Cloetta — Interim / Quarterly Report 2017

Jul 6, 2017

Changes to Cloetta´s financial reporting as of interim report Q2 2017

As a result of the agreement to divest Cloetta Italy, the accounts, as well as comparative figures for 2016 and 2017 have been restated to reflect earnings for Cloetta excluding Cloetta Italy. In the interim report for Q2 2017, the Italian operations will be accounted for as assets held for sale and discontinued operation. The profit and loss account will be restated for the four quarters of 2016 and the first quarter of 2017.

Restated financial information is presented below.

This information constituted before the publication inside information and is such that Cloetta AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted, by the below contact person, for publication on 6 July 2017 at 12:00 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, Candyking, Jenkki, Kexchoklad, Malaco, Sportlife, Saila, Red Band and Sperlari. Cloetta has 12 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

Consolidated profit and loss account

	2016	2016	2016
SEKm	Apr-Jun 2	Jan-Jun 2	Jan-Dec 2
Net sales	1,221	2,455	5,107
Cost of goods sold	-709	-1,487	-3,084
Gross profit	512	968	2,023
Selling expenses	-215	-410	-806
General and administrative expenses	-149	-298	-582
Operating profit	148	260	635
Exchange differences borrowings and cash and
cash equivalents in foreign currencies	2	-6	-8
Other financial income	5	7	17
Other financial expenses	-37	-75	-175
Net financial items	-30	-74	-166
Profit before tax	118	186	469
Income tax	-33	-53	-122
Profit from continuing operations	85	133	347
Loss from discontinued operation, net of tax	-8	-12	-538
Profit/loss for the period	77	121	-191
Profit/loss for the period attributable to: Owners of the Parent Company
Continuing operations	85	133	347
Discontinued operation	-8	-12	-538
Earnings per share, kr SEK
Basic	0.27	0.42	0.67-
Diluted 1	0.27	0.42	0.67-
Number of shares at end of period	288,619,299	288,619,299	288,619,299
Average number of shares (basic) 1	286,159,369	286,105,529	286,193,024
Average number of shares (diluted) 1	286,471,820	286,286,202	286,447,465

1) Cloetta entered into forward contracts to repurchase own shares to fulfill its future obligation to deliver the

shares to the participants of the long-term share-based incentive plan.

2) Comparative figures have been restated for discontinued operation.

Net financial items

	2016	2016	2016
SEKm	Apr-Jun 1	Jan-Jun 1	Jan-Dec 1
Exchange differences on borrowings and cash and cash
equivalents in foreign currencies	2	-6	-8
Other financial income, third parties	1	1	1
Unrealized gains on single currency interest rate swaps	4	6	16
Other financial income	5	7	17
Interest expenses third-party borrowings and realized losses on single
currency interest rate swaps	-22	-47	-79
Interest expenses, contingent earn-out considerations	-4	-7	-10
Call option fee redemption senior secured notes	-	-	-30
Amortization of capitalized transaction costs	-4	-8	-31
Other financial expenses	-7	-13	-25
Other financial expenses	-37	-75	-175
Net financial items	-30	-74	-166

1) Comparative figures have been restated for discontinued operation.

Reconciliation alternative performance measures key figures

	2016	2016	2016
SEKm	Apr-Jun 2	Jan-Jun 2	Jan-Dec 2
Items affecting comparability
Acquisitions, integration and factory restructurings	-5	-6	-43
of which: impairment loss other non-current assets	-	-	-2
Remeasurements of contingent considerations	-3	-17	-17
Items affecting comparability 1	-8	-23	-60
1 Corresponding line in the condensed consolidated profit and loss account:
Cost of goods sold	-5	-6	-15
General and administrative expenses	-3	-17	-45
Total	-8	-23	-60
Operating profit, adjusted
Operating profit	148	260	635
Minus: Items affecting comparability	-8	-23	-60
Operating profit, adjusted	156	283	695
Net sales	1,221	2,455	5,107
Operating profit margin, adjusted, %	12.8	11.5	13.6
EBITDA, adjusted
Operating profit/loss	148	260	635
Minus: Depreciation	-51	-101	-206
Minus: Amortization	-2	-3	-5
Minus: Impairment loss other non-current assets	-	-	-2
EBITDA Minus: Items affecting comparability (excl. impairment loss other non-current assets)	201 -8	364 -23	848 -58
EBITDA, adjusted	209	387	906
Capital employed
Total assets	9,855	9,855	9,236
Minus: Deferred tax liability	647	647	586
Minus: Non-current provisions	9	9	22
Minus: Current provisions	14	14	64
Minus: Other current liabilities	1,438	1,438	1,235
Capital employed	7,747	7,747	7,329
Capital employed comparative period previous year	7,756	7,756	7,756
Average capital employed	7,752	7,752	7,543
Return on capital employed 3
Operating profit/loss (rolling 12 months) 3	701	701	-82
Financial income (rolling 12 months) 3	13	13	17
Operating profit/loss plus financial income (rolling 12 months) 3	714	714	-65
Average capital employed	7,752	7,752	7,543
Return on capital employed, % 3	9.2	9.2	-0.9
Cash conversion 3
EBITDA, adjusted 3	211	396	1,003
Minus: Capital expenditures 3	32	70	170
EBITDA, adjusted less capital expenditures 3	179	326	833
EBITDA, adjusted 3	211	396	1,003
Cash conversion, % 3	84.8	82.3	83.1

2) Comparative figures for profit and loss items have been restated for discontinued operation.

