the hershey company at cagny conference, february 18, 2015

CAGNYCONFERENCE

J.P. BILBREY PRESIDENT & CEO

MICHELE BUCK PRESIDENT, NORTH AMERICA

BERT ALFONSO PRESIDENT, INTERNATIONAL

PRESIDENT & CEOJ.P. BILBREY

FORWARD-LOOKING STATEMENTS

This presentation and the related prepared remarks contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to risks and uncertainties. Other than statements of historical fact, information regarding activities, events and developments that we expect or anticipate will or may occur in the future, including, but not limited to, information relating to our future growth and profitability targets and strategies designed to increase total shareholder value, are forward-looking statements based on management’s estimates, assumptions and projections. Forward-looking statements also include, but are not limited to, statements regarding our future economic and financial condition and results of operations, the plans and objectives of management and our assumptions regarding our performance and such plans and objectives. Many of the forward-looking statements contained in this presentation and the related prepared remarks may be identified by the use of words such as “intend,” “believe,” “expect,” “anticipate,” “should,” “planned,” “projected,” “estimated” and “potential,” among others. Forward-looking statements contained in this presentation and the related prepared remarks are predictions only and actual results could differ materially from management’s expectations due to a variety of factors, including those described below. Because actual results may differ materially from those contained in the forward-looking statements, you should not place undue reliance on the forward-looking statements when deciding whether to buy, sell or hold the Company's securities. Factors that could cause results to differ materially include, but are not limited to: issues or concerns related to the quality and safety of our products, ingredients or packaging; increases in raw material and other costs; selling price increases, including volume declines associated with pricing elasticity; market demand for our new and existing products; increased marketplace competition; disruption to our supply chain; failure to successfully execute and integrate acquisitions, divestitures and joint ventures; changes in governmental laws and regulations, including taxes; political, economic, and/or financial market conditions; risks and uncertainties related to our international operations; disruptions, failures or security breaches of our information technology infrastructure; the impact of future developments related to civil antitrust lawsuits and the possible investigation by government regulators of alleged pricing practices by members of the confectionery industry; and such other matters as discussed in our Annual Report on Form 10-K for 2013. All forward-looking statements contained in this presentation and the related prepared remarks are expressly qualified in their entirety by such risk factors. All information in this presentation and the related prepared remarks is as of February 18, 2015, and the Company assumes no obligation to update developments of the risk factors or to announce publicly any revisions to any of the forward-looking statements we make, or to make corrections to reflect future events or developments, except as required by the federal securities laws.

AGENDA

North America, a growth market with a continued solid future

Continuing on the path of “Predictable, Profitable, Sustainable Results”

International expansion on track

J.P. Bilbrey

Michele Buck

Bert Alfonso

5 STRATEGIES DRIVEPREDICTABLE, PROFITABLE, SUSTAINABLE RESULTS

Expand our geographical footprint in focus markets

Gro

wth

pla

nk

s(o

rgan

ic &

via

M&

A)

En

able

rsF

uel

Create & expand a consumer centric portfolio across key geographies

Deliver predictable, profitable & sustainable N.A. business

Win with knowledge, technology and capabilities (people, process and tools)

Drive industry-leading growth through innovation (product & beyond)

BEST-IN-CLASS

SHAREHOLDER RETURN

GLOBALLY, CONFECTION CATEGORY IS LARGE AND GROWING

Source: Euromonitor 2014, Current Value Sales, Fixed Exchange Rate

$198.4B

+4.9% 2009-2014

CAGR

NET SALES TRACKING TOWARD ASPIRATIONAL GOAL

Source : The Hershey Company estimates

M&A

2010 2011 2012 2013 2014 2017e

$10.0

$7.4

$5.3

NET SALES ($B)

5-YR2010-2014CAGR 7%

GLOBAL FOOTPRINT INCREASING, DRIVEN BY CHINAINTERNATIONAL NET SALES ~15% OF TOTAL HSY IN 2015

Mexico

China*

Export/ROW

BrazilIndia

*China includes Golden Monkey

INTERNATIONAL MARKET SHARE INCREASED

Source: Nielson and Euromonitor

IN TOUGH OPERATING ENVIRONMENT

• Hershey chocolate retail takeaway +7.6% in 2014

• Chocolate market share 14.3%, up 0.2 pts

• Reached a ~11% share of the chocolate category in Q4

• Reese’s launch and distribution on target

• Driven by tablet bars, Hershey 2014 retail takeaway increased +4.7%

• Market share of 5.1% was up 0.2 pts

U.S. CMG SHARE LEADERSHIP

* Nielsen, FDMxC ** Nielsen, xAOC+C; CMG = Candy, Mint & Gum

U.S. MARKET SHARE (%)

