The Hershey Company Profile

100 Crystal A Dr. Hershey, PA 17033 United States Phone : 717-534-4200 800-539-0261 http://www.thehersheycompany.com

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Table of Contents
Company Overview Key Information Key Financials Company Rankings Key People Company Description Company History Industry Information People People Board Members Biographies James E. Nevels John P. (J.P.) Bilbrey Humberto P. (Bert) Alfonso Michele G. Buck C. Daniel Azzara Historical Events Company Financials Financial Summary Annual Income Statement Quarterly Income Statement Annual Balance Sheet Quarterly Balance Sheet Annual Cash Flow Quarterly Cash Flow Earnings Estimates Financial Market Data Historical Financials Competition Competitors List Competitive Landscape 1 1 1 1 2 3 4 6 7 8 10 10 11 11 12 13 13 14 14 14 16 17 18 19 20 21 22 23 24 25 25 27

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Company Overview
100 Crystal A Dr. Hershey, PA 17033 United States Phone : 717-534-4200 800-539-0261 http://www.thehersheycompany.com The Hershey Company will cover you in Kisses and bring you Almond Joy. The company makes such well-known chocolate and candy brands as Hershey's Kisses, Reese's peanut butter cups, Twizzlers licorice, Mounds candy bars, York Peppermint Patty, and Kit Kat (licensed fromNestl). Hershey also makes grocery goods, includingbaking chocolate, ice-cream toppings, chocolate syrup, cocoa mix, cookies, snack nuts, hard candies, and lollipops.Products from the chocolate purveyor are sold throughout North America and exported overseas. The Hershey Trust -- which benefits the Milton Hershey School for disadvantaged children -- controls approximately 80% of Hershey's voting power.

Key Information
DUNS Number Location Type Subsidiary Status Manufacturer Company Type Plant/Facility Size (sq. ft.) Owns/Rents Foreign Trade Accountant Total Employees 1-Year Employee Growth Employees At This Location Year of Founding or Change in Control Primary Industry Primary SIC Code Primary NAICS Code Tradestyle Latitude/Longitude 003002052 Headquarters No Yes Public 210,000.00 Rents Imports / Exports KPMG LLP 13,500 (1.46%) 500 1894 1351:Candy & Confections 20660000:Chocolate and cocoa products 311320:Chocolate and Confectionery Manufacturing Hershey 40.302605 / -76.649246

Key Financials
Fiscal Year-End Sales ($ M) 1-Year Sales Growth Net Income 1-Year Net Income Growth Total Assets Market Value Prescreen Score December $5,671.01M 7.03% $509.80M 16.93% $4,272.73M $12,946.24M Low Risk

Company Rankings
395 in FORTUNE 500 S&P 500

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Key People
Name Mr. James E. Nevels Mr. John P. (J.P.) Bilbrey Mr. Humberto P. (Bert) Alfonso Mr. George F. Davis Ms. Michele G. Buck Mr. David W. Tacka Dr. C. Daniel Azzara Mr. Javier H. Idrovo Mr. Terence L. O'Day Mr. Burton H. (Burt) Snyder Title Chairman President, CEO and Director SVP and CFO SVP and CIO SVP and Global Chief Marketing Officer VP and Chief Accounting Officer SVP Global Research and Development SVP Strategy and Business Development SVP Global Operations SVP, General Counsel, and Secretary

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Company Description
With Hershey since 2003, John P. Bilbrey took over as the candy behemoth's president and CEO in mid2011.Known as J.P., he ascended from hisroleofEVP and COO when the company's top executive announced his plans to move on. Hershey lost its CEO David West, who kissed Hershey goodbye to joinDel Monte Foodsas chief executive. Seasoned replacement Bilbrey has led the chocolate company's international division and its North American unit; he will be focused on expanding Hershey's global presence and jockeying for market share alongside rivalsMarsandKraft, which ownsCadbury. Prior to joining Hershey, the new CEO logged experience atDanone Waters of North Americaand at consumer products giantProcter & Gamble. Hershey had its chance to purchase Cadbury. While it was rumored during 2009 that the company might have been interested in acquiring UK confectioner Cadbury, it remained mum about any deal until it was clear thatKraftwas intent upon purchasing Cadbury. Hershey issued a statement inearly 2010, saying it did not intend to make an offer for Cadbury and Kraft ultimately succeeded in taking overthe Dairy Milk maker.While it may have been a good fit to merge the two giant chocolate candy makers, Hershey, as always, was answerable to the trust, which --as it was generally believed --opposed buying Cadbury. (Cadbury became part of Kraft in February 2010.) Hershey did, however, make an acquisition. Itpurchased Van Houten Singapore from Switzerland-based producer of cocoa, chocolate, and confectionery productsBarry Callebautin 2009. Part of Barry Callebaut'sdivestiture plan, the acquisition gave Hershey astronger presence in the growing Asian confectionery market.Under the terms of the deal, Barry retained ownership of the Van Houten brand and granted Hershey a perpetual license for Van Houten consumer products > in the Asia-Pacific, the Middle East, and Australia, and New Zealand. Exhibiting some sour behavior among its board, inearly 2009 the trust forced theresignation of the company's non-executive board chairman, Kenneth L. Wolf, and indicated that it wanted one of its membersto serve as Hershey's chairman.The boardthen announced the unanimous election of trust member (and board member) James E. Nevels as chairman. As a result ofthe rising costs of sugar and cocoa, the company announced price increases in 2008; due to sluggish sales, itrevamped some of its packaging to reflect a more updatedlook. In addition, it introduced a new premium chocolate brand, Bliss. Chocolate may be the name of the game at Hersheybut the company is also a growing presence in the hard- and non-chocolate candy markets, offering such brands as Good & Plenty and Jolly Rancher. The companyhas beenexpanding its products with new versions of old favorites, such as Jolly Rancher lollipops and bite-sized bits of its popular chocolate bars. It introduced sugar-free chocolate,catering to the growing number of diabetics,and expanded the snack-food and Hispanic markets. It alsobegan producing packaged cookies whose flavors are based on the flavors of its Almond Joy, Reese's, and York products. Hershey has been attempting to join the quickly expanding premium chocolate market. It has introduced its own Special Dark, Extra Dark, and Cacao Reserve brands. It has also acquired such top-of-the-line chocolate manufacturers as Artisan Confections Company (Scharffen Berger brand) and the now discontinuedJoseph Schmidt (Dagoba brand). Moving from the confectionery market to the snack market, Hershey has been busy introducing such items as cookies (Kisses Mini Cookies), 100-calorie treats (Snacksters),and granola bars (Hershey's SnackBarz). Hershey markets its products under more than 80 brand namesin more than 50 countries worldwide. The wholesale distributor,McLane Company, accounted for 22% of Hershey's sales in 2010. McLane is the main distributor of Hershey's products toWal-Mart.

