HOCHDORF : Präsentation anlässlich des Calls zum Jahresergebnis 2023 vom 21. März 2024

Agenda

2023 in brief	Ralph Siegl
	CEO and Delegate of the Board
Financials	Thomas Freiburghaus
	CFO
Non-financial topics & outlook	Ralph Siegl
	CEO and Delegate of the Board
Questions	Via operator and/or chat

	Interview requests, questions	Marlène Betschart
		Head of Corporate Communications and IR
2	Media and IR presentation, 21.3.2024

Transformation plan 2023 - 2027

RECOVERY 2022-2023

Operational "recovery" of the current customer and product portfolio

CONVERSION	DEVELOPMENT
2023-2024	2025-2027

Strategic expansion of		Expanded sustainable
the product portfolio into
	product portfolio with
high-margin areas
	high gross margin
2023-2025

2023: EBITDA BREAK EVEN

2024: EBIT BREAK EVEN

3	Media and IR presentation, 21.3.2024

2023 in brief

4	Media and IR presentation, 21.3.2024

Category results

Significant growth in Infant Nutrition

5

Media and IR presentation, 21.3.2024

Financials

6

Key figures at a glance

Cash positive business model

	31.12.2023	*	31.12.2022		31.12.2021		31.12.2020		31.12.2019
Net sales from deliveries and services	307'840		292'141		303'515		306'199		456'797
(in CHF 1,000)
Thereof net sales Food Solutions (in CHF 1,000)	204'721		212'647		218'596		206'708		383'961
Thereof net sales Infant Nutrition (in CHF 1,000)	103'120		79'494		84'918		99'490		72'836
Gross operating profit (in CHF 1,000)	93'008		75'409		111'210		94'332		61'802
EBITDA (in CHF 1,000)	7'831		-10'056		24'715		13'869		-74'709
EBIT (in CHF 1,000)	-3'864		-20'105		6'503		-67'872		-265'309
Net result (in CHF 1,000)	-10'211		-15'791		2'552		-70'274		-271'378
Total assets (in CHF 1,000)	271'714		283'352		293'340		323'838		455'572
Equity ratio	58.1 %		59.2 %		62.5 %		55.8 %		56.60 %
Cash flow from operating activities (in CHF 1,000)	13'801		-19'648		-17'937		-11'325		-15'430
Staffing level at 31.12.	369		361		387		391		618

	*Comparisons with previous years are limited due to the restructuring and value adjustments in 2019,
7	2020 and 2021 (such as one time effects like the sale of real estate in 2021)	Media and IR presentation, 21.3.2024

Profit and Loss - YTD 2023 Operational result positive

in CHFm	FY/2022	FY/2023	Change Y/Y	%
Net sales	292.1	307.8	15.7	5.4%
Gross profit	75.4	93.0	17.6	23.3%
Gross profit margin
(in % of production	25.3%	30.8%	5.5%	21.7%
revenue)
Operational expenses	85.5	85.2	-0.3	-0.4%
EBITDA	-10.1	7.8	17.9	177.2%
EBIT	-20.1	-3.9	16.2	80.6%
Financial expenses net	3.3	6.1	2.8	84.8%
Income taxes (cost)	-8.5	0	8.5	-100%
Net profit	-15.8	-10.2	5.6	35.4%

• Total net sales increased: Less in Food Solutions. Growth in Infant Nutrition.
• Gross margin has further increased to 30.8%.
• Good cost control. OPEX remains constant.
• Positive EBITDA in 2023 reflects the positive trend in business.
• Despite an EBIT loss of CHF -3.9 Mio., we are CHF 6.2 Mio ahead of transformation plan.
• Financial expenses: paid interest (without bond interest)

8	Media and IR presentation, 21.3.2024

Cash flow (CF) statement - YTD 2023 Positive free CF and strategic CAPEX paid

in CHF million	2022	2023	Change
			in %
CF from operating activities before	-15.7	5.5	135.0%
changes in working capital
Changes in net working capital	-3.9	8.3	312.8%
CF from operating activities	-19.6	13.8	170.4%
CF from investing activities	-2.0	-5.9	-195.0%
Free cash flow	-21.6	7.9	136.6%
CF from financing activities	7.5	-3.4	-145.3%
Net change in cash and cash	-14.1	4.4	131.2%
equivalents
Cash and cash equivalents at Jan. 1	24.3	10.2	-58.0%
Cash and cash equivalents	10.2	14.6	43.1%

• Solid CF from operating activities, improvement of CHF 33.4 Mio. vs 2022.
• Reduction in networking capital driven by improved inventory and debt management.
• Modernization investments in Sulgen to reduce energy costs and to introduce new technologies in the drying process; investments in market access (FDA; US market access).
• Net change in cash and cash equivalents improved by CHF 4.4 Mio. on Y/Y basis.

9	Media and IR presentation, 21.3.2024

Balance sheet (assets) - YTD 2023 Lower level of inventories

in CHF million	31.12.2022	%	31.12.2023	%	Deviation
					in %
Cash & cash equivalents	10.4	3.7%	14.6	5.4%	40.4%
Accounts receivable	52.2	18.4%	49.6	18.3%	-5.0%
Inventory	35.2	12.4%	25.4	9.4%	-27.8%
Current assets	107.5	37.9%	96.1	35.4%	-10.6%
Property plant &	137.7	48.6%	132.1	48.6%	-4.1%
equipment
Financial fixed assets	36.0	12.7%	42.0	15.5%	16.7%
Total fixed assets	175.9	62.1%	175.6	64.6%	-0.2%
Total assets	283.4		271.7		-4.1%

Comments

• Cash positions improve by CHF 4.2 Mio.
• The reduction in current assets is mainly driven by lower inventory levels.
• Increase in financial fixed assets due the reallocation of accounts payable from Pharmalys Laboratories SA.

10	Media and IR presentation, 21.3.2024