2008* 2014**

27.5%

5.5%

32.7%

PEER

A

PEER

B

PEER

A

PEER

B

31.4%

5.4%

29.2%

CHANNEL ADVANTAGES

Source: The Hershey Company estimates

HERSHEY % OF U.S. NET SALES BY CHANNEL

31%

15%

6%26%

10%

8%

4%Mass Merchandisers (all)

C-stores

Dollar Stores

Food

Drug Stores

Wholesale Clubs

Specialty Channels

1H14 2H14 FY14

HERSHEY U.S. CMG RETAIL TAKEAWAY ACCELERATED IN 2H14& WAS WITHIN LONG-TERM CATEGORY GROWTH RATE OF 3-4%

Source: Nielsen, xAOC+C; CMG = Candy, Mint & Gum, 52 weeks ended 12/27/14

xAOC+C CHANNELS

+2.0%

+3.6%

+2.7%

+1.8% +1.9% +1.8%

HERSHEY

CATEGORY

1H14 2H14 FY14

+0.9%

+1.9%+1.4%

Source: Nielsen, xAOC+C; CMG = Candy, Mint & Gum, 52 weeks ended 12/27/14

HERSHEY RETAIL TAKEAWAY

HERSHEY U.S. CMG TAKEAWAY BY CHANNELCOMBINED C-STORE, WALMART & DOLLAR CHANNELS EXCEEDED HISTORICAL CATEGORY GROWTH RATE OF 3-4%

1H14 2H14 FY14

+3.7%

+5.2%+4.4%

HERSHEY RETAIL TAKEAWAY C-STORE + WMT + DOLLARFDMx + ALL OTHER CHANNELS

2015 IMPERATIVES

New sales force hires drive incremental in store merchandising and programming

Focus on core brands and leverage new product launches

Int’l investment continues to build brand equity—driving trial and market share gains

Continue to integrate Shanghai Golden Monkey and Krave

CONSUMERS’ RELATIONSHIP WITH FOOD IS CHANGING

68%of global consumers want to recognize all of the ingredients on the label

40% want food made with as few ingredients as possible

Snack food is among the

TOP 3 CATEGORIES globally to support clean labels

• Simple, easy to understand ingredients• Ingredient transparency• Minimally processed• Sustainably sourced

People want to know what’s in their food, where ingredients come from and how it’s made…and Hershey will share that openly and candidly

Source: Food 2020, The Consumer as CEO; Ketchum Global Survey 2014

HERSHEY IS COMMITTED TO TRANSPARENCY AND SIMPLE INGREDIENTS

THOUGHTFUL & RESPONSIBLE SOURCING

SIMPLE & EASY TO UNDERSTAND

SHARING WHAT’S INSIDE

INSIGHTS AND KNOWLEDGE…A CORE COMPETENCYWILL CONTINUE TO BUILD ON THIS TO IDENTIFY CHANGING CONSUMER & RETAIL TRENDS AND PATTERNS

Driving Insights Driving Demand Creation Driving Productivity

17.7%

2010 2015 Est.

EBIT MARGIN

FOCUS ON MARGINS ALLOWS INVESTMENT IN BRANDS

Adjusted Gross and EBIT Margin results; please refer to the non-GAAP reconciliations in the appendix

42.8%

2010 2015 Est.

46.3%+135 to +145

bps YoY

+++vs. 2014

19.6%

GROSS MARGIN

INTERNATIONAL INVESTMENTS

GROWTH INITIATIVES • Portfolio expansion• Distribution gains• Greater levels of advertising

and marketing reach• Increasing capacity

International investments over the last 5 years have resulted in

MARKET SHARE GAINS & CONSTANTCURRENCY NET SALES CAGR OF ~15%in 4 focus markets…will continue to invest in growth initiatives on a path to 10% EBIT margin

SEGMENT REPORTING ($M) 2013 2014

Net Sales:

North America $6,200.1 $6,352.7

International and Other 946.0 1,069.1

TOTAL $7,146.1 $7,421.8

Segment Income:

North America $1,862.6 $1,916.2

International and Other 44.6 40.0

Total Segment Income $1,907.2 $1,956.2

Corporate and Global Administration $533.5 $503.4

Income Before Interest and Income Taxes $1,373.7 $1,452.8

Segment Margin:

North America 30.0% 30.2%

International and Other 4.7% 3.7%

Adjusted Income Before Interest and Income Taxes; please refer to the non-GAAP reconciliations in the appendix

