Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — FY2014 Earnings Presentation
42 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Mar 10, 2015
Slide 1: Lindt & Sprüngli
HA LINDT & SPRUNGLI
Slide 2: Analysts' Conference 10 March 2015 – Financial Year 2014
ANALYSTS‘ CONFERENCE 10 MARCH, 2015 Financial Year 2014
Slide 3: Group Management
GROUP MANAGEMENT Dr. Dieter Weisskopf Uwe Sommer Finance, Administration, IT, Procurement, Marketing, Sales, Global Retail, Operations Markets Ernst Tanner Chairman & Group CEO Andreas Pfuger Rolf Fallegger CEO Russell Stover, N/America, MEX, AUS FR, IT, UK, PL, CZ, RU, China Financial Analysts‘ Mee
Slide 4: Extended Group Management
EXTENDED GROUP MANAGEMENT Dr. Albert lechner Kamillo Kitzmantel Thomas Linemayr DE, AT CH, Export, Duty Free USA, CA Financial Analysts‘ Meeting 10.03.2015 4
Slide 5: Agenda
AGENDA 1. Financial year 2014 2. Outlook 3. Added Information (Russell Stover) Financial Analysts‘ Meeting 10.03.2015 5
Slide 6: Key Figures – Financial Year 2014
KEY FIGURES Financial Year 2014
Slide 7: P&L Statement L&S Group
P&L STATEMENT L&S GROUP +17.4% sales growth of the Lindt & Sprüngli Group INCLUDING Russell Stover CHF million 2013 2014 Growth in CHF Sales 2 882.5 3 385.4 +17.4% EBITDA 503.3 588.0 +16.8% Margin 17.5% 17.4% EBIT 404.1 474.3 +17.4% Margin 14.0% 14.0% Net Income 303.0 342.6 +13.1% Margin 10.5% 10.1%
Slide 8: Lindt Standalone P&L Statement
LINDT STANDALONE P&L STATEMENT Full achievement of strategic growth and profit targets on a prior year comparable basis Growth Margin CHF million 2013 2014 Development in CHF Organic Sales 2 882.5 3 133.3 +8.7% +9.8% EBITDA 503.3 553.4 +10.0% +20 BP Margin 17.5% 17.7% EBIT 404.1 444.3 +9.9% +20 BP M
Slide 9: Balance Sheet
BALANCE SHEET The acquisition reduced the equity ratio and the Net Financial Position in 2014 Equity in CHF Mio. Equity B/S Ratio in % Net Financial Position in CHF Mio. 70.0% 750 3100 67.9% 724 60.0% 550 3002 350 50.0% 53.8% 2600 150 2635 40.0% -50 30.0% -250 2100 20.0% -450 10.0% -650 -844 1600 0.
Slide 10: Share Price
SHARE PRICE Creating shareholder value: +18.8% in 2014, +10.7% in 2015 so far Lindt registered share LINDT registered Since January 2015 63000 LISN CHF 63‘300.- (09.03.15) 30.12.14 - 09.03.15: +10.7% 59000 55000 51000 30.12.2014: LISN CHF 57’160 +18.8% y-o-y 31.12.2013: LISN CHF 48’100 47000 12.2013
Slide 11: Shareholder Return
SHAREHOLDER RETURN Dividend Payment + 11.5 % vs. 2013 / Payout Ratio 49.1% 1992 2011 2012 2013 2014 Dividend Reg. (CHF) 39 500 575 650 725* • From Agio 500 535 555 325 • From Retained Earnings 40 95 400 Increase (CHF) 50 75 75 75 Dividend Yield Reg. 1.4% 1.6% 1.7% 1.4% 1.3% Payout Ratio Reg. 16.9% 4
Slide 12: Sales Growth 2014 – Main Markets
SALES GROWTH 2014 – MAIN MARKETS High organic growth in main markets leading to market share gains in 2014 Switzerland (incl. Exports) 6.8% Germany 5.1% Strong Growth of Key Brands France 6.4% UK 14.7% Lindor Excellence Season Pralinés Italy 3.1% North America (excl. RS) 14.3% Financial Analysts‘ Me
Slide 13: Global Retail – Important Success Factor
GLBOBAL RETAIL IMPORTANT SUCCESS FACTOR Global network of own shops with 275 points of sale Financial Analysts‘ Meeting 10.03.2015 13
Slide 14: Sales Analysis – Markets
SALES ANALYSIS – MARKETS Of which Russell Stover 5.4% 7.0% 6.7% Total NNTS CHF 7.0% 3.385bn 36.8% ● North America incl. RS 7.7% ● Germany ● France ● CH incl. Exports ● Italy 9.9% ● Rest of the World ● Rest of Europe 11.2% ● UK 15.3% Financial Analysts‘ Meeting 10.03.2015 14
Slide 15: Sales Growth – Group
