Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN

Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2011 Earnings Presentation

35 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 23, 2011

  1. Slide 1: Investor Presentation Half Year 2011

    INVESTOR PRESENTATION HALF YEAR 2011

  2. Slide 2: Contents

    CONTENTS 1 PERFORMANCE HIGHLIGHTS HY 2011 2 ENVIRONMENT HY 2011 3 P&L & B/S DETAILS HY 2011 4 RAW MATERIALS & PACKAGING 5 OUTLOOK 2011 6 QUESTIONS & ANSWERS 2 INVESTOR PRESENTATION, 1HY2011

  3. Slide 3: 1 Performance Highlights HY 2011

    1 PERFORMANCE HIGHLIGHTS HY 2011 3 INVESTOR PRESENTATION, 1HY2011

  4. Slide 4: Performance Highlights HY 2011

    PERFORMANCE HIGHLIGHTS HY 2011 CHF mio. Net Net Trade Sales 1‘007  Organic + 6.1 %  Volume + 3.3 %  Swiss Francs - 4.7 % EBITDA 88.3 CHF +5.7 mio. vs. p.y. EBIT 42.0 CHF +8.1 mio. vs. p.y. NET INCOME 32.1 CHF +7.3 mio. vs. p.y. NET LIQUIDITY 593.1 CHF +147.1 mio. vs. p.y. 4 INVESTOR PRESENTATION,

  5. Slide 5: Key Figures

    KEY FIGURES SOLID BALANCE SHEET, INCREASED NET CASH POSITION AFTER DIVIDEND PAYMENT AND SHARE BUY BACK Equity CHF mio. Equity B/S ratio in % Net Cash Y/E CHF mio. 1.700 70,0% 600 593 1.673 69.4 550 68,0% 1.600 % 540 500 66,0% 66,2 450 1.500 1.542 % 64,0% 400 1.400 62,0% 350 60,0% 300 1.300 58,0% 250

  6. Slide 6: 2 Environment HY 2011

    2 ENVIRONMENT HY 2011 6 INVESTOR PRESENTATION, 1HY2011

  7. Slide 7: Environment

    ENVIRONMENT ECONOMIES _ Economic uncertainties lead to changes in purchasing behavior _ Ongoing volatile financial markets CONSUMERS _ Cautious consumer sentiment sluggish economies _ Resumption of trend to Premium / trading up _ Importance of promotional incentives CHOCOLATE MARKETS _ Flat volume d

  8. Slide 8: 3 P&L & B/S Details HY 2011

    3 P&L & B/S DETAILS HY 2011 8 INVESTOR PRESENTATION, 1HY2011

  9. Slide 9: Overview – P&L & B/S Details HY 2011

    OVERVIEW – P&L & B/S DETAILS HY 2011 ORGANIC GROWTH TARNISHED BY TRANSLATION EFFECT – PROFITABILITY MAINTAINED Net Net Trade Sales EBIT Net Income CHF 1‘007 mio. CHF 42.0 mio. CHF 32.1 mio. - 4.7 % + 23.9 % + 29.4 % 1.100 45 1.057 42,0 30 32,1 1.000 38 1.007 900 30 33,9 22,5 24,8 800 23 15 700 15 7,

  10. Slide 10: Sales Analysis – 5 Years in Swiss Francs

    SALES ANALYSIS – 5 YEARS IN SWISS FRANCS GROWTH IN SWISS FRANCS AFFECTED BY CURRENCIES Absolute in CHF mio. Growth in CHF 1.200 2‘520 1.000 1.035 1.057 1.013 1'007 979 800 600 400 14.7% 2.1% -5.4% 7.9% -4.7% 200 2007 2008 2009 2010 2011 10 INVESTOR PRESENTATION, 1HY2011

  11. Slide 11: Sales Analysis – 5 Years in Local Currencies

    SALES ANALYSIS – 5 YEARS IN LOCAL CURRENCIES ORGANIC GROWTH STRONG COMPARED TO AVERAGE MARKET GROWTH OF 3% Absolute in CHF mio. Increase in local currencies 1.200 2‘520 1.000 1.035 1.057 1.013 1.007 979 800 600 400 12.3% 6.9% 0.2% 9.2% 6.1% 200 2007 2008 2009 2010 2011 11 INVESTOR PRESENTATION, 1HY2

  12. Slide 12: Sales Analysis – Drivers

    SALES ANALYSIS – DRIVERS SALES GROWTH DRIVEN BY BALANCED VOLUME AND PRICE/MIX 10,00% 9,00% 8,00% 7,00% 6,00% 2,8% 6,1% 5,00% 4,00% 3,00% 3,3% 2,00% 1,00% 0,00% -1,00% -2,00% -3,00% -4,00% -10.8% -4,7% -5,00% Volume Price/Mix Organic Forex Reported in CHF 12 INVESTOR PRESENTATION, 1HY2011