2011 2012 2013 2014 2015e

STRONG EPS GROWTH

$4.30 TO $4.38

$3.98$3.72$3.24

$2.83

+8

% T

O +

10%

(IN

CLU

DIN

G M

&A

DIL

UTI

ON

)

ADJUSTED EPS-DILUTED*

Adjusted EPS-Diluted; please refer to the non-GAAP reconciliations in the appendix

SOLID OPERATING CASH FLOW

2011 2012 2013 2014 2015e

$0.8

$0.6

$1.1$1.2

OPERATING CASH FLOW ($B)

$1.1 TO $1.3

M&A AND CAP-EX

• M&A that accelerates top-line growth

• Cap-ex about 4% of net sales

CASH FLOW PRIORITIES

FINANCIALFLEXIBILITYSHARE BUYBACKS

• Stock option replenishment normal business practice

• $250m share buyback authorized Feb. 2014…

• …$170m outstanding on authorization

DIVIDENDS

• Target payout ratio of about 50%

DEBT REDUCTION

• LT debt at fixed rates, avg. about 4.5%

• Target range 1.5x to 2.0x debt/Adj. EBITDA

#1

#3

#2

#4

Prefer to be EPS accretive by year 2 For “right” strategic acquisition would accept EPS accretion by year 3

Preference is CMG or broader snacking adjacency

Experienced and disciplined

M&A FOCUSED ON BUSINESSESWITH ACCELERATING TOP-LINE GROWTH AND/OR PROPRIETARY CAPABILITY

• N. America or international markets

• Leverage Hershey’s infrastructure and consumer insights

• Advantaged distribution / route-to-market capability

• Lotte manufacturing JV (2007)

• Brookside (2012)

• Shanghai Golden Monkey (2014)

M&A AND CAP-EX

• M&A that accelerates top-line growth

• Cap-ex about 4% of net sales

CASH FLOW PRIORITIES

FINANCIALFLEXIBILITYSHARE BUYBACKS


• $250m share buyback authorized Feb. 2014…

• …$170m outstanding on authorization

DIVIDENDS

• Target payout ratio of about 50%

DEBT REDUCTION

• LT debt at fixed rates, avg. about 4.5%


#1

#3

#2

#4

2011 2012 2013 2014

$385M

$511M

$306M

2011 2012 2013 2014

1.3X

CAPITAL STRUCTUREDEBT TO ADJ. EBITDA


• LT debt at fixed rates, average about 4.5%

1.5X1.3X

SHARE BUYBACK & OPTION REPLENISHMENT


• $170m outstanding on current authorization

1.2X $577M

ROI focused organization

• Realigning resources

• Simplify reporting structure

• Increase speed and decision making

• Enterprise-wide connectivity

OPPORTUNITIES EXIST TO DRIVE GROWTH INITIATIVES & EARNINGSEnables investments that continue to drive sales & earnings growth

Top-lineGrowth

+Margin

Enhancement

$$$

Net Sales Adj. EPS-diluted

LONG-TERM GROWTH RATESLONG-TERM OBJECTIVES

+5-7%

+9-11%

N. America CMG &Snacks/Adjacencies

+3-4%

Innovation +1%

International +1-2%

Gross Margin Improvements

SG&A Leverage

International OI Improvement

REAFFIRMING 2015 OUTLOOK

Net Sales +5.5% to +7.5%

Adj. Gross Margin* +135 bps to +145 bps

Adj. EPS-diluted* +8% to +10%

Adjusted Gross Margin and EPS-Diluted; please refer to the non-GAAP reconciliation in the 4Q 2014 press release dated January 29, 2015

