Viva Wine Group AB

Good morning and welcome everyone to our Q2 24 presentation. This is the agenda for today. And before we go into the quarterly update on financials, I just quickly want to start by giving you a short introduction to Viva Wine Group. We have two major segments, Nordics and Ecom. In the Nordic monopoly market, we are the market leader in wine, and we also have a profitable Ecom business in Europe. Our operating companies are in the Nordic monopoly market, Sweden, Finland, and Norway. while our e-comm business is based in Germany, which is also our main market for e-comm. Within e-comm, we are operating three platforms, vCampo, Weinfirst, and Wine&Black. And in total, we are now present in 11 different markets. And now let's move on to the quarterly update and the performance summary. In the quarter, we once again reported record high market shares in the Nordics, and we continue to strengthen our position as number one. Net sales for the group increased by 6.4% in Q2 with an organic growth of 6.6%. We can also report that we are again showing some organic growth in the e-commerce segment. Finally, we are very happy that our adjusted EBITDA margin of 9.6% shows a significant increase versus last year. There is some news in one of the markets in Finland where a new law amendment in Finland came into effect in June, allowing sales of wines up to 8% in grocery stores. We were well prepared and positioned for this change, and our 8% alcohol wines are based on line extensions of our strongest brands. This has been very well received by the Finnish consumers, and we have further strengthened our position in the Finnish market. Now it's time to look at the financial performance, and I will hand the word over to Lin.

Thank you, Emil. We have a positive net sales growth of total 6.4 for the group. The underlying business continues its strong development and group organic growth is even slightly better with 6.6%. The Nordics is the driver and all countries in the segment, Sweden, Finland and Norway contributes. Ecom shows a stabilization in the quarter and has a slight organic growth. We see a strengthened adjusted EBITDA margin. Both segments contribute, main part from the Nordics. and comes from increased sales, stronger gross margins and good cost control. Well-balanced price adjustments have had a positive contribution to our gross margins, and our solid sales development proves that consumers have remained loyal to our strong portfolio of brands. We will continue adjusting our prices in the next pricing windows. Our networking capital is in line with last year, networking capital towards net sale hence is improved our net debt is well within our targets taking a look at the cash flow we have a very strong operating cash flow from the ongoing business we have a planned inventory increase related to the increased sales and the new product category of eight percent wines in finland we also have one one-time effect related to payment of our previous bonus provision to econ founders of early 3 million kronos. That is now settled. In addition to this, the financing activities were affected by the dividend paid during the quarter. Our amortization is at lower level in the quarter compared to last year as a result of the refinancing finalized in Q3 last year.

Thank you, Lynn. So now over to the performance by segments. We have a continued very strong momentum in the Nordics. Our sales once again increased more than the market, and we reported record high market shares in the quarter in all the Nordic monopoly markets. The timing of Eastern had a negative effect of total market sales, while the underlying trend remained soft. So we are growing very strongly in a market that is going down at the moment. For the Nordic markets combined, we reported a market share of 22.9%, which is an increase of a whooping 2.5 percentage points from last year. We thereby strengthened our position as the number one in the market. Our great performance in the Nordics is proof that our agile and consumer-centric model delivers also in more challenging times when the market is not growing. In Sweden, we exceeded 29% market share in the quarter and beat the market in all wine segments. We saw strong growth in white wines and rosés. Also, sparkling wines continue to be important in the second quarter. And one example is the newly launched Isabella Costa, which you see on the left-hand side of the picture. A sparkling one from Spain, which has sold over 70,000 bottles since the beginning of May, which is a very strong start for a new product launched in the ordering assortment, which means that it did not have any guaranteed distribution from day one. Also in Finland, we continue to beat the market. Our long-term strategy to increase market shares in white wines is clearly showing results. An example of a new white wine is the Stretto Prima Riesling Bergen Box from Italy, which you see in the picture as well. As for Norway, we made a jump in market share to 6.3%. The increase in volume of market share in Norway is driven both by organic growth and by our latest acquisition, Target Wines. We gained market share in all wine segments. One highlight from the quarter in Norway is Best Time Cremant d'Alsace, which is a tender win, which was successfully launched in May. It's also one of the first products of Viva Wine Group once upon a time, the producer as such.