Lindt & Sprüngli Company Presentation · Strategy going forward. ... Marketing. Excellence. Lindt...

Maître Chocolatier Suisse Depuis 1845

Lindt & Sprüngli Company Presentation


Agenda

Company Presentation 2017Lindt & Sprüngli Group 2

1. Who we are2. Drivers of our business model3. Long-term growth and key figures4. Strategy going forward


1. WHO WE ARE


From Swiss chocolatier to global brand

After impressive journey Lindt is well positioned to manifest excellence in 2017 and beyond



Lindt & Sprüngli around the globe

370Shops

worldwide

12Production

facilities

13’500Employees

FTEs

24Subsidaries worldwide

~ 100Distributors



Brand portfolio


Global brand> 75% of sales

Regional brands~ 22% of sales

Local brand~ 3% of sales

LINDOR SEASONEXCELLENCE PRALINES

Key Products/ Brands


2. DRIVERS OF OUR BUSINESS MODEL


World chocolate market 2016


36.0%

22.0%

14.0%

13.0%

7.0%

5.0% 3.0%

Western Europe

North America

Asia Pacific

Eastern Europe

Latin America

Middle East and Africa

Australasia

Consumer ValueBy region CHF (est. 2016)

97 bn

Source: Euromonitor & estimates


Consumption per capita / year in KG

Year in KG, 2016 / Drivers: Income, Climate, Historical Chocolate Exposure

Source: CHOCOSUISSE / Euromonitor

Company Presentation 2017

8.98.1 8 7.9 7.7

6.65.8 5.7 5.6 5.6 5.4 5.3 5.2 5.1 4.8 4.6

0

1

2

3

4

5

6

7

8

9

Lindt & Sprüngli Group 9


Dis

tribu

tion

„Dry“ Distribution FrozenDistribution

„Dry“Distribution

FrozenDistribution

TemperatureControlledDistribution

Prod

uct

PREMIUMCHOCOLATE

ICE CREAM (MILK FAT BASED)CHOCOLATEICE CREAM

(WATER BASED)BISCUITS CHEWING

GUMHARD CANDYCAKE /

WAFERSUGAR

Ingr

edie

nts

Sugar Sugar, Flour Sugar Melasse, Flavour

Sugar / Flour, CompoundChocolate

Gum Base, Sugar / Flavour

Sugar, Flavour

Sugar, Rice / Wafer

Milk Fat /Fruit, Sugar

Cocoa- / Milk Fat, Low in

Sugar

Upgrade of Sweets Consumption – „Trading Up“

Main drivers of chocolate consumption

Income: Main Driver of Chocolate Consumption

Inco

me

per C

apita



Largest chocolate markets

● Lindt & Sprüngli with own organisation

● Distribution via third-party distributors Source: Euromonitor & estimates

18.5

8.67.7

6.95.1 4.9

3.4 2.8 2.4 2.3 2.1 1.8 1.81.7 1.4 1.4 1.1 1.0 1.0 0.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

Lindt & Sprüngli Group 11

Top 20 Chocolate Markets in the world correspond to CHF 76.8 bn consumer value (2016)

Company Presentation 2017


Competitive environment


14.4%

13.2%

10.0%

9.5%7.2%5.1%

40.6%Mars

Mondelez

Nestlé

Ferrero

Hershey

Lindt

All Others

World Market Shares 2016

Top 6:~59%

Source: Euromonitor & estimates


Lindt business model


Consumer

«Premium»● Smooth melting / taste

● Packaging

● Gifting

● Image

Willingness to experiment● Innovation / product news

● Unique product offer

Trading-up «sweet chain»

● Complexity / short runs

● High quality ingredients

● Quality shipment

● Packaging

Production / Logistics

● Market share / space

● Absolute price / kg

● Share of voice

● Trade margin

● Innovation / product news

Distribution


The Lindt Difference


Finest Cocoa Unique Rosting and Grinding

The Lindt Invention

Best Ingredients

beyond Cocoa

Finishing with Perfection


3. LONG-TERM GROWTH &KEY FIGURES


Sales growth of the L&S Group

Sales growth of the L&S Group 1996 - 2016


904 950

1 2441 327

1 423 1 460 1 4981 603

1 782

2 009

2 312

2 606 2 573 2 525 2 5792 489

2 670

2 883

3 385

3 653

3 901

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CAGR: 7.6%

CHF million


EBIT growth of the L&S Group

EBIT of the L&S Group 1996 - 2016


CHF million

86.7 84.5 115.2

130.3 143.8

158.4 170.8 188.7

215.8 248.6

297.2

350.8 361.2

264.8

325.3 328.7 330.1

404.1

474.3

518.8

562.5

0

100

200

300

400

500

600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CAGR: 9.8%


P&L statement L&S Group

CHF million 2015 2016 Growth in CHF

SalesGrowth in local currency

3 653.3 3 900.9 +6.8%+6.0%

EBITDAMargin

645.817.7%

714.018.3% +10.6%

EBITMargin

518.814.2%

562.514.4% +8.4%

Net IncomeMargin

381.010.4%

419.810.8% +10.2%

Organic growth of +6.0% and EBIT margin increase of +20 BP fully in line with long term guidance



Global sales – well diversified


42.6%

14.1%

9.8%

4.3%

6.2%

5.3%

6.0%

11.7%

North America

Germany

France

Switzerland

Italy

UK

Rest of Europe

All other markets

Global NNTS

CHF3.9 bn


Organic growth by segment

Strong growth in All Other and Europe

7.4%

3.4%

10.2%

0%

2%

4%

6%

8%

10%

12%

EUROPE NAFTA All Other



Strong balance sheet

3 4903 674

2 000

2 500

3 000

3 500

2015 2016

55.7% 57.1%

0%

10%

20%

30%

40%

50%

60%

2015 2016

-681

-473

-850

-650

-450

-250

-50

2015 2016

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

Strong equity further strengthened



4. STRATEGY GOING FORWARD


Macro Challenges

Key challenges confectionery


SeismicShifts

OperatingEnvironment

• Economic environment US, EU, BRICs• Elections / trade barriers• FX & commodity volatility• Trade partners

• Demographics• Distinct consumer preferences• Niche brands via digital• E-commerce in multi-channel strategy

• Retail landscape / global discounters• E-commerce consumer• Slow growth of global chocolate market• Importance of sustainability


OperatingEfficiency

MarketingExcellence

Lindt & Sprüngli‘s responses


Sales

• Strengthen distinctiveness • Innovation to meet needs & dreams• Focus on core franchises• Exploit new market segments

• Premium at POS• Expansion of store network• Opportunities in digital channels• Distr., alternative / impulse channels

• Lean program in production• Cost synergies / savings• Efficiency in planning / supply chain


● 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


Outlook - Summary

The Group confirms its mid/long term goal of an organic sales growth target of 6 – 8% combined with an increase in EBIT of 20 – 40 basis points

For the business year 2017, Lindt & Sprüngli expects organic sales broadly in line with past year and a further improvement in the EBIT margin


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.


Lindt & Sprüngli Company Presentation · Strategy going forward. ... Marketing. Excellence. Lindt...

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