Sweetheart Brands Acquisition

● ● ● ● Capital Structure Review – Guiding Principles Maintain prudent liquidity Prioritize investment in high-return, organic growth opportunities Selectively pursue bolt-on, tuck-in acquisitions to supplement growth Improve efficiency of capital structure Return excess capital to shareholders ● ● ● ● Target cash on hand and revolver availability equal to approximately one year of EBITDA (currently approximately $350 million) Continue investment in high-return businesses such as Carter's retail stores and eCommerce Disciplined criteria to critically evaluate opportunities Add a reasonable amount of new leverage Maintain financial flexibility Maintain favorable credit rating Target returning 50% of annual free cash flow to shareholders via dividends and share repurchases 13

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