Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — FY2021 Earnings Presentation
50 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Mar 8, 2022
Slide 1: Our Purpose
ff Our Purpose We Enchant the World with Cheekale’ Bx LINDT & SPRUNGLI
Slide 2: Financial Year 2021
Slide 3: Agenda
Agenda 1. Financial Year 2021 in Brief 2. Market Insights & Highlights 3. Financial Results 2021 4. Sustainability — ESG 5. Outlook & Growth Agenda 6. Q&A BH LINDT & SPRUNGLI
Slide 4: Key Figures & Achievements
Key Figures & Achievements 4.59 414.2% +13.3% Group sales in CHF bn sales growth in CHF organic sales growth EBIT margin CHF 645 mn net income margin CHF 491 mn free cash flow margin CHF 586 mn 14.1% 10.7% 12.8% 58.3% equity ratio Market share Online trade Brazil / Italy gains in all key markets Acq
Slide 5: Global Chocolate Markets and Trends
Global Chocolate Markets and Trends Chocolate markets reported overall good growth in 2021 — premium segment with above-average increase * Global chocolate markets reported overall good growth - Premium segment with above-average increase in demand - Strong comeback of sales for gift-giving occasion
Slide 6: Market Insights & Highlights
“_ a Market Insights & Highlights
Slide 7: Sales Analysis: Markets
Sales Analysis: Markets Lindt & Spriingli achieves strong double-digit growth with sales of CHF 4.59 bn, corresponding to an increase of 14.2% in CHF Rest of the World CHF 0.57 bn (+19.7%) North America CHF 1.69 bn (+10.7%) Total Group sales CHF 4.59 bn (+13.3% organic) Europe CHF 2.33 bn (+13.8%) B
Slide 8: Europe: Market Split
Europe: Market Split Germany = France Total sales Europe CHF = UK 57%] altaly CH (excl. export and duty free business) Rest of Europe
Slide 9: Europe: Highlights
Europe: Highlights & Gl © i @ OY % (eS +13.8% sales growth Market share gains in all markets Sales growth in Germany (+11.0%), France (+6.0%), UK (+18.2%), Italy (430.9%), Switzerland (+13.3%), Spain & Portugal (+8.3%), Austria (+13.4%), Nordics (+12.2%) Creative marketing activities, e.g. Lindt Mas
Slide 10: North America: Market Split
North America: Market Split Market share increased in world’s most egy and | : important chocolate market largest region with 37.0% of Group sales Total sales North America CHF 1.69 bn *USA (+10.7%) & = Canada \ = Mexico LINDT & SPRUNGLI
Slide 11: North America: Highlights
North America: Highlights +10.7% sales growth Lindt USA (+16.3%), Ghirardelli (+15.6%), Russell Stover (-5.0%), Canada (+11.3%) Growth driver: Lindt Lindor and Ghirardelli Squares in wholesale market Good progress in online retail business of Lindt and Ghirardelli Increase in demand for Food Service
Slide 12: Russell Stover
Russell Stover Labor and raw material shortages lead to sales decline MM Sales: Decline of -5.0% due to reduced labor availability and raw material shortages 4 > Low single-digit sales increase with strategic customers > Sugar-free product lines with double-digit growth Labor & raw materials: Shorta
Slide 13: Rest of the World: Market Split
Rest of the World: Market Split Total sales Rest of the World CHF
Slide 14: Rest of the World: Highlights
Rest of the World: Highlights A ae) +19.7% sales growth Japan (+22.8%), China (+37.1%), South Africa (+15.1%), Brazil (+55.7%) with strong sales growth =| 70 own shops in Japan, 58 in Brazil Acquisition of remaining shares of joint venture 'y partner in Brazil Ne Covid-19: Positive growth in Austral
Slide 15: Global Retail & E-Commerce
Global Retail & E-Commerce +27.3% sales growth > 25.4% of total Group growth (12.8% of total Group sales) New, consistent shop design rolled out in over 40 stores showcasing our brand equity and our Maitre Chocolatier E-shops now operating in over 20 countries with direct delivery to consumers Despi
