Slide 1: Welcome to the Nine-Month Sales Conference
Welcome to the Nine-Month Sales Conference
Slide 2: Nine-Month Sales Conference – Paul Bulcke
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 3: Nine-Month Sales Conference, 17 October 2013
2010 2011 2012 2013 3 17 October, 2013 Nine-Month Sales Conference
Slide 4: Nine-Month Sales Conference – Wan Ling Martello
Nine-Month Sales Conference Wan Ling Martello Chief Financial Officer
Slide 5: Disclaimer
This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and Disclaimer uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
Slide 6: Highlights
• Sales up 4.0% to CHF 68.4 billion • Organic growth of 4.4% Highlights • Real Internal Growth 3.0% • All geographies contributing to positive growth • Outlook confirmed: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 6 17 October, 20
Slide 7: Operating Segments
6.6 5.6 5.6 Operating 5.2 5.1 4.4 4.0 Segments 2.1 2.0 2.1 1.5 0.7 Zone Zone Zone Nestlé Nestlé Other Europe Americas AOA Waters Nutrition Sales 11.4 20.8 14.1 5.7 7.5 9.0 CHF bn rounded % OG % RIG 7 17 October, 2013 Nine-Month Sales Conference
Slide 8: Product Categories
6.9 6.1 5.0 5.0 Product 4.4 3.5 3.9 Categories 2.3 0.5 0 Powdered & Milk Products Prepared Dishes Confectionery PetCare Liquid Beverages & Ice Cream & Cooking Aids Sales 15.0 13.2 10.3 7.2 8.3 CHF bn rounded % OG % RIG 8 17 October, 2013 Nine-Month Sales Conference
Slide 9: Regional Performance
6.9 5.8 5.1 Regional % OG Performance % RIG 1.9 2.0 0.9 Europe Americas AOA Sales 18.7 29.6 20.0 CHF bn rounded Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc, 9 17 October, 2013 Nine-Month Sales Conference
Slide 10: Europe
Europe Region* Sales CHF 18.7 bn OG 0.9% RIG 1.9% Zone Sales CHF 11.4 bn OG 0.7% RIG 2.1% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 10 17 October, 2013 Nine-Month Sales Conference
Slide 11: Americas
Americas Region* Sales CHF 29.6 bn OG 5.1% RIG 2.0% Zone Sales CHF 20.8 bn OG 5.2% RIG 1.5% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 11 17 October, 2013 Nine-Month Sales Conference
Slide 12: Asia, Oceania & Africa
Asia, Oceania & Africa Region* Sales CHF 20.0 bn OG 6.9% RIG 5.8% Zone Sales CHF 14.1 bn OG 5.6% RIG 5.1% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 12 17 October, 2013 Nine-Month Sales Conference
Slide 13: Summary
• Broad based performance – all regions and Summary categories contributing • Growth momentum continues • Outlook confirmed: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 13 17 October, 2013 Nine-Month Sales Conference
Slide 14: Enhancing our competitiveness to drive performance
Enhancing our competitiveness to drive performance Paul Bulcke Nestlé CEO
Slide 15: Delivering over time
EBIT (in % NPS) TOP margin (in % NNS) 14.6 14.8 14.3 15.0 15.2 14.0 14.4 12.9 13.5 Delivering 12.5 12.6 over time 7.4 8.3 7.5 10 year 6.2 6.2 6.2 Average 5.9 5.1 OG 4.5 + 6.1% Nestlé Model 4.1 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 15 17 October, 2013 Nine-Month Sales Conference
Slide 16: Our Roadmap
Competitive Growth advantages Nutrition, drivers Health and Wellness Emerging People Consumers Worldwide Out-of-home presence Our Roadmap Our ambition Research and is to be the leader in Nutrition, Premiumisation development Health and Wellness, Driving and the reference for financial performance, p
Slide 17: New Reality: Many challenges
New Reality Many challenges 17 17 October, 2013 Nine-Month Sales Conference
Slide 18: New Reality: Many opportunities
New Reality Many opportunities 18 17 October, 2013 Nine-Month Sales Conference
Slide 19: Our priorities
