Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — Investor Presentation (March 2016)
71 slides from Chocoladefabriken Lindt & Spruengli's investor presentation, Mar 8, 2016
Slide 1: Lindt & Sprüngli
Sao LINDT & SPRUNGLI
Slide 2: Analysts' Conference, March 8th, 2016
ANALYSTS‘ CONFERENCE March 8th, 2016 Financial Year 2015
Slide 3: Group Management
GROUP MANAGEMENT Dr. Dieter Weisskopf Uwe Sommer Finance, Administration, IT, Marketing, Sales, Global Retail, Procurement, Operations Markets Ernst Tanner Chairman & Group CEO Andreas Pfluger Rolf Fallegger CEO Russell Stover, N/America, AUS FR, IT, UK, PL, CZ, RU, China Financial Analysts' Confere
Slide 4: Extended Group Management
EXTENDED GROUP MANAGEMENT Dr. Adalbert Lechner Kamillo Kitzmantel Thomas Linemayr DE, AT CH, Export, Duty Free USA Financial Analysts' Conference 2016 08.03.2016 4
Slide 5: Agenda
AGENDA 1. Key figures financial year 2015 E. Tanner 2. Markets ● North America A. Pfluger ● UK R. Fallegger ● Germany A. Lechner ● Switzerland K. Kitzmantel 3. Global Retail U. Sommer 4. Detailed financial figures 2015 D. Weisskopf 5. Outlook E. Tanner 6. Q&A Financial Analysts' Conference 2016 08.0
Slide 6: Key Figures
KEY FIGURES Financial Year 2015
Slide 7: A Challenging Year
A CHALLENGING YEAR Challenges of the financial year 2015 Discontinuation Very hot summer High commodity Recession in oil- Unsettling Concerns about of minimum followed by prices (above all exporting effects of deflation and exchange rate extremely mild cocoa) countries terrorist threats unemployment
Slide 8: P&L Statement L&S Group
P&L STATEMENT L&S GROUP Organic growth of +7.1% and EBIT margin increase of +20 BP fully in line with long term guidance CHF million 2014 2015 Growth in CHF Sales 3 385.4 3 653.3 +7.9% Growth in Local Currencies +13.5% Organic Growth +7.1% EBITDA 588.0 645.8 +9.8% Margin 17.4% 17.7% EBIT 474.3 518.8
Slide 9: Share Price
SHARE PRICE Creating shareholder value: +30.5% in 2015 Lindt registered share outperforming SPI by 27.1% in 2015 80 000 31.12.2014: LISN CHF 57’160 70 000 30.12.2015: LISN CHF 74’620 +30.5% y-o-y 60 000 50 000 40 000 12.2014 01.2015 02.2015 03.2015 04.2015 05.2015 06.2015 07.2015 08.2015 09.2015 10.
Slide 10: Shareholder Return
SHAREHOLDER RETURN Dividend payment of CHF 800 (reg.) or +10.3% vs. 2014 / continuous increase over the past 20 years 1992 2011 2012 2013 2014 2015* Dividend Reg. (CHF) 39 500 575 650 725 800 • From Agio 500 535 555 325 400 • From Retained Earnings 40 95 400 400 Increase (CHF) 50 75 75 75 75 Dividen
Slide 11: Sales Analysis − Markets
SALES ANALYSIS − MARKETS Weight of sales in North America increasing from 36.8% to 43.1% 7.0% Total NNTS CHF 3.653 bn 5.7% 5.5% 43.1% ● North America 6.4% ● Germany ● France ● CH incl. Exports 9.1% ● Italy ● UK 9.7% ● Rest of Europe 13.5% ● Rest of the World Financial Analysts' Conference 2016 08.03
Slide 12: Markets
MARKETS Financial Year 2015
Slide 13: North America
NORTH AMERICA NNTS (Sales) 7.0% USD 1.627 bn 5.7% ● North America 5.5% ● Germany 43.1% ● France 6.4% ● CH incl. Exports ● Italy ● UK ● Rest of Europe 9.1% ● Rest of the World 9.7% 13.5% Financial Analysts' Conference 2016 08.03.2016 13
Slide 14: L&S North America 2015
L&S NORTH AMERICA 2015 From newcomer to number 3 in the overall chocolate market 1994 2015 Sales (NNTS) USD 24 million USD 1.627 million Market position > # 20 #3 Financial Analysts' Conference 2016 08.03.2016 14
Slide 15: Russell Stover Acquisition − A Milestone
