Nestle S.a. · SIX:NESN
Nestle — 9M 2014 Earnings Presentation
46 slides from Nestle's earnings presentation, Oct 16, 2014
Slide 1: Welcome to the Nine-Month Sales Conference
Welcome to the Nine-Month Sales Conference
Slide 2: Nine-Month Sales Conference: Paul Bulcke, Nestlé CEO
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 3: Nine-Month Sales Conference: Wan Ling Martello, CFO
Nine-Month Sales Conference Wan Ling Martello Chief Financial Officer
Slide 4: 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 5: Highlights
Highlights Sales of CHF 66.2 billion, impacted by -7.5% FX Organic growth 4.5% Real Internal Growth 2.3% All geographies contributing to positive growth Outlook unchanged: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 5 16
Slide 6: Broad based regional growth
Broad based regional growth Asia, Americas Europe Oceania & Africa Sales 28.0 bn 18.5 bn 19.7 bn (in CHF) RIG +1.9% +2.0% +3.1% OG +5.1% +1.4% +6.5% Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science and Nestlé Skin Health OG = Organic
Slide 7: Developed and Emerging markets growth
Developed and Emerging markets growth Developed Emerging Sales (in CHF) 36.9 bn 29.3 bn % of Group Sales 56% 44% OG +0.5% +9.5% 7 16 October 2014 Nine-Month Sales Conference
Slide 8: Zone Europe
Zone Europe Sales 11.1 RIG % 2.0 OG % 1.0 in CHF bn Growth driven by innovation and premium Nescafé Dolce Gusto, PetCare, Frozen Pizza remain highlights Western Europe – Solid growth in France, Iberia and Benelux – Italy and Germany and UK still subdued Eastern Europe: – Russia remained the
Slide 9: Zone Americas
Zone Americas Sales 19.3 RIG % 1.1 OG % 4.8 in CHF bn North America – Innovation across several categories – Challenges in Frozen & Ice Cream – Coffeemate and PetCare were highlights Latin America – Softer trading environment – Brazil solid performance with Ninho, Nescau and Kit Kat – Mexico rem
Slide 10: Zone Asia, Oceania & Africa
Zone Asia, Oceania & Africa Sales 13.4 RIG % 0.7 OG % 3.5 in CHF bn Growth impacted by China, Oceania and pricing taken across many markets Premium, Milo, Maggi, Ready-to-drink and Creamers were growth drivers Emerging markets – Philippines, Turkey, Pakistan and Africa highlights – China remai
Slide 11: Nestlé Waters
Nestlé Waters Sales 5.7 RIG % 5.8 OG % 5.1 in CHF bn Continued growth momentum, affected by cooler summer International sparkling waters had good global growth Developed markets – North America continued solid performance – Positive growth in Europe impacted by weather Emerging markets – Dou
Slide 12: Nestlé Nutrition
Nestlé Nutrition Sales 7.1 RIG % 3.4 OG % 7.8 in CHF bn Infant Formula and Infant Cereals remained the growth drivers Emerging markets double-digit growth: – China still a highlight Developed markets: – Meals and Drinks impacted by a soft category Brand highlights were NAN, S26 and Illuma in
Slide 13: Other Businesses
Other Businesses Sales 9.6 RIG % 4.9 OG % 6.6 in CHF bn Nestlé Professional Emerging markets maintained growth momentum Developed markets soft with some signs of improvement Nespresso Continued global growth, both established and new markets VertuoLine launch on track, well received by consu
Slide 14: Summary
Summary Solid organic growth in a volatile trading environment with no tailwinds Growth in both Emerging and Developed Markets Continued to invest in our long-term strategy Full-year outlook unchanged Organic growth around 5% and improvements in margins, underlying earnings per share in cons
Slide 15: Nine-Month Sales Conference: Paul Bulcke, Nestlé CEO
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 16: Enhancing people's quality of life
Enhancing people’s quality of life through nutrition, health and wellness with science-based innovation 16 16 October 2014 Nine-Month Sales Conference
Slide 17: 16 October 2014 Nine-Month Sales Conference
17 16 October 2014 Nine-Month Sales Conference
Slide 18: Expanding the boundaries of NHW
Expanding the boundaries of NHW Nutritional solutions that change the way we approach the management of health 18 18 16 October 2014 Nine-Month Sales Conference
Slide 19: Expanding the boundaries of NHW
Expanding the boundaries of NHW Set up of Nestlé Health Science Definition of our territory Creation of Nestlé Institute of Health Sciences Strong innovation 19 19 16 October 2014 Nine-Month Sales Conference
Slide 20: Expanding the boundaries of NHW
Expanding the boundaries of NHW To enhance the quality of life by delivering science-based solutions for the health of skin over the course of people’s lives 20 16 October 2014 Nine-Month Sales Conference
Slide 21: Growing skin health needs
Growing skin health needs From 2010 to 2020 the population under 9 years of age will grow 6% The population over 60+ years of age will grow +35% (79% by 2030) Holistic approach to Wellness & the skin Skin The skin is the largest organ of the human body Food & Environment Pathology and represents the
Slide 22: Meeting patients' dermatological needs throughout life
Meeting patients’ dermatological needs throughout life Congenital Nail Skin Cleaning Impetigo Diseases Acne Psoriasis diseases Cancer Skin Lipo- Protection Burns Hair loss Ageing atrophy Babies Kids Teens Adults Seniors Diaper rash Eczema Infections Rosacea/ Photo Ulcers Redness damage Sun Pigmentar