FDMx C-store xAOC+C

JANUARY OFF TO A GOOD START

+1.5%

+5.7% +5.6%

+4.5%

+5.6%4-weeks ended 1/24/15

4-weeks ended 12/27/14

+3.5%

Source: Nielsen; CMG = Candy, Mint & Gum, 4 weeks ended 12/27/14 and 1/24/15

SUMMARY

2015 initiatives reflect learnings from 2014

Hershey’s business fundamentally advantaged

Well positioned to capture opportunities ahead

Focused on continuing to create shareholder value

PRESIDENT, NORTH AMERICAMICHELE BUCK

2015 plans leverage core strengths and execution against fundamentals

2014 a share leading yet challenging year

KEY MESSAGES

Maniacal focus on Core Chocolate

Address evolving retail landscape

North America a profitable growth market

Satisfy incremental consumer snacking needs

Fuel investment and Expand gross margins

NORTH AMERICA A PROFITABLE GROWTH MARKET

+4.5% CAGR

OPERATING INCOME %NET SALES

+170 bps

2014 GROWTH OUTPACED CMG CATEGORY

+0.3SHARE PTS

Source: US only ; Nielsen—Hershey custom database—xAOC+C – 52 W/E 12/27/14

5 STRAIGHT YEARS OF SHARE GAINS

Source: Nielsen—Hershey custom database—xAOC+C; HSY +3.5 Pts vs. 2009

HSY +3.5pts

US CMG SHARE LEADERSHIP

#1

2014 WINS

ADJACENCY

89% of chocolate spreads category growth in ‘14

BROOKSIDE

+52% YoY

50% Repeat

REESE’S

+3.7% YoY

SEASONS

+6.7% YoY

+1.1 Shr Pts

Source: All figures are US retail takeaway for 2014; figures are vs. 2013 where changes are shown; Nielsen—Hershey custom database–xAOC+C, Nielsen X-category database

SEQUENTIAL IMPROVEMENTHERSHEY US CMG

YoY % Chg.

Source: Nielsen—Hershey custom database

CHALLENGES IN 20142014 CHALLENGES 2015 SOLUTIONS

Share of Voice Advertising

Competitive Merchandising Retail Coverage Core Chocolate Focus & Innovation

Trips Space Acquisition Precision eCommerce

Snacking Competition Sourcing from Snacking

Commodities Pricing

OPPORTUNITY TO ADDRESS GROWING CONSUMER INTERESTS

Premium Across the Store

Growing Appeal of Fresh & Less Processed

Health & Wellness Brands

HIGH INCOME / MILLENNIALS

30% of some categories and fast growing

60% of growth in H&W* categories in 2014 from brands launched in last four years

Source: Hartman Group Analysis of Euromonitor data; Long term market performance calculated by comparing differential growth rates between 2004-2013 193

legacy branded product lines. Hartman Health and Wellness 2013 Syndicated Study.; Nielsen Whitepaper; *Nielsen X-Category Db – Yogurt, Breakfast

Bars, Granola/Yogurt Bars, Trail Mixes, Meat Snacks, Nuts, Canned Fruit, Dried Fruit, etc.

More consumers looking for shortest ingredient list (25% in ’13 vs. 11% in ‘07)

2015 PRIORITIES LEVERAGE CORE STRENGTHS

CATEGORY ADVANTAGES HERSHEY COMPETITIVE ADVANTAGES

Advertising Responsiveness

Channel & Seasonal Ubiquity

Impulsivity & Usage

Iconic Brands

Dedicated Retail Sales Force

Knowledge & Insights

EXPANDABLE CONSUMPTION

AMPLIFY BRAND SUPPORT

ADVERTISING

2XSALES

INCREMENTAL REACH TO DIGITAL VIEWERS

HERSHEY’S DIGITAL INVESTMENT

17%Digital now accounts for of video consumption among US adults

3Xvs. PY

~20% of total media

Source: eMarketer

CREATE EXCITEMENT WITH CONSUMERSFOOTBALL

Reese’s over indexes with the millionsof fans that watch College Football

PRINTED CUPS

BASKETBALL

Merchandising Execution Seasonal Sell-through +5-7% HRS

Right Place Right Programming

INCREASE RETAIL COVERAGE

+10%C-STORES

CORE CHOCOLATE FOCUSED MERCHANDISINGMILK, ALMOND, REESE, KIT KATINNOVATION TIED TO CORE

EXPAND USAGE OCCASIONS

SPECIAL TREAT MASS PREMIUMSNACKING PLATFORM

NEW TECHNOLOGY

SIMPLE INGREDIENTS

STRATEGIC INNOVATION TO DRIVE >1 PT GROWTH

Enabling supply chain for:• Non-GM Sugar

• rBST-free Milk

• Sustainable Cocoa

Fewer ingredients

Easier to understand

SATISFY CONSUMER DESIRE FOR SIMPLER INGREDIENTS

CURRENTMILK CHOCOLATE (SUGAR; MILK; CHOCOLATE; COCOA BUTTER; LACTOSE;MILK FAT; SOY LECITHIN; PGPR, EMULSIFIER; VANILLIN, ARTIFICIAL FLAVOR)

PROPOSEDMILK CHOCOLATE (SUGAR; MILK; CHOCOLATE; COCOA BUTTER; MILK FAT;SOY LECITHIN; NATURAL FLAVOR)

HERSHEY’S CARAMELS

DELIVER ON CONSUMER DESIRE FOR “SPECIAL TREAT”

A gourmet chocolate shop experience!

