Öresund Investment Day

Jacob Broberg, SVP Corporate Communication & Investor Relations

Öresund Investment Day, 22 September 2014

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Cloetta – the leading

Nordic confectionery player

• Founded by the three Cloetta brothers in 1862

• Annual sales of around SEK 5 billion

• Leading local brands in 6 countries

• Leading market positions in Sweden, Finland, Norway, Denmark, the Netherlands and Italy

• 2,500 employees in 13 countries

• Production at 11 factories in 6 countries

• Listed on NASDAQ OMX Stockholm. The largest shareholders are Malfors Promotor, AMF Försäkring och fonder and Lannebo Fonder

2

3

Iconic brands

1836

1878

1909

1913

1927

1928

1934

1937

1938

1941

1949

1951

1953

1960

1965

1970

1976

1979

1981

2007

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Cloetta has its 6 main markets in

Western Europe

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Exports to more than 50 countries

worldwide

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Net sales

By country and by category

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Nordic market leader and

leading market positions

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Sugar confectionery, countlines, pastilles, chocolate bags and nuts

Pastilles, chewing gum and sugar confectionery

Sugar confectionery and pastilles

Pastilles and sugar confectionery

Sugar confectionery, chewing gum and pastilles

Seasonal products, sweetener and sugar confectionery

Country Leading market positions in the following categories

SWEDEN

NETHER-

LANDS

FINLAND

NORWAY

DENMARK

ITALY

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Attractive non-cyclical market

Market development in Cloetta’s main markets1) Key trends

• Market driven by increase in population, higher prices and to

some extent also increased per capita consumption

• Demand for differentiated and innovative products

• Strong brands gain market share

Market size by region Consumer behaviour

• Purchases highly impulse driven

• High brand loyalty

• Availability is an important factor for impulse driven purchases

• Appreciation of innovation – taste, quality and novelties is

important

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Best in class route-to-market

Supermarkets Convenience stores /

gas stations Other

• Customer relations

– Large and efficient sales

organisation in place on all main

markets

– 80% of total sales generated

from markets with own sales

force

• Execution

– Ensure that negotiated listing

and distribution agreements are

followed

– Ensure good visibility on shelves

and checkout lines

– Implement campaigns efficiently

C o n s u m e r s C o n s u m e r s

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Clear strategy to deliver profitable growth

• Acquisitions

• New geographies

New territory

• Broaden distribution

• Promotion planning and

execution

• Advertising campaigns

• Seasonal products

• Packaging updates and

upgrades

Every day great execution

• Sizing and pricing

• Brand extensions

• Fill white spots

• Geographical roll-out

• Brand re-launch

• Innovations

Strategic initiatives

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Stable revenues and visible earnings recovery

LTM net sales Q4 2011 – Q2 2014 LTM EBIT Q4 2011 – Q2 2014

522 499

444 416 423

467

525 561

591 577 578

364

293

166

127 125

177

284

325

418 412 443

11% 11%

9% 9% 9%

10%

11% 12%

12% 12% 12%

8%

6%

3%

3% 3%

4%

6%

7%

9% 8% 9%

0%

2%

4%

6%

8%

10%

12%

14%

0

100

200

300

400

500

600

700

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

SE

Km

Underlying EBIT LTM Reported EBIT LTM

Underlying EBIT % LTM Reported EBIT % LTM

4 658 4 699 4 791 4 826 4 859 4 902 4 821 4 856 4 893 4 959 5 066

0

1 000

2 000

3 000

4 000

5 000

6 000

2011Q4

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

Net

sale

s (

SE

Km

)

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Financial development and targets

Quarterly net sales Quarterly underlying EBIT1) Financial leverage

• Target organic sales growth: At least

in line with market growth long term

– Historical aggregate value growth of

approx. 2% in Cloetta’s markets

• Target EBIT margin: At least 14%

• Cost synergies, growth and focus on

profitability

• Target long-term net debt/EBITDA of

around 2.5x

• Objective to reach target in three

years

• Payout ratio 40-60% of net income

over time when financial target is

reached

1) Underlying EBIT based on constant exchange rates and the current company structure (excluding distribution business in Belgium and third-party distribution agreement in Italy) and excluding items affecting comparability

3 0

56

3 0

19

3 2

44

3 2

48

3 2

30

3 3

04

3 4

93

0

1 000

2 000

3 000

4 000

5 000

2012 Q42013 Q12013 Q22013 Q32013 Q42014 Q12014 Q2

Net

deb

t (S

EK

m)

1 0

84

1 2

12

1 1

59

1 4

04

1 1

27

1 1

31

1 1

94

1 4

41

1 1

93

1 2

38

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 Q2 Q3 Q4

Net

sale

s (

SE

Km

)

2012 2013 2014

47

51

124

201

91

109

160

231

77 1

10

0

50

100

150

200

250

Q1 Q2 Q3 Q4

Un

derl

yin

g E

BIT

(S

EK

m)

2012 2013 2014

x Net debt/ Underlying EBITDA LTM

4.7x 5.1x 4.4x 4.7x 4.2x 4.4x 4.6x

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Cloetta towards the future

PURPOSE / MISSION

To bring a smile to your

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Munchy Moments is our territory!

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• The acquisition of Nutisal is a significant step in to a new category with an

established brand in Cloetta home markets

– Dry roasted nuts which gives a unique ‘crisp’ to the products

– The nuts category is growing in Western Europe by 5-8%

– Nutisal is expected to be EPS accretive in 2015 and to contribute with

approximately 1 percentage point of growth per year in the next 3-5 years

• The Jelly Bean Factory brand is a premium “gourmet” product that fits

Cloetta’s core offering within sugar confectionery

– Solid growth over the last years with an attractive EBIT-margin

– Significantly strengthens Cloetta’s position in the UK

Acquisition of Nutisal and The Jelly Bean Factory

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Questions

To bring a smile to your

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