Nestle India Ltd. · NSE:NESTLEIND
Nestle India — Investor Presentation (April 2024)
37 slides from Nestle India's investor presentation, Apr 8, 2024
Slide 1: Exchange filing cover letter: presentation to institutional investors
Nestlé India Limited (CIN : L15202DL1959PLC003786) Nestlé House Jacaranda Marg ‘M’Block, DLF City, Phase – II Gurugram – 122002, Haryana Phone: 0124 – 3940000; E-mail: investor@in.nestle.com; Website: www.nestle.in PKR:SG: 30:24 8th April 2024 BSE Limited National Stock Exchange of India Limited Phi
Slide 2: Investor Update
SAENZ cs SEN Nestle Good Food, Good Life Investor Update Growing Responsibly Together APRIL 2024
Slide 3: Disclaimer
Disclaimer This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward-looking statements. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those cont
Slide 4: Agenda for the day
Agenda for the day 1 The India Opportunity 2 Nestlé India – Strongly Supported by Nestlé Group 3 Our Operations & Distribution Capabilities 4 Living Our Purpose Agenda 5 Winning Brands 6 Robust Financial Performance 7 Questions & Answers 2
Slide 5: The India Opportunity
The India Opportunity
Slide 6: Indian F&B Market is a Large Opportunity
Indian F&B Market is a Large Opportunity Consumer Opportunity and Trends - Robust F&B Spend Correlated with Economic Growth (Per capita income and F&B spend Indexed to India, India = 100$) Per Capita F&B Spend Per Income ($) Capita ($) Digital Infrastructural Consumer Entrepreneurial India 100 100 3
Slide 7: Nestlé India – Strongly Positioned to Leverage the Opportunity
Nestlé India – Strongly Positioned to Leverage the Opportunity Portfolio Planet Iconic Brands with Deep Driven to Create a Sustainable, Customer Connect Healthier World for Everyone People Partnerships Unparalleled, Dedicated Relationships driven by Talent Pool mutual respect, honesty, integrity & f
Slide 8: Nestlé India – Strongly Supported by Nestlé Group
Nestlé India – Strongly Supported by Nestlé Group
Slide 9: Nestlé Group: The World's Largest FMCG Company
Nestlé Group: The Worlds largest FMCG Company and Well Diversified Globally NA EUR AOA LATAM GC Nestlé SA (2023) Where we sell1: 32.6% 23.9% 21.9% 15.3% 6.3% Providing Safe, Quality Nutrition 2,000+ Brands Around for More than 150 Years worldwide 270,000 Employees 340 factories in US$1.8 Billion US$
Slide 10: Nestlé Group: World Class R&D Infrastructure
Nestlé Group: World Class R&D Infrastructure Robust R&D Infrastructure and Investments Group R&D Spends (INR Bn) US$ 1.8Bn | 152 INR 152Bn 135 140 118 124 R&D Cost in CY2023 CY2019 CY2020 CY2021 CY2022 CY2023 Nestlé Research: NSTC(2): NPTC(2)s: NDC(2)s and Drives science Supports the Coffee Scientif
Slide 11: Strategic Support from Nestlé Group across Areas
Strategic Support from Nestlé Group across Areas Strong Brands Technical Assistance and Digital Data & IT Authority through IPR to leverage strong Capability Building Digitally empowered back-bone brands; guidance on brand excellence supporting all operations Advanced consumer / marketing and and qu
Slide 12: Strong Brands: Increase in Brand Strength in Key Brands
1 Strong Brands: Increase in Brand Strength in Key Brands over last 10 Years Brand Strength Index Prepared Dishes Powdered and Confectionery and Cooking Aids Liquid Beverages 132 510 342 3.1x 249 1.6x 1.1x 116 165 CY2012 CY2022 CY2012 CY2022 CY2012 CY2022 Milk Products and Nutrition 174 421 496 327
Slide 13: Innovation: Support across Resources, Processes and Global Pipeline