Pre & post trial in top quintile for BASES “Purchase Intent”

KISSES DELUXE

BROADEN PARTICIPATION IN GIFTING

Gifting a large,$1.3B segment

Source: Nielsen—Hershey custom database—xAOC+C; Gifting defined as the following every day and seasonal packtypes: Pres Box / Bag, Prem Pouch, S/H/F)

CRUNCHY CLUSTERS

BRING NEW USERS TO BROOKSIDE

Expands Brookside into Nibbling need state

(+27% new consumers)

Delivers on multi-textural eating experience

Source: Brookside Fruit Crunch BASES II; January 2013

SNACK MIX

SOURCE SNACKING OCCASIONS

The perfect balance of creamy,

crunchy, sweet, and salty

Personally portioned snacking

to tide you overto the next meal

SNACK BITES

COOL BLASTS CAN TRANSFORM BREATH FRESHENING

Chews like a gum……dissolves like a mint

ICE BREAKERS COOL BLASTS

Already at retail in CanadaProprietary Technology

CAPABILITIES ACCELERATE LEADERSHIP WITH RETAILERSAdvantage ReportTM – FMCG

RankManufacturer $ Sales

2009 2011 2013 2014CPG 1 $15-20BHershey $7.4BCPG 2 $30-35BCPG 3 $65-70BCPG 4 $45-50BCPG 5 $10-15BCPG 6 $15-20BCPG 7 $60-65BCPG 8 SubsidiaryCPG 9 $5-10BCPG 10 $35-40BCPG 12 $10-15BCPG 13 Subsidiary

12345678910111213

#2 Hershey $7.4B

INSIGHTS DRIVEN PERFORMANCE

#8

#13

CATEGORY MANAGEMENT

KNOWLEDGE AGENDA

#4

ACQUIRE SPACE VIA IDP

UNDER THE COUNTER

SELF-CHECKOUT

STORE WITHINA STORE

REINVENT THE AISLE

In-storeCoverage

INTEGRATED KNOWLEDGE AND RETAIL CAPABILITIES

PRECISION CAPABILITIES

Retailer Relationships

Analytics

Consumer Insights

LEVERAGE PRECISION TO WORK SMARTER

GEOSPACIALThe isolation

of critical geographic-drivendata differences

in demand

CONSUMERIZATIONThe isolation

of critical consumer-drivendata differences

in demand

MICROCLUSTER

A STEP CHANGE IN PRODUCTIVITY & GROWTH

DISTRIBUTIONOptimizeon-shelf

assortments

PROMOTIONOptimize

merchandised assortments

ADVERTISINGInvest where

it counts most

INNOVATIONGeographically

targeted launches

PRECISION PROVEN RESULTS

IC EVERYDAY - $ % CHGNATIONAL RETAILER

PLANOGRAM PROMOTIONP

LA

NO

GR

AM

RE

SE

T

+20% Hershey(average lift

by week)

+10% Category

Source: Nielsen—Hershey Custom Database – xAOC+C

2X+productivity of national

displays

ACTIVATING PRECISION MEDIA, INNOVATION

RADIO HEAVY UP COVERING 55%

OF VOLUME

ADVERTISING INNOVATION

PORTFOLIO

APPROACH AND PORTFOLIO TO WIN IN ECOMMERCEDELIVERY SOLUTIONS

Curbside Pickup Stock-up & Refill Gifting & Occasions

BROADEN PARTICIPATION ACROSS SNACKING

TREATS WHOLESOMESWEET SNACKS

PROTEIN-BASEDPORTABLE NUTRITION

TASTE NUTRITION

TastePresence of Positives

Accompanies Real FoodBalanced Nutrition

Clean Labels

LEVERAGE CAPABILITIES TO SOURCE SNACKING OCCASIONS

Procurement

Supply Chain&

ManufacturingExpertise

FoodScience

Ubiquitous Distribution

BrandBuilding

SOURCE MAKE TASTE ACTIVATE

EXPAND IN HIGH GROWTH AREASGROWTH OF LEADING SNACKS

xAOC+C, 10-14 CAGR

Source: Health Bars, Meat Snacks, Snack Wheel: Nielsen X-Category Database – Latest 52 W/E 1/24/15; Chocolate Spreads:

