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Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2013 Earnings Presentation

35 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 20, 2013

  1. Slide 1: Investor Presentation Half Year 2013

    INVESTOR PRESENTATION HALF YEAR 2013

  2. Slide 2: Contents

    CONTENTS 1. PERFORMANCE HIGHLIGHTS HY 2013 2. ENVIRONMENT HY 2013 3. P&L & B/S DETAILS HY 2013 4. RAW MATERIALS & PACKAGING 5. OUTLOOK 6. QUESTIONS & ANSWERS 2 1H2013 - Investor Presentation - 20.8.2013

  3. Slide 3: Performance Highlights HY 2013

    1 PERFORMANCE HIGHLIGHTS HY 2013 3 1H2013 - Investor Presentation - 20.8.2013

  4. Slide 4: Performance Highlights HY 2013

    PERFORMANCE HIGHLIGHTS HY 2013 CHF Mio Net Net Trade Sales 1‘132  Organic + 8.7%  Swiss Francs + 9.6% EBITDA 114.0 CHF +21.7 Mio vs. p.y.* + 23.5%* EBIT 65.5 CHF +19.4 Mio vs. p.y.* + 42.1%* NET INCOME 48.8 CHF +14.0 Mio vs. p.y.* + 40.2%* NET LIQUIDITY 628.1 CHF +85.1 Mio vs. 31.12.2012 * Increas

  5. Slide 5: Key Figures

    KEY FIGURES STRONG INCREASE OF EQUITY SUPPORTED BY IMPLEMENTATION OF IAS19 REVISED / IFRIC 14 Equity CHF Mio Equity B/S ratio in % Net Cash CHF Mio 2'300 70.0% 650 2'200 2'268 69.2% 600 628 68.0% 2'100 550 2'000 66.0% 543 500 1'900 64.0% 450 64.2% 1'800 62.0% 400 1'700 350 1'694 60.0% 1'600 300 1'50

  6. Slide 6: Reorganisation of Foundations / Impact of IFRIC 14

    REORGANISATION OF FOUNDATIONS / IMPACT OF IFRIC 14 REORGANISATION OF FOUNDATIONS _ Establishment of three new foundations _ Employer Fund _ Chocolate Centre _ Cocoa Foundation _ Transfer of assets from “Fonds für Pensionsergänzungen” to new foundations in March 2013 _ Chocolate Centre and Cocoa Foun

  7. Slide 7: Environment HY 2013

    2 ENVIRONMENT HY 2013 7 1H2013 - Investor Presentation - 20.8.2013

  8. Slide 8: Environment

    ENVIRONMENT ECONOMIES _ General reduction of economic uncertainties _ Positive economic signals in North America CONSUMERS _ Signs of recovery of consumer spending in NAFTA _ Generally positive consumer sentiment in Northern Europe _ Continued weaker environment in Southern Europe _ Consumers ready

  9. Slide 9: P&L & B/S Details HY 2013

    3 P&L & B/S DETAILS HY 2013 9 1H2013 - Investor Presentation - 20.8.2013

  10. Slide 10: Overview – P&L & B/S Details HY 2013

    OVERVIEW – P&L & B/S DETAILS HY 2013 STRONG PROFIT IMPROVEMENT FOLLOWING GOOD SALES GROWTH Net Net Trade Sales EBIT Net Income CHF 1‘132 Mio CHF 65.5 Mio CHF 48.8 Mio +9.6% in CHF + 42.1 % + 40.2 % +8.7% in local curr. 1'200 50 68 48.8 1'100 60 65.5 1'132 40 53 1'000 1'033 45 34.8 46.1 30 900 38 800

  11. Slide 11: Sales Analysis – 5 Years in Swiss Francs

    SALES ANALYSIS – 5 YEARS IN SWISS FRANCS EXCELLENT GROWTH IN SWISS FRANCS - FIRST TIME IN 5 YEARS POSITIVE FX EFFECT Absolute in CHF Mio Growth in CHF 1'200 1'132 1'000 1'057 1'033 979 1'007 800 600 400 -5.4% 7.9% -4.7% 2.6% 9.6% 200 2009 2010 2011 2012 2013 11 1H2013 - Investor Presentation - 20.8.