2 Innovation: Support across Resources, Processes and through the Global Pipeline Innovative Toddler Launches Register Strong Sales Growth New Research Institutes INR Mn 2018 2023 CAGR Resources Nestlé Institute of Nestlé Institute of ✓ Healthier diets, ✓ Packaging waste Packaging Sciences (2019) Ag
Slide 14: Technical Assistance & Capability Building
3 Technical Assistance & Capability Building: Across Commercial and Manufacturing Commercial Assistance Manufacturing Assistance Global Best Practices SRM(1) Support Production Automation Transportation Hub Category growth drivers Global SRM toolkit Cross-functional team with aim to Implementation o
Slide 15: ESG: Sustained Momentum and Capability Development (1/2)
4 ESG: Sustained Momentum and Capability Development (1/2) Nestlé ESG Milestones Accelerating ESG Initiatives >150 Mn CHF investment in Launch of CSV(1) Launch of Nestlé Global Launch of net zero roadmap for Nutritional benchmarking climate initiatives Commitments with 30 goals Institute of Packagin
Slide 16: ESG: Sustained Momentum and Capability Development (2/2)
4 ESG: Sustained Momentum and Capability Development (2/2) Key Initiatives in Fresh Milk Procurement Helping Us Grow the ESG Way Biodigesters to capture Biodigesters and Biogas Plants: Helping dairy farms Manure emissions from manure & produce milk with less environmental impact Management use the g
Slide 17: Digital, Data and IT: Bolstering the DD&IT Backbone
5 Digital, Data and IT: Bolstering the DD&IT Backbone Digital Strategy, Tools and Resources R&D and Production Marketing and Sales (M&S) M&S Solutions Developed by Group Roll-out of digital technologies across value chain Group strategic priorities: Direct Consumer Access at Scale, Next Level Conten
Slide 18: Summary - Support from Nestlé Group
Summary - Support from Nestlé Group Brand Strong Strength 1 Brands Increase 3.1x 1.6x 1.5x 1.1x NM NM Innovation Sales c.11k additional >70 New Products 2 new specialized up from c.3% in 2 Innovation Patents since 2008 Launched in India 50+ new Pilot Lines Research Centres 2018 to >6% in (12k vs 1k)
Slide 19: Our Operations and Distribution Capabilities
Our Operations and Distribution Capabilities
Slide 20: Manufacturing Citadels of Nestlé India
Manufacturing Citadels of Nestlé India – 9 State of the Art Manufacturing Facilities Pan India Footprint Consistent Capability Building (Net Book Value as on last date of the year, INR Bn) 5 Tahliwal, HP 2018 2023 7 Pantnagar, Uttarakhand 2 Nanjangud, Karnataka 3.9 7.4 6 Moga, Punjab 4 Samalkha, Har
Slide 21: Deepening Pan India Presence
Deepening Pan India Presence Expanding Overall Reach Improving Rural Reach Growing Penetration (# million outlets) (‘000 villages covered) (2021-23 Town Class CAGR across categories) Direct Indirect Other villages Villages with >2,000 population Growth Across India with Rapid Penetration in Metro an
Slide 22: Building Robust Digital, Data and IT Capabilities with the Group
Building Robust Digital, Data and IT Capabilities in Collaboration with the Group Crafting new channels to reach our customers Other Key Capabilities Accelerating E-Commerce Footprint The ‘Retailer Self-Ordering App’- NesMitra, boosts engagement (e-commerce % to Domestic Sales) and business traction
Slide 23: Harnessing Opportunity through Focused Consumer Clusters
Strategy - Harnessing Opportunity through Focused Consumer Clusters Two-Step Data Driven Process to Identify and Capitalize on Opportunities Step 1 Step 2 Granular Mapping of Clusters Determination of Development and Distribution Priorities Clusters Segmented basis Market Size Index (MSI) to be used
Slide 24: Living Our Purpose
Living Our Purpose
Slide 25: Nestlé - Purpose and Values framework