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Company History
The Hershey Company is the legacy of Milton Hershey, of Pennsylvania Dutch origin. Apprenticed in 1872 at age 15 to a candy maker, Hershey started Lancaster Caramel Company at age 30. In 1893, at the Chicago Exposition, he saw a new chocolate-making machine, and in 1900 he sold the caramel operations for $1 million to start a chocolate factory. The factory was completed in 1905 in Derry Church, Pennsylvania, and renamed Hershey Foods the next year. Chocolate Kisses, individually hand-wrapped in silver foil, were introduced in 1907. Two years later the candy man founded the Milton Hershey School, an orphanage; the company was donated to a trust in 1918 and for years existed solely to fund the school. Although Hershey went public in 1927, the school still controls the majority of shareholder votes. The candy company pioneered mass-production techniques for chocolates and developed much of the machinery for making and packaging its own products. At one time Hershey supplied its own sugar cane from Cuba and enlarged the world's almond supply six fold through nut farm ownership. The Hershey bar became so universally familiar that it was used overseas during WWII as currency. Milton refused to advertise, believing that quality would speak for itself. Even after his death in 1945, the company continued his policy. Then, in 1970, facing a sluggish candy market and a diet-conscious public, the company lost share to Mars and management relented. During the 1960s and 1970s, Hershey diversified in order to stabilize the effects of changing commodity prices. The company got into the pasta business with its 1966 purchase of San Giorgio Macaroni, and it bought the Friendly Ice Cream chain in 1979 (sold 1988). The company expanded candy operations by bringing out large-sized bars (1980) and buying Cadbury's US candy business (Peter Paul, Cadbury, Caramello; 1988). In 1990 Hershey formed a joint venture with Fujiya to distribute Hershey products in Japan and bought Ronzoni's pasta, cheese, and sauce operations. Kenneth Wolfe was named chairman and CEO in 1994. Hershey boosted its presence in the non-chocolate candy market with acquisitions of Henry Heide (1995) and the North American operations of Leaf (Good & Plenty, Jolly Rancher) from Finnish candy maker Huhtamki Oyj (1996). In return, it sold Huhtamki Oyj its struggling European confectionery interests. In 1999 the company sold its pasta business to New World Pasta for $450 million and a 6% interest in that company. Also that year the Hershey Trust, wanting to diversify its holdings, sold $100 million of its stock to Hershey. Business melted during the fall of 1999 when a new company-wide computer system delayed orders during the critical Halloween season. The glitches cost the company more than $100 million in lost sales. Hershey bought Nabisco Holdings' breath freshener mints and gum businesses (including the Breath Savers, Care*Free, and Fruit Stripe brands) for about $135 million in 2000. In 2001 Nabisco veteran Rick Lenny replaced Wolfe as CEO. Hershey established a manufacturing presence in South America that year by acquiring the chocolate and confectionery business of Brazilian company Visagis. It also cut about 400 salaried positions and closing three plants and a distribution facility. In 2002 Wolfe retired as chairman and Lenny was selected to replace him. Also that year Hershey settled a bitter six-week factory-worker strike, the longest in company history. It subsequently sold its non-chocolate Heide brands (Heide, Jujyfruits, Wunderbeans, Amazin' Fruit) to Farley's & Sathers Candy Company. Also in 2002 the Hershey Trust said that to diversify its holdings, it wanted to sell its 77% interest in Hershey. However, the sale was temporarily blocked while the state of Pennsylvania reviewed the impact it would have on the community. Despite the injunction against the sale, the trust continued to look for a buyer and was considering a $12.5 billion offer from chewing gum giant, Wm. Wrigley Jr. and a $10.5 billion joint offer from Nestl and Cadbury Schweppes. Amid the community outcry and legal wrangling, the sale was finally called off later in 2002, after 10 of the trust's 17 members changed their minds. Due to the uproar surrounding the proposed sale, the trust board promised to restructure itself. Among the outgoing board members was William Lepley, president and chief executive of the Milton Hershey School. Due to sharply rising cocoa prices, in 2003 Hershey implemented an approximate 3% price increase across its entire domestic product line. It also sold some of its gum brands (Fruit Stripe, Rain-Blo, and Super Bubble) to Farley & Sathers that year. The company began marketing sugar-free chocolates (sweetened with lactitol) in its Hershey and Reese's lines in 2003. The company also introduced the first permanent addition to its Kisses brand in 10 years -- a dark chocolate version of the familiar treat, named Rich Dark Chocolates and wrapped in purple foil. Later that year, it introduced a line of sugar-free chocolates; and (the unsuccessful andnow discontinued) Swoops, chocolate "potato chips" shaped like Pringles and packaged in a canister reminiscent of the Pringles can. In order to expand its sales in the Hispanic market, in 2004 Hershey announced a new line of Latin-inspired candies including those with chili-based flavors and dulce de leche fillings. The company also signed an endorsement deal with Latin singer, Thalia. And in 2004 Hershey's Mexican subsidiary bought one of Mexico's top confectionery

