ANALYSTS‘ CONFERENCE€¦ · Confectionery remains one of the largest and most important...
Transcript of ANALYSTS‘ CONFERENCE€¦ · Confectionery remains one of the largest and most important...
ANALYSTS‘ CONFERENCE10 MARCH, 2015
Financial Year 2014
GROUP MANAGEMENT
10.03.2015 3
Dr. Dieter WeisskopfFinance, Administration, IT, Procurement,
Operations
Rolf FalleggerFR, IT, UK, PL, CZ, RU, China
Andreas PfugerCEO Russell Stover, N/America, MEX, AUS
Uwe SommerMarketing, Sales, Global Retail,
Markets
Ernst TannerChairman & Group CEO
Financial Analysts‘ Meeting
EXTENDED GROUP MANAGEMENT
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Kamillo KitzmantelCH, Export, Duty Free
Thomas LinemayrUSA, CA
Dr. Albert lechnerDE, AT
Financial Analysts‘ Meeting
1. Financial year 2014
2. Outlook
3. Added Information (Russell Stover)
AGENDA
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KEY FIGURESFinancial Year 2014
P&L STATEMENT L&S GROUP
+17.4% sales growth of the Lindt & Sprüngli Group INCLUDING Russell Stover
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CHF million 2013 2014 Growth in CHF
Sales 2 882.5 3 385.4 +17.4%
EBITDAMargin
503.317.5%
588.017.4%
+16.8%
EBITMargin
404.114.0%
474.314.0%
+17.4%
Net Income Margin
303.010.5%
342.610.1%
+13.1%
LINDT STANDALONE P&L STATEMENT
Full achievement of strategic growth and profit targets on a prior year comparable basis
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CHF million 2013 2014Growth Margin
Developmentin CHF Organic
Sales 2 882.5 3 133.3 +8.7% +9.8%
EBITDA Margin
503.317.5%
553.417.7%
+10.0% +20 BP
EBIT Margin
404.114.0%
444.314.2%
+9.9% +20 BP
BALANCE SHEET
2635
3002
1600
2100
2600
3100
2013 2014
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67.9%
53.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
2013 2014
724
-844-850
-650
-450
-250
-50
150
350
550
750
2013 2014
The acquisition reduced the equity ratio and the Net Financial Position in 2014
Equity in CHF Mio. Equity B/S Ratio in % Net Financial Position in CHF Mio.
47000
51000
55000
59000
63000
12.2013
02.2014
04.2014
06.2014
08.2014
10.2014
12.2014
02.2015
LINDT registered
LINDT registered
SHARE PRICE
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Creating shareholder value: +18.8% in 2014, +10.7% in 2015 so far
Lindt registered share
30.12.2014: LISN CHF 57’160 +18.8% y-o-y
31.12.2013: LISN CHF 48’100
Since January 2015
LISN CHF 63‘300.- (09.03.15)30.12.14 - 09.03.15: +10.7%
SHAREHOLDER RETURN
Dividend Payment + 11.5 % vs. 2013 / Payout Ratio 49.1%
1992 2011 2012 2013 2014
Dividend Reg. (CHF) 39 500 575 650 725*
• From Agio 500 535 555 325
• From Retained Earnings 40 95 400
Increase (CHF) 50 75 75 75
Dividend Yield Reg. 1.4% 1.6% 1.7% 1.4% 1.3%
Payout Ratio Reg. 16.9% 47.2% 53.1% 49.0% 49.1%
Registered Shares (at year-end) 2 800 31 390 34 515 48 100 57 160
Market Cap. (Mio. CHF) 492 6 982 7 384 10 268 12 495
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* subject to approval by the AGM
SALES GROWTH 2014 – MAIN MARKETS
Switzerland (incl. Exports) 6.8%
Germany 5.1%
France 6.4%
UK 14.7%
Italy 3.1%
North America (excl. RS) 14.3%
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Strong Growth of Key Brands
High organic growth in main markets leading to market share gains in 2014
Lindor Excellence Season Pralinés
GLBOBAL RETAILIMPORTANT SUCCESS FACTOR
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Global network of own shops with 275 points of sale
36.8%
15.3%11.2%
9.9%
7.7%
7.0%
6.7%
5.4%7.0%
SALES ANALYSIS – MARKETS
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Total NNTS CHF
3.385bn● North America incl. RS
● Germany
● France
● CH incl. Exports
● Italy
● Rest of the World
● Rest of Europe
● UK
Of whichRussell Stover
SALES GROWTH – GROUP
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2 579 2 4892 670
2 883
3 385
1 500
2 000
2 500
3 000
3 500
2010 2011 2012 2013 2014
Absolute in CHF Mio.
