half-year 2016 · agenda. investor presentation hy2016 july 22, 2016. 1. performance highlights...
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INVESTOR PRESENTATIONHALF-YEAR 2016
AGENDA
July 22, 2016Investor Presentation HY2016
1. Performance Highlights HY2016
2. P&L and B/S Details HY2016
3. Outlook Environment 2016
2
PERFORMANCE HIGHLIGHTS HY2016
P&L STATEMENT L&S GROUP
Sales Growth in Swiss Francs at +6.6%, EBITDA-margin improvement by +50bp
CHF million HY2015 HY2016Y-o-Y Growth
in CHF Organic
Salesexcluding Russell Stover
1 408.9 1 501.5 +6.6% +4.4%+6.6%
EBITDAMargin
149.810.6%
167.311.1%
+11.7%
EBITMargin
90.66.4%
98.46.6%
+8.6%
Net Income Margin
65.04.6%
72.24.8%
+11.1%
July 22, 2016Investor Presentation HY2016 4
BALANCE SHEET
3 490
3 291
2 000
2 500
3 000
3 500
31.12.2015 30.06.2016
55.7% 56.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
31.12.2015 30.06.2016
-682 -705
-850
-650
-450
-250
-50
31.12.2015 30.06.2016
Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million
July 22, 2016
Investor Presentation HY2016
5
Continued Strong Equity to BS ratio, Slight Increase of Net Debt
P&L AND B/S DETAILS HY2016
SALES ANALYSIS − 5 YEARS IN CHF
1 033
1 1321 200
1 409
1 502
800
900
1 000
1 100
1 200
1 300
1 400
1 500
1 600
HY2012 HY2013 HY2014 HY2015 HY2016
17.4%2.6% 9.6% 6.6%
Absolute in CHF millionGrowth in %
July 22, 2016Investor Presentation HY2016 7
Increase in CHF by +6.6%
6.0%
1 033
1 1321 200
1 409
1 502
800
1 000
1 200
1 400
1 600
HY2012 HY2013 HY2014 HY2015 HY2016
SALES ANALYSIS −5 YEARS IN LOCAL CURRENCIES
9.2%5.3% 8.7% 4.4%
Absolute in CHF millionIncrease p.a. in local currencies (organic growth in %)
July 22, 2016Investor Presentation HY2016 8
Organic Growth of +4.4% (excluding Russell Stover +6.6%)
9.4%
37.9%
15.8%9.8%
9.2%
6.7%
6.3%
5.7%
8.6%
SALES ANALYSIS − MARKETS
Total NNTS CHF
1.502bn● North America incl. RS
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
July 22, 2016Investor Presentation HY2016 9
+1.8%
+4.4%
+6.6%
+2.6%
+2.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Volume Price/Mix Organic Forex Reported in CHF
SALES ANALYSIS − DRIVERS
July 22, 2016Investor Presentation HY2016 10
Volume and Price/Mix Impact strongly driven by Russell Stover − Positive Forex-Impact
+5.4%
+6.6%
+1.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Volume Price/Mix Organic
SALES ANALYSIS − DRIVERS (EXCL. RSC)
July 22, 2016Investor Presentation HY2016 11
Organic Growth (excluding Russell Stover) Strongly Driven by Sales Volume
SALES ANALYSIS − SEGMENT INFORMATION
10.3%
6.6%
0.0%
4.0%
8.0%
12.0%
HY 2015 HY 2016
Europe NAFTA (excl. RS) Rest of World
6.9%5.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
HY 2015 HY 2016
18.2%
10.2%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
HY 2015 HY 2016
July 22, 2016Investor Presentation HY2016 12
Good Organic Growth against a Strong HY 2015
MATERIAL COSTS − CHANGES IN INVENTORIES
Absolute in CHF millionIn % Sales
358 379423
510 525
0
100
200
300
400
500
600
HY2012 HY2013 HY2014 HY2015 HY2016
34.7% 33.4% 35.2% 34.9%
July 22, 2016Investor Presentation HY2016 13
Material Costs Including Changes in Inventories Decreased by -130 BP
36.2%
PERSONNEL EXPENDITURE
In CHF millionIn % Sales
277306 309
373394
0
100
200
300
400
HY2012 HY2013 HY2014 HY2015 HY2016
26.8% 27.0% 25.8% 26.2%
July 22, 2016Investor Presentation HY2016 14
Personnel Expenses Decreased by -30 BP thanks to Scale and Efficiency Gains
26.5%
OPERATING/MARKETING EXPENSES
In CHF millionIn % Sales
309338 348
384422
0
100
200
300
400
HY2012 HY2013 HY2014 HY2015 HY2016
30.0% 29.8% 29.0% 28.1%
July 22, 2016Investor Presentation HY2016 15
Expense Ratio Increases by +90 BP due to Higher Marketing Investments
27.2%
DEPRECIATION, AMORTIZATION AND IMPAIRMENT
46 49 5159
69
0
20
40
60
80
HY2012 HY2013 HY2014 HY2015 HY2016
4.5% 4.3% 4.2%
Absolute in CHF millionIn % Sales
4.6%
July 22, 2016Investor Presentation HY2016 16
Higher Depreciation Charge as a Result of Increased CAPEX
4.2%
OPERATING PROFIT (EBIT)
46
66
77
9198
0
20
40
60
80
100
HY2012 HY2013 HY2014 HY2015 HY2016
4.5% 5.8% 6.4%
Absolute in CHF millionIn % Sales
6.6%
July 22, 2016Investor Presentation HY2016 17
EBIT Margin Increases by +20 BP
6.4%
NET INCOME
35
4956
6572
0
20
40
60
80
HY2012 HY2013 HY2014 HY2015 HY2016
3.4% 4.3% 4.7% 4.8%
Absolute in CHF millionIn % Sales
July 22, 2016Investor Presentation HY2016 18
Financial Charges Unchanged, Decrease in Tax Rate
4.6%
OPERATING CASH FLOW & CAPEX
159
211
171
308
237
0
100
200
300
HY2012 HY2013 HY2014 HY2015 HY2016
65 84 105 125
Operating Cash Flow in CHF millionCAPEX in CHF million
July 22, 2016Investor Presentation HY2016 19
Ongoing High Capex to Support Further Growth
104
NET FINANCIAL POSITION − DEVELOPMENT
Net Cash in CHF million
-682
-445
-705237
52
-187
-125 0
-1 000
-800
-600
-400
-200
0
31.12.2015 OperatingCash Flow
CapitalIncrease
Dividend CapitalExpenditure
CTA/Other 30.06.2016
July 22, 2016Investor Presentation HY2016 20
Net Financial Position Decreases Slightly
OUTLOOK 2016
OUTLOOK ENVIRONMENT 2016
● Stable economic outlook for Europe / North America but low growth rates
● Consumer sentiment potentially impacted by political uncertainties (Brexit / elections USA)
● Continued cost challenge from further increasing cocoa bean- and butter prices
● Challenging trade environment with partners competing on price, limiting needed price adjustments
● Good seasonal product programs leading to increasing organic growth in 2nd half 2016
● Continued portfolio review at Russell Stover
● Accelerated expansion of own store network (Global Retail)
● Start of programs for cost synergies within the 3 US companies
● Continued strengthening of LINDT brand
● Ongoing optimization through efficiency increases and cost management
● Confidence to reach mid- to long term growth targets
July 22, 2016Investor Presentation HY2016 22
Continued Challenging Conditions
Lindt Answers
INVESTOR PRESENTATION HY2016 – JULY 22, 2016
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.
July 22, 2016Investor Presentation HY2016 24