Cloetta — Interim / Quarterly Report 2021

Oct 29, 2021

Interim report Q3 July–September 2021 Stockholm, 29 October 2021

"Branded packaged products delivered yet another quarter of solid growth, bringing the segment above 2019 levels. In addition, our actions taken within the Pick & mix segment enabled a steady recovery of volumes and profitability." -Henri de Sauvage-Nolting, President and CEO

Third quarter, July-September 2021

• Net sales for the quarter increased by 6.2 per cent to SEK 1,566m (1,474) including a negative impact from foreign exchange rates of -1.3 per cent.
• Sales of Branded packaged products increased organically by 4.0 per cent during the quarter: -4.1 per cent in July, 9.3 per cent in August and 6.3 per cent in September.
• Sales of Pick & mix increased organically by 21.6 per cent during the quarter: 12.3 per cent in July, 26.2 per cent in August and 26.3 per cent in September.
• Operating profit amounted to SEK 189m (87). Operating profit, adjusted for items affecting comparability, amounted to SEK 190m (130).

Q3

• Operating profit, adjusted, of Branded packaged products amounted to SEK 181m (154).
• Operating profit, adjusted, of Pick & mix amounted to SEK 9m (-24).
• Profit for the period amounted to SEK 144m (46), which equates to basic and diluted earnings per share of SEK 0.50 (0.16).
• Cash flow from operating activities was SEK 290m (313).
• Net debt/EBITDA ratio was 2.4x (2.6).

Key ratios		Third quarter		9 months			Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Change, %	Jan–Sep 2021	Jan–Sep 2020	Change, %	Oct 2020– Sep 2021	2020
Net sales	1,566	1,474	6.2¹	4,384	4,229	3.7¹	5,850	5,695
Operating profit, adjusted	190	130	46.2	441	392	12.5	564	515
Operating profit margin, adjusted %	12.1	8.8	3.3-pts	10.1	9.3	0.8-pts	9.6	9.0
Operating profit (EBIT)	189	87	117.2	435	341	27.6	556	462
Operating profit margin (EBIT margin), %	12.1	5.9	6.2-pts	9.9	8.1	1.8-pts	9.5	8.1
Profit before tax	178	63	182.5	427	260	64.2	570	403
Profit for the period	144	46	213.0	346	198	74.7	429	281
Earnings per share, basic and diluted, SEK	0.50	0.16	212.5	1.20	0.69	73.9	1.49	0.98
Net debt/EBITDA, x (Rolling 12 months)	2.4	2.6	-7.7	2.4	2.6	-7.7	2.4	2.7
Free cash flow	238	252	-5.6	351	114	207.9	603	366
Cash flow from operating activities	290	313	-7.3	513	341	50.4	828	656

1 Organic growth at constant exchange rates was 7.5 per cent for the quarter and 6.5 per cent for the first three quarters of the year. See further under Net sales on page 4.

F i n a n c i a l overview

Sustainability F i n a n c i a l statements

Overview Disclosures Definitions Contact

Cloetta

– a leading confectionery company in Northern Europe.

Sustainability F i n a n c i a l statements

W o r d s f r o m Disclosures Definitions Contact

Continued strong growth and improved profitability

Branded packaged products sales above pre-pandemic levels and steady volume recovery for Pick & mix, accompanied by improved profitability.

I am very pleased with our overall performance during the third quarter. Branded packaged products delivered yet another quarter of solid growth, bringing the segment above 2019 levels. In addition, our actions taken within the Pick & mix segment enabled a steady recovery of volumes and profitability, with the adjusted operating margin up 10 percentage points year on year.

The Covid-19-related restrictions have now been lifted in most of the markets in which we operate, and we are encouraged to see an increase in the number of shoppers across our sales channels. At the same time, we acknowledge the great uncertainty that prevails caused by higher costs and global supply chain challenges, and we continue to take the actions necessary to safeguard our business.

Third quarter development

Sales for the quarter increased by 6.2 per cent, of which organic growth accounted for 7.5 per cent and exchange rate differences for -1.3 per cent. Sales of Branded packaged products increased organically by 4.0 per cent, driven by continued strong momentum from successful marketing and innovation initiatives, as well as increased traffic in most channels. Sales of Pick & mix increased organically by 21.6 per cent during the quarter and continued to be driven by our efforts to grow consumer confidence, premiumising Pick & mix and more consumer activation.

The increase in the adjusted operating profit is attributable to higher sales volumes, continued margin-enhancing initiatives and good cost control. Last year, the adjusted operating profit was favourably impacted by lower costs of approximately SEK 45m for incentive programmes, largely offset by the phasing of supply chain costs of approximately SEK 35m from the second quarter.

Delivering on our strategy

During the quarter, we continued to strengthen our top 25 brands and worked on the recovery of our pastilles and gums categories. With strong momentum from innovations and launches earlier in the year, we kept the total marketing spend for the quarter in line with the pre-pandemic level. We also continued to pursue our sustainability agenda and have now submitted our targets to the Science Based Targets initiative for validation, meaning new climate goals for Cloetta to reduce absolute greenhouse gas emissions by 46 per cent (scopes 1, 2, and 3) by 2030.

I am indeed pleased to see that our actions taken within the Pick & mix segment are delivering encouraging results. During the quarter, we continued to recover previously lost volumes and made further progress on our journey aimed at creating sustainable profitability within the segment. The premium CandyKing concept has now been launched in all Pick & mix markets and during the quarter we were voted "Supplier of the Year" by our biggest customer in Norway. Furthermore, our largest-ever CandyKing media campaign ever has now been rolled out for Halloween celebrations across all Scandinavian markets.

Our efficiency programmes continued according to plan during the quarter, with progress made both in the Perfect Factory and VIP+ cost Programme. For instance, we completed a migration of our ERP system to the cloud, delivering both savings and enhanced functionality. The stronger operating profit and improved working capital resulted in yet another quarter of healthy free cash flow. Net debt/EBITDA was below our targeted 2.5x for the first time since the start of the pandemic and net debt levels were at an all-time low.

Mixed picture ahead

While we are continuing to experience strong consumer demand for our products, albeit with a product mix that has not recovered to its pre-pandemic composition, we are also facing higher costs and supply chain challenges. Input costs, including for raw materials, packaging, freight, and energy, are increasing, while we also see an increased risk from var-

"While we are continuing to experience strong consumer demand for our products, we are also facing higher costs and supply chain challenges."

ious global supply shortages. We are taking mitigating actions, such as ensuring close dialogue with our suppliers, but nonetheless expect the situation to remain uncertain for an extended period of time. We are also in the process of implementing required price increases that will start to take effect at the beginning of next year, which may have a potential negative volume impact.

I am confident we will also successfully navigate these new challenges, which call for the same high level of flexibility and drive as the organisation has already demonstrated over the past 18 months. Looking ahead, we affirm our commitment to continue to invest in our brands; strong brands enable profitable growth and the delivery of long-term shareholder value.

Henri de Sauvage-Nolting President and CEO

statements

Financial overview

Third quarter development

Covid-19

At Cloetta, various measures have been taken to mitigate the shortterm and long-term impact of Covid-19. We are monitoring the situation closely and when needed adapt our actions according to local government advice and regulations, whilst at the same time striving to mitigate any disruptions to our business.

Compared to the annual and sustainability report which was issued on 15 March 2021, the risk-profile of Cloetta has not significantly changed although the ongoing Covid-19-pandemic continues to affect the business performance of Cloetta.

For more information on measures taken in relation to Covid-19, please visit www.cloetta.com.

Net sales

Net sales for the third quarter increased by SEK 92m to SEK 1,566m (1,474) compared to the same period of last year. Organic growth was 7.5 per cent and the impact of changes in exchange rates was -1.3 per cent.

Changes in net sales, %	Jul–Sep 2021	Jan–Sep 2021
Organic growth	7.5	6.5
Changes in exchange rates	-1.3	-2.8
Total	6.2	3.7

Monthly organic sales growth, %	July 2021	August 2021	September 2021
Total	-0.7	12.6	10.2
Branded packaged products	-4.1	9.3	6.3
Pick & mix	12.3	26.2	26.3

Gross profit

Gross profit amounted to SEK 551m (434), which equates to a gross margin of 35.2 per cent (29.4). The gross profit increase was driven by higher volumes and continued margin-enhancing initiatives. Last year, the gross profit was negatively impacted by the phasing of supply chain costs of approximately SEK 35m from the second quarter and by SEK 19m in one-off restructuring costs related to the closure of the Helsingborg factory.

Operating profit

Operating profit amounted to SEK 189m (87). Operating profit, adjusted for items affecting comparability, amounted to SEK 190m (130). The adjusted operating profit increase was driven by higher gross profit. Last year, the adjusted operating profit was favourably impacted by lower costs for incentive programs of approximately SEK 45m.

