investor conference half year 2019 - lindt & sprüngli...maître chocolatier suisse depuis 1845...

Maître Chocolatier Suisse Depuis 1845

Investor ConferenceHalf Year 2019


1. Performance Highlights HY 2019

2. P&L and B/S Details HY 2019

3. Outlook 2019

4. Raw Materials

Agenda

July 23, 2019HY 2019 Investor Presentation 2


1. Performance Highlights HY 2019


P&L Statement L&S Group

July 23, 2019HY 2019 Investor Presentation

CHF million HY 2018 HY 2019 Growth in %

SalesOrganic growth

1 668.2 1 757.8 +5.4%+6.2%

EBITDAMargin

203.612.2%

253.214.4%

+24.4%

EBITMargin

117.17.0%

126.27.2%

+7.8%

Net IncomeMargin

86.05.1%

88.15.0%

+2.4%

Organic growth of +6.2% and EBIT-margin increase of +20 bp

4


Balance sheet(Opening balance as of January 1, 2019 after IFRS 16 change)


57.8% 57.3%

50%

52%

54%

56%

58%

60%

01.01.2019 30.06.2019

-529

-781

-900

-800

-700

-600

-500

-400

-300

-200

-100

0

01.01.2019 30.06.2019

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

Solid balance sheet and equity ratio

7 765

7 179

6 8006 9007 0007 1007 2007 3007 4007 5007 6007 7007 8007 900

01.01.2019 30.06.2019

5


2. P&L and B/S Details HY 2019


1 4091 502

1 5491 668

1 758

800

1 000

1 200

1 400

1 600

1 800

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Sales analysis – 5 years in local currencies


Good organic growth within guidanceAbsolute in CHF millionIncrease p.a. in local currencies (organic growth in %)

5.1%4.4%9.4% 3.6% 6.2%

7


1 4091 502

1 5491 668

1 758

800

1 000

1 200

1 400

1 600

1 800

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Sales analysis – 5 years in CHF


Increase by +5.4% due to strengthening of CHFAbsolute in CHF millionGrowth rate in %

7.7%6.6%17.4% 3.1% 5.4%

8


Sales analysis - markets


4.4%9.2%8.7% 9.4% 6.8%

Total Sales CHF

1.76bn● North America

● Germany

● France

● CH excl. Exports

● Italy

● UK

● Rest of Europe

● Rest of the World

35.5%

16.7%8.9%

4.4%

6.4%

6.3%

7.0%

14.8%

Increased share in North America and Rest of Europe

9


5.6%6.2%

5.4%

0.6% 0.8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Volume Price / Mix Organic Forex Reported in CHF

Sales analysis - drivers


Slight increase of price/mix

10


Organic growth in %Absolute in CHF million

Sales analysis – segment information


5.0% 5.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

HY 2018 HY 2019

856 874

4.0%

7.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

HY 2018 HY 2019

623564

8.4% 8.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

HY 2018 HY 2019

261248

Europe North America Rest of the World

North America accelerating in HY 2019

Number above column: sales of respective period

11


510 525 524 559 562

0

100

200

300

400

500

600

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Material costs – incl. changes in inventories


Material expenses at record low levelAbsolute in CHF millionIn % sales

33.5%34.9%36.2% 33.8% 32.0%

12


Cocoa prices and butter ratio

22.5% 22.7% 21.2% 21.7%22.1%

Cocoa Beans Prices in GBP t Butter Ratio


1 350

1 450

1 550

1 650

1 750

1 850

1 950

Jan. 18 Mrz. 18 Mai. 18 Jul. 18 Sep. 18 Nov. 18 Jan. 19 Mrz. 19 Mai. 192.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

Butter Ratio Cocoa Liffe

Jun. 19

13


373 394 416443 464

0

50

100

150

200

250

300

350

400

450

500

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Personnel expenditure


Continuous efficiency gains, partly offset by higher costs in Retail

26.5% 26.2% 26.9% 26.4%26.6%

In CHF millionIn % Sales

14


384422 433

471 486

0

100

200

300

400

500

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Operating expenses


Continued high marketing investments, impact from new IFRS Leasing Standard

27.2% 28.1% 28.0% 27.6%28.2%

In CHF millionIn % Sales

15


5969

7987

127

0

20

40

60

80

100

120

140

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Depreciation, amortization and impairment


Higher depreciation ratio by due to new IFRS Leasing Standard

4.2% 4.6% 5.1% 7.2%5.2%

Absolute in CHF millionIn % Sales

16


Operating profit (EBIT)