  13. Slide 13: Sales Analysis – Markets

    SALES ANALYSIS – MARKETS TOTAL NNTS 2010: CHF 1’007 mio. – CONTRIBUTION FROM ALL KEY MARKETS 12,9% 24,3% North America 7,2% Germany Italy 5,4% France Switzerland 7,0% UK 20,0% Rest of Europe 11,2% Rest of World 12,0% 13 INVESTOR PRESENTATION, 1HY2011

  14. Slide 14: Material Costs

    MATERIAL COSTS COST MARGIN CONTINUES TO SHRINK DESPITE HIGH VOLATILITY OF INPUT COSTS Absolute in CHF mio. In % of NNTS 425 400 401 375 388 377 350 364 325 340 300 275 250 225 35.9% 37.5% 34.7% 38.0% 37.5% 200 2007 2008 2009 2010 2011 14 INVESTOR PRESENTATION, 1HY2011

  15. Slide 15: Personnel Expenditure

    PERSONNEL EXPENDITURE COST MARGIN IMPACTED BY FX Personnel exp. in CHF mio. Personnel exp. in % NNTS 300 284 283 279 250 261 267 200 150 28.0% 27.4% 26.7% 26.4% 26.6% 100 2007 2008 2009 2010 2011 15 INVESTOR PRESENTATION, 1HY2011

  16. Slide 16: Headcount & NNTS / Employee

    HEADCOUNT & NNTS / EMPLOYEE NUMBER OF EMPLOYEES + 2.5 % / VOLUME + 3.3 % Average number of employees NNTS per employee CHF (000) 7.500 7.000 7.249 7'160 6.984 6.500 6.804 6.788 6.000 5.500 5.000 4.500 4.000 149 143 144 151 141 3.500 2007 2008 2009 2010 2011 16 INVESTOR PRESENTATION, 1HY2011

  17. Slide 17: Operating / Marketing Expenses

    OPERATING / MARKETING EXPENSES CONTINUED INVESTMENT IN BRAND Absolute in CHF mio. In % of NNTS 325 318 300 310 307 301 294 275 250 225 30.6% 29.7% 30.0% 30.1% 29.9% 200 2007 2008 2009 2010 2011 17 INVESTOR PRESENTATION, 1HY2011

  18. Slide 18: Operating Profit (EBIT)

    OPERATING PROFIT (EBIT) EBIT DEVELOPMENT DRIVEN BY OPERATING EFFICIENCY GAINS AND PRICE INCREASES Absolute in CHF mio. In % of NNTS 45 42 38 30 34 34 30 23 24 15 8 3.0% 3.2% 2.5% 3.2% 4.2% 0 2007 2008 2009 2010 2011 18 INVESTOR PRESENTATION, 1HY2011

  19. Slide 19: Net Income

    NET INCOME SOUND PROFITABILITY IN FIRST HALF 2011 Net income in CHF mio. In % of NNTS 30 32 23 25 22 23 19 15 8 2.2% 2.2% 1.9% 2.3% 3.2% 0 2007 2008 2009 2010 2011 19 INVESTOR PRESENTATION, 1HY2011

  20. Slide 20: Operating Cash Flow & CAPEX

    OPERATING CASH FLOW & CAPEX STABLE OPERATING CASH FLOW DESPITE NEGATIVE FX IMPACT Operating Cash Flow in CHF mio. CAPEX in CHF mio. 400 369 300 258 260 200 226 228 100 105 100 61 40 42 0 2007 2008 2009 2010 2011 20 INVESTOR PRESENTATION, 1HY2011

  21. Slide 21: Net Cash Position – Development

    NET CASH POSITION – DEVELOPMENT CONTINUED CASH GENERATION + CHF 53 mio. vs. 31.12.2010 Net cash and net cash movement in CHF mio. 800,0 +12 -42 700,0 -105 +228 600,0 -31 -9 500,0 540 400,0 300,0 593 200,0 356 100,0 109 0,0 2008 2009 2010 Operating Capital Incr. CAPEX Dividend Share buy Currency 1H20

  22. Slide 22: Share Buy Back 2011 / 2012

    SHARE BUY BACK 2011 / 2012 REPURCHASE OF SHARES AND PCS ON TRACK _ In the first half of 2011 Lindt & Sprüngli repurchased registered shares and PCs worth CHF 31 mio. _ Total repurchase as per August 9, 2011 (pre-results trading stop): CHF 76.9 mio. (corresponding to 1% of registered shares and 1.4%

