Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2012 Earnings Presentation
36 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 21, 2012
Slide 1: Investor Presentation Half Year 2012
INVESTOR PRESENTATION HALF YEAR 2012
Slide 2: Contents
CONTENTS 1. PERFORMANCE HIGHLIGHTS HY 2012 2. ENVIRONMENT HY 2012 3. P&L & B/S DETAILS HY 2012 4. RAW MATERIALS & PACKAGING 5. OUTLOOK 2012 6. QUESTIONS & ANSWERS 2 INVESTOR PRESENTATION, HY 2012
Slide 3: Performance Highlights HY 2012
1 PERFORMANCE HIGHLIGHTS HY 2012 3 INVESTOR PRESENTATION, HY 2012
Slide 4: Performance Highlights HY 2012
PERFORMANCE HIGHLIGHTS HY 2012 CHF Mio Net Net Trade Sales 1‘033 Organic + 5.3 % Volume + 4.4 % Swiss Francs + 2.6 % EBITDA 94.9 CHF +6.6 Mio vs. p.y. + 7% EBIT 48.7 CHF +6.7 Mio vs. p.y. + 16 % NET INCOME 36.6 CHF +4.5 Mio vs. p.y. + 14 % NET LIQUIDITY 415.5 CHF -177.6 Mio vs. p.y. 4 INVESTOR
Slide 5: Key Figures
KEY FIGURES SOLID BALANCE SHEET, DECREASED NET CASH POSITION AFTER SHARE BUY BACK Equity CHF Mio Equity B/S ratio in % Net Cash Y/E CHF Mio 1'700 70.0% 500 486 68.0% 450 1'600 1'619 68.2% 66.0% 400 416 1'500 64.0% 350 1'511 64.4% 62.0% 300 1'400 60.0% 250 1'300 58.0% 200 1'200 56.0% 150 54.0% 100 1'
Slide 6: Environment HY 2012
2 ENVIRONMENT HY 2012 6 INVESTOR PRESENTATION, HY 2012
Slide 7: Environment
ENVIRONMENT ECONOMIES _ Ongoing economic uncertainties _ Austerity policy by indebted nations affecting consumers CONSUMERS _ Cautious consumer sentiment, mainly in Southern Europe _ Consumers willing to spend for quality, innovation and gifts _ Importance of promotional incentives CHOCOLATE MARKETS
Slide 8: P&L & B/S Details HY 2012
3 P&L & B/S DETAILS HY 2012 8 INVESTOR PRESENTATION, HY 2012
Slide 9: Overview – P&L & B/S Details HY 2012
OVERVIEW – P&L & B/S DETAILS HY 2012 POSITIVE SET OF RESULTS – DESPITE ONGOING NEGATIVE FX IMPACT Net Net Trade Sales EBIT Net Income CHF 1‘033 Mio CHF 48.7 Mio CHF 32.1 Mio +2.6% in CHF +5.3% in local curr. + 16.0 % + 14.0 % 1'100 40 45 48.7 1'000 1'033 36.6 1'007 42.0 38 30 32.1 900 30 800 20 23 7
Slide 10: Sales Analysis – 5 Years in Swiss Francs
SALES ANALYSIS – 5 YEARS IN SWISS FRANCS SWISS FRANCS GROWTH NEGATIVELY AFFECTED BY CURRENCIES THROUGHOUT 5 YEARS Absolute in CHF Mio Growth in CHF 1'200 2‘520 1'000 1'035 1'057 1'033 979 1'007 800 600 400 2.1% -5.4% 7.9% -4.7% 2.6% 200 2008 2009 2010 2011 2012 10 INVESTOR PRESENTATION, HY 2012
Slide 11: Sales Analysis – 5 Years in Local Currencies
SALES ANALYSIS – 5 YEARS IN LOCAL CURRENCIES STRONG ORGANIC GROWTH OF 5.3% COMPARED TO AVERAGE MARKET GROWTH IN LINDT COUNTRIES OF 3% Absolute in CHF Mio Increase in local currencies 1'200 2‘520 1'000 1'035 1'057 1'033 979 1'007 800 600 400 6.9% 0.2% 9.2% 6.1% 5.3% 200 2008 2009 2010 2011 2012 11 IN
Slide 12: Sales Analysis – Drivers
SALES ANALYSIS – DRIVERS 1H2012 SALES GROWTH DRIVEN BY VOLUME – LOW PRICE/MIX EFFECTS 6.00% 5.00% 0.9% 5.3% -2.7% 4.00% 4.4% 3.00% 2.6% 2.00% 1.00% 0.00% Volume Price/Mix Organic Forex Reported in CHF 12 INVESTOR PRESENTATION, HY 2012
