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March 8th, 2016
Financial Year 2015
ANALYSTS‘ CONFERENCE
GROUP MANAGEMENT
08.03.2016Financial Analysts' Conference 2016 3
Dr. Dieter WeisskopfFinance, Administration, IT, Procurement, Operations
Rolf FalleggerFR, IT, UK, PL, CZ, RU, China
Andreas PflugerCEO Russell Stover, N/America, AUS
Uwe SommerMarketing, Sales, Global Retail,
Markets
Ernst TannerChairman & Group CEO
08.03.2016Financial Analysts' Conference 2016 4
EXTENDED GROUP MANAGEMENT
Kamillo KitzmantelCH, Export, Duty Free
Thomas LinemayrUSA
Dr. Adalbert LechnerDE, AT
AGENDA
08.03.2016Financial Analysts' Conference 2016 5
1. Key figures financial year 2015 E. Tanner
2. Markets
● North America A. Pfluger
● UK R. Fallegger
● Germany A. Lechner
● Switzerland K. Kitzmantel
3. Global Retail U. Sommer
4. Detailed financial figures 2015 D. Weisskopf
5. Outlook E. Tanner
6. Q&A
Financial Year 2015
KEY FIGURES
A CHALLENGING YEAR
08.03.2016Financial Analysts' Conference 2016 7
Discontinuationof minimum
exchange rate EUR / CHF
High commodityprices (above all
cocoa)
Recession in oil-exportingcountries
Despite these challenges, Lindt & Sprüngli once again continuesto grow at a faster pace than the overall chocolate market
Unsettlingeffects of
terrorist threats
Concerns aboutdeflation and
unemployment
Very hot summerfollowed by
extremely mild start to winter
Challenges of the financial year 2015
P&L STATEMENT L&S GROUP
08.03.2016Financial Analysts' Conference 2016 8
Organic growth of +7.1% and EBIT margin increase of +20 BP fully in line with long term guidance
CHF million 2014 2015 Growth in CHF
Sales 3 385.4 3 653.3 +7.9%Growth in Local CurrenciesOrganic Growth
+13.5%+7.1%
EBITDAMargin
588.017.4%
645.817.7%
+9.8%
EBITMargin
474.314.0%
518.814.2%
+9.4%
Net IncomeMargin
342.610.1%
381.010.4%
+11.2%
40 000
50 000
60 000
70 000
80 000
12.2014
01.2015
02.2015
03.2015
04.2015
05.2015
06.2015
07.2015
08.2015
09.2015
10.2015
11.2015
12.2015
Lindt registered share outperforming SPI by 27.1% in 2015
LINDT registered SPI adjusted
SHARE PRICE
08.03.2016Financial Analysts' Conference 2016 9
Creating shareholder value: +30.5% in 2015
31.12.2014: LISN CHF 57’160
30.12.2015: LISN CHF 74’620 +30.5% y-o-y
SHAREHOLDER RETURN
08.03.2016Financial Analysts' Conference 2016 10
Dividend payment of CHF 800 (reg.) or +10.3% vs. 2014 / continuous increase over the past 20 years
1992 2011 2012 2013 2014 2015*
Dividend Reg. (CHF) 39 500 575 650 725 800• From Agio 500 535 555 325 400
• From Retained Earnings 40 95 400 400
Increase (CHF) 50 75 75 75 75
Dividend Yield Reg. 1.4% 1.6% 1.7% 1.4% 1.3% 1.1%
Payout Ratio Reg. 16.9% 47.2% 53.1% 49.0% 49.0% 49.3%
Registered Shares(at year-end) 2 800 31 390 34 515 48 100 57 160 74 620
Market Capitalisation(CHF million) 492 6 982 7 384 10 268 12 495 16 338
* Subject to approval by the AGM
SALES ANALYSIS − MARKETS
08.03.2016 11
43.1%
13.5%
9.7%
9.1%
6.4%
5.5%
5.7%
7.0% Total NNTS CHF
3.653 bn● North America
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
Weight of sales in North America increasing from 36.8% to 43.1%
Financial Analysts' Conference 2016
Financial Year 2015
MARKETS
● North America
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
NORTH AMERICA
08.03.2016Financial Analysts' Conference 2016 13
43.1%
13.5%
9.7%
9.1%
6.4%
5.5%
5.7%
7.0%NNTS (Sales)USD 1.627 bn
L&S NORTH AMERICA 2015
08.03.2016Financial Analysts' Conference 2016 14
1994 2015
Sales (NNTS) USD 24 million USD 1.627 million
Market position > # 20 # 3
From newcomer to number 3 in the overall chocolate market
RUSSELL STOVER ACQUISITION − A MILESTONE
08.03.2016Financial Analysts' Conference 2016 15
● RS optimally complements the brand and product portfolio of Lindt and Ghirardelli