Items affecting comparability

Operating profit for the third quarter includes items affecting comparability of SEK -1m (–43) that are related to costs for restructuring. The items affecting comparability in the third quarter of 2020 mainly related to the impairment of assets in connection to the outsourcing of the nuts manufacturing and additions to the reorganisation provisions for the outsourcing of the nuts manufacturing and reorganisation in Sweden.

Net financial items

Net financial items for the quarter amounted to SEK -11m (-24). Interest expenses related to external borrowings were SEK -8m (–9), exchange differences on cash and cash equivalents were SEK -1m (-11) which mainly related to the development of the Swedish and Norwegian krona and the Great Britain pound against the euro during the quarter. Other financial items amounted to SEK -2m (–4). Of the total net financial items SEK -13m (6) is non-cash in nature.

Profit for the period

Profit for the period was SEK 144m (46), which equates to basic and diluted earnings per share of SEK 0.50 (0.16). Income tax for the period was SEK -34m (–17).

The effective tax rate for the quarter was 19.1 per cent (27.0) and was positively impacted by the utilisation of unrecognised tax losses carried forward in one of the countries and differences between expected and actual tax filings related to the previous year in a number of countries. International tax rate differences and non-deductible expenses had a negative impact on the effective tax rate for the quarter.

Free cash flow

The free cash flow was SEK 238m (252). Cash flow from operating activities before changes in working capital was SEK 209m (162). The improvement compared to last year is mainly due to the higher operating profit. The cash flow from changes in working capital was SEK 81m (151).

The cash flow from investments in property, plant and equipment and intangible assets was SEK -52m (–61).

Cash flow from changes in working capital Cash flow from changes in working capital was SEK 81m (151). The cash flow from changes in working capital was positively impacted by the decrease in inventories for an amount of SEK 65m (162) and an increase in payables of SEK 140m (112) partly offset by an increase in receivables amounting to SEK -124m (-123).

Cash flow from other investing activities Cash flow from other investing activities was SEK -1m (0).

statements

Cash flow from financing activities

Cash flow from financing activities was SEK -16m (–19). The cash flow from financing activities was related to payments of lease liabilities of SEK -16m (–18) and net proceeds and repayments of loans from credit institutions and commercial papers including transaction costs of SEK 0m (–1).

Development during the year

Net sales

Net sales for the first three quarters increased by SEK 155m to SEK 4,384m (4,229) compared to the same period of last year. Organic growth was 6.5 per cent and the impact of changes in exchange rates was -2.8 per cent.

Gross profit

Gross profit amounted to SEK 1,543m (1,434), which equates to a gross margin of 35.2 per cent (33.9). The gross profit increase was driven by higher volumes and various margin-enhancing initiatives in Pick & mix. Last year, the gross profit was negatively impacted by SEK 19m in one-off restructuring costs related to the closure of the Helsingborg factory.

Operating profit

Operating profit amounted to SEK 435m (341). Operating profit, adjusted for items affecting comparability, amounted to SEK 441m (392). The adjusted operating profit increase was driven by higher gross profit, partly offset by higher marketing investments. Last year, the adjusted operating profit was favourably impacted by lower costs for incentive programs of approximately SEK 45m.

Items affecting comparability

Operating profit for the first three quarters of the year includes items affecting comparability of SEK -6m (–51) that are related to costs for restructuring. The items affecting comparability in the first three quarters of 2020 mainly related to the impairment of assets in connection to the outsourcing of the nuts manufacturing and additions to the reorganisation provisions for the outsourcing of the nuts manufacturing and reorganisation in Sweden.

Net financial items

Net financial items for the first three quarters of the year amounted to SEK -8m (–81). Interest expenses related to external borrowings were SEK -24m (–24), exchange differences on cash and cash equivalents were SEK 24m (–44) which mainly related to the development of the Swedish and Norwegian krona and the Great Britain pound against the euro during the first three quarters of the year. Other financial items amounted to SEK -8m (–13). Of the total net financial items SEK -9m (–2) is non-cash in nature.

Profit for the period

Profit for the period was SEK 346m (198), which equates to basic and diluted earnings per share of SEK 1.20 (0.69). Income tax for the period was SEK -81m (–62).

The effective tax rate for the period was 19.0 per cent (23.8) and was positively impacted by the utilisation of unrecognised tax losses carried forward in one of the countries and differences between expected and actual tax filings related to the previous year in a number of countries. International tax rate differences and non-deductible expenses had a negative impact on the effective tax rate for the period.

Free cash flow

The free cash flow was SEK 351m (114). Cash flow from operating activities before changes in working capital was SEK 494m (450). The cash flow from changes in working capital was SEK 19m (–109).

The cash flow from investments in property, plant and equipment and intangible assets was SEK -162m (–227).

Cash flow from changes in working capital

Cash flow from changes in working capital was SEK 19m (–109). The cash flow from changes in working capital was positvely impacted by the increase in payables amounting to SEK 167m (-19) and a decrease in inventories of SEK 98m (-94) partly offset by the increase in receivables for an amount of SEK -246m (4).

Cash flow from other investing activities Cash flow from other investing activities was SEK 2m (0).

Cash flow from financing activities

Cash flow from financing activities was SEK -275m (–315). The cash flow from financing activities was related to the dividend distribution of SEK -215m (0), payments of lease liabilities of SEK -52m (–54) and net proceeds and repayments of loans from credit institutions and commercial papers including transaction costs of SEK -7m (–245). Other cash flows from financing activities amounted to SEK -1m (–16).

statements

Financial position

Consolidated equity at 30 September 2021 amounted to SEK 4,444m (4,401), which equates to SEK 15.4 (15.2) per share. Net debt at 30 September 2021 was SEK 1,967m (2,285).

Long-term borrowings totaled SEK 2,158m (122) and consisted of SEK 2,071m (0) in gross non-current loans from credit institutions, SEK 92m (122) in non-current lease liabilities and SEK -5m (0) in capitalised transaction costs.

Total short-term borrowings amounted to SEK 305m (2,436) and consisted of SEK 0m (2,121) in current loans from credit institutions, SEK 250m (250) in commercial papers, SEK 58m (66) in current lease liabilities, SEK -3m (–2) in capitalised transaction costs and accrued interest on borrowings from credit institutions and commercial papers for an amount of SEK 0m (1).

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
Gross non-current loans from credit institutions	2,071	-	-
Gross current loans from credit institutions	-	2,121	2,054
Commercial papers	250	250	250
Lease liabilities	150	188	176
Derivative financial instruments (non current and current)	1	55	54
Interest payable	-	1	1
Gross debt	2,472	2,615	2,535
Cash and cash equivalents	-505	-330	-396
Net debt	1,967	2,285	2,139

Cash and cash equivalents at 30 September 2021 amounted to SEK 505m (330). At 30 September 2021 Cloetta had an unutilised credit facility of SEK 610m (1,269) and the possibility to issue additional commercial papers for an amount of SEK 750m (750).

Performance by business segment

Cloetta has identified the "Branded packaged products" business and the "Pick & mix" business as its operating segments.

The chief operating decision-maker (CODM), which is the CEO and President of the Group, primarily uses external net sales and operating profit, adjusted for items affecting comparability, to assess the performance of its operating segments. Net financial items and income tax are not allocated to segments, as these types of activities are driven by the central treasury department and central tax department respectively.

No segment information is provided to or assessed by the CODM on assets and liabilities and therefore these are not separately disclosed.

Information related to each reportable segment (business segment) is set out below. For more information regarding the determination of reportable segments reference is made to page 26.

Business segments

The Cloetta Group comprises two segments: "Branded packaged products" and "Pick & mix". The Pick & mix net sales and adjusted operating profit relate to Cloetta's complete offering in pick & mix including

products, displays and accompanying store and logistic services. All other activities within the Cloetta Group are reflected in the "Branded packaged products" segment.

Segment Branded packaged products

Third quarter development

Net Sales

Net sales for the third quarter increased by SEK 26m to SEK 1,204m (1,178) compared to the same period of last year for branded packaged products. Organic growth was 4.0 per cent.

Operating profit, adjusted

Operating profit, adjusted for items affecting comparability, amounted to SEK 181m (154). The increase in adjusted operating profit was driven by higher volumes, partly offset by unfavourable product mix. Last year, the adjusted operating profit was favourably impacted by lower costs for incentive programs, largely offset by the phasing of supply chain costs from the second quarter.

Development during the year

Net Sales

Net sales for the first three quarters of the year increased by SEK 54m to SEK 3,402m (3,348) compared to the same period of last year for branded packaged products. Organic growth was 4.5 per cent.

Operating profit, adjusted

Operating profit, adjusted for items affecting comparability, amounted to SEK 452m (498). The decrease in adjusted operating profit was driven by increased marketing investments and unfavourable product mix. Last year, the adjusted operating profit was favourably impacted by lower costs for incentive programs.

