Nestle S.a. · SIX:NESN
Nestle — Nestlé Press Conference 21 October 2004
36 slides from Nestle's conference presentation, Oct 21, 2004
Slide 1: Nestlé Press Conference 21 October 2004
Nestlé Press Conference 21 October 2004 Name of chairman
Slide 2: Highlights 2004 January-September
Highlights 2004 January-September • Acceleration of real internal growth to 2.9% • Stable reported sales despite negative forex impact and divestments of 4.6% • Strong organic growth of 4.5% Name of chairman
Slide 3: Sales 1994-2003: The Four Factors
Sales 1994 - 2003: The Four Factors 10 years average 15 10 % Growth 1.7% 5 2.4% OG 3.3% 5.7% 0 -2.9% -5 OG: Organic Growth -10 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 RIG Pricing & Other Acquisitions/Divestitures FX Impact Name of chairman
Slide 4: 1994-2003: Continuous EBITA Improvement
1994 - 2003: Continuous EBITA Improvement EBITA (CHF mio) % of Sales 14'000 14.0% 12.5% 12.3% 11.8%* 12'000 12.0% 10'000 10.0% 8'000 8.0% 6'000 6.0% 4'000 4.0% 2'000 2.0% 0 0.0% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 * (accounting changes) Name of chairman
Slide 5: 2004: Challenges for the Food Sector
2004: Challenges for the Food Sector • Price increases across food raw materials • Packaging cost increases • Energy and distribution cost increases • Competitive situation in parts of Europe Name of chairman
Slide 6: 2004: Nestlé's Defensive Qualities
2004: Nestlé's Defensive Qualities • Organic growth of 4.5%, despite tough trading conditions in Europe • Market share gains in key categories • Savings initiatives enable continued investment in marketing, despite cost pressures • 2004 constant currency margins to increase, despite raw material and
Slide 7: Leadership in Product Categories
Leadership in Product Categories • Global leadership, with emerging market presence: - Infant nutrition, Milk products, Soluble coffee, Cooking aids, Powdered beverages • Leadership in the category's key, dynamic markets: - PetCare, Ice cream, Frozen food, Performance nutrition Name of chairman
Slide 8: Management Foresight
Management Foresight • Diverse international presence since 19th century • In 2004, emerging market presence delivers dynamic growth and profitability • Key acquisitions 2000 - 2003 were in the US, in fast-growing, profitable categories • Disposals have been in slower growth categories, often in Eur
Slide 9: Nestlé Press Conference 21 October 2004
Nestlé Press Conference 21 October 2004 Name of chairman
Slide 10: Acceleration in RIG to 2.9%, Organic Growth of 4.5%
Acceleration in RIG to 2.9%, Organic Growth of 4.5% RIG + 2.9 % + 4.5 % ORGANIC GROWTH Pricing + 1.6 % Acqs - divests - 1.9 % Exchange Rates - 2.7 % 9 months '04 sales of CHF 64.6 bio Name of chairman
Slide 11: Weighted Average Exchange Rates
Weighted Average Exchange Rates Jan-Dec Jan-Sep Jan-Sep Variation CHF per 2003 2003 2004 (%) Euro (1) 1.52 1.51 1.55 + 2.5 U.S. dollar (1) 1.34 1.36 1.26 - 7.2 £ sterling (1) 2.20 2.19 2.30 + 5.2 Real (100) 43.68 43.12 42.51 - 1.4 Yen (100) 1.17 1.15 1.16 + 1.1 Mex. Peso (100) 12.48 12.75 11.22 - 12
Slide 12: Sales by management responsibilities and geographic area
Sales by management responsibilities and geographic area 9 months 2004 Sales RIG OG CHF bn % % Zones Europe 21.0 - 1.4 - 0.3 Americas 20.3 + 5.3 + 8.3 AOA 10.9 + 4.4 + 6.7 Nestlé Waters 6.4 + 1.1 - 0.6 Other activities 6.0 + 9.7 + 11.2 Total group 64.6 + 2.9 + 4.5 Name of chairman
Slide 13: Sales by Product Group
Sales by Product Group 9 months 2004 Sales RIG OG CHF bn % % Beverages 16.4 + 2.6 + 2.5 Milk products, nutrition and ice cream 18.0 + 1.7 + 4.9 Prepared dishes and cooking aids 11.6 + 1.7 + 3.0 Chocolate, confectionery and biscuits 7.1 + 3.1 + 4.4 PetCare 7.4 + 3.9 + 6.9 Pharmaceutical products 4.1
Slide 14: Nestlé Press Conference 21 October 2004
Nestlé Press Conference 21 October 2004 Name of chairman
Slide 15: GLOBE Program Status
GLOBE Program Status • GLOBE Program continues to be on track and on budget • GLOBE Program Objectives: 1.Implement harmonized Nestlé Best Practices 2.Implement data standards/data management 3.Implement standardized information systems and infrastructure Name of chairman
Slide 16: GLOBE Program Status
GLOBE Program Status • All markets implementing first two objectives ("Business Excellence") and realizing benefits Name of chairman
Slide 17: GLOBE Program Status
GLOBE Program Status • First implementations in "key" markets with upgraded systems successful to date • Nestlé Canada • Nestlé Philippines • Nestlé Purina UK Name of chairman
Slide 18: GLOBE "Live" Markets (as of October 2004)
GLOBE "Live" Markets (as of October 2004) Nine markets have implemented all three GLOBE objectives: • 12 countries • Over CHF 8 billion in sales • Over 31,000 employees (21,000 users of the system) • 80 factories • 114 distribution centers • 129 sales offices Over 10% of Nestlé Food and Beverage bus
Slide 19: Nestlé Press Conference 21 October 2004
Nestlé Press Conference 21 October 2004 Name of chairman
Slide 20: Nestlé Nutrition Since 1997
Nestlé Nutrition Since 1997 1997 Creation of separate Strategic Nutrition Division reporting directly to the CEO 2003 Appointment of Mr. Luis Cantarell as Deputy Executive Vice President and member of the Nestlé Executive Board 2004 Decision to create an autonomous, tightly- focused Nestlé Nutrition
Slide 21: Consumer Education
Consumer Education Germany Switzerland Austria Portugal Australia Peru Name of chairman
Slide 22: International Nutrition Symposium 2004
International Nutrition Symposium 2004 From left to right Mr. W. Bauer - Executive Vice President Prof. M. Brown (Nobel Prize in 1985) Prof. J. Goldstein (Nobel Prize in 1985) Mr. P. Brabeck-Letmathe - CEO Prof. G. Blobel (Nobel Prize in 1999) Mr. P. van Bladeren - Head of NRC Name of chairman
Slide 23: Core Nutrition: What do we mean by that?
