Investor Presentation HY2018 - Lindt & SprüngliMaître Chocolatier Suisse Depuis 1845 1. Performance Highlights HY2018 2. P&L and B/S Details HY2018 3. Outlook 2018 Agenda July 24,

Maître Chocolatier Suisse Depuis 1845

Investor PresentationHY2018


1. Performance Highlights HY2018

2. P&L and B/S Details HY2018

3. Outlook 2018

Agenda

HY 2018 Investor PresentationJuly 24, 2018 2


Performance Highlights HY2018


P&L Statement L&S Group


CHF million HY2017 HY2018 Growth in %

SalesOrganic growth

1 548.7 1 668.2 +7.7%+5.1%

EBITDAMargin

183.611.9%

203.512.2%

+10.8%

EBITMargin

105.06.8%

117.17.0%

+11.5%

Net IncomeMargin

76.34.9%

86.05.2%

+12.7%

Organic growth of +5.1% and EBIT-margin increase of +20 bp


Balance sheet

HY 2018 Investor PresentationJuly 24, 2018

60.1%

62.9%

50%

52%

54%

56%

58%

60%

62%

64%

31.12.2017 30.06.2018

-154

-203

-300

-200

-100

0

31.12.2017 30.06.2018

Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million

Further strengthening of the Equity

5

4 1954 168

3 800

3 900

4 000

4 100

4 200

4 300

31.12.2017 30.06.2018


P&L and B/S Details HY2018


1 200

1 409

1 5021 549

1 668

800

1 000

1 200

1 400

1 600

HY2014 HY2015 HY2016 HY2017 HY2018

Sales analysis – 5 years in CHF


Increase in CHF by +7.7%Absolute in CHF millionGrowth rate in %

3.1%17.4%6.0% 6.6% 7.7%


1 200

1 409

1 5021 549

1 668

800

1 000

1 200

1 400

1 600

HY2014 HY2015 HY2016 HY2017 HY2018

Sales analysis – 5 years in local currencies


Organic Growth at +5.1% for HY 2018Absolute in CHF millionIncrease p.a. in local currencies (organic growth in %)

3.6%9.4%9.2% 4.4% 5.1%


Sales analysis - markets


4.4%9.2%8.7% 9.4% 6.8%

Total NNTS CHF

1.668bn● North America

● Germany

● France

● CH excl. Exports

● Italy

● UK

● Rest of Europe

● Rest of the World

34.1%

17.5%9.6%

4.5%

6.9%

6.3%

6.1%

15.0%


4.9% 5.1%

7.7%

0.2%

2.6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Volume Price / Mix Organic Forex Reported in CHF

Sales analysis - drivers


Positive Price/Mix Impact


Sales analysis – segment information


760

856

700

720

740

760

780

800

820

840

860

880

HY 2017 HY 2018

+6.0%

+5.0%

558

564

550

555

560

565

570

575

HY 2017 HY 2018

+4.0%

-3.0%231

248

215

220

225

230

235

240

245

250

255

HY 2017 HY 2018

+8.4%

+14.0%

Europe NAFTA Rest of World

NAFTA Region is recovering

11

Percentage above column: organic growth of respective period


423510

525 524 559

0

100

200

300

400

500

600

HY2014 HY2015 HY2016 HY2017 HY2018

Material costs – incl. changes in inventories


Decreased Ratio by -30 bpAbsolute in CHF millionIn % sales

33.8%36.2%35.2% 34.9% 33.5%


Cocoa Bean Price & Cocoa Butter Ratio


33.8%36.2%35.2% 34.9% 33.5%

Cocoa beans Prices in GBP t Butter ratio

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

Jan. 17 Mrz. 17 Mai. 17 Jul. 17 Sep. 17 Nov. 17 Jan. 18 Mrz. 18 Mai. 182.20

2.30

2.40

2.50

2.60

2.70

2.80

2.90

3.00

Ratio Butter Liffe


309

373 394 416443

0

50

100

150

200

250

300

350

400

450

500

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

Personnel expenditure


Decreased Ratio by -30 bp

25.8% 26.5% 26.2% 26.6%26.9%

14

In CHF millionIn % Sales


348384

422 433471

0

100

200

300

400

500

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

Operating / marketing expenses


Continued High Marketing Investments

29.0% 27.2% 28.1% 28.2%28.0%

15

In CHF millionIn % Sales


5159

6979

87

0

20

40

60

80

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

Depreciation, amortization and impairment


Higher Depreciation Ratio by +10 bp due to Increased Capacity CAPEX

4.2% 4.2% 4.6% 5.2%5.1%

16

Absolute in CHF millionIn % Sales


Operating profit (EBIT)


Continued Margin Improvement: +20 bp

+XXX +XXX +XXX +XXX+XXX

7791

98105

117

0

20

40

60

80

100

120

140

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

6.4% 6.6% 6.8% 7.0%6.4%

17



Net income


Higher Financial Charges, Decrease in Tax Rate


5665

7276

86

0

20

40

60

80

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

4.7% 4.8% 4.9% 5.2%4.6%

18



Capex


Continued high investments


105 104

125

86

119

0

20

40

60

80

100

120

140

HY 2014 HY 2015 HY 2016 HY 2017 HY 2018

19

Operating Cash Flow in CHF millionCAPEX in CHF million


Net financial position − development


Increase of Net Debt due to Purchase of own Treasury Stock

-154

+333 60 60

-96-203

-119+68

-223

-104-4

-250

-200

-150

-100

-50

0

50

100

150

200

31.12.2017 Operating CashFlow

CapitalExpenditure

Capital Increase Dividendpayment

Share Buy Back CTA/Other 30.06.2018

20

Net Cash in CHF million

214Free Cash Flow


Outlook 2018 and beyond


● 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

Outlook environment 2018


Outlook - Summary

The Group confirms its mid/long term goal of an organic sales growth target of6 – 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

Maître Chocolatier Suisse Depuis 1845Maître Chocolatier Suisse Depuis 1845

Q & A


Disclaimer


This presentation contains forward looking statements which reflect Management‘s currentviews and estimates. The forward looking statements involve certain risks and uncertaintiesthat could cause actual results to differ materially from those contained in the forward lookingstatements. Potential risks and uncertainties include such factors as general economicconditions, foreign exchange- and commodity price fluctuations, competitive product andpricing pressures and regulatory developments.

Documents

Investor Presentation HY2018 - Lindt & SprüngliMaître Chocolatier Suisse Depuis 1845 1. Performance Highlights HY2018 2. P&L and B/S Details HY2018 3. Outlook 2018 Agenda July 24,