Segment Pick & mix

Third quarter development Net Sales Net sales for the third quarter increased by SEK 66m to SEK 362m (296) compared to the same period of last year. Organic growth was 21.6 per cent.

Operating profit, adjusted

Operating profit, adjusted for items affecting comparability, amounted to SEK 9m (–24). The increase in adjusted operating profit was driven by higher volumes and continued margin-enhancing initiatives.

Development during the year Net Sales

Net sales for the first three quarters of the year quarter increased by SEK 101m to SEK 982m (881) compared to the same period of last year. Organic growth was 13.8 per cent.

Operating profit, adjusted

Operating profit, adjusted for items affecting comparability, amounted to SEK -11m (-106). The increase in adjusted operating profit was driven by higher volumes and various margin-enhancing initiatives.

statements

Jul–Sep 2021 SEKm	Branded packaged products	Pick & mix	Total	Jan–Sep 2021 SEKm	Branded packaged products	Pick & mix	Total
Net sales	1,204	362	1,566	Net sales	3,402	982	4,384
Operating profit, adjusted	181	9	190	Operating profit, adjusted	452	-11	441
Items affecting comparability			-1	Items affecting comparability			-6
Operating profit			189	Operating profit			435
Net financial items			-11	Net financial items			-8
Profit before tax			178	Profit before tax			427
Income tax			-34	Income tax			-81
Profit for the period			144	Profit for the period			346

	Branded
Jan–Sep 2021 SEKm	packaged products	Pick & mix	Total
Items affecting comparability			-6

Jul–Sep 2020 SEKm	Branded packaged products	Pick & mix	Total	Jan–Sep 2020 SEKm	Branded packaged products	Pick & mix	Total
Net sales	1,178	296	1,474	Net sales	3,348	881	4,229
Operating profit, adjusted	154	-24	130	Operating profit, adjusted	498	-106	392
Items affecting comparability			-43	Items affecting comparability			-51
Operating profit			87	Operating profit			341
Net financial items			-24	Net financial items			-81
Profit before tax			63	Profit before tax			260
Income tax			-17	Income tax			-62
Profit for the period			46	Profit for the period			198

	Jan–Sep 2020	Branded packaged
	SEKm	products	Pick & mix	Total
-43	Items affecting comparability			-51

overview W o r d s f r o m the president

statements

Other disclosures

Seasonal variations

Cloetta's sales and operating profit are subject to some seasonal variations. Sales in the first and second quarters are affected by the Easter holiday, depending on in which quarter it occurs. In the fourth quarter, sales are usually higher than in the first three quarters of the year, which is mainly attributable to the sale of products in Sweden in connection with the holiday season.

Employees

The average number of employees during the quarter was 2,587 (2,624). The decrease in number of employees is mainly related to changes in the Swedish organisation and the outsourcing of the manufacturing of nuts.

Accounting for cloud computing arrangements

The IFRS Interpretations Committee has concluded on how to account for cost of configuration or customisation in a cloud computing arrangement. Cloetta is investigating to what extent this conclusion may require previously recognised intangible assets related to cloud computing arrangements to be retrospectively expensed or reclassified to another type of asset.

Cloetta expects to complete the investigation in the fourth quarter and that an adjustment in the financial statements will be recorded with retrospective effect. The adjustment will have a net negative effect on the operating result as previously capitalised expenses will be expensed as incurred while amortisation charges on these capitalised expenses will be reversed. The current estimate is that the net negative impact on operating profit will not exceed SEK 25m for the year 2021 and that the impact will be distributed across the four quarters.

Events after the balance sheet date

After the end of the reporting period, no significant events have taken place that could affect the company's operations.

statements

Key business priorities

Prioritised activities for achieving organic growth and a 14% adjusted operating profit margin.

F i n a n c i a l statements

Sustainability

We believe in the Power of True Joy

Opportunities for creating a positive impact within A Sweeter Future

Our three pillars

We provide choices for you

• We create joyful moments through our products. We aim to meet the variety of consumer preferences.

We care about people

• We support our employees, our suppliers and farmers, as well as our communities.

For the planet

We improve our planet footprint

• Our business depends on the environment. We take responsibility for our impacts; from sourcing to packaging.

Q3 highlights

Natural flavours

• Nutisal launched three new flavour combinations using natural ingredients, for example maple syrup and sea salt, or smoky sriracha.

Living income

• Progress made in our pilot project with Rainforest Alliance to improve how to close the living income gap to cocoa farmers.

Science Based Targets

• Submitting our suggested targets for validation to the Science Based Targets initiative.

Sustainability F i n a n c i a l statements

Disclosures Definitions Contact

Examples of new launches during the third quarter

Finland

AAKKOSET – Licorice Mix POLLY – Licorice toffee GOTT & BLANDAT – Mixed bag, Favorite mix JENKKI PLUS – Lemon & Eucalyptus TUPLA – Winter cardamom LÄKEROL YUP – Crispy licorice LÄKEROL YUP – Crispy cranberry caramel

Denmark

BRIO KARAMEL – Caramel MATROS HATTE – Sweet and soft licorice SKUM SVAMPE – Raspberry GODT&BLANDET – Real fruit candy, Berries and fruits GODT&BLANDET – Real fruit candy, Tropical NUTISAL – Mixed nuts, Mozzarella & Pesto NUTISAL – Mixed nuts, Smoky Sriracha NUTISAL – Mixed nuts, Maple Syrup & Sea Salt

UK

Q3

CHEWITS – Cherry CHEWITS – Blue Raspberry CHEWITS XTREME – Lemon CHEWITS XTREME – Sour Cherry

International markets

REDBAND TRULY PARTY ANIMALS – Mixed bag with jelly candy REDBAND SUPER SOUR BEARS – Sour jelly candy REDBAND SWEET STRAWBERRIES – Strawberries, jelly candy

Sweden

JULESKUM – Apple & Cinnamon POLLY – Licorice & Chocolate PLOPP – Chocolate ball PLOPP – Orange LÄKEROL DENTS – Peppermint NUTISAL – Mixed nuts, Mozzarella & Pesto NUTISAL – Mixed nuts, Smoky Sriracha NUTISAL – Mixed nuts, Sea salt

The Board of Directors hereby gives its assurance that the interim report provides a true and fair view of the business activities, financial position and results of operations of the Group and the Parent Company, and describes the significant risks and uncertainties to which the Parent Company and the Group companies are exposed.

Stockholm, 29 October 2021

Cloetta AB (publ)

The Board of Directors

Auditor's report

Cloetta AB (publ) Org nr 556308-8144

Introduction

We have reviewed the condensed interim financial information (interim report) of Cloetta AB (publ) as of 30 September 2021 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 29 October 2021 Öhrlings PricewaterhouseCoopers AB

Sofia Götmar-Blomstedt Erik Bergh Partner in charge

Authorized Public Accountant Authorized Public Accountant

statements

Financial statements in summary

Consolidated profit and loss account

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Net sales	1,566	1,474	4,384	4,229	5,850	5,695
Cost of goods sold	-1,015	-1,040	-2,841	-2,795	-3,764	-3,718
Gross profit	551	434	1,543	1,434	2,086	1,977
Selling expenses	-208	-248	-661	-698	-914	-951
General and administrative expenses	-154	-99	-447	-395	-616	-564
Operating profit	189	87	435	341	556	462
Exchange differences on cash and cash equivalents in foreign currencies	-1	-11	24	-44	58	-10
Other financial income	2	0	5	2	6	3
Other financial expenses	-12	-13	-37	-39	-50	-52
Net financial items	-11	-24	-8	-81	14	-59
Profit before tax	178	63	427	260	570	403
Income tax	-34	-17	-81	-62	-141	-122
Profit for the period	144	46	346	198	429	281
Profit for the period attributable to:
Owners of the Parent Company	144	46	346	198	429	281
Earnings per share, SEK Basic and diluted1	0.50	0.16	1.20	0.69	1.49	0.98
Number of shares at end of period Average number of shares (basic)1 Average number of shares (diluted)1	288,619,299 288,619,299 288,651,544	288,619,299 286,633,680 286,841,036	288,619,299 287,411,926 287,484,301	288,619,299 286,576,661 286,740,991	288,619,299 287,215,766 287,268,734	288,619,299 286,590,993 286,805,203

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 sharebased incentive plan. The contract has been settled in the second quarter of 2021.

statements

Consolidated statement of comprehensive income

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Profit for the period	144	46	346	198	429	281
Other comprehensive income
Remeasurement of defined benefit pension plans	-25	7	46	-20	56	-10
Income tax on remeasurement of de fined benefit pension plans	5	-1	-10	4	-12	2
Items that will never be reclassified to profit or loss for the period	-20	6	36	-16	44	-8
Currency translation differences	28	40	70	42	-165	-193
Hedge of a net investment in a foreign operation	-8	-11	-14	-24	63	53
Income tax on hedge of a net investment in a foreign operation	2	3	3	5	-13	-11
Items that are or may be reclassified to profit or loss for the period	22	32	59	23	-115	-151
Total other comprehensive income	2	38	95	7	-71	-159
Total comprehensive income, net of tax	146	84	441	205	358	122
Total comprehensive income for the period attributable to:
Owners of the Parent Company	146	84	441	205	358	122