Continued margin improvement: +20 bp

+XXX +XXX +XXX +XXX+XXX

9198

105117

126

0

20

40

60

80

100

120

140

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

6.4% 6.8% 7.0% 7.2%6.6%


17


Net income


Higher financial charges, decrease in Tax Rate


6572

7686 88

0

20

40

60

80

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

4.6% 4.9% 5.1% 5.0%4.8%


18


Capex


Continued high investments


104

125

86

117

100

0

20

40

60

80

100

120

140

HY 2015 HY 2016 HY 2017 HY 2018 HY 2019

Operating Cash Flow in CHF millionCAPEX in CHF million

19


Net financial position − development


Increase of net debt due to new Leasing Standard and the share buyback program

-13 -131

-781*

-516 -529398

-10042 -237

-336

-19-800

-700

-600

-500

-400

-300

-200

-100

0

31.12.2018 Impact newLeasingStandard

01.01.2019 OperatingCash Flow

CapitalExpenditure

CapitalIncrease

Dividendpaid

Share BuyBack

CTA/Other 30.06.2019

Net Cash in CHF million

298Free Cash Flow

573Return to Shareholder

*265 million excl. IFRS 16

20


3. Outlook 2019


The Group confirms its mid- to long-term goal of an organic sales growth target of5 – 7% combined with an average increase in EBIT of 20 – 40 basis points.

For the 2019 financial year, the Group expects organic sales and profit growth to be in those targeted mid- to long-term brackets

Outlook - Summary



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.

23


4. Raw MaterialsJune 2019


Cocoa crop – grinding balance

Cocoa beans in ‘000 t

22.5% 22.7% 21.2% 21.7%22.1%



Cocoa prices and butter ratio

22.5% 22.7% 21.2% 21.7%22.1%

Cocoa Beans Prices in GBP t Butter Ratio


1 350

1 450

1 550

1 650

1 750

1 850

1 950

Jan. 18 Mrz. 18 Mai. 18 Jul. 18 Sep. 18 Nov. 18 Jan. 19 Mrz. 19 Mai. 192.60

2.65

2.70

2.75

2.80

2.85

2.90

2.95

3.00

3.05

Butter Ratio Cocoa Liffe

Jun. 19

26


Cocoa product prices 2018 - 2019

22.5% 22.7% 21.2% 21.7%22.1%

Cocoa London Cocoa NY Butter ratio


1 350

1 450

1 550

1 650

1 750

1 850

1 950

Jan.

18

Mrz

. 18

Mai

. 18

Jul.

18

Sep.

18

Nov

. 18

Jan.

19

Mrz

. 19

Mai

. 19

GBP

/t

Jun.

19 2.60

2.70

2.80

2.90

3.00

Jan.

18

Mai

. 18

Sep.

18

Jan.

19

Mai

. 19

Jun.

19

1 850

1 950

2 050

2 150

2 250

2 350

2 450

2 550

2 650

2 750

2 850

Jan.

18

Mai

. 18

Sep.

18

Jan.

19

Mai

. 19

USD

/t

Jun.

19

27


Nut & almond prices 2018 - 2019

22.5% 22.7% 21.2% 21.7%22.1%

Hazelnuts Almonds


5 200

5 700

6 200

6 700

7 200

7 700

8 200

Jan.

18

Mrz

. 18

Mai

. 18

Jul.

18

Sep.

18

Nov

. 18

Jan.

19

Mrz

. 19

Mai

. 19

USD

/t

Jun.

19

6 500

7 000

7 500

Jan.

18

Mrz

. 18

Mai

. 18

Jul.

18

Sep.

18

Nov

. 18

Jan.

19

Mrz

. 19

Mai

. 19

USD

/t

Jun.

19

28


Milk prices 2018 - 2019

Milk powder 26% in EUR


1 600

2 000

2 400

2 800

3 200

3 600

4 000

4 400

4 800

5 200

5 600

6 000

Jan

18

Feb

18

Mrz

18

Apr 1

8

Mai

18

Jun

18

Jul 1

8

Aug

18

Sep

18

Okt

18

Nov

18

Dez

18

Jan

19

Feb

19

Mrz

19

Apr 1

9

Mai

19

Jun

19

Ref. VMP CH AMI VMP EU AMI VMP World

3’355

2’985

5’446

29


Sugar prices 2018 - 2019

Sugar (prices in USD / Ton)

22.5% 21.2%


300

400

500

600

700

800

900

Jan

18

Feb

18

Mrz

18

Apr 1

8

Mai

18

Jun

18

Jul 1

8

Aug

18

Sep

18

Okt

18

Nov

18

Dez

18

Jan

19

Feb

19

Mrz

19

Apr 1

9

Mai

19

Jun

19

CH EU Market USA West coast beat sugar Liffe

926

655

345

321

30

investor conference half year 2019 - lindt & sprüngli...maître chocolatier suisse depuis 1845...

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