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The company changed its name to The Hershey Company in 2005, dropping the "Foods" from its name in order to reflect the company's move away from coffee, pasta, and restaurant businesses and its concentration on confectionery. In addition Hershey acquired Scharffen Berger Chocolate Maker in 2005, a maker of premium dark chocolates. The deal marked Hershey's first foray into the premium chocolate market. Later that year, it acquired its second high-end chocolate company, Joseph Schmidt Confections. Both companies are located in California. With continuuing increases in raw materials, in 2006 the company began to reduce the total number of its products by up to 25%, eliminating limited-edition and seasonal items and streamlining underperforming brands. Itput its efforts toward thecontinued to expansion in its high-growth categories such as organic chocolate, dark chocolate, cookies, and nuts; in addition, itpurchased organic chocolate confectioner, Dagoba,that year. Presidentand CEO Richard Lennyleft the companyin 2007, having been at Hershey's helm since 2001. It is generally thought that Lenny's resignation was due to disagreements between him and the trust regarding the company's business strategies.CFO David J. West was named as Lenny's successor as president and CEO. Wolfe (a former Hershey CEO)was tappedas chairman. The company formed a joint venture with South Korean confectioner, Lotte, in 2007 to manufacture and sell Hershey's products in China. Continuing to expand its geographical reach that year,Hershey acquired a 51% interest in the food and beverage operations of the Indian conglomerate, Godrej Industries, for $54 million. The purchase was madefor the purpose of distributing Hershey's products in India (one of Asia's fastest growing markets). It did not hurt that Godrej owns Nutrine, India's most popular confectionery brand. In another 2007 move, Hershey and Barry Callebautformed an R&D and supply partnership.Under the terms of the agreement, the companies combined their research and development activities in the areas of new products, premium chocolate, health and wellness, and ingredients.In addition, Barry Callebaut supplies Hershey's Mexican production plant chocolate -- at least88,000 tons per year. In 2011, David West stepped down as CEO, replaced by John P. Bilbrey, who joined Hershey in 2003.

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Industry Information
Hoover's Industries > Food > Candy & Confections ( primary ) > Grains > Packaged Cookies & Crackers > Seasoning & Dressing Manufacturing > Snack Foods > Beverages > Nonalcoholic Beverages Primary SIC Code 20660000 : Chocolate and cocoa products Primary NAICS Code 311320 : Chocolate and Confectionery Manufacturing from Cacao Beans Denotes In-depth Industry Insight by Hoover's Editorial Staff

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People
Employees
Title Chairman President, CEO and Director SVP and CFO SVP and CIO SVP and Global Chief Marketing Officer VP and Chief Accounting Officer SVP Global Research and Development SVP Strategy and Business Development SVP Global Operations SVP, General Counsel, and Secretary VP Global Portfolio Innovation VP Public Affairs VP Investor Relations VP Corporate Communications Manager Public Relations Director Director Director Director Director Director Director Executive Director Director/manager/department Head/chief-safety Executive Director Director; President Cio; Senior Associate Chief Marketing Officer Senior Vice President, Chief Marketing Officer Business Manager India Intl Mkt; Business Manager, India, Name Mr. James E. Nevels Mr. John P. (J.P.) Bilbrey Mr. Humberto P. (Bert) Alfonso Mr. George F. Davis Ms. Michele G. Buck Mr. David W. Tacka Dr. C. Daniel Azzara Mr. Javier H. Idrovo Mr. Terence L. O'Day Mr. Burton H. (Burt) Snyder Ms. Diane J. Lorello Mr. Andy McCormick Mr. Mark K. Pogharian Mr. Kirk D. Saville Ms. Anna Lingeris Ms. Pamela M. Arway Mr. Robert F. Cavanaugh Mr. Charles A. Davis Mr. James M. Mead Mr. Anthony J. Palmer Mr. Thomas J. (Tom) Ridge Mr. David L. Shedlarz Alan Brechbill Joseph Dickey Frank McAneny Ms Patrice Lemarie Jennifer Cessna Andrea Foreman Mr Thomas K Hernquist Bobby Agarwal 60 63 Age 59 54 53 62 49 57 56 Salary -$625,577.00 $515,000.00 -$430,000.00 ---$468,000.00 $500,000.00 --------------------Bonus -------------------------------

