HAYPP GROUP / INVESTOR RELATIONS / INVESTMENT CASE Meny Investment case POSITION Haypp Group is a leading e-commerce player for nicotine pouches and snus. The Company believes that it will be able to maintain its strong market position through the following strengths and competitive advantages. ADVANTAGES First-mover in a market undergoing structural shift to reduced-risk nicotine products with strong momentum for online sales. Haypp is the undisputed global online market leader – with an outstanding value proposition and a loyal customer base. Unique offering to suppliers through Haypp Group’s bespoke tech platform – enabling unmatched marketing capabilities and customer insights. Extensive experience of navigating and influencing the complex regulatory waters. Track-record of strong growth resulting in economies of scale Management team with extensive experience within e-commerce and tobacco. THE MARKET The market for nicotine pouches and snus is currently experiencing a pronounced shift away from combustible tobacco products such as cigarettes to smokeless products such as snus and tobacco-free nicotine pouches as well as a shift from offline- to online sales. The underlying reasons for a shift away from traditional smoking tobacco products are driven by an increasing demand for products which are considered as safer alternatives to cigarettes in combination with legislation that favours smokeless tobacco. This shift has resulted in all global tobacco manufacturers introducing reduced-risk product strategies where nicotine pouches are a highlighted strategic area of focus. The snus market has historically seen an inflow of consumers that quit smoking but want to continue their consumption of nicotine. This trend has partly been driven by health concerns arising from smoking. Nicotine pouches are today experiencing a similar shift with consumers substituting cigarettes for the benefit of nicotine pouches. Global market size for nicotine pouches and snus (SEK billion) CHART Source: The Market Study GROWTH Haypp Group anticipates that the nicotine pouch and snus category will continue to grow for the foreseeable future and as such the company will continue to focus on this category. Particular focus will be placed on markets where consumer demand is proven and regulation is favourable. The company will continue to grow its active customer base by investing in organic customer acquisition and retention. To further support suppliers, the company will continue to develop the marketing and insights offerings, reinforcing the long-term relationships with its suppliers. Finally, Haypp Group will remain open to acquisitions to further strengthen the position in existing markets or as a means to enter new markets. Read more about our financial targets Financial targets → The Haypp Group is spearheading the global transformation from smoking to healthier product alternatives. With origins in Scandinavia our extensive experience from pioneering markets in smoke free alternatives, as well as being a leader in the e-commerce sector, we now fully take our vision to a global scale. With ten e-commerce brands, the Haypp group is present in 9 countries where we serve more than 375 000 active customers. About Haypp Group Sustainability News & Media Investor Relations Career Contact Privacy Notice Linkedin Twitter © Copyright Haypp Group 2021, all rights reserved. MADE BY WILSON CREATIVE