Nestle S.a. · SIX:NESN
Nestle — New York Press Conference 2010
76 slides from Nestle's conference presentation, Oct 22, 2010
Slide 1: Welcome to the New York Press Conference
Welcome to the New York Press Conference
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 Officer
New York Press Conference Paul Bulcke Chief Executive Officer Nestlé S.A.
Slide 4: Joining us today
Joining us today Jim Singh Luis Cantarell Brad Alford Kurt Schmidt Kim Jeffery Jorge Sadurni Pat McGinnis 3 October 22, 2010 New York Press Conference
Slide 5: Jim Singh, Chief Financial Officer
New York Press Conference Jim Singh Chief Financial Officer
Slide 6: Introduction
Introduction Nestlé growth momentum continued Group and F&B organic growth unchanged from H1 A broad-based top line performance All geographies & global businesses All product groups contribute All growth pillars advancing General economic conditions: mixed, outlook unclear F&B guidance unchanged Or
Slide 7: Key elements of sales
Key elements of sales Total Group Food & Beverages CHF 82.8 bn CHF 77.0 bn + 6.1% + 5.7% + 4.5% RIG + 4.2% Organic Organic Growth Growth + 1.5% + 1.6% Pricing + 1.6% + 0.7% Acq./Div. - 2.8% - 2.7% Exchange Rates OG = Organic Growth RIG = Real Internal Growth 6 October 22, 2010 New York Press Confere
Slide 8: Total F&B: A strong broad-based performance globally
Total F&B: A strong broad-based performance globally Positive RIG/OG in all regions: A broad-based % Organic Growth % RIG performance in developed & emerging markets 10.7 Americas: momentum maintained 9.0 Positive RIG in developed markets Europe: Positive RIG in developed markets 5.5 AOA: Emerging m
Slide 9: Product segments: Powdered & Liquid Beverages
Product segments: Powdered & Liquid Beverages % Organic Growth % RIG 8.0 6.3 Powdered & Liquid Beverages Sales CHF bn 15.0 8 October 22, 2010 New York Press Conference
Slide 10: Product segments: Waters
Product segments: Waters % Organic Growth % RIG 4.3 4.6 Water Sales CHF bn 7.3 9 October 22, 2010 New York Press Conference
Slide 11: Product segments: Milk Products & Ice cream
Product segments: Milk Products & Ice cream % Organic Growth % RIG 6.1 3.8 Milk Products & Ice cream Sales CHF bn 15.5 10 October 22, 2010 New York Press Conference
Slide 12: Product segments: Nutrition
Product segments: Nutrition % Organic Growth % RIG 6.8 5.9 Nutrition Sales CHF bn 7.8 11 October 22, 2010 New York Press Conference
Slide 13: Product segments: Prepared dishes & Cooking Aids
Product segments: Prepared dishes & Cooking Aids % Organic Growth % RIG 3.5 2.9 Prepared Dishes & Cooking Aids Sales CHF bn 13.2 12 October 22, 2010 New York Press Conference
Slide 14: Product segments: Confectionery
Product segments: Confectionery % Organic Growth % RIG 7.4 3.7 Confectionery Sales CHF bn 8.5 13 October 22, 2010 New York Press Conference
Slide 15: Product segments: PetCare
Product segments: PetCare % Organic Growth % RIG 4.0 2.6 PetCare Sales CHF bn 9.7 14 October 22, 2010 New York Press Conference
Slide 16: Product segments: Summary
Product segments: Summary % Organic Growth % RIG 10.6 8.9 8.0 7.4 6.3 6.1 6.8 5.9 4.3 4.6 4.0 3.8 3.5 3.7 2.9 2.6 Powdered Water Milk Nutrition Prepared Confectionery PetCare Pharma & Liquid Products & Dishes & Beverages Ice cream Cooking Aids Sales CHF bn 15.0 7.2 15.5 7.8 13.2 8.5 9.7 5.7 15 Octob
Slide 17: Paul Bulcke, Chief Executive Officer
New York Press Conference Paul Bulcke Chief Executive Officer Nestlé S.A.
