The Hershey Company · NYSE:HSY
The Hershey — Hershey — Shareholder Meeting (May 2023)
41 slides from The Hershey's shareholder meeting presentation, May 16, 2023
Slide 1: Annual Meeting of Stockholders
HERSHEYS Annual Meeting of Stockholders Tuesday, May 16, 2023
Slide 2: Michele Buck, Chairman, President & CEO
Michele Buck Chairman of the Board President & Chief Executive Officer
Slide 3: Welcome
Welcome Items of Business Business Review Question and Answer Voting Results
Slide 4: Welcome
Welcome Items of Business Business Review Question and Answer Voting Results
Slide 5: Voting Items
ELECTION OF DIRECTORS RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS ADVISE ON NAMED EXECUTIVE OFFICER COMPENSATION FREQUENCY OF FUTURE ADVISORY VOTES STOCKHOLDER PROPOSAL VOTING
Slide 6: Election of Directors
— Election of Directors =— Pamela Arway Maria Kraus Victor Crawford Robert Malcolm Robert Dutkowsky Anthony Palmer Mary Kay Haben Juan Perez James Katzman Michele Buck Diane Koken The Board recommends a vote FOR each of the director nominees
Slide 7: Ratification of Appointment of Independent Auditors
Ratification of Appointment of Independent Auditors The Board recommends a vote FOR ratification of the appointment of ERNST & YOUNG LLP as independent auditors for the fiscal year ending December 31, 2023
Slide 8: Advise on Named Executive Officer Compensation
Advise on Named Executive Officer Compensation The Board recommends a vote FOR approval, on a non- binding advisory basis, of the Company’s named executive officer compensation
Slide 9: Frequency of Future Advisory Votes
Frequency of Future Advisory Votes The Board recommends a vote of | YEAR on the frequency of future advisory votes on named executive officer compensation
Slide 10: Stockholder Proposal
Stockholder Proposal The Board recommends a vote AGAINST the stockholder proposal
Slide 11: Elvis Oppong-Mensah, Civic Response Ghana
Elvis Oppong-Mensah Civic Response Ghana
Slide 12: Voting Items
ELECTION OF DIRECTORS RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS ADVISE ON NAMED EXECUTIVE OFFICER COMPENSATION FREQUENCY OF FUTURE ADVISORY VOTES STOCKHOLDER PROPOSAL VOTING
Slide 13: Welcome
Welcome Items of Business Business Review Question and Answer Voting Results
Slide 14: Forward Looking Statements
—_— Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Many of these forward-looking statements can be identified by the use of words such as “anticipate,” “assume,” “believe,” “continue,” “esti
Slide 15: Great Brands
Great Brands
Slide 16: Slide 16
Slide 17: ...For Our Portfolio, Capabilities, People, Customers
S ...FOR OUR portfolio ..FOR OUR Capabilities ...FOR OUR people ...FOR OUR Customers ...FOR OUR environment ...FOR OUR Shareholders
Slide 18: SKINNY ao
SKINNY ao ©P MINI CAKES
Slide 19: Delivering Differentiated Results
Delivering Differentiated Results Net Sales 5-Year CAGR! Adjusted EPS 5-Year CAGR' 12.3% 6.8% 3.7% LT = S&P Food HERSHEY< S&P Food HERSHEY tNet Sales and adjusted EPS are presented on a calendar-year basis. Source: Factset, Company Financials, see appendix for a reconciliation of GAAP to Adjusted EP
Slide 20: Generated Peer-leading Market Performance
Generated Peer-leading Market Performance Market Performance Stock Price Index to 12/31/2017 HSY: $276 : S&P HSY: $114 Food oO @ @ @ @ @ Dec 2017 Dec 2018 Dec 2019 Dec 2020 Dec 2021 May 2023 Source: Factset _ tovsvocxrmes anos +14 2%
Slide 21: Be a portfolio of growing, consumer-loved brands
Ww ws Be a portfolio of growing, consumer-loved brands Lead the category in performance, insights and execution Invest differentially in brands and capabilities Be the #1 CPG company to work for Deliver consistent, advantaged financial performance ~— — Ds
Slide 22: Our Fundamental Strategies Remain the Same
TO ACHIEVE THIS VISION, Our Fundamental Strategies | REMAIN THE SAME | UNDISPUTED LEADER SCALE U.S. CMG Salty Snacks PROFITABLE GROWTH IN . INCREMENTALITY VIA International LEED M&A A Leading Snacking Powerhouse
Slide 23: Capitalizing on Consumer Trends
Capitalizing on Consumer Trends (3) Ve Home-Centricity Caine +42B More At-Home Eating More Ways to Reach Consumers Occasions vs 2019 HERSHEY | Addressable Media From 20% to 65% Source: 1: The NPD Group: Eating Patterns in America, Trends in Meals & Snacks & Snack Track, Trend in Snack Categories by
