Slide 1: 2012 Full Year Results
2012 Full Year Results Wan Ling Martello Chief Financial Officer Roddy Child-Villiers Head of Investor Relations February 14th, 2013 2012 Full Year Results
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: 2012 Commitments
2012 Commitments Financial Efficiencies Strategic Delivered the CHF 1.5 bn+ Nestlé Model SKUs -14% Sustainable Capital dividend policy efficiencies 2 February 14th, 2013 2012 Full Year Results
Slide 4: 2012 Results Overview Delivering the Nestlé Model
2012 Results Overview Sales Trading Cash Flow Operating Profit CHF 92.2 bn CHF 14.0 bn CHF 15.8 bn +CHF 8.6 bn +CHF 1.5 bn +CHF 5.6 bn +5.9% OG 15.2% +55% +3.1% RIG +20 bps Delivering the Nestlé Model 3 February 14th, 2013 2012 Full Year Results
Slide 5: Trading Operating Profit Margin
Trading Operating Profit Margin +20 -30 TOP 15.2% -20 +70 +20 bps +20 +30 TOP 15.0% 0 0 +100 FY 2011 Other COGS Distribution Marketing Admin. R&D Net Other FY 2012 Revenue Trading Expense TOP = Trading Operating Profit 4 February 14th, 2013 2012 Full Year Results
Slide 6: Trading Operating Profit Margin
Trading Operating Profit Margin +20 -30 TOP 15.2% +70 +30 -20 +20 +20 bps Consumer facing marketing TOP 15.0% 0 0 +8% +100 in constant currency FY 2011 Other COGS Distribution Marketing Admin. R&D Net Other FY 2012 Revenue Trading Expense TOP = Trading Operating Profit 5 February 14th, 2013 2012 Ful
Slide 7: Trading Operating Profit Margin
Trading Operating Profit Margin +20 -30 Administration Expenses impact on -20 +70 +20 TOP 15.2% +20 bps Trading Operating Profit +30 TOP 15.0% 0 0 +80 +70 +100 +50 Increase in bps Decrease -20 in bps -30 2008 2009 2010 2011 2012 FY 2011 Other COGS Distribution Marketing Admin. R&D Net Other FY 2012
Slide 8: Income Statement
Income Statement As % of sales Difference in Full Year Full Year basis points/% 2011 2012 (rounded) Trading operating profit 15.0 15.2 +20 Net other operating income/expense (0.1) (0.1) Operating profit 14.9 15.1 +20 Net financial income/expense (0.5) (0.5) Profit before taxes and associates 14.4 14
Slide 9: Operating cash flow and working capital
Operating cash flow and working capital Operating cash flow up 50% to CHF15.8 bn Working capital the key driver Long term W/C trend shows clear improvement 2012 W/C performance in part due to comparatives 1) 2) 2005 2006 2007 2008 2009 2010 2011 2012 TNWC as % of sales Notes: Continuing Oper
Slide 10: Net Debt
Net Debt -0.2 CHF bn -6.2 + 9.9 -10.9 + 2.8 + 0.7 b) - 18.2 - 14.3 Net debt Treasury shares Acquisition Dividends Exchange rates Free Cash Flow LT financial Net debt a) January 1st (net) net & other investments December 31st disposals (incl. Minority) a) Mainly bonds and Asian equities reclassified
Slide 11: FY 2012 restatement for new accounting standards: IAS 19 and IFRS 11
FY 2012 restatement for new accounting standards: IAS 19 (Pensions) and IFRS 11 (JVs) Reported Restated (estimates) Publication of 2012 restated numbers Sales 92.2 bn 89.7 bn -2.5 bn (JVs) Before Q1 2013 sales announcement: Q1 and 9 month 2012: TOP 15.2 % 15.0 % -20 bps - Sales by Operating segmen
Slide 12: Summary
Summary Good broad-spread results Delivering performance today while investing for the future Increased investment behind our brands Improved cash flow Double-digit growth in earnings per share Nestlé model achieved Dividend increased to CHF 2.05 per share 11 February 14th, 2013 2012 F
Slide 13: Billionaire Brands
Billionaire Brands +7% OG OG figure excludes Yinlu, Hsu Fu Chi and Wyeth Nutrition 12 February 14th, 2013 2012 Full Year Results
Slide 14: Sales by region
Asia, Americas Europe Oceania & Africa Sales (CHF) 41 bn 26 bn 25 bn OG +5.9% +2.4% +10.3% RIG +1.8% +1.5% +7.5% * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc and JVs; OG = Organic Growth, RIG = Real Internal growth 13 February 14th, 2013 2012 Fu
Slide 15: Developed Markets
Developed Markets 57% of CHF 52.9 bn +2.5% OG Group sales 14 February 14th, 2013 2012 Full Year Results
Slide 16: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 15 February 14th, 2013 2012 Full Year Results
Slide 17: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 16 February 14th, 2013 2012 Full Year Results
Slide 18: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 17 February 14th, 2013 2012 Full Year Results
Slide 19: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 18 February 14th, 2013 2012 Full Year Results
Slide 20: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 19 February 14th, 2013 2012 Full Year Results
Slide 21: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 20 February 14th, 2013 2012 Full Year Results
