SYNERGIES, ACQUISITIONS AND NEW OPPORTUNITIES, YEAR-END REPORT 2020

“The fourth quarter accounts for the absolute best period to date and we end the year stronger than ever. The companies have exceeded our expectations and we have come a long way in the integration work and the transition to becoming an even larger group. With the recent acquisition of The Humble Co. we sum up a growth in sales pro forma of 5,606 % and adjusted EBITDA from SEK -13.1 million to SEK 50.4 million, an increase of SEK 63.5 million in twelve months. Finally, we have strengthened the owner base and the Group's financial position with an issue and a bond loan with a framework of up to SEK 500 million. We are well prepared for continued growth and look forward to welcoming additional companies to become part of Bayn Group, a future FMCG Group.” - Simon Petrén, CEO of Bayn Group AB 

FINANCIAL INFORMATION:

FOURTH QUARTER

• Net sales amounted to SEK 16,966 thousand (1,320), an increase of 1,185 % compared with the corresponding quarter last year.
• Adjusted operating profit before depreciation (EBITDA adjusted) amounted to SEK -1,751 thousand (-3,988), an improvement of 56 % compared with the corresponding period last year.
• Earnings per share amounted to SEK -0.22 (-0.12).
• Cash flow for the period amounted to SEK -36 million (0).

FOURTH QUARTER PROFORMA*

• Net sales amounted to SEK 114,745 thousand (1,320).
• Total revenues amounted to SEK 119,072 thousand (1,484).
• Adjusted EBITDA amounted to SEK 13,661 thousand (-3,988).

TWELVE MONTHS

• Net sales amounted to SEK 31,847 thousand (7,595), an increase of 319 % compared with the corresponding period last year.
• Adjusted operating profit before depreciation (EBITDA adjusted EBITDA) amounted to SEK -8,938 thousand (-13,092), an improvement of 32 % compared with the corresponding period last year.
• Earnings per share amounted to SEK -0.41 (-0.40).
• Cash flow for the period amounted to SEK 75 M (1.6).

TWELVE MONTHS PROFORMA*

• Net sales amounted to SEK 433,396 thousand (7,595).
• Total revenues amounted to SEK 450,774 thousand (8,804).
• Adjusted EBITDA amounted to SEK 50,422 thousand (-13,092).

*Proforma is shown for the purpose of Bayn Group, Pändy Foods, Tweek, Koppers Candy Sweden, Amerpharma, Green Sales Distributions, Golden to give the reader a true picture of what the group's real revenues and results had looked like on 2020-12-31 if all the companies acquired during the year, or where acquisition agreements have been communicated, had been consolidated together with the existing part of the group. The pro forma presented above shows the consolidated results of Athlete and The Humble Co. with consolidation from 2020-01-01 to 2020-12-31.
 

SIGNIFICANT EVENTS DURING THE FOURTH QUARTER

• Bayn Group completes acquisition of Koppers Candy.
• Bayn Group appoints new CEO, take office January 1, 2021.
• Bayn Group completes acquisition of Amerpharma
• Bayn Group has successfully completed an investment of 9,500,000 new shares and will receive SEK 81.225 million.
• Bayn Group successfully issues senior covered corporate bonds of SEK 100 million a framework of up to SEK 500 million.
• Bayn Group completes acquisitions of Green Sales Distributions and Golden Athlete.
   

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

• Board member of Bayn leaves at her own request.
• Henrik Patek was elected at the Extraordinary General Meeting on February 5 as an ordinary Board member until the time of the next Annual General Meeting.
• Bayn Group publishes company description and applies for admission to trading of previously issued corporate bonds on Nasdaq First North.
• Bayn Group signs agreement to acquire The Humble Co. and intends to issue bonds of SEK 200 million.
• The Board of Directors proposes that no dividend be paid for the financial year 2020.
   

CEO'S WORD FROM THE REPORT:

WE HAVE ESTABLISHED A PLATFORM FOR GROWTH 2021

The fourth quarter accounts for the absolute best period to date and we end the year stronger than ever. The companies have exceeded our expectations and we have come a long way in the integration work and the transition to becoming an even larger group. With the recent acquisition of The Humble Co. we sum up a growth in sales pro forma of 5,606 % and adjusted EBITDA from SEK -13.1 million to SEK 50.4 million, an increase of SEK 63.5 million in twelve months. Finally, we have strengthened the owner base and the Group's financial position with an issue and a bond loan with a framework of up to SEK 500 million. We are well prepared for continued growth and look forward to welcoming additional companies to become part of Bayn Group, a future FMCG Group.

