Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2024)
21 slides from Nestle's investor day presentation, Nov 19, 2024
Slide 1: The World of Confectionery
Confectionery The World of Confectionery CorinneGabler Corinne Gabler – Head – Head of Confectionery of Confectionery SBU SBU MarceloMelchior Marcelo Melchior – Market – Market Head Head Brazil Brazil Confectionery
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: Nestlé Confectionery overview
Nestlé Confectionery overview Performance Footprint Our position 8.1 bn Where we sell What we sell #3 2023 sales (CHF) Confectionery (footprint) North Europe Chocolate 77% America 38% #1 8% 16.8% 2023 underlying Greater Biscuits TOP margin China & snacks 15% Confectionery 10% (LATAM & Canada) 8.6% 3
Slide 4: Confectionery: a large, resilient and growing category
Confectionery: a large, resilient and growing category 2023 Retail sales value 2021-23 average growth (%) Sweet Biscuits CHF 74 bn • 4-5% expected growth Chocolate 31% 8.1% 2025-27 CHF 105 bn 44% CHF 239 bn 8.1% 8.4% • Modest downtrading 25% • Indulgence as a treat Sugar CHF 60 bn 9.6% 4 November 19
Slide 5: Growth will be driven by consumers snacking more, more variety & premiumization and emerging markets
Growth will be driven by consumers snacking more, more variety & premiumization and emerging markets Consumers snacking more More variety & premiumization Emerging markets On the go and convenience New experiences, flavors/textures More consumers and consumption and high-quality products 5 November
Slide 6: Strong competitive position, combining global & local strategy
Strong competitive position, combining global & local strategy Global Local Iconic brand, Local jewels loved Brands owning the break by consumers Efficiencies Global communications & partnerships + Speed to market R&D Patented transversal technologies World leader in wafer baking deployment & dedica
Slide 7: Over the last two years, focus has been our biggest priority
Over the last two years, focus has been our biggest priority Faced strong challenges Stayed competitive Positive outcomes Internal complexity with Clear brand choices KitKat + priority brands 200+ brands Brand and SKU rationalization growing > 2x faster Focused paid media1 Media effectiveness from F
Slide 8: High cocoa prices will continue in 2025, and we must stay competitive using five key levers
High cocoa prices will continue in 2025, and we must stay competitive using five key levers 1 Balanced pricing 2 Strategic revenue management 3 Play the mix: Portfolio, customers and channels 4 Innovation: value up and lower cocoa products 5 Efficiencies 8 November 19, 2024
Slide 9: Our strategy focuses in 4 key growth drivers
Our strategy focuses in 4 key growth drivers Further accelerate Win with regional/local Pursue value-up 1 2 3 KitKat jewels journey … 4 Accelerate emerging markets 9 November 19, 2024
Slide 10: KitKat growing as an iconic brand owning the break
KitKat growing as an iconic brand owning the break Strong performance Accelerating emerging markets 3-year average OG #1 +400bps Chocolate bar1 Developed Emerging 13.8% 3-year average OG Investing to enable future growth (2021-23) Returned to the pre-covid levels of +70bps marketing 2020-23 market s
Slide 11: Further accelerating KitKat as Global brand and unlocking efficiencies
Further accelerating KitKat as Global brand and unlocking efficiencies Global Iconic Communication Big, Global partnerships Expanding occasions vs local IPs Within chocolate… Candy Crush – 2024/2025 40+ markets Building a CHF +100 m platform Formula 1 – 2025+ Best in class asset quality …and beyond
Slide 12: Winning with select regional and local brands and expanding occasions with premiumization
Winning with select regional and local brands and expanding occasions with premiumization Win with regional and local brands Pursue value-up journey CHF/kg • Selecting brands with fact-based criteria Boutiques Examples Value up / Premium Seasonal • Investing to boost sales - Media for KitKat and key
Slide 13: Accelerating emerging markets, a profitable accretive growth driver
Accelerating emerging markets, a profitable accretive growth driver Attractive Our performance Our emerging market sales Key growth platforms Nestlé strong footprint 4.4 bn Europe High emerging geographic 2023 sales (CHF) 15% Local chosen brands exposure1 vs. competitors Greater China 18% Room for g
Slide 14: Brazilian market is CHF 10 bn, growing +20% (2021-23)
Brazilian market is CHF 10 bn, growing +20% (2021-23) Prioritizing 3 main pillars to capture market momentum Further accelerate KitKat Win with regional/local jewels Pursue value-up journey ChocoBakery Chocolatier Boutiques Chocolate credentials GenZ awareness Value-up offers 14 November 19, 2024
Slide 15: Brazil: The power of Nestlé ecosystem in the market
Brazil: The power of Nestlé ecosystem in the market (NiM) Leading brand in 99% Top of Mindin most categories 15 different categories +22 m unique users in digital products of household penetration Data driven decision Strong sales force Unmatched execution ONE Reaching 600k + TEAM point of sales 1 m
Slide 16: KitKat: Doubled sales from 2020 to 2023, reaching CHF 119 m
KitKat: Doubled sales from 2020 to 2023, reaching CHF 119 m Building an iconic brand, recruiting the young generation Doubled KitKat Recruiting young generations sales in 4 years and expanding distribution Sales in CHF m Recruiting GenZ KITKAT anywhere, Connecting the break with everywhere music & g
Slide 17: Nestlé & Garoto heartlands: Leading the chocolate market in Brazil
Nestlé & Garoto heartlands: Leading the chocolate market in Brazil building an iconic brand and nurturing local jewels +19.3% Leveraging the power of regional 3-yr avg. OG (2021-23) and local with value-up offers Sales Loved & Innovations in CHF m1 respected brand driving growth 1.7x Reached +57 m p
Slide 18: ChocoBakery: Accretive innovations addressing new consumer occasions
ChocoBakery: Accretive innovations addressing new consumer occasions and reducing exposure of cocoa CHF +21 m in Investing in technologies allowed business to first 12 months¹ protect margin while cocoa price increase Weighted distribution in Investing in Brazil as first 8 months new technologies pr
Slide 19: Boutiques complement the portfolio, reaching consumers of super premium products
Boutiques complement the portfolio, reaching consumers of super premium products and strengthening our offer in gifting Fast-growing Consumer centric approach market +19% L3Y with more than 6 m first-party data Retail sales Coffee as a Omnichannel in CHF m1 traffic builder ecossystem 1.8x +60% of ti
Slide 20: Nestlé virtuous circle in action for Brazil confectionery
Nestlé virtuous circle in action for Brazil confectionery 4 Resilient & accretive to Nestlé: 1 Boost efficiencies to reinvest in • 3-year OG (2021-23): double-digit growth: • Margin improved to high-teens • Raw & Packaging materials • Proven ability to win • Increased automation from 31% to 82% • Ca
Slide 21: Key takeaways
Key takeaways 1. Playing in an attractive category, #3 in footprint and KitKat #1 chocolate bar globally 2. Leveraging the benefits of a perfect mix: Global and Regional / Local strategy 3. Focusing on 4 growth drivers, with a sustainable and responsible approach • Further accelerating KitKat, our i