Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN
Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2010 Earnings Presentation
34 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 24, 2010
Slide 1: Investor Presentation Half Year 2010
INVESTOR PRESENTATION HALF YEAR 2010
Slide 2: Contents
CONTENTS 1 PERFORMANCE HIGHLIGHTS HY 2010 2 ENVIRONMENT HY 2010 3 P&L & B/S DETAILS HY 2010 4 MATERIAL COST DEVELOPMENT 5 OUTLOOK 2010 6 QUESTIONS & ANSWERS
Slide 3: 1 Performance Highlights HY 2010
1 PERFORMANCE HIGHLIGHTS HY 2010
Slide 4: Performance Highlights HY 2010
PERFORMANCE HIGHLIGHTS HY 2010 CHF mio. Net Net Trade Sales 1‘057 Organic + 9.2 % Volume Vol me + 8.2 82% Swiss Francs + 7.9 % EBITDA 82,5 CHF +10,5 Mio vs. p.y. (before extraordinary) EBIT 33 9 CHF + 99,8 33,9 8 Mio vs vs. p p.y. y (before extraordinary) NET INCOME 24,8 CHF + 6,2 Mio vs. p.y.
Slide 5: Key Figures: Rock Solid Balance Sheet & Record Net Cash Position
KEY FIGURES „ROCK ROCK SOLID“ BALANCE SHEET & RECORD NET CASH POSITION Equity CHF mio. Equity q y B/S ratio in % Net Cash Y/E CHF mio. 1'700 70.0% 450 446 68.0% 400 1'600 68.5% 1'618 1 618 66.0% 350 356 1'500 64.0% 65.3% 1'516 300 62.0% 1'400 00 250 60.0% 1'300 200 58.0% 150 1'200 56 0% 56.0% 54.0%
Slide 6: 2 Environment HY 2010
2 ENVIRONMENT HY 2010
Slide 7: Environment
ENVIRONMENT ECONOMIES _ Stabilisation of financial sector & economies back to slow growth _ Confusing g inflationary y as well as deflationary y fears _ Increasing savings in private sector _ Unemployment rates remaining at reached high levels CONSUMERS _ Improvement of consumer sentiment vs. very l
Slide 8: 3 P&L & B/S Details HY 2010
3 P&L & B/S DETAILS HY 2010
Slide 9: Overview - P&L & B/S Details HY 2010
OVERVIEW - P&L & B/S DETAILS HY 2010 Net Trade Sales EBIT* Net Income* (CHF m) (CHF m) (CHF m) CHF 1‘057 1 057 Mio CHF 33.9 Mio CHF 18.6 Mio + 7.9 % + 41 % + 33 % 1'100 35 25 33.9 24.8 1'000 1'057 30 20 979 25 900 18.6 24.1 15 20 800 15 10 700 10 5 600 5 500 0 0 2009 2010 2009 2010 2009 2010 * 2009
Slide 10: Sales Analysis: Growth in Swiss Francs - 5 Years
SALES ANALYSIS GROWTH IN SWISS FRANCS - 5 YEARS Absolute in CHF mio mio. Incr vs. Incr. vs previous year in Swiss Francs 1'200 2‘520 1'000 1'057 1'013 1'035 979 800 883 600 400 17 3% 17.3% 14 7% 14.7% 2 1% 2.1% -5 4% -5.4% 7 9% 7.9% 200 2006 2007 2008 2009 2010
Slide 11: Sales Analysis: Organic Growth 5 Years
SALES ANALYSIS ORGANIC GROWTH 5 YEARS Absolute in CHF mio mio. Incr vs. Incr. vs previous year in local currencies 1'200 2‘520 1'000 1'035 1'057 1'013 979 800 883 600 400 14.4% 12.3% 6.9% 0.2% 9.2% 200 2006 2007 2008 2009 2010
