 -330 Cash flow before changes in working capital -220 Changes in working capital -29 Investments in PP&E and intangible assets Free cash flow Other investing activities Cash flow from financing activities Cash flow for the period 230 28 -224 54 -171 -31 -306 Q2/2024 FCF follows seasonal pattern while improved YTD
Page 20
Lowest-ever Net debt/EBITDA for dividend-paying quarter • Net debt/EBITDA of 1.4x remains below long -term target of 1.5x despite annual dividend payment • Net debt of SEK 1.7bn increased mainly due to dividend payments of SEK 313m • Unutilised access to cash of SEK 2,4bn after cancelling greenfield -related facilities in Q2 • Refinancing of loans from credit institutions progressing well and will be finalised in H2 20 Financial position 0 500 1,000 1,500 2,000 2,500 3,000 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1.5 0.1 0.9 2.2 0.7 0.8 Utilised Unutilised 2.3 2.4 Access to cash 2023 Net debt/EBITDA Net debt 2024 2025 2022 Commercial Papers Credit Facilities Cash
Page 21
Q&A
Page 22
Thank you. We hope the rest of your day is filled with many moments of joy! Upcoming IR events 2025 August 19 Plant visit to Ljungsbro in Sweden (arranged by SEB) October 11 Silent period starts November 5 Interim report Q3 November 6 Investor lunch in Stockholm (Danske Bank)
Page 23
Appendix
Page 24
Reported Greenfield Pro-forma excl. greenfield Other items affecting comparability Adjusted Net sales 2.078 - 2.078 - 2.078 Cost of goods sold -1.355 - -1.355 -8 -1.347 Gross profit 723 - 723 -8 731 Selling expenses -320 - -320 -33 -287 General and administrative expenses -215 - -215 -11 -204 Operating profit 188 - 188 -52 240 Net financial items -35 - -35 - -35 Profit before tax 153 - 153 -52 205 Income tax -37 - -37 10 -47 Profit for the period 116 - 116 -42 158 Gross margin 34,8% 34,8% 35,2% Operating profit margin 9,0% 9,0% 11,5% Effective tax rate 24,2% 24,2% 23,1% Q2/2025 Greenfield facility – Pro forma profit and loss Q2 24
Page 25
Reported Greenfield Pro-forma excl. greenfield Other items affecting comparability Adjusted Net sales 4.117 - 4.117 4.117 Cost of goods sold -2.560 129 -2.689 -8 -2.681 Gross profit 1.557 129 1.428 -8 1.436 Selling expenses -603 - -603 -33 -570 General and administrative expenses -416 -4 -412 -11 -401 Operating profit 538 125 413 -52 465 Net financial items -50 -9 -41 - -41 Profit before tax 488 116 372 -52 424 Income tax -119 -29 -90 10 -100 Profit for the period 369 87 282 -42 324 Gross margin 37,8% 34,7% 34,9% Operating profit margin 13,1% 10,0% 11,3% Effective tax rate 24,4% 24,2% 23,7% Q2/2025 YtD Greenfield facility – Pro forma profit and loss YtD 25
Page 26
Important information • This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. • This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended. • This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfullyoperate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. • The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. • No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 26