Nielsen FBE Database – Latest 52 W/E 1/14/15

LEVERAGE BRAND STRENGTHS TO EXPAND SPREADS

•Unique Reese’s flavor•Leveraging $2B* brand

REESE’S SPREADS JAR REESE’S SPREADS IC

* Retail $

EXPAND BROOKSIDE ACROSS SNACKING CONTINUUM

No artificial flavors

Good source of fiber

Good source of antioxidant vitamins A, C, E

Gluten free

DELIVERING ON SIMPLE INGREDIENTS

ACCELERATE SNACKING PORTFOLIO WITH KRAVE

• Highest awarenessamong Millennials

• Contributing to meat snacks HH penetrationof +2pts to 31% in 2014

Source: Nielsen HH Panel

ON TREND

KRAVE STRADDLES MEAT SNACKS, BETTER FOR YOU

Source: Nielsen Global Survey of Snacking September 2014; IRIWorldwide; *Represents average across all Culinary flavors

MEAT SNACKS

U.S. Size: $3.0B U.S. Size: $4.0B

“BETTER FOR YOU” &FUNCTIONAL SNACKS

NUTRITIONAL PROFILE*

CALORIES 85FAT (g) 1CARBS (g) 10PROTEIN (g) 9

CONFECTIONERY AND SNACKING LEADER

CONFECTIONERY SPREADS, SYRUP,BAKING, MIXES, BITES

SNACKS BARS, MIXES MEAT SNACKS

Taste Presence of Positives | Accompanies Real Food Balanced Nutrition | Clean Labels

TASTE NUTRITION

COMMITMENT TO WIN

• Consumer-centric

• BASES testing

• Research & analytics

• Dedicated sales force

• Supporting structure

• Committed sustained marketing support

DISCIPLINEDINSIGHTS ACTIVATION

VIRTUOUS GROWTH CYCLE CONTINUES IN 2015

GROWTHENGINE

Invest

Grow

ExpandGross

Margin

2015 plans leverage core strengths and execution against fundamentals

2014 a share leading yet challenging year

KEY MESSAGES

Maniacal focus on Core Chocolate

Address evolving retail landscape

North America a profitable growth market

Satisfy incremental consumer snacking needs

Fuel investment and Expand gross margins

BERT ALFONSOPRESIDENT, INTERNATIONAL

KEY MESSAGES

China driving growth with continued strong performance

Achieving solid growth in key international markets

Chocolate market share increased in all key markets in 2014

Portfolio expansion and distribution gains are growth levers

STILL TRACKING TOWARDS INTERNATIONAL NET SALES TARGET …

$257 M

$923 M

$1.2 B

$1.5 B

$2.0 B

2005 2014 2015e 2017e 2019e


…AND GAINING SHARE

Source: Nielsen & IRI for Total chocolate, all international markets Hershey tracks (China, Korea, Thailand, Philippines, Malaysia, Singapore, UAE, Kuwait, KSA,

Mexico, Brazil, Central America, Puerto Rico)

5.8% 6.1%6.7%

7.2%

2011 2012 2013 2014

CHOCOLATE MARKET SHARE

OUR BIG BETS ARE STILL IN THE RIGHT AREAS

Source: OECD-”An Emerging Middle Class”; from Kharas, Homi (2010) “The Emerging Middle Class in Developing Countries” OECD Publishing; UNPD Report

“AN OVERVIEW OF URBANIZATION, INTERNAL MIGRATION, POPULATION DISTRIBUTION AND DEVELOPMENT IN THE WORLD”

MIDDLE CLASS CONSUMPTION(% OF GLOBAL TOTAL)

China will add 400M city dwellers by 2025

>50% of emerging market populationwill live in urban areas

Chocolate category in emerging marketstracks with GDP growth

OUR CATEGORIES ARE GROWING IN EMERGING MARKETS

Source: Euromonitor, Latin America-all Latin America countries including Mexico

$3.5

$9.5

$0.9$2.1

$5.5

$2.7$1.6 $1.2

Brazil China India Mexico

Non-Chocolate Candy Chocolate

CHOCOLATE & NON-CHOCOLATE CANDY 2014 ESTIMATED RETAIL SALES ($B)

CAGR 2009-2014 6% 12% 8% 12% 18% 30% 5% 10%

AND GROWTH PROJECTED TO CONTINUE

Source: Euromonitor, Latin America-all Latin America countries including Mexico

$5.0

$13.0

$1.8 $2.7

$9.5

$4.3 $3.9$1.7

Brazil China India Mexico

Non-Chocolate Candy Chocolate

CHOCOLATE & NON-CHOCOLATE CANDY 2019 EXPECTED CATEGORY SIZE ($B)

