INVESTOR PRESENTATION HALF YEAR 2010
CONTENTS 1 PERFORMANCE HIGHLIGHTS HY 2010 2 ENVIRONMENT HY 2010 3 P&L & B/S DETAILS HY 2010 4 MATERIAL COST DEVELOPMENT 5 OUTLOOK 2010 6 QUESTIONS & ANSWERS
1 PERFORMANCE HIGHLIGHTS HY 2010
PERFORMANCE HIGHLIGHTS HY 2010 CHF mio. Net Net Trade Sales 1 057 Organic + 9.2 % Volume +82% 8.2 Swiss Francs + 7.9 % EBITDA 82,5 CHF +10,5 Mio vs. p.y. (before extraordinary) EBIT 33,9 CHF + 9,8 Mio vs. p.y. (before extraordinary) NET INCOME 24,8 CHF + 6,2 Mio vs. p.y. (before extraordinary) NET LIQUIDITY 446,0 CHF +134,2 Mio vs. p.y.
KEY FIGURES ROCK SOLID BALANCE SHEET & RECORD NET CASH POSITION Equity CHF mio. Equity B/S ratio in % Net Cash Y/E CHF mio. 1'700 70.0% 68.0% 1'600 1'618 66.0% 1'500 1'516 64.0% 65.3% 1'400 62.0% 60.0% 1'300 58.0% 68.5% 450 400 350 300 250 200 356 446 1'200 56.0% 150 1'100 54.0% 52.0% 100 50 1'000 2009-31.12. 2010-30.6. 50.0% 2009-31.12. 2010-30.6. 0 2009-31.12. 2010-30.6.
2 ENVIRONMENT HY 2010
ENVIRONMENT ECONOMIES _ Stabilisation of financial sector & economies back to slow growth _ Confusing inflationary as well as deflationary fears _ Increasing savings in private sector _ Unemployment rates remaining at reached high levels CONSUMERS _ Improvement of consumer sentiment vs. very low base in p.y. _ Resumption of trend to Premium / trading up _ Importance of promotional incentives CHOCOLATE MARKETS _ Flat volume development in main markets low value growth FX & MATERIAL _ Enormous volatility in FX & Raw Material Markets _Record high cocoa market prices squeeze of July 2010
3 P&L & B/S DETAILS HY 2010
OVERVIEW - P&L & B/S DETAILS HY 2010 Net Trade Sales EBIT* Net Income* (CHF m) (CHF m) (CHF m) CHF 1 057 Mio CHF 33.9 Mio CHF 18.6 Mio 1'100 1'000 900 800 700 600 979 + 7.9 % 35 + 41 % 25 + 33 % 33.9 24.8 1'057 30 20 25 18.6 24.1 20 15 15 10 10 5 5 500 2009 2010 0 2009 2010 0 2009 2010 * 2009 before non-recurring charges
SALES ANALYSIS GROWTH IN SWISS FRANCS - 5 YEARS Absolute in CHF mio. Incr. vs. previous year in Swiss Francs 1'200 2 520 1'000 800 883 1'013 1'035 979 1'057 600 400 200 17.3% 14.7% 21% 2.1% -5.4% 79% 7.9% 2006 2007 2008 2009 2010
SALES ANALYSIS ORGANIC GROWTH 5 YEARS Absolute in CHF mio. Incr. vs. previous year in local currencies 1'200 2 520 1'000 800 883 1'013 1'035 979 1'057 600 400 200 14.4% 12.3% 6.9% 0.2% 9.2% 2006 2007 2008 2009 2010
SALES ANALYSIS - DRIVERS HIGH VOLUME GROWTH & MODERATE PRICE INCREASES 10.00% 00% 9.00% 8.00% 7.00% 6.00% 82% 8.2% 1.0% -1.3% 9.2% 7.9% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Volume Price/Mix Organic Forex Reported in CHF