Q3 Cloetta Interim Report Q3 2021

Net financial items

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Exchange differences on cash and cash equivalents in foreign currencies	-1	-11	24	-44	58	-10
Other financial income, third parties	1	0	1	1	2	2
Unrealised gains on single currency interest rate swaps	1	0	4	1	4	1
Total Other financial income	2	0	5	2	6	3
Interest expenses third-party borrowings and realised losses on single currency interest rate swaps	-8	-9	-24	-24	-32	-32
Amortisation of capitalised transaction costs	0	0	-2	-1	-3	-2
Unrealised losses on single currency interest rate swaps	-	0	-	-1	1	-
Other financial expenses, third parties	-4	-4	-11	-13	-16	-18
Total Other financial expenses	-12	-13	-37	-39	-50	-52
Net financial items	-11	-24	-8	-81	14	-59

Condensed consolidated balance sheet

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
ASSETS
Non-current assets
Intangible assets	5,617	5,708	5,563
Property, plant and equipment	1,561	1,623	1,560
Deferred tax asset	29	25	20
Derivative financial instruments	0	-	-
Other financial assets	4	3	3
Total non-current assets	7,211	7,359	7,146
Current assets
Inventories	863	986	952
Other current assets	1,018	944	763
Derivative financial instruments	0	-	-
Cash and cash equivalents	505	330	396
Total current assets	2,386	2,260	2,111
TOTAL ASSETS	9,597	9,619	9,257
EQUITY AND LIABILITIES
Equity	4,444	4,401	4,179
Non-current liabilities
Long-term borrowings	2,158	122	111
Deferred tax liability	883	814	837
Derivative financial instruments	-	1	0
Provisions for pensions and other long-term employee benefits	466	522	512
Provisions	-	6	5
Total non-current liabilities	3,507	1,465	1,465
Current liabilities
Short-term borrowings	305	2,436	2,368
Derivative financial instruments	1	54	54
Other current liabilities	1,333	1,235	1,167
Provisions	7	28	24
Total current liabilities	1,646	3,753	3,613
TOTAL EQUITY AND LIABILITIES	9,597	9,619	9,257

Condensed consolidated statements of changes in equity

	9 months	Full year
SEKm	Jan–Sep 2021	Jan–Sep 2020	Jan–Dec 2020
Equity at beginning of period	4,179	4,197	4,197
Profit for the period	346	198	281
Other comprehensive income	95	7	-159
Total comprehensive income	441	205	122
Transactions with owners
Forward contract to repurchase own shares	48	-	-
Share-based payments	-9	-1	3
Dividend1	-216	-	-144
Dividend on outstanding shares in forward contracts to repurchase own shares	1	-	1
Total transactions with owners	-176	-1	-140
Equity at end of period	4,444	4,401	4,179

1 The dividend paid in 2021 comprised a dividend of SEK 0.75 (0.50) per share.

Condensed consolidated cash flow statement

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Cash flow from operating activities before changes in working capital	209	162	494	450	662	618
Cash flow from changes in working capital	81	151	19	-109	166	38
Cash flow from operating activities	290	313	513	341	828	656
Cash flows from investments in property, plant and equipment and intangible assets	-52	-61	-162	-227	-225	-290
Cash flow from other investing activities	-1	0	2	0	3	1
Cash flow from investing activities	-53	-61	-160	-227	-222	-289
Cash flow from operating and investing activities	237	252	353	114	606	367
Cash flow from financing activities	-16	-19	-275	-315	-436	-476
Cash flow for the period	221	233	78	-201	170	-109
Cash and cash equivalents at beginning of period	272	115	396	579	330	579
Cash flow for the period	221	233	78	-201	170	-109
Exchange difference	12	-18	31	-48	5	-74
Total cash and cash equivalents at end of period	505	330	505	330	505	396

Condensed consolidated key figures

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Profit
Net sales	1,566	1,474	4,384	4,229	5,850	5,695
Net sales, change, %	6.2	-9.5	3.7	-11.4	-1.7	-12.3
Organic net sales, change, %	7.5	-7.3	6.5	-10.8	1.0	-11.2
Gross margin, %	35.2	29.4	35.2	33.9	35.7	34.7
Depreciation	-64	-64	-187	-195	-257	-265
Amortisation	-3	-3	-8	-8	-10	-10
Impairment loss other non-current assets	-	-10	-1	-13	-1	-13
Operating profit, adjusted	190	130	441	392	564	515
Operating profit margin, adjusted %	12.1	8.8	10.1	9.3	9.6	9.0
Operating profit (EBIT)	189	87	435	341	556	462
Operating profit margin (EBIT margin), %	12.1	5.9	9.9	8.1	9.5	8.1
EBITDA, adjusted	257	195	637	596	833	792
EBITDA	256	164	631	557	824	750
Profit margin, %	11.4	4.3	9.7	6.1	9.7	7.1
Segments
Branded packaged products
Net sales	1,204	1,178	3,402	3,348	4,581	4,527
Operating profit, adjusted	181	154	452	498	623	669
Operating profit margin, adjusted %	15.0	13.1	13.3	14.9	13.6	14.8
Pick & mix
Net sales	362	296	982	881	1,269	1,168
Operating profit, adjusted	9	-24	-11	-106	-59	-154
Operating profit margin, adjusted %	2.5	-8.1	-1.1	-12.0	-4.6	-13.2
Financial position
Working capital	525	705	525	705	525	540
Capital expenditure	67	83	188	295	265	372
Net debt	1,967	2,285	1,967	2,285	1,967	2,139
Capital employed	7,374	7,536	7,374	7,536	7,374	7,224
Return on capital employed, % (Rolling 12 months)	7.5	7.3	7.5	7.3	7.5	6.3
Equity/assets ratio, %	46.3	45.8	46.3	45.8	46.3	45.1
Net debt/equity ratio, %	44.3	51.9	44.3	51.9	44.3	51.2
Return on equity, % (Rolling 12 months)	9.7	8.4	9.7	8.4	9.7	6.7
Equity per share, SEK	15.4	15.2	15.4	15.2	15.4	14.5
Net debt/EBITDA, x (Rolling 12 months)	2.4	2.6	2.4	2.6	2.4	2.7
Cash flow
Cash flow from operating activities	290	313	513	341	828	656
Cash flow from investing activities	-53	-61	-160	-227	-222	-289
Cash flow after investments	237	252	353	114	606	367
Free cash flow	238	252	351	114	603	366
Free cash flow yield (Rolling 12 months), %	7.7	5.1	7.7	5.1	7.7	5.2
Cash flow from operating activities per	1.0	1.1	1.8	1.2	2.9	2.3
share, SEK
Employees
Average number of employees	2,587	2,624	2,598	2,667	2,601	2,653

Reconciliation of alternative performance measures key figures

	Third quarter 9 months				Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Items affecting comparability
Acquisitions, integration and restructurings	-1	-43	-6	-51	-8	-53
of which: impairment loss other non current assets	-	-12	-	-12	1	-11
Items affecting comparability	-1	-43	-6	-51	-8	-53
*Corresponding line in the condensed consolidated profit and loss account:
Cost of goods sold	-	-19	0	-19	0	-19
Selling expenses	-	-12	-	-12	-	-12
General and administrative expenses	-1	-12	-6	-20	-8	-22
Total	-1	-43	-6	-51	-8	-53
Operating profit, adjusted
Operating profit	189	87	435	341	556	462
Minus: Items affecting comparability	-1	-43	-6	-51	-8	-53
Operating profit, adjusted	190	130	441	392	564	515
Net sales	1,566	1,474	4,384	4,229	5,850	5,695
Operating profit margin, adjusted, %	12.1	8.8	10.1	9.3	9.6	9.0
EBITDA, adjusted
Operating profit	189	87	435	341	556	462
Minus: Depreciation	-64	-64	-187	-195	-257	-265
Minus: Amortisation	-3	-3	-8	-8	-10	-10
Minus: Impairment loss other non-cur rent assets	-	-10	-1	-13	-1	-13
EBITDA	256	164	631	557	824	750
Minus: Items affecting comparability (excl. impairment loss other non-current assets)	-1	-31	-6	-39	-9	-42
EBITDA, adjusted	257	195	637	596	833	792
Capital employed
Total assets	9,597	9,619	9,597	9,619	9,597	9,257
Minus: Deferred tax liability	883	814	883	814	883	837
Minus: Non-current provisions	-	6	-	6	-	5
Minus: Current provisions	7	28	7	28	7	24
Minus: Other current liabilities	1,333	1,235	1,333	1,235	1,333	1,167
Capital employed	7,374	7,536	7,374	7,536	7,374	7,224
Capital employed comparative period previous year	7,536	7,514	7,536	7,514	7,536	7,576
Average capital employed	7,455	7,525	7,455	7,525	7,455	7,400

