Nestle India Ltd. · NSE:NESTLEIND
Nestle India — FY2021 Earnings Presentation
30 slides from Nestle India's earnings presentation, Feb 17, 2022
Slide 1: Determined to Keep Strong - Nestlé India Full Year Earnings Call
Determined to Keep Strong Nestlé India Full Year Earnings Call 17 February 2022
Slide 2: Disclaimers
Disclaimers • Except for the historical financial information contained herein, this presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements. You are cautioned not to place undue reliance on these forward-looking
Slide 3: Agenda
Agenda 16:00 - 16:20 Determined to Keep Strong Suresh Narayanan 16:20 - 16:45 Q&A Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference
Slide 4: Determined to Keep Strong
Determined to Keep Strong By Suresh Narayanan Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference
Slide 5: Key Takeaways Last Time
Key Takeaways Last Time Unwavering Leveraging the Strive to Commitment RURBAN continue robust to India opportunities business model Sustainability Caring for A Vibrant across our Communities a Workplace fit Operations way of life for the future Nestle India Full Year Earnings Call, 17th Feb 2022 Ima
Slide 6: Insights into a dynamic and resilient organization
Insights into a dynamic and resilient organization FY21 Results, Q421, Reimagining Digital and and Underlying Sustainability retirement benefits Analytics Journey Performance Nestle India Full Year Earnings Call, 17th Feb 2022 Images used as reference
Slide 7: Key Highlights: Strong growth continues; Profit from operations improved
Key Highlights: Strong growth continues; FY 2021 Profit from operations improved Total Sales Profit from Operations# Net Profit Earnings PerPer Earnings Share (EPS) Share 170 Growth 50 0.3 300 Growth 22.2% 50.0 21.7% 3.0%/11.5%* 10.1% 15.9%* 29 280 30.0 45 150 0.2 260 14.7% 10.0 15.7% 27 40 241* 240
Slide 8: Key Highlights: Robust growth continues; Profit from operations improved
Key Highlights: Robust growth continues; Oct-Dec Q4 2021 Profit from operations improved 2021 Total Sales Profit from Operations# Net Profit Earnings Per Share Growth 60 75 20 21.1% 40.0 20.0% -20.0%/16.6%* 14 18 65 50 Growth 0.2 15.2%* 16 20.0 8.4% 12 55 14.1% 10.4% 58* 14 40 - Growth 45 0.2 10 12
Slide 9: Sustained Volume & Mix Led Growth
Sustained Volume & Mix Led Growth 600 600 40.0 12.5 8.4 11.6 9.6 9.6 25.0 5.7 35.0 500 500 30.0 25.0 (2 5.0) 400 400 CAGR 20.0 300 (7 5.0) 2016-21 300 13.0 15.0 9.1 8.9 8.0 10.0 200 10.5% 200 5.0 (1 25.0) - 100 100 (5 .0) 343 382 424 457 468 520 128 129 136 127 - (1 75.0) - (1 0.0) 2016 2017 2018 #
Slide 10: Leading to Strong Value Growth
Leading to Strong Value Growth 150 16.9 8.2 10.9 10.9 8.5 10.7 130 5.0 130 110 (2 5.0) 110 CAGR 90 (5 5.0) 20.0 90 2016-21 13.7 70 (8 5.0) 70 10.2 10.1 9.2 50 (1 15.0) 10.4% 50 30 (1 45.0) 30 88 95 105 117 126 140 34 33 37 36 10 (1 75.0) 10 (1 0.0) 2016 2017 2018 # 2019 2020 2021 Q1-21 Q2-21 Q3-21 Q
Slide 11: Growth by Town Class: Strong and Sustained
Growth by Town Class: Strong and Sustained Mega City Metro 120 40.0 30.0 26.8 110 13.6 100 19.5 7.7 9.9 8.7 15.4 16.1 8.3 7.5 20.0 10.0 80 5.1 6.3 (9.8) (5.9) (7.1) (6.3) 90 (10.0) 60 - 40 70 (20.0) (30.0) 20 100 83 92 89 94 91 100 101 100 86 102 102 108 103 109 108 50 (50.0) - (40.0) Q1'20 Q2'20 Q3
Slide 12: Accelerated Profit from Operations
Accelerated Profit from Operations 40.0 24.0 52 21.7 22.2 52 35.0 21.0 21.1 22.0 42 42 20.0 30.0 18.1 17.6 18.0 CAGR 2016-21 32 32 23.3 25.0 22.2 22.3 16.0 21.1 16.0% 22 22 20.0 14.0 12 12 15.0 12.0 17 18 24 26 29 33 8 8 9 8 2 10.0 2 10.0 # 2016 2017 2018 2019 2020 2021 Q1-21 Q2-21 Q3-21 Q4-21 Profi
Slide 13: And Accelerated Net Profit
And Accelerated Net Profit 50 Net Profit for 2021 25.0 4040 Net Profit for Quarter- 25.0 25.0 reduced by 4 reduced by 45 Exceptional Item Exceptional Item (Transition cost for 3535 (Transition cost for Pension Plan) Pension Plan) 40 20.0 20.0 20.0 3030 16.7 35 16.0 15.7 15.9 15.6 16.0 15.2 14.3 2525
Slide 14: Domestic Sales: Broad Based Performance Across All Product Groups
Domestic Sales: Broad Based FY Performance Across All Product Groups 2021 Milk Products and Prepared dishes Powdered and Confectionery Nutrition and cooking aids liquid beverages 42.4% 2.6%* 31.8% 16.7% 14.8% 20.4% 11.0% 16.1% Contribution Growth Contribution Growth Contribution Growth Contribution
Slide 15: Innovation Continues as a Priority
