THORNTONS PLC INTERIM RESULTS PRESENTATION 28 weeks to 10 January 2009 WEDNESDAY 18 FEBRUARY 2009

1. THORNTONS PLC INTERIM RESULTS PRESENTATION 28 weeks to 10 January 2009 WEDNESDAY 18 FEBRUARY 2009

2. INTERIM RESULTS

3. H1 SALES (28 WEEKS)

4. BRANDED OUTLETS

5. MARGINS AND PBT

6. GROSS PROFIT AND OPERATING EXPENSES

7. CASH AND DEBT

8. EXISTING COVENANTS Bank covenant tests were met at the end of H1: • Interest cover • Net debt to EBITDA • Fixed charge cover

9. STRATEGY Deliver sustainable, profitable growth by: • Developing innovative new products • Giving the brand greater relevance and a more premium feel • Modernising the instore environment • Further expanding the Commercial and Direct business • Attracting and retaining the best people • BUT ADAPTED TO CURRENT MARKET CONDITIONS AND WITH GREATER EMPHASIS ON COST SAVING INITIATIVES

10. NEWPRODUCT SUCCESSES • Excellent sales of Thorntons Moments in first half • + £2.6m in Thorntons stores • + £2.2 in Commercial sales • Chocolate Blocks • + £0.8m in Thorntons stores from September to Christmas • Fusions • Successfully tested in 20 stores and online despite cut back in support • Ice Cream • 2 new varieties planned for this summer - mint and white

11. INCREASING BRAND RELEVANCE • The building blocks are in place. Consumers are increasingly seeing us as being accessible and relevant to them. 2007 2008 Source: Brand Tracker Christmas 2008

12. IN-STORE ENVIRONMENT Transforming the Customer Experience in 6 Concept Stores • Launch of five new stores in: Kingston, Reading, Bluewater, Nottingham (King Street) and Edinburgh. The first step in creating a contemporary and interactive in-store experience for customers • First Hot Chocolate Bar in the UK in Nottingham (Listergate). A welcoming, modern destination, indulgent hot drinks and cakes, and the Thorntons in store chocolatier • Added a net 3 new own stores and 8 new franchisees in the half year

13. CUSTOMER SERVICE IMPROVEMENTS Own Stores • New EPOS successfully implemented (over £4m capex) • Transaction time down by 2/3 • Reduced queues at Christmas • On time, on budget, all functional benefits delivered • Improved stock management resulting in improved availability • Auto replenishment fully implemented • No Christmas stock hangover • Improved in-store navigation

14. COMMERCIAL SALES GROWTH • Successful re-launch of the Thorntons inlaid boxed chocolates range, leading to 23% growth • Added Mints and Dark Collections to the Commercial range • Driven value into the market predominantly by full value sales throughout the season • Strong product availability throughout the Christmas season • Strong growth via independent and convenience sectors due to increased distribution • A successful first season in the twist-wrap category with the Thorntons Moments brand • Grew the total business 8.9% despite the loss of the Woolworths account. Growth excluding Woolworths was a strong 15%

15. INLAID BOXED CHOCOLATE VALUE GROWTH Value Sales (£m) % Change YOY 25% -6% 10% -34% 3% -4% 49% -4% Source: Nielsen Scantrack data to 27.12.08

16. THORNTONS GROWTH OUTPERFORMS THE MARKET Inlaid Market (MAT) Thorntons Inlaid (MAT) Kg (m) £m Kg (m) £m Thorntons has shown growth in both value and volume terms, bucking the declining trend of the total inlaid market. We have seen faster growth in value than volume, suggesting that our growth has come whilst discounting less than the total inlaid market. Source: Nielsen Scantrack data to 27.12.08: Assorted Chocolates in an Inlaid Box

17. STEADY INCREASES IN OVERALL DISTRIBUTION Thorntons Weighted Distribution % Removal of Advent calendars, (increased selling space) 2nd phase of Christmas stock displays Introduction of Christmas stock displays Stores listing any Thorntons product as a % of total number of outlets in the country weighted by the relative importance of the store (usually on category volume) Source: Nielsen Scantrack data to 27.12.08