57 52 62 65 51 65 62

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Title International Marketing; Executive Vice President-marketing Vice President Grocery Customers Vice President Of Talent Management Senior Vice President And President-hershey International; Vice President, International Finance & Planning; Vp International Finance Vice President Customer And Industry Affairs Branch Manager Branch Manager Director, Operations Improvement North American Final Meet Director Director It Director Senior Director, Finance And Global Operations Director Director, Global Organizational Capability Director Information Security; Director, Information Security World Travel Retail Director Senior Director, Global Design Director Of Information Systems; Director, Systems Director Organizational Effectiveness Director Of Public Affairs Director Of Finance; Senior Counsel

Name

Age

Salary

Bonus

Scott Cole Andre Gottlick Ted Jastrzebski

----

----

Tom Joyce Cindy Gallant Mr Bob Smith Mr Joe Benjamin Larry Best Mr Paul Bomba Greg Buck Mr Joe Carlin Gary Coughlan Donna Cozzens Scott Crowell Lilibeth Cruz Moira Cullen Robert Cybulski James Czupil Christine Dugan Lois Duquette

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Board Members
Title Chairman President, CEO and Director Director Director Director Director Director Director Director Name Mr. James E. Nevels Mr. John P. (J.P.) Bilbrey Ms. Pamela M. Arway Mr. Robert F. Cavanaugh Mr. Charles A. Davis Mr. James M. Mead Mr. Anthony J. Palmer Mr. Thomas J. (Tom) Ridge Mr. David L. Shedlarz Age 59 54 57 52 62 65 51 65 62

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Biographies
James E. Nevels, Age 59
Title held since 2009 : Chairman Current Company Titles
2009 - Present : Chairman 2007 - 2009 : Director

Other Company Affiliations

Director, Tasty Baking Company Director, Milton Hershey School

Biography James E. Nevels has been a Hershey director since 2007 and the non-executive Chairman of the Board of Directors since February 16, 2009. He also chairs the Governance Committee and the Executive Committee and is a member of the Compensation and Executive Organization Committee. Mr. Nevels is a director of Hershey Trust Company and the board of managers of Milton Hershey School. He is one of three representatives of the Milton Hershey School Trust currently serving on our Board. In addition to bringing to our Board the perspectives of the Milton Hershey School Trust, Mr. Nevels has extensive finance and leadership experience. He is Chairman of The Swarthmore Group, Philadelphia, Pennsylvania, a minority-owned investmentadvisory firm, which he founded in 1991. In 2004, he was appointed by the President of the United States to the Advisory Committee to the Pension Benefit Guaranty Corporation, where he served a three-year term. In 2001, he was appointed by the Governor of Pennsylvania as Chairman of the Philadelphia School Reform Commission overseeing the turnaround of the Philadelphia School System, the seventh largest school district in the United States. He was appointed by the Federal Reserve Board of Governors to a two-year term on the board of directors of the Federal Reserve Bank of Philadelphia, beginning January 1, 2010. Mr. Nevels has been a director of Tasty Baking Company since May 2005. He holds a bachelors degree, cum laude and Phi Beta Kappa, in political science and philosophy from Bucknell University, a Masters of Business Administration degree from the Wharton School of the University of Pennsylvania and a Juris Doctor degree from University of Pennsylvania Law School. Source : Proxy, March 15, 2011

John P. (J.P.) Bilbrey, Age 54

Title held since 2011 : President, CEO and Director Current Company Titles
2011 - Present : President, CEO and Director 2011 - 2011 : Interim President and CEO 2010 - 2011 : EVP and COO 2007 - 2010 : SVP; President, Hershey North America 2005 - 2007 : SVP; President, International Commercial Group 2003 - 2005 : SVP; President, Hershey International

Current Company Compensation History Salary Bonus

Total

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Salary
2010 : 2009 : 2008 : 2007 : 2006 : $625,577.00 $550,000.00 $517,366.00 $404,598.00 $370,000.00

Bonus
------

Total
$4,214,807.00 $3,108,794.00 $3,005,370.00 $1,403,900.00 --

Other Company Affiliations

Director, McCormick & Company, Incorporated

Past Company Affiliations

President and CEO, Danone Waters of North America, Groupe Danone Water Division

Biography Bilbrey has more than 30 years of global consumer packaged goods experience. He was named Hershey's interim President and Chief Executive Officer in May 2011. Bilbrey was named Chief Operating Officer in November 2010 with responsibility for day-to-day global operations and commercial activities, leading the Company's supply chain as well as geographic regions, including the U.S.A., the Americas and Asia. From December 2007 to November 2010, he was Senior Vice President, President, Hershey North America. Bilbrey played a key leadership role in the Company's turnaround as well as in the creation and implementation of the Company's confectionery demand landscape and establishment of Hershey's presence in markets around the world. Bilbrey joined Hershey in 2003 as Senior Vice President, President Hershey International. Before joining Hershey, Bilbrey held executive positions at Mission Foods and Danone Waters of North America, Inc., a division of Groupe Danone, Paris, France. He was responsible for all operations of Groupe Danone's North American water division. Additionally, he spent 22 years at The Procter & Gamble Company where he served in positions of increasing responsibility in both the U.S. domestic business as well as numerous international assignments. He has lived abroad and worked in more than 50 countries in North America, Latin America, North Africa and Asia. Source : Company Press Release, June 15, 2011