SALES GROWTH – GROUP Remarkable contribution of Russell Stover to the sales growth of the group Absolute in CHF Mio. 3 500 3 385 3 000 2 883 2 500 2 670 2 579 2 489 2 000 1 500 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 15
Slide 16: Sales Growth – Lindt Stand Alone
SALES GROWTH – LINDT STAND ALONE Accelerated organic growth on a Lindt & Sprüngli standalone basis Absolute in CHF Mio. Increase p.a. in local currencies (organic growth in %) 3 500 3 000 3 133 2 883 2 500 2 670 2 579 2 489 2 000 7.3% 6.0% 6.8% 8.6% 9.8% 1 500 2010 2011 2012 2013 2014 Financial Anal
Slide 17: Sales – Growth Factors
SALES – GROWTH FACTORS Sales growth mainly driven by volume and acquisition of Russell Stover 18% 16% 8.7% 17.4% 14% 12% 10% 0.7% 9.8% -1.1% 8% 6% 4% 9.1% 2% 0% Volume Price / Mix Organic Forex RS Sales in CHF Financial Analysts‘ Meeting 10.03.2015 17
Slide 18: Organic Growth by Region
ORGANIC GROWTH BY REGION L&S in Europe +6.5% L&S in NAFTA +14.3% 7% 14% 14.3% 6% 6.4% 12% 5% 5.1% 10% 4% 8% 3% 3.1% 6% 2.8% 2% 4% 1% 2% 0% 0% CH Dom GER FRA ITA NAFTA (excl. RS) Financial Analysts‘ Meeting 10.03.2015 18
Slide 19: Material Costs
MATERIAL COSTS Material costs including changes in inventories increased by 360 BP – raw material prices Absolute in CHF Mio. In % Sales 1 400 1 200 1227.9 1 000 940.0 940.0 943.2 800 892.4 600 400 200 36.4% 35.9% 35.2% 32.7% 36.3% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 19
Slide 20: Number of Employees (FTE's)
NUMBER OF EMPLOYEES (FTE‘S) Increase by 1 763 employees driven by RS and further expansion in production & retail (*) Average number of employees 11 000 10 000 10 712 9 000 8 949 8 000 8 157 7 000 7 572 7 779 6 000 5 000 4 000 3 000 2010 2011 2012 2013 2014 (*) Increase of 610 FTE‘s on a L&S stand a
Slide 21: Personnel Expenses
PERSONNEL EXPENSES Decrease in the expense ratio to lowest level due to Russell Stover and efficiency gains in CHF Mio. in % Sales 800 719.5 600 654.7 599.6 564.7 540.5 400 200 21.9% 21.7% 22.5% 22.7% 21.2% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 21
Slide 22: Operating Expenses
OPERATING EXPENSES Continued good support of marketing investments in 2014 Absolute in CHF Mio. in % Sales 800 794.9 815.1 707.9 600 663.9 644.1 400 200 25.7% 25.9% 26.5% 27.6% 26.0% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 22
Slide 23: EBITDA
EBITDA Absolute increase by +16.9% Absolute in CHF Mio. in % Sales 600 588.0 500 503.3 400 423.3 422.0 435.9 300 200 100 16.4% 17.0% 16.3% 17.5% 17.4% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 23
Slide 24: Capital Investments
CAPITAL INVESTMENTS Increase to keep pace with high volume growth Absolute in CHF Mio. 240 234.6 200 191.4 160 144.6 120 104.2 80 88.6 40 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 24
Slide 25: Depreciation and Impairments
DEPRECIATION AND IMPAIRMENTS Depretiation to sales ratio remained stable despite higher investments/ impairment Absolute in CHF Mio. in % Sales 120 113.7 100 105.8 98.0 99.2 93.2 80 60 40 20 3.8% 3.7% 4.0% 3.4% 3.4% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 25
Slide 26: Operating Profit (EBIT)
OPERATING PROFIT (EBIT) EBIT Margin 14.0% includes all one-offs from the RS acquisition Absolute in CHF Mio. in % Sales 474.3 400 404.1 300 325.3 328.7 330.1 200 100 12.6% 13.2% 12.4% 14.0% 14.0% (*) 0 2010 2011 2012 2013 2014 (*) L&S standalone: EBIT Margin 14.2% Financial Analysts‘ Meeting 10.03.2
Slide 27: Tax Rate
TAX RATE Significant increase in 2014 due to fully utilized tax loss carry forwards in the US in % of income before taxes 30% 27.5% 25.3% 25.0% 25.6% 24.5% 20% 10% 0% 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 27
Slide 28: Net Income