To begin with, I would like to thank Patrik Edström for his important efforts as former CEO and the cooperation that has developed between us during the more than a year we have had the opportunity to work together. We had a common future vision of what we could achieve together when Bayn brought in Pändy and it feels incredibly exciting and honouring to now take over as CEO of the group. I am convinced that the journey

for Bayn with exciting new products, brands and fantastic companies has just started. The market for brands and products that contribute to human and planetary well-being has never been more exciting to operate in. Thanks to our strong growth and strengthened positioning towards being able to become a home for future FMCG products, we now meet daily new entrepreneurs, brands and companies that wants to be part of our journey forward. With joint efforts we are a stronger unit, a federation of and for entrepreneurs, which as we grow have increasing power to influence the giant FMCG industry (Fast-Moving Consumer Goods) that is in great need of change.

The year 2020 sums up the start of the construction of what we internally call a powerhouse, a green challenger who wants to change and improve. Bayn has grown from being a small company to a group with 8 operating activities and as pro-forma will soon have sales of over half a billion, with just over 10 % adjusted EBITDA. Demand for better FMCG products that are functional and sustainable is growing rapidly and consumer preferences are becoming even more demanding to fit a specific lifestyle and with conscious product choices. In a short time, we have succeeded in several fantastic collaborations between the companies, for example product launch of Nutchup, manufactured by Amerpharma and launched under Pändy, and Bayn's ingredients in Tweek, where we have now integrated the latest formulation of raw materials via EUREBA. It is one thing to talk about potential synergies before an acquisition and another to actually, in less than 6 months, be able to realize and deliver several impressive projects. I feel extremely proud of our employees in the Group and the joy of cooperation, drive and passion that exists to jointly strengthen the Group's operations.

In 2020, we launched the renewed strategy of growing both organically and through acquisitions. After six completed acquisitions and an acquisition agreement, we can state that the timing for the company group we are building is spot on. There is a pent-up need for consolidation to bring together the best companies in this fragmented and fast-growing market. Bayn has a unique position in the market where we under one umbrella we combine advanced raw material technology, modern manufacturing and sales of several leading brands with products that disrupt and break new ground among the fast-growing categories in the grocery trade.

Together, we offer an attractive growth place for entrepreneurs who have a common vision of what the FMCG of the future needs and will look like. From the start, we have gone with the thesis that we are looking to build something long-term, durable and sustainable, where we take the opportunity to pick the "raisins out of the cake". I dare say that the entrepreneurs we have brought into the group are of world-class calibre and we can be proud of a combined experience from the food industry that is hard to beat. Of course, there are challenges going from being a purely entrepreneurial company to becoming part of something bigger but with our decentralized governance model and ambition to both maintain and care for the local corporate culture that is the essence of creating each success story, there are good opportunities to continue to grow at a rapid pace for each company, without risking the classic "large company syndrome". Our philosophy is not that we should reshape or change the basic concepts of the companies that become part of the family, instead it is about continuing their own journey, while taking a stand for accelerated development and to become part of something bigger.

STRONG START IN THE NEW YEAR

We have had an intense and strong start to the new year, which has been embossed by new product launches in Pändy, strong market expansion in Tweek and several exciting listings with GSD and Golden Athlete. It is noticeable that we are a larger company, and we make new progress every day. We have also agreed on our single largest acquisition to date, The Humble Co. where we get a fantastic team led by entrepreneur Noel Abdayem. The company has a leading position in eco- and sustainability and in one fell swoop, we are opening a completely new business area where we see many exciting opportunities to grow in the future. Together with Humble, we have taken the next step and the possibilities of being able to develop and create value for our shareholders and better products for humans and the planet have never been better.

Download the full report here.

For further information, please contact:
Simon Petrén, CEO Bayn Group AB
Tel: +46709999455
Email: simon.petren@bayngroup.com

This information is such information that Bayn Group AB is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication on Cision and the company website on the 5^th of March 2021 at 13.00 CET.

About Bayn
Bayn Group is a Swedish foodtech group, supplying cutting edge and healthy sugar reduction solutions for the food and beverage industry. Bayn’s ingredient solutions, refined through scientific research and extensive market experience, facilitate new formulations and recipes that improve the taste and texture of the next generation of sugar- and calorie reduced products. For more information www.bayngroup.com

Bayn is listed on Nasdaq Stockholm, First North Growth Market, under the ticker BAYN
FNCA Sweden AB is Bayn’s certified adviser. Tel: 08-528 00 399 E-mail: info@fnca.se

Important information
This communication may contain certain forward-looking statements. Such statements are all statements that do not relate to historical facts and include expressions such as "believe", "estimate", "anticipate", "expect", "assume", "predict", "intend", "may", "presuppose", "should" or similar. The forward-looking statements in this release are based on various estimates and assumptions that in several cases are based on additional assumptions. Although Bayn believes these assumptions were reasonable when made, such forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that are difficult or impossible to predict and that are beyond Bayn’s control. Such risks, uncertainties and important factors could cause the actual results to differ materially from the results expressly or implicitly indicated in this communication through the forward-looking statements. The information, perceptions and the forward-looking statements in this release apply only as of the date of this release and may change without notice.