annual results 2007 lindt &...

1 FINANCIAL ANALYSTS‘ PRESENTATION FULL YEAR 2007

LINDT & SPRÜNGLIAnnual Results 2007

Financial Analysts PresentationMarch 18, 2008


LINDT & SPRÜNGLILINDT & SPRÜNGLIContents

• Annual Results 2007

• Balance Sheet 2007

• Share Development & Valuation

• Material Cost Development


LINDT & SPRÜNGLI

Annual ResultsHighlights 2007


LINDT & SPRÜNGLILINDT & SPRÜNGLIResults 2007 – Highlights P&L

NET TRADE SALES

9,1%

18,5%

19,7%

18,0%

16,6%

11,8%

13,9%

0,0% 4,0% 8,0% 12,0% 16,0% 20,0%

341

1.123

251

351

444

2.946

CHF Mio. Increase in % vs. 2006

EBITDA

EBIT

NET INCOME

EPS REG. (CHF)

CASH FLOW

NTS* ORGANIC

* NTS = Net Trade Sales


LINDT & SPRÜNGLILINDT & SPRÜNGLIResults 2007 – Highlights B/S

Equity B/S ratioin %

1.389

1.158

700

800

900

1.000

1.100

1.200

1.300

1.400

2006 2007

EquityCHF Mio

56,3%

54,2%

52,0%

53,0%

54,0%

55,0%

56,0%

57,0%

2006 2007

70

110

0

20

40

60

80

100

120

2006 2007

Net Cash Y/ECHF Mio


1.8011.995

2.247

2.586

2.946

0

500

1.000

1.500

2.000

2.500

3.000

2003 2004 2005 2006 2007

LINDT & SPRÜNGLILINDT & SPRÜNGLIConsolidated NTS – Organic Growth

absolute in CHF millions increase vs. previous year in local currencies & net of acquisition effects

+ 11.8%+ 7.8% + 12.5% + 11.4% + 13.7%


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

Organic Growth Split Currency CHF as published

LINDT & SPRÜNGLILINDT & SPRÜNGLIDetails of Sales Performance 2007

Split NTS Peformance 2007 vs. 2006 in its components

11.8%Mix 1.0%

2.1% 13.9%

Volume8.4%

Price2.4%


1.8011.995

2.247

2.586

2.946

0

500

1.000

1.500

2.000

2.500

3.000

2003 2004 2005 2006 2007

LINDT & SPRÜNGLILINDT & SPRÜNGLIConsolidated NTS – Growth in CHF

absolute in CHF millions increase vs. prev. year in % of CHF

+ 5.6% + 12.6% + 15.1% + 13.9%+ 12.0%


LINDT & SPRÜNGLINet Trade Sales by Market 2007

Sales 2007: Split by Market

23.4%

8.5%5.4%

8.2% 5.4%

13.0%

18.0%

18.1%

Switzerland

Germany

France

Italy

UK

Rest of Europe

North America

Rest of World

Total NTS: CHF 2’946 Mio


LINDT & SPRÜNGLISales Development by Market2007 vs. 2006 (local currencies)

2.1%

11.8%

16.7%

14.0%

17.0%

11.6%

14.6%

22.3%

7.2%

11.8%12.8%

26.5%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

Total

Group

D F CH Dom &

Export

AUT U.K. POL E Italy

&

Caffarel

AUS USA

& Ghirardelli

CAN

Sales Growth by Market


686,5772,1

901,4

602,5525,6

0

100

200

300

400

500

600

700

800

900

1.000

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIMaterial Costs

absolute in CHF millions in % of NTS

29.2% 30.2% 30.6% 29.9% 30.6%


6.0116.293

7.793

7.0446.652

3.000

4.000

5.000

6.000

7.000

8.000

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIHeadcount and NTS per Employee

378300 317 338 367

Average number of employees NTS per employee in CHF ('000)

+ 10.6%


493546

596

453414

0

100

200

300

400

500

600

2003 2004 2005 2006 2007

LINDT & SPRÜNGLI

23.0% 22.7% 21.9% 20.2%21.1%

Personnel Expenses


+ 9.2%


617678

1.055

905769

0100200300400500600700800900

1.0001.100

2003 2004 2005 2006 2007

LINDT & SPRÜNGLI

34.3% 34.0% 34.2% 35.0% 35.8%

Operating/Marketing Expenses


+ 16.6%


265295

325

381

444

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIEBITDA

14.7% 14.8% 14.7%14.5% 15.1%


+ 16.6%


76,5 79,3 76,584,0

93,5

0102030405060708090

100

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIDepreciation


4.2% 4.0% 3.2%3.4% 3.2%


188,7215,8

248,6

350,8

297,2

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007

LINDT & SPRÜNGLI

10.5% 10.8% 11.1% 11.5% 11.9%

+ 18.0%

Operating Profit (EBIT)



