Nestle S.a. · SIX:NESN
Nestle — Investor Day (May 2016)
27 slides from Nestle's investor day presentation, May 24, 2016
Slide 1: Sustainable Growth with Returns in Waters
Sustainable Growth with Returns in Waters Insert image here Marco Settembri EVP, Nestlé Waters Nestlé Investor Seminar 24 – 25 May, 2016
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.
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Slide 4: Healthy Hydration: pillar of an healthy lifestyle
Healthy Hydration: pillar of an healthy lifestyle… DRINK WELL EAT WELL MOVE 4 CSD: 1ST SOURCE OF ADDED-SUGAR
Slide 5: Nestlé Waters is essential to Nestlé's Nutrition, Health & Wellness journey
Nestlé Waters is essential to Nestlé’s Nutrition, Health & Wellness journey 5
Slide 6: Water availability: a key challenge for the future
Water availability: a key challenge for the future WATER SUPPLY WATER (QUALITY) ACCESS About 700 m people don’t have 40% water shortfall by 2030 access to improved drinking water BOTTLED WATER IS PART OF THE SOLUTION 6
Slide 7: Fast changing consumers are driving the category
Fast changing consumers are driving the category 1 GROWING & AGEING POPULATION 2 CERTIFIED QUALITY & SAFETY 3 HEALTHY LIVING 4 SENSORIAL PLEASURE 5 FLUID LIFESTYLE 6 EARTH GUARDIAN 7
Slide 8: Bottled Water is the largest and fastest growing beverage category
Bottled Water is the largest and fastest growing beverage category CAGR 2011 - 2015 USA – CSD & Bottled Water million of Gallons Others 1.4 % Bottled 7.2 % Water 2002 2016 2020 CSD Bottled Water 2011 2015 NON ALCOHOLIC RTD BEVERAGES CONSUMERS WILL PURCHASE MORE VOLUME SIZE IN BILLION LITERS BOTTLED
Slide 9: Enhance people's quality of life
Enhance people’s quality of life by leading Healthy Hydration through our passion for water 9
Slide 10: Nestlé Waters delivered profitable growth
Nestlé Waters delivered profitable growth WORLDWIDE SUSTAINED VALUE CREATION MARKET LEADERSHIP GROWTH +680 11.3 bps * OG 6.7 NW A B C 2011 2013 2015 2011 2013 2015 (*) 2015 vs 2011 Top 4 players Value market share Sales ROIC 2015 Source : Zenith International 10
Slide 11: We leverage category growth via our geographic presence
We leverage category growth via our geographic presence Sales 2015 Organic Growth 2015 CHF 7.6 bn 6.7% North America 54% +5% Europe 26% +5% Emerging markets 21% +14% 11
Slide 12: We leverage category growth via our Unique Brand Portfolio
We leverage category growth via our Unique Brand Portfolio Price Share of total Index Sales Status hydration PREMIUM INTL SPARKLING BRANDS 440 18% Active health LOCAL BRANDS 130 57% Daily healthy hydration NESTLÉ BRANDS 100 26% 12 Internal Data 2015
Slide 13: We are leading the fast growing Sparkling segment
We are leading the fast growing Sparkling segment 2011-2015 above 7% yearly growth NESTLÉ WATERS #1 ON THE SPARKLING SEGMENT 13
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Slide 16: Our Local brands have strong territories rooted in their origin
Our Local brands have strong territories rooted in their origin NATURAL MOUNTAIN NATURE’S LOCAL VITALITY STRENGTH FORCE RECONNECTION 16
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Slide 18: Nestlé Pure Life global Leader
Nestlé Pure Life global Leader NESTLE BRANDS +30% vs #2 + World Brands ranking 2015 (value) NUMBER ONE BOTTLED WATER CHAMPION FOR HEALTHY PROMISING BRAND IN THE WORLD HYDRATION INNOVATION (41 COUNTRIES, OG 2015 10%) 18
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Slide 20: Innovations are driving portfolio valorization
Innovations are driving portfolio valorization DIGITAL PREMIUMIZATION FUNCTIONAL ON-THE-GO PLEASURE 20
Slide 21: We care for people by leading healthy hydration
We care for people by leading healthy hydration WE BELIEVE WATER SHOULD BE PROMOTED AS THE CHOICE FOR DAILY HYDRATION HEALTHY EDUCATE ENGAGE WITH PORTFOLIO KIDS OTHERS 21
Slide 22: We care for water by pioneering the water stewardship movement
We care for water by pioneering the water stewardship movement WE BELIEVE WE CAN DEVELOP OUR BUSINESS BY HAVING A POSITIVE IMPACT ON WATER RESOURCES Place icon or Place icon or Place icon or image here image here image here SAVE PROTECT WATER SHARE OUR CONTRIBUTE TO STRIVE FOR WATER & CATCHMENT KNOW
Slide 23: We care for environment by finding new solutions
We care for environment by finding new solutions WE BELIEVE WE CAN DEVELOP OUR BUSINESS WHILE BEING ENVIRONMENTALLY SUSTAINABLE Place icon or Place icon or image here image here MEASURE IMPROVE OUR INNOVATIVE EDUCATE OUR ENGAGE FOR OUR IMPACT PERFORMANCE SOLUTIONS CONSUMERS THE FUTURE 23
Slide 24: Strong competitive advantage from our business model
Strong competitive advantage from our business model End to End management Making choice LEAN AND Lean integrated value chain FOCUSED Availability is a must ON THE CATEGORY Obsession of costs Sensitivity of the product Specific & deep consumer knowledge 24
Slide 25: Focus on efficiency gains and Brands investments leads to sustainable value creation
Focus on efficiency gains and Brands investments leads to sustainable value creation Focusing on efficiency gains Profit improvement above Fueling our Brands value With a Lean Value Chain, Group average 900 12.0% +130 800 +280 -300 10.0% Bps * 700 Bps * Bps * 600 8.0% 500 6.0% 400 300 4.0% 200 2.0%
Slide 26: We will leverage the fastest growing beverage category
We will leverage the fastest growing beverage category + 6% 2015 2019 BOTTLED WATERS VOLUME SIZE Source : Zenith International 26
Slide 27: We are ideally positioned to capture future profitable growth
We are ideally positioned to capture future profitable growth LEVERAGING THE FASTEST GROWING BEVERAGE CATEGORY…. UNIQUE WATER AN UN-BEATENED EFFICIENT AND AN INCLUSIVE ACCESS BRAND PORTFOLIO FOCUSED BUSINESS CULTURE MODEL 27