HALF-YEAR 2015...This presentation contains forward looking statements which reflect Management‘s...

HALF-YEAR 2015Investor Presentation

1. Performance Highlights HY2015

2. P&L and B/S Details HY2015

3. Outlook 2015

4. Questions & Answers

AGENDA

August 18, 2015Investors Presentation - HY2015 3

PERFORMANCE HIGHLIGHTS HY2015

P&L STATEMENT L&S GROUP

+17.4% Sales Growth of the Lindt & Sprüngli Group INCLUDING Russell Stover

August 18, 2015Investors Presentation - HY2015 5

CHF million HY2014 HY2015Y-o-Y Growth

in CHF Organic

Sales 1 199.9 1 408.9 +17.4% +9.4%

EBITDAMargin

128.010.7%

149.810.6%

+17.1%

EBITMargin

77.16.4%

90.66.4%

+17.5%

Net Income Margin

55.84.7%

65.04.6%

+16.5%

38.7%

15.1%9.5%

10.2%

6.9%

8.0%

5.5%

6.1%

SALES ANALYSIS − MARKETS

August 18, 2015Investors Presentation - HY2015 6

Total NNTS CHF

1.409bn● North America incl. RS

● Germany

● France

● CH incl. Exports

● Italy

● Rest of the World

● Rest of Europe

● UK

(p.y. 27%)

BALANCE SHEET

3 002

2 819

1 600

2 100

2 600

3 100

31.12.2014 30.06.2015

August 18, 2015Investors Presentation - HY2015 7

53.8% 52.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

31.12.2014 30.06.2015

-844-755

-850

-650

-450

-250

-50

31.12.2014 30.06.2015

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

SALES ANALYSIS − SEGMENT INFORMATION

August 18, 2015Investors Presentation - HY2015 8

13.7%

10.3%

0.0%

4.0%

8.0%

12.0%

16.0%

HY2014 HY2015

Continued High Pace of Growth in all Three Geographical Segments

Europe NAFTA (excl. RS) Rest of World

6.9% 6.9%

0.0%

2.0%

4.0%

6.0%

8.0%

HY2014 HY2015

11.3%

18.2%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

HY2014 HY2015

P&L AND B/S DETAILS HY2015

SALES ANALYSIS − 5 YEARS IN CHF

August 18, 2015Investors Presentation - HY2015 10

1 007 1 033

1 1321 200

1 409

800

900

1 000

1 100

1 200

1 300

1 400

1 500

HY2011 HY2012 HY2013 HY2014 HY2015

Increase in CHF by 17.4% Y-o-Y (Including Russell Stover)

-4.5% 6.0%2.6% 9.6% 17.4%

Absolute in CHF millionGrowth in %

960

1 011

1 099

1 200

1 409

800

900

1 000

1 100

1 200

1 300

HY2011 HY2012 HY2013 HY2014 HY2015

SALES ANALYSIS −5 YEARS IN LOCAL CURRENCIES

August 18, 2015Investors Presentation - HY2015 11

9.2%5.3%6.1% 8.7% 9.4%

Continued Strong Organic Growth of 9.4% of Lindt & Sprüngli on a Standalone Basis

Absolute in CHF millionIncrease p.a. in local currencies (organic growth in %)

6.4%

9.4%

+15.5%17.4%

+3.0% -7.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Volume Price/Mix Organic Forex Acquisition Reported inCHF

SALES ANALYSIS − DRIVERS

Organic Sales Growth Driven by Volumes and Price/Mix − Significant Forex-Impact

August 18, 2015Investors Presentation - HY2015 12

MATERIAL COSTS − CHANGES IN INVENTORIES

August 18, 2015Investors Presentation - HY2015 13

Material Costs Including Changes in Inventories Increased by 100 BP

Absolute in CHF millionIn % Sales

354 358 379423

510

0

100

200

300

400

500

600

HY2011 HY2012 HY2013 HY2014 HY2015

35.2% 34.7% 33.4% 35.2% 36.2%

PERSONNEL EXPENDITURE

August 18, 2015Investors Presentation - HY2015 14

Increase of Personnel Expenses Driven by Russell Stover

In CHF millionIn % Sales

267 277306 309

373

0

100

200

300

400

HY2011 HY2012 HY2013 HY2014 HY2015

26.5% 26.8% 27.0% 25.8% 26.5%

OPERATING/MARKETING EXPENSES

August 18, 2015Investors Presentation - HY2015 15

Decrease in Expense Ratio Partly Driven by Russell Stover

In CHF millionIn % Sales

301 309338 348

384

0

100

200

300

400

HY2011 HY2012 HY2013 HY2014 HY2015

29.9% 30.0% 29.8% 29.0% 27.2%

OPERATING PROFIT (EBIT)

August 18, 2015Investors Presentation - HY2015 16

EBIT Margin Remaining Stable vs. P.Y.

42 46

66

77

91

0

20

40

60

80

100

HY2011 HY2012 HY2013 HY2014 HY2015

4.2% 4.5% 5.8% 6.4%

Absolute in CHF millionIn % Sales

6.4%

NET INCOME

August 18, 2015Investors Presentation - HY2015 17

Financial Charges Unchanged and Tax Rate Slightly up due to RS Acquisition

3235

4956

65

0

20

40

60

HY2011 HY2012 HY2013 HY2014 HY2015

3.2% 3.4% 4.3% 4.7% 4.6%

Absolute in CHF millionIn % Sales

OPERATING CASH FLOW & CAPEX

August 18, 2015Investors Presentation - HY2015 18

Strong Operating CF Generation and Ongoing High Capex to Support Further Growth

228

159

211

171

308

0

100

200

300

HY2011 HY2012 HY2013 HY2014 HY2015

42 65 84 105 104

Operating Cash Flow in CHF millionCAPEX in CHF million

NET FINANCIAL POSITION − DEVELOPMENT

August 18, 2015Investors Presentation - HY2015 19

Net Financial Position Improved by CHF 89 Million in HY2015

Net Cash in CHF million

-844

-536

-755

308

57

-166

-104 -6

-1 000

-800

-600

-400

-200

0

31.12.2014 OperatingCash Flow

CapitalIncrease

Dividend CapitalExpenditure

CTA/Other 30.06.2015

OUTLOOK 2015

OUTLOOK ENVIRONMENT 2015

● 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

August 18, 2015Investors Presentation - HY2015 21

● 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

Challenging General Conditions

Lindt − Strengthening of the Brand, Ongoing Increase of Market Share, Expansion into New Markets

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.

August 18, 2015Investors Presentation - HY2015 24