Slide 22: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 21 February 14th, 2013 2012 Full Year Results
Slide 23: Developed Markets Delivering Growth in 2012
Developed Markets Delivering Growth in 2012 22 February 14th, 2013 2012 Full Year Results
Slide 24: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 23 February 14th, 2013 2012 Full Year Results
Slide 25: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 24 February 14th, 2013 2012 Full Year Results
Slide 26: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 25 February 14th, 2013 2012 Full Year Results
Slide 27: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 26 February 14th, 2013 2012 Full Year Results
Slide 28: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 27 February 14th, 2013 2012 Full Year Results
Slide 29: Developed Markets Driving growth in 2013 and beyond
Developed Markets Driving growth in 2013 and beyond 28 February 14th, 2013 2012 Full Year Results
Slide 30: Developed Markets Nestlé in Society
Developed Markets CARBON DISCLOSURE PROJECT Nestlé in Society 29 February 14th, 2013 2012 Full Year Results
Slide 31: Emerging Markets
Emerging Markets 43% of CHF 39.3 bn 11% OG Group sales 30 February 14th, 2013 2012 Full Year Results
Slide 32: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 31 February 14th, 2013 2012 Full Year Results
Slide 33: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 32 February 14th, 2013 2012 Full Year Results
Slide 34: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 33 February 14th, 2013 2012 Full Year Results
Slide 35: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 34 February 14th, 2013 2012 Full Year Results
Slide 36: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 35 February 14th, 2013 2012 Full Year Results
Slide 37: Emerging Markets Delivering Growth in 2012
Emerging Markets Delivering Growth in 2012 36 February 14th, 2013 2012 Full Year Results
Slide 38: Emerging Markets Driving growth in 2013 and beyond
Emerging Markets Driving growth in 2013 and beyond 37 February 14th, 2013 2012 Full Year Results
Slide 39: Emerging Markets Driving growth in 2013 and beyond
Emerging Markets Driving growth in 2013 and beyond 38 February 14th, 2013 2012 Full Year Results
Slide 40: Emerging Markets Driving growth in 2013 and beyond
Emerging Markets Driving growth in 2013 and beyond 39 February 14th, 2013 2012 Full Year Results
Slide 41: Emerging Markets Driving growth in 2013 and beyond
Emerging Markets Driving growth in 2013 and beyond 40 February 14th, 2013 2012 Full Year Results
Slide 42: Emerging Markets Nestlé in Society
Emerging Markets Nestlé in Society 41 February 14th, 2013 2012 Full Year Results
Slide 43: Delivered in 2012; well set for '13 & beyond
Delivered in 2012; well set for ‘13 & beyond Delivered Organic growth and TOP margin improvement Increased EPS and Cash flow Grew in Emerging and Developed markets Grew in PPPs and Premium Investing in our brands and routes to market Creating value for society and shareholders Nestlé Mod
Slide 44: 2012 Full Year Results Discussion
2012 Full Year Results Discussion 43 February 14th, 2013 2012 Full Year Results
Slide 45: Appendix
Appendix 44 February 14th, 2013 2012 Full Year Results
Slide 46: Translational Impact of Swiss Franc
Translational Impact of Swiss Franc Weighted Average Exchange Rates CHF per FY 2011 FY 2012 (%) US Dollar (1) 0.89 0.94 +5.8 Euro (1) 1.23 1.21 -2.2 £ Sterling (1) 1.42 1.49 +4.7 Real (100) 52.94 47.96 -9.4 Mex. Peso (100) 7.12 7.14 +0.2 Yen (100) 1.12 1.17 +4.2 45 February 14th, 2013 2012 Full Year
Slide 47: FX Impact on All Businesses
FX Impact on All Businesses (%) 1Q12 HY12 9m 2012 FY12 Zone Americas -4.2 -0.8 +3.5 +2.7 Zone Europe -5.9 -4.4 -1.2 -0.9 Zone AOA -3.8 -0.6 +3.5 +2.8 Nestlé Waters -4.5 -0.5 +3.8 +3.2 Nestlé Nutrition -5.3 -2.6 +1.4 +1.0 Other -4.4 -2.4 +1.3 +1.0 Total -4.6 -1.8 +2.2 +1.7 46 February 14th, 2013 2012
Slide 48: Operating Segments
Operating Segments % OG % RIG 8.4 8.7 6.4 6.7 5.2 1.8 5.9 4.9 6.5 3.0 1.1 0.6 Zone Zone Zone Nestlé Nestlé Other Europe Americas AOA Waters Nutrition Sales 15.4 28.9 18.9 7.2 7.9 13.9 CHF bn rounded TOP Margin 15.7% 18.6% 19.0% 8.9% 19.2% 17.2% +10 bps +20 bps +10 bps +90 bps -80 bps +40 bps 47 Febr
Slide 49: Product Groups
Product Groups % OG % RIG 8.9 7.0 5.7 4.8 6.0 1.4 4.0 1.2 2.8 -0.2 Powdered & Milk Products Prepared Dishes Confectionery PetCare Liquid Beverages & Ice Cream & Cooking Aids Sales 20.0 18.6 14.4 10.4 10.8 CHF bn rounded TOP Margin 22.5% 15.1% 14.1% 17.1% 20.4% -20 bps +140 bps -40 bps +30 bps -20 bp