Slide 12: Sales Analysis - Drivers
SALES ANALYSIS - DRIVERS HIGH VOLUME GROWTH & MODERATE PRICE INCREASES 10 00% 10.00% 9.00% 1.0% -1.3% 8.00% 9.2% 8 2% 8.2% 7.00% 7.9% 6.00% 5 00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Volume Price/Mix Organic Forex Reported in CHF
Slide 13: Sales Analysis - Markets
SALES ANALYSIS - MARKETS IMPORTANT EASTER BUSINESS IN ITALY IN 1ST HALF Total NNTS: CHF 1’057 mio. USA, Ghirardelli, Can, Mexico 5.8% 12.7% Germany 25.7% France 7.2% Italy 5.9% Rest of the World 19.8% Rest of Europe 12.2% Switzerland S t e a d Dom. o & Exp. p 10.7% UK
Slide 14: Material Costs - Another Increase of Cost Margin
MATERIAL COSTS MATERIAL COSTS - ANOTHER INCREASE OF COST MARGIN Ab l Absolute in i CHF mio. i In % of NNTS 425 400 401 375 388 350 364 325 340 300 313 275 250 225 35.4% 35.9% 37.5% 34.7% 38.0% 200 2006 2007 2008 2009 2010
Slide 15: Personnel Expenditure
PERSONNEL EXPENDITURE DECREASE OF COST MARGIN Personnel exp. exp in CHF mio mio. Personnel exp. in % NNTS 300 284 283 279 250 261 244 200 150 27 6% 27.6% 28 0% 28.0% 27 4% 27.4% 26 7% 26.7% 26 4% 26.4% 100 2006 2007 2008 2009 2010
Slide 16: Headcount & NNTS/Employee
HEADCOUNT & NNTS/EMPLOYEE NO OF EMPLOYEES + 2 NO. 2.9 9 % / VOLUME + 8 8.2 2% Average g number of employees p y NNTS per employee CHF (000) 7'500 7'000 7'249 6'984 6'500 6'804 6'788 6'397 6'000 5'500 5'000 5 000 4'500 4'000 138 149 143 144 151 3'500 2006 2007 2008 2009 2010
Slide 17: Operating / Marketing Expenses
OPERATING / MARKETING EXPENSES CONTINUED INCREASE IN BRAND INVESTMENTS Absolute in CHF mio mio. In % of NNTS 325 318 300 310 307 294 275 275 250 225 31.1% 30.6% 29.7% 30.0% 30.1% 200 2006 2007 2008 2009 2010
Slide 18: Operating Profit (EBIT)
OPERATING PROFIT (EBIT) (before non-recurring charges in 2009) GOOD RECOVERY OF EBIT DESPITE HIGH RAW MAT MAT. PRICES Absolute in CHF mio mio. In % of NNTS 35 34 34 30 30 25 24 20 15 16 10 5 1 8% 1.8% 3 0% 3.0% 3 2% 3.2% 2 5% 2.5% 3 2% 3.2% 0 2006 2007 2008 2009 2010
Slide 19: Net Income
NET INCOME (before non-recurring charges in 2009) PROOF OF GOOD PERFORMANCE IN 1ST HALF 2010 Absolute in CHF mio mio. In % of NNTS 25 25 23 20 22 19 15 10 10 5 1 1% 1.1% 2 2% 2.2% 2 2% 2.2% 1 9% 1.9% 2 3% 2.3% 0 2006 2007 2008 2009 2010
Slide 20: Net Cash Position - Development
NET CASH POSITION - DEVELOPMENT POSITIVE CASH GENERATION + CHF 90 MIO VS. 31.12.09 Net cash & net cash movement in CHF Mio 700.0 600.0 +11 -15 226 -40 500.0 -92 400.0 446 300.0 356 200 0 200.0 100.0 109 70 0.0 2007 2008 2009 Operating Capital Currency CAPEX Dividend 2010 Cash Flow Incr. impact Paym.
