Annual Report 2021

Notes to the Financial Statements

1. Introduction

The financial statements of Chocoladefabriken Lindt & Sprüngli AG, with registered office in Kilchberg, were prepared in accordance with the Swiss accounting legislation of the Swiss Code of Obligations (CO).

Chocoladefabriken Lindt & Sprüngli AG is presenting consolidated financial statements according to an internationally accepted reporting standard. Therefore, these financial statements and notes do not include additional disclosures, cash flow statement, and management report, according to Art. 961d, paragraph 1 CO.

2. Accounting Policies

Non-current assets

Non-current assets are valued at historical cost less impairment. Intangible assets mainly consist of the intellectual property rights of Russell Stover Chocolates, LLC, acquired in 2014 and amortized over a period of 20 years starting in 2017.

Treasury shares

Treasury shares are recognized at acquisition cost and are presented as a deduction from shareholder’s equity. Upon sale of treasury shares, the realized gain or loss is recognized through the income statement as finacial income or financial expense.

Financial liabilities

Financial liabilities are recognized at nominal value. Agios and disagios as well as bond issuance costs are recognized in the income statement.

Dividends and other income from subsidiaries

“Dividend income” resulting from financial investments is recorded upon approval of the dividend distribution at the corresponding subsidiary. “Other income from subsidiaries” mainly consist of license fees, which are recognized at the time the services are provided.

Foreign currency translation

The foreign exchange rates are listed in the notes to the consolidated financial statements. In deviation to the table, transactions in the income statement are booked at the respective month-end rate.

3. Liabilities arising from Guarantees and Pledges in favor of Third Parties

Contingent liabilities as at December 31, 2021, amounted to CHF 342.2 million (CHF 315.3 million in prior year). This figure comprises guarantees against banks related to lending to subsidiaries.

The companies, Chocoladefabriken Lindt & Sprüngli AG, Lindt & Sprüngli (Schweiz) AG, Lindt & Sprüngli Financière AG, Lindt & Sprüngli (International) AG, and Indestro AG together form a Swiss-VAT group. According to Art. 15, paragraph 1, item c of the Swiss Value Added Tax Law and Art. 22, paragraphs 1 and 2 of the Swiss Value Added Tax Ordinance, all members participating in VAT-group taxation are jointly liable for all taxes owed by the VAT group (including interest), which arose during their period of membership.

4. Investments

The investments in subsidiaries are listed in the notes to the consolidated financial statements.

5. Intangible assets

In 2020, an Advance Pricing Agreement was concluded with the United States of America. For this reason, an additional payment of CHF 127.8 million had to be made for the intellectual property rights acquired in 2014 in connection with the acquisition of Russell Stover LLC. The acquisition costs were thus increased by the same amount. As in the previous year, the impairment test did not reveal any impairment need as at December 31, 2021. Therefore, the intangible assets are considered to be recoverable.

6. Bonds

The current bonds consist of the following tranches:

 

 

 

 

 

 

 

 

2021

 

2020

CHF million

 

Interest rate

 

Interest maturity

 

Term

 

Notional amount

 

Notional amount

Straight bond

 

1.00%

 

October 8

 

2014–2024

 

250.0

 

250.0

Straight bond

 

0.30%

 

October 6

 

2017–2027

 

250.0

 

250.0

Straight bond

 

0.01%

 

October 6

 

2020–2028

 

250.0

 

250.0

Straight bond

 

0.25%

 

October 6

 

2020–2032

 

250.0

 

250.0

Total

 

 

 

 

 

 

 

1,000.0

 

1,000.0

7. Purchase and Sale of Registered Shares and Participation Certificates

 

 

2021

 

2020

 

 

Registered shares

 

Participation certificates

 

Registered shares

 

Participation certificates

Inventory as at January 1

 

377

 

 

1,475

 

46,615

Additions

 

 

 

215

 

2,630

Retirements

 

– 163

 

 

– 877

 

– 2,630

Share buy-back program

 

453

 

37,570

 

 

Capital decrease (destruction)

 

 

 

– 436

 

– 46,615

Inventory as at December 31

 

667

 

37,570

 

377

 

 

 

 

 

 

 

 

 

 

Average cost of additions (CHF)

 

 

 

73,663

 

7,238

Average sales price of retirements (CHF)

 

89,054

 

 

82,489

 

7,723

Average cost of share buy-back program (CHF)

 

106,203

 

10,560

 

 

Average cost of capital decrease (CHF)

 

 

 

76,180

 

6,520

8. Reserves

 

 