  23. Slide 23: 4 Raw Material & Packaging

    4 RAW MATERIAL & PACKAGING 23 INVESTOR PRESENTATION, 1HY2011

  24. Slide 24: Material Costs Trends 2011

    MATERIAL COSTS TRENDS 2011 COCOA PRODUCTS - Terminal Market short term very volatile, range GBP 1’800 – 2’400 ~1/3 of Material Costs - Bean Differentials - Butter Ratio OTHER RAW MATERIALS - Milk - Sugar ~ 1/3 of Material Costs - Hazelnuts - Almonds PACKAGING - Paper & Cardboard - Metals & Flexibles

  25. Slide 25: Cocoa Crop / Grinding Balance

    COCOA CROP / GRINDING BALANCE COCOA BEANS 000 T 4.800 4.230 3.950 3.966 4.200 3.683 3.849 3.617 3.630 3.600 3.499 3.000 16.2% 2.400 1.800 5.5% 1.200 5.5% 42.4% 600 350 0 82 08/09 09/10 -89 10/11 11/12 -40 -600 15.5% Crop Grindings Surpl./Deficit Source: ICCO and CRA 08.11 25 INVESTOR PRESENTATION, 1

  26. Slide 26: Cocoa Product Prices

    26 1050 1300 1550 1800 2050 2300 2550 2800 800 GBP / Ton Jan. 07 Mrz. 07 Jun. 07 Sep. 07 Dez. 07 Feb. 08 Mai. 08 Aug. 08 Nov. 08 Jan. 09 Apr. 09 Jul. 09 Okt. 09 Dez. 09 LONDON TERMINAL Mrz. 10 Jun. 10 Sep. 10 COCOA PRODUCT PRICES Nov. 10 Feb. 11 Mai. 11 Aug. 11 1,20 1,50 1,80 2,10 2,40 2,70 3,00 3,3

  27. Slide 27: Nuts – Prices

    27 USD / Ton 10.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 Aug 05 Nov 05 Feb 06 Mai 06 Aug 06 Nov 06 Feb 07 Mai 07 Aug 07 NUTS – PRICES Nov 07 Feb 08 Mai 08 Aug 08 Hazelnuts Nov 08 Feb 09 Mai 09 Aug 09 Nov 09 Feb 10 Mai 10 Aug 10 Nov 10 Feb 11 Mai 11 Aug 11 4.000 4.500 5.000 5.500 6.000 6.500 7.0

  28. Slide 28: Milk Prices

    28 EUR / Ton 2.000 2.500 3.000 3.500 4.000 4.500 5.000 5.500 6.000 MILK PRICES Jan 10 Feb 10 Mrz 10 Apr 10 Mai 10 Jun 10 Jul 10 CH Aug 10 Sep 10 EU Okt 10 Nov 10 Dez 10 World Jan 11 Feb 11 Mrz 11 Apr 11 Mai 11 Jun 11 Jul 11 Aug 11 INVESTOR PRESENTATION, 1HY2011

  29. Slide 29: Sugar Prices

    29 250 450 650 850 1'050 1'250 1'450 USD / Ton Jan 08 Mrz 08 SUGAR PRICES Mai 08 Jul 08 Sep 08 Nov 08 Jan 09 Mrz 09 CH / EU Mai 09 Jul 09 Sep 09 Nov 09 USA Jan 10 Mrz 10 Mai 10 Jul 10 World Sep 10 Nov 10 Jan 11 Mrz 11 Mai 11 Jul 11 INVESTOR PRESENTATION, 1HY2011

  30. Slide 30: 5 Outlook 2011

    5 OUTLOOK 2011 30 INVESTOR PRESENTATION, 1HY2011

  31. Slide 31: Outlook 2011 – Financial Guidance

    OUTLOOK 2011 – FINANCIAL GUIDANCE FOCUS ON INVESTING FOR FUTURE GROWTH MARKET FOCUS 2011 _ Selective price increases in specific markets _ Focus on market share gains _ Participate in strategic promotional activities to grow volume _ Continue investments in newly opened subsidiaries CONTINUATION OF

  32. Slide 32: 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 32 INVESTOR PRESENTATION, 1HY2011

  33. Slide 33: Questions & Answers

    6 QUESTIONS & ANSWERS 33 INVESTOR PRESENTATION, 1HY2011

  34. Slide 34: 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

  35. Slide 35: Investor Presentation Half Year 2011

    INVESTOR PRESENTATION HALF YEAR 2011

Chocoladefabriken Lindt & Sprüngli — H1 2011 Earnings Presentation on 6ix