3) Comparative figures have not been restated for discontinued operation.

Cloetta AB (publ)

Reconciliation alternative performance measures per quarter

SEKm	Q1 2017 2			Q4 2016 2 Q3 2016 2 Q2 2016 2 Q1 2016 2		Q4 2015	Q3 2015	Q2 2015
Items affecting comparability
Acquisitions, integration and factory restructurings	-17	-29	-8	-5	-1	-14	-10	-5
of which: impairment loss other non-current assets	-	-2	-	-	-	-	-	-
Remeasurements of contingent considerations	-	-	-	-3	-14	3	28	2
Remeasurements of assets held for sale	-	-	-	-	-	-5	-	-
Items affecting comparability 1	-17	-29	-8	-8	-15	-16	18	-3
1 Corresponding line in the condensed consolidated profit and loss
account:
Cost of goods sold	-3	-3	-6	-5	-1	-20	-	-
Selling expenses	-	-	-	-	-	1	-2	-
General and administrative expenses	-14	-26	-2	-3	-14	3	20	-3
Total	-17	-29	-8	-8	-15	-16	18	-3
Operating profit, adjusted
Operating profit	97	180	195	148	112	239	212	130
Minus: Items affecting comparability	-17	-29	-8	-8	-15	-16	18	-3
Operating profit, adjusted	114	209	203	156	127	255	194	133
Net sales	1,222	1,367	1,285	1,221	1,234	1,622	1,459	1,280
Operating profit margin, adjusted, %	9.3	15.3	15.8	12.8	10.3	15.7	13.3	10.4
EBITDA, adjusted
Operating profit/loss	97	180	195	148	112	239	212	130
Minus: Depreciation	-48	-53	-52	-51	-50	-59	-58	-55
Minus: Amortization	-1	-	-2	-2	-1	-1	-1	-1
Minus: Impairment loss other non-current assets	-	-2	-	-	-	-	-	-
EBITDA Minus: Items affecting comparability (excl. impairment loss other non	146	235	249	201	163	299	271	186
current assets)	-17	-27	-8	-8	-15	-16	18	-3
EBITDA, adjusted	163	262	257	209	178	315	253	189
Capital employed
Total assets	9,202	9,236	10,286	9,855	9,854	9,759	10,062	9,592
Minus: Deferred tax liability	598	586	680	647	618	621	606	508
Minus: Other non-current liabilities	-	-	-	-	-	43	43	88
Minus: Non-current provisions	9	22	10	9	9	10	11	11
Minus: Current provisions	46	64	7	14	37	57	12	10
Minus: Other current liabilities	1,189	1,235	1,383	1,438	1,420	1,271	1,349	1,218
Plus: Interest-bearing other current liabilities	-	-	-	-	-	-1	-1	-1
Capital employed	7,360	7,329	8,206	7,747	7,770	7,756	8,040	7,756
Capital employed comparative period previous year	7,770	7,756	8,040	7,756	7,790	8,041	7,860	7,830
Average capital employed	7,565	7,543	8,123	7,752	7,780	7,899	7,950	7,793
Return on capital employed 3
Operating profit\loss (rolling 12 months) 3	-97	-82	705	701	689	671	694	660
Financial income (rolling 12 months) 3	20	17	18	13	8	6	0	1
Operating profit\loss plus financial income (rolling 12 months) 3	-77	-65	723	714	697	677	694	661
Average capital employed 3	7,565	7,543	8,123	7,752	7,780	7,899	7,950	7,793
Return on capital employed, % 3	-1.0	-0.9	8.9	9.2	9.0	8.6	8.7	8.5
Cash conversion 3
EBITDA, adjusted 3	167	320	287	211	185	315	253	189
Minus: Capital expenditures 3	34	58	42	32	38	47	31	28
EBITDA, adjusted less capital expenditures 3	133	262	245	179	147	268	222	161
EBITDA, adjusted 3	167	320	287	211	185	315	253	189
Cash conversion, % 3	79.6	81.9	85.4	84.8	79.5	85.1	87.7	85.2

2) Comparative figures for profit and loss items have been restated for discontinued operation.

3) Comparative figures have not been restated for discontinued operation.

Cloetta AB (publ)

Org.No. 556308-8144 Kista Science Tower, SE-164 51 Kista, Sweden Visiting address : Färögatan 33, 25th floor, Kista +46 8 527 288 00, www.cloetta.com

Results from discontinued operation

	2016	2016	2016
SEKm	Apr-Jun	Jan - Jun	Jan - Dec
Net sales	141	265	745
Cost of goods sold	-81	-155	-449
Gross profit	60	110	296
Selling expenses	-40	-71	-149
General and administrative expenses
- Impairment loss	-	-	-771
- Other general and administrative expenses	-26	-49	-93
Total general and administrative expenses	-26	-49	-864
Operating loss	-6	-10	-717
Exchange differences borrowings and cash and cash
equivalents in foreign currencies	-	-	-
Other financial income	-	-	0
Other financial expenses	-2	-4	-8
Net financial items	-2	-4	-8
Loss before tax	-8	-14	-725
Income tax	0	2	187
Loss from discontinued operation, net of tax	-8	-12	-538

Cash flow from discontinued operation

	2016	2016	2016
SEKm	Apr-Jun	Jan - Jun	Jan - Dec
Cash flow from operating activities	-15	107	141
Cash flow from investing activities	-6	-11	-30
Cash flow from financing activities	-	-	-
Cash flow from discontinued operation	-21	96	111