Slide 1: Driving Sustainable Value Creation in Zone Americas
CAGNY 2021 Driving Sustainable Value Creation in Zone Americas Laurent Freixe EVP, CEO Zone Americas
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: A strong footprint in the Americas
A strong footprint in the Americas 2020 Where2 What2 Americas1 North Petcare Milk products Prepared dishes America & ice cream & cooking aids CHF 37.7 bn 74% 26% 15% 15% Zone AMS3 Resources3: Latin 90 510 employees CHF 34.0 bn America 142 factories Beverages Nutrition & Water 26% (incl. coffee) Heal
Slide 4: Built upon power brands
Built upon power brands > CHF 1.5 bn > CHF 1 bn 4 February, 19 2021 CAGNY
Slide 5: Accelerating momentum…
Accelerating momentum… Organic growth Structural costs Underlying TOP Margin 4.8% 2017 – 2020 2017 – 2020 3.4% 2.1% -220 bps +80 bps 0.7% 2017 2018 2019 2020 Note: Full scope managed by Zone Americas, incl. Waters 5 February, 19 2021 CAGNY
Slide 6: … transforming for the long term …
… transforming for the long term … IN OUT CHF 3.2 bn CHF 2.9 bn USA Additional CHF 3.2 bn Portfolio USA & Canada UHT Brazil Noodles Brazil IN and OUT Impact: 25% of Zone AMS NNS, 40% of US NNS Investments PetCare / Coffee / Frozen foods in factories Distribution U.S. frozen transformation (DSD to wa
Slide 7: … while managing Covid-19 crisis
… while managing Covid-19 crisis Protecting our people Ensuring business continuity Supporting communities 7 February, 19 2021 CAGNY
Slide 8: Sustainability at the core of our strategic framework
Sustainability at the core of our strategic framework OUR VISION To be the leading, most respected and trusted Food, Beverage and NHW company in the Americas. OUR PURPOSE We unlock the power of food to enhance quality of life for everyone, today and for generations to come. OUR MODEL The Strategic V
Slide 9: Driving efficiencies as a fuel for growth
Driving efficiencies as a fuel for growth Past (2016 – 2020) Future (2021 – 2025) • New head offices in US and Brazil • Efficiencies in operations • Organization redesign of PetCare North America Organizational • Media consolidation in Latin America, including agility & new programmatic capabilities
Slide 10: Investing in growth
Investing in growth Brands & innovation Manufacturing Open Hartwell, Georgia Veracruz, Mexico Jonesboro, Eden, N. Carolina Batavia, Ohio Plant- Local Ready-to- innovation (2019) xx (2020) Arkansas (2020) (2022) (2023) Nutrition based origins drink programs Capex from ~ 4% of sales in 2018 to ~ 6% in
Slide 11: Sustainability driven from farm to fork and beyond
Sustainability driven from farm to fork and beyond Sustainable Infrastructure Consumer Innovation & 1 2 Efficiencies 3 investments 4 5 business models operations engagement Regenerative agriculture Renewable energy Reduced water usage Strategic for our brands – source of competitive advantage & valu
Slide 12: Reducing our packaging: Fit for Purpose
2 Reducing our packaging: Fit for Purpose CHF 100 m savings Reduction of ~ 30K tons of packaging 12 February, 19 2021 CAGNY From 2019 to 2021
Slide 13: Supporting infrastructure and circular economy
3 Supporting infrastructure and circular economy Recycling infrastructure Point of sales Renewable energy Circular collection point infrastructures economy Nestlé invests USD 30 m in Closed Loop Leadership Fund ✓ Main platform in Latin America and Caribbean driving circular economy via inclusive rec
Slide 14: Driving consumer engagement
4 Driving consumer engagement Building carbon Communicating responsibly Driving behavior neutral brands sourced ingredients By 2022 By 2025 100% responsibly sourced coffee and cocoa by 2025 14 February, 19 2021 CAGNY
Slide 15: Driving product innovation and new business models
5 Driving product innovation and new business models Expanding plant-based offerings Driving new business models Core brands Minority investment New Route to Market Born pure brands 15 February, 19 2021 CAGNY
Slide 16: Zone Americas key takeaways
Zone Americas key takeaways • Strong footprint across the Americas • Americas as a key contributor to Nestlé’s profitable growth journey • Accelerating and transforming the business for the long-term • Supporting investment in growth through efficiencies and digital transformation • Sustainability c