Reconciliation alternative performance measures, continued

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep Jan–Sep 2021 2020		Oct 2020– Sep 2021	Jan–Dec 2020
Return on capital employed
Operating profit (Rolling 12 months)	556	550	556	550	556	462
Financial income (Rolling 12 months)	6	2	6	2	6	3
Operating profit plus financial income (Rolling 12 months)	562	552	562	552	562	465
Average capital employed	7,455	7,525	7,455	7,525	7,455	7,400
Return on capital employed, %	7.5	7.3	7.5	7.3	7.5	6.3
Free cash flow yield
Cash flow from operating activities (Rolling 12 months)	828	659	828	659	828	656
Cash flows from investments in property, plant and equipment and intangible assets (Rolling 12 months)	-225	-276	-225	-276	-225	-290
Free cash flow (Rolling 12 months)	603	383	603	383	603	366
Number of shares	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299
Free cash flow per share (Rolling 12 months), SEK	2.09	1.33	2.09	1.33	2.09	1.27
Market price per share, SEK	27.12	26.00	27.12	26.00	27.12	24.52
Free cash flow yield (Rolling 12 months), %	7.7	5.1	7.7	5.1	7.7	5.2
Changes in net sales
Net sales	1,566	1,474	4,384	4,229	5,850	5,695
Net sales comparative period previous year	1,474	1,629	4,229	4,771	5,951	6,493
Net sales, change	92	-155	155	-542	-101	-798
Minus: Changes in exchange rates	-19	-36	-118	-26	-162	-70
Organic growth	111	-119	273	-516	61	-728
Organic growth, %	7.5	-7.3	6.5	-10.8	1.0	-11.2

Sustainability Disclosures Definitions Contact

Quarterly data

SEKm	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019
Profit and loss account
Net sales	1,566	1,420	1,398	1,466	1,474	1,237	1,518	1,722	1,629
Cost of goods sold	-1,015	-893	-933	-923	-1,040	-777	-978	-1,073	-1,042
Gross profit	551	527	465	543	434	460	540	649	587
Selling expenses	-208	-242	-211	-253	-248	-213	-237	-271	-244
General and administrative expenses	-154	-146	-147	-169	-99	-142	-154	-169	-148
Operating profit	189	139	107	121	87	105	149	209	195
Exchange differences on cash and cash equivalents in foreign currencies	-1	-6	31	34	-11	45	-78	13	-8
Other financial income	2	2	1	1	0	1	1	0	1
Other financial expenses	-12	-13	-12	-13	-13	-14	-12	-9	-13
Net financial items	-11	-17	20	22	-24	32	-89	4	-20
Profit before tax	178	122	127	143	63	137	60	213	175
Income tax	-34	-26	-21	-60	-17	-29	-16	-41	-45
Profit for the period	144	96	106	83	46	108	44	172	130
Profit for the period attributable to:
Owners of the Parent Company	144	96	106	83	46	108	44	172	130
Key figures Profit
Depreciation, amortisation and impairment	-67	-64	-65	-72	-77	-68	-71	-74	75
Operating profit, adjusted	190	140	111	123	130	110	152	216	200
EBITDA, adjusted	257	204	176	196	195	178	223	290	275
EBITDA	256	203	172	193	164	173	220	283	270
Operating profit margin, adjusted %	12.1	9.9	7.9	8.4	8.8	8.9	10.0	12.5	12.3
Operating profit margin (EBIT margin), % Earnings per share, SEK	12.1	9.8	7.7	8.3	5.9	8.5	9.8	12.1	12.0
Basic and diluted1	0.50	0.33	0.37	0.29	0.16	0.38	0.15	0.60	0.45
Segments Branded packaged products
Net sales	1,204	1,097	1,101	1,179	1,178	1,052	1,118	1,261	1,187
Operating profit, adjusted	181	136	135	171	154	169	175	207	189
Operating profit margin, adjusted %	15.0	12.4	12.3	14.5	13.1	16.1	15.7	16.4	15.9
Pick & mix
Net sales	362	323	297	287	296	185	400	461	442
Operating profit, adjusted	9	4	-24	-48	-24	-59	-23	9	11
Operating profit margin, adjusted %	2.5	1.2	-8.1	-16.7	-8.1	-31.9	-5.8	2.0	2.5
Financial position
Share price, last paid, SEK	27.12	25.54	25.56	24.52	26.00	23.72	23.52	31.70	28.26
Return on equity, % (Rolling 12 months)	9.7	7.7	7.8	6.7	8.4	10.5	10.0	11.9	11.8
Equity per share, SEK	15.4	14.9	15.3	14.5	15.2	15.0	15.4	14.5	14.2
Net Debt/EBITDA, x (Rolling 12 months)	2.4	2.8	2.8	2.7	2.6	2.6	2.4	2.2	2.5
Cash flow
Free cash flow	238	102	11	252	252	-118	-20	269	199
Cash flow from operating activities per share, SEK	1.0	0.6	0.2	1.1	1.1	-0.1	0.2	1.1	0.9

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 sharebased incentive plan. The contract has been settled in the second quarter of 2021.

Reconciliation of alternative performance measures per quarter

SEKm	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019
Items affecting comparability
Acquisitions, integration and restructurings	-1	-1	-4	-2	-43	-5	-3	-7	-5
of which: impairment loss non-current assets	-	-	-	1	-12	-	-	-	-
Other items affecting comparability	-	-	-	-	-	-	-	-	-
Items affecting comparability*	-1	-1	-4	-2	-43	-5	-3	-7	-5
*Corresponding line in the condensed consolidat ed profit and loss account:
Cost of goods sold	-	0	-	0	-19	0	-	-	-
Selling expenses	-	-	-	0	-12	0	-	-4	-2
General and administrative expenses	-1	-1	-4	-2	-12	-5	-3	-3	-3
Total	-1	-1	-4	-2	-43	-5	-3	-7	-5
Operating profit. adjusted
Operating profit	189	139	107	121	87	105	149	209	195
Minus: Items affecting comparability	-1	-1	-4	-2	-43	-5	-3	-7	-5
Operating profit, adjusted	190	140	111	123	130	110	152	216	200
Net sales	1,566	1,420	1,398	1,466	1,474	1,237	1,518	1,722	1,629
Operating profit margin, adjusted, %	12.1	9.9	7.9	8.4	8.8	8.9	10.0	12.5	12.3
EBITDA, adjusted
Operating profit	189	139	107	121	87	105	149	209	195
Minus: Depreciation	-64	-61	-62	-70	-64	-65	-66	-69	-73
Minus: Amortisation	-3	-2	-3	-2	-3	-2	-3	-3	-2
Minus: Impairment loss other non-current assets	-	-1	-	0	-10	-1	-2	-2	-
EBITDA	256	203	172	193	164	173	220	283	270
Minus: Items affecting comparability (excl. impairment loss other non-current assets)	-1	-1	-4	-3	-31	-5	-3	-7	-5
EBITDA, adjusted	257	204	176	196	195	178	223	290	275
Capital employed
Total assets	9,597	9,269	9,497	9,257	9,619	9,384	10,260	9,660	9,676
Minus: Deferred tax liability	883	872	868	837	814	798	814	803	801
Minus: Non-current provisions	-	1	-	5	6	-	-	5	5
Minus: Current provisions	7	11	28	24	28	6	7	5	7
Minus: Other current liabilities	1,333	1,188	1,190	1,167	1,235	1,124	1,437	1,271	1,349
Capital employed	7,374	7,197	7,411	7,224	7,536	7,456	8,002	7,576	7,514
Capital employed comparative period previous year	7,536	7,456	8,002	7,576	7,514	7,362	7,654	7,027	6,904
Average capital employed	7,455	7,327	7,707	7,400	7,525	7,409	7,828	7,302	7,209

