Cloetta - Interim Report Q2 2016 - Presentation

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Q2 2016 results – 15 July 2016

David Nuutinen, CEO

Danko Maras, CFO

Jacob Broberg, SVP IR

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Good sales growth and improved operating profit

• Net sales for the quarter increased by 6.4 per cent to SEK 1,362m (1,280),

including a negative impact from foreign exchange rates of 0.5 per cent.

• Operating profit increased to SEK 142m (130).

• Cash flow from operating activities amounted to SEK 114m (163).

• Net debt/EBITDA ratio was 2.82x (3.30).

Q2 highlights

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Overall market and sales development Total sales growth of 6.4 per cent

• Somewhat negative market developments, except

in Sweden and Italy.

• Organic growth 2.0 per cent.

• Sales grew in Sweden, Finland, Norway, Denmark,

were unchanged in Germany, and declined in Italy,

the UK, the Netherlands and export markets.

• Positive sales trend in Sweden driven by improved

distribution and pick-and-mix. In Finland sales were

fueled by pick-and-mix and pastilles.

• Drop in sales in the UK partly attributable to weaker

British pound.

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Cloetta´s main markets

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1) Organic growth at constant exchange rates and comparable units was 2.0 per cent for the quarter and 0.6 per cent for the first half year.

Key ratios,

SEKm

Apr-Jun

2016

Margin

%

Change

%

Apr-Jun

2015

Margin

%

Rolling

12

Full year

2015

Net sales 1,362 6.41 1,280 5,801 5,674

Gross profit 572 42.0 9.2 524 40.9 2,274 2,211

Operating profit, adjusted 150 11.0 12.8 133 10.4 725 690

Operating profit (EBIT) 142 10.4 9.2 130 10.2 701 671

Net financial items -32 -39 -169 -178

Profit before tax 110 20.9 91 532 493

Profit for the period 77 16.7 66 408 386

Good sales growth and improved

operating profit

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Changes in net sales Apr-Jun

2016

Apr-Jun

2015

Full year

2015

Organic growth 2.0% 0.8% 1.5%

Structural changes 4.9% 1.2% 3.9%

Changes in exchange rates -0.5% 1.4% 1.4%

Total 6.4% 3.4% 6.8%

Changes in net sales

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Net sales, Operating profit and

Operating profit, adjusted

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Net sales Operating profit (EBIT) Operating profit, adjusted

52

85

178

262

90

130

212

239

108

142

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

74

108

193

257

108

133

194

255

126

150

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

1.600

0

1.400

1.500

1.300

1.200

1.700

1.193

Q4 Q1

1.313

1.238

1.622

1.358 SE

Km

1.579

1.303

Q2

1.459

Q3

1.362

1.280

2015 2016 2014

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-35

125 93

147

-16 -23

54

116

91 44

75

290 223

163 174

367

253

114

330

131

500

927

-200

0

200

400

600

800

1000

1200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

SE

Km

Cash flow from operating activities Cash flow from operating activities (rolling 12 months)

Strong cash flow from operating activities

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2012 2013 2014 2015 2016

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SEKm Apr-Jun

2016

Apr-Jun

2015

Rolling

12

Full year

2015

Cash flow from operating activities before changes in working

capital

149 100 801 697

Cash flow from changes in working capital -35 63 107 230

Cash flow from operating activities 114 163 908 927

Cash flow from investments in property, plant and equipment

and intangible assets

-32 -28 -148 -161

Cash flow from other investing activities - - -206 -206

Cash flow from investing activities -32 -28 -354 -367

Cash flow from operating and investing activities 82 135 554 560

Cash flow from financing activities -232 -34 -561 -518

Cash flow for the period -150 101 -7 42

Continued strong cash flow

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Stable net debt/EBITDA despite dividend payments

2013

Financial leverage

0,0

5,0

4,0

3,5

3,0

2,5

4,5

Q3 Q4 Q1 Q1 Q3 Q1 Q2 Q3 Q4

2,50 Target

Q2 Q2 Q1 Q2 Q4

2014 2015 2016

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Profitable growth Closure of factory

in Dieren

Implement and

drive initiatives

within pick-and-mix

Operational

excellence in

supply chain

through Lean2020

initiative

In focus

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Sweden

Norway and Finland

Travel Retail Nordic

Q2 selection of product launches

Sweden and Norway

Finland

The Netherlands

Norway

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Disclaimer

• This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

• This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended.

• This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.

• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

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