Financial Analysts’ Presentation March 14,...

1 FINANCIAL ANALYSTS‘ PRESENTATION 2006

LINDT & SPRÜNGLI

Annual Results 2005Financial Analysts’ PresentationMarch 14, 2006


LINDT & SPRÜNGLILINDT & SPRÜNGLIContents

• Annual Results – Highlights 2005

• Balance Sheet – Highlights 2005

• Share Development & Valuation

• Material Costs

• Outlook 2006

• Questions & Answers


LINDT & SPRÜNGLI

Annual ResultsHighlights 2005


LINDT & SPRÜNGLILINDT & SPRÜNGLIResults 2005 – Highlights P&L

NET TRADE SALES

11.2%

15.2%

15.9%

15.2%

10.2%

11.4%

12.6%

0.0% 4.0% 8.0% 12.0% 16.0%

257.2

788.0

172.7

248.6

325.1

2'246.9

CHF Mio Increase in % vs. 2005

NTS* ORGANIC

EBITDA

EBIT

NET INCOME

EPS REG. (CHF)

CASH FLOW

* NTS = Net Trade Sales


LINDT & SPRÜNGLILINDT & SPRÜNGLIResults 2005 – Highlights B/S

Equity B/S ratioIn %

971.1

793.7

700725750775800825850875900925950975

1000

2004 2005

EquityCHF Mio

50.9%

46.3%

35.0%

37.5%

40.0%

42.5%

45.0%

47.5%

50.0%

52.5%

55.0%

2004 2005

22.2

-1.2

-10

0

10

20

30

2004 2005

Net Debt/Cash Y/ECHF Mio


1'590.81'680.5

1'800.51'994.6

2'246.9

0

250

500

750

1000

1250

1500

1750

2000

2250

2001 2002 2003 2004 2005

LINDT & SPRÜNGLILINDT & SPRÜNGLIConsolidated NTS – Organic Growth

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

+ 11.4%+ 5.7% + 7.6% + 7.8% + 12.5%


1'590.81'680.5

1'800.51'994.6

2'246.9

0

250

500

750

1000

1250

1500

1750

2000

2250

2001 2002 2003 2004 2005

LINDT & SPRÜNGLILINDT & SPRÜNGLIConsolidated NTS – Growth in CHF

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

+ 6.7% + 5.6% + 12.0% + 12.6%+ 3.5%


0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

11,0%

12,0%

13,0%

Organic Growth Split Currency CHF as published

LINDT & SPRÜNGLILINDT & SPRÜNGLIDetails of Sales Performance 2005

Split NTS peformance in its components

11.4%

Mix 1.8%

+ 1.2%

12.6%Volume8.1%

Price1.5%


LINDT & SPRÜNGLINet Trade Sales by Country 2005

Sales 2005: Split by Country

18.4%

7.4%4.8%

11.5% 6.1%

14.7%

18.0%

19.1%

Switzerland

Germany

France

Italy

UK

Rest of Europe

USA

Others

Total NTS: CHF 2’246.9 Mio


LINDT & SPRÜNGLINet Trade Sales by Country 2005

Switzerland

Germany

France

Italy

UK

Rest of Europe

USA

Others

+1.3%

+0.7%

+0.3%+0.4%

-1.1%-0.8%

-0.3%-0.5%

Sales 2005: Change of weight 2005 vs. 2004

Total NTS: CHF 2’246.9 Mio


LINDT & SPRÜNGLI

Sales Development by Market2005 vs. 2004 (local currencies)

4.1%

12.7%

26.5%

3.3%

6.8%

2.9%

19.8%

12.1%%10.0%

11.4%

21.9%

21.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Total

GroupD F CH

DomAUT U.K. POL E I AUS USA CAN


525.6

602.5686.5

471.7480.9

0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIMaterial Costs

absolute in CHF millions and in % of NTS

30.2% 28.1% 29.2% 30.2% 30.6%


6'068 6'0296'652

6'2936'011

3000

3500

4000

4500

5000

5500

6000

6500

7000

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIHeadcount and NTS per Employee

338262 279 300 317

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


390.6 393.9

493.1452.8

413.7

0

100

200

300

400

500

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIPersonnel Expenses

24.6% 23.4% 23.0% 21.9%22.7%



516.3575.4

769.0678.1617.2

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIOperating/Marketing Expenses


