Nestle S.a. · SIX:NESN
Nestle — Nestlé Nespresso — Investor Presentation (June 2010)
23 slides from Nestle's investor presentation, Jun 21, 2010
Slide 1: The Nespresso Winning Formula
The Nespresso Winning Formula Continuous innovation and highest quality as cornerstones for sustainable growth June 21st , 2010 Richard Girardot CEO Nestlé Nespresso S.A.
Slide 2: Disclaimer
Disclaimer 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.
Slide 3: Impressive continuous growth
Impressive continuous growth 2000 2009 2.770 bn 210 mn Turnover in CHF 2.770 bn 868 Cups per minute 10,000 6% Coffee Systems MS% 19.5% (Units) 600,000 Global Club Community 8 million 1 Global Boutique Network 191 331 Nespresso Employees 4,500 70 % in direct contact with Nespresso costumers
Slide 4: Market attractiveness triggers increasing number of competitors
Market attractiveness triggers increasing number of competitors 3. Private 4. Me-too capsules Label 32 2. Mainly port. Closed 26 + 20 08: 0 -2 04 20 1. Many port. Open Few port. Closed 6 0 01 : +5 -2 19 91 1 1986 1990 1991 1995 1996 1998 2000 2001 2004 2005 2006 2007 2008 2009 2010
Slide 5: Nestlé takes over segment leadership
Nestlé takes over segment leadership Coffee System Evolution by MS % (machine units) Nespresso + Dolce Gusto 29.7 29.1 Nespresso 19.9 10.9 9.6 7.6 Tassimo Dolce Gusto Source: GFK 10 Key European Markets
Slide 6: Total focus on highest quality coffee
Total focus on highest quality coffee Nespresso is a stand alone Globally Managed Business with its own § global P&L § global decision-making § unique business model § global production centres § specific route to market What are the benefits? § Global business focus § Faster decision-making § Consi
Slide 7: Nespresso is becoming a global player
Nespresso is becoming a global player n In 2009 for the first time, Zones AMS and AOA accounted for more than 10% of sales n 223 boutiques by end 2010
Slide 8: High Potential for Portioned Coffee
High Potential for Portioned Coffee Portioned coffee share of total coffee market in cups units/value 100% R & G/Soluble Coffee Portioned Coffee Value est. 25%** 19 % * 7 %* Units est.12%** 2000 2009 2010 2015 * Source: AC Nielsen Europe +North America (12) Coverage **Source: Nespresso Projection 8
Slide 9: Nespresso's Winning Formula
Nespresso’s Winning Formula Enhancing our competitive advantages while building on our core competences... n Unsurpassed coffee quality & deep coffee expertise n Unstoppable drive for innovation & distinctive design n Passionate global brand community n Aspirational iconic global brand n Exclusive r
Slide 10: Unique sourcing of finest green coffee
Unique sourcing of finest green coffee Only the top 1-2% of the world’s green coffee crop meets our specific taste/aroma profiles and Nespresso’s demanding quality standards. Nespresso Best Grade Quality + Gourmet Coffee 10% Aroma Profiles Commercial Grades 10-20% 90 % 10
Slide 11: Unique way to create Grand Cru Coffees
Unique way to create Grand Cru Coffees n Dedicated Nespresso team of coffee experts n Rigorous quality management from cherry to cup n Skillful blending to create the specific aroma profiles of our 21 Grand Cru coffees and limited editions n Extreme care in the drying, roasting & grinding process 11
Slide 12: State-of-the-art Production Centres
State-of-the-art Production Centres Avenches + Extension: Orbe n Total investment: CHF 400 million n Total investment: CHF 215 million n Building surface: 16,700 m2 n Building surface: 10,200 m2 n Production capacity (capsules): n Production capacity (capsules): – 4.8 billion (2009) – 4.1 billion (B
Slide 13: Unique choice of Grand Cru coffees
Unique choice of Grand Cru coffees n The 16 varieties, each unique, and each a perfect combination of crema, body and taste. n With distinct individual aromas and flavor notes to appeal to every personal taste preference n Packaged in hermetically sealed iconic aluminium capsules designed to conserv
Slide 14: Innovation Pipeline
Unstoppable drive for innovation and design n Nespresso in-house R&D team n Deeply routed culture of creativity and innovation Innovation Pipeline n More than 1,700 patents n Award-winning design n Filled innovation pipeline 1986 2001 2004 2005 2007 2009 14
Slide 15: Nespresso a global iconic brand
Nespresso a global iconic brand à 1st global roast and ground coffee brand à Since 2008 among the top 20 risers in brand value ranking à Nespresso perceived as global super premium brand 15
Slide 16: Unique way of creating direct relations
Unique way of creating direct relations n More than 8 million coffee connoisseurs form global Nespresso fan community n More than 3,000 Nespresso Coffee Specialists have 100,000 contacts every day with direct customer relations n Best brand ambassadors 50% of our new customers experience Nespresso t
Slide 17: Nespresso's unique route-to-market
Nespresso’s unique route-to-market Nespresso Sales in % by Channel Internet 50% CRC 20% Boutique 30% Source: Nespresso Statistics excl. Export 2009 17
Slide 18: Biggest shop window www.nespresso.com
Biggest shop window www.nespresso.com n 7million visits in 2009 with an average time spent of 6 minutes
Slide 19: Global Nespresso Boutique Network
Global Nespresso Boutique Network Europe: 142 223 boutiques by the end of 2010 AMS: 29 Denmark: 1 Switzerland:18 AOA: 52 Sweden: 1 Italy: 19 Norway: 1 Spain: 27 UK & Ireland:8 Portugal: 8 France: 21 Greece: 1 Benilux: 3 Russia: 3 Holland: 10 Czech Rep.: 1 Germany: 9 Poland: 1 Austria: 7 Hungary: 1 C
Slide 20: Improving quality at every step of the value chain
Improving quality at every step of the value chain Nespresso, a unique business model, allows us to guarantee quality from cherry to cup 20
Slide 21: Ecolaboration™ Nespresso's holistic approach for sustainable development
Ecolaboration™ Nespresso’s holistic approach for sustainable development Building on the principles of the Nestlé “Creating Shared Value” approach, the Nespresso Ecolaboration™ framework aims to bring stakeholders and Nespresso partners together with the ultimate objective of continuously improving
Slide 22: Creating sustainable future growth
Creating sustainable future growth Capitalise on strengths of unique business model and luxury brand image n Conquer new geographies through a targeted urban expansion strategy – grow to 223 boutiques with more than 30 locations including Miami, Brussels, New York (Soho), Munich – expansion outside
Slide 23: Thanks
Thanks