Slide 16: Financial Figures
Slide 17: Overview — Financial Year 2021
Overview — Financial Year 2021 Very positive development of key performance indicators Organic growth EBIT margin Net income margin —_- Free cash flow _Net debt position in % sales 9 DSM 14.1% ST, ri 13.4% \ 10.5% 8.0% 12.8% / 295 209 y, -6.1% 2020 2021 2020 2021 2020 2021 2020* 2021 2020 2021 * 202
Slide 18: Shareholder Return
Shareholder Return Continued increase in dividend, record market capitalization 2017 2018 2019 2020 Ordinary dividend reg. (CHF) 930 1,000 1,050 1,100 Special dividend (CHF) - - 700 - PF Dividend yield reg. 1.3% 1.4% 2.0% 1.2% 1.0% Payout ratio 49.5% 50.0% 83.2% 82.5% 59.3% Share buyback (CHF millio
Slide 19: Organic Sales Growth
Organic Sales Growth Organic sales growth vs 2019 at +6.4% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% Do 7% 2017 5.1% 2018 Growth rate in % (organic) 6.1% 2019 LINDT & SPRUNGLI 2021
Slide 20: Sales Growth in CHF
Sales Growth in CHF Growth in Swiss francs slightly above organic growth Absolute in CHF million (as published) 5,000 Growth rate in % (as published) 4,500 4,509 4,000 3,500 3,000 -10.9% 2,500 2017 2018 2019 2020 LINDT & SPRUNGLI 2021
Slide 21: Sales: Growth Factors
Sales: Growth Factors About 50% of growth coming from volume and 50% from price/mix Growth rate in % 16% 14% 13.3% 0.5% 13.8% as 12% 10% 8% 6% 4% 2% 0% Volume Price / Mix Organic Acquisititon Org incl. acq BH Financial Year 2021 LINDT & SPRUNGLI 0.4% Forex 14.2% Sales in CHF March 8, 2022 21
Slide 22: Sales Analysis: Segment Information
Sales Analysis: Segment Information Double-digit growth in key markets in Germany, UK, and in US (Lindt & Ghirardelli) Growth rate in % (organic) Absolute in CHF million (as published) Europe North America Rest of the World 16.0% 12.0% 25.0% 14.0% 10.0% 70.0% 12.0% 8.0% 15.0% 6.0% 10.0% ° ov o.0% 8.
Slide 23: Material Costs incl. Change in Inventories
Material Costs incl. Change in Inventories Absolute in CHF in % to sales 1,518 35.3% 33.1% 34.8% 33.1% 2017 2018 2019 2020 2021
Slide 24: 2'100 2'000 1'900 1'800 1'700 1'600 1'500
2'100 2'000 1'900 1'800 1'700 1'600 1'500
Slide 25: Personnel Expenses
Personnel Expenses 1,000 800 600 400 200 21.7% 2017 In CHF million, in % to sales 21.8% 2018 21.7% 2019 2020 986 21.5% 2021
Slide 26: Number of Employees (FTE)
Number of Employees (FTE) Average number of employees (FTE) Growth rate in % 15,000 13,000 14,135 11,000 9,000 7,000 5,000 +4.5% +4.3% 3,000 2017 2018 2019 2020 2021
Slide 27: Operating Expenses
Operating Expenses Absolute in CHF million in % to sales 1,191 24.7% 26.0% 2017 2018 2019 2020 2021
Slide 28: Depreciation and Impairments
Depreciation and Impairments Slight increase in depreciation driven by higher CAPEX Absolute in CHF million in % to sales 323 280 76% 276 277 77* 2017 2018 2019 2020 2021 Sx * Additional depreciation due to new leasing reporting LINDT & SPRUNGLI
Slide 29: Operating Profit (EBIT)
Operating Profit (EBIT) Slightly above guidance Absolute in CHF million in % to sales 14.6% 14.8% 13.2% 10.5% 2017 2018 2019 2020 2021 BH LINDT & SPRUNGLI
Slide 30: EBIT by Segment
EBIT by Segment Improvement in North America profitability despite pressure on supply chain costs EBIT in % Absolute in CHF million Europe North America Rest of the World 20.0% 9.0% 25.0% 8.0% 16.0% 7.0% 20.0% 12.0% 6.0% 15.0% 5.0% “ve 8.0% 4.0% 10.0% 3.0% 4.0% 2.0% 5.0% 1.0% 0.0% 0.0% 0.0% 2020 202
Slide 31: EBITDA
EBITDA Back to 2019 levels Absolute in CHF million in % to sales 18.9% 17.4% 100 18.7% 20.3% 2017 2018 2019 2020 2021 BH LINDT & SPRUNGLI
Slide 32: Free Cash Flow
Free Cash Flow Strong free cash flow generation driven by excellent net working capital management Absolute in CHF million in % to sales 13.4% 2017 2018 2019* 2020* 2021 *2019 and 2020 have been adjusted to include repayment of lease liabilities BH LINDT & SPRUNGLI