SALES ANALYSIS - MARKETS IMPORTANT EASTER BUSINESS IN ITALY IN 1ST HALF Total NNTS: CHF 1 057 mio. 12.7% 5.8% 25.7% USA, Ghirardelli, Can, Mexico Germany France 7.2% Italy 5.9% Rest of the World 12.2% 10.7% 19.8% Rest of Europe Switzerland Dom. & Exp. UK
MATERIAL COSTS MATERIAL COSTS - ANOTHER INCREASE OF COST MARGIN Absolute in CHF mio. In % of NNTS 425 400 375 350 325 364 388 340 401 300 275 313 250 225 200 35.4% 35.9% 37.5% 34.7% 38.0% 2006 2007 2008 2009 2010
PERSONNEL EXPENDITURE DECREASE OF COST MARGIN Personnel exp. in CHF mio. Personnel exp. in % NNTS 300 250 244 284 283 261 279 200 150 27.6% 28.0% 27.4% 26.7% 26.4% 100 2006 2007 2008 2009 2010
HEADCOUNT & NNTS/EMPLOYEE NO. OF EMPLOYEES + 2.9 % / VOLUME + 8.2 % Average number of employees NNTS per employee CHF (000) 7'500 7'000 6'500 6'000 6'397 6'804 7'249 6'788 6'984 5'500 5'000 5000 4'500 4'000 3'500 138 149 143 144 151 2006 2007 2008 2009 2010
OPERATING / MARKETING EXPENSES CONTINUED INCREASE IN BRAND INVESTMENTS Absolute in CHF mio. In % of NNTS 325 300 275 250 275 310 307 294 318 225 200 31.1% 30.6% 29.7% 30.0% 30.1% 2006 2007 2008 2009 2010
OPERATING PROFIT (EBIT) (before non-recurring charges in 2009) GOOD RECOVERY OF EBIT DESPITE HIGH RAW MAT. PRICES Absolute in CHF mio. In % of NNTS 35 30 25 20 30 34 24 34 15 16 10 5 0 18% 1.8% 30% 3.0% 32% 3.2% 25% 2.5% 32% 3.2% 2006 2007 2008 2009 2010
NET INCOME (before non-recurring charges in 2009) PROOF OF GOOD PERFORMANCE IN 1 ST HALF 2010 Absolute in CHF mio. In % of NNTS 25 20 22 23 25 19 15 10 10 5 0 11% 1.1% 22% 2.2% 22% 2.2% 19% 1.9% 23% 2.3% 2006 2007 2008 2009 2010
NET CASH POSITION - DEVELOPMENT POSITIVE CASH GENERATION + CHF 90 MIO VS. 31.12.09 Net cash & net cash movement in CHF Mio 700.0 600.0 500.0 226 +11-15 -40-92 400.0 446 300.0 356 200.00 100.0 0.0 70 109 2007 2008 2009 Operating Cash Flow Capital Incr. Currency impact CAPEX Dividend Paym. 2010
OPERATING CASH FLOW & CAPEX OPER. CASH FLOW REDUCED BY INVENTORY & RECEIVABLES Operating Cash Flow in CHF mio. CAPEX in CHF mio. 400 369 300 200 251 258 260 226 100 0 62 105 100 61 40 2006 2007 2008 2009 2010
4 MATERIAL COST DEVELOPMENTS
COCOA CROP / GRINDING BALANCE OFFER / DEMAND ~ BALANCED OVER 4 YEARS Cocoa Beans 000 T 3'661 3'900 3'405 3'300 3'749 3'695 3'557 3'490 3'560 3'629 3'811 3'731 2'700 16.2% 2'100 1'500 900 5.5% 5.5% 42.4% 300-300 80-256 15.5% -54 67-69 06/07 07/08 08/09 09/10 exp. 10/11 exp. Crop Grindings Surpl./Deficit Source: ICCO and CRA
COCOA PRODUCT PRICES 07 10 COCOA LONDON TERMINAL COCOA BUTTER RATIO GBP/TON RATIO MULT. 2'500 2'300 3.3 2'100 1'900 2.8 1'700 2.3 1'500 1'300 1.8 1' 100 900 Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul. 09 Nov. 09 Mrz. 10 Jul. 10 1.3 Mrz. 07 Jul. 07 Nov. 07 Mrz. 08 Jul. 08 Nov. 08 Mrz. 09 Jul. 09 Nov. 09 Mrz. 10 Jul. 10