32.5% 34.2% 34.3% 34.0% 34.2%


230.8242.4

265.2295.1

325.1

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIEBITDA

14.5% 14.4% 14.8%14.7% 14.5%



72.4 71.6 76.579.3 76.5

0

10

20

30

40

50

60

70

80

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIDepreciation


4.5% 4.2% 4.0%4.2% 3.4%


158.4170.8

188.7

248.6

215.8

0255075

100125150175200225250

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIOperating Profit (EBIT)


10.0% 10.2% 10.5% 10.8% 11.1%


LINDT & SPRÜNGLINet Financial Expenses

absolute in CHF millions

0

2

4

6

8

10

12

14

16

18

2001 2002 2003 2004 2005

- 15.3 - 15.4

- 6.3

- 3.4- 2.9


139.8152.5

179.6

212.4245.7

0255075

100125150175200225250275

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIIncome before Taxes

8.8% 9.1% 10.0% 10.6% 10.9%



LINDT & SPRÜNGLICorporate Tax Rate

29.7%29.9%31.8%33.2%

34.5%

10.0%

20.0%

30.0%

40.0%

2001 2002 2003 2004 2005


172.7

149.0

122.4101.9

91.5

0

20

40

60

80

100

120

140

160

180

2001 2002 2003 2004 2005

LINDT & SPRÜNGLINet Income

5.8% 6.1% 6.8% 7.5% 7.7%



257.2231.2

206.2178.3

175.2

0255075

100125150175200225250275

2001 2002 2003 2004 2005

LINDT & SPRÜNGLICash Flow & Investments in Fixed Assets

Cash flow and Investments in fixed assets in CHF millions

72.2 77.6 75.1 99.2 128.9


LINDT & SPRÜNGLINet Free Cash Flow 2005

128.9

68.0

39.9

20.4

Investments

Working Capital Change

Dividends / Directors' Fees

Net Free Cash Generation

Cash Flow CHF 257.2 millions

Year End Working Capital


LINDT & SPRÜNGLINet Free Cash Flow 2005

52.0

39.9

36.4

128.9

Investments

Average Working Capital Change

Dividends / Directors' Fees

Net Free Cash Generation

Cash Flow CHF 257.2 millions

Yearly Average Working Capital


LINDT & SPRÜNGLI

Balance SheetHighlights 2005


LINDT & SPRÜNGLIConsolidated Balance Sheet 2005 vs. 2004

Assets (CHF millions)

Liabilities (CHF millions)

204.5 242.5

735.9 629.0

314.8265.1

652.9578

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

Cash & marketable sec. Accounts receivable

Inventory Fixed assets

209.3

383 397.7

312.7 313.9

241.3

793.7971.1

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

Accounts payable Short-term liabilities

Long-term liabilities Equity

2005 2004 2005 2004


50.9%46.3%

45.8%35.9% 40.8%

0%5%

10%15%20%25%30%35%40%45%50%55%

2001 2002 2003 2004 2005

LINDT & SPRÜNGLIEquity in Percentage of Balance Sheet Total

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

17.7% 17.8% 18.3% 19.6% 19.6%


-241.5

-140.2

-59.2-1.2

22.2

-250

-200

-150

-100

-50

0

50

LINDT & SPRÜNGLINet Debt- / Cash Position

Absolute in CHF millions

2001 2002 2003 2004 2005


LINDT & SPRÜNGLINet cash position 05 vs 04

-5

0

5

10

15

20

25

30

35

Net Cash31.12.04

Net FreeCash Flow

2005

CapitalIncrease

Divestments CurrencyEffect

Net Changeown shares

Net Cash31.12.05

-1.2

20.4

13.4

1.3

-8.3

-3.4

22.2

Net cash increased by CHF 23.4 MIO


LINDT & SPRÜNGLIEffect of seasonality on Net Cash

Monthly Net Financial Position 2005 (CHF millions)

-150

-100

-50

0

50

100

150

200

Jan Feb. March Apr. May June July Aug. Sept. Oct. Nov. Dec.


