Annual Report
2017

Annual Report

Key Figures

For the first time since the company was founded, Lindt & Sprüngli achieved Group sales of more than 4 billion Swiss francs.

Global Growth

Lindt & Sprüngli is continuing its drive into new chocolate markets.

Global Retail

The success story of Lindt's own shops continues, with sales reaching half a billion Swiss francs for the first time.

Foreword

2017 was another successful financial year for Lindt & Sprüngli, with many highlights. Group sales topped four billion Swiss francs for the first time. Lindt opened over 50 of its own premium shops, which performed extremely well and generated sales of half a billion Swiss francs. The company once again consolidated its position as a leading provider of premium chocolate products and expanded its market shares worldwide.

Dr Dieter Weisskopf
CEO Lindt & Sprüngli Group

Letter to Shareholders

Read Letter to Shareholders

Letter to Shareholders

Letter to Shareholders

In 2017, Lindt & Sprüngli achieved Group sales of more than 4 billion Swiss francs for the first time since the company was founded almost 175 years ago, an increase of +4.8% in Swiss francs. During the past financial year we continued to grow at a faster pace than the overall chocolate market and significantly expanded our market share.

Read Letter to Shareholders

Ernst Tanner
Executive Chairman
of the Board of
Directors

Dr Dieter Weisskopf CEO Lindt & Sprüngli Group

Global Growth

Since its foundation almost 175 years ago, Lindt & Sprüngli has continued to successfully break into new markets, coping with many difficult challenges along the way. The decision to make the global expansion of the chocolate business the focus of our corporate strategy has allowed Lindt, the Swiss producer of premium chocolate, to position itself successfully in the world's 20 biggest chocolate markets.

Our special focus

Global Growth

The 5 Lindt & Sprüngli markets of this year's special focus:
Russia, Japan, Brazil, South Africa and China

map-01-01

Russia

For the rest of the world, caviar, blinis and vodka are the traditional icons of Russia's food and drink culture. But chocolate also features highly. Lindt & Sprüngli has been active in the Russian market since 2012 and has built a strong position as a Swiss premium brand in what is the world's second largest chocolate market. The effective brand positioning to date, as well as the success of the two Lindt shops just opened in Moscow, show that we are on the right track, and we intend to consistently follow this line.

Japan

Japan's unique culture makes it a particularly fascinating and promising chocolate market for Lindt & Sprüngli. We first entered this market back in 2010 by opening two Lindt shops in Tokyo's prime shopping locations. Since then, Lindt & Sprüngli has opened new chocolate cafés and shops which are vary popular with the quality-conscious Japanese. We now have a presence in 30 exclusive locations across the whole of the country.

Brazil

Brazil is a traditional chocolate market where we have been established since 2014 through our own subsidiary as part of a joint venture with CRM Group. Consumers can indulge in two of the country's great passions - chocolate and coffee - in selected Lindt boutiques and benefit from the friendly service of our chocolate advisors. We plan to expand the network of our own shops to 50 by 2020 so as to consistently raise Lindt's profile as a premium brand in the world's seventh biggest chocolate market.

South Africa

Lindt & Sprüngli has had a presence in the diverse rainbow nation of South Africa since 2011. Its dynamic economy continues to grow and prosper, and with it the country's burgeoning middle classes, whose appetite for premium chocolate is rapidly growing. Consumers already have 12 Lindt Shops where they can be inspired by the great assortment and receive expert advice in an exclusive ambience. The ultimate highlight, however, is a chocolate course offered by Lindt's Master Chocolatiers in the 2 Chocolate Studios. The new appetite for premium chocolate makes the South African market very attractive for Lindt & Sprüngli.

China

Lindt & Sprüngli has been established in the Land of the Dragon since 2012. China's massive expansion and very diverse culture create exciting market opportunities for Lindt & Sprüngli. The company is responding to the growing number of China's more quality-conscious consumers by further extending its distribution network in regions outside major cities, continuing to expand the booming online business and offering innovative chocolate creations developed especially for the Chinese market.

Highlights &
Key Figures

Highlights & Key Figures

Highlights & Kennzahlen

Highlights & Key Figures

Group sales of more than CHF 4 billion, with the Global Retail network alone contributing half a billion of this, are just some of the many highlights of the 2017 fiscal year.