Humberto P. (Bert) Alfonso, Age 53

Title held since 2007 : SVP and CFO Current Company Titles
2007 - Present : SVP and CFO 2006 - 2007 : VP, Finance and Planning, North American Commercial Group

Current Company Compensation History Salary Bonus

2010 : 2009 : 2008 : 2007 : $515,000.00 $500,000.00 $500,000.00 $448,180.00 -----

Total
$2,387,993.00 $2,213,636.00 $2,022,937.00 $1,782,399.00

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Other Company Affiliations

Director, Eastman Chemical Company

Past Company Affiliations

EVP, Finance, Dr Pepper Snapple Group, Inc.

Biography Senior Vice President, Chief Financial Officer (July 2007); Vice President, Finance and Planning, North American Commercial Group (October 2006); Vice President, Finance and Planning, U.S. Commercial Group (July 2006). Source : 10K, February 18, 2011

Michele G. Buck, Age 49

Title held since 2007 : SVP and Global Chief Marketing Officer Current Company Titles
2007 - Present : SVP and Global Chief Marketing Officer 2005 - 2007 : SVP and Chief Marketing Officer, U.S.

Current Company Compensation History Salary Bonus

2008 : 2005 : $430,000.00 $270,385.00 -$509,083.00

Total
$1,430,421.00 --

Past Company Affiliations

EVP and General Manager, Confections, Kraft North America

Biography Senior Vice President, Global Chief Marketing Officer (December 2007); Senior Vice President, Chief Marketing Officer, U.S. Commercial Group (November 2005). Source : 10K, February 18, 2011

C. Daniel Azzara, Age 56

Title held since 2011 : SVP Global Research and Development Current Company Titles
2011 - Present : SVP Global Research and Development 2007 - 2011 : VP Global Research and Development 2005 - 2007 : VP, Global Innovation and Quality 2004 - 2005 : VP, Global Research and Development Unknown - 2004 : VP, Research and Development

Other Company Affiliations

Trustee, National Confectioners Association

Biography

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Senior Vice President, Global Research and Development (January 2011); Vice President, Global Research and Development (April 2007); Vice President, Global Innovation and Quality (October 2005). Source : 10K, February 18, 2011

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Historical Events
Date
2011-06-15 2011-05-18 2011-05-18 2007-12-01 2007-10-02 2005-04-19

Event
Top Executive Change Top Executive Change Top Executive Change Top Executive Change Top Executive Change Name Change

Details
The company named John P. Bilbrey CEO on a permanent basis. David J. West resigned. The company named John P. Bilbrey Interim President and CEO. David J. West succeeded Richard H. Lenny, who remained chairman. The company announced that David J. West will succeed the retiring Richard H. Lenny on 12/01/2007; Lenny will remain chairman. The company changed its name from Hershey Foods Corporation to The Hershey Company.

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Company Financials

Financial Summary
Company Type Fiscal Year-End 2010 Sales 1-Year Sales Growth 2010 Net Income 1-Year Net Income Growth Prescreen Score Auditor Public NYSE: HSY Headquarters December $5,671.01M 7.03% $509.80M 16.93% Low Risk KPMG LLP

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Annual Income Statement

All amounts in millions of US Dollars except per share amounts.

Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share

Dec 2010 5,671.01 3,255.80 2,415.21 42.59% 1,426.48 197.12 905.30 15.96% 0.00 (96.43) 808.86 299.07 509.80
509.80 -509.80 509.80 8.99% 2.21 2.21 2.21 1.28

Dec 2009 5,298.67 3,245.53 2,053.14 38.75% 1,208.67 182.41 761.59 14.37% 0.00 (90.46) 671.13 235.14 435.99
435.99 -435.99 435.99 8.23% 1.90 1.90 1.90 1.19

Dec 2008 5,132.77 3,375.05 1,757.72 34.25% 1,073.02 249.49 589.90 11.49% 0.00 (97.88) 492.02 180.62 311.41
311.41 -311.41 311.41 6.07% 1.36 1.36 1.36 1.19

Dec 2007 4,946.72 3,315.15 1,631.57 32.98% 895.87 310.93 458.83 9.28% (118.59) -340.24 126.09 214.15
214.15 -214.15 214.15 4.33% 0.93 0.93 0.93 1.14

Dec 2006 4,944.23 3,076.72 1,867.51 37.77% 860.38 199.91 992.56 20.08% (116.06) 876.50 317.44 559.06
559.06 -559.06 559.06 11.31% 2.34 2.34 2.34 1.03

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Quarterly Income Statement

All amounts in millions of US Dollars except per share amounts.

