Nestle S.a. · SIX:NESN
Nestle — Merger or Acquisition (April 2012)
30 slides from Nestle's merger presentation, Apr 23, 2012
Slide 1: Pfizer Nutrition Acquisition
Wan Ling Martello Paul Bulcke Kurt Schmidt Chief Financial Officer Chief Executive Head of Nestlé Nutrition Roddy Child-Villiers 0 Head of Investor Relations 23rd April, 2012 Pfizer Nutrition Acquisition
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: Paul Bulcke, Chief Executive
Paul Bulcke Chief Executive 2 2 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 4: Building on our 145 year commitment and NHW strategy
Building on... Our 145 year commitment Our Nutrition, Health & Wellness strategy Our special commitment to the first 1000 days 3 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 5: Building on our 145 year commitment...
Building on our 145 year commitment... Henri Nestlé 4 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 6: On our Nutrition, Health & Wellness strategy...
On our Nutrition, Health & Wellness strategy... 5 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 7: Aligned with the Nestlé Roadmap
Aligned with the Nestlé Roadmap Competitive Advantages Operational Growth Pillars Drivers 6 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 8: Aligned with the Nestlé Roadmap
Aligned with the Nestlé Roadmap 60/40+ Nestlé R&D Nestlé Nutrition Nestlé Health Science, Nestlé Institute of Health Sciences Venture Funds M&A: Strategic Cultural Financial 7 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 9: Building on our special commitment to the first 1000 days
Building on our special commitment to the first 1000 days ... 8 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 10: Kurt Schmidt, Global Head Nestlé Nutrition
Kurt Schmidt Global Head Nestlé Nutrition 9 9 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 11: The right start of a consumer journey with Nestlé
The first 1000 days Critical nutritional milestones from conception through infancy Science-based education & services for the right nutritional choices Breastfeeding The best form of nutrition in the first 6 months of life The right start of a consumer journey with Nestlé Start Healthy Stay H
Slide 12: Pfizer Nutrition... Strong fit with Nestlé
Pfizer Nutrition... Strong fit with Nestlé Strategic Cultural Financial 11 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 13: Infant Nutrition
Infant Nutrition Our roots & the core of Nutrition, Health & Wellness Start of a new journey Nestlé & Pfizer Nutrition nurturing a healthier generation Building a strong future on our core passion & roots Nutrition, Health & Wellness 12 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 14: Nestlé & Pfizer Nutrition
Nestlé & Pfizer Nutrition Strong fit in attractive category Infant Nutrition: High value & high growth Nestlé Nutrition: Category pioneer & global leader Pfizer Nutrition: Dynamic & valuable business with exposure in growth markets Strengthened position & a winning combination 13 23rd April, 2
Slide 15: Infant Nutrition is an attractive category
Infant Nutrition is an attractive category Large market: ~USD 30 bn High growth: ~10% p.a. globally Emerging markets: 73% of market, 13% growth p.a. –Increasing births –Increasing affluence –Increasing awareness of benefits of good nutrition –Premiumisation & broader range of product benefits
Slide 16: Infant Nutrition is highly dynamic
Infant Nutrition is highly dynamic (%) Egypt Source: Euromonitor (Milk Formula) 15 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 17: Pfizer Nutrition
Pfizer Nutrition Dynamic player with strong geographic growth profile 85% of sales in emerging markets – Key markets include: China, Philippines, Thailand, Indonesia, Middle East, Mexico Strong reputation & equity with Health Care Professionals High quality brand portfolio with strength in pre
Slide 18: Nestlé & Pfizer Nutrition
Nestlé & Pfizer Nutrition Building on Nestlé’s strong base Nestlé Infant Nutrition today: Global leadership with broad geographic reach Leading global R&D network Strong medical & scientific partnerships Science-based innovation Focused stand-alone organisation 17 23rd April, 2012 Pfizer N
Slide 19: Enhanced presence in dynamic regions
Nestlé Nutrition & Pfizer Nutrition Enhanced presence in dynamic regions Top 10 markets: 9 markets in the world’s top 10 of highest absolute population growth 45%+ of the next 5 years’ category growth will come from China/HK* Nestlé IF & Nestlé IF & GUMs GUMs & Pfizer Nutrition Sales 2011 USD 5b
Slide 20: Complementary benefits & platforms
Complementary benefits & platforms Strength from entry level to super premium Allergy Immune Brain Optimal growth Gut Comfort Picky Eater Prevention Protection Development & Development Enlarged business has a pioneering presence in key benefit platforms Strong presence in premium & super-premiu
Slide 21: Strong cultural fit
Nestlé Nutrition & Pfizer Nutrition Strong cultural fit Combined management teams with sustained, successful track record Leadership teams focused on science-based innovation Consistent focus on compliance, quality & safety; ‘non-negotiable’ Conviction that ‘breast-feeding is best’ Ethical
Slide 22: Summary
Summary A great fit with capabilities & presence to win Enhances strong Nestlé business Positions Nestlé to benefit from population growth Expands our portfolio Leverages R&D: Nestlé’s into Pfizer Nutrition brands; Pfizer Nutrition’s into Nestlé brands Combines strong management teams Be
Slide 23: Wan Ling Martello, Chief Financial Officer
Wan Ling Martello Chief Financial Officer 22 22 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 24: Pfizer Nutrition
Pfizer Nutrition A high quality business Accretive to Nestlé Model Implementing Nestlé acquisition strategy Creating shareholder value over time by enhancing our positions & capabilities to win in the world’s most dynamic markets 23 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 25: Pfizer Nutrition – a high quality business: sales growth
Pfizer Nutrition – a high quality business A track-record of dynamic growth CAGR: +13% Sales 2.4 2.2 1.6 1.9 2009-2012 (USD bn) 2009 2010 2011 2012E 2012E Sales: USD 2.4bn 85% of which in Emerging Markets 2012: Nestlé estimate 24 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 26: Pfizer Nutrition – a high quality business: profitability
Pfizer Nutrition – a high quality business Healthy level of profitability 25% 25% 25% 23% EBITDA & EBITDA margin 0.6 0.5 0.4 0.4 2009-2012 (USD bn) 2009 2010 2011 2012E A proven track-record of profitable growth 2012: Nestlé estimate 25 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 27: Key transaction parameters
Key transaction parameters Acquisition price: USD 11.85 bn Multiple (EV/EBITDA 2012E): 19.8x 15.6x post run rate synergies Full year cost synergies: USD 160 mn Financing: Cash & additional debt, strong balance sheet maintained Closing subject to regulatory approvals 2012: Nestlé estimate 2
Slide 28: Pfizer Nutrition accretive to the Nestlé Model
Pfizer Nutrition accretive to the Nestlé Model Organic Growth: Above Group’s 5-6% OG guidance Margin: Immediate EPS: First full year Capital Efficiencies: ROIC to exceed cost of capital in year 4 to 5 27 23rd April, 2012 Pfizer Nutrition Acquisition
Slide 29: Implementing Nestlé's acquisition strategy
Implementing Nestlé’s acquisition strategy To be a category leader 9 Leading positions globally Focused approach on value-added Strategic growth categories 9 Category growing at 10% High quality brands, strong market Strong brands in leadership positions 9 positions High degree of certainty of Opera
Slide 30: Closing statement on Nestlé's promise
... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading Nutrition, Health and Wellness Company 29 23rd April, 2012 Pfizer Nutrition Acquisition