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Chocoladefabriken Lindt & Spruengli — Chocoladefabriken Lindt & Sprüngli — H1 2014 Earnings Presentation
35 slides from Chocoladefabriken Lindt & Spruengli's earnings presentation, Aug 19, 2014
Slide 1: Investor Presentation Half Year 2014
INVESTOR PRESENTATION HALF YEAR 2014
Slide 2: Agenda
AGENDA • Performance Highlights HY2014 • Environment HY2014 • P&L and B/S Details HY2014 • Acquisiton q Russell Stover Candies,, Inc.,, USA • Raw Materials • Outlook 2014 • Questions & Answers 2 1H2014 - Investor Presentation – August 19, 2014
Slide 3: Performance Highlights HY2014
HALF YEAR 2014 Performance Highlights HY2014 3 1H2014 - Investor Presentation – August 19, 2014
Slide 4: Performance Highlights HY2014
Performance Highlights HY2014 CHF million Net Net Trade Sales 1‘200 • Organic g + 9.2% • Swiss Francs + 6.0% EBITDA 128.0 CHF +14.0 million vs. p.y. + 12.3% EBIT 77.1 CHF +11.6 million vs. p.y. + 17.7% NET INCOME 55.8 CHF +7.0 million vs. p.y. + 14.3% NET LIQUIDITY 644.2 CHF -79.3 million vs. 31.12.
Slide 5: Key Figures
Key Figures NET LIQUIDITY ABSORBTION VS. YEAR END - DUE TO CAPEX AND DIVIDEND PAYMENTS Equity Equity B/S ratio Net Financial Position (in CHF million) (in %) (in CHF million) 2'800 74.0% 750 72.0% 700 724 2'700 70.0% 70.6% 650 2'600 2'635 2'631 644 68.0% 67.9% 600 2'500 66 0% 66.0% 550 64.0% 2'400 5
Slide 6: Environment HY 2014
HALF YEAR 2014 Environment HY 2014 6 1H2014 - Investor Presentation – August 19, 2014
Slide 7: Environment
Environment ECONOMIES • Positive economic signals in North America & U.K. • Stabilisation in rest of Europe CONSUMERS • Continued trend to premium products • Consumers ready to spend for quality & innovation • Slightly improving consumer sentiment in Southern Europe CHOCOLATE MARKETS • Low growth in
Slide 8: P&L and B/S Details HY2014
HALF YEAR 2014 P&L and B/S Details HY2014 8 1H2014 - Investor Presentation – August 19, 2014
Slide 9: Overview – P&L and B/S Details HY2014
Overview – P&L and B/S Details HY2014 S O G PROFIT STRONG O IMPROVEMENT O FOLLOWING O O G GOOD GOO SALES S S GROWTH G O Net Net Trade Sales EBIT Net Income CHF 1‘200 million CHF 77.1 million CHF 55.8 million +6.0% in CHF + 17.7 % + 14.3 % +9 2% in local curr. +9.2% curr 80 60 1'200 77.1 55.8 1'200 7
Slide 10: Sales Analysis – 5 Years in Swiss Francs
Sales Analysis – 5 Years in Swiss Francs CONTINUED SOLID GROWTH IN SWISS FRANCS Absolute in CHF million Growth in CHF 1'200 1 200 1'100 1'132 1'057 1'033 1'007 900 700 500 7.9% -4.5% 4.5% 2.6% 9.6% 6.0% 300 2010 2011 2012 2013 2014 10 1H2014 - Investor Presentation – August 19, 2014
Slide 11: Sales Analysis – 5 Years in Local Currencies
Sales Analysis – 5 Years in Local Currencies ORGANIC GROWTH: GROWTH RECORD HALF YEAR GROWTH (EXCLUDING EXTRAORDINARY 2010) Absolute in CHF million In local currencies 2‘520 1'200 1 200 1'100 1'099 1'011 900 960 90 905 700 500 9.2% 6.1% 5.3% 8.7% 9.2% 300 2010 2011 2012 2013 2014 11 1H2014 - Investor