Slide 13: Sales Analysis – Split of Markets
SALES ANALYSIS – SPLIT OF MARKETS TOTAL NNTS 2012: CHF 1’033 Mio – SPLIT BY KEY MARKETS 13.8% 25.7% North America 6.7% Germany Italy 5.2% France Switzerland 7.1% UK 19.5% Rest of Europe 11.3% Rest of World 10.7% 13 INVESTOR PRESENTATION, HY 2012
Slide 14: Sales Analysis – Markets
SALES ANALYSIS – MARKETS POSITIVE ORGANIC GROWTH ACCROSS ALL REGIONS Europe NAFTA Rest of World 7.0% 7.0% 9.0% 8.0% 6.0% 6.0% 7.0% 5.0% 5.0% 6.0% 4.0% 4.0% 5.0% 3.0% 3.0% 4.0% 3.0% 2.0% 2.0% 2.0% 1.0% 1.0% 1.0% 6.9% 4.0% 4.0% 5.8% 6.7% 3.1% 8.7% 0.0% 0.0% 0.0% 1H 2011 1H 2012 1H 2011 1H 2012 1H 2011
Slide 15: Material Costs Including +/- Change in Inventory
MATERIAL COSTS INCLUDING +/- CHANGE IN INVENTORY COST MARGIN CONTINUES TO DECREASE DESPITE HIGH VOLATILITY OF INPUT COSTS Absolute in CHF Mio In % of NNTS 400 375 383 371 373 350 358 354 325 300 275 250 225 35.8% 38.1% 36.2% 35.2% 34.7% 200 2008 2009 2010 2011 2012 15 INVESTOR PRESENTATION, HY 2012
Slide 16: Personnel Expenditure
PERSONNEL EXPENDITURE COST MARGIN STABILIZING AT AROUND 26.5% Personnel exp. in CHF Mio Personnel exp. in % NNTS 300 283 279 275 267 250 261 200 150 27.4% 26.7% 26.4% 26.5% 26.6% 100 2008 2009 2010 2011 2012 16 INVESTOR PRESENTATION, HY 2012
Slide 17: Headcount & NNTS / Employee
HEADCOUNT & NNTS / EMPLOYEE NUMBER OF EMPLOYEES +4.1% LEAD BY RETAIL EXPANSION – VOLUME + 4.4% Average number of employees NNTS per employee CHF (000) 7'500 7'450 7'000 7'249 7'160 6'984 6'500 6'788 6'000 5'500 5'000 4'500 4'000 143 144 151 141 139 3'500 2008 2009 2010 2011 2012 17 INVESTOR PRESENTA
Slide 18: Operating / Marketing Expenses
OPERATING / MARKETING EXPENSES CONTINUED INVESTMENT IN BRAND Absolute in CHF Mio In % of NNTS 325 318 300 307 309 301 294 275 250 225 29.7% 30.0% 30.1% 29.9% 30.0% 200 2008 2009 2010 2011 2012 18 INVESTOR PRESENTATION, HY 2012
Slide 19: Operating Profit (EBIT)
OPERATING PROFIT (EBIT) EBIT DEVELOPMENT DRIVEN BY OPERATING EFFICIENCY GAINS AND VOLUME GROWTH Absolute in CHF Mio In % of NNTS 50 49 40 42 30 34 34 20 24 10 3.2% 2.5% 3.2% 4.2% 4.7% 0 2008 2009 2010 2011 2012 19 INVESTOR PRESENTATION, HY 2012
Slide 20: Net Income
NET INCOME SOUND PROFITABILITY IN FIRST HALF 2012 Net income in CHF Mio In % of NNTS 40 37 30 32 25 20 23 19 10 2.2% 1.9% 2.3% 3.2% 3.5% 0 2008 2009 2010 2011 2012 20 INVESTOR PRESENTATION, HY 2012
Slide 21: Operating Cash Flow & CAPEX
OPERATING CASH FLOW & CAPEX OPERATING CASH FLOW MAINLY IMPACTED BY HIGHER RAW MATERIAL STOCK Operating Cash Flow in CHF Mio CAPEX in CHF Mio 400 350 369 300 250 260 200 226 228 150 159 100 50 100 61 40 42 65 0 2008 2009 2010 2011 2012 21 INVESTOR PRESENTATION, HY 2012
Slide 22: Net Cash Position – Development
NET CASH POSITION – DEVELOPMENT NET CASH POSITION REDUCED BY SHARE BUY BACK & DIVIDEND PAYMENT Net cash and net cash movement in CHF Mio 700.0 24 65 600.0 645 159 604 112 500.0 540 486 486 492 78 2 400.0 414 416 416 356 300.0 200.0 100.0 0.0 2009 2010 2011 Operating Capital CAPEX Dividend Share buy
Slide 23: Share Buy Back 2011 / 2012