NET INCOME Net Income Margin 10.1% includes all one-offs from the RS acquisition Absolute in CHF Mio. in % Sales 350 342.6 300 303.0 250 241.9 246.5 244.9 200 150 100 50 9.4% 9.9% 9.2% 10.5% 10.1% 0 2010 2011 2012 2013 2014 Financial Analysts‘ Meeting 10.03.2015 28
Slide 29: Net Financial Position – Development
NET FINANCIAL POSITION – DEVELOPMENT The acquisition of RS financed via own funds and the issuance of bonds Net Cash in CHF Mio. 1 500 73 1 000 -235 308 -148 -89 500 724 543 0 -500 -844 -1475 -2 -1 000 2012 2013 Operating Capital CAPEX Dividend Share buy RS CTA / 2014 Cash Flow Increase back & Other
Slide 30: Outlook
BHA LINDT & SPRUNGLI
Slide 31: Outlook Environment 2015
OUTLOOK ENVIRONMENT 2015 Ongoing challenging general conditions ● Positive economic outlook in North America ● Subdued consumer sentiment in Europe ● Transaction / Translation impact from SNB decision ● Continued challenge from unchanged high raw material prices ● Trade partners competing on price l
Slide 32: Russell Stover
BHA LINDT & SPRUNGLI
Slide 33: Acquisition Russell Stover – July 2014
ACQUISITION RUSSELL STOVER July 2014 Financial Analysts‘ Meeting 10.03.2015 33
Slide 34: Russell Stover: Facts and Figures
RUSSELL STOVER: FACTS AND FIGURES Headqartrer Kansas City, Missouri Employees 2800 4 Factories 2 in Kansas, 1 Texas, 1 Colorado Brands Russell Stover, Whitman‘s, Pangburn‘s Founded Russell Stover 1923, Whitman‘s 1842 (integrated in 1993) Sales ~ USD 500 million per year Financial Analysts‘ Meeting 1
Slide 35: Premium Segment in the USA
PREMIUM SEGMENT IN THE USA 1989 Commissioning of the LINDT factory in Stratham, NH 1992 Sales in N/America: CHF 30 million PREMIUM SEGMENT 1995 Establishment of an own LINDT shop concept to build on brand awareness 1998 Strategic acquisition of Ghirardelli LINDT / Ghirardelli 2006 N/America: Most im
Slide 36: Russell Stover: No.1 for Gifting Chocolate in America
RUSSELL STOVER: NO.1 FOR GIFTING CHOCOLATE IN AMERICA 1923 Clara und Russell Stover The couple begins to produce „Mrs. Stover‘s Bungalow Candies“ in the basement of their house in Denver. Just a few month later they open their first store. Russell Stover Headquarter in Kansas City, Missouri 1960 199
Slide 37: Acquisition Russell Stover
ACQUISITION RUSSELL STOVER • Biggest and most important strategic acquisition in the company‘s history • Russell Stover optimally complements the brand and product portfolio of Lindt & Sprüngli USA • Lindt & Sprüngli is third biggest chocolate manufacturer in the N/American overall chocolate market
Slide 38: Four New Production Sites
FOUR NEW PRODUCTION SITES Russell Stover Factory in Iola, Kansas Russell Stover Factory in Corsicana, Texas Russell Stover Factory in Abilene, Kansas Russell Stover Factory in Montrose, Colorado Financial Analysts‘ Meeting 10.03.2015 38
Slide 39: Popular Household Brands
POPULAR HOUSEHOLD BRANDS Russell Stover, Whitman’s and Pangburn’s brands hold The «Millionaire$» pralines a market share of more of Pangburn’s are famous than 50% in the for their delicate recipes segment of chocolate with milk chocolate, pecan, hearts. caramel and a touch of honey. They were create
Slide 40: Brand Portfolio
BRAND PORTFOLIO GLOBAL BRANDS > 75% of sales Key Products/ Brands LINDOR EXCELLENCE SAISON PRALINES REGIONAL BRANDS ~ 22% of sales LOCAL BRANDS ~ 3% of sales Financial Analysts‘ Meeting 10.03.2015 40
Slide 41: Financial Analysts' Meeting / March 10, 2015
Financial Analysts‘Meeting / March 10, 2015
Slide 42: Disclaimer
DISCLAIMER This presentation contains forward looking statements which reflect Management‘s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
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