President and CEO David Nuutinen comments on the results for the third quarter of 2015

Strong sales growth and improved operating profit
Cloetta’s operating profit (EBIT) improved in the quarter and amounted to SEK
212m (178). The operating profit margin rose to 14.5 per cent (13.7).
Furthermore, sales increased through organic growth as well as acquisition
-driven growth and foreign exchange movements.

The improvement in operating profit is due mainly to an adjustment in the
contingent earn-out consideration for acquisitions. Operating profit has been
negatively affected by exchange rate differences and one-off costs related to
the acquisition of Locawo B.V. (Lonka).

Operating profit, adjusted for one-off items, was SEK 194m (193). Operating
profit, adjusted for one-off items, has been affected by increased marketing
investments. The operating profit margin, adjusted for one-off items, was 13.3
per cent (14.8). Profit for the period improved to SEK 130m (87).

Strong cash flow and decrease in net debt/EBITDA
Cash flow from operating activities remains strong and amounted to SEK 174m (75)
in the quarter. Net debt/EBITDA decreased substantially compared to the same
quarter of last year. Despite the acquisition of Lonka during the quarter, net
debt/EBITDA only increased from 3.30 to 3.39 compared to the second quarter of
2015.

Confectionery market
The confectionery market showed overall positive development in Sweden, Norway,
Denmark and Finland. In the Netherlands and Italy, market development was
slightly negative during the quarter.

Increase in both organic and acquisition-driven growth
Cloetta’s sales for the quarter grew by 12.0 per cent, of which organic growth
accounted for 4.2 per cent, the acquisition of Lonka for 6.6 per cent and
exchange rate differences for 1.2 per cent. I am particularly pleased that our
organic sales growth reached 4.2 per cent despite the fact that we were
negatively affected during the quarter by both ongoing contract negotiations and
declining sales in a few markets. However, the contract negotiations with one
large customer in Sweden has now been finalized.

Cloetta’s sales increased in all markets except Finland, Norway and Italy. The
upward sales trend in Sweden was driven by the new Pick & Mix concept and sales
in Denmark rose primarily within pastilles. Sales in the Netherlands and Germany
rose primarily within candy bags. Sales in Norway decreased within pastilles and
in Finland, sales were down within candy bags. Sales in Italy continued to
decline and Cloetta has thus not seen growth in Italy since the fourth quarter
of 2013.

Stable raw material prices
Raw material prices were largely unchanged during the quarter, but with
continued high prices for cocoa and nuts in particular. Over the past few
quarters Cloetta has raised its prices primarily in Sweden and Norway to
compensate for unfavorable exchange movements.

Integration of Lonka according to plan
Lonka, which was acquired on 17 July 2015, has significantly strengthened
Cloetta’s position in the Netherlands. The Nordic countries and the UK are other
important markets, especially within Pick & Mix.

The process of integrating Lonka into Cloetta’s organization has begun and is
proceeding according to plan. A new joint sales and marketing organization has
been set up in the Netherlands and plans for how Lonka products will be handled
and launched in other markets are under preparation. Through the acquisition of
Lonka, Cloetta has gained two additional factories. Efforts to coordinate
integration of the factories and working methods have started. When all of the
cost synergies from the acquisition of Lonka have been realized, we expect these
to support Cloetta’s target of an EBIT margin, adjusted for one-off items, of 14
per cent. With regard to sales and profitability, Lonka has developed according
to plan during the quarter.

Cloetta a member of Bonsucro
Cloetta has continued to step up its sustainability commitment and has therefore
become a member of Bonsucro, an organization devoted to addressing the
sustainability challenges in the sugarcane sector.

Strategy stands firm
When I took over as CEO of Cloetta this summer, I said that my ambition was to
continue on the profitable growth path driven by organic sales growth, continued
cost-efficiencies and new initiatives, including potential acquisitions. I am
therefore pleased to state that in my first quarter as CEO we were able to
demonstrate both continued organic sales growth and the acquisition of Lonka.
This shows that the strategy stands firm.

Our focus moving forward is naturally on sustained profitable growth, but new
initiatives within Pick & Mix and the integration of Lonka are also prioritized
areas.

The information contained in this press release is such that Cloetta is required
to disclose pursuant to the Swedish Financial Instruments Trading Act and/or the
Swedish Securities Markets Act. The information was submitted for publication on
10 November 2015 at 08:00 a.m. CET.
Contacts
Jacob Broberg, Senior Vice President Corporate Communications and Investor
Relations, 46 70-190 00 33
Danko Maras, Chief Financial Officer, 46 76-627 69 46
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 13 production units in six countries.
Cloetta’s class B-shares are traded on Nasdaq Stockholm. More information about
Cloetta is available on www.cloetta.com