Reconciliation of alternative performance measures, continued

SEKm	Q3 2021	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020	Q4 2019	Q3 2019
Return on capital employed
Operating profit (Rolling 12 months)	556	454	420	462	550	658	712	727	677
Financial income (Rolling 12 months)	6	4	3	3	2	3	2	2	3
Operating profit plus financial income (Rolling 12 months)	562	458	423	465	552	661	714	729	680
Average capital employed	7,455	7,327	7,707	7,400	7,525	7,409	7,828	7,302	7,209
Return on capital employed, %	7.5	6.3	5.5	6.3	7.3	8.9	9.1	10.0	9.4
Free cash flow yield
Cash flow from operating activities (Rolling 12 months)	828	851	646	656	659	601	637	724	694
Cash flows from investments in property, plant and equipment and intangible assets (Rolling 12 months)	-225	-234	-249	-290	-276	-271	-230	-186	-185
Free cash flow (Rolling 12 months)	603	617	397	366	383	330	407	538	509
Number of shares	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299	288,619,299
Free cash flow per share (Rolling 12 months), SEK	2.09	2.14	1.38	1.27	1.33	1.14	1.41	1.86	1.76
Market price per share, SEK	27.12	25.54	25.56	24.52	26.00	23.72	23.52	31.70	28.26
Free cash flow yield (Rolling 12 months), %	7.7	8.4	5.4	5.2	5.1	4.8	6.0	5.9	6.2
Changes in net sales
Net sales	1,566	1,420	1,398	1,466	1,474	1,237	1,518	1,722	1,629
Net sales comparative period previous year	1,474	1,237	1,518	1,722	1,629	1,583	1,559	1,646	1,538
Net sales, change	92	183	-120	-256	-155	-346	-41	76	91
Minus: Changes in exchange rates	-19	-43	-56	-44	-36	-11	21	33	25
Organic growth	111	226	-64	-212	-119	-335	-62	43	66
Organic growth, %	7.5	18.2	-4.2	-12.3	-7.3	-21.2	-4.0	2.6	4.3

Parent company

Condensed parent company profit and loss account

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Net sales	20	23	55	61	73	79
Gross profit	20	23	55	61	73	79
General and administrative expenses	-21	-19	-74	-65	-90	-81
Operating profit/loss	-1	4	-19	-4	-17	-2
Net financial items	-4	-4	-12	-15	53	50
Profit/loss before tax	-5	0	-31	-19	36	48
Income tax	-1	0	4	-1	-6	-11
Profit/loss for the period	-6	0	-27	-20	30	37

Profit/loss for the period corresponds to comprehensive income for the period.

Q3 Cloetta Interim Report Q3 2021

Condensed parent company balance sheet

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
ASSETS
Non-current assets	5,362	5,353	5,354
Current assets	11	9	77
TOTAL ASSETS	5,373	5,362	5,431
EQUITY AND LIABILITIES
Equity	2,848	3,183	3,100
Non-current liabilities
Borrowings	937	137	137
Derivative financial instruments	-	1	-
Provisions	1	1	1
Total non-current liabilities	938	139	138
Current liabilities
Borrowings	250	1,050	1,050
Derivative financial instruments	1	3	3
Other current liabilities	1,336	987	1,140
Total current liabilities	1,587	2,040	2,193
TOTAL EQUITY AND LIABILITIES	5,373	5,362	5,431

Condensed parent company statement of changes in equity

	9 months	Full year
SEKm	Jan–Sep 2021	Jan–Sep 2020	Jan–Dec 2020
Equity at beginning of period	3,100	3,204	3,204
Profit/loss for the period	-27	-20	37
Total comprehensive income	-27	-20	37
Transactions with owners
Share-based payments	-9	-1	3
Dividend1	-216	-	-144
Total transactions with owners	-225	-1	-141
Equity at end of period	2,848	3,183	3,100

1 The dividend paid in 2021 comprised a dividend of SEK 0.75 (0.50) per share.

Sustainability F i n a n c i a l

statements

Accounting and valuation policies, disclosures and risk factors

Accounting and valuation policies

Compliance with legislation and accounting standards The consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) established by the International Accounting Standards Board (IASB) and the interpretations issued by the IFRS Interpretations Committee (IFRIC) which have been endorsed by the European Commission for application in the EU. The applied standards and interpretations are those that were in force and had been endorsed by the EU at 1 January, 2021. The consolidated interim report is presented compliant with IAS 34, Interim Financial Reporting, and in compliance with the relevant provisions in the Swedish Annual Accounts Act and the Swedish Securities Market Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which are consistent with the provisions in recommendation RFR 2, Accounting for Legal Entities. For lease accounting the company makes use of the exemption under RFR2 to treat all leases as operating lease.

Basis of accounting

The same accounting policies and methods of computation are applied in the interim financial statements as in the most recent annual financial statements except for the changes in segment reporting as described below. Reference is made to Note 1 'General information and accounting and valuation policies of the Group' and Note 31 'Changes in accounting policies' in the annual and sustainability report 2020 at www.cloetta.com. No new standards are effective as from 1 January 2021 which have been endorsed by the EU.

Accounting for cloud computing arrangements The IFRS Interpretations Committee has reached its conclusions on the agenda decision on the accounting for cost of configuration or customisation in a cloud computing arrangement. The agenda decision clarifies that a company cannot capitalise expenses related to the implementation of a cloud computing arrangement in case the company has no control over the application software. However, a prepayment for services not yet received would still constitute an asset, but it will then be classified as a prepayment asset in the balance sheet. Cloetta started the investigation of the financial impact of this clarification and its effect on the financial statements.

The adjustment is expected to have a negative net effect on the operating result as previously capitalised expenses should be expensed as incurred while amortisation charges on these capitalised expenses should be reversed.

The adjustment should be reflected in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors". This means that the adjustment should be recorded retrospectively with an adjustment in the opening balance as per 1 January 2020 and in consecutively reported quarterly figures.

Disclosures

Segment reporting

In the years after the acquisition of the Candyking Group in 2017, the Pick & mix business became a significant part of Cloetta's total business with its own focus, operational organisation, management responsibilities and reporting flows. Following the changes in the business, also the management structure of the Group evolved with the introduction of a Chief Pick & mix Officer (CPMO) responsible for the development of the Pick & mix business and a Chief Marketing Officer (CMO) being responsible for the marketing of the Branded packaged business. Both officers are members of the executive committee and are accountable within their own business lines and report directly to the President and CEO.

In Q1 2021, Cloetta has reassessed the operating segments with an increased focus on the impact of the changes in the organisation as indicated above. The reassessment has been performed with the intention to come to a sustainable structure taking into account the current organisation, operating model and initiated initiatives related to the direction of the company.

In the assessment it has been considered that both the Branded packaged business and the Pick & mix business have their own specific characteristics. Both business lines generate their own external revenues and incur expenses and for both business lines a different company wide business and investment strategy has been developed and is in place.

The character of the more profitable Branded packaged business requires investments in the brands (A&P) with consumer visibility (traditional- and social media) to generate long term strength of our own brands, leading to value creation for the company. Cloetta manufactures nearly all products sold in this business in its own production facilities.

The much lower margin Pick & mix business is predominantly a wholesale business where Cloetta sells its own products and its competitors' products to retailers under their own private brand or under the CandyKing concept. The Pick & mix business is driven by volumes and requires investments in the pick & mix concept including investments in the fixtures in which the products are offered to the consumer.

Operating segments have been identified in accordance with the guidance provided in IFRS 8 paragraph 5–10.

The overall focus on revenues, profitability, and strategy specifically for the Branded packaged products business versus the Pick & mix business is reflected as such in Cloetta's external financial reporting and this split is aligned with the interest of Cloetta's investors.

Disaggregation of revenue

from contracts with customers

Cloetta generates revenues from the transfer of goods and services at a point in time and over time in the following major sales categories and performance obligations:

Disaggregation of revenue

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Net sales
Branded packaged products	1,204	1,178	3,402	3,348	4,581	4,527
Pick & mix	362	296	982	881	1,269	1,168
Total	1,566	1,474	4,384	4,229	5,850	5,695

Breakdown of net sales by category

	Third quarter		9 months		Rolling 12	Full year
%	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Net sales
Candy	61	58	60	59	60	59
Chocolate	19	18	18	17	18	17
Pastilles	10	12	11	12	11	12
Chewing gum	5	7	6	7	6	7
Nuts	3	3	3	3	3	3
Other	2	2	2	2	2	2
Total	100	100	100	100	100	100

Breakdown of net sales by country

	Third quarter		9 months		Rolling 12	Full year
%	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Sweden	32	29	31	30	31	31
Finland	22	24	21	22	21	22
The Netherlands	11	15	14	15	14	15
Denmark	9	9	8	9	9	9
The UK	6	4	6	5	5	5
Norway	5	7	7	7	7	6
Germany	6	6	6	6	6	6
Other countries	9	6	7	6	7	6
Total	100	100	100	100	100	100

W o r d s f r o m the president Overview F i n a n c i a l

28 Disclosures Sustainability F i n a n c i a l

statements

Leases

Right-of-use assets

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
Land and buildings	87	106	95
Transportation	51	52	52
Other equipment	11	25	23
Total right-of-use assets	149	183	170

overview

Additions to the right-of-use assets were SEK 14m (23) during the quarter and SEK 24m (68) during the first three quarters of the year.

Lease liability

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
Current	58	66	64
Non-current (between 1 and 5 years)	91	119	110
Non-current (over 5 years)	1	3	2
Total Lease liability	150	188	176

The non-current lease liability of SEK 92m (122) is reflected in the 'long-term borrowings'. The current lease liability of SEK 58m (66) is reflected in the 'short-term borrowings'.

