Tootsie Roll Industries, Inc. 2016 Annual Report

Merrill Corp - Tootsie Roll Annual Report ED | 105914 | 28-Feb-17 08:17 | 17-6862-1.ba | Sequence: 1 CHKSUM Content: 31960 Layout: 63945 Graphics: 29616 CLEAN

Corporate Profile Tootsie Roll Industries, Inc. has been engaged in the Blue Razz, Cella’s chocolate covered cherries, Dots, manufacture and sale of confectionery products for Crows, Junior Mints, Junior Caramels, Charleston 120 years. Our products are primarily sold under the Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff familiar brand names: Tootsie Roll, Tootsie Roll Pops, cotton candy, Dubble Bubble, Razzles, Cry Baby and Caramel Apple Pops, Child’s Play, Charms, Blow Pop, Nik-L-Nip. Corporate Principles We believe that the differences among companies are We invest in the latest and most productive equipment attributable to the caliber of their people, and therefore to deliver the best quality product to our customers at we strive to attract and retain superior people for each the lowest cost. job. We seek to outsource functions where appropriate and We believe that an open family atmosphere at work to vertically integrate operations where it is financially combined with professional management fosters advantageous to do so. cooperation and enables each individual to maximize his or her contribution to the Company and realize the We view our well known brands as prized assets to be corresponding rewards. aggressively advertised and promoted to each new generation of consumers. We do not jeopardize long-term growth for immediate, short-term results. We conduct business with the highest ethical standards and integrity which are codified in the We maintain a conservative financial posture in the Company’s “Code of Business Conduct and Ethics.” deployment and management of our assets.

We run a trim operation and continually strive to eliminate waste, minimize cost and implement performance improvements.

Financial Highlights December 31, 2016 2015 (in thousands except per share data)

Net Product Sales ...... $517,373 $536,692 Net Earnings Attributable to Tootsie Roll Industries, Inc...... 67,510 66,089 Working Capital ...... 235,739 221,744 Net Property, Plant and Equipment ...... 180,905 184,586 Shareholders’ Equity ...... 711,364 698,183 Average Shares Outstanding* ...... 62,239 63,256 Per Share Items* Net Earnings Attributable to Tootsie Roll Industries, Inc...... $1.08 $1.04 Cash Dividends Paid ...... 0.36 0.35

*Adjusted for stock dividends.

JOB: 17-6862-1 CYCLE#;BL#: 6; 0 TRIM: 8.5" x 11" COMPOSITE COLORS: Black, Cyan, Magenta, Yellow, ~note-color 2 GRAPHICS: Tootsie_roll_candy_logo.eps V1.5