Nestlé - Purpose and Values framework our purpose We unlock the power of food to enhance quality of life for everyone, today and for generations to come our values Our values are rooted in respect where we make impact FOR INDIVIDUALS & FAMILIES FOR OUR COMMUNITIES FOR THE PLANET Enabling healthier a
Slide 26: Healthier Future
Living our Purpose Clean drinking Nestlé Global water facilities: Healthy Kids: Over 175,000 Over 555,000 beneficiaries beneficiaries Healthier Healthier Society People Enduring Partnerships 2,000+ Distributors Engaging (360+ Distributors 80,000 milk, with 20+ years Healthier 5,000 coffee and 1,500
Slide 27: Resulting in Winning Brands
Resulting in Winning Brands
Slide 28: Iconic Brands Leveraged by Nestle India
Iconic Brands Leveraged by Nestle India Diversified portfolio of Brands Prepared Dishes Powdered and Milk Products and Nutrition Confectionery and Cooking Aids Liquid Beverages CY2023 40.8% 30.5% 16.3% 12.4% Revenue % Globally Iconic Brands from a portfolio of 2,000+ Brands 31 24 78 58 52 15 Categor
Slide 29: Nestlé's Brands Consistently Winning with Local Consumers
Nestlé’s Brands Consistently Winning with Local Consumers Market Share Nestlé Position Nestlé Position Category Brand 2023 (Value)¹ 2023 2019 Infant Cereals 96.8 1 1 Instant Pasta 80.2 1 1 White & Wafers 72.9 1 1 Infant Formula2 63.9 1 1 Instant Noodles 59.0 1 1 Instant Coffee 54.5 1 1 Tea Creamer 3
Slide 30: Respected, Reputed and Recognized across Categories
Respected, Reputed and Recognized across Categories Select Rewards and Recognition Awards for Our People Focus • KITKAT #CatchABreak Bags 3 Metals at Digies 2024 Best Organizations for Women 2024 • “Brand Xcel Excellence Award” for Maggi • 6 prestigious EFFIE awards: 3 for MAGGI, 2 for NESCAFÉ and 1
Slide 31: Nestlé India: Key Takeaways
Nestlé India: Key Takeaways Present in India for Household brands 110+ years winning with local consumers Consistent delivery of growth, Science and margins and consumer-based economic value Innovation and for investors Renovation Creating shared value for Strong support shareholders and from Nestlé
Slide 32: Robust Financial Performance
Robust Financial Performance
Slide 33: Consistent Volume Led Growth of Revenue and Operating Profit
Consistent Volume Led Growth of Revenue and Operating Profit Consistent Year on Year Volume Led Growth Volume (‘000 Tons) Sale of Products (INR Bn) Operating Profit (% of Sales of Products) (INR Bn) 21.0% 21.1% 21.7% 22.0% 20.0% 21.5% 579 573 190 41 544 168 34 32 491 147 478 133 29 123 447 26 112 24
Slide 34: Consistent growth with healthy margins to create economic value
Consistent growth with healthy margins to create economic value Pre-General License Fee PBT(1,2) (INR Billion) Cash Flow from Operations(1) (INR Billion) 34 50 41 27 35 36 25 33 23 30 22 21 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Invested Capital(1,3,4) (INR Billion) A Strong Evo
Slide 35: Multi-decade Track Record of Shareholder Value Creation
Multi-decade Track Record of Shareholder Value Creation Market Capitalization Jan 2001 – Jan 2019 – Dec 20231 Dec 20232 Total Shareholders Return 7,393% 158% Annualized Return 20.6% 20.9% Nestlé India’s Growth | 48.5x | 2.4x | BSE Sensex Growth 18.2x 2.0x INR 2,564Bn | US$ 30.8Bn INR 1,067Bn | INR 5
Slide 36: Key Financial Takeaways
Key Financial Takeaways 1 Strong Revenue Growth led by Volume Growth and Increased Realizations Robust Strength of Operations Exemplified by Consistent Delivery of Operating Profit 2 Margins, even During Covid Strong Pre-General License Fee profits is a strong indicator of Group support helping in 3
Slide 37: Thank you!
Thank you!