Nestle Pakistan Ltd. · PSX:NESTLE

Nestle Pakistan — Investor Presentation (September 2020)

25 slides from Nestle Pakistan's investor presentation, Sep 4, 2020

  1. Slide 1: Corporate Briefing Session

    Nestlé Pakistan Limited Corporate Briefing Session Lahore, 4th September 2020

  2. Slide 2: Our business

    Our business Key Figures 2019 Where What Sales North Dairy & 28% Beverages Others Nutrition PKR 116 bn Center 34% 77.2% 22.6% 0.1% Operating Profit 13.0% South Net Profit 35% Exports: 1.9% 6.3% * Others include Chocolate and Dolce Gusto Employees Factories Top Brands 4,063 4 September 4, 2020 Nestlé

  3. Slide 3: Contribution to the rural economy

    Contribution to the rural economy PKR 22.5 bio milk 72,500 farmers Supporting 3,000 small purchase and medium farms PKR 4.9bio Promoting best farm Procurement of Fruits, practices (Chaunsa Sugar and Wheat Flour Project) September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 3

  4. Slide 4: Market leading positions across categories

    Market leading positions across categories NESTLÉ EVERYDAY NESTLÉ MILKPAK (PWD+UHT) NESTLÉ Juices 36.6% 40.5% 35.9% Source: Nielsen, MAT Dec 2019 September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 4

  5. Slide 5: Export expansion in focus

    Export expansion in focus Existing Countries Export Portfolio AFGHANISTAN TAJIKISTAN UAE QATAR KYRGYZSTAN USA CANADA DENMARK MALAYSIA AUSTRALIA GHANA MOZAMBIQUE LIBYA September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 5

  6. Slide 6: Our Strategy

    Our Strategy September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 6

  7. Slide 7: Win in the core portfolio

    Win in the core portfolio  Accelerate growth  Improve margins  Win with customers and shoppers September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 7

  8. Slide 8: Build new pillars

    Build new pillars  Drive innovation and renovation  Exponentially grow in-home and out-of-home  Strengthen route-to-market capabilities September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 8

  9. Slide 9: Enhance efficiency

    Enhance efficiency  Optimize costs across value chain  Maximize returns on commercial spends  Simplify processes by leveraging technology September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 9

  10. Slide 10: Develop an agile and inclusive organization

    Develop an agile and inclusive organization  Accelerate diversity and inclusion  Develop, nurture and retain talents  Create opportunities for YOUth Employee International Hai tum pe Yakeen Phir say ker dikhaao - Kero Aitemaad – Infrastructure Employee Digital and Employee Digital Mentoring Missi

  11. Slide 11: Investing for future growth

    Investing for future growth Capex (PKR Bio) 5.5 4.5 4.1 3.8 2.7 2015 2016 2017 2018 2019 September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 11

  12. Slide 12: New launches

    New launches DAIRY JUICES & WATER COFFEE September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 12

  13. Slide 13: Creating shared value - key initiatives

    Creating shared value - key initiatives Nestlé BISP Rural Women Sales Program Nestlé Chaunsa Project Addressing Addressing poor Improving malnutrition among livelihood for rural opportunities for school going children women Mango farmers FOR INDIVIDUALS & FAMILIES FOR OUR COMMUNITIES FOR THE PLANET

  14. Slide 14: Manufacturing Communities Agriculture

    Manufacturing Communities Agriculture AWS Certification Access to Safe & Clean High Efficiency Irrigation 2019: 3 sites certified Drinking Water 2019: Water saving of 391 6 facilities providing mio liters through drip In-house Efficiencies access to water for more irrigation Water consumption per th

  15. Slide 15: Response to COVID-19 pandemic with 100 million rupees

    Response to COVID-19 pandemic Nestlé Pakistan supporting vulnerable communities in COVID-19 pandemic with 100 Supported vulnerable million rupees communities with PKR 100 million + Over 4 mio servings of Donation to Pakistan Red Employee donation food Crescent Society (PRCS) of contribution PKR 5 mi

  16. Slide 16: Economy passing through a difficult phase

    Economy passing through a difficult phase 5.2% 5.5% Inflation Policy rate 4.6% 168 4.1% 4.1% 13.3% 180 3.7% 157 170 139 160 1.9% 8.0% 11.4% 8.6% 150 7.0% 140 6.3% 6.3% 109 130 7.0% 105 105 120 4.6% 6.2% -0.4% 110 100 3.2% 3.7% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 90 2015 2016 2017 2018 2019 2020

  17. Slide 17: FY 2019 financial results

    FY 2019 financial results Sales (PKR Bio) Growth % Operating Profit (PKR Bio) % of sales 120.7 25.0 23.6 25. 0% 118.6 130 .0 18. 0% 116.0 109.0 20.1 110 .0 99.7 13. 0% 20.0 19.1 20. 0% 16.3 19.9% 15.0 90.0 17.6% 15.0 16.4% 16.6% 15. 0% 9.3% 8.0 % 70.0 8.8% 6.3% 10.0 13.0% 10. 0% 50.0 3.0 % 30.0 1.8%

  18. Slide 18: FY 2019 financial results

    FY 2019 financial results EPS (Rupees) % Change Return on Capital Employed 322.9 350 .0 40. 0% 35.2% 300 .0 30. 0% 153% 261.2 23.6% 256.1 129% 20. 0% 250 .0 122% 10.5% 10. 0% 200 .0 193.2 0.0 % 97% 162.2 -10.0% 61% 150 .0 100 .0 -20.7% -20.0% -30.0% 50.0 -36.7% -40.0% - -50.0% 2015 2016 2017 2018 20

  19. Slide 19: H1 2020 Challenges

    H1 2020 Challenges • Massive decline in impulse, on-the-go and out-of-home consumption • Drop in exports to neighboring countries due to border closure and backlog • Significant increase in input costs (fresh milk, sugar) • Managing production and distribution of products September 4, 2020 Nestlé Pa

  20. Slide 20: H1 2020 financial results

    H1 2020 financial results Operating Profit EPS (PKR/share) Sales (in PKR) Sales growth Margin 58.4 bn +1.0% 13.6% of sales 85.5 -91 bps -13.3% September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 20

  21. Slide 21: Sales growth – H1 2020

    Sales growth – H1 2020 8.1% 1.0% -19.9% Total Dairy and Nutrition Beverages Powdered and Liquid Beverages September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 21

  22. Slide 22: Key financials – H1 2020

    Key financials – H1 2020 Sales (PKR Bio) Gross Profit % Net Profit % 58.4 30.5% 7.7% 6.6% +1.0% -68 bps -110 bps 57.8 29.8% H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 Gross Profit = PKR 17.4 bn. Net Profit = PKR 3.9 bn. September 4, 2020 Nestlé Pakistan Limited Corporate Briefing Session 22

  23. Slide 23: Key highlights – Dairy and Nutrition

    Key highlights – Dairy and Nutrition H1 2020 Sales (PKR Bio) 46.5 Sales Growth 8.1% Operating profit margin 17.2%  Strong growth in both liquid and powder portfolio  Significant increase in sales in e-commerce channel, pharmacies and key accounts  Operating profit margin marginally improved due t

  24. Slide 24: Key highlights – Beverages

    Key highlights – Beverages H1 2020 Sales (PKR Bio) 11.8 Sales Growth -19.9% Operating profit margin -0.3%  Sales impacted by massive decline in impulse, on- the-go and out-of-home consumption  Partial recovery in June with easing in lockdown  Operating profit impacted by drop in sales September 4

  25. Slide 25: Q&A

    TURN UP YOUR Q&A

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