Cloetta considers closing factory in Dieren

Cloetta’s acquisition of Locawo B.V. (Lonka) in July 2015 will make it possible
to create cost savings.
Cloetta is active in a highly competitive market and must therefore constantly
be cost effective. The acquisition of Lonka creates synergies in administration,
sales, procurement and supply chain. Cloetta has evaluated how cost savings can
be achieved through the closure of the factory in Dieren, the Netherlands. The
factory has 34 employees.

It is Cloetta’s intention to close the factory in Dieren at the end of 2016 and
transfer production to the factory in Levice, Slovakia. The factory in Levice
will be extended as part of the transfer. The transfer will also make it
possible to insource additional production to the factory in Levice.

The proposed closure of the factory and transfer of production would give rise
to one-off costs and capital investments totalling approximately SEK 120m. The
bulk of the one-off costs and capital investments will occur in 2016.

The closure of the factory in Dieren, insourcing of production and synergies in
administration, sales and procurement from the acquisition of Lonka will
generate savings of at least SEK 35m on an annual basis.

The savings will have a gradual effect in 2016 and in 2017 are expected to
contribute to Cloetta’s target of an adjusted EBIT margin of 14 per cent. The
full run rate of the savings is expected in 2018.

Cloetta will initiate consultations with the local works council and the
European Works Council.

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
20 November 2015 at 08:40 a.m. CET.
Media contact
Jacob Broberg, SVP Corporate Communications & 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 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