-2.8-2.9-3.4

-6.3

-2.5

-7

-6

-5

-4

-3

-2

-1

0

LINDT & SPRÜNGLI

2003 2004 2005 2006 2007

Net Financial Expenses

absolute in CHF millions


179,6212,4

245,7

294,7

348,0

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIIncome before Taxes

10.0% 10.6% 10.9% 11.4% 11.8%


+ 18.1%


LINDT & SPRÜNGLICorporate Tax Rate

28.0%

29.0%

29.7%29.9%

31.8%

26,0%

28,0%

30,0%

32,0%

2003 2004 2005 2006 2007

Tax Rate


250,5

209,2

172,7149,0

122,4

0

50

100

150

200

250

2003 2004 2005 2006 2007

LINDT & SPRÜNGLI

6.8% 7.5% 7.7% 8.1% 8.5%

+ 19.7%

Net Income



340,9312,6

257,2231,2

206,2

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007

LINDT & SPRÜNGLI

75.1 99.2 128.9 146.4 235.1

+ 9.1%

Cash Flow & Investments in Fixed Assets

Cash flow Investments in fixed assets in CHF millions


-20

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

300

320

340

LINDT & SPRÜNGLILINDT & SPRÜNGLICash Flow Generation and its use

Cash Flow 2007: CHF 340.9 millions(„Net Free Cash Flow“ – before dividends – CHF – 17.7 Mio)

Cash Flow Investments Change Working Capital

340.9

-235.1

-123.5


LINDT & SPRÜNGLI

Balance SheetHighlights 2007


LINDT & SPRÜNGLIConsolidated B/S 2007 vs. 2006

Assets (CHF millions)

Liabilities (CHF millions)

257 227

804 930

359442

714

870

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

2600

Cash & marketable sec. Accounts receivable

Inventory Fixed assets

312

379546

320222

277

1'1581'389

0

200

400

600

800

1'000

1'200

1'400

1'600

1'800

2'000

2'200

2'400

2'600

Accounts payable Short-term liabilitiesLong-term liabilities Equity

2006 2007 2006 2007


LINDT & SPRÜNGLIWorking Capital Development 07 vs. 06

Working Capital (Monthly Average) (CHF millions)

577

360

-158

661

431

-203

-400

-200

0

200

400

600

800

1'000

A. Receivable Inventory

A. Payable Net Work. Cap.

2006 2007 + 14.1 %

779889


56.3%54.2%50.9%

45.8% 46.3%

0%

10%

20%

30%

40%

50%

60%

2003 2004 2005 2006 2007

LINDT & SPRÜNGLIEquity in Percentage of B/S Total

Equity in % of BS total Return on Equity (average BS)

18.3% 19.6% 19.6% 19.7% 19.7%


70.1

22.2-1.2

- 59.2

110.0

-75

-50

-25

0

25

50

75

100

125

LINDT & SPRÜNGLINet Debt- / Cash Position

in CHF millions

2003 2004 2005 2006 2007

Development Net- / Cash Position 2003 - 2007


LINDT & SPRÜNGLISales Development by Market2007 vs. 2006 (local currencies)

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

Net Cash position development 2007 (Mio CHF)

Net Cash31.12.06

Net FreeCash Flow

2007

CapitalIncrease

Divest-ments

CurrencyEffect

Sale ownShares

Dividends Net Cash31.12.07

110.0 -17.7 20.1

0.8 2.1 16.5 -61.7

70.1


18.6%18.1%17.9%

17.2%

15.2%

10.0%

12.5%

15.0%

17.5%

20.0%

2003 2004 2005 2006 2007

LINDT & SPRÜNGLILINDT & SPRÜNGLIReturn on Invested Capital (ROIC)

ROIC 2003 - 2007


LINDT & SPRÜNGLI

Share Development& Valuation


LINDT & SPRÜNGLI

4'000

8'000

12'000

16'000

20'000

24'000

28'000

32'000

36'000

40'000

44'000

97 98 99 00 01 02 03 04 05 06 07

400

800

1'200

1'600

2'000

2'400

2'800

3'200

3'600

4'000

4'400

Reg PC

Reg

. Sh

are

(CH

F)

