Current supplementary information regarding Candyking

Stockholm, December 11, 2013, 01.00 p.m

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN, HONG KONG, NEW ZEALAND, SOUTH AFRICA OR THE UNITED STATES.

The initial public offering of Candyking Holding AB (publ) (“Candyking” or the “Company”) has attracted strong interest among investors. The offering was over-subscribed already on the first day of the application period. All call options offered to key persons of the Company will be acquired in connection with the offering and all new members of the board of directors have applied for acquisition of shares in the offering.

The Company’s historical development and the development up until the third quarter is disclosed in the publicly announced prospectus dated 28 November 2013. The Company expects that the result of operations in the fourth quarter of 2013 will be adversely affected by the effects from the fires in the facilities of two of Candyking’s largest suppliers in October, as well as from negative currency effects compared to the fourth quarter of 2012.

The effect from these fires has gradually become more extensive and is currently estimated to affect the result of operations by SEK 3.5 million for the fourth quarter. The Company expects to return to normal supplies and, as a result, a normal cost situation already in the first quarter of 2014. The fourth quarter is also adversely affected by negative exchange rate developments compared to the corresponding quarter the previous year of approximately SEK 3 million, based on current exchange rates. Despite these adverse effects in the fourth quarter, the Company expects a higher underlying operating result for 2013 compared to 2012. Taking into consideration the measures implemented, and to be implemented, by management, the above effects in the fourth quarter will not affect the Company’s long-term earnings potential.

As a consequence of the information in this press release, the Company will prepare and make public a supplement to the prospectus prepared in connection with the offering and contemplated listing on NASDAQ OMX Stockholm.

As a result of the supplementary information provided in this press release the book-building process for institutional investors will be extended to 13 December 2013 (inclusive). Trading in Candyking’s shares is expected to commence on or about 16 December 2013, under the trading symbol “CANDY”. The board of directors of Candyking reserves the right to further extend the book-building process for institutional investors. Such extension, if any, will be announced through a press release not later than 13 December 2013.

About Candyking
Candyking was founded in 1984 and is the leading provider of pick & mix confectionery in the Nordics. Candyking is also active in the United Kingdom, Ireland, Poland, the Czech Republic, Slovakia and Hungary. In all markets where the Company is present, it is the only specialized pick & mix provider with international reach.

The cumulative value of the Nordic confectionery market in 2012 amounted to approximately SEK 36 billion, with an average annual growth rate amounting to 1.2% (measured in terms of volume) between 2002 – 2012. Since Candyking launched its concept thirty years ago in Sweden, consumption of pick & mix confectionery has steadily increased and today represents approximately one third of the total confectionery consumption in Sweden.

Candyking offers a complete “shop-in-shop” solution within pick & mix. The Company’s business model creates value for suppliers, customers and consumers, which gives Candyking a unique position in the value chain. Candyking’s displays cover more than 30km in more than 10,000 point-of-sales. In addition to the confectionery pick & mix concept, referred to as Candyking (Karamellkungen in Sweden), the Company’s operations also include Parrot’s, the natural snacks pick & mix concept; Premiyum, the Company’s luxury chocolate pick & mix niche concept and Candyking Favourites, the Company’s niche concept for pre-packed pick & mix. Furthermore, the Company has established an efficient operational platform, which, combined with its low working capital requirements and limited investment requirements, create good opportunities for growth, while strong cash flows are maintained. Candyking has since 2011 implemented or launched several cost saving initiatives in different business areas, which has contributed to optimizing of the assortment, rationalization of supplier networks and customer networks, increased effectiveness in the distribution network as well as structural changes to the organization. During 2013 Candyking has continued to increase effectiveness in the merchandizing organization and to improve sourcing and category management.

Candyking is well positioned to take advantage of several attractive growth alternatives, including: growing the current business through increased sales to existing customers (by, for example, rolling out additional concepts per store, increasing store space dedicated to Candyking’s concepts and promotional sales activities) and expansion of the customer base (by, for example, developing new customers, exploring new market channels, developing new concepts and expanding geographically) as well as growing through strategic acquisitions.

In 2012, Candyking had net sales of approximately SEK 1,748 million, corresponding to approximately 40,800 tonnes of sold confectionery and natural snacks. Furthermore, the Company had an average of approximately 913 employees, equivalent to 580 full-time equivalents (FTEs), of which 416 FTEs belonged to the Company’s own in-house merchandizing organization.

For additional information, please contact:
David von Laskowski, President and CEO, +46(0)8 795 03 00

Anders Fogel, Founding Partner, Fogel & Partners, +46(0)722 044 750

More information is available on www.candyking.com

Important information
Copies of this announcement are not being made and may not be distributed or sent into Australia, Canada, Japan, Hong Kong, New Zealand, South Africa or the United States.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Candyking Holding AB (publ) does not intend to register any portion of the Offering of the securities in the United States or to conduct a public offering of the securities in the United States.

In any EEA Member State, other than Sweden, that has implemented Directive 2003/71/EC as amended (together with any applicable implementing measures in any member State, the “Prospectus Directive”), this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.

This communication does not constitute an offer of the securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

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