Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Lindt & Sprüngli — H1 2009 Earnings Presentation
29 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 25, 2009
Slide 1: Lindt & Sprüngli Half-Year Results 2009
Lindt & Sprüngli LINDT & SPRÜNGLI Half-Year Results 2009 1 HALF YEAR RESULTS 2009
Slide 2: Introduction
LINDT & SPRÜNGLI Half-Year Results 2009 Introduction 2 HALF YEAR RESULTS 2009
Slide 3: HY Results 2009 – Introduction: Environment
HY Results 2009 – Introduction LINDT LINDT&&SPRÜNGLI SPRÜNGLI ENVIRONMENT HY 2009: General factors • Consumers: Increasingly signs of gain in confidence in most markets • Trade: End of de-stocking / Still prudent purchasing / Discounters • Input costs: Substantial increase of Cocoa prices • Forex: S
Slide 4: Lindt Achievements HY 2009
HY Results 2009 – Introduction LINDT LINDT&&SPRÜNGLI SPRÜNGLI LINDT ACHIEVEMENTS HY 2009: SALES & PROFITS • Sales development fully in line with guidance March 2009 • EBIT & Net Income before & after non-recurring charges - fully in line with guidance March 2009 • Market share gains in most markets
Slide 5: Implementation of New Sales Definition
HY Results 2009 – Introduction LINDT LINDT&&SPRÜNGLI SPRÜNGLI Implementation New Sales Definition for HY 09: • Payments to the trade are reported as deduction from sales. These expenses have previously been reported as operating expenses. • New Sales Definition follows trend of most major consumer g
Slide 6: New Sales Definition – Netting of payments to trade
HY Results 2009 – Introduction LINDT LINDT&&SPRÜNGLI SPRÜNGLI New Sales Definition – Netting of payments to trade: Restatement of 2008 half year comparatives: 2008 2008 as published adjusted Change CHF million Sales 1'171.5 1'034.9 -136.6 Other income 6.5 6.5 - Total income 1'178.0 1'041.4 -136.6 Ma
Slide 7: P&L / BS Highlights
LINDT & SPRÜNGLI Half-Year Results 2009 P&L / BS Highlights 7 HALF YEAR RESULTS 2009
Slide 8: HY 09: P&L Highlights
HY 09: P&L Highlights LINDT LINDT&&SPRÜNGLI SPRÜNGLI NTS & Profitability in line with 2009 guidance Net Trade Sales* EBIT before non- Net Inc. before non- (CHF m) recurring charges recurring charges (CHF m) (CHF m) pro forma est. CHF 979 Mio CHF 24.1 Mio CHF 18.6 Mio 1.100 36 25 1.000 31 33,6 22,9 1
Slide 9: HY 09: BS Highlights vs. Y.E. 2008
HY 09: BS Highlights vs. Y.E. 2008 LINDT LINDT&&SPRÜNGLI SPRÜNGLI STRONG B/S & HIGH CASH GENERATION Equity * Equity B/S ratio Net Cash CHF Mio in % CHF Mio 1.500 67,0% 66,8% 300 312 1.479 66,0% 1.400 1.440 250 65,0% 1.300 200 64,0% 150 63,0% 1.200 62,0% 100 109 1.100 61,0% 61,4% 50 1.000 60,0% 0 200
Slide 10: Consolidated NTS – Growth in CHF
Consolidated NTS – Growth in CHF LINDT LINDT&&SPRÜNGLI SPRÜNGLI SWISS FRANC SALES NEGATIVELY IMPACTED BY STRONG FX absolute in CHF millions increase vs. previous year in % of CHF 1'200 800 1'034.9 979.0 1'013.2 883.3 400 17.3% 14.7% 2.1% -5.4% 0 2006 2007 2008 2009 10 HALF YEAR RESULTS 2009