LINDT & SPRÜNGLI

Share Development& Valuation


LINDT & SPRÜNGLI

Performance 1996 – 2005 :Reg. Share vs. EPS Development

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

22.000

96 97 98 99 00 01 02 03 04 05

200

300

400

500

600

700

800

900

Reg. EPS

Reg

. Sh

are

(CH

F)

EP

S (

CH

F)

Registered Share price CAGR 96 – 05 year end: > 18 %



LINDT & SPRÜNGLI

Performance 1996 – 2005 :PC Price vs. EPS Development

400600

8001'0001'2001'400

1'6001'8002'000

2'2002'400

96 97 98 99 00 01 02 03 04 05

20

30

40

50

60

70

80

90

PC Price EPS

PC

Pri

ce (

CH

F)

EP

S (

CH

F)

PC price CAGR 96 – 05 year end: > 19 %



LINDT & SPRÜNGLIP/E multiple development 96 – Current

22.224.3 24.3

27.6

22.3

18.4 19.7

24.0

27.8

21.3

0

5

10

15

20

25

30

35

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

P/E valuation (registered)

Year end figures actual


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

-2.5%

2.5%

7.5%

12.5%

Spread 10.0% 10.6% 0.1% 3.8% 3.8% 1.1% -2.3% 7.3% 2.9% -1.9% 3.5%

96 97 98 99 00 01 02 03 04 05 AVG

Spread calculated on year end figures


LINDT & SPRÜNGLIOther Key Figures

2001 2002 2003 2004 2005

Dividend (CHF) 90.-- 110.-- 140.-- 180.-- 225*

Dividend Yield (year end price)

1.0% 1.3% 1.3% 1.1% 1.0%

Pay Out Ratio 21.4% 23.5% 24.9% 26.0% 28.7%

* Proposed by Board of Directors

Registered Share


LINDT & SPRÜNGLI

Material Costs


LINDT & SPRÜNGLICocoa Bean Production –by Main Countries (2005/06E)

1'195'000

630'000

470'000

165'000

165'000

621'000Ivory Coast

Ghana

Indonesia

Nigeria

Brazil

All others

in tons

36.9%

19.4%

14.5%

5.0%5.0%

19.2%

Total: 3,246,000

Source: MAN (Cocoa) Ltd, London


LINDT & SPRÜNGLICocoa Bean Crop / Grindings Balance

42.4%

15.5%

5.5%

5.5%

16.2%

Cocoa Beans '000' tons324633093520

340633213230

-186-38262

-200200600

10001400180022002600300034003800

03/04 04/05 05/06

Crop Grindings Surpl./Deficit


LINDT & SPRÜNGLICocoa Price Development –2nd position LIFFE (GBP/Ton) 1992-2006

05

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

92 93 94 95 96 97 98 99 20 1 2 3 4 5 6 7

931

1186 (9/97)

547 (12/99)

1649 (10/02)

509 (6/92)

Looking at the monthly averages of the daily ICCO pricesin USD and/or SDR per ton, the June 1992 market levelof GBP 509 (exchange rate GBP/USD 1.85) is the lowestsince the 1st quarter of 1973 (GBP/USD 2.30-2.60)


LINDT & SPRÜNGLI

Cocoa Butter Ratio + Sugar Development2002 – 2005 (CHF / 100 kg)

Rat

io m

ultip

leC

HF

/100

kg

Cocoa Butter Ratio

2.6

2.7

2.8

2.9

3

3.1

3.2

3.3

J05 F M A M J J A S O N D J06

Sugar

90

95

100

105

110

115

120

J05 F M A M J J A S O N D J06


LINDT & SPRÜNGLI

Oil Seeds Price Development2002 – 2005 (CHF / 100 kg)

CH

F/1

00 k

gC

HF

/100

kg

Hazelnuts from Turkey

0

200

400

600

800

1000

1200

1400

1600

J03 M M J S N

J04 M M J S N

J05 M M J S N

J06

Almonds

0

200

400

600

800

1000

1200

1400

J04 M M J S N

J05 M M J S N

J06


LINDT & SPRÜNGLIExpected Material Cost Trends 2006 and beyond

• Cocoa Beans: Slightly higher at levels spot: GBP 900–1000 / t

• Cocoa Butter Ratio: Stable to decreasing

• Milk Powder: Stable to slightly increasing trend

• Sugar: EU stable / World : increasing trend

• Hazelnuts: Stable at high level - decrease possible

depending on harvest outlook Sept 06

• Almonds: Stable at above average level

• Packaging Material: - Slightly increasing for paper & cardboard- Strong Increase for metals & flexibles


LINDT & SPRÜNGLI

Outlook 2006


LINDT & SPRÜNGLIOutlook 2006

• Confirmation of LONG TERM growth target:- Top Line: 5% – 7% and- Operating Profit: 8% – 10%

• Continued investments in existing and new markets

• Operational profitability increase supported by all markets

• Continued improvement of financial results and tax rate

• Confident to reach long term goals in 2006


LINDT & SPRÜNGLI

Questions & Answers


LINDT & SPRÜNGLI

Financial Analysts’ Presentation March 14,...

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