Lindt & Sprüngli LINDT & SPRÜNGLI. Half-Year Results 2009

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1 Lindt & Sprüngli Half-Year Results HALF YEAR RESULTS 2009

2 Half-Year Results 2009 Introduction 2 HALF YEAR RESULTS 2009

3 HY Results 2009 Introduction ENVIRONMENT HY 2009: General factors Consumers: Increasingly signs of gain in confidence in most markets Trade: Confectionery factors Volume: Volume decline in major chocolate markets due to price increases by industry Lindt-specific factors Tough com- Loss of 2 trade partners in U.K. (bankruptcy 08) / 1 in parable vs.08: Spain (strategy change) and first closures of US stores PLB / Disc.: End of de-stocking / Still prudent purchasing / Discounters Input costs: Substantial increase of Cocoa prices Forex: Strong CHF i.e. weak Dollar currencies / GBP / Euro Travel Retail: Suffering from lower traffic Temporary move to discounters and PLB 3 HALF YEAR RESULTS 2009

4 HY Results 2009 Introduction LINDT ACHIEVEMENTS HY 2009: SALES & PROFITS Sales development fully in line with guidance March 2009 EBIT & Net Income before & after non-recurring charges - fully in line with guidance March 2009 Market share gains in most markets Good sales development in anglo-saxon markets Good sales development at Easter 2009 Continued high level of brand investment for future growth in all markets CASH FLOW / BALANCE SHEET Strong Cash flow generation Net Financial Position CHF 312 Mio (+ 141 Mio vs. HY 08) Strong Balance Sheet 4 HALF YEAR RESULTS 2009

5 HY Results 2009 Introduction Implementation New Sales Definition for HY 09: Payments to the trade are reported as deduction from sales. These expenses have previously been reported as operating expenses. New Sales Definition follows trend of most major consumer goods companies and allows better comparison of margins New Sales Definition is in line with US GAAP. Alignment of IFRS to US GAAP is expected in the near future. No impact on balance sheet, profit and cash flow Impact re-statement of 2008 HY sales figures CHF Mio or 11.7 % 5 HALF YEAR RESULTS 2009

6 HY Results 2009 Introduction New Sales Definition Netting of payments to trade: Restatement of 2008 half year comparatives: CHF million as published adjusted Change Sales 1' ' Other income Total income 1' ' Material expenses Changes in inventories Personnel expenses Operating expenses Depreciation, amortization and impairment Total expenses -1' ' Operating profit Net financial result Income before taxes Taxes NET INCOME HALF YEAR RESULTS 2009

7 Half-Year Results 2009 P&L / BS Highlights 7 HALF YEAR RESULTS 2009

8 HY 09: P&L Highlights NTS & Profitability in line with 2009 guidance Net Trade Sales* (CHF m) CHF 979 Mio EBIT before nonrecurring charges (CHF m) CHF 24.1 Mio Net Inc. before nonrecurring charges (CHF m) pro forma est. CHF 18.6 Mio ,6 22, , * Growth in local currencies + 0,2% 8 HALF YEAR RESULTS 2009

9 HY 09: BS Highlights vs. Y.E STRONG B/S & HIGH CASH GENERATION Equity * CHF Mio ,0% 66,0% 65,0% 64,0% Equity B/S ratio in % 66,8% Net Cash CHF Mio ,0% 62,0% 61,0% 61,4% ,0% * Purchase own shares 09: CHF 30 Mio 9 HALF YEAR RESULTS 2009

10 Consolidated NTS Growth in CHF SWISS FRANC SALES NEGATIVELY IMPACTED BY STRONG FX absolute in CHF millions increase vs. previous year in % of CHF 1' ' ' % 14.7% 2.1% -5.4% HALF YEAR RESULTS 2009

11 Consolidated NTS Organic Growth POSITIVE ORGANIC GROWTH IN MOST DIFFICULT ENVIRONMENT 1'200 absolute in CHF millions increase vs. previous year in local currencies ' ' % 12.3% 6.9% 0.2% HALF YEAR RESULTS 2009

12 SALES ANALYSIS - DRIVERS GROWTH HY 2009 LIMITED BY DE-STOCKING / LOW CONSUMER CONFIDENCE AND FOREX 2.00% 1.00% 0.00% Volume Mix Price Organic Forex Reported +0,2% -1.00% -2,8% +4,0% -2.00% -3.00% -1,0% -5.6% -5,4% -4.00% -5.00% -6.00% 12 HALF YEAR RESULTS 2009

13 Net Trade Sales Split by Market 2009 Total HY 2009: 979 CHF million 21.7% 7.4% 5.3% 8.7% 13.0% 12.6% 10.6% 20.7% Switzerland / Export Germany France Italy UK Rest of Europe USA Others 13 HALF YEAR RESULTS 2009