Slide 18: Nestlé's objective
Nestlé’s objective is to be the recognized leader in Nutrition, Health and Wellness, and the industry reference for financial performance 17 October 22, 2010 New York Press Conference
Slide 19: Captures the very essence of Nestlé
... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading Nutrition, Health and Wellness Company 18 October 22, 2010 New York Press Conference
Slide 20: Treatment
Treatment 19 October 22, 2010 New York Press Conference
Slide 21: Nestlé Roadmap
Nestlé Roadmap Competitive advantages Operational Growth pillars drivers 20 October 22, 2010 New York Press Conference
Slide 22: Competitive advantages
Competitive advantages 21 October 22, 2010 New York Press Conference
Slide 23: Growth drivers
Growth drivers 22 October 22, 2010 New York Press Conference
Slide 24: Operational pillars
Operational pillars 23 October 22, 2010 New York Press Conference
Slide 25: Nestlé Roadmap
Nestlé Roadmap Competitive advantages Operational Growth pillars drivers 24 October 22, 2010 New York Press Conference
Slide 26: Creating Shared Value
Creating Shared Value Businesses can only be successful in long term by creating value for shareholders and society Nutrition Water Rural Development 25 October 22, 2010 New York Press Conference
Slide 27: Nestlé – The Company
Nestlé – The Company Top bottom line performance Emerging developed markets Modern traditional trade Premium value-priced … … 26 October 22, 2010 New York Press Conference
Slide 28: Luis Cantarell, Head of Zone Americas
New York Press Conference Luis Cantarell Head of Zone Americas
Slide 29: Nestlé in the U.S.
Nestlé in the U.S. excluding Alcon 2000 2005 2009 NPS: $9.9 Billion NPS: $18.3 Billion NPS: $25.4 Billion % of Group Sales: 20.5% % of Group Sales: 25.0% % of Group Sales: 25.6% F&B Ranking: N/A F&B Ranking: #4 F&B Ranking: #2 # of Factories: 54 # of Factories: 68 # of Factories: 78 # of Employees:
Slide 30: Nestlé in the U.S.
Nestlé in the U.S. Nestlé companies in the U.S. operate in more than 120 locations and employ over 51,000 people. 29 October 22, 2010 New York Press Conference
Slide 31: Nestlé in the U.S.
Nestlé in the U.S. Nestlé companies in the U.S. operate in more than 120 locations and employ over 51,000 people. 30 October 22, 2010 New York Press Conference
Slide 32: Nestlé in the U.S.
Nestlé in the U.S. Nestlé companies in the U.S. operate in more than 120 locations and employ over 51,000 people. 31 October 22, 2010 New York Press Conference
Slide 33: Nestlé in the U.S.
Nestlé in the U.S. Nestlé companies in the U.S. operate in more than 120 locations and employ over 51,000 people. 32 October 22, 2010 New York Press Conference
Slide 34: Nestlé in the U.S.
Nestlé in the U.S. Nestlé companies in the U.S. operate in more than 120 locations and employ over 51,000 people. 33 October 22, 2010 New York Press Conference
Slide 35: Nestlé in the U.S. Operating Model
Nestlé in the U.S. Operating Model Combining Effectiveness with Efficiency Nutrition, Health and Nutrition Wellness U.S. Operational Innovation/ efficiency Renovation 5 Operating Companies driving focus and leveraging scale 34 October 22, 2010 New York Press Conference
Slide 36: Brad Alford, Chairman & CEO Nestlé USA
New York Press Conference Brad Alford Chairman & CEO Nestlé USA
Slide 37: Importance to our consumer
Importance to our consumer Offering you tastier and healthier choices to embrace a healthier life. 36 October 22, 2010 New York Press Conference
Slide 38: We are uniquely positioned
We are uniquely positioned We provide options for… Every part of your day Every day of your life Everyone in your life 37 October 22, 2010 New York Press Conference
Slide 39: Our U.S. portfolio is positioned to deliver Good Food, Good Life
Our U.S. portfolio is positioned to deliver Good Food, Good Life …as we compete across multiple consumer usage occasions Food Prepared at Home Food Away from Home Beverages Indulgence & Snacking Infant Nutrition Specialty Nutrition PetCare 38 October 22, 2010 New York Press Conference
Slide 40: Nestlé USA product portfolio has three strategic focuses
Nestlé USA product portfolio has three strategic focuses Food Prepared at Home Beverage Indulgence & Snacking 12 of these Brands, representing 70% of sales, are #1or #2 in Market Share 39 October 22, 2010 New York Press Conference
Slide 41: Nestlé USA product portfolio has three strategic focuses
Nestlé USA product portfolio has three strategic focuses Food Prepared at Home Beverage Indulgence & Snacking 12 of these4 Brands, of theserepresenting Brands are Billionaire Brands 70% of sales, arejust #1orin#2 theinU.S. Market Share 40 October 22, 2010 New York Press Conference