  12. Slide 12: Sales Analysis – 5 Years in Local Currencies

    SALES ANALYSIS – 5 YEARS IN LOCAL CURRENCIES ORGANIC GROWTH LEADING TO MARKET SHARE GAINS IN ALL MARKETS Absolute in CHF Mio In local currencies 2‘520 1'200 1'132 1'000 1'041 989 932 800 853 600 400 0.2% 9.2% 6.1% 5.3% 8.7% 200 2009 2010 2011 2012 2013 12 1H2013 - Investor Presentation - 20.8.2013

  13. Slide 13: Sales Analysis – Drivers

    SALES ANALYSIS – DRIVERS 1H2013 SALES GROWTH DRIVEN BY VOLUME – LOW PRICE/MIX EFFECTS 10.0% 9.0% 0.9% 9.6% 0.8% 8.7% 8.0% 7.9% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Volume Price/Mix Organic Forex Reported in CHF 13 1H2013 - Investor Presentation - 20.8.2013

  14. Slide 14: Sales Analysis – Split of Markets

    SALES ANALYSIS – SPLIT OF MARKETS TOTAL NNTS 2013: CHF 1’132 Mio – BIGGEST MARKET “NAFTA” 8.4% 6.7% North America (NAFTA) 26.6% Germany 5.5% Switzerland incl. Export France 9.7% Italy UK 11.5% 19.6% Rest of Europe Rest of World 12.0% 14 1H2013 - Investor Presentation - 20.8.2013

  15. Slide 15: Sales Analysis – Markets

    SALES ANALYSIS – MARKETS ACCELERATING ORGANIC GROWTH ACCROSS ALL REGIONS Europe NAFTA Rest of World 10.0% 16.0% 16.0% 8.0% 12.0% 12.0% 6.0% 8.0% 8.0% 4.0% 4.0% 4.0% 2.0% 4.0% 3.8% 5.8% 6.7% 12.7% 9.5% 14.1% 0.0% 0.0% 0.0% 1H 2012 1H 2013 1H 2012 1H 2013 1H 2012 1H 2013 15 1H2013 - Investor Presentat

  16. Slide 16: Material Costs Including +/- Change in Inventory

    MATERIAL COSTS INCLUDING +/- CHANGE IN INVENTORY CONTINUED DECREASE OF COST MARGIN – DUE TO LOWER COCOA PRODUCT COSTS Absolute in CHF Mio In % of NNTS 400 375 383 379 373 350 358 354 325 300 275 250 225 38.1% 36.2% 35.2% 34.7% 33.4% 200 2009 2010 2011 2012 2013 16 1H2013 - Investor Presentation - 20

  17. Slide 17: Personnel Expenditure

    PERSONNEL EXPENDITURE COST MARGIN STABILIZING AT AROUND 27.0% Personnel exp. in CHF Mio Personnel exp. in % NNTS 350 300 306 279 277 250 261 267 200 150 26.7% 26.4% 26.5% 26.8% 27.0% 100 2009 2010 2011 2012 2013 2012 comparatives restated (see Slide 34) 17 1H2013 - Investor Presentation - 20.8.2013

  18. Slide 18: Headcount & NNTS / Employee

    HEADCOUNT & NNTS / EMPLOYEE NUMBER OF EMPLOYEES +9.9% – VOLUME + 7.9% Average number of employees NNTS per employee CHF (000) 8'500 8'000 8'187 7'500 7'450 7'000 7'160 6'984 6'500 6'788 6'000 5'500 5'000 4'500 4'000 144 151 141 139 138 3'500 2009 2010 2011 2012 2013 18 1H2013 - Investor Presentation

  19. Slide 19: Operating / Marketing Expenses

    OPERATING / MARKETING EXPENSES CONTINUED INVESTMENT IN BRAND Absolute in CHF Mio In % of NNTS 350 338 325 318 300 309 301 294 275 250 225 30.0% 30.1% 29.9% 30.0% 29.8% 200 2009 2010 2011 2012 2013 19 1H2013 - Investor Presentation - 20.8.2013

  20. Slide 20: Operating Profit (EBIT)

    OPERATING PROFIT (EBIT) EBIT DEVELOPMENT DRIVEN BY OPERATING EFFICIENCY GAINS AND VOLUME GROWTH Absolute in CHF Mio In % of NNTS 70 60 66 50 40 46 42 30 34 20 24 10 2.5% 3.2% 4.2% 4.5% 5.8% 0 2009 2010 2011 2012 2013 2012 comparatives restated (see Slide 34) 20 1H2013 - Investor Presentation - 20.8.

  21. Slide 21: Net Income

    NET INCOME SOUND PROFITABILITY IN FIRST HALF 2013 Net income in CHF Mio In % of NNTS 50 49 40 35 30 32 25 20 19 10 1.9% 2.3% 3.2% 3.4% 4.3% 0 2009 2010 2011 2012 2013 2012 comparatives restated (see Slide 34) 21 1H2013 - Investor Presentation - 20.8.2013

  22. Slide 22: Operating Cash Flow & CAPEX

    OPERATING CASH FLOW & CAPEX OPERATING CASH FLOW IMPACTED BY HIGHER RAW MATERIAL INVENTORY / CAPEX REFLECTING CAPACITY BUILD-UP Operating Cash Flow in CHF Mio CAPEX in CHF Mio 400 350 369 300 250 200 226 228 211 150 159 100 50 61 40 42 65 84 0 2009 2010 2011 2012 2013 22 1H2013 - Investor Presentatio

