Welcome to the
Nine-Month Sales
Conference
Nine-Month Sales
Conference
Paul Bulcke
Nestlé CEO
2010
3
17 October, 2013
2011
Nine-Month Sales Conference
2012
2013
Nine-Month Sales
Conference
Wan Ling Martello
Chief Financial Officer
Disclaimer
5
17 October, 2013
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
fluctuations, competitive product and pricing
pressures and regulatory developments.
Nine-Month Sales Conference
Highlights
6
17 October, 2013
•
Sales up 4.0% to CHF 68.4 billion
•
Organic growth of 4.4%
•
Real Internal Growth 3.0%
•
All geographies contributing to positive growth
•
Outlook confirmed: around 5% organic growth with
an improvement in margins and underlying
earnings per share in constant currencies
Nine-Month Sales Conference
Operating
Segments
5.6
5.2
6.6
5.1
2.1
Sales
CHF bn
rounded
2.0 2.1
1.5
Zone
Europe
Zone
Americas
Zone
AOA
Nestlé
Waters
Nestlé
Nutrition
Other
11.4
20.8
14.1
5.7
7.5
9.0
% OG
17 October, 2013
4.4
4.0
0.7
7
5.6
Nine-Month Sales Conference
% RIG
6.9
6.1
5.0 5.0
Product
Categories
4.4
3.5
2.3
0.5
Powdered &
Liquid Beverages
Sales
CHF bn
rounded
15.0
0
Milk Products
& Ice Cream
Prepared Dishes
& Cooking Aids
Confectionery
PetCare
13.2
10.3
7.2
8.3
% OG
8
17 October, 2013
3.9
Nine-Month Sales Conference
% RIG
6.9
5.8
5.1
Regional
Performance
% OG
% RIG
1.9
2.0
Europe
Americas
AOA
18.7
29.6
20.0
0.9
Sales
CHF bn
rounded
Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc,
9
17 October, 2013
Nine-Month Sales Conference
Europe
Region* Sales CHF 18.7 bn
OG 0.9%
RIG 1.9%
Zone Sales CHF 11.4 bn
OG 0.7%
RIG 2.1%
*Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc
10
17 October, 2013
Nine-Month Sales Conference
Americas
Region* Sales CHF 29.6 bn
OG 5.1%
RIG 2.0%
Zone Sales CHF 20.8 bn
OG 5.2%
RIG 1.5%
*Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc
11
17 October, 2013
Nine-Month Sales Conference
Asia, Oceania & Africa
Region* Sales CHF 20.0 bn
OG 6.9%
RIG 5.8%
Zone Sales CHF 14.1 bn
OG 5.6%
RIG 5.1%
*Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc
12
17 October, 2013
Nine-Month Sales Conference
Summary
13
17 October, 2013
•
Broad based performance – all regions and
categories contributing
•
Growth momentum continues
•
Outlook confirmed: around 5% organic growth with
an improvement in margins and underlying
earnings per share in constant currencies
Nine-Month Sales Conference
Enhancing our
competitiveness
to drive performance
Paul Bulcke
Nestlé CEO
EBIT (in % NPS)
TOP margin (in % NNS)
14.0
Delivering
over time
12.5
12.6
12.9
Nestlé Model
5.1
2003
15
17 October, 2013
Nine-Month Sales Conference
8.3
7.5
6.2
6.2
4.5
2004
15.0
15.2
14.4
13.5
7.4
6.2
14.3
14.6
14.8
5.9
4.1
2005
2006
2007
2008
2009
2010
2011
2012
10 year
Average
OG
+ 6.1%
Competitive
advantages
People
Our Roadmap
Driving
performance
Nutrition,
Health and
Wellness
Growth
drivers
Emerging
Consumers
Worldwide
presence
Research and
development
Out-of-home
Our ambition
is to be the leader in Nutrition,
Health and Wellness,
and the reference
for financial performance,
trusted by all stakeholders
Consumer
engagement
Portfolio
Presence
Innovation
Operational
efficiency
16
17 October, 2013
Nine-Month Sales Conference
Premiumisation
Operational
pillars
New Reality
Many
challenges
17
17 October, 2013
Nine-Month Sales Conference
New Reality
Many
opportunities
18
17 October, 2013
Nine-Month Sales Conference
Our priorities
Make choices
Grasp
opportunities
Value what
consumers value
Engage with
the community
and stakeholders
Embrace digital
Have
the best people
Expand
the boundaries of nutrition
19
17 October, 2013
Nine-Month Sales Conference
Strengthening portfolio
Focus on…
Allocating resources
Mastering complexity
20
17 October, 2013
Nine-Month Sales Conference
Strengthening portfolio
Focus on…
Allocating resources
Mastering complexity
21
17 October, 2013
Nine-Month Sales Conference
R&D and
Innovation
60/40 +
22
17 October, 2013
Nine-Month Sales Conference
Portfolio
management
Acquisitions
M&A
2001
2000
2007
2003
2004
2010
2009
South Africa
Divestitures
23
17 October, 2013
Nine-Month Sales Conference
2011
2010
2012
2012
Portfolio management
Scope
Strengthening
portfolio
24
17 October, 2013
1800 cells
• Products
• Brands
• Categories
• Markets
Nine-Month Sales Conference
Criteria
• Strategic fit
• Profitable
•
growth
Resource
intensity
Decisions
• Invest ?