CAGR 2015-2019 7% 12% 7% 10% 15% 19% 5% 7%

70%50%

30%50%

Today 2018 GoalUS/Canada RoW

INTERNATIONAL EXPANSION WILL BE KEY TO GROWTH


GROWTH CONTRIBUTION

INTERNATIONAL LANDSCAPE

Brazil

Mexico

Export / ROW

China*

India

* Includes Shanghai Golden Monkey

MAJORITY OF NET SALES FROM FOCUS MARKETS

5.1%

14.3%

WE GAINED SHARE IN OUR KEY MARKETS THROUGH 2014

China Chocolate: Nielsen Total China, 12 months through Nov 2014

Mexico Chocolate: Nielsen MT Chocolate through Nov 2014

Brazil Chocolate: Nielsen Brazil Scantrak Chocolate 2014

CHOCOLATE

9.6%

+0.2

+0.2

+1.7

INCREASED DME INVESTMENT TO DRIVE GROWTH

2013 2015

Short-term profit impact for increased growth

Advertising core brands and new launches

Investing behind innovation

IN LATIN AMERICA, CONTINUING TO FOCUS ONKEY MARKETS OF MEXICO AND BRAZIL

MEXICO CORE CHOCOLATE BUSINESSGROWING AHEAD OF CATEGORY

CHOCOLATE CATEGORY & HERSHEYRETAIL TAKEAWAY GROWTH

HersheyCategory

5.8%7.6%

Source: Nielsen; YTD 2014

NEW DISTRIBUTION PARTNERSHIP

• Access to extensive refrigerated distribution network

• Incremental distribution, potential reach 400K+ outlets

• Drives profitable growth

• Reduces operational complexity in our business

TRANSFORMING TRADITIONAL TRADE BUSINESS

FOCUSED ON TOTAL PORTFOLIO GROWTH

• Flawless execution ofHershey’s anchor events

• Continue Reese’s expansion• Kisses seasonal growth

• Solidify leadership with insights-led innovation

• Expand equities with revised brand architecture

• Build viable Food Service channel• Activate “taste, nutrition & fun”

with consumer promotions

S&RCHOCOLATE GROCERY

MACROECONOMIC HEADWINDS IN BRAZILGROWING AHEAD OF CATEGORY

Source: Nielsen Scantrak; 52 weeks November 2014

CATEGORY & HERSHEY2014 RETAIL TAKEAWAY

HersheyCategory

1.1%

4.7%

Challenging consumer environment; category slowed

Hershey grew share

Building on fundamentals in 2015

BUILDING ON FUNDAMENTALS IN 2015

ICONIC BRANDS, ADAPTED LOCALLY

BRAND ACTIVATION CAPABILITY BUILDING

CHINA CHOCOLATE CATEGORY CONTINUES TO BE ROBUST

$2.7B

$4.3B

2014 2019e

CHINA CHOCOLATE RETAIL SALES

Source: Euromonitor

2014 Growth: 12%

2014-2019e CAGR: 10%

OUR BUSINESS CONTINUES TO GROW AND EVOLVEFASTEST GROWING CONFECTIONERY COMPANY IN CHINA


HERSHEY CHINA SALES

2015e20112008 2014

Leveraging technologyto drive execution

Dedicated team, below market voluntary turnover

$450 M

FOCUSED ON EXECUTING FUNDAMENTALS

• Differentiated portfolio

• Effective brand building model anchored on distribution densification

• Disciplined media with highly effective communication

• In-country R&D enables local flavor profile, innovative packtypes and forms

Localize international

brands

Disciplined learning & expansion

Geographic and portfolio

expansion

Proprietary sales force activationat retail

2014 2018e

PURSUING DISCIPLINED DISTRIBUTION EXPANSION

The Hershey Company estimates

Significant penetration in Tier 1 & 2 cities

Expanded direct sales call coverage

Focused media city coverage2014 2018e

CITY PENETRATION OUTLET COVERAGE

2.5X 1.8X

TIER 3 & 4

TIER 1 & 2

HERSHEY CHINA E-COMMERCE FOCUS YIELDING EARLY WINSFOCUSING ON KEY PLATFORMS... …WITH TAILORED OFFERINGS

Wedding Invitations Special Packs

28% OF SINGLES DAY SALES FROM NON-MEDIA COVERED CITIES

24% SHARE*

*24% share of Tmall.com

Expansion on track

2015 launch

OUR CORE BRANDS ARE RESONATING WITH CONSUMERS

1st $100M brandoutside North America

#2 growth driver

EXPANDING KISSES DELUXE HAS ACCELERATED TOPLINE

Seasons activations expand Kisses brand tothe profitable premium gifting segment

SHANGHAI GOLDEN MONKEY INTEGRATION UNDERWAY

•Achieving cross-company synergies on track:

