The Hershey Company · NYSE:HSY
The Hershey — Hershey — Merger or Acquisition (November 2021)
12 slides from The Hershey's merger presentation, Nov 10, 2021
Slide 1: Intent to Acquire Dot's Pretzels & Pretzels Inc
| SKINNY fare rat P©P . . Intent to Acquire a= Dot’s Pretzels & Pretzels Inc a November 10, 2021 To view the full press release, click here.
Slide 2: Investing in and Diversifying Our Portfolio for the Future
INVESTING IN AND DIVERSIFYING OUR PORTFOLIO FOR THE FUTURE S I = 4 Vi > 4 SS” INTHE CORE a | TO CAPTURE INCREMENTAL eerie + Bi. long-teun growth HERSHEY. ———
Slide 3: Dot's Pretzels Joining the Hershey Family
DOT’S PRETZELS JOINING THE HERSHEY FAMILY PeFele’ — Reported Net Sales: $160 million Reported Net Sales Growth: 35% Adjusted EBITDA Margin: 37% Source: RI MULO+C 52-weeks ended October 10, 2021; The Pretzel category includes all traditional items along with crisps and filled products. ‘Represents th
Slide 4: Expanding Breadth Across Snacking
EXPANDING BREADTH ACROSS SNACKING ey 77) SKINNY @ eae por ® an SKINNY’ rs i POP = S BROOKSIDE savory
Slide 5: With Growing Leadership in Key Savory Snack Categories and Occasions
WITH GROWING LEADERSHIP IN KEY SAVORY SNACK CATEGORIES AND OCCASIONS SKINNY POP POPCORN @ PIRATE'S BOOTY’ F ay Brand in Brand in RTE Popcorn SY BFY Puffs Pretzels The acquisition of Dot's Pretzels is expected to close in December 2021. The Puffs category includes baked and extru cks, and the Pretzel
Slide 6: Disrupting & Re-energizing the Pretzel Category
DISRUPTING & RE-ENERGIZING THE PRETZEL CATEGORY WITH BOLD FLAVORS AND PREMIUM PRETZEL CRUNCH : TIO Permissible CONSUMER NEEDS 0 “EMOTI Md Exciting to Eat
Slide 7: Focused, Premium Priced Portfolio with Category Leading Velocities
FOCUSED, PREMIUM PRICED PORTFOLIO WITH CATEGORY LEADING VELOCITIES P Dollars ($) per Pound (Ib) Dollars ($) per Total Point Distribution (TDP) ® $950 $6.36 $5.65 $4.06 $325 $272 Gr X Salty Pretzels es ie Comp A CompB f Snacks #1 Item in Category +$100M Retail Sales g : Sg Top 3 Items >80% of Dot’s R
Slide 8: Accelerated Growth Driving the Category
ACCELERATED GROWTH DRIVING THE CATEGORY OFF RETAIL SALES ( a al ) _ —ac $ Retail Sales (SM) $185 P . _ fastest grow 70 PRETZEL AND SALTY SNACK SCALE BRAND 60 50 A 40 =i a 55% *° $12 = of the Pretzel category growth 10g a z OVER PAST YEAR 2016 2017 2018 2019 2020 L52W Greater than $10M in U.S. retail
Slide 9: Acquiring Pretzels Inc to Maximize Supply Chain Capacity, Profitability and Continuity
ACQUIRING PRETZELS INC TO MAXIMIZE SUPPLY CHAIN CAPACITY, PROFITABILITY AND CONTINUITY PRETZELS 0 7» INC Co-Manufacturer for ae S other branded products, and private label Capital Investment of $100M in past 3 years Capacity and capabilities offer breadth for Dot’s and CMG branded snacking items
Slide 10: Leverage Best of Big and Small
LEVERAGE BEST OF BIG AND SMALL @ HERSHEY. i ey PRETZELS Category Strategy Strong Brand Equity a Distributi cee Patt ove Disruptive Product Offering A le Media / In-H i ddressable edie /' In-House Creative Independent DSD Distributor Network Product & Pack | ti roduc ack Innovation Manufacturing Scal
Slide 11: Transaction Overview
TRANSACTION OVERVIEW TERMS FINANCING CLOSING Total Investment $1.22B Cash on hand and commercial Pending regulatory approvals paper Aggregate Net Sales $275M? Expected to close in Dec ‘21 No change expected to corporate Expected to be slightly accretive to credit rating reported earnings per share i
Slide 12: Making More Moments of Goodness
MAKING MORE M&MENTS 6F GOODNESS