Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Lindt & Sprüngli — Investor Presentation (2017)
27 slides from Chocoladefabriken Lindt & Spruengli's investor presentation, 2017
Slide 1: Lindt & Sprüngli Company Presentation
Lindt & Sprüngli Company Presentation Maître Chocolatier Suisse Depuis 1845
Slide 2: Agenda
Agenda 1. Who we are 2. Drivers of our business model 3. Long-term growth and key figures 4. Strategy going forward Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 2
Slide 3: 1. Who we are
1. WHO WE ARE Maître Chocolatier Suisse Depuis 1845
Slide 4: From Swiss chocolatier to global brand
From Swiss chocolatier to global brand After impressive journey Lindt is well positioned to manifest excellence in 2017 and beyond Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 4
Slide 5: Lindt & Sprüngli around the globe
Lindt & Sprüngli around the globe 12 370 24 13’500 ~ 100 Production Shops Subsidaries Employees Distributors facilities worldwide worldwide FTEs Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 5
Slide 6: Brand portfolio
Brand portfolio Key Products/ Brands Global brand > 75% of sales LINDOR EXCELLENCE SEASON PRALINES Regional brands ~ 22% of sales Local brand ~ 3% of sales Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 6
Slide 7: 2. Drivers of our business model
2. DRIVERS OF OUR BUSINESS MODEL Maître Chocolatier Suisse Depuis 1845
Slide 8: World chocolate market 2016
World chocolate market 2016 3.0% Consumer Value 5.0% By region CHF (est. 2016) 7.0% Western Europe 97 bn 36.0% North America Asia Pacific 13.0% Eastern Europe Latin America Middle East and Africa Australasia 14.0% 22.0% Source: Euromonitor & estimates Lindt & Sprüngli Group Maître Chocolatier Suisse
Slide 9: Consumption per capita / year in KG
Consumption per capita / year in KG Year in KG, 2016 / Drivers: Income, Climate, Historical Chocolate Exposure 9 8.9 8 8.1 8 7.9 7 7.7 6 6.6 5.8 5.7 5.6 5.6 5 5.4 5.3 5.2 5.1 4.8 4.6 4 3 2 1 0 Source: CHOCOSUISSE / Euromonitor Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Pres
Slide 10: Main drivers of chocolate consumption
Main drivers of chocolate consumption Income: Main Driver of Chocolate Consumption Distributi Temperature Frozen „Dry“ Frozen on „Dry“ Distribution Controlled Distribution Distribution Distribution Distribution Product PREMIUM Income per Capita ICE CREAM (MILK FAT CHOCOLATE ICE CREAM CHOCOLATE BASED
Slide 11: Largest chocolate markets
Largest chocolate markets Top 20 Chocolate Markets in the world correspond to CHF 76.8 bn consumer value (2016) 20.0 18.0 18.5 16.0 14.0 12.0 10.0 8.0 8.6 6.0 7.7 6.9 4.0 5.1 4.9 2.0 3.4 1.7 2.8 1.4 1.4 1.1 1.0 1.0 0.9 2.4 2.3 2.1 1.8 1.8 0.0 ● Lindt & Sprüngli with own organisation ● Distribution v
Slide 12: Competitive environment
Competitive environment World Market Shares 2016 14.4% Top 6: ~59% 40.6% Mars Mondelez 13.2% Nestlé Ferrero Hershey Lindt 10.0% All Others 5.1% 9.5% Source: Euromonitor & estimates 7.2% Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 12
Slide 13: Lindt business model
Lindt business model Production / Logistics Distribution Consumer ● Complexity / short runs ● Market share / space «Premium» ● High quality ingredients ● Absolute price / kg ● Smooth melting / taste ● Quality shipment ● Share of voice ● Packaging ● Packaging ● Trade margin ● Gifting ● Innovation / p
Slide 14: The Lindt Difference
The Lindt Difference Best Unique Rosting The Lindt Finishing with Finest Cocoa Ingredients and Grinding Invention Perfection beyond Cocoa Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 14
Slide 15: 3. Long-term growth & key figures
3. LONG-TERM GROWTH & KEY FIGURES Maître Chocolatier Suisse Depuis 1845
Slide 16: Sales growth of the L&S Group
Sales growth of the L&S Group Sales growth of the L&S Group 1996 - 2016 CHF million 4 000 3 901 3 500 3 653 3 385 3 000 CAGR: 7.6% 2 883 2 670 2 500 2 606 2 573 2 579 2 525 2 489 2 312 2 000 2 009 1 782 1 500 1 603 1 460 1 498 1 423 1 327 1 244 1 000 904 950 500 1996 1997 1998 1999 2000 2001 2002 20
Slide 17: EBIT growth of the L&S Group
EBIT growth of the L&S Group EBIT of the L&S Group 1996 - 2016 CHF million 600 562.5 500 518.8 474.3 400 404.1 CAGR: 9.8% 361.2 350.8 325.3 328.7 330.1 300 297.2 264.8 248.6 200 215.8 188.7 170.8 158.4 143.8 130.3 100 115.2 86.7 84.5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Slide 18: P&L statement L&S Group
P&L statement L&S Group Organic growth of +6.0% and EBIT margin increase of +20 BP fully in line with long term guidance CHF million 2015 2016 Growth in CHF Sales 3 653.3 3 900.9 +6.8% Growth in local currency +6.0% EBITDA 645.8 714.0 +10.6% Margin 17.7% 18.3% EBIT 518.8 562.5 +8.4% Margin 14.2% 14.
Slide 19: Global sales – well diversified
Global sales – well diversified Global NNTS 11.7% CHF 6.0% North America Germany 3.9 bn France 42.6% 5.3% Switzerland Italy 6.2% UK Rest of Europe 4.3% All other markets 9.8% 14.1% Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 19
Slide 20: Organic growth by segment
Organic growth by segment Strong growth in All Other and Europe 12% 10% 10.2% 8% 7.4% 6% 4% 3.4% 2% 0% EUROPE NAFTA All Other Lindt & Sprüngli Group Maître Chocolatier Suisse Depuis 1845 Company Presentation 2017 20
Slide 21: Strong balance sheet
Strong balance sheet Strong equity further strengthened Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million 60% -50 3 500 3 674 57.1% 50% 55.7% 3 490 -250 40% 3 000 30% -450 -473 20% 2 500 -650 -681 10% 2 000 0% -850 2015 2016 2015 2016 2015 2016 Lindt & Sprüngli Group
Slide 22: 4. Strategy going forward
4. STRATEGY GOING FORWARD Maître Chocolatier Suisse Depuis 1845
Slide 23: Key challenges confectionery
Key challenges confectionery Macro Seismic Operating Challenges Shifts Environment • Economic environment US, EU, BRICs • Demographics • Retail landscape / global discounters • Elections / trade barriers • Distinct consumer preferences • E-commerce consumer • FX & commodity volatility • Niche brands
Slide 24: Lindt & Sprüngli's responses
Lindt & Sprüngli‘s responses Marketing Operating Sales Excellence Efficiency • Strengthen distinctiveness • Premium at POS • Lean program in production • Innovation to meet needs & dreams • Expansion of store network • Cost synergies / savings • Focus on core franchises • Opportunities in digital ch
Slide 25: Outlook
Outlook Outlook - Summary ● Premium chocolate market to continue its positive trend ● Lindt & Sprüngli’s strong global brands and strategic business actions to result in continued market share gains ● Efficiency and cost improvement programs already in place to lead to additional cash generation ● P
Slide 26: 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.
Slide 27: Maître Chocolatier Suisse Depuis 1845
Maître Chocolatier Suisse Depuis 1845