Slide 33: Capital Expenditure
Capital Expenditure Continued investments in growth and efficiency, although less than planned Absolute in CHF million 2017 2018 2019 2020 2021 BH LINDT & SPRUNGLI
Slide 34: Tax Rate
Tax Rate Tax rate in line with guidance (extraordinary positive impacts in 2019/2020) In % of income before taxes 30% 25% 20% 22 A% 2 1 5% 18.8% 15% 10% 5% 0% 2017 2018 2019 2020 BH Year 20: LINDT & SPRUNGLI 2021
Slide 35: Net Income
Net Income Back to pre-pandemic levels Absolute in CHF million in % to sales 11.3% 11.4% 50 11.1% 2017 2018 2019 2020 2021 BH LINDT & SPRUNGLI
Slide 36: Net Financial Position: Development
Net Financial Position: Development Slight increase only in net debt despite share buyback — mainly driven by strong free cash flow generation Absolute in CHF million Free cash flow = 586 800 1 C i} 2a Shareholder return = 697 204 } 01/01/2021 Operating cash CAPEX Dividend Share buyback flow BH LIND
Slide 37: Equity Ratio
Equity Ratio Strong balance sheet 60% 60.1% 55% 50% 2017 In % of total assets 57. B%* 58.1% 2018 2019 *2018 adjusted for leasing impact for comparability reasons LINDT & SPRUNGLI 2020 2021
Slide 38: Sustainability - ESG
Sustainability - ESG
Slide 39: Sustainability — ESG: Approach & Commitments
Sustainability — ESG: Approach & Commitments In line with our Sustainability Plan, we set new medium-term targets Environmental commitments: G2 Define a measurable target (including Scope 1, 2 & 3) “© with a goal to reach net-zero emissions in the long term, to be announced in 2023 a Meanwhile, 2% r
Slide 40: Sustainable Packaging Initiative 2025
Sustainable Packaging Initiative 2025 Five new sustainable packaging commitments to support the circular economy Source 100% of our pulp- Make at least 50% Continuously and proactively and paper-based packaging of all our packag- challenge our entire packaging 1 Ea 2 Eee 3 ee FD supply chain oF mate
Slide 41: Lindt & Sprüngli Farming Program
Lindt & Springli Farming Program
Slide 42: The Lindt & Sprüngli Farming Program
The Lindt & Spriingli Farming Program S We aim to create decent and resilient livelihoods for cocoa farmers and their families and encourage more sustainable farming practices Four pillars of the Lindt & Spriingli Farming Program implemented with ~80,000 farmers Traceability and Training and Farmer
Slide 43: Growth Agenda & Outlook
Slide 44: Mid- to Long-Term Strong Growth Ambition
Mid- to Long-Term Strong Growth Ambition le’ Growth & resilience G Mid- to long-term ambition * Strong growth in financial year 2021 * Market share gains in all key 6-8% NTS p.a. ae FurtherGaia 20-40 BP operating * Resilience and adaptability in uncertain times profit p.a. * Strong recovery from pan
Slide 45: Growth Agenda
Growth Agenda a We focus our efforts on six pillars based on a crucial foundation — our people Mid- to long-term targets 6-8% NTS growth p.a. | 20-40 BP OP growth p.a. | Employer of choice A Agile * Increase prompt adaptability * Establish an effective organizational structure + Foster entrepreneurs
Slide 46: Outlook
Outlook Lindt & Spriingli expects sales growth of 6-8% in the medium to long term * Financial Year 2022 - Organic sales growth at upper end of bandwidth 6-8% - Operating profit margin 15% * Medium to long term - Sales growth of 6-8% (previously 5-7%) expected - Continuous improvement of operating pr
Slide 47: Our Purpose
Our Purpose We Enchant the World with Cholale’ LINDT & SPRUNGLI
Slide 48: Q&A
Q&A BAO LINDT & SPRUNGLI
Slide 49: Thank you for your attention.
Thank you for your attention.
Slide 50: 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.
Chocoladefabriken Lindt & Sprüngli — FY2021 Earnings Presentation on 6ix