Slide 12: Sales Analysis – Drivers
Sales Analysis – Drivers ORGANIC SALES GROWTH MAINLY DRIVEN BY VOLUME INCREASE - (LOW PRICE / MIX EFFECTS) 10.0% 9.0% 0.7% 9 2% 9.2% 3 2% 3.2% 8.0% 8.5% 7.0% 6 0% 6.0% 6.0% 5.0% 4.0% 3 0% 3.0% 2.0% 1.0% 0.0% Volume Price/Mix Organic Forex Reported in CHF 12 1H2014 - Investor Presentation – August 19
Slide 13: Sales Analysis – Split of Markets
Sales Analysis – Split of Markets TOTAL O NNTS: S CHF C 1’200 million 7.6% North America 7.3% 26.8% Germany 6.4% CH incl. Exports 2014 France CHF 1‘200 million 9.2% Italy UK 19.1% 11.5% Rest of Europe 12 1% 12.1% R t off the Rest th World W ld 13 1H2014 - Investor Presentation – August 19, 2014
Slide 14: Sales Analysis – Markets
Sales Analysis – Markets ACCELERATED GROWTH IN EUROPE AND NAFTA NAFTA, DOUBLE DIGIT IN THE REST OF THE WORLD Europe NAFTA Rest of World 8.0% 16.0% 16.0% 6.0% 12.0% 12.0% 4.0% 8.0% 8.0% 2.0% 4.0% 4.0% 4.0% 5.8% 6.9% 12.7% 13.7% 14 1% 14.1% 11 3% 11.3% 0.0% 0.0% 0.0% 1H 2013 1H 2014 1H 2013 1H 2014 1H
Slide 15: Material Costs including +/- Change in Inventory
Material Costs including +/‐ Change in Inventory INCREASE OF COST MARGIN MAINLY DRIVEN BY HIGHER PRICES FOR COCOA PRODUCTS Absolute in CHF million In % of NNTS 425 423 400 375 383 379 350 358 354 325 300 275 250 225 36.2% 35.2% 34.7% 33.4% 35.2% 200 2010 2011 2012 2013 2014 15 1H2014 - Investor Pres
Slide 16: Personnel Expenditure
Personnel Expenditure LOW PERSONNEL EXPENSE RATIO THANKS TO EFFICIENCY GAINS Personnel exp. in CHF million Personnel exp. in % NNTS 350 300 309 306 279 277 250 267 200 150 26.4% 26.5% 26.8% 27.0% 25.8% 100 2010 2011 2012 2013 2014 16 1H2014 - Investor Presentation – August 19, 2014
Slide 17: Headcount & NNTS / Employee
Headcount & NNTS / Employee AVG. NO OF EMPLOYEES INCREASING BY 558 FTE (+6.8%) AVG ( 6 8%) – MAINLY IN MANUFACTURING DUE TO VOLUME GROWTH Average number of employees 9'000 8'500 8'745 8'000 8'187 7'500 7'450 7'000 7'160 6'984 6'500 6'000 5'500 5'000 4'500 4 500 4'000 2010 2011 2012 2013 2014 17 1H20
Slide 18: Operating / Marketing Expenses
Operating / Marketing Expenses CONTINUED INCREASE IN BRAND SUPPORT - UNDERPROPORTIONAL GROWTH IN SALES AND ADMINISTRATION Absolute in CHF million In % of NNTS 350 348 338 325 318 300 309 301 275 250 225 30.1% 29.9% 30.0% 29.8% 29.0% 200 2010 2011 2012 2013 2014 18 1H2014 - Investor Presentation – Au
Slide 19: Operating Profit (EBIT)
Operating Profit (EBIT) EBIT DEVELOPMENT DRIVEN BY OPERATING EFFICIENCY GAINS AND VOLUME GROWTH Absolute in CHF million In % of NNTS 80 70 77 60 66 50 40 46 42 30 34 20 10 3 2% 3.2% 4 2% 4.2% 4 5% 4.5% 5 8% 5.8% 6 4% 6.4% 0 2010 2011 2012 2013 2014 19 1H2014 - Investor Presentation – August 19, 2014
Slide 20: Net Income
Net Income SOUND PROFITABILITY IN FIRST HALF 2014 Net income in CHF million In % of NNTS 60 56 50 49 40 30 35 32 20 25 10 2.3% 3.2% 3.4% 4.3% 4.7% 0 2010 2011 2012 2013 2014 20 1H2014 - Investor Presentation – August 19, 2014
Slide 21: Operating Cash Flow & CAPEX
