Lindt : Annual Report Focus Story

We enchant the world with

Chocolate

The world celebrates with Lindt & Sprüngli

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We enchant the world with

Chocolate

Our company's

purpose

The question of a corporate purpose is currently a trending topic in business. At Lindt & Sprüngli, we have had a clear and consistent mission since day one, and this has had a lasting influence on us.

When a company is asked for its purpose, there are several re- sponses: For some stakeholders, the main focus is the company's role as an employer or taxpayer. For others, it is more important that environmental and social aspects are a priority and that a company puts sustainability above all. And then there are those who consider the most important thing is to offer high-quality products that meet consumers' expectations and form the basis for long-term economic success. The list is endless. The enormous challenge is to build a common foundation for all those requirements. At Lindt & Sprüngli we didn't have to think long about a common purpose which guides us through our daily life: "We enchant the world with chocolate." This is surely the best mission imaginable.

This mission goes back a long way at Lindt & Sprüngli. For more than 175 years, we have been manufacturing high-quality choc- olate, which never ceases to delight our consumers. First in our home area around Lake Zurich, then throughout Switzerland, and now around the globe. Around 14,000 employees are working in 31 subsidiaries and in 11 production sites to manufacture more than 2,500 chocolate products. We sell our products in more than 500 of our own shops and via distribution partners in 120 countries. Internationally Lindt is the leading brand but Ghirardelli, Caffarel, Russell Stover or Hofbauer and Küfferle, also offer magical taste experiences.

The fact that we have been so successful in so many countries for over 175 years is due first and foremost to the high quality

of our chocolate. This starts with high-quality raw materials, continues with processing in accordance with stringent Swiss production processes and high manufacturing standards, and ends with exceptional packaging designs. Only this way our premium products can enchant consumers. But there is far more to it than just quality. Our long-standing business success is due purely to our long-term approach and strategy.

Quality begins with our raw materials, which are far more than just a good base product. Our commitment to sustainability is exemplified by the Lindt & Sprüngli Farming Program. Through over twelve years of endeavors, we have ensured that 100% of our cocoa beans can be traced back to their origins and are externally verified. However, the objectives of the Farming Program go above and beyond quality assurance and a transparent supply chain. The cocoa is cultivated in an environmentally and socially responsible way, with farmers, their families and their communities being given long-term support. Find out more on www.farming-program.com.

Chocolate is a delight that brings the whole world together. This applies to the raw materials and production as much as it does to the consumers. Chocolate is a product whose impact is worldwide; very few people are not enchanted by the delicate smooth-melting taste. But every country has its own preferenc- es, and we make sure to meet the range of consumer needs around the globe. Not just because we have the necessary state-of-the-art technology, but rather because our marketing

L I N D T  &  SPRÜ NGLI

MAÎTRE CHOCOLATIER SUISSE DEPUIS 1845

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International Expansion	Quality and Innovation
From a Swiss company to a	High innovation pace - focus on
global player	local consumer needs

Sustainability	Cost Leadership and
Sustainability strategy, continuity	Efficiency
in management and brand	Cornerstone of the company's
management	strategy

team and product developers take market research findings as their basis for developing innovative chocolate creations. While the famous Lindor truffle, the elegant Excellence and the classic Gold Bunny are internationally renowned bestsellers, we are by no means relying solely on these products. Thanks to constant innovation, Lindt & Sprüngli can offer the perfect chocolate treat for every occasion. Thus, we can create a magical atmosphere for festivities all over the world, from Christmas and Eas- ter to Thanksgiving Day.

At Lindt & Sprüngli, innovation is clearly visible in many business processes, in marketing and distribution as well as in production processes, and ideally goes hand in hand with our commitment to sustainability. One product of which we are particularly proud is our latest innovation, Excellence Cocoa Pure: This chocolate is made from 100% cocoa fruit, with the sugar being replaced by the sweetness of the fruit's own pulp. This allows us to make sustainable use of previously unutilized resources and offers our consumers pure cocoa pleasure.

The large number of chocolate creations requires many magi- cians: our employees. Of course, the term "magicians" is appropriate only in the context of our purpose. In fact, the major contribution made by our employees is not magic, but the passion for their work. We can only fulfill our mission by adhering to the clear commitment that only premium products leave our premises. The employees of Lindt & Sprüngli do not compromise when it comes to offering the consumer the perfect chocolate

experience. This applies to everything, from the fine chocolate to the packaging and marketing. After all, what would the Lin- dor truffle be without the sensorial rustling noise when you pull on both ends? Exactly!

Creating the perfect all-round experience that consumers quite rightly expect from a Lindt & Sprüngli product requires the coordinated effort of international teams from all areas of the com- pany. We encourage and reward such team spirit, as well as personal initiative and entrepreneurial thinking by giving our employees a degree of leeway. We show appreciation for the success we achieve together with them and our business part- ners. Because we know that a chocolate experience that delights consumers is the product of a worldwide collaboration between a large number of people. This long journey begins with our producers and continues through all our divisions, ­entering the home stretch in retail, but is not over until our consumers open the elegant packaging and are enchanted by the fine taste of chocolate.

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Our values

Community is built based on values that connect people. For us as a company, it is crucial that we share the same moral values with our employees and our partners. For Lindt & Sprüngli, there are five key values at the heart of what we do.

Creative teamwork leads to exceptional results

In the service of our consumers, we all strive together to achieve excellence, because in the end there is only one thing that counts: We want to delight with our premium chocolate. Our employees are given lots of scope to come up with innovative processes and creative ideas in order to produce amazing new

chocolate creations. We have faith in their entrepreneurial approach and can rely on them to take responsibility for their actions in cooperation with their colleagues as well as with our suppliers and customers.

Excellence

We have a passion for what we do, strive for excellence and never compromise on quality.

Innovation

We are forward-thinking, constantly looking for new and better ways to deliver success.

Entrepreneurship

Responsibility

Cooperation

We are empowered and assume ownership of our actions and results.

We act with integrity and treat everyone with respect. We care for the environment and a sustainable tomorrow.

We support each other across disciplines, business segments, and geographies.

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We are all

Lindt & Sprüngli