14 Material costs / Inventory changes MATERIAL COSTS SUFFERING FROM HIGH COCOA PRICES absolute in CHF millions and in % of NTS % 34.5% 35.8% 38.1% HALF YEAR RESULTS 2009

15 Personnel Expenses FLEXIBLE REACTION TO CHANGED ENVIRONMENT absolute in CHF millions and in % of NTS % 28.0% 27.4% 26.7% HALF YEAR RESULTS 2009

16 Headcount and NTS per Employee Average number of employees and NTS per employee in CHF ('000) HALF YEAR RESULTS 2009

17 Operating/Marketing Expenses MAINTAINED MARKET INVESTMENTS absolute in CHF millions and in % of NTS % 30.6% 29.7% 30.0% HALF YEAR RESULTS 2009

18 Depreciation EXCLUDING NON-RECURRING IMPAIRMENT: CHF 47.5 Mio / 4.9% absolute in CHF millions and in % of NTS % 4.5% 4.5% 5.7% HALF YEAR RESULTS 2009

19 Operating Profit (EBIT) LIKE-FOR-LIKE DECLINE VS. P.Y. DUE TO FX & MATERIAL COSTS absolute in CHF millions and in % of NTS % 3.0% 3.2% % before non-rec. charges 0.2% 2009 after nonrec. charges 19 HALF YEAR RESULTS

20 HY Results 2009 EBIT Margin Bridge EBIT Margin (bef. non rec. charges): -70 bp (-50bp at constant currencies) 5.0% 4.5% 4.0% +0.9% -2.3% 3.5% +0.7% 3.0% 2.5% 2.0% 1.5% +3.2% +2.5% -2.3% 1.0% 0.5% 0.0% EBIT 2008 Personnel Exp. + Oper.Exp. - Deprec. Material Costs / Inventory change EBIT 2009 bef. nonrecurr. charges Nonrecurring charges 0.2% EBIT HALF YEAR RESULTS 2009

21 HY Results 2009 Extraordinary Extraordinary, Non-Recurring Charges booked in HY 2009 P&L Charges: Total CHF 22.2 Mio whereof: Store closures L&S USA: (Operating Expenses) Impairment Warehouse building Italy: (Depreciation) CHF 14.7 Mio CHF 7.5 Mio 21 HALF YEAR RESULTS 2009

22 Net Income LIKE LIKE FOR LIKE VS. P.Y.: POSITIVE IMPACT OF FINANCIAL RESULT absolute in CHF millions and in % of NTS % 2.2% 2.2% % "pro forma" bef. non-rec. charges 22 HALF YEAR RESULTS % 2009 after non-rec. charges

23 MATERIAL COST DEVELOPMENT 23 HALF YEAR RESULTS

24 COCOA CROP / GRINDING BALANCE Cocoa Beans '000' t 3'870 3'270 2'670 2'070 1' '654 3'6093'720 3' % 5.5% 5.5% 15.5% 42.4% 3'461 3'570 3'428 3' /07 07/08 08/09 09/ Crop Grindings Surpl./Deficit 24 HALF YEAR RESULTS 2009

25 COCOA PRODUCT PRICES COCOA LONDON TERMINAL March07 August 09 BUTTER RATIO March07 August 09 GBP/TON 2'100 RATIO MULT ' ' ' ' ' Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul Mr z. 07 Jul. 07 Nov. 07 Mr z. 08 Jul. 08 Nov. 08 Mr z. 09 Jul HALF YEAR RESULTS 2009

26 MILK PRICES EU MILK PRICES SMP EUROPE / SWITZERLAND EUR/100KG SMP SWITZERLAND SMP EUROPE 4'200 4'000 3'800 3'600 3'400 3'200 3'000 2'800 2'600 2'400 2'200 Mrz. 07 Jun. 07 Sep. 07 Dez. 07 Mrz. 08 Jun. 08 Sep. 08 Dez. 08 Mrz. 09 Jun HALF YEAR RESULTS 2009

27 HAZELNUT & ALMOND PRICES HAZELNUT PRICES March07 August 09 ALMOND PRICES March07 August 09 USD/100KG USD/100KG Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul HALF YEAR RESULTS 2009

28 MATERIAL COST TRENDS HY 2009 Cocoa Products: Other Raw Materials: Packaging: - Terminal Market 4 th consecutive deficit expected triggers speculative action - Differentials weakening - Butter Ratio stable low - Milk stable low - Sugar weakening - Hazelnuts stable low - Almonds stable low - Paper & Cardboard weakening - Metals & Flexibles stable 28 HALF YEAR RESULTS 2009

29 THANK YOU FOR YOUR ATTENTION QUESTION AND ANSWER SESSION 29 HALF YEAR RESULTS 2009