Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2022)
20 slides from Nestle's investor day presentation, Nov 29, 2022
Slide 1: Performing while transforming
Performing while transforming Mark Schneider Chief Executive Officer
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: In my own words …
In my own words … We have delivered • Focused food & beverage strategy geared for growth • Growth up, margin up We understand and embrace the realities of the new decade • Dynamic hands-on crisis management where needed • Navigating the resurgence of global volatility and geopolitical uncertainty •
Slide 4: Taking stock: what we have accomplished together
Taking stock: what we have accomplished together Increased focus on differentiated offerings in food, beverage and nutritional health Rotated ~20% of portfolio between 2017-2021; successful M&A track record Stepped-up growth, particularly in Coffee, PetCare and Nestlé Health Science Revved up innova
Slide 5: Taking stock: lessons learned and work to do
Taking stock: lessons learned and work to do Advance Consumer Care and Medical Nutrition as key growth platforms Strengthen infant formula core, pursue new growth opportunities from pre-conception to pre-school Drive cost efficiency, value-added offerings and sustainability Incorporate volatility, n
Slide 6: Our strategy
Our strategy 5 November 29, 2022
Slide 7: Key strategic directions in the 2020s
Key strategic directions in the 2020s Good for You Good for the Planet 6 November 29, 2022
Slide 8: Good for You: bringing tasty, balanced diets within reach for billions
Good for You: bringing tasty, balanced diets within reach for billions Transparent reporting Responsible marketing Portfolio nutrition profile New policy New policy on marketing breastmilk substitutes on marketing communication to children (WHO code) Benchmarking entire portfolio against a No formul
Slide 9: Good for the Planet: enhancing supply chain resilience & consumer relevance
Good for the Planet: enhancing supply chain resilience & consumer relevance Climate action Packaging Supply chain due diligence New visual Nestle plan Beyond peak carbon Beyond peak virgin plastic 97% deforestation-free in primary meat, palm oil, pulp & paper, soya & sugar chains 4 m tonnes 0.5 m to
Slide 10: Enhancing value through portfolio management
Enhancing value through portfolio management Active portfolio management • Rotated > 20% of portfolio • More than 90 transactions with total deal value of > CHF 50 bn Disciplined and flexible approach to maximize value creation • More than CHF 50 bn of deal value reviewed but not pursued since 2017
Slide 11: Two acquisitions that did not meet our expectations
Two acquisitions that did not meet our expectations 10 November 29, 2022
Slide 12: Focus Nestlé Health Science
Focus Nestlé Health Science Consumer Care Medical Nutrition • Global leadership in Vitamins, Minerals • #2 global player in medical nutrition and Supplements • Strong Active Nutrition portfolio, including kids • Solid category fundamentals, including aging and adult nutrition, collagen and plant pro
Slide 13: Revitalize Infant Nutrition
Revitalize Infant Nutrition Grow the core Expand category boundaries • Lead in science-based innovation • Build up maternal care • Confirm turnaround in China • Scale pediatric supplement opportunity • Reignite growth in baby food • Expand food portfolio for toddlers and children Historical core Pre
Slide 14: We have what it takes to deliver mid single-digit organic sales growth
We have what it takes to deliver mid single-digit organic sales growth 2025 organic sales growth target Key drivers 10% • Invest selectively in attractive, fast-growing 8% categories & regions 6% • Fix underperformers Sustainable mid single-digit 4% • Drive faster, relevant, impactful innovation • L
Slide 15: Committed to return to an underlying TOP margin of 17.5% - 18.5%
Committed to return to an underlying TOP margin of 17.5% - 18.5% 2025 underlying TOP margin target Key drivers • Implement responsible pricing 19% • Premiumize product offerings 18% 17.5% to 18.5% • Secure strong growth leverage 17% sharp cost inflation • Drive cost efficiencies 16% • Manage portfol
Slide 16: Our value creation model and 2025 targets
Our value creation model and 2025 targets Operating performance Sustainable organic Underlying Annual underlying Free Cash Flow sales growth TOP margin EPS growth trending toward mid single-digit 17.5 -18.5% 6 - 10% 12% of sales Capital discipline Working capital Capex ROIC 0% of sales ~ 5% of sales
Slide 17: Consistent and dependable shareholder returns
Consistent and dependable shareholder returns Outperforming 27 years CHF 171.4 bn returned Global STOXX 1800 F&B Net Return of consecutive dividend increases to shareholders over last 15 years Index over most time horizons 3.00 CHF 2.80 CHF 76.1 bn Share buybacks 1 year 3 year 5 year 10 year Nestlé
Slide 18: Winning in the 2020s: organizational evolution
Winning in the 2020s: organizational evolution Local first, global second • Enhance proximity to consumers • Simplify / shorten / diversify supply chains • Take advantage of local talent pools Unlock new levels of agility and productivity • Creation of Zone North America and Greater China • Faster d
Slide 19: A few personal comments
A few personal comments 18 November 29, 2022
Slide 20: Today’s deep dives
Today’s deep dives Meaningful innovation Accelerating data-driven Nestlé Health Science: to boost growth digital transformation shaping a leader in nutrition and health Leading the world Unlocking agility and of coffee productivity 19 November 29, 2022