Chocoladefabriken Lindt & Spruengli Ag · SIX:LISN

Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — FY2011 Earnings Presentation

44 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Mar 1, 2012

  1. Slide 1: Financial Analysts Conference – Annual Results 2011

    FINANCIAL ANALYSTS CONFERENCE ANNUAL RESULTS 2011

  2. Slide 2: Agenda

    AGENDA RESULT PRESENTATION 2011 1 HIGHLIGHTS  Key Figures  Update Share Buy-Back 2 BUSINESS REVIEW  Sales Analysis & Markets  Success Factors & Geographical Expansion 3 FINANCIALS  Operating Performance  Raw Materials & Packaging  Corporate Social Responsibility 4 OUTLOOK 4 Outlook 2012  Gui

  3. Slide 3: Business Review: Key Figures

    BUSINESS REVIEW KEY FIGURES

  4. Slide 4: Key Figures P&L

    KEY FIGURES P&L RESULTS FULLY IN-LINE WITH GUIDANCE CHF mio. Organic growth Growth Margin in CHF improvement Net Net Trade 2‘489 +6.0% -3.5% Sales EBITDA 421.9 +9.7% -0.3% +60 BP Margin: 17.0% EBIT 328.7 +11.5% +1.0% +60 BP Margin: 13.2% NET INCOME 246.5 +13.7% +1.9% +50 BP Margin: 9.9% 4 FY2011 Fin

  5. Slide 5: Key Figures – B/S

    KEY FIGURES – B/S CONTINUED SOLID BALANCE SHEET FOLLOWING SHARE BUY-BACK Equity CHF mio. Equity B/S ratio in % Net Cash Y/E CHF mio. 1.700 550 66,0% 540 1.673 66,2% 500 1.600 1.618 1.619 65.3% 64,0% 450 486 64,4% 1.500 62,0% 400 350 60,0% 356 1.400 300 58,0% 250 1.300 56,0% 200 1.200 150 54,0% 100 1

  6. Slide 6: Key Figures – Share Performance

    KEY FIGURES – SHARE PERFORMANCE L&S SHARES OUTPERFORMING SMI L&S +4.3% or CHF 31‘390 at 31.12.2011 33.000 32.000 31.000 30.000 29.000 SMI -7.8% at 31.12.2011 28.000 27.000 26.000 25.000 24.000 Jan 11 Mai 11 Jul 11 Sep 11 Aug 11 Okt 11 Feb 11 Jun 11 Nov 11 Dez 11 Mrz 11 Apr 11 Source VWD, bi-weekly s

  7. Slide 7: Key Figures – Dividend / Pay-out Ratio / Capitalization

    KEY FIGURES – DIVIDEND / PAY-OUT RATIO / CAPITALIZATION DIVIDEND DISBURSEMENT +11.1% y-o-y (WITHHOLDING-TAX-FREE) PAYOUT RATIO 47.2 1992 2008 2009 2010 2011 Dividend Reg. Share (CHF) 39 360 400 450 500* – Increase (CHF) 2 30 40 50 50 Dividend Yield Reg. 1.4% 1.6% 1.6% 1.5% 1.6% Pay-Out Ratio 16.9% 3

  8. Slide 8: Share Buy-Back

    SHARE BUY-BACK GOOD PROGRESS OF PROGRAM  Buy-back program started a year ago has well progressed  As per 18.2.2012, purchase of 3.8% (of max. 5%) of shares and PCs with a value of CHF 248 mio.  Cancellation of 3„300 resp. 53„000 of purchased shares / PCs will be proposed to the General Assembly a

  9. Slide 9: Business Review: Sales Analysis / Markets

    BUSINESS REVIEW SALES ANALYSIS / MARKETS

  10. Slide 10: Sales Analysis

    SALES ANALYSIS NEGATIVE SWISS FRANC FX IMPACT 2011: -9.5% y-o-y Absolute in CHF mio. Increase vs. p.y. in local currencies 3.000 2.500 2.606 2.573 2.525 2.579 2.489 2.000 1.500 1.000 500 10.7% 4.9% 2.3% 7.3% 6.0% 0 2007 2008 2009 2010 2011 10 FY2011 Financial Analysts' Conference