● Strengthening of the number 1 position in the premium chocolate segment
● Rapidly growing number 3 in the American chocolate market
● Leading position in “Boxed Chocolates” and seasonal business
● Strong partner to the trade
● Strong basis for further growth
● Potential synergies in various areas of the supply chain
The integration of Russell Stover is progressing according to plan
RUSSELL STOVER ACQUISITION − A MILESTONE
08.03.2016Financial Analysts' Conference 2016 16
● Positioning of the brand
● Further elimination of non-profitable businesses and promotions
● Adjustment of pricing structure
● Increasing pace of product innovation
● Strengthening of sales and marketing teams
● Tackling potentials in the area of supply chain management
● Locating / spotting synergies within the Lindt & Sprüngli Group
Priorities for Russell Stover in 2016
We strive to extend our leadership further in the attractive premium chocolate marketwith our well established brand and expand our leadership position
KEY LOCATIONS
08.03.2016Financial Analysts' Conference 2016 17
Reno, NV
Lathrop, CAButler, MO
Cookeville, TN
Wildwood, FL
Terrell, TX
Chicago, IL
Carmel Church, VA
Carlisle, PA
Stratham, NH
Corsicana, TX
Montrose, CO
Abilene, KS
Iola, KS
San Leandro, CA
Kansas City, MO
Trenton
Calgary
Mississauga
Toronto, CAN
RUSSELL STOVER − SUMMARY
08.03.2016Financial Analysts' Conference 2016 18
● Most important acquisition strategically and in size
● Integration into to the L&S Group well on track
● 2015/16 streamlining assortment and promotional activities
● Therefore 2015/16 lower sales growth focus on profitability
● In 2017 basis established for profitable growth
● Working on synergies and efficiencies between our 3 US companies
● Continue to grow the premium segment faster than the market
UNITED KINGDOM
08.03.2016Financial Analysts' Conference 2016 19
43.1%
13.5%
9.7%
9.1%
6.4%
5.5%
5.7%
7.0%NNTS (Sales)GBP 136.0 million
● North America
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
UNITED KINGDOM 2016
08.03.2016Financial Analysts' Conference 2016 20
● UK confectionery market is the 2nd largest in the world
● Confectionery remains one of the largest and most important categories in UK grocery and is bought byover 98% of UK households
UK Confectionery Market
● Sales GBP 136 million (+12.4% y-o-y)
● 4th year in a row double digit sales growth
● Helping retailers to differentiate range from discounters
Lindt & Sprüngli UK
§
FOCUS ON KEY FRANCHISES
08.03.2016Financial Analysts' Conference 2016 21
● Lindor is one of the fastest growing brands in the UK and is now the 4th biggest Confectionery Brand and a Top 100 Brand in the UK market.
● Strong advertising developed for the UK market, effective sampling programs and excellent POS activation programs
● Excellence is the largest and fastest growing Dark Chocolate Brand in the UK
§
ENTERING INTO A NEW MARKET SEGMENT
08.03.2016Financial Analysts' Conference 2016 22
● Countlines are the largest chocolate market segment in the UK
● With the launch of Lindor Treatbar we made a first entry into this untapped segment
● Initial results are promising and indicate major volume potential for Lindt & Sprüngli UK
§
LEADER IN SHOPPER MARKETING
08.03.2016Financial Analysts' Conference 2016 23
● Lindt is partnering with Key Retailers on Shopper Marketing projects to create better shopper insightsand more efficient range selections. Lindt was voted number 1 in the Advantage Survey for CategoryManagement in the UK chocolate category.
● Strengthened Category Partnerships with the Key UK retailers based on understanding and segmentingthe UK Chocolate shopper and providing Category based solutions.