Reserves from capital contribution

 

Special reserves

CHF thousand

 

Requested

 

Approved

 

Not approved1

 

Share buy-back program2

 

Total

 

Total

Balance as at January 1, 2020

 

 

81,051

 

15,841

 

 

96,892

 

1,060,378

Share buy-back program

 

 

 

 

 

 

– 336,632

Proposed dividend distribution

 

 

– 80,273

 

 

 

– 80,273

 

Undistributed dividends on own registered shares and participation certificates

 

 

1,964

 

 

 

1,964

 

Options exercised from January 1 to May 4, 2020

 

 

– 435

 

 

 

– 435

 

Additions during the year

 

87,730

 

 

1,040

 

 

88,770

 

– 1,040

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2020

 

87,730

 

2,307

 

16,881

 

 

106,918

 

722,706

 

 

 

 

 

 

 

 

 

 

 

 

 

FTA approval March 24,2021

 

– 87,730

 

87,710

 

20

 

 

 

– 20

Proposed dividend distribution

 

 

– 88,548

 

 

 

– 88,548

 

Undistributed dividends on own registered shares and participation certificates

 

 

134

 

 

 

134

 

Options exercised from January 1 to May 5, 2021

 

 

 

– 182

 

 

 

– 182

 

Reserve from retained earnings

 

 

 

 

 

 

20,000

Additions during the year

 

 

 

1,463

 

118 9723

 

120,435

 

– 1,463

Reclassification2

 

 

– 1,421

 

 

1,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as at December 31, 2021

 

 

 

18,364

 

120,393

 

138,757

 

741,223

1

The Swiss federal tax administration (FTA) has not yet approved the capital transaction costs of TCHF 18,364 as reserves from capital contribution. This practice may be changed in the future.

2

Reserves from capital contributions must be used for the share buy-back program currently in place.

3

Requested.

9. Mandatory Disclosure of Interest Positions pursuant to Art. 663c CO

As of December 31, 2021, Chocoladefabriken Lindt & Sprüngli AG disclosed the following shareholders known to the Company (in accordance with Art. 663c CO and the articles of association), which own voting shares of more than 4%: BlackRock Inc. held 4.46% of the Company’s shares (4.46% in prior year). Fonds für Pensionsergänzungen of Chocoladefabriken Lindt & Sprüngli AG, Finanzierungsstiftung für die Vorsorgeeinrichtungen der Chocoladefabriken Lindt & Sprüngli AG, Lindt Cocoa Foundation and Lindt Chocolate Competence Foundation held as a group 20.50% of the voting rights of the Company (20.50% in prior year).

The participation of the Board of Directors and Group Management as at December 31, according to Art. 663c CO is as follows:

 

 

 

 

Number of registered shares (RS)

 

Number of participation certificates (PC)

 

Number of options

 

 

 

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

E. Tanner

 

Executive Chairman

 

3,067

 

3,067

 

8,327

 

10,191

 

2,500

 

2,500

A. Bulgheroni

 

Member of the Board

 

1,000

 

1,000

 

295

 

295

 

 

Dkfm E. Gürtler

 

Member of the Board

 

1

 

1

 

50

 

50

 

 

Dr R. K. Sprüngli

 

Member of the Board

 

1,092

 

1,092

 

 

 

 

Dr T. Rinderknecht

 

Member of the Board

 

 

 

 

 

 

S. Denz

 

Member of the Board

 

11

 

11

 

 

 

 

Dr D. Weisskopf

 

Group Management

 

5

 

7

 

3,000

 

2,850

 

8,350

 

7,225

Dr J. Picenoni

 

Group Management

 

1

 

1

 

 

 

2,350

 

1,600

R. Fallegger

 

Group Management

 

25

 

25

 

850

 

 

3,950

 

4,326

A. Germiquet

 

Group Management

 

7

 

7

 

500

 

400

 

4,222

 

3,646

Dr A. Lechner

 

Group Management

 

7

 

7

 

56

 

56

 

4,700

 

5,000

M. Hug

 

Group Management

 

6

 

1

 

 

 

3,850

 

3,200

G. Steiner

 

Group Management

 

2

 

2

 

 

 

3,730

 

3,410

Total

 

 

 

5,224

 

5,221

 

13,078

 

13,842

 

33,652

 

30,907

All other disclosures relating to the remuneration of the Board of Directors, Group Management, and Extended Group Management are provided in the Compensation Report.

10. Number of Employees

Chocoladefabriken Lindt & Sprüngli AG has no employees (0 in prior year).