  11. Slide 11: Sales Analysis – Drivers

    SALES ANALYSIS – DRIVERS DYNAMIC VOLUME GROWTH 2011 8,0% 7,0% 6,0% 6.0% - 9.5% 5,0% 4,0% 5.0% 3,0% 2,0% Sales 1,0% in CHF 1.0% 0,0% Price/Mix Volume Organic FX -1,0% 2.2 % -2,0% -3,0% -3.5% -4,0% 11 FY2011 Financial Analysts' Conference

  12. Slide 12: Sales Analysis – Markets

    SALES ANALYSIS – MARKETS TOTAL NNTS 2011: CHF 2‟579 mio. Northamerica 5,7% 7,3% Germany 27,8% 4,8% CH incl. Export France 11,0% Italy UK 12,8% 17,5% Rest Europe 13,1% Rest World 12 FY2011 Financial Analysts' Conference

  13. Slide 13: Organic Sales Growth by Regional Segment

    ORGANIC SALES GROWTH BY REGIONAL SEGMENT Europe: +5.9% North America: +7.8% 12,0% 10,0% 9,0% +9.7% 10,0% +10.3% 8,0% 8,0% 7,0% 6,0% +7% 6,0% 5,0% 4,0% 4,0% +3.9% 3,0% +3% 2,0% 2,0% +1.4% 1,0% 0,0% 0,0% Lindt IT: +5.2% Lindt USA: +8.7% Caffarel: -2.2% Ghirardelli: +10.5% 13 FY2011 Financial Analysts'

  14. Slide 14: Success Factors & Geographical Expansion

    SUCCESS FACTORS & GEOGRAPHICAL EXPANSION SUSTAINABLE GROWTH POTENTIAL FOR THE FUTURE

  15. Slide 15: Success Factors – Strategy

    SUCCESS FACTORS STRATEGY  Solid Business Model • Highest quality, exclusive premium-positioning, marketing-excellence, proprietary production processes, focussed growth strategy  Established „Mature“ Markets • Growth via gain of market shares thanks to quality, innovation, communication (marketing

  16. Slide 16: Geographical Expansion – Retail Strategy

    GEOGRAPHICAL EXPANSION RETAIL STRATEGY with 4 BASE-CONCEPTS LINDT WAREHOUSE STORES LINDT CHOCOLATE OUTLETS LINDT BOUTIQUES DU CHOCOLAT LINDT CHOCOLATE CAFES 16 FY2011 Financial Analysts' Conference

  17. Slide 17: Financials: Operating Performance

    FINANCIALS OPERATING PERFORMANCE

  18. Slide 18: Material Costs

    MATERIAL COSTS SLIGHT DECREASE OF MATERIAL COST MARGIN Absolute in CHF mio. In % of NNTS 1.000 921,2 940,0 892.4 912,8 800 864,0 600 400 200 33.2% 35.8% 35.7% 36.4% 35.9% 0 2007 2008 2009 2010 2011 18 FY2011 Financial Analysts' Conference

  19. Slide 19: Headcount & NNTS per Employee

    HEADCOUNT & NNTS PER EMPLOYEE HEAD COUNT INCREASE +2.7% VS. VOLUME +5.0% / SALES +6.0% Average number of employees NNTS per employee in CHF (`000) 8.000 7.793 7’779 7.712 7.572 7.000 7.409 6.000 5.000 4.000 334 334 341 341 320 3.000 2007 2008 2009 2010 2011 19 FY2011 Financial Analysts' Conference

  20. Slide 20: Personnel Expenditure

    PERSONNEL EXPENDITURE EFFICIENCY GAINS REDUCING COST MARGIN Personnel exp. in CHF mio. Personnel exp. in % NNTS 600 596 572 565 500 545 541 400 300 200 100 22.9% 21.2% 22.6% 21.9% 21.7% 0 2007 2008 2009 2010 2011 20 FY2011 Financial Analysts' Conference

  21. Slide 21: Operating Expenses

    OPERATING EXPENSES CONTINUOUS INCREASE IN MARKETING INVESTMENTS Absolute in CHF mio. In % of NNTS 800 714 659 672 664 600 644 400 200 27.3% 25.6% 26.6% 25.7% 25.9% 0 2007 2008 2009 2010 2011 21 FY2011 Financial Analysts' Conference