RUSSELL STOVER ACQUISITION − A MILESTONE The integration of Russell Stover is progressing according to plan ● RS optimally complements the brand and product portfolio of Lindt and Ghirardelli ● Strengthening of the number 1 position in the premium chocolate segment ● Rapidly growing number 3 in the
Slide 16: Russell Stover Acquisition − Priorities for 2016
RUSSELL STOVER ACQUISITION − A MILESTONE Priorities for Russell Stover in 2016 ● Positioning of the brand ● Further elimination of non-profitable businesses and promotions ● Adjustment of pricing structure ● Increasing pace of product innovation ● Strengthening of sales and marketing teams ● Tacklin
Slide 17: Key Locations
KEY LOCATIONS Calgary Toronto, CAN Stratham, NH Trenton Mississauga San Leandro, Carlisle, PA CA Chicago, IL Reno, NV Abilene, KS Kansas City, MO Lathrop, CA Carmel Church, VA Montrose, CO Butler, MO Iola, KS Cookeville, TN Terrell, TX Corsicana, TX Wildwood, FL Financial Analysts' Conference 2016 0
Slide 18: Russell Stover − Summary
RUSSELL STOVER − SUMMARY ● Most important acquisition strategically and in size ● Integration into to the L&S Group well on track ● 2015/16 streamlining assortment and promotional activities ● Therefore 2015/16 lower sales growth focus on profitability ● In 2017 basis established for profitable grow
Slide 19: United Kingdom
UNITED KINGDOM NNTS (Sales) 7.0% GBP 136.0 million 5.7% ● North America 5.5% ● Germany ● France 43.1% 6.4% ● CH incl. Exports ● Italy ● UK ● Rest of Europe 9.1% ● Rest of the World 9.7% 13.5% Financial Analysts' Conference 2016 08.03.2016 19
Slide 20: United Kingdom 2016
UNITED KINGDOM 2016 UK Confectionery Market ● UK confectionery market is the 2nd largest in the world ● Confectionery remains one of the largest and most important categories in UK grocery and is bought by over 98% of UK households Lindt & Sprüngli UK ● Sales GBP 136 million (+12.4% y-o-y) ● 4th yea
Slide 21: Focus on Key Franchises
FOCUS ON KEY FRANCHISES ● Lindor is one of the fastest growing brands in the UK and is now the 4th biggest Confectionery Brand and a Top 100 Brand in the UK market. ● Strong advertising developed for the UK market, effective sampling programs and excellent POS activation programs ● Excellence is the
Slide 22: Entering into a New Market Segment
ENTERING INTO A NEW MARKET SEGMENT ● Countlines are the largest chocolate market segment in the UK ● With the launch of Lindor Treatbar we made a first entry into this untapped segment ● Initial results are promising and indicate major volume potential for Lindt & Sprüngli UK § Financial Analysts' C
Slide 23: Leader in Shopper Marketing
LEADER IN SHOPPER MARKETING ● Lindt is partnering with Key Retailers on Shopper Marketing projects to create better shopper insights and more efficient range selections. Lindt was voted number 1 in the Advantage Survey for Category Management in the UK chocolate category. ● Strengthened Category Par
Slide 24: Expanding Retail & Building the Brand
EXPANDING RETAIL & BUILDING THE BRAND Fast expansion of the retail store portfolio to complement the wholesale business in key locations around the UK § Continuously strengthen the Lindt brand § Financial Analysts' Conference 2016 08.03.2016 24
Slide 25: L&S UK − Summary
L&S UK − SUMMARY ● UK, as the 2nd largest chocolate market in the world, is of utmost importance for Lindt & Sprüngli ● In 2015, despite a flat market, Lindt & Sprüngli sales grew at a double digit rate and strongly gained market share ● Focus is on our key franchises Lindor and Excellence, where we
Slide 26: Germany
GERMANY NNTS (Sales) 7.0% EUR 458.1 million 5.7% ● North America 5.5% ● Germany ● France 43.1% 6.4% ● CH incl. Exports ● Italy ● UK ● Rest of Europe 9.1% ● Rest of the World 9.7% 13.5% Financial Analysts' Conference 2016 08.03.2016 26