• Fix ?
• Divest ?
Drive
returns
Strengthening portfolio
Focus on…
Allocating resources
Mastering complexity
25
17 October, 2013
Nine-Month Sales Conference
Investing for
growth
Capabilities
26
17 October, 2013
Nine-Month Sales Conference
Investing for
growth
Capacities
27
17 October, 2013
Nine-Month Sales Conference
A strong
global
presence
Factories
28
17 October, 2013
Nine-Month Sales Conference
R&D
Factory: new/expansion
New R&D
Illustrative
Capital
Expenditure
5%
Return
29
17 October, 2013
Nine-Month Sales Conference
Strengthening portfolio
Focus on…
Allocating resources
Mastering complexity
30
17 October, 2013
Nine-Month Sales Conference
Category
Powdered and Liquid Beverages
Geography
Europe
Americas
Water
Milk products and Ice cream
Nutrition and HealthCare
Mastering
complexity
Prepared dishes and Cooking aids
Confectionery
PetCare
Nestlé Waters
Globally Managed
Businesses
Nestlé Nutrition
Nestlé Professional
Nespresso
Nestlé Health Science (NHS)
Separately governed
operations
Joint Ventures F&B: CPW (Cereals), BPW (Beverages)
Joint Ventures Pharma: Galderma, Inneov
GLOBE, NCE, NBS,…
31
17 October, 2013
Nine-Month Sales Conference
Asia
Oceania
Africa
Mastering
complexity
From size... to scale… to competitive advantage
32
17 October, 2013
Nine-Month Sales Conference
Strengthening portfolio
Enhancing our
competitiveness
to drive
performance
Allocating resources
Mastering complexity
33
17 October, 2013
Nine-Month Sales Conference
Enhancing our competitiveness to drive performance
34
17 October, 2013
Nine-Month Sales Conference
Appendix
35
17 October, 2013
Nine-Month Sales Conference
CHF per
Weighted
Average
Exchange Rates
* % rounded
36
17 October, 2013
Nine-Month Sales Conference
9m 2012
9m 2013
(%)*
US Dollar (1)
0.94
0.94
-0.5
Euro (1)
1.20
1.23
+2.3
£ Sterling (1)
1.48
1.45
-2.6
Real (100)
49.06
44.29
-9.7
Mex. Peso (100)
7.11
7.38
+3.8
Yen (100)
1.18
0.97
-18.1
(%)
FX Impact on All
Businesses
37
17 October, 2013
1Q 2013
HY 2013
9m 2013
Zone Americas
-2.6
-2.4
-4.4
Zone Europe
+1.2
+1.3
+0.9
Zone AOA
-1.0
-1.4
-3.7
Nestlé Nutrition
-1.9
-1.8
-3.9
Nestlé Waters
+0.9
+0.8
-0.4
Other
+0.2
+0.3
-1.0
Total
-0.9
-0.9
-2.5
Nine-Month Sales Conference