Innovation Continues as a Priority 10,0 00 6.0 9,00 0 4.9 8,00 0 4.4 4.3 5.0 7,00 0 4.0 6,00 0 3.4 2.7 3.0 Over 100 5,00 0 new 4,00 0 1.5 2.0 products 3,00 0 2,00 0 1.0 in last 5 1,00 0 years - - 2016 2017 2018 2019 2020 2021 NPDI Sales (Mio) % Contribution to domestic sales ~ 20 new Projects # in P
Slide 16: Thereby, Creating Significant Value for Investors
Thereby, Creating Significant Value for Investors Total Shareholders Return 3,638% Market Capitalization INR Up 38.2 times vs. FMCG Benchmark 1,900 Annualized Return Index 14.7 times Bn 19.8% INR 50 Bn 2001 USD 1.1 Bn (1 USD= INR 47.2) 2021* USD 25.6 Bn *As at 31st Dec 2021 INR Billion is INR 100 cr
Slide 17: Storm Clouds on the Horizon – Global Commodity Prices
Storm Clouds on the Horizon – Global Commodity Prices Arabica Robusta Edible Sugar Wheat SMP Fresh Brent Aluminium Tinplate Plastic Paper Glass Coffee Coffee Oil Flour Milk Crude -PP Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference
Slide 18: Reimagining Retirement Benefits
Reimagining Retirement Benefits Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference
Slide 19: The Future Ready Plan
The Future Benefits to Employees Ready Plan ✓ Security: fully funded plan managed by financial experts ✓ Portability: fully portable benefits irrespective of age and service ✓ Flexibility: choice of annuity products basis financial needs Earlier Pension ‘Future Ready Plan’ Plan ✓ Aligned to market ✓
Slide 20: Transforming ourselves with Digital and Analytics
Transforming ourselves with Digital and Analytics Nestle India Full Year Earnings Call, 17th Feb 2022
Slide 21: Multi-Intelligent Data Analytics System
Multi-Intelligent Data Analytics System - Data-Fed, Analytics- Led, Future Ready Platform for Business Interventions Enterprise-wide Data Cockpits for Business Advanced Analytical warehouse Management Models Retailer Dynamic Segmentatio Brand Sales Supply Forecast Review Planning Chain n Planning Gr
Slide 22: Granular Clusters – Leveraging the geographic dispersion within India
Granular Clusters – Leveraging the geographic dispersion within India Harnessing granular Big data Analytics Mapping potential of data lakes geo-targeted clusters Income 6260 UA towns Consumption 555K+ Villages Savings/ (100+ population) investments Infrastructure Media exposure map is not to scale
Slide 23: Market Mix Modelling: Tangled web of marketing activity data unraveled
Market Mix Modelling: Tangled web of marketing activity data unraveled Digital Optimize media Trade paid 01 investments Digital Better leverage Base 02 earned trade assets Digital Build long term 03 owned equity TV Augment portfolio 04 strategy Print Tactical growth Outdoor 05 PR driver format Nestl
Slide 24: You Can Always Ask Nestlé
You Can Always Ask Nestlé Brought alive Nestlé corporates Authentic, Relevant, Applicable Built positive inclination towards brands and stronger trust credentials via a service Tools & Trackers and Regional business connect with focus on first party data for a ecosystem Content cookie less future Al
Slide 25: Pictures taken pre-pandemic
pictures taken pre-pandemic Nestle India Full Year Earnings Call, 17th Feb 2022
Slide 26: NESCAFÉ Plan – 3 Pillars
NESCAFÉ Plan – 3 Pillars Launched in 2012 with a demo farm and training center at Kushalnagar Farmers Community Planet To exert a positive and The resilience and The sustainable sustainable change in the prosperity of farming management of livelihood of coffee communities and the landscapes linked t
Slide 27: The NESCAFÉ Plan
The NESCAFÉ Plan pictures taken pre-pandemic Improving livelihoods Responsible Sourcing Environmental Impact ✓ Better varieties – Trials under ✓ Traceability and the ✓ Soil test and fertilizer Coffee board transparency - Where is it recommendation ✓ Yield improvement through coming from and how is i
Slide 28: Sustainability in Coffee Procurement
Sustainability in Coffee Procurement 2012 3 4400 30%+ NESCAFÉ Plan States covered Farmers connect of coffee sourced POURING Launched sustainably RESPECT FOR THE LAUNCH OF PEOPLE AND THE THE PLANET NESCAFÉ PLAN MARKED 18% 23% 2500 251 INTO YOUR CUP. THE BEGINNING THAT’S THE OF Yield increase in Water
Slide 29: Key Takeaways This Time
Key Takeaways This Time Sustainable Volume Strong Value Growth Sustainable Innovation continues Led Growth across Rural and performance to be an engine of Urban India growth Implemented Strong commitment Sustainable initiatives Immediate concerns future ready plans to transform using at the core of
Slide 30: Determined in Adversity, Inspired to Grow.
Determined in Adversity, Inspired to Grow.