Slide 42: What we're doing with this portfolio to continue to win
What we’re doing with this portfolio to continue to win in the future Executing on our Creating promise to deliver operational gaps good food, good life versus competition on all our products 41 October 22, 2010 New York Press Conference
Slide 43: Nutrition, Health and Wellness: three dimensions
Nutrition, Health and Wellness: three dimensions 42 October 22, 2010 New York Press Conference
Slide 44: Executing on our promise to deliver Good Food, Good Life
Executing on our promise to deliver Good Food, Good Life on all our products 43 October 22, 2010 New York Press Conference
Slide 45: Creating operational gaps vs. competition
Creating operational gaps vs. competition Building competitive Accelerating frozen advantages in route category leadership to market Frozen DSD system Lead consumer needs by innovating (Pizza acquisition) better than competition through focused R&D Beverage RTD that delivers aseptic technology Creat
Slide 46: Kurt Schmidt, President & CEO Nestlé Nutrition North America
New York Press Conference Kurt Schmidt President & CEO Nestlé Nutrition North America
Slide 47: Nestlé Nutrition USA history of growth
Nestlé Nutrition USA history of growth (approximate figures, all millions) 300 Sales 3.300 1.400 Growth 500 400 700 2005 Double EBIT Margin Today (pre-acquisition) 46 October 22, 2010 New York Press Conference
Slide 48: Nestlé HealthCare Nutrition (HCN)
Nestlé HealthCare Nutrition (HCN) Overview Transform vulnerable lives By elevating the role of nutrition in improving patient outcomes Aging Care Pediatric Care Critical Care/GI Obesity & Surgery Help patients to Help our most recover, stay mobile and vulnerable & young Nutrition to accelerate Medic
Slide 49: Jenny Craig Model
Jenny Craig Model Nutrition, Health and Wellness Phone Food Body Eat healthy get active before after Mind Centre Stay motivated Celebrity testimonials Individualized consultation 48 October 22, 2010 New York Press Conference
Slide 50: Nestlé and Gerber
Nestlé and Gerber Combine to create a formidable partnership Henri Nestlé Dan & Dorothy Gerber + Over a century of scientific innovation 82-yr old ICONIC US brand in early childhood nutrition that stands for happy, healthy babies The making of a leader in childhood nutrition 49 October 22, 2010 New
Slide 51: Nestlé Infant Nutrition
Nestlé Infant Nutrition Provides solutions for a health crisis affecting U.S. children The U.S. has a serious health crisis, even among young children: Obesity rates have nearly 10% obese at age 2-5 doubled in past 3-4 decades 20% obese at age 6-11 Type 2 diabetes is increasingly reported among chil
Slide 52: Start Healthy, Stay Healthy
Start Healthy, Stay Healthy™ Gerber’s mission to improve children’s nutrition Science Developing the latest, science on infant and toddler feeding Product Innovation Education Using research to develop Translating scientific data healthy foods that fit into the into practical advice lifestyle of act
Slide 53: Science, Innovation, Education
Science ● Innovation ● Education 52 October 22, 2010 New York Press Conference
Slide 54: Kim Jeffery, President and CEO Nestlé Waters North America
New York Press Conference Kim Jeffery President and CEO Nestlé Waters North America
Slide 55: Bottled water category volume trends
YTD +6.6% vs YA 4 WE 09/04/10 4 WE 08/07/10 4 WE 07/10/10 4 WE 06/12/10 4 WE 05/15/10 Food, Pharmacy & Mass x Wal-Mart, C-Store Channels 4 WE 04/17/10 4 WE 03/20/10 2010 4 WE 02/20/10 4 WE 01/23/10 Total BW Category Trend Food, Pharmacy, Mass (x Walmart), C-Store channels 4 WE 12/26/09 rebounding fr
Slide 56: Optimistic about bottled water future
Optimistic about bottled water future Health & Wellness Trends On-The-Go Lifestyle Municipal Water Infrastructure Issues Per Capita Consumption Decline of Sugared Beverages 55 October 22, 2010 New York Press Conference
Slide 57: Tremendous potential for U.S. bottled water consumption
Tremendous potential for U.S. bottled water consumption Total BW vs. Carbonated Soft Drinks Liters per Capita - 2009 99.3 56 October 22, 2010 New York Press Conference
Slide 58: Powerful and low cost route to market
Powerful and low cost route to market Over $1 less per 12L case less than traditional direct store delivery (DSD) distribution system NWNA Factory Preforms Bottles Bottles Full trucks direct to customer made blown filled/packed warehouses or stores Bottles produced Trucked to Shipped bottling plants
Slide 59: NWNA reaches consumers whenever, wherever, however