Operating Cash Flow & CAPEX HIGH INVESTMENT IN CAPEX TO SUPPORT FURTHER GROWTH Operating Cash Flow in CHF million CAPEX in CHF million 250 226 228 200 211 1 1 171 150 159 100 50 40 42 65 84 105 0 2010 2011 2012 2013 2014 21 1H2014 - Investor Presentation – August 19, 2014
Slide 22: Net Financial Position - Development
Net Financial Position ‐ Development NET FINANCIAL POSITION DECREASED VS. VS YEAR END BY 80 MILLION DUE TO DIVIDEND PAYMENT & HIGH CAPEX Net cash and net cash movement in CHF million 1'100.0 1'000 0 1'000.0 900.0 49 105 895 42 800.0 171 839 797 148 700 0 700.0 5 724 724 600.0 649 644 644 500.0 543 4
Slide 23: Acquisition Russell Stover Candies, Inc., USA
HALF YEAR 2014 Acquisiton Russell Stover Candies, Inc., USA 23 1H2014 - Investor Presentation – August 19, 2014
Slide 24: Acquisition Russell Stover Candies, Inc., USA
Acquisition Russell Stover Candies, Inc., USA COMPANY FACTS • Head-Office in Kansas City • Russell R ll St Stover G Group with ith 2‘700 employees l • 4 Plants 2 in Kansas 1 in Texas 1 in Colorado • NNTS 2013 USD 502m • 3 Brands: Russell Stover Whitman‘s Pangburn‘s NEXT STEPS • Expected closing afte
Slide 25: Raw Material
HALF YEAR 2014 Raw Material 25 1H2014 - Investor Presentation – August 19, 2014
Slide 26: Cocoa Crop / Grinding Balance
Cocoa Crop / Grinding Balance 16.2% 5.5% 5.5% 42.4% 15.5% -180 26 1H2014 - Investor Presentation – August 19, 2014
Slide 27: Cocoa Product Prices 2011 - 2014
Cocoa Product Prices 2011 ‐ 2014 27 1H2014 - Investor Presentation – August 19, 2014
Slide 28: Nut & Almond Prices 2011 - 2014
Nut & Almond Prices 2011 ‐ 2014 28 1H2014 - Investor Presentation – August 19, 2014
Slide 29: Milk Prices Europe, Switzerland & World 2010 - 2014
Milk Prices Europe, Switzerland & World 2010 ‐ 2014 29 1H2014 - Investor Presentation – August 19, 2014
Slide 30: Sugar Prices 2010 - 2014
Sugar Prices 2010 ‐ 2014 30 1H2014 - Investor Presentation – August 19, 2014
Slide 31: Outlook 2014
HALF YEAR 2014 Outlook 2014 31 1H2014 - Investor Presentation – August 19, 2014
Slide 32: Outlook 2014 – Financial Guidance
Outlook 2014 – Financial Guidance INVESTING FOR FUTURE GROWTH MARKET FOCUS 2014 • Focus on market share gains • Build on good growth trend in all markets • Continue strong support of newly opened markets Brazil, China, Japan • Dynamic growth and strong expansion of „Global Retail“ CONTINUATION OF MA
Slide 33: Mid to Long Term Financial Guidance
Mid to Long Term Financial Guidance UNCHANGED MID MID-TO TO LONG TERM FULL YEAR SALES AND PROFIT TARGETS Organic Growth 6 – 8 % p.a. ((*)) EBIT margin + 20 to 40 basis points (*) CAPEX 2014 CHF > 250 million illi C ti Continued d hi high h cash h generation ti (*) Present Lindt business i.e. excludi
Slide 34: 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.
Slide 35: Questions & Answers
HALF YEAR 2014 Questions & Answers 35 1H2014 - Investor Presentation – August 19, 2014
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