Investor Presentation HY2018
Agenda 1. Performance Highlights HY2018 2. P&L and B/S Details HY2018 3. Outlook 2018 July 24, 2018 HY 2018 Investor Presentation 2
Performance Highlights HY2018
P&L Statement L&S Group Organic growth of +5.1% and EBIT-margin increase of +20 bp CHF million HY2017 HY2018 Growth in % Sales Organic growth EBITDA Margin 1 548.7 1 668.2 +7.7% +5.1% 183.6 11.9% 203.5 12.2% +10.8% EBIT Margin 105.0 6.8% 117.1 7.0% +11.5% Net Income Margin 76.3 4.9% 86.0 5.2% +12.7% July 24, 2018 HY 2018 Investor Presentation 4
Balance sheet Further strengthening of the Equity 4 300 Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million 64% 0 4 200 4 100 4 000 3 900 4 195 4 168 62% 60% 58% 56% 54% 52% 60.1% 62.9% -100-200 -154-203 3 800 31.12.2017 30.06.2018 50% 31.12.2017 30.06.2018-300 31.12.2017 30.06.2018 July 24, 2018 HY 2018 Investor Presentation 5
P&L and B/S Details HY2018
Sales analysis 5 years in CHF Increase in CHF by +7.7% 1 600 1 400 Absolute in CHF million Growth rate in % 1 502 1 549 1 668 1 200 1 000 1 200 1 409 800 6.0% 17.4% 6.6% 3.1% 7.7% HY2014 HY2015 HY2016 HY2017 HY2018 July 24, 2018 HY 2018 Investor Presentation 7
Sales analysis 5 years in local currencies 1 600 1 400 Organic Growth at +5.1% for HY 2018 Absolute in CHF million Increase p.a. in local currencies (organic growth in %) 1 502 1 549 1 668 1 200 1 000 1 200 1 409 800 9.2% 9.4% 4.4% 3.6% 5.1% HY2014 HY2015 HY2016 HY2017 HY2018 July 24, 2018 HY 2018 Investor Presentation 8
Sales analysis - markets Total NNTS CHF 15.0% 34.1% 1.668bn 6.1% North America Germany 6.3% France CH excl. Exports 6.9% Italy UK 8.7% 9.2% 9.4% 4.4% 6.8% 4.5% 9.6% Rest of Europe 17.5% Rest of the World July 24, 2018 HY 2018 Investor Presentation 9
Sales analysis - drivers Positive Price/Mix Impact 8% 7% 6% 5% 4% 0.2% 4.9% 5.1% 2.6% 7.7% 3% 2% 1% 0% Volume Price / Mix Organic Forex Reported in CHF July 24, 2018 HY 2018 Investor Presentation 10
Sales analysis segment information NAFTA Region is recovering Europe NAFTA Rest of World 880 860 840 820 800 780 760 740 720 +6.0% 760 +5.0% 856 575 570 565 560 555-3.0% 558 +4.0% 564 255 250 245 240 235 230 225 220 +14.0% 231 +8.4% 248 700 HY 2017 HY 2018 550 HY 2017 HY 2018 215 HY 2017 HY 2018 Percentage above column: organic growth of respective period July 24, 2018 HY 2018 Investor Presentation 11
Material costs incl. changes in inventories Decreased Ratio by -30 bp 600 Absolute in CHF million In % sales 500 400 423 510 525 524 559 300 200 100 0 35.2% 36.2% 34.9% 33.8% 33.5% HY2014 HY2015 HY2016 HY2017 HY2018 July 24, 2018 HY 2018 Investor Presentation 12
Cocoa Bean Price & Cocoa Butter Ratio Cocoa beans Prices in GBP t 2 600 2 400 2 200 2 000 Butter ratio 3.00 2.90 2.80 2.70 1 800 1 600 1 400 35.2% 36.2% 34.9% 33.8% 33.5% 1 200 Jan. 17 Mrz. 17 Mai. 17 Jul. 17 Sep. 17 Nov. 17 Jan. 18 Mrz. 18 Mai. 18 Ratio Butter Liffe July 24, 2018 HY 2018 Investor Presentation 13 2.60 2.50 2.40 2.30 2.20
Personnel expenditure 500 In CHF million In % Sales Decreased Ratio by -30 bp 450 400 350 373 394 416 443 300 250 309 200 150 100 50 0 25.8% 26.5% 26.2% 26.9% 26.6% HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 14
Operating / marketing expenses Continued High Marketing Investments 500 In CHF million In % Sales 400 300 348 384 422 433 471 200 100 0 29.0% 27.2% 28.1% 28.0% 28.2% HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 15
Depreciation, amortization and impairment 80 60 40 Higher Depreciation Ratio by +10 bp due to Increased Capacity CAPEX Absolute in CHF million In % Sales 51 59 69 79 87 20 0 4.2% 4.2% 4.6% 5.1% 5.2% HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 16
Operating profit (EBIT) Continued Margin Improvement: +20 bp 140 Absolute in CHF million In % Sales 120 100 80 60 77 91 98 105 117 40 20 0 +XXX +XXX +XXX +XXX +XXX 6.4% 6.4% 6.6% 6.8% 7.0% HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 17
Net income 80 60 40 Absolute in CHF million In % Sales 56 Higher Financial Charges, Decrease in Tax Rate 65 72 76 86 20 0 +XXX +XXX +XXX +XXX +XXX 4.7% 4.6% 4.8% 4.9% 5.2% HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 18
Capex 140 Operating Cash Flow in CHF million CAPEX in CHF million Continued high investments 120 100 105 104 125 119 80 86 60 40 20 0 +XXX +XXX +XXX +XXX +XXX HY 2014 HY 2015 HY 2016 HY 2017 HY 2018 July 24, 2018 HY 2018 Investor Presentation 19
Net financial position development Increase of Net Debt due to Purchase of own Treasury Stock 200 150 100 50 0 Net Cash in CHF million -119 +68 +333 60 60-223 -50-100 -154-96 -203-150 -200-250 31.12.2017 Operating Cash Flow 214 Free Cash Flow Capital Expenditure Capital Increase Dividend payment -104-4 Share Buy Back CTA/Other 30.06.2018 July 24, 2018 HY 2018 Investor Presentation 20
Outlook 2018 and beyond
Outlook environment 2018 Outlook - Summary Premium chocolate market to continue its positive trend Lindt & Sprüngli s strong global brands and strategic business actions to result in continued market share gains Efficiency and cost improvement programs already in place to lead to additional cash generation Partial re-investment of savings from scale, efficiencies, raw materials and cost reduction programs into future growth The Group confirms its mid/long term goal of an organic sales growth target of 6 8% combined with an increase in EBIT of 20 40 basis points For the business year 2018, Lindt & Sprüngli expects an organic sales growth of around 5% and an improvement in the EBIT margin in the range of the mid/long term goal July 24, 2018 HY 2018 Investor Presentation 22
Q & A
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. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange- and commodity price fluctuations, competitive product and pricing pressures and regulatory developments. July 24, 2018 HY 2018 Investor Presentation 24