NWNA reaches consumers whenever, wherever, however they are drinking beverages #1 volume warehouse NWNA delivery CPG company 695,000 truckloads Supermarket Supermarket Direct Direct Military Military Vend Vend Wholesale Wholesale Supermarket Supermarket Wholesale Wholesale C-Store C-Store Wholesale
Slide 60: Broad brand portfolio positioned to lead bottled water
Broad brand portfolio positioned to lead the bottled water category Selling Nestlé Good Food, Good Life Nestlé Pure Life: Healthy Family Hydration Super “Health and Wellness” Premium Premium Regional Brands Popular Spring & Sparkling Value National Brand Nestlé Pure LIfe 59 October 22, 2010 New York
Slide 61: Nestlé Pure Life is the #1 bottled water in USA
Nestlé Pure Life is the #1 bottled water in USA U.S. Convenience serve gallon trends All outlets Gallons M Nestlé brand #1 impressions of 8 billion NPL Aquafina Dasani Source: Beverage Marketing Corp. of New York 60 October 22, 2010 New York Press Conference
Slide 62: Summary
Summary Bottled water category growing again in 2010; second fastest growth among beverages. Per capita consumption of sweetened caloric beverages will continue to decline. Bright future for bottled water based on social trends and for NWNA by leveraging our business model. 61 October 22, 2010 New Y
Slide 63: Jorge Sadurni, President & CEO Nestlé Professional North America
New York Press Conference Jorge Sadurni President & CEO Nestlé Professional North America 62
Slide 64: U.S. Out-of-Home is a highly attractive market
U.S. Out-of-Home is a highly attractive market Largest & most developed Half of all food dollars (48%) out-of-home market in the world are spent out-of-home USA $550 Billion U.S. is the most important market for Global trends in out-of-home Home of global restaurant chains generally start in the U.S
Slide 65: Key growth driver in Culinary Business
Key growth driver in Culinary Business Nestlé Professional Customer Innovation Campus Establish strategic partnerships through innovation with key national accounts. NPCIC has generated sales of $100+ million since its 2008 opening. Focus on Nutrition, Health & Wellness. 64 October 22, 2010 New York
Slide 66: Key growth driver in Beverage Business
Key growth driver in Beverage Business The 2010 launch of a unique competitive force in the industry Powerful and efficient Full cold beverage portfolio Full hot beverage portfolio Sales & Service network 65 October 22, 2010 New York Press Conference
Slide 67: W. P. McGinnis, President & CEO Nestlé Purina PetCare
New York Press Conference W. P. McGinnis President & CEO Nestlé Purina PetCare Company
Slide 68: NPPC vision: a checkerboard in every pet owner's home
NPPC vision: a checkerboard in every involved pet owner’s home 67 October 22, 2010 New York Press Conference
Slide 69: NPPC – a growth company
NPPC – a growth company NPPC #1 PetCare Company in North America #1 or #2 in every category – dry dog, wet dog, dry cat, wet cat, total snacks and litter Growth business in a mature market 33.0 Market Share (+2.0 points over past 3 years) Only N.A. PetCare manufacturer to grow dollar share in 2010 N
Slide 70: Innovation & Renovation platform drives growth
Innovation & Renovation platform is a critical component of our growth over the past 5 years Annual Goal: Generate more than $1 billion in Innovation & Renovation $7.0 $6.5 $5.7 $5.3 $4.9 $4.6 $ Billions $727 $909 $1,220 $1,170 $1,250 $1,427 16% 2004 19% 2005 2006 200720% 200819% 200921% Sales Innov
Slide 71: Broad-based innovation drives premiumization
Broad-based innovation drives premiumization 70 October 22, 2010 New York Press Conference
Slide 72: New in 2011: Purina ONE Beyond
New in 2011: Purina ONE BeyOnd Beyond will drive Purina ONE by bringing a new perspective to the brand and introducing a new group of consumers to the Purina ONE portfolio. 71 October 22, 2010 New York Press Conference
Slide 73: Waggin' Train acquisition
Waggin’ Train acquisition Acquired Waggin’ Train LLC September 17, 2010 Leading marketer of premium, meat-based dog treats in U.S. Fastest-growing, leading brand in the dog snacks segment with ~30% growth past 3 years Has 3 of the top 5 SKUs in the real meat dog treat sub-segment Waggin’ Train fills
Slide 74: Summary
Summary NPPC North America is a growth business in a mature market. Our brands and our category have been very resilient during the economic downturn. Innovation & Renovation continue to drive the category and Purina’s market share growth. Focus on Consumer Insights, strategic acquisition and new pr
Slide 75: Paul Bulcke, Chief Executive Officer
New York Press Conference Paul Bulcke Chief Executive Officer Nestlé S.A.
Slide 76: Discussion
New York Press Conference Discussion