NUTS PRICES 07-10 HAZELNUTS ALMONDS USD/TON CHF/TON 8'500 8'000 7'500 7'000 6'500 6'000 5'500 5'000 4500 '500 4'000 8'500 8'200 7'900 7'600 7'300 7'000 6'700 6'400 6'100 6100 5'800 3'500 Aug. Okt. Dez. Feb. Apr. Jun. Aug. Okt. Dez. Feb. Apr. Jun. Aug. Okt. Dez. Feb. Apr. Jun. Jan. Apr. Jul. Okt. Jan. Apr. Jul. Okt. Jan. Apr. Jul. Okt. Jan. Apr. Jul. 07 07 07 08 08 08 08 08 08 09 09 09 09 09 09 10 10 10 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 5'500
MILK PRICES EU 07-10 UPWARD PRESSURE FOR SMP EUROPE SMP SWITZERLAND SMP EUROPE EUR/TON 4'500 4'000 3'500 3'000 2'500 2500 2'000 1'500
Mai. 10 Jul. 10 Jul. 09 Sep. 09 Nov. 09 Jan. 10 Mrz. 10 SUGAR PRICES USD/Ton 1'400 1'200 1'000 800 600 400 200 EU / CH WORLD USA Mrz. 08 Mai. 08 Jul. 08 Sep. 08 Nov. 08 Jan. 09 Mrz. 09 Mai. 09 Jan. 08 Nov. 07 Jan. 07 Mrz. 07 Mai. 07 Jul. 07 Sep. 07
MATERIAL COSTS OVERVIEW COCOA PRODUCTS - Cocoa Beans Terminal Market Range GBP 1 900 2 4000 / high vola - Cocoa Beans Differentials Stable - Cocoa Butter Ratio Recovering from lows - Cocoa Powder Ratio Coming down from record highs OTHER RAW MATERIALS - Milk CH: stable / EU and ROW upward trend - Sugar CH / EU / US: stable at present levels - Hazelnuts Slightly lower due to good harvest expectations - Almonds Downward tred PACKAGING - Paper & Board Higher, triggered on lower capacity and slightly higher demand - Metals & Flexs Upwards trend
6 OUTLOOK 2010
OUTLOOK 2010 FINANCIAL GUIDANCE FOCUS IS TO INVEST FOR FUTURE GROWTH MARKET FOCUS 2010 / 11 _ Limited price increases only depending on market / FX / inflation _ Priority on market share gains _ Participate in strategic promotional activities to grow volume _ Continue investments behind newly opened subsidiaries CONTINUATION OF MARKET INVESTMENTS IN 2010 / 11 _ Marketing spending: Further increase of market spending in all markets _ New geographies: Explore expansion potential of Russia, Japan, China, Scandinavia _ High growth potential in USA, Canada, UK, Australia _ Mature markets: Preserve premium brand positioning and build market shares
FINANCIAL GUIDANCE 2010 & GROWTH EXPECTATIONS 2011 FULL CONFIRMATION OF GUIDANCE GIVEN ALREADY IN MARCH 2010 Topics Full Year Guidance Organic Growth 5 7% EBIT CAPEX CHF 300 340 mio. CHF 120 140 mio. Continued high cash generation 2011: Top line growth back to mid/long-term rate of 6 8 %
7 QUESTIONS & ANSWERS
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 and uncertainties include among others factors as general economic conditions, foreign exchange and commodity price fluctuations, competitive product and pricing pressures and regulatory developments.
INVESTOR PRESENTATION 2010