18. CHRISTMAS COMMERCIAL PERFORMANCE Inlaid (£m) Twist Wrap (£m) Source: Nielsen Scantrack data to 27.12.08

19. THORNTONS DIRECT • Online sales growth of 26% offset the decline of the corporate sector due to the challenging economic climate, leading to overall sales growth of 1.3% • October launch of new online checkout process was a key driver of improved site conversion by 11% YoY • Improved CRM focus lead to 125% increase in sales generated via e-mails: • deeper database segmentation • more targeted communications • Successful 30% growth of the database through new initiatives to increase awareness of www.thorntons.co.uk helped secure new visitors to the site and deliver market share gains • Service level improvements to > 98.5% across both consumer and corporate

20. ATTRACTING AND RETAINING THE BEST PEOPLE Sarah Riley, new Director of HR, joined in August 2008 • Developed an HR strategy aimed at individual, team and business performance improvement • Introduced a business wide employee engagement survey • achieved 56% response rate • 64% employee engagement index • action planning taking place throughout business at team level • Store staff turnover continues to decline with consequent improvement to customer services and sales • Won 2 awards in the 2008 Personnel Today Awards in relation to achievements in working practices across retail

21. PROFIT IMPROVEMENT INITIATIVES Growth Opportunities • Driving footfall harder e.g. improved window communication, bounce back schemes, sampling, “Perfect Partner” offers, etc • Most boxed chocolate competitors are sourced in Euros • Woolworths creates an opportunity on the High Street in our own stores, franchises and other accounts • Recruitment of Woolworths Category Manager as consultant until Easter • Opportunities in other accounts • Eg Sainsburys, Morrisons and ASDA Valentines offers on TV • Opportunity for Corporate Sales into the Hotel sector gathering momentum

22. PROFIT IMPROVEMENT INITIATIVES Cost Saving Initiatives - Operational • Brought sourcing of Thorntons Moments in-house • Streamlining production: • £1.1m Capex for second flexible packaging line • Delivering 30% improvement on direct packaging labour costs • 2.7% improvement of labour derived average product margin • No overtime costs compared to last year (early Easter) • Improvements to factory layout to avoid unnecessary intermediate handling

23. PROFIT IMPROVEMENT INITIATIVES Cost Saving Initiatives – Operational ..(cont.) • More effective purchasing of raw materials (except cocoa) and consumables by using e-auctions • Further standardising packaging and ingredients • Dual sourcing from the Far East (ribbons, trim and rigid boxes) • Froze all “small” IT projects • Realigned Thorntons Direct costs in line with drop in Corporate sales

24. RAW MATERIALS UPDATE Dairy markets have collapsed against recent highs, whereas the cocoa market continues its bullish trend Cocoa Jul 07- Present Date 154 177 100 115 Butter Jul 07- Present Date 140 85 100 57

25. PROFIT IMPROVEMENT INITIATIVES Cost Saving Initiatives - Payroll • Froze external recruitment in the Autumn • More closely aligned shop staff hours to sales • Changing defined benefit pension scheme (closed to new starters in 2002) from final salary to career average (CARE) • Gave all employees the opportunity to apply for flexible working for a limited time period • Invited applications from employees who want to take a sabbatical • Engaged employees in taking unpaid leave • Kept redundancies to a minimum to keep skilled employees ready for the upturn

26. PROFIT IMPROVEMENT INITIATIVES Cost Saving Initiatives - Property Cost Saving Initiatives - Property • Over 40% of estate due for lease renewals or rent reviews due to rapid increase in store numbers 10 years ago • Thorntons perceived as a good quality tenant (good covenant) New leases/lease renewals • 5 year lease maximum • No more “upward only” reviews if we agree a longer lease • Monthly payments • Reduced rent (if a renewal) Rent Reviews • Nil increases (due to upward only clauses) • Monthly payments where possible

27. PROFIT IMPROVEMENT INITIATIVES Cost Saving Initiatives – Property ..(cont) Service Charges • Downward trend, Landlords acting together because they are having to pay service charges and rates on empty properties eg, Meadowhall (Sheffield) – 20% White Rose (Leeds) – 15% • Laborious process – 380 stores and over 150 Landlords but benefits next 5 years

28. OUTLOOK Thorntons is continuing to make progress despite the current market conditions. Our focus on customer service combined with our strong operational platform and cost initiatives position us well to take advantage of opportunities to improve performance in the second half of the financial year. These include: • a three week longer selling season due to a late Easter • increased selling opportunities following the closure of Woolworths • improved manufacturing productivity versus last year when we incurred higher costs due to the early Easter

29. SUMMARY • Positive like for likes every week since Christmas (except snow week) • Well positioned to emerge from current market conditions a more vibrant, efficient business • The Board has agreed a reduced dividend of 1.20 pence per share in line with underlying earnings