Quarter Ending Revenue Cost of Goods Sold Gross Profit Gross Profit Margin SG&A Expense Depreciation and Amortization Operating Income Operating Margin Nonoperating Income Nonoperating Expenses Income Before Taxes Income Taxes Net Income After Taxes Continuing Operations Discontinued Operations Total Operations Total Net Income Net Profit Margin Diluted EPS from Continuing Operations Diluted EPS from Total Operations Diluted EPS from Total Net Income Dividends per Share

Mar 2011 1,564.22 908.04 656.19 41.95% 377.80 51.05 276.55 17.68% 0.00 (24.48) 252.07 91.96 160.12
160.12 -160.12 160.12 10.24% 0.70 0.70 0.70 0.35

Dec 2010 1,482.81 863.34 619.47 41.78% 391.23 197.12 227.89 15.37% 0.00 (27.65) 200.25 64.73 135.51
135.51 -135.51 135.51 9.14% 0.58 0.58 0.59 0.32

Sep 2010 1,547.12 891.90 655.22 42.35% 357.62 145.74 299.65 19.37% 0.00 (22.26) 277.39 97.22 180.17
180.17 -180.17 180.17 11.65% 0.78 0.78 0.78 0.32

Jun 2010 1,233.24 686.70 546.54 44.32% 336.98 93.30 124.42 10.09% 0.00 (22.78) 101.64 54.92 46.72
46.72 -46.72 46.72 3.79% 0.20 0.20 0.20 0.32

Mar 2010 1,407.84 813.86 593.98 42.19% 340.65 47.33 253.33 17.99% 0.00 (23.75) 229.59 82.19 147.39
147.39 -147.39 147.39 10.47% 0.64 0.64 0.64 0.32

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Annual Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets Dec 2010 Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets
884.64 390.06 533.62 196.89 2,005.22 1,437.70 829.81 4,272.73

Dec 2009
253.61 410.39 519.71 201.73 1,385.43 1,404.77 884.83 3,675.03

Dec 2008
37.10 455.15 592.53 260.16 1,344.95 1,458.95 830.83 3,634.72

Dec 2007
129.20 487.29 600.19 209.91 1,426.57 1,539.72 1,280.82 4,247.11

Dec 2006
97.14 522.67 648.82 149.18 1,417.81 1,651.30 1,088.45 4,157.57

Shareholder's Equity Dec 2010 Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)
0.00 902.32 902.32 227.03

Dec 2009
-720.46 720.46 228.00

Dec 2008
0.00 318.20 318.20 166.39

Dec 2007
-592.92 592.92 166.24

Dec 2006
-683.42 683.42 171.02

Liabilities Dec 2010 Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities
410.66 285.48 602.71 1,298.85 1,541.83 529.75 3,370.42

Dec 2009
287.94 39.31 583.38 910.63 1,502.73 541.21 2,954.57

Dec 2008
249.45 501.50 519.25 1,270.21 1,505.95 540.35 3,316.52

Dec 2007
223.02 856.39 539.36 1,618.77 1,279.97 755.46 3,654.19

Dec 2006
155.52 844.00 454.02 1,453.54 1,248.13 772.48 3,474.14

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Jul 06, 2011 PAGE 18

Quarterly Balance Sheet

All amounts in millions of US Dollars except per share amounts.

Assets Quarter Ending Current Assets Cash Net Receivables Inventories Other Current Assets Total Current Assets Net Fixed Assets Other Noncurrent Total Assets

Mar 2011
752.27 433.52 535.52 233.22 1,954.52 1,443.82 836.81 4,235.16

Dec 2010
884.64 390.06 533.62 196.89 2,005.22 1,437.70 829.81 4,272.73

Sep 2010
244.95 605.74 594.57 219.55 1,664.81 1,378.03 844.10 3,886.94

Jun 2010
249.07 321.05 603.73 241.14 1,414.99 1,378.51 826.49 3,619.99

Mar 2010
303.79 411.25 481.85 216.15 1,413.03 1,394.68 890.98 3,698.69

Shareholder's Equity Quarter Ending Preferred Stock Equity Common Stock Equity Total Equity Shares Outstanding (M)

Mar 2011
0.00 875.42 875.42 227.30

Dec 2010
0.00 902.32 902.32 227.03

Sep 2010
0.00 826.75 826.75 227.12

Jun 2010
0.00 697.37 697.37 227.23

Mar 2010
0.00 752.22 752.22 227.92

Liabilities Quarter Ending Current Liabilities Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Debt Other Noncurrent Total Liabilities

Mar 2011
381.50 285.51 623.92 1,290.93 1,540.92 527.88 3,359.74

Dec 2010
410.66 285.48 602.71 1,298.85 1,541.83 529.75 3,370.42

Sep 2010
350.25 276.91 642.93 1,270.09 1,250.55 539.56 3,060.19

Jun 2010
304.99 41.01 530.01 876.01 1,501.34 545.28 2,922.62

Mar 2010
294.22 55.95 552.12 902.30 1,502.18 541.99 2,946.47

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Jul 06, 2011 PAGE 19

Annual Cash Flow

All amounts in millions of US Dollars except per share amounts.

Dec 2010 Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year
253.61 901.42 (199.29) (71.10) 631.04 884.64

Dec 2009
37.10 1,065.75 (150.33) (698.92) 216.50 253.61

Dec 2008
129.20 519.56 (198.20) (413.45) (92.10) 37.10

Dec 2007
97.14 778.84 (304.35) (442.43) 32.06 129.20

Dec 2006
67.18 723.19 (215.51) (477.72) 29.96 97.14

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Jul 06, 2011 PAGE 20

Quarterly Cash Flow

All amounts in millions of US Dollars except per share amounts.