§
EXPANDING RETAIL & BUILDING THE BRAND
08.03.2016Financial Analysts' Conference 2016 24
§
Fast expansion of the retail store portfolio to complement thewholesale business in key locations around the UK
Continuously strengthen the Lindt brand
L&S UK − SUMMARY
08.03.2016Financial Analysts' Conference 2016 25
● UK, as the 2nd largest chocolate market in the world, is of utmost importance for Lindt &Sprüngli
● In 2015, despite a flat market, Lindt & Sprüngli sales grew at a double digit rate and stronglygained market share
● Focus is on our key franchises Lindor and Excellence, where we grow even faster than thecompany average
● With the Lindor treatbar, we are entering a new large market segment
● Lindt & Sprüngli UK is recognized as a leader in Shopper marketing
● We are rapidly expanding our Retail network and are constantly building our Brand awareness
GERMANY
08.03.2016Financial Analysts' Conference 2016 26
NNTS (Sales)EUR 458.1 million
08.03.2016 26
43.1%
13.5%9.7%
9.1%
6.4%
5.5%
5.7%
7.0%
● North America
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
GERMANY 2015
08.03.2016Financial Analysts' Conference 2016 27
● High per capita consumption at approx. 9 kg p.a.
● German confectionery market is the 4th largest in the world
● Moderate growth based on price increases
● Fierce price competition – historic highest number of discounters
German Confectionery Market
● € 458,1 million sales (NNTS) (+7,0 % y-o-y)
● Lindt with 7th year of consecutive gains in market shares
● Market leader in Easter and Christmas chocolates and pralinés gift boxes
Lindt & Sprüngli Germany
VALUE CREATION FOR THE TRADE
08.03.2016Financial Analysts' Conference 2016 28
● Differenciation from hard discounters● Distinct price premium● High value creation● Innovations as growth driver (HELLO, Mini Pralinés, Teddy etc.)● Premium POS appearance
§
DOUBLE−DIGIT GROWTH OF KEY BRANDS
08.03.2016Financial Analysts' Conference 2016 29
21
UNCOMPROMISED STRENGTHENING OF THE BRAND
08.03.2016Financial Analysts' Conference 2016 30
● Uncompromised quality orientation● Consequent premium positioning● 360° deployment of the Master Chocolatier campaign● High pace of innovations● Brand experience at POS and in our retail stores
INNOVATION 2015: GOLD BUNNY SPECIAL EDITION
08.03.2016Financial Analysts' Conference 2016 31
1
Rejuvenation of a classic
§
BRAND EXPERIENCE AT POS
08.03.2016Financial Analysts' Conference 2016 32
● Extension of premium shelves
● Upgrades of the Lindt permanent locations
● Shop-in-shop initiatives in shopping malls and department stores
§
RETAIL − NEW LOCATIONS &STRENGTHENING OF THE BRAND
08.03.2016Financial Analysts' Conference 2016 33
Berlin Heidelberg Dresden
L&S GERMANY − SUMMARY
08.03.2016Financial Analysts' Conference 2016 34
● +7.0 % growth in 2015
● Healthy long-term trend
● Continuous gains in the market share
● Market leader in seasonal business and in praliné gift boxes
● Key range grow over-proportionally
● Innovations dynamize and rejuvenate the brand
● Extension of our retail divison
● Upgrading of our POS appearance
L&S SWITZERLAND
08.03.2016Financial Analysts' Conference 2016 35
NNTS (Sales)CHF 359.0 million
08.03.2016 35
43.1%
13.5%9.7%
9.1%
6.4%
5.5%
5.7%
7.0%
● North America
● Germany
● France
● CH incl. Exports
● Italy
● UK
● Rest of Europe
● Rest of the World
Challenging Market Environment
§
§
FOCUS ON KEY FRANCHISES AND INNOVATION
08.03.2016Financial Analysts' Conference 2016 36
Discontinuation ofminimum exchangerate EUR/CHF
Price discounts
Strong Growth of Key Franchises
LINDOR EXCELLENCE Milk-Range
Grand Plaisir
Innovation Power
Product strategy / focus
Selective distribution
200g „Blocks“ Milk-Range
Les Grandes
Declining Swiss chocolate market
FOCUS ON RETAIL EXPANSION
08.03.2016Financial Analysts' Conference 2016 37
Lindt Shop JungfraujochLindt Shop Swiss Museum of Transport Lindt Shop Zermatt
STRENGTHENING THE SWISS PRODUCTION SITE