Depreciation charge right-of-use assets

	Third quarter		9 months		Rolling 12	Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020
Land and buildings	-8	-9	-26	-25	-35	-34
Transportation	-7	-7	-21	-23	-28	-30
Other equipment	-2	-2	-5	-7	-7	-9
Total depreciation charge right-of-use assets	-17	-18	-52	-55	-70	-73

Other disclosures

	Third quarter		9 months		Rolling 12 Full year
SEKm	Jul–Sep 2021	Jul–Sep 2020	Jan–Sep 2021	Jan–Sep 2020	Oct 2020– Sep 2021	Jan–Dec 2020	Recognised in:
Interest expense	-1	-1	-2	-2	-3	-3	net financial items, in the profit and loss account
Impairment of right-of-use assets	-	-4	-	-4	0	-4	cost of goods sold, in the profit and loss account
Expense relating to leases of low-value assets that are not short-term leases	0	0	0	0	-1	-1	cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account
Expense relating to short term leases, where no right-of-use asset has been recognised	-2	-2	-4	-6	-6	-8	cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account
Expense relating to variable lease payments not included in lease liabilities	-4	-4	-12	-13	-16	-17	cost of goods sold, selling expenses and general and administrative expenses, in the profit and loss account
Total cash outflow for leases	-16	-17	-53	-55	-73	-75	cash flow from operating activities and financing activities, in the cash flow statement

the president Overview F i n a n c i a l overview

29 Disclosures

Sustainability F i n a n c i a l statements

Taxes

The effective tax rate was positively impacted by the utilisation of unrecognised tax losses carried forward in one of the countries and differences between expected and actual tax filings related to the previous year in a number of countries. International tax rate differences and non-deductible expenses had a negative impact on the effective tax rate.

Fair value measurement

The only items recognised at fair value after initial recognition are the interest rate swaps categorised within level 2 of the fair value hierarchy in all periods presented.

The fair values of financial assets (loans and receivables) and liabilities measured at amortized cost are approximately equal to carrying amounts.

For measurement purposes, the fair value of financial assets and liabilities is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The fair value measurements by level according to the fair value measurement hierarchy are as follows:

• •Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• •Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (that is, derived from prices) (level 2).
• •Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the carrying amounts and fair values of the Group's financial assets and liabilities, including their levels in the fair value hierarchy:

30 Sep 2021	Carrying amount			Fair value
SEKm	Mandatorily at FVTPL	Financial assets at amortised cost	Other financial liabilities at carrying value	Total	Level 1	Level 2	Level 3	Total
Financial assets
• Trade and other receivables, excluding other taxes and social security receivables and prepaid expenses and accrued income	-	911	-	911
• Single currency interest rate swaps	0	-	-	0	-	0	-	0
• Cash and cash equivalents	-	505	-	505
Total assets	0	1,416	-	1,416	-	0	-	0
Financial liabilities
• Loans from credit institutions	-	-	2,071	2,071
• Commercial papers	-	-	250	250
• Single currency interest rate swaps	1	-	-	1	-	1	-	1
• Lease liabilities	-	-	150	150
• Trade and other payables, excluding other taxes and social security payables	-	-	1,166	1,166
Total liabilities	1	-	3,637	3,638	-	1	-	1

W o r d s f r o m the president Overview F i n a n c i a l

overview

30 Disclosures Sustainability F i n a n c i a l statements

Definitions Contact

31 Dec 2020	Carrying amount			Fair value
SEKm	Mandato rily at FVTPL	Financial assets at amortised cost	Other financial liabilities at carrying value	Total	Level 1	Level 2	Level 3	Total
Financial assets
• Trade and other receivables, exclud ing other taxes and social security receivables and prepaid expenses and accrued income	-	663	-	663
• Cash and cash equivalents	-	396	-	396
Total assets	-	1,059	-	1,059	-	-	-	-
Financial liabilities
• Loans from credit institutions	-	-	2,054	2,054
• Commercial papers	-	-	250	250
• Forward contract to repurchase own shares	-	-	49	49	-	2	-	2
• Single currency interest rate swaps	5	-	-	5	-	5	-	5
• Lease liabilities	-	-	176	176
• Trade and other payables, excluding other taxes and social security payables	-	-	982	982
Total liabilities	5	-	3,511	3,516	-	7	-	7

30 Sep 2020	Carrying amount		Fair value
SEKm	Mandatorily at FVTPL	Financial assets at amortised cost	Other financial liabilities at carrying value	Total	Level 1	Level 2	Level 3	Total
Financial assets
• Trade and other receivables, exclud ing other taxes and social security receivables and prepaid expenses and accrued income	-	817	-	817
• Foward contract to repurchase own shares	-	-	-	-	-	1	-	1
• Cash and cash equivalents	-	330	-	330
Total assets	-	1,147	-	1,147	-	1	-	1
Financial liabilities
• Loans from credit institutions	-	-	2,121	2,121
• Commercial papers	-	-	250	250
• Forward contract to repurchase own shares	-	-	49	49
• Single currency interest rate swaps	6	-	-	6	-	6	-	6
• Lease liabilities	-	-	188	188
• Trade and other payables, excluding other taxes and social security payables	-	-	999	999
Total liabilities	6	-	3,607	3,613	-	6	-	6

Overview F i n a n c i a l overview

31 Disclosures Sustainability F i n a n c i a l statements

Definitions Contact

No transfers between fair value hierarchy levels has occurred during the financial year or the prior financial year. The fair value of financial instruments that are not traded in an active market (for example, overthe-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included within level 2.

The valuation of the instruments is based on quoted market prices, but the underlying swap amounts are based on the specific requirements of the Group. These instruments are therefore included within level 2. The valuation techniques and inputs used to value financial instruments are:

• •Quoted market prices or dealer quotes for similar instruments.
• •The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves.
• •The fair value of forward foreign currency contracts is calculated using the difference between the exchange rate on the spot date with the contractually agreed upon exchange rates.
• •Other techniques, such as discounted cash flow analysis, are used to determine the fair value of the remaining financial instruments.

Parent Company

Cloetta AB's primary activities include head office functions such as group-wide management and administration. The comments below refer to the period from 1 January to 30 September 2021. Net sales in the Parent Company amounted to SEK 55m (61) and relate mainly to intra-group services. Operating loss was SEK -19m (–4). Net financial items totaled SEK -12m (–15). Loss before tax was SEK -31m (–19) and loss for the period was SEK -27m (–20). Cash and cash equivalents and short-term investments amounted to SEK 0m (0).

The Cloetta share

Cloetta's class B share is listed on Nasdaq Stockholm, Mid Cap. During the period from 1 January to 30 September 2021, a total of 152,777,151 shares were traded for a combined value of SEK 3,933m, equivalent to around 54 per cent of the total number of class B shares at the end of the period. The highest quoted bid price during the period from 1 January to 30 September 2021 was SEK 30.02 (1 September) and the lowest was SEK 22.02 (28 January). The share price on 30 September 2021 was SEK 27.12 (last price paid). During the period from 1 January to 30 September 2021, the Cloetta share increased by 10.60 per cent while the Nasdaq OMX Stockholm PI index increased by 20.7 per cent. Cloetta's share capital at 30 September 2021 amounted to 1,443,096,495. The total number of shares is 288,619,299, consisting of 5,735,249 (5,735,249) class A shares and 282,884,050 (282,884,050) class B shares, equal to a quota value of SEK 5 per share.

Shareholders

On 30 September 2021, Cloetta AB had 35 988 shareholders. The largest shareholder was AB Malfors Promotor with a holding corresponding to 40,1 per cent of the votes and 29.4 per cent of the share capital in the company. La Financière de l'Echiquier was the second largest shareholder with 3.4 per cent of the votes and 4.0 per cent of the share capital. The third largest shareholder was LSV Asset Management with 3.0 per cent of the votes and 3.5 per cent of the share capital.

Risk factors

Cloetta is an internationally active company that is exposed to a number of market and financial risks. All identified risks are monitored continuously and, if needed, risk mitigating measures are taken to limit their impact. The most relevant risk factors are described in the annual and sustainability report 2020 and consist of industry and market-related risks, operational risks and financial risks.

Compared to the annual and sustainability report which was issued on 15 March 2021, the risk-profile of Cloetta has not significantly changed although the ongoing Covid-19-pandemic continues to affect the business performance of Cloetta.