Slide 27: Germany 2015
GERMANY 2015 German Confectionery Market ● High per capita consumption at approx. 9 kg p.a. ● German confectionery market is the 4th largest in the world ● Moderate growth based on price increases ● Fierce price competition – historic highest number of discounters Lindt & Sprüngli Germany ● € 458,1
Slide 28: Value Creation for the Trade
VALUE CREATION FOR THE TRADE ● Differenciation from hard discounters ● Distinct price premium ● High value creation ● Innovations as growth driver (HELLO, Mini Pralinés, Teddy etc.) ● Premium POS appearance Financial Analysts' Conference 2016 08.03.2016 28
Slide 29: Double-Digit Growth of Key Brands
DOUBLE−DIGIT GROWTH OF KEY BRANDS § 1 2 Financial Analysts' Conference 2016 08.03.2016 29
Slide 30: Uncompromised Strengthening of the Brand
UNCOMPROMISED STRENGTHENING OF THE BRAND ● Uncompromised quality orientation ● Consequent premium positioning ● 360° deployment of the Master Chocolatier campaign ● High pace of innovations ● Brand experience at POS and in our retail stores Financial Analysts' Conference 2016 08.03.2016 30
Slide 31: Innovation 2015: Gold Bunny Special Edition
INNOVATION 2015: GOLD BUNNY SPECIAL EDITION Rejuvenation of a classic 1 Financial Analysts' Conference 2016 08.03.2016 31
Slide 32: Brand Experience at POS
BRAND EXPERIENCE AT POS ● Extension of premium shelves ● Upgrades of the Lindt permanent locations ● Shop-in-shop initiatives in shopping malls and department stores § Financial Analysts' Conference 2016 08.03.2016 32
Slide 33: Retail − New Locations & Strengthening of the Brand
RETAIL − NEW LOCATIONS & STRENGTHENING OF THE BRAND Berlin Heidelberg § Dresden Financial Analysts' Conference 2016 08.03.2016 33
Slide 34: L&S Germany − Summary
L&S GERMANY − SUMMARY ● +7.0 % growth in 2015 ● Healthy long-term trend ● Continuous gains in the market share ● Market leader in seasonal business and in praliné gift boxes ● Key range grow over-proportionally ● Innovations dynamize and rejuvenate the brand ● Extension of our retail divison ● Upgra
Slide 35: L&S Switzerland
L&S SWITZERLAND NNTS (Sales) 7.0% CHF 359.0 million 5.7% ● North America 5.5% ● Germany ● France 43.1% 6.4% ● CH incl. Exports ● Italy ● UK 9.1% ● Rest of Europe ● Rest of the World 9.7% 13.5% Financial Analysts' Conference 2016 08.03.2016 35
Slide 36: Focus on Key Franchises and Innovation
FOCUS ON KEY FRANCHISES AND INNOVATION Challenging Market Strong Growth of Key Franchises Environment Discontinuation of § minimum exchange rate EUR/CHF LINDOR EXCELLENCE Milk-Range Product strategy / focus Declining Swiss Selective distribution Innovation Power chocolate market § Price discounts Gr
Slide 37: Focus on Retail Expansion
FOCUS ON RETAIL EXPANSION Lindt Shop Swiss Lindt Shop Jungfraujoch Lindt Shop Zermatt Museum of Transport Financial Analysts' Conference 2016 08.03.2016 37
Slide 38: Strengthening the Swiss Production Site
STRENGTHENING THE SWISS PRODUCTION SITE ● Project «Swiss Fitness»: Efficiency improvements to support export business ● Increasing production capacities ● Strengthening and long-term commitment for swiss production site Financial Analysts' Conference 2016 08.03.2016 38
Slide 39: L&S Switzerland − Summary
L&S SWITZERLAND − SUMMARY ● Challenging market environment ● Focus on key franchises and innovation ● Selective distribution ● Focus on retail expansion, tourism ● Strong commitment towards Swiss production site Financial Analysts' Conference 2016 08.03.2016 39
Slide 40: Welcome to the New Lindt Shop
