Viva Wine Group AB

Good morning everyone and welcome to our Q4 2025 presentation. My name is Emil Sallnes and I will together with our CFO and newly appointed Deputy CEO Linn Jävert present today. This is the agenda for today and before we go into the quarterly update and financials I want to start by giving you a short introduction to Viva Wine Group. 2025 was a year of growth and expansion. Today, almost 90% of our business is in our B2B segment, which includes the Nordic monopoly markets, as well as retailers and restaurants in both the Nordics and Europe. With the acquisition of DeltaWise, our B2B business is now present in seven markets. As you might have seen, we kickstarted the new year with the acquisition of Alfa brands in Norway, which I will come back to later in the presentation. In the Nordic monopoly market, we are the market leader in wine. With the acquisition of Delta Wines, we also entered the open market in Europe and we are the leading wine distributor in the Netherlands. Just over 10% of our sales is in the B2C segment, which consists of our e-commerce business based in Germany. We operate three platforms, Vikampo, Weinfjost and Wine&Black, selling to 11 markets. And with that, we are one of the leading online wine retailers. So, now let's move on to the Q4 update and our performance summary. Looking at Q4, I'm pleased to report that we delivered both strong growth and strong margins. Net sales increased significantly by 49%, mainly driven by the acquisition of Delta wines. Adjusted EBITDA increased year-on-year as an effect of the consolidation of Delta wines, and the adjusted EBITDA margin of 9% was also higher than last year. We also had a very strong operative cash flow in the quarter thanks to a solid operative performance. Finally, the board of directors proposes an increase to the dividend of 160 krona per share. We have had a good EPS growth driven by strong underlying business where Delta Wines has contributed positively. Now over to our latest acquisition, Alfa Brands. Alfa Brands is a fairly young company but funded and run by seasoned professionals. The management of Alfa sees the transaction as an important step to accelerate its growth rate together with Viva. The acquisition strengthens Viva's presence in Norway while it also opens up the grocery retail market in Norway for us. Worth noting is that alcoholic beverages up to 4.7% are sold outside the monopoly. It is also a significant step for Viva into the no-low segment, which is the fastest growing segment in most of the markets where Viva operates. The company, Alfa, has an innovative portfolio of both own and partner brands in the Norwegian market. For example, Storm, Crush, Vithit and Snapple. With Alfa's experienced team and clear focus on innovation and market leadership, we see a strong cultural fit. Finally, it was also an important factor for us that the whole management stays on as significant shareholders. Now let's look in more detail on the financial performance. I will hand over the word to Lynn.

Thank you, Emil. We have a strong net sales growth of 49% driven by the acquisition of Delta Wines. Organic growth was negative at 1.6 due to slow markets and high comparable numbers in our B2B segments. Our estimate is, however, that we have performed above the markets. In our B2B segment, we continue to be the clear number one in the Nordics and Delta Wines' performance and integration is going according to plan. B2C reported positive organic growth for the fourth quarter in a row and also continued to grow its customer base. Looking at the adjusted EBITDA, it has increased versus previous year, mainly as an effect of the consolidation of Delta wines, but also excluding Delta wines, adjusted EBITDA increased versus previous year. The higher adjusted EBITDA margin is a result of the strong gross margin percentage in our B2B business driven by the Nordics. Looking at the cash flow, we have a strong operative cash flow and that is a result of a solid underlying operating performance and also a seasonally strong working capital development. The cash flow from our financing activities includes repayments of term loans according to plan and a reduction of overdrafts. Proceeds from the distribution issue also had a positive impact during the quarter. Our net working capital had a strong development and the net working capital to net sales ratio is down from 12.9% in previous quarter to 9.6%. A high level simulation including net sales for 12 months shows that the ratio is slightly below last year's number, supported by good numbers by Delta Wines. Our net debt to EBITDA is developing according to plan and is down from 3.6 in Q3 to 2.6. We expect to continue to deliver as the EBITDA of Delta wines is consolidated month per month. A high level simulation of rolling 12 months of EBITDA reduced the number from 2.6 to approximately 2.5, which is in line with our financial targets.

Thank you, Lynn. So now over to the performance by segment. First out is our B2B segment. Viva Wine Group is now a significant player in the European retail business of wine. In the Nordic monopolies, we remain the clear market leader and we increase our market share. We are number one in Sweden and Finland, and we have now moved up to number five in Norway. For the Nordic markets combined, Viva Wine Group reported a market share of 22.6% for the full year, which is a slight increase from last year. Our B2B business in Europe has performed in line with expectations and above the market according to our estimates. With the acquisition of Alfa brands, Viva Wine Group is now a significant player also in the Nordic grocery retail business.