HALF-YEAR 2015 Investor Presentation
AGENDA 1. Performance Highlights HY2015 2. P&L and B/S Details HY2015 3. Outlook 2015 4. Questions & Answers Investors Presentation - HY2015 August 18, 2015 3
PERFORMANCE HIGHLIGHTS HY2015
P&L STATEMENT L&S GROUP +17.4% Sales Growth of the Lindt & Sprüngli Group INCLUDING Russell Stover CHF million HY2014 HY2015 in CHF Y-o-Y Growth Organic Sales 1 199.9 1 408.9 +17.4% +9.4% EBITDA Margin 128.0 10.7% 149.8 10.6% +17.1% EBIT Margin 77.1 6.4% 90.6 6.4% +17.5% Net Income Margin 55.8 4.7% 65.0 4.6% +16.5% Investors Presentation - HY2015 August 18, 2015 5
SALES ANALYSIS MARKETS 5.5% 6.1% Total NNTS CHF 6.9% 8.0% 10.2% 9.5% 15.1% 38.7% (p.y. 27%) 1.409bn North America incl. RS Germany France CH incl. Exports Italy Rest of the World Rest of Europe UK Investors Presentation - HY2015 August 18, 2015 6
BALANCE SHEET Reduction of Net Debt Despite Continuous Capex and Dividend Payment Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million 3 100 2 600 3 002 2 819 70.0% 60.0% 50.0% 40.0% 30.0% 53.8% 52.2% -50-250 -450 2 100 1 600 31.12.2014 30.06.2015 20.0% 10.0% 0.0% 31.12.2014 30.06.2015-650 -850-844 -755 31.12.2014 30.06.2015 Investors Presentation - HY2015 August 18, 2015 7
SALES ANALYSIS SEGMENT INFORMATION Continued High Pace of Growth in all Three Geographical Segments Europe NAFTA (excl. RS) Rest of World 8.0% 16.0% 20.0% 6.0% 6.9% 6.9% 12.0% 13.7% 16.0% 18.2% 4.0% 8.0% 10.3% 12.0% 8.0% 11.3% 2.0% 4.0% 4.0% 0.0% HY2014 HY2015 0.0% HY2014 HY2015 0.0% HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 8
P&L AND B/S DETAILS HY2015
SALES ANALYSIS 5 YEARS IN CHF Increase in CHF by 17.4% Y-o-Y (Including Russell Stover) Absolute in CHF million Growth in % 1 500 1 400 1 300 1 200 1 100 1 000 900 800 1 007 1 033 1 132 1 200 1 409-4.5% 2.6% 9.6% 6.0% 17.4% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 10
SALES ANALYSIS 5 YEARS IN LOCAL CURRENCIES Continued Strong Organic Growth of 9.4% of Lindt & Sprüngli on a Standalone Basis Absolute in CHF million Increase p.a. in local currencies (organic growth in %) 1 300 1 200 1 200 1 409 1 100 1 099 1 000 900 960 1 011 800 6.1% 5.3% 8.7% 9.2% 9.4% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 11
SALES ANALYSIS DRIVERS Organic Sales Growth Driven by Volumes and Price/Mix Significant Forex-Impact 18.0% 16.0% 14.0% 12.0% +15.5% 17.4% 10.0% 8.0% +3.0% 9.4% -7.5% 6.0% 4.0% 6.4% 2.0% 0.0% Volume Price/Mix Organic Forex Acquisition Reported in CHF Investors Presentation - HY2015 August 18, 2015 12
MATERIAL COSTS CHANGES IN INVENTORIES Material Costs Including Changes in Inventories Increased by 100 BP Absolute in CHF million In % Sales 600 500 510 400 300 354 358 379 423 200 100 0 35.2% 34.7% 33.4% 35.2% 36.2% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 13
PERSONNEL EXPENDITURE Increase of Personnel Expenses Driven by Russell Stover In CHF million In % Sales 400 373 300 200 267 277 306 309 100 0 26.5% 26.8% 27.0% 25.8% 26.5% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 14
OPERATING/MARKETING EXPENSES Decrease in Expense Ratio Partly Driven by Russell Stover In CHF million In % Sales 400 300 301 309 338 348 384 200 100 0 29.9% 30.0% 29.8% 29.0% 27.2% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 15
OPERATING PROFIT (EBIT) EBIT Margin Remaining Stable vs. P.Y. Absolute in CHF million In % Sales 100 80 60 66 77 91 40 42 46 20 0 4.2% 4.5% 5.8% 6.4% 6.4% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 16
NET INCOME Financial Charges Unchanged and Tax Rate Slightly up due to RS Acquisition Absolute in CHF million In % Sales 60 65 40 49 56 20 32 35 0 3.2% 3.4% 4.3% 4.7% 4.6% HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 17
OPERATING CASH FLOW & CAPEX Strong Operating CF Generation and Ongoing High Capex to Support Further Growth Operating Cash Flow in CHF million CAPEX in CHF million 300 308 200 100 228 159 211 171 0 42 65 84 105 104 HY2011 HY2012 HY2013 HY2014 HY2015 Investors Presentation - HY2015 August 18, 2015 18
NET FINANCIAL POSITION DEVELOPMENT Net Financial Position Improved by CHF 89 Million in HY2015 Net Cash in CHF million 0-200 -400-536 57-755 -600-166 -104-6 -800-844 308-1 000 31.12.2014 Operating Cash Flow Capital Increase Dividend Capital Expenditure CTA/Other 30.06.2015 Investors Presentation - HY2015 August 18, 2015 19
OUTLOOK 2015
OUTLOOK ENVIRONMENT 2015 Challenging General Conditions Positive economic outlook in North America Subdued consumer sentiment in Europe Transaction/Translation impact from SNB decision Continued challenge from continuously increasing cocoa beans Trade partners competing on price limiting price adjustments Lindt Strengthening of the Brand, Ongoing Increase of Market Share, Expansion into New Markets Innovation and intensified marketing communication Continuous strengthening of LINDT brand in all markets Anchoring and exploiting strong no. 3 market position in the USA Strong focus on the worldwide implementation of own sales channel (Global Retail) Ongoing optimization through efficiency increases and cost management Mid to long-term organic sales growth target of 6-8% confirmed for 2015 Back to mid to long-term target for increase of 20-40 BP in EBIT margin after integration of RS Investors Presentation - HY2015 August 18, 2015 21
QUESTIONS & ANSWERS
Half-Year 2015 Investor Presentation
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. Investors Presentation - HY2015 August 18, 2015 24