PC

(C

HF

)

Registered Share and PC price (year end)

Reg. Share Performance 1997 – 2007 :

CAGR 97 – 07: Reg. Share 21.6% / PC 22.6%


LINDT & SPRÜNGLIP/E multiple development 97 – Current

19.7

24.3 24.327.6

32.4

27.824.0

18.422.3

35.4

22.2

0

5

10

15

20

25

30

35

40

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year End P/E valuation (registered share)


LINDT & SPRÜNGLISpread Registered vs. PC (in % year end)

-2.5%

2.5%

7.5%

12.5%

Spread 10.6% 0.1% 3.8% 3.8% 1.1% -2.3% 7.3% 2.9% -1.9% 2.0% 1.5% 2.6%

97 98 99 00 01 02 03 04 05 06 07 AVG

Spread calculated on year end figures


LINDT & SPRÜNGLIOther Key Share Figures

Share Key Figures

2003 2004 2005 2006 2007

Dividend Reg. Share (CHF) 140 180 225 275* 330*

- Increase (CHF) 30 40 45 50 55

Dividend Yield Reg. S. 1.3% 1.1% 1.0% 0.9% 0.8%

Pay-Out Ratio 24.9% 26.5% 28.7% 29.2% 29.5%

Reg. Share (CHF) 11'050 16'650 21'950 30'700 39'770

Particip. Share (CHF) 1'030 1'618 2'237 3'008 3'920

Capitalization (CHF Mio) 2'349 3'589 4'864 6'754 8'871

*Proposed by Board of Directors


LINDT & SPRÜNGLI

Material Costs


LINDT & SPRÜNGLI

Cocoa Bean Production –by Main Countries (2007 / 08E)

1.377.000

675.000

611.000

185.000

137.000

718.000 Ivory Coast

Ghana

Indonesia

Nigeria

Brazil

All others

38.2%

17.2%16.5%

5.0%

3.7%

19.4%

2007/08E Cocoa Production : 3,703,000 Tons net*

*Source: ICCO, London and Cocoa Trade


LINDT & SPRÜNGLICocoa Bean Crop / Grindings Balance

42.4%

15.5%

5.5%

5.5%

16.2%

Cocoa Beans '000' tons

3'346

3'687

3'366

3'700

3'354

3'520 3'608 3'750

-50-8

167

-242-250

250

750

1'250

1'750

2'250

2'750

3'250

3'750

04/05 05/06 06/07 07/08

Crop Grindings Surpl./Deficit


LINDT & SPRÜNGLICocoa Terminal Price Development 2nd position LIFFE (GBP/Ton) 1992-2008

05

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

92 93 94 95 96 97 98 99 20 01 02 03 04 05 06 07 08

1517

1186 (9/97)

547 (12/99)

1649 (10/02)

509 (6/92)

1567


LINDT & SPRÜNGLICocoa Butter Ratio + Sugar DevelopmentJan. 07 – Jan. 08 (CHF / 100 kg)

Rat

io m

ultip

leC

HF

/100

kg

Sugar Price: Jan 07 - Feb 08

105

107

109

111

113

115

117

119

121

J07 F M A M J J A S O N D J08 F

Cocoa Butter Ratio: Jan 07 - Feb 08

2.52.62.72.82.9

33.13.23.33.43.5



LINDT & SPRÜNGLIOil Seeds Price DevelopmentJan. 07 – Jan. 08 (CHF / 100 kg)

CH

F/1

00 k

gC

HF

/100

kg

Almonds: Jan 07 - Feb 08

630

680

730

780

830

880


Hazelnuts: Jan 07 - Feb 08

600

700

800

900

1000

1100



LINDT & SPRÜNGLIExpected Material Cost Trends 2008 / 2009

Cocoa Products:

- Terminal Market M/T upward > GBP 1’500/t- Differentials stable at high levels- Butter Ratio reduction from high levels

possible

Other Raw Materials:

- Milk volatile, following upward move- Sugar very volatile / EU / Brazil- Hazelnuts maintaining high level- Almonds stable

Packaging:

- Paper & Cardboard inflationary upward trend- Metals & Flexibles inflationary upward trend


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annual results 2007 lindt &...

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