08.03.2016Financial Analysts' Conference 2016 38
● Project «Swiss Fitness»: Efficiency improvements to support exportbusiness
● Increasing production capacities
● Strengthening and long-term commitment for swiss productionsite
L&S SWITZERLAND − SUMMARY
08.03.2016Financial Analysts' Conference 2016 39
● Challenging market environment
● Focus on key franchises and innovation
● Selective distribution
● Focus on retail expansion, tourism
● Strong commitment towards Swiss production site
WELCOME TO THE NEW LINDT SHOP
08.03.2016Financial Analysts' Conference 2016 40
Financial Year 2015
GLOBAL RETAIL
Vision
By 2020 we want to be theworld’s leading retailer of premium chocolate
STRATEGIC GOALS
08.03.2016Financial Analysts' Conference 2016 43
● Retail to achieve profitable growth above group average● Strengthening of the Lindt Brand Equity● Master Chocolatier● Lindt Difference● Display of wide product range
● Gaining new clients and real Lindt fans
ACTIONS
08.03.2016Financial Analysts' Conference 2016 44
● Building of a Global Retail Department (2009)● Development of globally multipliable shop concepts● Factory Shops● Outlet Shops● Boutiques● Cafés
● Definition of a shop specific product assortment (Focus: Pick & Mix)● Development of seasonal campaigns● Training guides for all Chocolate Advisors
RESULTS
08.03.2016Financial Analysts' Conference 2016 45
● 325 shops worldwide● Sales CHF 378.5 million (+20% y-o-y)● ~1800 employees● Sampling of 40 million LINDOR balls● Strong development of the Lindt brand
209 NEW SHOPS SINCE 2009
08.03.2016Financial Analysts' Conference 2016 46
North America2009: 542014: 1392015: 156
Europe2009: 552014: 1082015: 114
South America2009: 02014: 22015: 18
Australia2009: 62014: 122015: 18
South Africa2009: 02014: 22015: 4
Japan2009: 12014: 122015: 15
Total Shops 2009: 1162014: 275 2015: 325
MASTER CHOCOLATIER IN THE SHOPS
08.03.2016Financial Analysts' Conference 2016 47
MASTER CHOCOLATIER − SHOP EVENTS
08.03.2016Financial Analysts' Conference 2016 48
LINDT RETAIL − PICK & MIX
08.03.2016Financial Analysts' Conference 2016 49
GLOBAL RETAIL − SUMMARY
08.03.2016Financial Analysts' Conference 2016 50
By 2020 we want to be the world’s leading retailer of
premium chocolate
Strengthe-ning the Brand
Raising Brand
Awareness
Exclusive Product
Presentation/ Product
RangeUnique
Shopping Experience
Different Shop
Concepts
Global Presence
Financial Year 2015
DETAILED FINANCIAL FIGURES
SALES GROWTH − IN CHF
08.03.2016Financial Analysts' Conference 2016 52
Continuation of high growth path
Absolute in CHF million (as published)
Growth Rate in % (as published)
2 4892 670
2 883
3 385
3 653
1 700
2 200
2 700
3 200
3 700
2011 2012 2013 2014 2015
17.4%7.3%-3.5% 7.8% 7.9%
SALES GROWTH − ORGANIC
08.03.2016Financial Analysts' Conference 2016 53
Organic growth fully in line with long term goal (+6.0% to +8.0%)
Incease p.a. in local currencies (organic growth in %)
6.0%6.8%
8.6%
9.8%
7.1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2011 2012 2013 2014 2015
SALES − GROWTH FACTORS
08.03.2016Financial Analysts' Conference 2016 54
3.8%
7.1%
13.5%
7.9%3.3%
6.4% -5.6%
0%
2%
4%
6%
8%
10%
12%
14%
Volume Price / Mix Organic RSC (FY Effect) Sales in LocalCurrency
Forex Sales in CHF
Balanced growth between volume and price / mix
ORGANIC GROWTH BY SEGMENT
08.03.2016Financial Analysts' Conference 2016 55
5.4%
7.9%
11.4%
0%
2%
4%
6%
8%
10%
12%
Europe NAFTA All other
MATERIAL COSTS
08.03.2016Financial Analysts' Conference 2016 56
Material costs including inventory-changes decreased by -60 BP
Abolute in CHF million
In % Sales
892.4 940.0 943.2
1 227.91 306.0
0
200
400
600
800
1 000
1 200
1 400
2011 2012 2013 2014 2015
35.9% 35.2% 32.7% 36.3% 35.7%
NUMBER OF EMPLOYEES (FTE)
08.03.2016Financial Analysts' Conference 2016 57
Increase by 2‘468 employees mainly driven by Russell Stover
Average number of employees (FTE)
7 779 8 1578 949
10 712
13 180
3 0004 0005 0006 0007 0008 0009 000
10 00011 00012 00013 00014 000
