President and CEO Bengt Baron comments on the results for the first quarter of 2013

Underlying EBIT improved significantly in the first quarter compared to last
year. This means that we have continued the positive earnings trend from the
preceding quarter, which demonstrates that our strategy is working.
The company’s underlying EBIT improved to SEK 91m for the quarter (47). The
increase is mainly attributable to realized synergies from the merger, the
factory restructurings and the price increases that were implemented during
2012. The price increases were required in order to offset higher raw material
costs and will have a gradual effect during 2013.

Our underlying EBIT margin for the quarter was 8.1 per cent (4.1) and the gross
margin increased to 37.5 per cent (35.5). Cash flow from operating activities
amounted to SEK –16m (–35).

We continued to amortise loans with SEK 90m during the quarter, which is in line
with our plan.

Market development in the first quarter remained relatively weak, particularly
in Italy, the Netherlands and Denmark. These markets exhibited negative growth
in virtually all segments in which we are active. In the other markets,
development was more positive, but still fragile.

Underlying net sales declined by 3.3 per cent in the quarter. One driver for
this decline was a reduction in contract manufacturing on behalf of one major
customer. Excluding this contract manufacturing, sales fell by 2.4 per cent. The
customer has terminated part of the agreement, which will impact sales going
forward.

Sales were up in Sweden, the Netherlands and countries outside the home markets,
while they were stable in Finland and Germany. Denmark and Italy accounted for
most of the drop in sales. The decrease in sales in Denmark is due to the high
sugar tax, which has induced a shift of purchasing to the border trade. However,
Cloetta has also lost a large share of its sales to one of the major customers
due to unresolved contract negotiations. The lower sales in Italy are
attributable to continued weak market conditions.

The integration process has been essentially completed from an operational
standpoint. The remaining activities consist of some insourcing and IT
integration, both of which will take place during the year. Overall, the
integration has been successful with regard to both timing and cost savings. The
previously communicated savings of SEK 65m will be realised during 2013.

The supply chain restructuring is proceeding according to plan. During the
quarter, the factory in Aura, Finland, was closed and the property was divested.
The factory in Alingsås was also sold during the quarter. The products that were
manufactured in Aura have thus been moved to the receiving factories. Two of the
three factories (Alingsås and Aura) affected by the restructuring programme have
been closed and their production transferred. At present, equipment is being
installed in Ljungsbro, Sweden, and Levice, Slovakia, in order to take over
production from Gävle. The factory in Gävle, Sweden, is planned to be closed in
the first quarter of 2014.

During the quarter, we also completed the restructuring of our Scandinavian
warehousing operations with the transfer of the warehouse in Malmö to the new
outsourced facility in Helsingborg, Sweden. This is the same facility to which
the warehousing operations in Norway and Denmark were previously moved.

In total, the previously announced supply chain restructuring will generate
savings of SEK 100m towards the end of 2014.

Our performance in the first quarter reinforces my belief that we are on the
right track. We have essentially completed the integration process as planned
and the factory restructurings are also proceeding according to plan. The focus
in the coming quarter will therefore be on completing the factory restructurings
and continuously drive our business by developing, marketing and selling our
products.
Contact
Jacob Broberg, Senior Vice President Corporate Communications and Investor
Relations, 46 70-190 00 33
About Cloetta
Cloetta, founded in 1862, is a leading confectionary company in the Nordic
region, the Netherlands, and Italy. In total, Cloetta products are sold in more
than 50 countries worldwide. Cloetta owns some of the strongest brands on the
market, such as Läkerol, Cloetta, Jenkki, Kexchoklad, Malaco, Sportlife, Saila,
Red Band and Sperlari. Cloetta has 10 production units in five countries.
Cloetta’s class B-shares are traded on NASDAQ OMX Stockholm. More information
about Cloetta is available on www.cloetta.com