Q4 2021: Strong year with successful IPO and major acquisition

YEAR-END REPORT, JANUARY – DECEMBER 2021

Significant events during the quarter

• Net sales increased by 28.6% to SEK 1,031 (802) million.
• Operating profit increased by 247.1% to SEK 298 (86) million. The operating margin was 28.9% (10.7).
• EBITA, adjusted, increased to SEK 144 (90) million. The EBITA margin, adjusted, was 13.9% (11.3).
• Market share increased in Sweden to 25.6% (25.4) and in Finland to 16.8% (15.9).
• The company was listed on Nasdaq First North Premier Growth Market on 14 December 2021. The allocation option was fully exercised. In connection with the IPO, a gross amount of SEK 1,200 million was raised, which was used to strengthen the cash position, pay off loans and finance minority buyouts and the acquisition of Vicampo.de GmbH and Norwegian Beverage Group.

Significant events during the year

• Net sales increased by 17.1% to SEK 3,331 (2,845) million.
• Operating profit increased by 85.4% to SEK 521 (281) million. The operating margin was 54.0% (9.9).
• EBITA, adjusted, increased to SEK 399 (292) million. EBITA margin, adjusted, was 12.0% (10.3).
• Market share increased in Sweden to 25.3% (24.8) and in Finland to 15.9% (14.5).
• Vicampo.de GmbH was acquired in August 2021. With the acquisition, Viva Wine Group became one of the five leading wine online retailers in Europe.
• An option programme was established for the Board, management and selected senior employees where a long-term commitment is deemed to be beneficial to the company's development.

Significant events after the end of the year

• The Board of Directors proposes to the Annual General Meeting an ordinary dividend of SEK 1.50 per share.

Emil Sallnäs, CEO comments:

Strong year with successful IPO and major acquisition

Eventful and successful quarter
The fourth quarter and the full year 2021 were very eventful and successful for us. Growth for the Group reached 28.6 percent in the quarter and 17.1 percent for the year, with underlying organic growth positive for the full year but negative in the quarter compared to last year's pandemic-affected record quarter. Operating profit was impacted by large non-recurring items related to acquisitions and listing preparations but was stable measured as adjusted EBITA at 13.9 (11.3) percent in the quarter.

Strong trend in Sweden and in the Nordics
Net sales in the Swedish market in the quarter were at approximately the same level as the previous year. We faced high comparison figures in the quarter as sales through Systembolaget in 2020 and early 2021 were exceptional due to the coronavirus pandemic. We maintained our leading position and increased our market share to 25.6 (25.4) percent in the quarter. During the year, we saw a shift in product mix towards higher-priced products and increased activity among our restaurant customers, a natural consequence of the gradual opening-up of Swedish society after a long period of pandemic-related restrictions.

We increased our sales and strengthened our position in Finland with a market share of 16.8 (15.9) percent in the quarter. This is evidence of strength as total Finnish monopoly sales decreased as a result of the previous alcohol tax increase and relaxed pandemic restrictions in society. The Nordics segment increased its net sales significantly during the quarter as a result of the acquisition of the former associated company Norwegian Beverage Group.

Acquisition strengthens position in wine e-commerce in Europe
In August 2021, we made our largest acquisition ever when we bought the German e-commerce company Vicampo. Following the acquisition of Vicampo, we are now in a good position to become one of the leading and most profitable players in wine e-commerce in Europe. Synergies have been identified, and we will work intensively in the coming months to further strengthen our cost-effective e-commerce operations.

Based in Germany, we will continue to develop our eCom segment and have already launched in several new markets in the fourth quarter, including Italy, the Czech Republic and Slovakia. Wine e-commerce penetration is still relatively low in Europe, and we see great potential to grow through new purchasing patterns driven in part by the coronavirus pandemic. At the same time, we are aware that the comparative figures will be high in the first half of 2022. Viva eCom grew in the quarter from SEK 52 million to SEK 237 million, an increase of 353 percent. We have consolidated Vicampo from August 2021. Viva eCom is now Viva Wine Group's second largest segment and the segment with the highest long-term growth potential.

Raised aspirations in sustainability
Viva Wine Group has a very clear sustainability agenda, and in September 2021 we adopted a new sustainability policy where we are raising the bar further by, among other things, aiming to further develop our future climate reporting in accordance with the Task Force on Climate Related Financial Disclosures (TCFD).

Viva Wine Group became a listed company
On 14 December 2021, Viva Wine Group was listed on the Nasdaq First North Premier Growth Market, an important milestone in our development journey. As part of the preparations for the IPO, we established a clear structure to become a cohesive and professional company. At the same time, we decided on new financial targets. An important part has also been to find a good incentive structure for our entrepreneurs, partners and other key staff.

Finally, I would like to thank all our employees for delivering superb results, boosting our market share despite a challenging and unpredictable pandemic. Together we create the wonderful business that is Viva Wine Group!

Emil Sallnäs, CEO Viva Wine Group

Please see the full report in the attached pdf.

Publication and videoconference call
Viva Wine Group's Year-End Report for 2021 will be published on 24 February 2022 at 8:00 am. On the same day at 09:45-10:45 am a videoconference call will be held with CEO Emil Sallnäs and CFO Linn Gäfvert. The videoconference call can be accessed on the following Microsoft Teams link. The presentation will be available at www.vivagroup.se.

For more information, please contact:
Mikael Sundström, Director Sustainability, Communications & Investor Relations
Tel: +46 70 943 22 26
Email: mikael.sundstrom@vivagroup.se

Viva Wine Group is the leading wine group in the Nordic region, with a strong position in the European e-commerce market for wine. The Group consists of a collection of entrepreneurial companies with head office in Stockholm, developed through organic growth and strategic acquisitions. Viva Wine Group develops, markets, and sells both wholly owned and partner brands and offers affordable quality wines from all over the world to consumers in locations such as the Nordic countries, Germany, Switzerland, Austria, France, and the Netherlands. Sustainability is one of our foremost driving forces and we are a leader within certified ethical and organic wine. www.vivagroup.se