  23. Slide 23: Net Cash Position – Development

    NET CASH POSITION – DEVELOPMENT NET CASH POSITION INCREASED VS. YEAR END BY 85 MIO DESPITE DIVIDEND PAYMENT & HIGH CAPEX Net cash and net cash movement in CHF Mio 900.0 800.0 87 84 700.0 754 757 130 211 1 600.0 627 628 628 500.0 540 543 543 486 400.0 300.0 200.0 100.0 0.0 FY201 FY2011 FY2012 Operati

  24. Slide 24: IAS 19 Revised – No Impact on Operating Cash Flow

    IAS 19 REVISED IMPACT ON RESTATEMENT ACTUAL 2012 BALANCE SHEET (in CHF Mio) 1.1.2012 31.12.2012 Net Pension Liability 1) +39.2 +41.8 Deferred tax assets +7.3 +9.1 Equity -31.9 -32.7 1) Abolition of corridor method INCOME STATEMENT (in CHF Mio) HY 2012 FY 2012 Personnel expenses -2.6 -32.4 Taxes 0.8

  25. Slide 25: Raw Material & Packaging

    4 RAW MATERIAL & PACKAGING 25 1H2013 - Investor Presentation - 20.8.2013

  26. Slide 26: Cocoa Crop / Grinding Balance

    COCOA CROP / GRINDING BALANCE Cocoa Beans in '000 t 5'000 4'500 4'315 4'079 3'938 3'953 3'966 3'987 4'000 3'731 3'635 3'500 16.2% 3'000 2'500 5.5% Production 2'000 5.5% 42.4% Grindings Surplus/Deficit 1'500 1'000 500 334 85 - 15.5% -132 -61 -500 2009/10 2010/11 2011/12* 2012/13** *Estimate; ** Forec

  27. Slide 27: Cocoa Product Prices 2009 – 2013

    COCOA PRODUCT PRICES 2009 – 2013 LONDON TERMINAL BUTTER RATIO GBP / Ton 2'800 2.80 2'600 2.50 2'400 2'200 2.20 2'000 1'800 1.90 1'600 1'400 1.60 1'200 1'000 1.30 800 1.00 27 1H2013 - Investor Presentation - 20.8.2013

  28. Slide 28: Nut & Almond Prices 2009 - 2013

    NUT & ALMOND PRICES 2009 - 2013 USD / Ton Hazelnuts USD / Ton Almonds 10'000 9'000 8'500 9'000 8'000 7'500 8'000 7'000 7'000 6'500 6'000 6'000 5'500 5'000 5'000 4'500 4'000 4'000 28 1H2013 - Investor Presentation - 20.8.2013

  29. Slide 29: Milk Prices Europe, Switzerland & World 2010 – 2013

    MILK PRICES EUROPE, SWITZERLAND & WORLD 2010 – 2013 Price Milkpowder 26% in Euro CH EU World 5'750 5'500 5'250 5'000 4'750 4'500 4'250 EUR / Ton 4'000 3'750 3'500 3'250 3'000 2'750 2'500 2'250 2'000 Source: VWD-Data, BLW Referenzpreise 29 1H2013 - Investor Presentation - 20.8.2013

  30. Slide 30: Sugar Prices 2009 – 2013

    SUGAR PRICES 2009 – 2013 Sugar prices in USD / Ton CH / EU 1'500 USA West coast beat sugar 1'400 Liffe 1'300 1'200 1'100 1'000 USD / Ton 900 800 700 600 500 400 300 200 Sources: CH/EU: Market Offers, USA: Milling&Baking News, White Sugar London, Forex: VWD-Data 30 1H2013 - Investor Presentation - 20

  31. Slide 31: Outlook 2013

    5 OUTLOOK 2013 31 1H2013 - Investor Presentation - 20.8.2013

  32. Slide 32: Outlook 2013 – Financial Guidance

    OUTLOOK 2013 – FINANCIAL GUIDANCE INVESTING FOR FUTURE GROWTH MARKET FOCUS 2013 _ Strong market share gains accross all countries _ Build on good growth trend in all markets _ Launch of innovative product range „Hello“ and new seasonal product _ Focus behind Key Franchises Lindor, Excellence & Seaso

  33. Slide 33: Mid to Long Term Financial Guidance

    MID TO LONG TERM FINANCIAL GUIDANCE UNCHANGED MID- TO LONG TERM FULL YEAR SALES AND PROFIT TARGETS Organic Growth 6 – 8 % p.a. EBIT margin + 20 to 40 basis points (*) CAPEX 2013 CHF > 200 Mio Continued high cash generation (*) based on constant currencies and reported p.y. figures e.g. before re-sta

  34. Slide 34: Disclaimer

    DISCLAIMER This presentation contains forward looking statements which reflect management‘s current views and estimates. The forward looking statements involve risks and uncertainties that could cause actual results to differ from those expressed in the forward looking statements. Potential risks an

  35. Slide 35: Questions & Answers

    6 QUESTIONS & ANSWERS 35 1H2013 - Investor Presentation - 20.8.2013

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