Quarter Ending Cash and Cash Equivalents at the Beginning of Year Net Cash Provided in Operating Activities Net Cash Provided by Investing Activities Net Cash Provided by Financing Activities Net Increase/Decrease in Cash and Cash Equivalents Cash and Cash Equivalents at the End of Year

Mar 2011
884.64 159.38 (87.18) (204.57) (132.38) 752.27

Dec 2010
244.95 901.42 (199.29) (71.10) 631.04 884.64

Sep 2010
249.07 388.20 (121.61) (275.25) (8.66) 244.95

Jun 2010
303.79 264.85 (74.10) (195.28) (4.54) 249.07

Mar 2010
253.61 181.19 (35.38) (95.63) 50.18 303.79

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Jul 06, 2011 PAGE 21

Earning Estimates
Current Quarter Jun 11 Average Estimate Number of Analysts High Estimate Low Estimate Year ago EPS Growth Rate Consensus Recommendation $0.54 13 $0.58 $0.51 $0.51 6.18% Next Quarter Sep 11 $0.85 12 $0.90 $0.80 $0.79 7.91% Current Year Jun 11 $2.81 15 $2.90 $2.76 $2.55 10.12% Next Year Jun 11 $3.08 13 $3.20 $2.93 -9.61% Hold

866-541-3770 HOOVERS.COM

Jul 06, 2011 PAGE 22

Financial Market Data

Current Information
Last Close (01-Jul-2011) 52-Week High 52-Week Low 60-Month Beta Market Cap Shares Outstanding Dividend Rate Dividend Yield # of Institutional Holders Latest Short Interest Ratio $57.41 $58.20 $45.31 0.32 $12,946.24M 225.51M 1.38 2.27% 2.82 Price/Sales Ratio Price/Book Ratio Price/Earnings Ratio Price/Cash Flow Ratio Return on Assets Return on Equity Current Ratio Long-Term Debt/Equity % Owned by Institutions Latest Net Insider Transactions 2.27 14.79 25.32 15.04 13.17% 64.21% 1.51 2.03 --

Growth Revenue Growth EPS Growth Dividend Growth

12 Month 7.03% 16.32% 7.56%

36 Month 4.66% 33.45% 4.09%

60 Month 3.24% 2.12% 6.60%

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Jul 06, 2011 PAGE 23

Historical Financials
Income Statement
Year
Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004 Dec 2003 Dec 2002 Dec 2001

Revenue ($ M)
5,671.01 5,298.67 5,132.77 4,946.72 4,944.23 4,835.97 4,429.25 4,172.55 4,120.32 4,557.24

Net Income ($ M)
509.80 435.99 311.41 214.15 559.06 493.24 590.88 464.95 403.58 207.16

Net Profit Margin

8.99% 8.23% 6.07% 4.33% 11.31% 10.20% 13.34% 11.14% 9.79% 4.55%

Employees
13,500 13,700 14,400 12,800 15,000 13,750 13,700 14,800 15,400 16,000

2010 Year-End Financials

Debt Ratio Return on Equity Cash ($ M) Current Ratio Long-Term Debt ($ M) Shares Outstanding (M) Dividend Yield Dividend Payout Market Cap ($ M) 170.87% 64.21% 884.64 1.54 1,541.83 227.03 2.27% 0.58 10,704.48

Stock History
Year
Dec 2010 Dec 2009 Dec 2008 Dec 2007 Dec 2006 Dec 2005 Dec 2004 Dec 2003 Dec 2002 Dec 2001

FY High
52.10 42.25 44.32 56.75 57.65 67.37 56.75 39.33 39.75 35.08

Stock Price ($) FY Low

35.76 30.27 32.10 38.21 48.20 52.49 37.28 30.35 28.23 27.94

FY Close
47.15 35.79 34.74 39.40 49.80 55.25 55.54 38.50 33.72 33.85

High
23.57 22.24 32.59 61.02 24.64 33.85 24.67 22.73 27.13 46.77

P/E Low
16.18 15.93 23.60 41.09 20.60 26.38 16.21 17.54 19.27 37.25

Per Share ($) Earns. Div.

2.21 1.90 1.36 0.93 2.34 1.99 2.30 1.73 1.47 0.75 1.28 1.19 1.19 1.14 1.03 0.93 0.84 0.72 0.63 0.58

Book Value
3.97 3.16 1.91 3.57 4.00 5.65 5.88 4.92 5.04 4.23

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Jul 06, 2011 PAGE 24

Competitors List
Company Annabelle Candy Anthony-Thomas Candy Asher's Chocolates Betsy Ann Candies Chase General Chocolates la Carte Chupa Chups Endangered Species Chocolate Enstrom Farley's & Sathers Fazer Konfektyr Ferrero Flowers Foods Ghirardelli Chocolate Godiva Chocolatier Goetze's Candy Guittard Harry London Candies Hostess Brands Jelly Belly Candy Kellogg Kraft Foods (Top Competitor) Laura Secord Lindt & Sprngli Mars, Incorporated (Top Competitor) Nestl (Top Competitor) Otis Spunkmeyer Perfetti Van Melle Purdy's Chocolates Rocky Mountain Chocolate Russell Stover See's Candies Smucker Spangler Candy Sweet Shop USA Tootsie Roll Warrell Corporation Gross Revenue Net Profit Margin ----(1.83%) -----7.65% -5.33% -------9.51% 6.00% -9.38% -31.20% ---12.56% --9.94% --9.97% -Net Operating Cash Flow