Remarkable contribution of Russell Stover to the sales growth of the group
SALES GROWTH – LINDT STAND ALONE
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2 579 2 4892 670
2 883
3 133
1 500
2 000
2 500
3 000
3 500
2010 2011 2012 2013 2014
8.6%6.0%7.3% 6.8% 9.8%
Accelerated organic growth on a Lindt & Sprüngli standalone basis
Absolute in CHF Mio.Increase p.a. in local currencies (organic growth in %)
SALES – GROWTH FACTORS
9.1%
9.8%
8.7% 17.4%
0.7%-1.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Volume Price / Mix Organic Forex RS Sales in CHF
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Sales growth mainly driven by volume and acquisition of Russell Stover
ORGANIC GROWTH BY REGION
2.8%
5.1%
6.4%
3.1%
0%
1%
2%
3%
4%
5%
6%
7%
CH Dom GER FRA ITA
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14.3%
0%
2%
4%
6%
8%
10%
12%
14%
NAFTA (excl. RS)
L&S in Europe +6.5% L&S in NAFTA +14.3%
MATERIAL COSTS
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Material costs including changes in inventories increased by 360 BP – raw material prices
Absolute in CHF Mio.In % Sales
940.0 892.4 940.0 943.2
1227.9
0
200
400
600
800
1 000
1 200
1 400
2010 2011 2012 2013 2014
36.4% 35.9% 35.2% 32.7% 36.3%
NUMBER OF EMPLOYEES (FTE‘S)
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Increase by 1 763 employees driven by RS and further expansion in production & retail (*)
Average number of employees
7 572 7 7798 157
8 949
10 712
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
2010 2011 2012 2013 2014
(*) Increase of 610 FTE‘s on a L&S stand alone basis
PERSONNEL EXPENSES
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Decrease in the expense ratio to lowest level due to Russell Stover and efficiency gains
in CHF Mio.in % Sales
564.7 540.5599.6
654.7719.5
0
200
400
600
800
2010 2011 2012 2013 2014
21.9% 21.7% 22.5% 22.7% 21.2%
OPERATING EXPENSES
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Continued good support of marketing investments in 2014
Absolute in CHF Mio.in % Sales
663.9 644.1707.9
794.9 815.1
0
200
400
600
800
2010 2011 2012 2013 2014
25.7% 25.9% 26.5% 27.6% 26.0%
EBITDA
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Absolute increase by +16.9%
423.3 422.0 435.9
503.3
588.0
0
100
200
300
400
500
600
2010 2011 2012 2013 2014
16.4% 17.0% 16.3% 17.5% 17.4%
Absolute in CHF Mio.in % Sales
CAPITAL INVESTMENTS
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Increase to keep pace with high volume growth
Absolute in CHF Mio.
88.6104.2
144.6
191.4
234.6
0
40
80
120
160
200
240
2010 2011 2012 2013 2014
DEPRECIATION AND IMPAIRMENTS
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Depretiation to sales ratio remained stable despite higher investments/ impairment
98.093.2
105.899.2
113.7
0
20
40
60
80
100
120
2010 2011 2012 2013 2014
3.8% 3.7% 4.0% 3.4% 3.4%
Absolute in CHF Mio.in % Sales
OPERATING PROFIT (EBIT)
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EBIT Margin 14.0% includes all one-offs from the RS acquisition
325.3 328.7 330.1
404.1
474.3
0
100
200
300
400
2010 2011 2012 2013 2014
12.6% 13.2% 12.4% 14.0% 14.0% (*)
Absolute in CHF Mio.in % Sales
(*) L&S standalone: EBIT Margin 14.2%
TAX RATE
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Significant increase in 2014 due to fully utilized tax loss carry forwards in the US
in % of income before taxes
25.3% 25.0% 25.6% 24.5%27.5%
0%
10%
20%
30%
2010 2011 2012 2013 2014
NET INCOME
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Net Income Margin 10.1% includes all one-offs from the RS acquisition
241.9 246.5 244.9
303.0
342.6
0
50
100
150
200
250
300
350
2010 2011 2012 2013 2014
9.4% 9.9% 9.2% 10.5% 10.1%
Absolute in CHF Mio.in % Sales
NET FINANCIAL POSITION – DEVELOPMENT
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The acquisition of RS financed via own funds and the issuance of bonds
Net Cash in CHF Mio.