• SGM products directly sold to MT

• HSY chocolate innovation for TT channels underway

• Expanded snacking platforms

•Strong leadership team

•Slightly accretive in 2015Completed September 2014

WELL-BALANCED PORTFOLIO UNDER TWO LEADING BRANDS

On-trend Munching Monkey nutritional snack

• Bean curd (tofu) • Other snacks

+“Traditional” Golden Monkey brandas cornerstone

• Candy (e.g. milk candy, brown sugar plum)

• Compound chocolate products

S&R

CHOCOLATE

2 leading brands built through strong innovation pipeline and channel access vs. marketing

EAST PENETRATION, STRONG MTHERSHEY CHINA FOOTPRINT

Geographic positions approximate

POS # ~50K

COVERAGE

HIGH PENETRATION

IN TIER 1 & 2 CITIES

COMPLEMENTS HERSHEY CHINA NETWORKSHANGHAI GOLDEN MONKEY FOOTPRINT

140 SALES OFFICES

5 MANUFACTURING PLANTS

DISTRIBUTION CENTERS

Geographic positions approximate

POS #

DISTR.

COVERAGE

~950K

~1.7K

NATIONAL

SALES TEAM ~1.5K

LEVERAGING GOLDEN MONKEY MANUFACTURING CAPABILITIESTO SUPPORT BROOKSIDE LAUNCH

EXPANDING KNOWLEDGE AND INSIGHTSTO SWEETS, REFRESHMENT & SNACKS

SUMMARY

China driving growth with continued strong performance

Achieving solid growth in key international markets

Chocolate market share increased in all key markets in 2014

Portfolio expansion and distribution gains are growth levers

CAGNYCONFERENCE

APPENDIX

APPENDIXReconciliation of GAAP and Non-GAAP Information

For the year ended December 31,

Income

Gross Interest Net Per Share-

In millions of dollars except per share amounts Profit EBIT Expense, net Income Diluted

GAAP results $ 3,336.2 $ 1,389.6 $ (83.5) $ 846.9 $ 3.77

Adjustments:

Acquisition and integration costs -- 14.9 (1.6) 10.3 0.05

Business realignment, including PNC 1.6 12.0 -- 8.3 0.03

NSRPE(I) (2.7) (1.8) -- (1.3) (0.01)

India impairment -- 15.9 -- 14.3 0.06

Loss on anticipated Mauna Loa divestiture -- 22.2 -- 17.4 0.08

Non-GAAP results $ 3,335.1 $ 1,452.8 $ (85.1) $ 895.9 $ 3.98

GAAP Depreciation & Amortization 211.5

Accelerated Depreciation -

Adjusted Non-GAAP EBITDA $1,664.3

2014



Income

Gross Net Per Share-

In millions of dollars except per share amounts Profit EBIT Income Diluted

GAAP results $ 3,280.8 $ 1,339.7 $ 820.5 $ 3.61

Adjustments:

Acquisition and integration costs 0.3 4.0 5.4 0.03

Business realignment, including PNC 0.4 19.1 11.8 0.05

NSRPE(I) 5.4 10.9 6.6 0.03

Non-GAAP results $ 3,286.9 $ 1,373.7 $ 844.3 $ 3.72


Accelerated Depreciation -


2013



Income



GAAP results $ 2,859.9 $ 1,111.1 $ 660.9 $ 2.89

Adjustments:

Acquisition and integration costs 4.1 13.4 9.2 0.04


NSRPE(I) 8.6 20.6 12.7 0.06

Non-GAAP results $ 2,909.0 $ 1,228.9 $ 740.0 $ 3.24


Accelerated Depreciation* (15.3)


* Primarily accelerated depreciation related to the Project Next Century (PNC) program, included in business realignment adjustment

above.

2012



Income



GAAP results $ 2,531.9 $ 1,055.0 $ 628.9 $ 2.74

Adjustments:


NSRPE(I) -- 2.8 2.0 0.01

Gain on sale of trademark rights -- (17.0) (11.1) (0.05)

Non-GAAP results $ 2,577.0 $ 1,090.0 $ 650.7 $ 2.83




* Primarily accelerated depreciation related to the Project Next Century (PNC) program, included in business realignment

adjustment above

2011



Income



GAAP results $ 2,415.2 $ 905.3 $ 509.8 $ 2.21

Adjustments:


NSRPE(I) 0.9 5.9 3.8 0.02

Non-GAAP results $ 2,429.8 $ 1,009.8 $ 591.5 $ 2.57




* Primarily accelerated depreciation and amortization related to the Project Next Century (PNC) program, included in business

realignment adjustment above

2010

the hershey company at cagny conference, february 18, 2015

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