Highlights & Key Figures

Sales Lindt & Sprüngli Group 2017

in million CHF

Group Sales
CHF .1 billion
+4.8% compared to previous year
Operating Profit (EBIT)
CHF .4 million
+5.8% compared to previous year
Net Income
CHF .5 million
+7.8% compared to previous year
Investment Volume
CHF .2 million
Employees worldwide

Chocolate Competence Center

The construction of the Chocolate Competence Center is an important milestone in Lindt & Sprüngli's positioning as the world's biggest manufacturer of premium chocolate products. This major project is being financed and realized by the charitable Lindt Chocolate Competence Foundation, founded in 2013. The new center is due to open in 2020 at Lindt & Sprüngli's main site in Kilchberg.

Chocolate Competence Center

From project planning until opening 2020

2013
Development of visionary idea of a Chocolate Competence Center
2014
Architectural competition
2015
Construction project submitted to the Kilchberg/ZH municipality
2016
Approval of construction project
2017
Digging the building pit and laying the foundation stone to mark start of building work
2018
Building construction is completed
2019
Interior construction
2020
Opening of Chocolate Competence Center
2013
Development of visionary idea of a Chocolate Competence Center
2015
Construction project submitted to the Kilchberg/ZH municipality
2017
Digging the building pit and laying the foundation stone to mark start of building work
2019
Interior construction
2014
Architectural competition
2016
Approval of construction project
2018
Building construction is completed
2020
Opening of Chocolate Competence Center

Markets

All Markets

Markets

Markets

Despite challenging conditions in 2017, Lindt & Sprüngli achieved sales of CHF 4 billion for the first time. The company increased its group sales by +4.8% in Swiss francs and expanded its strong position in almost all of its core markets.

All Markets

Sales Lindt & Sprüngli Group 2017

EUROPE

In the largely saturated European chocolate market, Lindt & Sprüngli reported an excellent result, with total organic growth of +6.2% and sales of CHF 1.93 billion. Performance was particularly strong in the mature markets of Germany, the UK, Italy, Austria and Spain. The newer markets, including the Nordics, Russia, Poland and the Czech Republic, achieved double-digit growth rates.

Europe
All Markets

Sales Lindt & Sprüngli Group 2017

NAFTA

Sales in the NAFTA segment dipped slightly by -1.6% to CHF 1.63 billion, mainly due to the strategic alignment of the Russell Stover portfolio and changes in the U.S. retail landscape.

NAFTA
All Markets

Sales Lindt & Sprüngli Group 2017

Rest of the World

In 2017, Lindt & Sprüngli benefited from the strategy of geographic expansion pursued over previous years. The Rest of the World segment once again made significant gains, with organic growth of +12.4% pushing sales up to CHF 525 million and providing an increasingly important contribution to consolidated sales. National markets belonging to this segment enjoyed dynamic growth, with Japan and Brazil playing a particulary important role.

Rest of the World
All Markets

Sales Lindt & Sprüngli Group 2017

Global Retail

Lindt's global network of own shops continued its success story: thanks to strong double-digit growth, Global Retail reached a major milestone in 2017, with sales climbing to an impressive half a billion Swiss francs.

Global Retail

Our Brands

Global Brands
76% of Sales
Regional Brands
22% of Sales
Local Brands
2% of Sales

Financial Report

Full Financial Report

Financial Report

Financial Report of the
Lindt & Sprüngli Group

In the fiscal year 2017, Lindt & Sprüngli achieved group sales of CHF 4 billion, equivalent to an increase of +4.8% in Swiss francs. The strongest market segments were Europe, with an increase of +6.2%, and the Rest of the World, with sales growth of +12.4%. Lindt & Sprüngli was able to expand its market share in virtually all regions, while the sales in its own retail network reached an impressive half a billion Swiss francs.

Full Financial Report

Group Sales

in million CHF

Operating Profit (EBIT)

in million CHF

Corporate Governance

One of our top priorities is to create transparency and thus ensure confidence in our company. Through its commitment to good corporate governance, Lindt & Sprüngli creates sustainable value for its shareholders, consumers, employees and other stakeholders.

Corporate Governance

Compensation Report

Lindt & Sprüngli's success as a company relies on the commitment of its dedicated and professional staff. In a highly competitive labor market, we strive to attract and promote the best talents, and ensure they stay with us over the long term. In the interests of our shareholders, we take a transparent and sustainable approach to compensation. This Compensation Report describes the basis and principles of remuneration for the most senior officers of the Lindt & Sprüngli Group.

Compensation Report

Start Foreword Letter to Shareholders Global Growth Highlights & Key Figures Chocolate Competence Genter Markets Europe NAFTA Rest of the World Global Retail Financial Report Corporate Governance Compensation Report Global Presence