$9.60M -$17.60M -$2.94M $25.90M $119.23M $9.20M --$11.78M $2,495.60M $2,573.77M --$11.20M $41.10M -$2,700.00M $0.06M $12,397.00M $49,207.00M $91.90M $2,741.54M $30,000.00M $116,623.51M $533.79M $36.97M $3.60M $31.13M --$4,825.74M -$10.00M $521.45M --

----$0.20M -------$306.05M -------$1,008.00M $3,748.00M -$386.58M -$14,463.94M ---$3.80M --$391.56M --$82.81M --

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Jul 06, 2011 PAGE 25

Company World's Finest Chocolate Wrigley Zachary Confections

Gross Revenue

Net Profit Margin ----

Net Operating Cash Flow

--$35.10M

----

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Jul 06, 2011 PAGE 26

Competitive Landscape
Companies listed are Top Competitors. Key Numbers The Hershey Company $5,671.01M 13,500 $10,704.48M The Hershey Company 42.51% 14.27% 8.97% 64.21% 13.17% 20.85% Mars, Incorporated $30,000.00M 65,000 -Mars, Incorporated ------Nestl S.A. Kraft Foods Inc.

Annual Sales ($ M) Employees Market Cap ($ M) Profitability

$116,623.51M 281,000 $203,626.92M Nestl S.A.

$49,207.00M 127,000 $55,081.58M Kraft Foods Inc. Industry Market

Gross Profit Margin Pre-Tax Profit Net Profit Margin Return on Equity Return on Assets Return on Invested Capital

58.21% 34.69% 31.20% 61.80% 30.76% 44.38%

36.56% 8.44% 6.00% 8.47% 3.12% 4.57%

36.94% 15.27% (0.29%) (1.21%) (0.39%) (0.60%)

30.57% 10.96% 3.29% 5.28% 0.88% 2.43%

Valuation

The Hershey Company 2.27 25.32 14.79 15.04 The Hershey Company 26.5 6.6 55.4 1.5 13.8 37.15%

Mars, Incorporated ----Mars, Incorporated -------

Nestl S.A.

Kraft Foods Inc.

Industry

Market

Price/Sales Ratio Price/Earnings Ratio Price/Book Ratio Price/Cash Flow Operations

1.63 5.22 2.78 13.12 Nestl S.A.

1.23 20.53 1.67 22.52 Kraft Foods Inc.

2.07 21.19 8.18 15.60 Industry

1.51 -2.27 10.29 Market

Days of Sales Outstanding Inventory Turnover Days Cost of Goods Sold in Inventory Asset Turnover Net Receivables Turnover Flow Effective Tax Rate

40.6 5.9 62.3 1.0 9.0 9.70%

49.6 5.7 63.9 0.5 7.4 28.45%

24.1 6.4 57.1 1.3 15.1 --

43.2 7.6 47.9 0.3 8.4 --

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Jul 06, 2011 PAGE 27

Financial

The Hershey Company 1.54 0.98 4.74 2.03 9.40

Mars, Incorporated ------

Nestl S.A.

Kraft Foods Inc.

Industry

Market

Current Ratio Quick Ratio Leverage Ratio Total Debt/ Equity Interest Coverage

1.29 1.01 1.80 0.32 45.94

1.04 0.58 2.66 0.80 3.64

1.61 0.99 3.13 1.04 12.06

1.46 1.30 5.80 1.08 7.61

Per Share Data

The Hershey Company $25.28 $1.31 $3.82 $3.13 $6.84 $3.88 $18.95 The Hershey Company 7.03% 16.93% 16.32% 7.56% 4.66% 33.52% 33.45% 4.09%

Mars, Incorporated -------Mars, Incorporated ---------

Nestl S.A.

Kraft Foods Inc.

Industry

Market

Per Share Data Dividend Per Share Cash Flow Per Share Working Capital Per Share Long-Term Debt Per Share Book Value Per Share Total Assets Per Share Growth

$38.23 $1.26 $4.74 $2.72 $2.30 $22.39 $34.28 Nestl S.A.

$28.75 $1.16 $1.58 $0.32 $15.28 $21.26 $54.21 Kraft Foods Inc.

$23.47 $1.03 $3.12 $3.04 $5.10 $5.94 $18.59 Industry

$20.22 $0.53 $2.97 $2.50 $12.25 $13.47 $78.15 Market

12-Month Revenue 12-Month Net Income 12-Month EPS Growth 12-Month Dividend Growth 36-Month Revenue Growth 36-Month Net Income Growth 36-Month EPS Growth 36-Month Dividend Growth

1.96% 228.28% 247.77% (10.55%) 0.67% 47.59% (47.27%) 23.86%

21.84% 36.18% (29.06%) 0.00% 9.73% 16.68% (3.85%) 3.71%

13.62% 49.78% 50.42% 7.15% 4.33% 31.33% 30.43% 1.51%

8.06% 44.41% -2.18% 2.77% (1.30%) ---

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Jul 06, 2011 PAGE 28