  22. Slide 22: EBITDA

    EBITDA ORGANIC GROWTH RATE vs. 2010: +9.7% MARGIN INCREASE vs. 2010: +60 BP Absolute in CHF mio. In % of NNTS 500 461 400 444 422 423 382 300 200 100 17.1% 17.9% 15.1% 16.4% 17.0% 0 2007 2008 2009 2010 2011 22 FY2011 Financial Analysts' Conference

  23. Slide 23: Depreciation / Impairments

    DEPRECIATION / IMPAIRMENTS STABILIZATION AT LONG TERM LEVEL Absolute in CHF mio. in % of NNTS 120 117,3 100 99,3 98.0 93,5 80 93,2 60 40 20 3.6% 3.9% 4.6% 3.8% 3.7% 0 2007 2008 2009 2010 2011 23 FY2011 Financial Analysts' Conference

  24. Slide 24: EBIT

    EBIT ORGANIC GROWTH RATE vs. 2010: +11.7% MARGIN INCREASE vs. 2010: +60 BP Absolute in CHF mio. in % of NNTS 350 361,2 300 350,8 325,3 328.7 250 264,8 200 150 100 50 13.5% 14.0% 10.5% 12.6% 13.2% 0 2007 2008 2009 2010 2011 24 FY2011 Financial Analysts' Conference

  25. Slide 25: Net Financial Expenses

    NET FINANCIAL EXPENSES SUCCESSFUL RISK MANAGEMENT IN HIGH VOLATILITY ENVIRONMENT Absolute in CHF mio. 10 10.5 5 2.8 1.8 0.1 1.3 0.1 0 2007 2008 2009 2010 2011 25 FY2011 Financial Analysts' Conference

  26. Slide 26: Net Income

    NET INCOME ORGANIC GROWTH RATE vs. 2010: +13.7% MARGIN INCREASE vs. 2010: +50 BP Absolute in CHF mio. In % of NNTS 300 250 261,5 246.5 250,5 200 241,9 193,1 150 100 50 9.6% 10.2% 7.6% 9.4% 9.9% 0 2007 2008 2009 2010 2011 26 FY2011 Financial Analysts' Conference

  27. Slide 27: Corporate Tax Rate

    CORPORATE TAX RATE RECORD LOW TAX RATE Tax Rate in % 33% 32.6% 31.4% 30% 29.8% 29.7% 29.0% 28% 28.0% 26.6% 25% 25.4% 25.3% 25.0% 23% 20% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 27 FY2011 Financial Analysts' Conference

  28. Slide 28: Net Liquidity – Development

    NET LIQUIDITY – DEVELOPMENT MAINTAINED HIGH LIQUIDITY DESPITE SHARE BUY-BACK Net cash in CHF mio. +345 +36 -104 900.0 -104 800.0 -220 700.0 600.0 -7 500.0 540 400.0 486 300.0 356 200.0 100.0 0.0 2009 2010 Operative Capital CAPEX Dividend Share Buy Other 2011 Cash Flow Increase Back 28 FY2011 Financi

  29. Slide 29: Financials: Raw Materials & Packaging

    FINANCIALS RAW MATERIALS & PACKAGING

  30. Slide 30: Cocoa Crop / Grinding Balance

    COCOA CROP / GRINDING BALANCE RECORD HARVEST IN 2010/11 – CONTINUOUS DEMAND GROWTH Cocoa Beans in '000 t 4.500 4.251 4.050 3.867 3.946 4.000 3.591 3.512 3.632 3.716 3.500 3.000 16.2% 2.500 5.5% 2.000 5.5% 42.4% 1.500 1.000 500 341 43 15.5% - -120 -143 -500 2008/09 2009/10 2010/11* 2011/12* *estimate

  31. Slide 31: Cocoa Product Prices 2008 – 2012

    COCOA PRODUCT PRICES 2008 – 2012 BEAN MARKET REFLECTING LOWER BUTTER RATIO DUE TO OVERSUPPLY HIGH POWDER DEMAND LONDON TERMINAL BUTTER RATIO GBP / Ton 3,10 2.600 2.400 2,80 2.200 2,50 2.000 2,20 1.800 1,90 1.600 1.400 1,60 1.200 1,30 1.000 1,00 31 FY2011 Financial Analysts' Conference