Slide 23: Keeping long-term direction, while delivering short term
Keeping long-term direction, while delivering short term 23 16 October 2014 Nine-Month Sales Conference
Slide 24: Keeping long-term direction, while delivering short term
Keeping long-term direction, while delivering short term Grasp Make choices opportunities Engage with Value what the community consumers value and stakeholders Win through Embrace digital people and teams Roadmap Priorities Focus areas Expanding the boundaries of NHW 24 16 October 2014 Nine-Month Sa
Slide 25: Focus areas
Focus areas Strengthening portfolio Allocating resources Mastering complexity 25 16 October 2014 Nine-Month Sales Conference
Slide 26: Strengthening portfolio
Strengthening portfolio Cells SKUs 100 000 - 30% 50 000 Strategic Fit Profitable Growth 2012 2014 Resource Intensity 26 16 October 2014 Nine-Month Sales Conference
Slide 27: Strengthening portfolio
Strengthening portfolio Divest Invest Chilled dairy Mexico Nestlé Waters Direct 27 16 October 2014 Nine-Month Sales Conference
Slide 28: Focusing resources on our growth drivers
Focusing resources on our growth drivers CAPEX MARKETING R&D 69% in cc 46% + >25% 20% 4% Growth Growth 8% 8% 19% 26% ROIC 2011 2012 2013 2014 ROIC 28 16 October 2014 Nine-Month Sales Conference
Slide 29: Nestlé Infant Nutrition: First 1000 days
Nestlé Infant Nutrition: First 1000 days Pregnancy 0-6 months 6-8 months 9-11 months 12-36 months Maternal Nut Infant Formula & GUMs Breastfeeding is Best Infant Cereals Premature Meals & Drinks 29 16 October 2014 Nine-Month Sales Conference
Slide 30: Nestlé Infant Nutrition: First 1000 days
Nestlé Infant Nutrition: First 1000 days Pregnancy 0-6 months 6-8 months 9-11 months 12-36 months Maternal Nut Infant Formula & GUMs Breastfeeding is Best Infant Cereals NIDO Growing Up Milks Premature Meals & Drinks 30 16 October 2014 Nine-Month Sales Conference
Slide 31: Redefining Zones
Redefining Zones Europe Americas Asia, Oceania and Africa 31 16 October 2014 Nine-Month Sales Conference
Slide 32: Redefining Zones
Redefining Zones Europe, Middle East & Europe North Africa Americas Asia, Oceania and Africa 32 16 October 2014 Nine-Month Sales Conference
Slide 33: Leverage scale + Enhance focus
Leverage scale + Enhance focus Nestlé Nestlé Business Business Excellence Excellence 33 16 October 2014 Nine-Month Sales Conference
Slide 34: A decentralised structure close to the consumer
A decentralised structure close to the consumer Factories R&D Illustrative 34 16 October 2014 Nine-Month Sales Conference
Slide 35: Harmonisation of business processes
Harmonisation of Standardisation of Alignment business processes data management of IS/IT systems 35 16 October 2014 Nine-Month Sales Conference
Slide 36: NCE as permanent efficiency driver
NCE as permanent efficiency driver Excellence Excellence in Excellence in “from farm to fork” administrative processes manufacturing 36 16 October 2014 Nine-Month Sales Conference
Slide 37: Nestlé Business Services
Nestlé Business Services Employee services Lviv Vevey Financial Services Cairo Manila Workplace Accra solutions Ribeirao Preto Services to procurement Digital and social media services 37 16 October 2014 Nine-Month Sales Conference
Slide 38: Leverage scale + Enhance focus
Leverage scale + Enhance focus + Nestlé Nestlé Business Business + Excellence Excellence 38 16 October 2014 Nine-Month Sales Conference
Slide 39: Nestlé Business Excellence
Leverage scale + Enhance focus Leveraging our scale and skills Nestlé Nestlé Serving our markets effectively Business and efficiently Business Excellence Excellence Increasing focus on demand generation 39 16 October 2014 Nine-Month Sales Conference
Slide 40: Long term and short term
Long term and short term 40 16 October 2014 Nine-Month Sales Conference
Slide 41: 16 October 2014 Nine-Month Sales Conference
41 16 October 2014 Nine-Month Sales Conference
Slide 42: Appendix
Appendix 42 16 October 2014 Nine-Month Sales Conference
Slide 43: Operating Segments
Operating Segments % RIG % OG Zone Zone Zone Nestlé Waters Nestlé Nutrition Other Europe Americas Asia, Oceania, Businesses* Africa Sales 11.1 19.3 13.4 5.7 7.1 9.6 (in CHF bn) * Renamed following the acquisition of Galderma 43 16 October 2014 Nine-Month Sales Conference
Slide 44: Products
Products % RIG % OG Powdered Water Milk products Nutrition Prepared dishes Confectionery PetCare and Liquid and and and Beverages Ice cream Health Science* cooking aids Sales 14.7 5.3 12.5 9.2 9.7 6.7 8.2 (in CHF bn) * Renamed following the acquisition of Galderma 44 16 October 2014 Nine-Month Sales
Slide 45: Currency Overview
Currency Overview Weighted average rate 9M 2013 9M 2014 % Var. 1 US Dollar USD 0.94 0.90 -3.9 1 Euro EUR 1.23 1.22 -1.1 100 Brazilian Reais BRL 44.29 39.29 -11.3 100 Chinese Yuan Renminbi CNY 15.15 14.60 -3.6 100 Mexican Pesos MXN 7.38 6.85 -7.2 1 Pound Sterling GBP 1.45 1.50 3.8 1 Canadian Dollar C
Slide 46: FX Impact
FX Impact FX Impact 9M 2014 Zone Americas -11.3% Zone Europe -3.0% Zone AOA -7.7% Nestlé Waters -4.9% Nestlé Nutrition -8.8% Other Businesses -4.8% Total -7.5% 46 16 October 2014 Nine-Month Sales Conference