Slide 11: Consolidated NTS – Organic Growth
Consolidated NTS – Organic Growth LINDT LINDT&&SPRÜNGLI SPRÜNGLI POSITIVE ORGANIC GROWTH IN MOST DIFFICULT ENVIRONMENT absolute in CHF millions increase vs. previous year in local currencies 1'200 800 1'034.9 979.0 1'013.2 883.3 400 14.4% 12.3% 6.9% 0.2% 0 2006 2007 2008 2009 11 HALF YEAR RESULTS 20
Slide 12: Sales Analysis - Drivers
SALES ANALYSIS - DRIVERS LINDT & SPRÜNGLI GROWTH HY 2009 LIMITED BY DE-STOCKING / LOW CONSUMER CONFIDENCE AND FOREX 2.00% Volume Mix Price Organic Forex Reported 1.00% +0,2% 0.00% -1.00% -2,8% +4,0% -2.00% -5,4% -5.6% -3.00% -1,0% -4.00% -5.00% -6.00% 12 HALF YEAR RESULTS 2009
Slide 13: Net Trade Sales Split by Market 2009
Net Trade Sales Split by Market 2009 LINDT & SPRÜNGLI Total HY 2009: 979 CHF million 8.7% 12.6% Switzerland / Export Germany 21.7% France 20.7% Italy UK Rest of Europe 7.4% USA 5.3% 10.6% Others 13.0% 13 HALF YEAR RESULTS 2009
Slide 14: Material costs / Inventory changes
Material costs / Inventory changes LINDT LINDT&&SPRÜNGLI SPRÜNGLI MATERIAL COSTS SUFFERING FROM HIGH COCOA PRICES absolute in CHF millions and in % of NTS 400 388.3 300 363.7 340.0 313.4 200 100 35.2% 34.5% 35.8% 38.1% 0 2006 2007 2008 2009 14 HALF YEAR RESULTS 2009
Slide 15: Personnel Expenses
Personnel Expenses LINDT & SPRÜNGLI FLEXIBLE REACTION TO CHANGED ENVIRONMENT absolute in CHF millions and in % of NTS 300 283.8 283.1 261.3 244.1 200 100 27.6% 28.0% 27.4% 26.7% 0 2006 2007 2008 2009 15 HALF YEAR RESULTS 2009
Slide 16: Headcount and NTS per Employee
Headcount and NTS per Employee LINDT & SPRÜNGLI Average number of employees and NTS per employee in CHF ('000) 7500 7000 7.249 6500 6.804 6000 6.397 5500 6.788 5000 4500 4000 143 144 138 149 3500 2006 2007 2008 2009 16 HALF YEAR RESULTS 2009
Slide 17: Operating/Marketing Expenses
Operating/Marketing Expenses LINDT & SPRÜNGLI MAINTAINED MARKET INVESTMENTS absolute in CHF millions and in % of NTS 400 300 307.1 309.7 274.5 293.7 200 100 31.1% 30.6% 29.7% 30.0% 0 2006 2007 2008 2009 17 HALF YEAR RESULTS 2009
Slide 18: Depreciation
Depreciation LINDT & SPRÜNGLI EXCLUDING NON-RECURRING IMPAIRMENT: CHF 47.5 Mio / 4.9% absolute in CHF millions and in % of NTS 60 50 55.4 40 46.6 45.4 42.4 30 20 10 4.8% 4.5% 4.5% 5.7% 0 2006 2007 2008 2009 18 HALF YEAR RESULTS 2009
Slide 19: Operating Profit (EBIT)
Operating Profit (EBIT) LINDT & SPRÜNGLI “LIKE-FOR-LIKE” DECLINE VS. P.Y. DUE TO FX & MATERIAL COSTS absolute in CHF millions and in % of NTS 35 30 33.6 25 30.1 20 24.1 15 10 15.5 1.9 5 1.8% 3.0% 3.2% 2.5% 0 0.2% 2006 2007 2008 2009 before 2009 after non- non-rec. rec. charges charges 19 HALF YEAR R
Slide 20: HY Results 2009 – EBIT Margin Bridge