SHARE BUY BACK 2011 / 2012 REPURCHASE OF SHARES AND PCS CLOSE TO COMPLETION _ Total repurchase as per August 21, 2012: CHF 307 Mio or 4.7% of total capital (corresponding to 2.7% of registered shares and 7.9% of PCs) TERMS _ Share buy-back program of maximum 5% of total share/PC capital _ Program to
Slide 24: Raw Material & Packaging
4 RAW MATERIAL & PACKAGING 24 INVESTOR PRESENTATION, HY 2012
Slide 25: Material Costs Trends 2012
MATERIAL COSTS TRENDS 2012 COCOA PRODUCTS - Terminal Market sidelined range GBP 1’600 – 1’300 - Bean Differentials - Butter Ratio OTHER RAW MATERIALS - Milk - Sugar - Hazelnuts - Almonds PACKAGING - Paper & Cardboard - Metals & Flexibles 25 INVESTOR PRESENTATION, HY 2012
Slide 26: Cocoa Crop / Grinding Balance
COCOA CROP / GRINDING BALANCE Cocoa Beans in '000 t 4'500 4'310 3'923 3'990 3'993 3'500 3'731 3'591 3'531 3'635 16.2% 2'500 5.5% Production Grindings 5.5% 42.4% Surplus/Deficit 1'500 500 24 344 -43 15.5% -132 -500 2008/09 2009/10 2010/11* 2011/12** *Estimate; ** Forecast; Source: ICCO 26 INVESTOR PR
Slide 27: Cocoa Product Prices 2008 – 2012
COCOA PRODUCT PRICES 2008 – 2012 LONDON TERMINAL BUTTER RATIO GBP / Ton Ratio Multiple 2'800 3.40 2'600 3.10 2'400 2.80 2'200 2'000 2.50 1'800 2.20 1'600 1.90 1'400 1.60 1'200 1'000 1.30 800 1.00 27 INVESTOR PRESENTATION, HY 2012
Slide 28: Nut & Almond Prices 2008 – 2012
NUT & ALMOND PRICES 2008 – 2012 USD / Ton Hazelnuts USD / Ton Almonds 10'000 7'500 9'000 7'000 6'500 8'000 6'000 7'000 5'500 6'000 5'000 5'000 4'500 4'000 4'000 28 INVESTOR PRESENTATION, HY 2012
Slide 29: Milk Prices Europe, Switzerland & World 2010 – 2012
MILK PRICES EUROPE, SWITZERLAND & WORLD 2010 – 2012 CH Price Milkpowder 26% in Euro 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 INVESTOR PRESENTATION, HY 2012
Slide 30: Sugar Prices 2008 – 2012
SUGAR PRICES 2008 – 2012 CH / EU Sugar USA West coast cane sugar prices in USD / Ton Liffe 1'500 1'400 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 INVESTOR PRESENTATION, HY 2012
Slide 31: Outlook 2012
5 OUTLOOK 2012 31 INVESTOR PRESENTATION, HY 2012
Slide 32: Outlook 2012 – Financial Guidance
OUTLOOK 2012 – FINANCIAL GUIDANCE FOCUS ON INVESTING FOR FUTURE GROWTH MARKET FOCUS 2012 _ Selective price increases in specific markets and products _ Focus on market share gains _ Participate in strategic promotional activities to grow volume _ Continue investments in newly opened subsidiaries CON
Slide 33: Mid to Long Term Financial Guidance
MID TO LONG TERM FINANCIAL GUIDANCE UNCHANGED MID- TO LONG TERM SALES AND PROFIT TARGETS Organic Growth 6 – 8 % p.a. EBIT margin + 20 to 40 basis points (*) CAPEX CHF 120 – 140 Mio Continued high cash generation (*) based on constant currencies 33 INVESTOR PRESENTATION, HY 2012
Slide 34: Questions & Answers
6 QUESTIONS & ANSWERS 34 INVESTOR PRESENTATION, HY 2012
Slide 35: 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
Slide 36: Investor Presentation Half Year 2012
INVESTOR PRESENTATION HALF YEAR 2012
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