WELCOME TO THE NEW LINDT SHOP Financial Analysts' Conference 2016 08.03.2016 40
Slide 41: Global Retail
GLOBAL RETAIL Financial Year 2015
Slide 42: Vision
Vision By 2020 we want to be the world’s leading retailer of premium chocolate
Slide 43: Strategic Goals
STRATEGIC GOALS ● Retail to achieve profitable growth above group average ● Strengthening of the Lindt Brand Equity ● Master Chocolatier ● Lindt Difference ● Display of wide product range ● Gaining new clients and real Lindt fans Financial Analysts' Conference 2016 08.03.2016 43
Slide 44: Actions
ACTIONS ● Building of a Global Retail Department (2009) ● Development of globally multipliable shop concepts ● Factory Shops ● Outlet Shops ● Boutiques ● Cafés ● Definition of a shop specific product assortment (Focus: Pick & Mix) ● Development of seasonal campaigns ● Training guides for all Chocola
Slide 45: Results
RESULTS ● 325 shops worldwide ● Sales CHF 378.5 million (+20% y-o-y) ● ~1800 employees ● Sampling of 40 million LINDOR balls ● Strong development of the Lindt brand Financial Analysts' Conference 2016 08.03.2016 45
Slide 46: New Shops Since 2009
209 NEW SHOPS SINCE 2009 North America 2009: 54 2014: 139 Europe 2015: 156 2009: 55 2014: 108 2015: 114 Japan 2009: 1 2014: 12 2015: 15 Total Shops South Africa Australia 2009: 6 2009: 116 2009: 0 2014: 12 2014: 275 2014: 2 2015: 18 South America 2015: 4 2015: 325 2009: 0 2014: 2 2015: 18 Financial
Slide 47: Master Chocolatier in the Shops
MASTER CHOCOLATIER IN THE SHOPS Financial Analysts' Conference 2016 08.03.2016 47
Slide 48: Master Chocolatier − Shop Events
MASTER CHOCOLATIER − SHOP EVENTS Financial Analysts' Conference 2016 08.03.2016 48
Slide 49: Lindt Retail − Pick & Mix
LINDT RETAIL − PICK & MIX Financial Analysts' Conference 2016 08.03.2016 49
Slide 50: Global Retail − Summary
GLOBAL RETAIL − SUMMARY Strengthe- ning the Brand Raising Global Brand Presence Awareness By 2020 we want to be the world’s leading retailer of premium chocolate Exclusive Different Product Shop Presentation Concepts / Product Range Unique Shopping Experience Financial Analysts' Conference 2016 08.0
Slide 51: Detailed Financial Figures
DETAILED FINANCIAL FIGURES Financial Year 2015
Slide 52: Sales Growth − in CHF
SALES GROWTH − IN CHF Continuation of high growth path Absolute in CHF million (as published) Growth Rate in % (as published) 3 700 3 653 3 200 3 385 2 700 2 883 2 670 2 489 2 200 -3.5% 7.3% 7.8% 17.4% 7.9% 1 700 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 52
Slide 53: Sales Growth − Organic
SALES GROWTH − ORGANIC Organic growth fully in line with long term goal (+6.0% to +8.0%) Incease p.a. in local currencies (organic growth in %) 10% 9% 9.8% 8% 8.6% 7% 6% 6.8% 7.1% 5% 6.0% 4% 3% 2% 1% 0% 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 53
Slide 54: Sales − Growth Factors
SALES − GROWTH FACTORS Balanced growth between volume and price / mix 14% 6.4% 13.5% -5.6% 12% 10% 8% 7.9% 6% 3.3% 7.1% 4% 3.8% 2% 0% Volume Price / Mix Organic RSC (FY Effect) Sales in Local Forex Sales in CHF Currency Financial Analysts' Conference 2016 08.03.2016 54
Slide 55: Organic Growth by Segment
ORGANIC GROWTH BY SEGMENT Europe NAFTA All other 12% 11.4% 10% 8% 7.9% 6% 5.4% 4% 2% 0% Financial Analysts' Conference 2016 08.03.2016 55
Slide 56: Material Costs
MATERIAL COSTS Material costs including inventory-changes decreased by -60 BP Abolute in CHF million In % Sales 1 400 1 200 1 306.0 1 227.9 1 000 940.0 943.2 800 892.4 600 400 200 35.9% 35.2% 32.7% 36.3% 35.7% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 56
Slide 57: Number of Employees (FTE)
