Maître Chocolatier Suisse Depuis 1845
Investor PresentationHY2018
Maître Chocolatier Suisse Depuis 1845
1. Performance Highlights HY2018
2. P&L and B/S Details HY2018
3. Outlook 2018
Agenda
HY 2018 Investor PresentationJuly 24, 2018 2
Maître Chocolatier Suisse Depuis 1845
Performance Highlights HY2018
Maître Chocolatier Suisse Depuis 1845
P&L Statement L&S Group
HY 2018 Investor PresentationJuly 24, 2018 4
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
Maître Chocolatier Suisse Depuis 1845
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
Maître Chocolatier Suisse Depuis 1845
P&L and B/S Details HY2018
Maître Chocolatier Suisse Depuis 1845
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
HY 2018 Investor PresentationJuly 24, 2018 7
Increase in CHF by +7.7%Absolute in CHF millionGrowth rate in %
3.1%17.4%6.0% 6.6% 7.7%
Maître Chocolatier Suisse Depuis 1845
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
HY 2018 Investor PresentationJuly 24, 2018 8
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%
Maître Chocolatier Suisse Depuis 1845
Sales analysis - markets
HY 2018 Investor PresentationJuly 24, 2018 9
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%
Maître Chocolatier Suisse Depuis 1845
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
HY 2018 Investor PresentationJuly 24, 2018 10
Positive Price/Mix Impact
Maître Chocolatier Suisse Depuis 1845
Sales analysis – segment information
HY 2018 Investor PresentationJuly 24, 2018
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
Maître Chocolatier Suisse Depuis 1845
423510
525 524 559
0
100
200
300
400
500
600
HY2014 HY2015 HY2016 HY2017 HY2018
Material costs – incl. changes in inventories
HY 2018 Investor PresentationJuly 24, 2018 12
Decreased Ratio by -30 bpAbsolute in CHF millionIn % sales
33.8%36.2%35.2% 34.9% 33.5%
Maître Chocolatier Suisse Depuis 1845
Cocoa Bean Price & Cocoa Butter Ratio
HY 2018 Investor PresentationJuly 24, 2018 13
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
Maître Chocolatier Suisse Depuis 1845
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
HY 2018 Investor PresentationJuly 24, 2018
Decreased Ratio by -30 bp
25.8% 26.5% 26.2% 26.6%26.9%
14
In CHF millionIn % Sales
Maître Chocolatier Suisse Depuis 1845
348384
422 433471
0
100
200
300
400
500
HY 2014 HY 2015 HY 2016 HY 2017 HY 2018
Operating / marketing expenses
HY 2018 Investor PresentationJuly 24, 2018
Continued High Marketing Investments
29.0% 27.2% 28.1% 28.2%28.0%
15
In CHF millionIn % Sales
Maître Chocolatier Suisse Depuis 1845
5159
6979
87
0
20
40
60
80
HY 2014 HY 2015 HY 2016 HY 2017 HY 2018
Depreciation, amortization and impairment
HY 2018 Investor PresentationJuly 24, 2018
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
Maître Chocolatier Suisse Depuis 1845
Operating profit (EBIT)
HY 2018 Investor PresentationJuly 24, 2018
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
Absolute in CHF millionIn % Sales
Maître Chocolatier Suisse Depuis 1845
Net income
HY 2018 Investor PresentationJuly 24, 2018
Higher Financial Charges, Decrease in Tax Rate
+XXX +XXX +XXX +XXX+XXX
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
Absolute in CHF millionIn % Sales
Maître Chocolatier Suisse Depuis 1845
Capex
HY 2018 Investor PresentationJuly 24, 2018
Continued high investments
+XXX +XXX +XXX +XXX+XXX
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
Maître Chocolatier Suisse Depuis 1845
Net financial position − development
HY 2018 Investor PresentationJuly 24, 2018
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
Maître Chocolatier Suisse Depuis 1845
Outlook 2018 and beyond
Maître Chocolatier Suisse Depuis 1845
● 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
HY 2018 Investor PresentationJuly 24, 2018 22
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
Maître Chocolatier Suisse Depuis 1845
Disclaimer
HY 2018 Investor PresentationJuly 24, 2018 24
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.