Slide 24: Categories are Primed for Growth
Categories are Primed for Growth Retail Sales 3-Year CAGR' 11.4% 11.5% Bs ES = RTE Popcorn Pretzels SaltySnacks Edibles Opportunity to Grow Salty Snacks Brands are Scaled, Fast-growing > Pretzel $335M? Fastest-Growing Pretzel Brand Over 3-Years Source: 1: IRI, Calendar Year w/e 01/05/20 to 01/01/23
Slide 25: Profitable International Growth
Profitable International Growth Hershey’s asa Reese’s Carving Differentiating Global Powerhouse its Own Path with Local Jewels CR 10) ws Com) Lie ppoall ” coher ¥ Pelon on track to be #1 in Spicy in Mexico
Slide 26: On-trend Categories
@ On-trend Categories @ Scale Brands @ Incremental Occasions @ Strong Gross Margins
Slide 27: Focused on Key Strategies for the Future
Focused on Key Strategies for the Future Fa} 10% eet S ii Enhance data Add capacity & Accelerate talent Integrate Salty and technology increase and digitize Snacks and expand solutions resilience processes capabilities
Slide 28: Provide Differentiation
PROVIDE DIFFERENTIATION e gveryday At Hom a a INTER- NICHE FAVORITES| | NATIONAL SALTY SEASON | | ON-THE-Go
Slide 29: Growing Categories
& Growing Categories Y Volume & Price Growth @ Leading Margin Performance ¢ Strong Cash Flow Enabling Portfolio Expansion Vv Disciplined Capital Allocation with Differentiated Reinvestment Peer-leading Return for Shareholders
Slide 30: Capital Allocation Strategy to Support Growth
Capital Allocation Strategy to Support Growth and Create Value for Shareholders Business Reinvestment | 2 dividend Including M&A Maintain a dividend . payout >50% Sustain Financial Strength and Debt Reduction ry Flexibility 3 Share Buybacks « Net leverage ratio ¢ Consistent amount annually target of
Slide 31: ESG Priorities Aligned to Material Issues
ESG Priorities Aligned to Material Issues Responsible sf Sourcing & XY Environment Human Rights Using robust due Enhancing our operations diligence and leading to meet high-impact standards to protect climate, waste and people across our value packaging goals chain €% Community
Slide 32: Keep the Momentum Going
KEEP THE INVEST MOMENTUM — DIFFERENTIALLY © GOING & PRAGMATICALLY Deliver Peer-leading Shareholder Return EXECUTE AND TRANSFORM
Slide 33: Welcome
Welcome Items of Business Business Review Question and Answer Voting Results
Slide 34: Welcome
Welcome Items of Business Business Review Question and Answer Voting Results
Slide 35: GAAP Reconciliations
Slide 36: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2022 In Millions of Dollars Except Per Share Amounts GAAP results Adjustments: Derivative mark-to-market losses Business realignment activities Acquisition and integration-related activities Other miscellaneous losses, Tax eff
Slide 37: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2021 In Millions of Dollars Except Per Share Amounts GAAP results Adjustments: Derivative mark-to-market gains Business realignment activities Acquisition and integration-related activities Noncontrolling interest share of bus
Slide 38: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2020 In Millions of Dollars Except Per Share Amounts GAAP results. Adjustments: Derivative mark-to-market losses Business realignment activities Acquisition-related costs. Pension settlement charges relating to Company-directe
Slide 39: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2019 nl Income In Millions of Dollars Except Per 7 ; z Interest- Gross Profit Operating Profit Net Income Per Share- Share Amounts Expense, Net . Diluted GAAP results. $ 3,622.5 $ 1,596.0 $144.1 $ 1,149.7 $5.46 Adjustments: De
Slide 40: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2018 In Millions of Dollars Except Per Share Amounts GAAP results. Adjustments: Derivative mark-to-market gains Business realignment activities Acquisition-related costs. Pension settlement charges relating to Company-directed
Slide 41: Reconciliation of GAAP and Non-GAAP Information
Reconciliation of GAAP and Non-GAAP Information Year-ending: December 31, 2017 In Millions of Dollars Except Per Share Amounts GAAP results Adjustments: Derivative mark-to-market gains Business realignment activities Acauisition-related costs Pension settlement charges relating to Company-directed i