lindt & sprüngli company presentation · strategy going forward. ... marketing. excellence....
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Maître Chocolatier Suisse Depuis 1845
Lindt & Sprüngli Company Presentation
Maître Chocolatier Suisse Depuis 1845
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
Maître Chocolatier Suisse Depuis 1845
1. WHO WE ARE
Maître Chocolatier Suisse Depuis 1845
From Swiss chocolatier to global brand
After impressive journey Lindt is well positioned to manifest excellence in 2017 and beyond
Company Presentation 2017Lindt & Sprüngli Group 4
Maître Chocolatier Suisse Depuis 1845
Lindt & Sprüngli around the globe
370Shops
worldwide
12Production
facilities
13’500Employees
FTEs
24Subsidaries worldwide
~ 100Distributors
Company Presentation 2017Lindt & Sprüngli Group 5
Maître Chocolatier Suisse Depuis 1845
Brand portfolio
Company Presentation 2017Lindt & Sprüngli Group 6
Global brand> 75% of sales
Regional brands~ 22% of sales
Local brand~ 3% of sales
LINDOR SEASONEXCELLENCE PRALINES
Key Products/ Brands
Maître Chocolatier Suisse Depuis 1845
2. DRIVERS OF OUR BUSINESS MODEL
Maître Chocolatier Suisse Depuis 1845
World chocolate market 2016
Company Presentation 2017Lindt & Sprüngli Group 8
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
Maître Chocolatier Suisse Depuis 1845
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
Maître Chocolatier Suisse Depuis 1845
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
Company Presentation 2017Lindt & Sprüngli Group 10
Maître Chocolatier Suisse Depuis 1845
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
Maître Chocolatier Suisse Depuis 1845
Competitive environment
Company Presentation 2017Lindt & Sprüngli Group 12
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
Maître Chocolatier Suisse Depuis 1845
Lindt business model
Company Presentation 2017Lindt & Sprüngli Group 13
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
Maître Chocolatier Suisse Depuis 1845
The Lindt Difference
Company Presentation 2017Lindt & Sprüngli Group 14
Finest Cocoa Unique Rosting and Grinding
The Lindt Invention
Best Ingredients
beyond Cocoa
Finishing with Perfection
Maître Chocolatier Suisse Depuis 1845
3. LONG-TERM GROWTH &KEY FIGURES
Maître Chocolatier Suisse Depuis 1845
Sales growth of the L&S Group
Sales growth of the L&S Group 1996 - 2016
Company Presentation 2017Lindt & Sprüngli Group 16
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
Maître Chocolatier Suisse Depuis 1845
EBIT growth of the L&S Group
EBIT of the L&S Group 1996 - 2016
Company Presentation 2017Lindt & Sprüngli Group 17
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%
Maître Chocolatier Suisse Depuis 1845
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
Company Presentation 2017Lindt & Sprüngli Group 18
Maître Chocolatier Suisse Depuis 1845
Global sales – well diversified
Company Presentation 2017Lindt & Sprüngli Group 19
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
Maître Chocolatier Suisse Depuis 1845
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
Company Presentation 2017Lindt & Sprüngli Group 20
Maître Chocolatier Suisse Depuis 1845
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
Company Presentation 2017Lindt & Sprüngli Group 21
Maître Chocolatier Suisse Depuis 1845
4. STRATEGY GOING FORWARD
Maître Chocolatier Suisse Depuis 1845
Macro Challenges
Key challenges confectionery
Company Presentation 2017Lindt & Sprüngli Group 23
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
Maître Chocolatier Suisse Depuis 1845
OperatingEfficiency
MarketingExcellence
Lindt & Sprüngli‘s responses
Company Presentation 2017Lindt & Sprüngli Group 24
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
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
Company Presentation 2017Lindt & Sprüngli Group 25
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
Maître Chocolatier Suisse Depuis 1845
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.
Company Presentation 2017Lindt & Sprüngli Group 26
Maître Chocolatier Suisse Depuis 1845