2011 2012 2013 2014 2015
+207 +378 +792 +1 763 +2 468
540.5599.6
654.7719.5
807.1
0
200
400
600
800
2011 2012 2013 2014 2015
PERSONNEL EXPENSES
08.03.2016Financial Analysts' Conference 2016 58
Increase in the expense ratio due to Russell Stover
In CHF million
In % Sales
21.7% 22.5% 22.7% 21.2% 22.1%
OPERATING EXPENSES
08.03.2016Financial Analysts' Conference 2016 59
Continued good support of marketing investments in 2015
Absolute in CHF million
In % Sales
644.1707.9
794.9868.2
912.3
0
200
400
600
800
1 000
2011 2012 2013 2014 2015
25.9% 26.5% 27.6% 25.6% 25.0%
OPERATING PROFIT (EBIT)
08.03.2016Financial Analysts' Conference 2016 60
Increase in EBIT Margin by +20 BP to 14.2% (EBITA of 14.4%)
328.7 330.1
404.1
474.3518.8
0
100
200
300
400
500
2011 2012 2013 2014 2015
Absolute in CHF millionIn % Sales
13.2% 12.4% 14.0% 14.0% 14.2%
EBITDA
08.03.2016Financial Analysts' Conference 2016 61
Absolute increase by +9.8%
422.0 435.9
503.3
588.0645.5
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015
Absolute in CHF million
In % Sales
17.0% 16.3% 17.5% 17.4% 17.7%
CAPITAL INVESTMENTS
08.03.2016Financial Analysts' Conference 2016 62
Record high investments to cope with volume growth
Absolute in CHF million
104.2
144.6
191.4
234.6252.8
0
40
80
120
160
200
240
2011 2012 2013 2014 2015
DEPRECIATION AND IMPAIRMENTS
08.03.2016Financial Analysts' Conference 2016 63
Depreciation to sales ratio remaining stable despite high investments
93.2105.8
99.2
113.7
127.0
0
20
40
60
80
100
120
140
2011 2012 2013 2014 2015
Absolute in CHF millionIn % Sale
3.7% 4.0% 3.4% 3.4% 3.5%
TAX RATE
08.03.2016Financial Analysts' Conference 2016 64
Decrease in 2015 due to tax optimization
In % of income before taxes
25.0% 25.6% 24.5%
27.5%25.5%
0%
10%
20%
30%
2011 2012 2013 2014 2015
NET INCOME
08.03.2016Financial Analysts' Conference 2016 65
Increase in net income margin by +30 BP to 10.4%
246.5 244.9
303.0
342.6
381.0
0
50
100
150
200
250
300
350
400
2011 2012 2013 2014 2015
Absolute in CHF million
In % Sales
9.9% 9.2% 10.5% 10.1% 10.4%
NET FINANCIAL POSITION − DEVELOPMENT
08.03.2016Financial Analysts' Conference 2016 66
Decrease of net debt thanks to good cash flow generation
Net Cash in CHF million
-844
-681
489
-253
-166 94 -1
-1 000
-500
0
2014 Operating Cash Flow Investment Activities Dividend Capital Increase &Treasury Stock
CTA / Other 2015
BALANCE SHEET
08.03.2016Financial Analysts' Conference 2016 67
3 002
3 490
2000
2500
3000
3500
2014 2015
53.8% 55.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2014 2015
-844
-681
-850
-650
-450
-250
-50
2014 2015
Strong equity after acquisition impact
Equity in CHF million Equity B/S Ratio in % Net Financial Position in CHF million
OUTLOOK
OUTLOOK ENVIRONMENT 2016
08.03.2016Financial Analysts' Conference 2016 69
● Ongoing high prices for cocoa beans and cocoabutter
● Worldwide weak growth in the chocolate market● Continued weak economic environment
● however,● Signs of improvement in consumer sentiment in
parts of Europe and North America● Premium chocolate market continues positive trend
● Innovation and intensified marketing communication to continuous strengthening of Lindt brand in all markets
● Continuous focus on the worldwide implementation of own sales channel (Global Retail)
● Full integration of Russell Stover in the Lindt Group
● Realization of cost synergies after the integration of Russell Stover in North America
● Ongoing optimization via efficiency increases and cost management
● Confirmation of mid- to long-term targets:
− organic sales growth: 6-8% (1H2016 at lower end)
− Increase in EBIT margin +20 – 40 BP p.a.
Ongoing challenging general conditions Lindt & Sprüngli – Strengthening the brand, continuous increase of market shares, expansion into new markets
Financial Analysts‘ Meeting / March 8th, 2016
DISCLAIMER
08.03.2016Financial Analysts' Conference 2016 71
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.