Slide 1: Full-year results 2020 Press Conference
Full-year results 2020 Press Conference
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: Full-year results 2020 - Mark Schneider, CEO
Full-year results 2020 Mark Schneider, CEO
Slide 4: Key messages 2020
Key messages 2020 • Rising to the challenge of the global pandemic – Employee safety, business continuity, community support • Strong financial results – Organic sales growth of 3.6% – Underlying trading operating profit margin increases by 10 bps to 17.7% • Portfolio transformation fully on track •
Slide 5: Third consecutive year of improved growth and margins
Third consecutive year of improved growth and margins Organic sales growth Underlying trading operating profit (%) (in % of sales) 3.6 17.7 16.5 2.4 2017 2020 2017 2020 Target set in 2017: restated Target set in 2017: mid-single digit 17.5% - 18.5% 5 February 18, 2021 Nestlé full-year results 2020
Slide 6: Continued progress in 2020 towards mid single-digit organic sales growth
Continued progress in 2020 towards mid single-digit organic sales growth • High-growth categories and channels • PetCare: +10.2% organic sales growth • Coffee: Starbucks brand with ~CHF 400 m incremental sales, Nespresso with +7.0% organic sales growth • Plant-based food: strong double-digit organic
Slide 7: Further developing our portfolio
Further developing our portfolio > 75 transactions Divesting under-performing closed or announced or non-core businesses since 2017, equivalent to ~ 18% of Group sales North Market attractiveness America US Waters Organic sales growth Confectionery Acquiring / investing in high-growth contribution i
Slide 8: Nestlé's Net Zero Roadmap
Nestlé’s Net Zero Roadmap Our path to regeneration for future generations Path to zero emissions by 2050 Moving faster Scaling up Delivering our Business as usual promise 92m tonnes of GHG emissions 20% reduction by 2025 50% reduction by 2030 Net Zero by 2050
Slide 9: Sustainability is key to our value-creation strategy
Sustainability is key to our value-creation strategy • Balancing short-term and long-term stakeholder expectations • Creating competitive advantage by enhancing relevance with consumers, regulators, employee base and investors • Keeping sustainability investments earnings neutral through growth leve
Slide 10: 2021 guidance
2021 guidance • Continued increase in organic sales growth towards a mid single-digit rate • Underlying trading operating profit margin with continued moderate improvement • Underlying earnings per share in constant currency and capital efficiency expected to increase 10 February 18, 2021 Nestlé ful
Slide 11: Mid-term outlook
Mid-term outlook • Sustained mid single-digit organic sales growth • Continued moderate underlying trading operating profit margin improvements • Continued prudent capital allocation and capital efficiency improvements • Value creation for both society and our shareholders 11 February 18, 2021 Nestl
Slide 12: Full-year results 2020 - François-Xavier Roger, CFO
Full-year results 2020 François-Xavier Roger, CFO
Slide 13: Full-year sales growth
Full-year sales growth OG +3.6% +0.4% +3.2% -4.6% -7.9% 92.6 84.3 Reported sales growth -8.9% -30 FY-2019 sales RIG Pricing Net M&A Foreign FY-2020 sales CHF bn exchange CHF bn 13 February 18, 2021 Nestlé full-year results 2020
Slide 14: Broad-based growth with strong momentum in the Americas
Broad-based growth with strong momentum in the Americas 2020 sales: CHF 84.3 bn 2020 organic sales growth EMENA 29% 6.0% 2.4% AMS AOA 0.8% 45% 26% AMS EMENA AOA Each geography includes zones, Nespresso and Nestlé Health Science 14 February 18, 2021 Nestlé full-year results 2020
Slide 15: Strong growth in developed markets
Strong growth in developed markets 2020 sales: CHF 84.3 bn 2020 organic sales growth Developed Emerging 59% 41% 3.8% 3.4% Developed Emerging 15 February 18, 2021 Nestlé full-year results 2020
Slide 16: Contrasted momentum by channel
Contrasted momentum by channel Organic sales growth Retail Out-of-home* FY-2019 FY-2020 FY-2019 FY-2020 7.0% 3.4% 4.0% -30.4% * Includes Nestlé Professional, foodservice activities of Nespresso, Starbucks products and water, travel retail and Blue Bottle 16 February 18, 2021 Nestlé full-year results
Slide 17: Contrasted growth across categories
Contrasted growth across categories 2020 sales: CHF 84.3 bn 2020 organic sales growth 10.2% Water 7.9% 8% Confectionery Powdered & liquid 8% beverages 4.7% 26% 3.2% 1.7% Milk products & Ice cream 13% -1.5% PetCare Prepared dishes 17% & cooking aids 14% -7.0% Nutrition & Powdered PetCare Nutrition Pr
Slide 18: Key growth platforms
Key growth platforms All figures relate to organic sales growth E-commerce Premium products Affordable offerings 12.8% of sales 30% of sales 8% of sales 9.5% 8.1% 48.4% 7.4% 4.3% 18.5% 2019 2020 2019 2020 2019 2020 18 February 18, 2021 Nestlé full-year results 2020
Slide 19: Continued margin expansion
Continued margin expansion Underlying TOP margin pro forma, excluding Nestlé Skin Health 17.4% +10 bps 17.8% +10 bps 17.7% +10 bps 17.5% 17.5% -30 Margin increased by + 30 bps in constant currency Underlying TOP COGS & Administration, Underlying TOP Currency Underlying TOP FY-2019 Distribution Marke
Slide 20: Strong free cash flow of CHF 10.2 bn
Strong free cash flow of CHF 10.2 bn Free cash flow in % of sales 13.5% 12.9% 13.0% 12.1% 12.5% 11.8% 12.0% 11.5% * 11.0% 10.4% 10.5% 10.0% 9.5% 9.0% 2017 2018 2019 2020 8.5% * Restated, reflecting implementation of IFRS 15 and IFRS 16 20 February 18, 2021 Nestlé full-year results 2020
Slide 21: Steady progress in ROIC, led by disciplined capital allocation
Steady progress in ROIC, led by disciplined capital allocation 14.7% ** 13.1% 12.1% * 11.4% 11.2% 10.8% 10.9% 2014 2015 2016 2017 2018 2019 2020 * Excludes impairment of Nestlé Skin Health and restated to reflect implementation of IFRS 15 and IFRS 16 ** Excludes impairment of Yinlu 21 February 18, 2
Slide 22: Nestlé Good food, Good life
SUNE ps Nestlé Good food, Good life \\