NUMBER OF EMPLOYEES (FTE) Increase by 2‘468 employees mainly driven by Russell Stover Average number of employees (FTE) 14 000 13 000 13 180 12 000 11 000 10 000 10 712 9 000 8 000 8 949 8 157 7 000 7 779 6 000 5 000 4 000 +207 +378 +792 +1 763 +2 468 3 000 2011 2012 2013 2014 2015 Financial Analyst
Slide 58: Personnel Expenses
PERSONNEL EXPENSES Increase in the expense ratio due to Russell Stover In CHF million In % Sales 800 807.1 719.5 600 654.7 599.6 540.5 400 200 21.7% 22.5% 22.7% 21.2% 22.1% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 58
Slide 59: Operating Expenses
OPERATING EXPENSES Continued good support of marketing investments in 2015 Absolute in CHF million In % Sales 1 000 912.3 800 868.2 794.9 707.9 600 644.1 400 200 25.9% 26.5% 27.6% 25.6% 25.0% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 59
Slide 60: Operating Profit (EBIT)
OPERATING PROFIT (EBIT) Increase in EBIT Margin by +20 BP to 14.2% (EBITA of 14.4%) Absolute in CHF million In % Sales 500 518.8 474.3 400 404.1 300 328.7 330.1 200 100 13.2% 12.4% 14.0% 14.0% 14.2% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 60
Slide 61: EBITDA
EBITDA Absolute increase by +9.8% Absolute in CHF million In % Sales 700 600 645.5 588.0 500 503.3 400 422.0 435.9 300 200 100 17.0% 16.3% 17.5% 17.4% 17.7% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 61
Slide 62: Capital Investments
CAPITAL INVESTMENTS Record high investments to cope with volume growth Absolute in CHF million 240 252.8 234.6 200 191.4 160 144.6 120 104.2 80 40 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 62
Slide 63: Depreciation and Impairments
DEPRECIATION AND IMPAIRMENTS Depreciation to sales ratio remaining stable despite high investments Absolute in CHF million In % Sale 140 120 127.0 113.7 100 105.8 99.2 93.2 80 60 40 20 3.7% 4.0% 3.4% 3.4% 3.5% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 63
Slide 64: Tax Rate
TAX RATE Decrease in 2015 due to tax optimization In % of income before taxes 30% 27.5% 25.0% 25.6% 25.5% 24.5% 20% 10% 0% 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 64
Slide 65: Net Income
NET INCOME Increase in net income margin by +30 BP to 10.4% Absolute in CHF million In % Sales 400 350 381.0 342.6 300 303.0 250 246.5 244.9 200 150 100 50 9.9% 9.2% 10.5% 10.1% 10.4% 0 2011 2012 2013 2014 2015 Financial Analysts' Conference 2016 08.03.2016 65
Slide 66: Net Financial Position − Development
NET FINANCIAL POSITION − DEVELOPMENT Decrease of net debt thanks to good cash flow generation Net Cash in CHF million 0 -681 -500 -253 -166 94 -1 -844 489 -1 000 2014 Operating Cash Flow Investment Activities Dividend Capital Increase & CTA / Other 2015 Treasury Stock Financial Analysts' Conference
Slide 67: Balance Sheet
BALANCE SHEET Strong equity after acquisition impact Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million 3500 60.0% 3 490 -50 50.0% 53.8% 55.7% -250 3000 40.0% 3 002 30.0% -450 2500 20.0% -650 -681 10.0% -844 2000 0.0% -850 2014 2015 2014 2015 2014 2015 Financial Analys
Slide 68: Outlook
Hx LINDT & SPRUNGLI
Slide 69: Outlook Environment 2016
OUTLOOK ENVIRONMENT 2016 Lindt & Sprüngli – Strengthening the brand, continuous Ongoing challenging general conditions increase of market shares, expansion into new markets ● Ongoing high prices for cocoa beans and cocoa ● Innovation and intensified marketing communication butter to continuous stren
Slide 70: Financial Analysts' Meeting / March 8th, 2016
Financial Analysts‘ Meeting / March 8th, 2016
Slide 71: 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.
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