Slide 1: Full-year results 2022
Full-year results 2022
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: Full-year results 2022 – Mark Schneider, CEO
Full-year results 2022 Mark Schneider, CEO
Slide 4: Key messages
Key messages Resilient financial performance • Strong organic sales growth of 8.3%, led by pricing with slightly positive RIG • Underlying trading operating profit margin decreased by 30 bps to 17.1%, reflecting significant cost inflation, partially mitigated by cost efficiencies and growth leverage
Slide 5: 2022 achievements
2022 achievements Categories, regions and channels • PetCare: +14.5% • Coffee: resilient at +8.1%, with Starbucks +CHF 1.5 bn incremental sales since 2018 • Emerging markets: +10.0%, supported by growth in affordable offerings • Out-of-home channels: +23.5% Fixing underperforming businesses • China
Slide 6: Good for You: continued progress on nutrition
Good for You: continued progress on nutrition • Continuing our journey to reduce sodium, sugar and saturated fats • Targeting continued growth in plant-based food & beverages • Empowering consumers to make more informed decisions on food and diet choices • Delivering on our transparency and responsi
Slide 7: Good for the Planet: progress on greenhouse gas reduction
Good for the Planet: progress on greenhouse gas reduction Picture to be • Peak carbon is added behind us • Greenhouse gas emissions now below 2018 level • On track to deliver 20% carbon emission reduction by 2025 vs. 2018 level • Significant reduction expected in 2023 as we reap the benefit of inves
Slide 8: Key focus areas for 2023
Key focus areas for 2023 Strategic • Accelerate portfolio optimization • Drive faster, relevant, impactful innovation • Lead on climate, sustainability and nutrition agendas Operational • Protect volume growth • Drive cost efficiencies • Step-up marketing investments Financial • Restore gross margin
Slide 9: Accelerating portfolio optimization
Accelerating portfolio optimization Strong delivery to date - expanding scope of portfolio optimization beyond SKUs to brands, segments and geographies Freeing up resources via Re-allocating resources toward SKU optimization and portfolio pruning high-growth, high-margin products Select dairy SKUs F
Slide 10: 2023 guidance
2023 guidance • Organic sales growth between 6% and 8% • Underlying trading operating profit margin between 17.0% and 17.5% • Underlying earnings per share growth in constant currency between 6% and 10% 10 February 16, 2023 Nestlé full-year results 2022
Slide 11: Full-year results 2022 – François-Xavier Roger, CFO
Full-year results 2022 François-Xavier Roger, CFO
Slide 12: Resilient financial performance
Resilient financial performance Organic Underlying Underlying growth TOP margin* EPS growth (in constant currency) 17.1% +8.3% +9.4% -30 bps * Underlying TOP margin as reported 12 February 16, 2023 Nestlé full-year results 2022
Slide 13: Full-year sales growth
Full-year sales growth OG +8.3% +1.1% -0.9% 94.4 +8.2% +0.1% 87.1 Reported sales growth +8.4% -30 FY-2022 sales RIG Pricing Net M&A Foreign FY-2022 sales CHF bn exchange CHF bn RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign excha
Slide 14: Broad-based growth across geographies
Broad-based growth across geographies Sales split 2022 organic sales growth North Europe America 24% 13.4% 35% Greater China 9.4% 6% Nestlé Group 7.7% avg. 8.3% 5.6% Latin AOA 4.4% America 13% 22% North Europe Asia Latin Greater America Oceania America China Africa Each geography includes zones, Nes
Slide 15: Strong growth across developed and emerging markets
Strong growth across developed and emerging markets Sales split (in CHF) 2022 organic sales growth Developed Emerging 58% 42% 10.0% 7.1% Developed Emerging 15 February 16, 2023 Nestlé full-year results 2022
Slide 16: Sustained momentum in retail and out-of-home channels
Sustained momentum in retail and out-of-home channels Organic sales growth % Retail Out-of-home* 2019 2020 2021 2022 2019 2020 2021 2022 7.0% 7.2% 6.4% 24.5% 23.5% 3.4% 4.0% -30.4% * Includes Nestlé Professional, foodservice activities of Nespresso, Starbucks products and water, travel retail and Bl
Slide 17: Strong growth across most categories
Strong growth across most categories 2022 sales split 2022 organic sales growth Water 4% 14.5% Confectionery 9% Powdered & liquid beverages 11.0% 27% 9.4% Milk products 8.0% & Ice cream 7.4% 12% 5.4% 3.1% Prepared dishes & cooking aids PetCare Powdered PetCare Nutrition Prepared Milk products Confec
Slide 18: Inflation more than offset pricing, growth leverage and efficiencies
Inflation more than offset pricing, growth leverage and efficiencies 17.X% 17.2% 17.4% 17.4% 17.1% 17.1% -260 bps +210 bps +20 bps Margin -30 bps on a reported basis and -40 bps in constant currency Underlying TOP Gross Distribution Administration, Underlying TOP FY-2021 margin* marketing, FY-2022 R
Slide 19: Sustaining strong operating cash flow generation
Sustaining strong operating cash flow generation Cash flow as % sales Cash generated from operations 20.1% 20.1% 20.1% 20.0% 19.3% 19.5% 12.9% 12.1% 11.8% 10.4% 10.0% Impacted by decision to Free cash flow temporarily increase 7.0% inventories and high capex level 2017 2018 2019 2020 2021 2022 Cash
Slide 20: 28th consecutive dividend increase in CHF
28th consecutive dividend increase in CHF 3.50 CHF Proposed CHF 2.95 3.00 2.50 2.00 1.50 1.00 0.50 0.20 0.00 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 20 February 16, 2023 Nestlé full-year results 2022
Slide 21: Full-year results 2022 Q&A
Full-year results 2022 Q&A 21 February 16, 2023 Nestlé full-year results 2022
Slide 22: Thank you!
Thank you! 22 February 16, 2023 Nestlé full-year results 2022