Sustainability F i n a n c i a l statements

Definitions

General	All amounts in the tables are presented in SEK millions unless otherwise stated. All amounts in brackets () represent comparative figures for the same period of the prior year, unless otherwise stated.
Margins	Definition/calculation	Purpose
Gross margin	Net sales less cost of goods sold as a percentage of net sales.	Gross margin measures production profitability.
Operating profit margin, adjusted	Operating profit, adjusted for items affecting comparability, as a percentage of net sales.	Adjusted operating profit margin excludes the impact of items affecting comparability, enabling a comparison of operational profitability.
Operating profit margin (EBIT margin)	Operating profit expressed as a percentage of net sales.	Operating profit margin is used for measuring the operational profitability.
Profit margin	Profit/loss before tax expressed as a percentage of net sales.	This metric enables the profitability to be compared across locations where corporate taxes differ.
Return	Definition/calculation	Purpose
Free cash flow	Sum of the cash flow from operating activities and cash flow from investments in property, plant and equipment and intangible assets.	The free cash flow is the cash flow available to all investors consisting of shareholders and lenders.
Free cash flow yield	Free cash flow of the last 12 months divided by the number of shares at the end of the period and consequently divided by the market price per share at the end of the period.	This metric is an indicator for the return on investment of investors in the company.
Return on capital employed	Operating profit plus financial income as a percentage of average capital employed. The average capital employed is calculated by taking the capital employed per period end and the capital employed by period end of the comparative period in the previous year divided by two.	Return on capital employed is used to analyse profitabil ity, based on the amount of capital used. The leverage of the company is the reason that this metric is used next to return on equity, because it includes equity, but takes into account borrowings and other liabilities as well.
Return on equity	Profit from continuing operations for the period as a per centage of total equity.	Return on equity is used to measure profit generation, given the resources attributable to the owners of the Parent Company.
Capital structure	Definition/calculation	Purpose
Capital employed	Total assets less interest-free liabilities (including deferred tax).	Capital employed measures the amount of capital used and serves as input for the return on capital employed.
Equity/assets ratio	Equity at the end of the period as a percentage of total assets. The equity/assets ratio represents the amount of assets on which shareholders have a residual claim.	This ratio is an indicator of the company's leverage used to finance the firm.
Gross debt	Gross current and non-current borrowings, credit overdraft facilities, lease liabilities, derivative financial instruments and interest payable.	Gross debt represents the total debt obligation of the company irrespective of its maturity.
Net debt	Gross debt less cash and cash equivalents.	The net debt is used as an indication of the ability to pay off all debts if these became due simultaneously on the day of calculation, using only available cash and cash equivalents.
Net debt/EBITDA	Net debt at the end of the period divided by the EBITDA, adjusted, for the last 12 months, taking into consideration the annualisation of EBITDA for acquired or divested companies.	The net debt/EBITDA ratio approximates the company's ability to decrease its debt. It represents the number of years it would take to pay back debt if net debt and EBITDA were held constant, ignoring the impact of cash flows from interest, tax and capital expenditure.
Net debt/equity ratio	Net debt at the end of the period divided by equity at the end of the period.	The net debt/equity ratio measures the extent to which the company is funded by debt. Because cash and overdraft facilities can be used to pay-off debt at short notice, the leverage takes into account net debt instead of gross debt.
Working capital	Total inventories and trade and other receivables adjusted for trade and other payables.	Working capital is used to measure the company's abil ity, besides cash and cash equivalents, to meet current operational obligations.
Data per share	Definition/calculation	Purpose
Cash flow from operating activities per share	Cash flow from operating activities in the period divided by the average number of shares.	The cash flow from operating activities per share measures the amount of cash the company generates per share from the revenues it brings in, irrespective of the capital investments and cash flows related to the financing structure of the company.
Earnings per share	Profit for the period divided by the average number of shares adjusted for the effect of forward contracts to repur chase own shares.	The earnings per share measures the amount of net profit that is available for payment to shareholders per share.
Equity per share	Equity at the end of the period divided by number of shares at the end of the period.	Equity per share measures the net-asset value backing up each share of the company's equity and determines if a company is increasing shareholder value over time.

Sustainability F i n a n c i a l statements

Disclosures Definitions DefinitionsContact

Other definitions	Definition/calculation	Purpose
Amortisation	Amortisation of intangible assets except for amortisation on software which is included in "Depreciation".	Amortisation deviates from depreciation where amorti sation has the purpose to spread capitalised expenses over the useful lifetime of these expenses.
Depreciation	Depreciation of property, plant and equipment and amorti sation of software.	Depreciation deviates from amortisation where depreci ation has the purpose to spread the cost of a non current asset over the useful lifetime of these assets.
EBITDA	Operating profit before depreciation, amortisation and impairments of other non-current assets.	EBITDA is used to measure the cash flow generated from operating activities, eliminating the impact of financing and accounting decisions.
EBITDA, adjusted	Operating profit, adjusted for items affecting comparability, before depreciation, amortisation and impairments of other non-current assets.	Adjusted EBITDA increases the comparability of EBITDA.
Effective tax rate	Income tax as a percentage of profit before tax.	This metric enables the income tax to be compared across locations where corporate taxes differ.
Items affecting comparability	Items affecting comparability are those significant items which are separately disclosed by virtue of their size or incidence, in order to enable a full understanding of the Group's financial performance. These include items such as restructurings, impact from acquisitions or divestments.	Items affecting comparability increases the comparability of the Group's financial performance.
Net financial items	The total of exchange differences on cash and cash equiv alent in foreign currencies, other financial income and other financial expenses.	The net financial items reflects the company's total costs of external financing.
Net sales, change	Net sales as a percentage of net sales in the comparative period of the previous year.	Net sales, change reflects the company's realised top-line growth over time.
Operating profit (EBIT)	Operating profit consists of comprehensive income before net financial items and income tax.	This metric enables the profitability to be compared across locations where corporate taxes differ, irrespec tive the financing structure of the company.
Operating profit (EBIT), adjusted	Operating profit adjusted for items affecting comparability.	Operating profit, adjusted increases the comparability of operating profit.
Organic growth	Net sales, change excluding acquisition-driven growth and changes in exchanges rates.	Organic growth excludes the impact of changes in group structure and exchange rates, enabling a comparison on net sales growth over time.
Structural changes	Net sales, change resulting from changes in group structure.	Structural changes measure the contribution of changes in group structure to the net sales growth.

Glossary

Branded packaged products	Products that are mainly sold under brands and are packaged.
FVTPL	Fair Value Through Profit and Loss.
Pick & mix	Cloetta's range of candy and natural snacks that are picked by the consumers themselves.
Pick & mix concept	Cloetta's complete concept in pick & mix including products, displays and accompanying store and logistic services.

Exchange rates

SEKm	30 Sep 2021	30 Sep 2020	31 Dec 2020
EUR, average	10.1552	10.5682	10.4880
EUR, end of period	10.1683	10.5713	10.0343
NOK, average	0.9939	0.9829	0.9757
NOK, end of period	1.0003	0.9523	0.9584
GBP, average	11.7729	11.9404	11.7868
GBP, end of period	11.8163	11.5869	11.1613
DKK, average	1.3655	1.4171	1.4070
DKK, end of period	1.3674	1.4197	1.3485

Sustainability F i n a n c i a l statements

Financial calendar

Nathalie Redmo, Head of IR and Communication, + 46 76 696 59 40

This information is information that Cloetta AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person detailed above, at 8:00 a.m. CEST on 29 October 2021.

Our purpose

Contact

"We believe in the Power of True Joy"

Sustainablity

We provide choices for you

We create joyful moments through the quality of our products. We aim to meet the variety of consumer preferences.

Business model

Cloetta's business model is to offer strong local brands in confectionery and nuts and provide effective sales and distribution to the retail trade. Together, this will ensure continued positive development of the company's leading market positions.

We care about people

We support our employees, suppliers, and farmers, as well as our communities.

We improve our footprint

Our business depends on the environment. We are responsible for the impact we have from sourcing to packaging.

Long-term financial targets Strategies

• •Cloetta's target is to increase organic sales at least in line with market growth.
• •Cloetta's target is an EBIT margin, adjusted for items affecting comparability, of at least 14 per cent.
• •Cloetta's long-term target is a net debt/EBITDA ratio of 2.5x.
• •Cloetta's long-term intention is a dividend payout of 40–60 per cent of profit after tax.

Value drivers

• •Strong brands and market positions in a non-cyclical market.
• •Excellent availability in the retail trade with the help of a strong and effective sales and distribution organisation.
• •Good consumer knowledge and loyalty.
• •Innovative product and packaging development.
• •Effective production with high and consistent quality.

A joyful product portfolio

Cloetta's net sales by category, January–September 2021

W o r d s f r o m Overview F i n a n c i a l

the president overview

Sustainability F i n a n c i a l statements Disclosures Definitions Contact

"We believe in the Power of True Joy"

Cloetta, founded in 1862, is a leading confectionery company in Northern Europe. 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, CandyKing, Jenkki, Kexchoklad, Malaco, Sportlife and Red Band. Cloetta has seven production units in five countries. Cloetta's class B shares are traded on Nasdaq Stockholm.

Cloetta AB (publ) • Corp. ID no. 556308-8144 • Landsvägen 50A, Box 2052, 174 02, Sundbyberg, Sweden • Tel +46 (0)8-52 72 88 00 • www.cloetta.com

More information about Cloetta is available at www.cloetta.com