  32. Slide 32: Nut & Almond Prices 2008 – 2012

    NUT & ALMOND PRICES 2008 – 2012 AVG. HARVEST IN 2011 STABLE MARKET PLUS SPEC ELEMENTS USD / Ton Hazelnuts Almonds USD / Ton 9.000 7.500 8.500 7.000 8.000 7.500 6.500 7.000 6.000 6.500 6.000 5.500 5.500 5.000 5.000 4.500 4.500 4.000 4.000 32 FY2011 Financial Analysts' Conference

  33. Slide 33: Milk Prices Switzerland, Europe & World 2010 – 2012

    MILK PRICES SWITZERLAND, EUROPE & WORLD 2010 – 2012 MILKPOWDER 26% in EURO / t 5.750 5.500 5.250 5.000 4.750 4.500 4.250 4.000 EUR / Ton 3.750 3.500 3.250 3.000 2.750 2.500 2.250 2.000 Source: VWD-Data, BLW Referenzpreise CH EU World 33 FY2011 Financial Analysts' Conference

  34. Slide 34: Sugar Prices Switzerland, Europe & World 2010 – 2012

    SUGAR PRICES SWITZERLAND, EUROPE & WORLD 2010 – 2012 SUGAR PRICES IN USD / t 1.500 1.400 1.300 1.200 1.100 1.000 900 800 USD / Ton 700 600 500 400 300 200 CH / EU in USD USD West coast cane sugar Sources: CH/EU: Market Offers, USA: Milling&Baking News, World: White Sugar London, Forex: VWD-Data 34 F

  35. Slide 35: Corporate Social Responsibility & Sustainability

    BUSINESS REVIEW CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY

  36. Slide 36: Corporate Social Responsibility & Sustainability

    CORPORATE SOCIAL RESPONSIBILITY & SUSTAINABILITY INTEGRAL PART OF THE PREMIUM BRAND LINDT http://www.lindt.com/ch/swf/ger/das-unternehmen/social-responsibility/  Large involvement in all aspects of corporate activities  Clearly formulated guidelines for groups and suppliers  Full control of purch

  37. Slide 37: Sustainability – Cocoa Beans

    SUSTAINABILITY – COCOA BEANS ACTIVITIES 2011 Traceability and social projects  Ghana – 100 % traceable • Verified traceability in 2011 • Premium of USD 1.2 mio. paid • Implemented social projects: www.sourcetrust.org Water supply, schools, malaria prophylaxis Education: “Village Resource Centers” •

  38. Slide 38: Sustainability – Environment

    SUSTAINABILITY – ENVIROMENT ACTIVITIES 2011 Energy Objective: Reduction of CO2 emissions p.a. 2% / barrel  Objective achieved  Solar panels 4‟250 m2 L&S Italy • Power generation: 320 Mwh/year • Reduction CO2 emissions: 214 t / p.a.  Roof isolation L&S Germany • Power saving: 110‟000 KWh p.a.  He

  39. Slide 39: Sustainability Activities 2011

    SUSTAINABILITY ACTIVITIES 2011 Other projects:  Health & Safety: Good progress thanks to group-wide focus program  Supplier Audits: Packaging material supplier audit in China  Palm oil: 100% certified purchases ('Book & Claim„) for small required L&S volumes for selected praline fillings  Consum

  40. Slide 40: Outlook 2012

    OUTLOOK 2012

  41. Slide 41: Outlook 2012 – Market Environment

    OUTLOOK 2012 MARKET ENVIRONMENT – Continued Challenges  Debt Crisis  Weak macro-economics  Unemployment, depressed consumer sentiment  Increased price sensibility of consumers  Reluctant trade partners & increased gains of private label  Continued high volatility for raw materials and currenci

  42. Slide 42: Outlook 2012 – Mid- to Long-Term Targets

    OUTLOOK 2012 CONFIRMATION OF EXISTING MID- TO LONG TERM STRATEGIC TOP- AND BOTTOM LINE TARGETS • Organic sales growth +6–8% + 20 – 40 • EBIT margin improvement basis points continued high cash generation 42 FY2011 Financial Analysts' Conference

  43. Slide 43: 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

  44. Slide 44: Financial Analysts Conference – Annual Results 2011

    FINANCIAL ANALYSTS CONFERENCE ANNUAL RESULTS 2011

Chocoladefabriken Lindt & Sprüngli — FY2011 Earnings Presentation on 6ix