Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Lindt & Sprüngli — H1 2008 Earnings Presentation
30 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 26, 2008
Slide 1: Lindt & Sprüngli Half-Year Results 2008
Lindt & Sprüngli LINDT & SPRÜNGLI Half-Year Results 2008 1 HALF YEAR RESULTS 2008
Slide 2: P&L Highlights
LINDT & SPRÜNGLI Half-Year Results 2008 P&L Highlights 2 HALF YEAR RESULTS 2008
Slide 3: HY Results 2008 – Introduction
HY Results 2008 – Introduction LINDT LINDT&&SPRÜNGLI SPRÜNGLI EXTRAORDINARY ENVIRONMENT: General factors • Input cost inflation – raw materials, packaging & fuel/energy • Credit crunch – loss of ‘feel good factor’ (esp. USA) • Forex transaction / 5% sales deduction / USD weakness Confectionery facto
Slide 4: HY Results 2008 – Highlights P&L
HY Results 2008 – Highlights P&L LINDT LINDT&&SPRÜNGLI SPRÜNGLI CHF m Increase vs. HY 2007 NET TRADE 1.171,5 2,9% SALES (CHF) NTS* ORGANIC 1.171,5 7,9% EBIT 33,6 11,6% EBITDA 80,2 6,2% NET INCOME 22,9 4,6% * NTS = Net Trade Sales 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 4 HALF YEAR RESULTS 2008
Slide 5: Half-Year Results 2008 (Jan – Jun) Highlights
Half-Year Results 2008 (Jan – Jun) Highlights LINDT LINDT&&SPRÜNGLI SPRÜNGLI Net Trade Sales* EBIT Net Income (CHF m) (CHF m) (CHF m) CHF + 33,3 m CHF + 3,5 m CHF + 1,0 m 1.200 35 25 33,6 1.171,5 22,9 1.150 21,9 30 20 1.138,2 30,1 1.100 25 15 1.050 - 10.3 - 13.4 1.000 20 10 2007 2008 2007 2008 2007
Slide 6: Consolidated NTS – Growth in CHF
Consolidated NTS – Growth in CHF LINDT LINDT&&SPRÜNGLI SPRÜNGLI absolute in CHF millions increase vs. previous year in % of CHF 1.200 1.171,5 1.138,2 800 983,4 839,1 778,0 400 15.6% 8.9% 17.2% 15.7% 2.9% 0 2004 FER 2005 FER 2006 IFRS 2007 IFRS 2008 IFRS 6 HALF YEAR RESULTS 2008
Slide 7: Consolidated NTS – Organic Growth
Consolidated NTS – Organic Growth LINDT LINDT&&SPRÜNGLI SPRÜNGLI absolute in CHF millions increase vs. previous year in local currencies 1.200 1.171,5 1.138,2 800 983,4 839,1 778,0 400 12.1% 10.4% 14.8% 13.5% 7.9% 0 2004 FER 2005 IFRS 2006 IFRS 2007 IFRS 2008 IFRS 7 HALF YEAR RESULTS 2008
Slide 8: Details of Sales Performance
Details of Sales Performance LINDT LINDT&&SPRÜNGLI SPRÜNGLI Split NTS peformance in its parameters (January – June 2008) 8,0% Mix 0,1% 6,0% Volume +15.7% 4,3 % - 5,0% 7,9% 4,0% Price 2,0% 3,5% + 2,9% 0,0% Organic Growth Split Currency CHF as published 8 HALF YEAR RESULTS 2008
Slide 9: Peer Group Comparison – Seasonality
Peer Group Comparison – Seasonality LINDT LINDT&&SPRÜNGLI SPRÜNGLI First-Half Sales 07 Second-Half Sales 07 100% 80% 56,7% 55,4% 54,3% 61,4% 60% 40% 20% 43,3% 44,6% 45,7% 38,6% 0% Lindt C ompetitor 1 C ompetitor 2 C ompetitor 3 9 HALF YEAR RESULTS 2008
Slide 10: Net Trade Sales Split by Market 2008
Net Trade Sales Split by Market 2008 LINDT & SPRÜNGLI Total (January – June) 2008: 1.171,5 CHF million 7% 13% Switzerland / Export 16% Germany France 20% Italy UK 8% Rest of Europe 6% USA Others 14% 16% 10 HALF YEAR RESULTS 2008
Slide 11: Sales Development by Market HY 08 vs. 07
Sales Development by Market HY 08 vs. 07 (local currencies) LINDT & SPRÜNGLI 25,0% 28,7% 35,7% 20,0% 20,6% 15,0% 15,1% 14,4% 13,6% 10,0% 10,2% 9,4% 7,9% 7,4% 6,3% 5,0% 2,2% 0,9% 0,0% Total CH & D F I AUT U.K. E POL SWE CAN AUS USA Group Export 11 HALF YEAR RESULTS 2008
Slide 12: H1 2008 Organic Growth in Context
H1 2008 Organic Growth in Context LINDT LINDT&&SPRÜNGLI SPRÜNGLI Organic sales growth Full-Year Consolidated NTS Growth CHF bn Sub-Prime Crisis 15,0% 3,0 12,5% 10,0% Dot-Com Asian Crisis Recession 2,0 7,5% 5,0% 1,0 2,5% 0,0% 0,0 FY FY FY FY FY FY FY FY FY FY FY FY '96 '97 '98 '99 '00 '01 '02 '03 '04
Slide 13: Material costs
Material costs LINDT LINDT&&SPRÜNGLI SPRÜNGLI absolute in CHF millions and in % of NTS 400 388,3 300 363,7 313,4 200 100 31,9% 32,0% 33,1% 0 2006 2007 2008 13 HALF YEAR RESULTS 2008
Slide 14: Personnel Expenses