543724
-844
30873
-235 -148-89
-1475-2
-1 000
-500
0
500
1 000
1 500
2012 2013 OperatingCash Flow
CapitalIncrease
CAPEX Dividend Share buyback &
TreasuryStock
RS CTA /Other
2014
OUTLOOK
OUTLOOK ENVIRONMENT 2015
● Positive economic outlook in North America
● Subdued consumer sentiment in Europe
● Transaction / Translation impact from SNB decision
● Continued challenge from unchanged high raw material prices
● Trade partners competing on price limiting price adjustments
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● 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 via efficiency increases and cost management
● Middle to long-term organic sales growth target of 6-8% confirmed for 2015
● Back to middle to long-term target for increase of 20-40 BP in EBIT margin after integration of RS
Ongoing challenging general conditions
Lindt & Sprüngli – Strengthening of the brand, ongoing increase of market shares, expansion into new markets
RUSSELL STOVER
ACQUISITION RUSSELL STOVER
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July 2014
Headqartrer Kansas City, Missouri
Employees 2800
4 Factories 2 in Kansas, 1 Texas, 1 Colorado
Brands Russell Stover, Whitman‘s, Pangburn‘s
Founded Russell Stover 1923, Whitman‘s 1842 (integrated in 1993)
Sales ~ USD 500 million per year
RUSSELL STOVER: FACTS AND FIGURES
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LINDT / Ghirardelli
Russell Stover
PREMIUM SEGMENT IN THE USA
1989 Commissioning of the LINDT factory in Stratham, NH
1992 Sales in N/America: CHF 30 million
1995 Establishment of an own LINDT shop concept to build on brand awareness
1998 Strategic acquisition of Ghirardelli
2006 N/America: Most important market of the Group
2010 Commissioning of a new facility for production of cocoa liquor (from ban to bar)
2014 Take-over of Russell Stover(most important strategic acquisition of company history)
Today Lindt & Sprüngli is no.3 chocolate manufacturer in the USA and clear leaderof the premium chocolate segment
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Lindt & Sprüngli dominates the premium choclate segment in N/America
PREM
IUM
SEG
MEN
T
Financial Analysts‘ Meeting
RUSSELL STOVER:NO.1 FOR GIFTING CHOCOLATE IN AMERICA
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1923 Clara und Russell Stover
The couple begins to produce „Mrs. Stover‘s Bungalow Candies“ in the basement of their house in Denver. Just a few month later they open their first store.
1960Ward Family
The business is taken over by the Ward family who further expanded the national distribution.
1993Whitman‘s
Whitman‘s, established in 1842 and one of the oldest American chocolate brands, is integrated in the company‘s portfolio in 1993.
Russell Stover Headquarter in Kansas City, Missouri
ACQUISITION RUSSELL STOVER
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• Biggest and most important strategic acquisition in the company‘s history
• Russell Stover optimally complements the brand and product portfolio of Lindt & Sprüngli USA
• Lindt & Sprüngli is third biggest chocolate manufacturer in the N/American overall chocolate market
• New leading position in „Boxed Chocolates“, seasonal business, and sugar-free chocolate
• Lindt & Sprüngli becomes one of the main partners of the trade
• Strong basis for further growth
• Four additional factories with potential for expansion will allow manufacturing synergies
• Own shop network (36 POS)
Financial Analysts‘ Meeting
FOUR NEW PRODUCTION SITES
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Russell Stover Factory in Abilene, Kansas
Russell Stover Factory in Corsicana, TexasRussell Stover Factory in Iola, Kansas
Russell Stover Factory in Montrose, Colorado
POPULAR HOUSEHOLD BRANDS
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Russell Stover, Whitman’s and Pangburn’s brands hold a market share of more than 50% in the segment of chocolate hearts.
The Whitman’s cultic «sampler» gift box with a selection of chocolate candies is the bestseller pralinés assortment in the USA since its launch more than 100 years ago.
The «Millionaire$» pralines of Pangburn’s are famous for their delicate recipes with milk chocolate, pecan, caramel and a touch of honey. They were created in 1914 in Fort Worth (Texas) and are very popular in the Southeast of the US.
BRAND PORTFOLIO
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GLOBAL BRANDS> 75% of sales
REGIONAL BRANDS~ 22% of sales
LOCAL BRANDS~ 3% of sales
Key Products/ Brands
Financial Analysts‘ Meeting
LINDOR EXCELLENCE SAISON PRALINES
Financial Analysts‘Meeting / March 10, 2015
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.
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