Grasp Make choices opportunities Engage with Our priorities Value what consumers value the community and stakeholders Have Embrace digital the best people Expand the boundaries of nutrition 19 17 October, 2013 Nine-Month Sales Conference
Slide 20: Strengthening portfolio
Strengthening portfolio Focus on… Allocating resources Mastering complexity 20 17 October, 2013 Nine-Month Sales Conference
Slide 21: Strengthening portfolio
Strengthening portfolio Focus on… Allocating resources Mastering complexity 21 17 October, 2013 Nine-Month Sales Conference
Slide 22: R&D and Innovation
R&D and Innovation 60/40 + 22 17 October, 2013 Nine-Month Sales Conference
Slide 23: Portfolio management: Acquisitions, M&A, Divestitures
Portfolio management Acquisitions M&A 2001 2007 2010 2011 2012 2000 2003 2004 2009 2010 2012 South Africa Divestitures 23 17 October, 2013 Nine-Month Sales Conference
Slide 24: Strengthening portfolio
Portfolio management Scope Criteria Decisions Strengthening 1800 cells • Strategic fit • Products • Profitable • Invest ? Drive portfolio • Brands growth • Fix ? • Categories • Resource • Divest ? returns • Markets intensity 24 17 October, 2013 Nine-Month Sales Conference
Slide 25: Strengthening portfolio
Strengthening portfolio Focus on… Allocating resources Mastering complexity 25 17 October, 2013 Nine-Month Sales Conference
Slide 26: Investing for growth: Capabilities
Investing for growth Capabilities 26 17 October, 2013 Nine-Month Sales Conference
Slide 27: Investing for growth: Capacities
Investing for growth Capacities 27 17 October, 2013 Nine-Month Sales Conference
Slide 28: A strong global presence
A strong global presence Factories R&D Factory: new/expansion New R&D Illustrative 28 17 October, 2013 Nine-Month Sales Conference
Slide 29: Capital Expenditure
Capital Expenditure 5% Return 29 17 October, 2013 Nine-Month Sales Conference
Slide 30: Strengthening portfolio
Strengthening portfolio Focus on… Allocating resources Mastering complexity 30 17 October, 2013 Nine-Month Sales Conference
Slide 31: Mastering complexity
Category Geography Europe Americas Asia Powdered and Liquid Beverages Oceania Water Africa Milk products and Ice cream Nutrition and HealthCare Prepared dishes and Cooking aids Mastering Confectionery PetCare complexity Nestlé Waters Globally Managed Nestlé Nutrition Businesses Nestlé Professional N
Slide 32: Mastering complexity
Mastering complexity From size... to scale… to competitive advantage 32 17 October, 2013 Nine-Month Sales Conference
Slide 33: Enhancing our competitiveness to drive performance
Strengthening portfolio Enhancing our competitiveness Allocating resources to drive performance Mastering complexity 33 17 October, 2013 Nine-Month Sales Conference
Slide 34: Enhancing our competitiveness to drive performance
Enhancing our competitiveness to drive performance 34 17 October, 2013 Nine-Month Sales Conference
Slide 35: Appendix
Appendix 35 17 October, 2013 Nine-Month Sales Conference
Slide 36: Weighted Average Exchange Rates
CHF per 9m 2012 9m 2013 (%)* US Dollar (1) 0.94 0.94 -0.5 Weighted Euro (1) 1.20 1.23 +2.3 Average £ Sterling (1) 1.48 1.45 -2.6 Exchange Rates Real (100) 49.06 44.29 -9.7 Mex. Peso (100) 7.11 7.38 +3.8 Yen (100) 1.18 0.97 -18.1 * % rounded 36 17 October, 2013 Nine-Month Sales Conference
Slide 37: FX Impact on All Businesses
(%) 1Q 2013 HY 2013 9m 2013 Zone Americas -2.6 -2.4 -4.4 FX Impact on All Zone Europe +1.2 +1.3 +0.9 Businesses Zone AOA -1.0 -1.4 -3.7 Nestlé Nutrition -1.9 -1.8 -3.9 Nestlé Waters +0.9 +0.8 -0.4 Other +0.2 +0.3 -1.0 Total -0.9 -0.9 -2.5 37 17 October, 2013 Nine-Month Sales Conference