Core Nutrition: What do we mean by that? Nutrition Nutrition First, First, Taste Taste First, First, Taste Taste as as aa value value Nutrition Nutrition as as aa added added Healthy value value added added Performance Nutrition Nestlé mainstream Infant Nutri- tion Nutrition first Taste first Health
Slide 24: Core Nutrition Business
Core Nutrition Business Name of chairman
Slide 25: NN Visual Identity
NN Visual Identity Name of chairman
Slide 26: Nestlé Nutrition Mandate
Nestlé Nutrition Mandate “Nutrition for an enhanced quality of life” Through science-based nutrition products and services, Nestlé Nutrition will deliver superior business performance, demonstrate leadership in “claim first” products and brands, support health and provide care for consumers with spe
Slide 27: The Wellness Program - Strategic Roadmap to NHW
The Wellness Program - Strategic Roadmap to NHW • Positive orientation • Develop Nutrition as a People towards Nutrition value competitive advantage added Products • Aligning science and Brands • Nutrition and health Science dimension in our Brand consumer benefits & communication Communication Name
Slide 28: Europe: Discounters' Market Share
Europe: Discounters' Market Share Discount market shares Discount market (%): shares, examples (%): UK/IRE 6 <5 Italy 7 6-10 France 12 Sweden 15 11-20 Belgium 16 21-30 The Netherlands 17 31-45 Denmark 26 Austria 29 Spain 31 Germany 38 Norway 40 Growth rates, p.a. (%) Discounters: 5-10 Traditional re
Slide 29: Private Label in Europe
Private Label in Europe PLB share of total PLB shares, consumption (%) examples (%): <5 Italy 13 Netherlands 21 6-10 France 25 11-20 Spain 27 21-30 Germany 33 Belgium 37 31-45 UK 41 Name of chairman
Slide 30: Wal-Mart Worldwide Nestlé Products Sales
Wal-Mart Worldwide Nestlé Products Sales In USD billion 6 4 2 0 2002 2003 2004 (Forecast) Name of chairman
Slide 31: Winning with Discounters
Winning with Discounters Model 1 Model 2 Model 3 Offer brands, but Offer discounters Offer dedicated Models differentiated same brands and brands (existing) or approach: variants, variants as sub-brands (owned packaging/labelling, traditional retailer by Nestlé) etc. • Exploitation of general • Expl
Slide 32: Program: "Market Heads 97"
Program: "Market Heads 97" Expected Delivered 1200 1100 1000 900 900 800 700 600 600 600 600 600 600 600 400 200 0 1997 1998 1999 2000 2001 Expected: CHF 600 million per year Delivered: 1997 - CHF 600 million 1998 - CHF 700 million 1999 - CHF 900 million 2000 - CHF 1.1 billion 2001 - CHF 900 million
Slide 33: Program: "Target 2004+"
Program: "Target 2004+" Expected Delivered 1200 1200 1100 930 1000 800 600 500 500 500 400 200 0 2002 2003 2004 Expected: CHF 500 million per year Delivered: 2002 - CHF 1.2 billion 2003 - CHF 930 million 2004 - CHF 1.1 billion* (*estimated) Name of chairman
Slide 34: "Operation EXCELLENCE 2007"
"Operation EXCELLENCE 2007" Production / Customer Purchasing Co- Distribution Service manufacturing Optimised planning processes Total Delivered Streamlined organisation structures Cost Improvements Product Quality Management Continuous Improvement Part of Supply Chain Part of Technical Name of chai
Slide 35: Evolutionary Approach to Savings
Evolutionary Approach to Savings Operation EXCELLENCE 2007 Target 2004+ MH'97 Ø Integrated Technical / Supply Chain / Generating Demand effort Ø Target setting Ø Optimised planning processes CI Ø Best practices Ø Complexity optimisation Ø Industrial Restructuring Ø Lean overhead structures Ø F. Cont
Slide 36: Next Media Events
Next Media Events 24 February 2005 - Press Conference 14 April 2005 - General Meeting 25 April 2005 - Q1 Sales Name of chairman