HY Results 2009 – EBIT Margin Bridge LINDT LINDT&&SPRÜNGLI SPRÜNGLI EBIT Margin (bef. non rec. charges): -70 bp (-50bp at constant currencies) 5.0% 4.5% +0.9% 4.0% -2.3% 3.5% +0.7% 3.0% +3.2% 2.5% +2.5% 2.0% -2.3% 1.5% 1.0% 0.5% 0.2% 0.0% EBIT 2008 Personnel + Oper.Exp. Material EBIT 2009 Non- EBIT
Slide 21: HY Results 2009 – Extraordinary
HY Results 2009 – Extraordinary LINDT LINDT&&SPRÜNGLI SPRÜNGLI Extraordinary, Non-Recurring Charges booked in HY 2009 P&L Charges: Total CHF 22.2 Mio whereof: • Store closures L&S USA: CHF 14.7 Mio (Operating Expenses) • Impairment Warehouse building Italy: CHF 7.5 Mio (Depreciation) 21 HALF YEAR RE
Slide 22: Net Income
Net Income LINDT & SPRÜNGLI “LIKE FOR LIKE” VS. P.Y.: POSITIVE IMPACT OF FINANCIAL RESULT absolute in CHF millions and in % of NTS 24 20 21.9 22.9 16 18.6 12 2.7 8 9.9 2.7 4 1.1% 2.2% 2.2% 1.9% 0.3% 0 2006 2007 2008 2009 2009 "pro forma" after non-rec. bef. non-rec. charges charges 22 HALF YEAR RESU
Slide 23: Material Cost Development
LINDT & SPRÜNGLI MATERIAL COST DEVELOPMENT 23 HALF YEAR RESULTS232009
Slide 24: Cocoa Crop / Grinding Balance
COCOA CROP / GRINDING BALANCE LINDT & SPRÜNGLI Cocoa Beans '000' t 3'870 3'654 3'609 3'720 3'461 3'570 3'330 3'428 3'497 3'270 16.2% 2'670 5.5% 2'070 42.4% 5.5% 1'470 870 270 15.5% -324 -111 -33 -73 -330 06/07 07/08 08/09 09/10 Crop Grindings Surpl./Deficit 24 HALF YEAR RESULTS 2009
Slide 25: Cocoa Product Prices 07 - 09
COCOA PRODUCT PRICES 07 - 09 LINDT & SPRÜNGLI COCOA LONDON TERMINAL BUTTER RATIO March07 – August 09 March07 – August 09 GBP/TON RATIO MULT. 2'100 3.6 1'900 3.3 1'700 3 1'500 2.7 1'300 2.4 1'100 2.1 900 1.8 Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul. 09 Mr z. 07 Jul. 07 Nov. 07 Mrz.
Slide 26: Milk Prices EU 07 - 09
MILK PRICES EU 07 - 09 LINDT & SPRÜNGLI MILK PRICES – SMP EUROPE / SWITZERLAND EUR/100KG SMP SWITZERLAND SMP EUROPE 4' 200 4' 000 3' 800 3' 600 3' 400 3' 200 3' 000 2' 800 2' 600 2' 400 2' 200 Mr z . 07 Jun. 07 Sep. 07 Dez . 07 Mr z . 08 Jun. 08 Sep. 08 Dez . 08 Mr z. 09 Jun. 09 26 HALF YEAR RESULTS
Slide 27: Hazelnut & Almond Prices 07 - 09
HAZELNUT & ALMOND PRICES 07 - 09 LINDT & SPRÜNGLI HAZELNUT PRICES ALMOND PRICES March07 – August 09 March07 – August 09 USD/100KG USD/100KG 1000 750 900 700 800 650 700 600 600 550 500 400 500 Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul. 09 Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov
Slide 28: Material Cost Trends HY 2009
MATERIAL COST TRENDS HY 2009 LINDT & SPRÜNGLI Cocoa Products: - Terminal Market 4th consecutive deficit expected triggers speculative action - Differentials weakening - Butter Ratio stable low Other Raw Materials: - Milk stable low - Sugar weakening - Hazelnuts stable low - Almonds stable low Packag
Slide 29: Thank You For Your Attention – Question and Answer Session
LINDT & SPRÜNGLI THANK YOU FOR YOUR ATTENTION QUESTION AND ANSWER SESSION 29 HALF YEAR RESULTS 2009