Slide 21: Operating Cash Flow & CAPEX
OPERATING CASH FLOW & CAPEX OPER CASH FLOW REDUCED BY INVENTORY & RECEIVABLES OPER. Operating Cash Flow in CHF mio mio. CAPEX in CHF mio. 400 369 300 251 258 260 200 226 100 62 105 100 61 40 0 2006 2007 2008 2009 2010
Slide 22: 4 Material Cost Developments
4 MATERIAL COST DEVELOPMENTS
Slide 23: Cocoa Crop / Grinding Balance
COCOA CROP / GRINDING BALANCE OFFER / DEMAND ~ BALANCED OVER 4 YEARS Cocoa Beans ‚000‘ T 3'749 3'811 3'661 3'695 3'557 3'629 3 629 3'900 3'731 3'405 3'490 3'560 3'300 2'700 16.2% 2'100 5.5% 1'500 5.5% 42.4% 900 300 80 -256 15.5% -54 67 -69 -300 06/07 07/08 08/09 09/10 exp exp. 10/11 exp exp. Crop Gr
Slide 24: Cocoa Product Prices 07-10
COCOA PRODUCT PRICES 07 – 10 COCOA LONDON TERMINAL COCOA BUTTER RATIO GBP/TON RATIO MULT. 2'500 3.3 2'300 2'100 2.8 1'900 1'700 2.3 1'500 1'300 1.8 1'100 1.3 900 Mrz. J ul . N ov . Mrz . J ul . N ov . Mrz. J ul . N ov . Mrz. J ul . Mrz. Jul. Nov. Mrz. Jul. Nov. Mrz. Jul. Nov. Mrz. Jul. 07 07 07 08 0
Slide 25: Nuts Prices 07-10
NUTS PRICES 07 - 10 HAZELNUTS ALMONDS USD/TON CHF/TON 8'500 8'5 00 8'0 00 8'200 7'900 7'5 00 7'0 00 7'600 6'5 00 7'300 6'0 00 7'000 5'5 00 6'700 5'0 00 6'400 4'5 00 45 66'100 100 4'0 00 5'800 3'5 00 5'500 Aug. Okt . Dez. Feb. Apr. Jun. Aug. Okt . Dez. Feb. Apr. Jun. Aug. Okt . Dez. Feb. Apr. Jun. Ja
Slide 26: Milk Prices EU 07-10
MILK PRICES EU 07-10 UPWARD PRESSURE FOR SMP EUROPE SMP SWITZERLAND SMP EUROPE EUR/TON 4'500 4'000 3'500 3'000 2'500 2 500 2'000 1'500
Slide 27: Sugar Prices
1 Ja 200 400 600 800 1'000 1'200 400 1'400 n. 07 M USD/Ton rz .0 M 7 ai .0 Ju 7 l. S e 07 SUGAR PRICES p. N o 07 v. 0 Ja 7 n. 0 M 8 rz .0 M 8 ai .0 EU / CH Ju 8 l. S e 08 p. N o 08 v. 0 WORLD Ja 8 n. 0 M 9 rz .0 USA M 9 ai .0 Ju 9 l. S e 09 p. N o 09 v. 0 Ja 9 n. 1 M 0 rz .1 M 0 ai .1 Ju 0 l. 10
Slide 28: Material Costs Overview
MATERIAL COSTS OVERVIEW COCOA PRODUCTS - Cocoa Beans Terminal Market Range GBP 1’900 – 2’4000 / high vola - Cocoa C B Beans Differentials Diff ti l St bl Stable - Cocoa Butter Ratio Recovering from lows - Cocoa Powder Ratio Coming down from record highs OTHER RAW MATERIALS - Milk CH: stable / EU and
Slide 29: Outlook 2010
6 OUTLOOK 2010
Slide 30: Outlook 2010 - Focus Is to Invest for Future Growth
OUTLOOK 2010 – FINANCIAL GUIDANCE FOCUS IS TO INVEST FOR FUTURE GROWTH MARKET FOCUS 2010 / 11 _ Limited price increases only depending on market / FX / inflation _ Priority on market share gains _ Participate p in strategic g p promotional activities to g grow volume _ Continue investments behind ne
Slide 31: Financial Guidance 2010 & Growth Expectations 2011
FINANCIAL GUIDANCE 2010 & GROWTH EXPECTATIONS 2011 FULL CONFIRMATION OF GUIDANCE GIVEN ALREADY IN MARCH 2010 Topics Full Year Guidance Organic Growth 5–7% EBIT CHF 300 – 340 mio. CAPEX CHF 120 – 140 mio. Continued high g cash g generation 2011: Top p line growth g back to mid/long-term g rate of 6 –
Slide 32: Questions & Answers
7 QUESTIONS & ANSWERS
Slide 33: 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 statements. Potenti
Slide 34: Investor Presentation 2010
BA LINDT & SPRUNGLI INVESTOR PRESENTATION 2010
Chocoladefabriken Lindt & Sprüngli — H1 2010 Earnings Presentation on 6ix