Slide 1: Nestlé's long-term strategy: Good for You, Good for the Planet
Nestlé’s long-term strategy: Good for You, Good for the Planet Mark Schneider Chief Executive Officer
Slide 2: Our business is global, balanced and diversified
Our business is global, balanced and diversified 2022 sales of CHF 94.4 bn, with an underlying TOP margin of 17.1% Where we sell Europe What we sell 24% Beverages PetCare Nutrition & Prepared dishes (incl. coffee) Health Science & cooking aids North America 35% 27% 19% 17% 13% Greater China 6% Milk
Slide 3: Our strategy
Our strategy Food and beverages are core, including Nestlé Health Science and nutritional health products as an additional growth platform • Meet needs of modern time-constrained consumers with healthy, delicious, convenient products • Bring differentiated, premium innovations to market fast • Offer
Slide 4: Key strategic directions shaping our portfolio in the 2020s
Key strategic directions shaping our portfolio in the 2020s Good for You Good for the Planet 4 November 15, 2023 CECP
Slide 5: Bringing tasty, balanced diets within reach for billions
Bringing tasty, balanced diets within reach for billions Transparent reporting & support for balanced diets Healthy aging and longevity Active lifestyle support Nutritional balance Preventative health GUIDE people to enjoy more nutritious GROW ≥ HSR 3.5 & Specialized Nutrition by foods & indulgent f
Slide 6: Enhancing supply chain resilience & consumer relevance
Enhancing supply chain resilience & consumer relevance Climate action: net zero by Packaging: 30% reduction in Supply chain: 100% 2050 virgin plastic by 2025 deforestation-free by 2025 • Beyond peak carbon • Beyond peak virgin plastic • 99.1% deforestation-free in primary meat, palm oil, pulp & pape
Slide 7: Delivering carbon reductions & supporting longer-term transformation
Delivering carbon reductions & supporting longer-term transformation Scope 1: Direct operations Scope 2: Indirect operations Scope 3: Value chain Investing in factory modernization Switching to renewables electricity Supporting farmer adaptation Rice husk biomass boiler Ganado solar project Drought
Slide 8: Supporting the transition to regenerative agriculture
Supporting the transition to regenerative agriculture Biodiversity Soil Increase plant and animal biodiversity Scale up farming practices that protect soil above and below the ground. health and increase soil organic matter. Farmers Water Livestock Reduce chemical farm inputs, optimize Integrate liv
Slide 9: Strengthening brand and product differentiation via sustainability
Strengthening brand and product differentiation via sustainability Climate action Human rights Regenerative agriculture 9 November 15, 2023 CECP
Slide 10: How climate action is integrated into Nestlé long-term strategy
How climate action is integrated into Nestlé long-term strategy Operating model: evolving the Virtuous Circle Financial performance drivers and metrics Integrated sustainability performance drivers and metrics Structural cost control Consumer relevant innovation Sustainability investment Brands with
Slide 11: How climate action is integrated into Nestlé long-term strategy
How climate action is integrated into Nestlé long-term strategy Governance: integrating sustainability-linked KPIs at multiple levels of the business Sustainability committee ESG council Creating Shared Value council • Board of Director level • Executive Board members • External advisor panel • Crea
Slide 12: A Board of Directors with diverse and relevant experience
A Board of Directors with diverse and relevant experience Year Nationality Public Int’l Business FMCG Retail / Brand Financial Technology Gov’t /NGO Sustainability added Company / Marketing / M&A CEO / CFO Paul Bulcke 2008 Belgian / Swiss ✓ ✓ ✓ ✓ ✓ Mark Schneider 2017 American / German ✓ ✓ ✓ ✓ ✓ Hen
Slide 13: Consistent and dependable shareholder returns
Consistent and dependable shareholder returns Outperforming Global STOXX 28 years of consecutive CHF 181.3 bn returned to 1800 F&B Net Return Index over dividend increases shareholders over last 15 years long-time horizons CHF CHF 99.0 bn 2.95 Share buybacks 3.00 1 year 3 years 5 years 10 years Nest
Slide 14: Our value creation model and 2025 targets
Our value creation model and 2025 targets Operating performance Sustainable organic Underlying Annual underlying EPS Free Cash Flow sales growth TOP margin growth trending toward 12% mid single-digit 17.5 -18.5% 6 - 10% of sales Capital discipline Working capital Capex ROIC 0% of sales ~ 5% of sales
Slide 15: Nestlé: a dependable company
Nestlé: a dependable company Unlocking the power of food Making the greatest difference to the lives of people and pets… Protecting and enhancing the environment… Generating significant value for our shareholders and other stakeholders alike 15 November 15, 2023 CECP
Slide 16: Thank you
Thank you 16 November 15, 2023 CECP