Personnel Expenses LINDT & SPRÜNGLI absolute in CHF millions and in % of NTS 300 283,1 283,8 200 244,1 100 24,8% 24,9% 24,2% 0 2006 2007 2008 14 HALF YEAR RESULTS 2008
Slide 15: Headcount and NTS per Employee
Headcount and NTS per Employee LINDT & SPRÜNGLI Average number of employees and NTS per employee in CHF ('000) 7'500 7'000 6'500 7.249 6'000 6.804 6.397 5'500 5'000 4'500 4'000 154 167 162 3'500 2006 2007 2008 15 HALF YEAR RESULTS 2008
Slide 16: Operating/Marketing Expenses
Operating/Marketing Expenses LINDT & SPRÜNGLI absolute in CHF millions and in % of NTS 500 400 443,7 434,7 300 374,6 200 100 38,1% 38,1% 37,9% 0 2006 2007 2008 16 HALF YEAR RESULTS 2008
Slide 17: Depreciation
Depreciation LINDT & SPRÜNGLI absolute in CHF millions and in % of NTS 50 40 46,6 45,4 30 42,4 20 10 4,3% 4,0% 4,0% 0 2006 2007 2008 17 HALF YEAR RESULTS 2008
Slide 18: Operating Profit (EBIT)
Operating Profit (EBIT) LINDT & SPRÜNGLI absolute in CHF millions and in % of NTS 35 30 33,6 25 30,1 20 15 10 15,5 5 1,6% 2,6% 2,9% 0 2006 2007 2008 18 HALF YEAR RESULTS 2008
Slide 19: Net Income
Net Income LINDT & SPRÜNGLI absolute in CHF millions and in % of NTS 24 20 22,9 21,9 16 12 8 9,9 4 1,0% 1,9% 2,0% 0 2006 2007 2008 19 HALF YEAR RESULTS 2008
Slide 20: Consolidated BS 30.06.08 vs. 31.12.07
Consolidated BS 30.06.08 vs. 31.12.07 LINDT & SPRÜNGLI Assets Liabilities (CHF millions) (CHF millions) 30.06.2008 31.12.2007 30.06.2008 31.12.2007 2'600 2'600 2'400 2'400 2'200 2'200 2'000 870 2'000 1'800 1'800 1.389 1'600 887 1'600 1'400 442 1'400 1.309 1'200 1'200 1'000 1'000 222 487 800 800 930
Slide 21: HY Results 2008 – Summary
HY Results 2008 – Summary LINDT LINDT&&SPRÜNGLI SPRÜNGLI Constellation of Extraordinary Factors • General factors: Input costs, Credit crunch, Currency effects • Confectionery factor: Early Easter • Lindt factors: High seasonality, USD imports, Tough compa- rison, Delayed price increases Unchanged T
Slide 22: Material Costs
LINDT & SPRÜNGLI Material Costs 22 HALF YEAR RESULTS 2008
Slide 23: Cocoa Price Development (92-08)
L&T Cocoa Price Development (92-08) 2nd position LIFFE (GBP/Ton) LINDT & SPRÜNGLI 05 23 HALF YEAR RESULTS 2008
Slide 24: Cocoa Butter Ratio + Sugar Development 2003 – 2008
Cocoa Butter Ratio + Sugar Development 2003 – 2008 LINDT & SPRÜNGLI Cocoa Butter Ratio 3.5 Ratio multiple 3 2.5 2 1.5 J03 A J O J04 A J O J05 A J O J06 A J O J07 A J O J08 A J Sugar 140 CHF/kg 120 100 80 J03 A J O J04 A J O J05 A J O J06 A J O J07 A J O J08 A J 24 HALF YEAR RESULTS 2008
Slide 25: Hazelnut Price Development 2003 – 2008
Hazelnut Price Development 2003 – 2008 (Roman Quality) LINDT & SPRÜNGLI Hazelnuts Roman 1600 1400 1200 CHF/100 kg 1000 800 600 400 200 0 J03 A J O J04 A J O J05 A J O J06 A J O J07 A J O J08 A J 25 HALF YEAR RESULTS 2008
Slide 26: Expected Material Cost Trends 2008 and beyond
Expected Material Cost Trends 2008 and beyond LINDT & SPRÜNGLI • Cocoa Beans: ??????: Fundamentals / Currencies / Commodities / Fi- nancial players • Cocoa Butter: Sustained high ratio: a) Good Demand, b) Stocks low in butter and high in powder • Milk Powder: Downwards trend: Higher production EU/US
Slide 27: Outlook 2008 and beyond
LINDT & SPRÜNGLI Outlook 2008 and beyond 27 HALF YEAR RESULTS 2008
Slide 28: Outlook 2008 Full-Year Guidance 2008
Outlook 2008 LINDT & SPRÜNGLI Full-Year Guidance 2008 • Net Sales Organic: increase of 8-10% • Operating Profit Margin: improvement ca. 20 BP • Net Financial Result: at the level of 2007 • Tax Rate: improvement vs. 2007 • Investments: > 200 million 28 HALF YEAR RESULTS 2008
Slide 29: Outlook 2009 Relevant Factors 2009
Outlook 2009 LINDT & SPRÜNGLI Relevant Factors 2009 • „Normal“ Easter season to benefit H1 and FY 2009 • 2008 price increases to benefit H1 and FY 2009 • US production of chocolate tablets as from Q4, 2009 • Further price increases may be required, depending on Cocoa price development over coming mo
Slide 30: Thank You For Your Attention
LINDT & SPRÜNGLI THANK YOU FOR YOUR ATTENTION QUESTION AND ANSWER SESSION 30 HALF YEAR RESULTS 2008