Slide 1: Full-year results 2021
Full-year results 2021
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 2021 - Mark Schneider, CEO
Full-year results 2021 Mark Schneider, CEO
Slide 4: Key messages 2021
Key messages 2021 • Strong organic sales growth of 7.5% • Underlying trading operating profit margin decreased by 30 bps to 17.4%, reflecting time delays between cost inflation and pricing adjustments • Underlying EPS growth of 5.8% in constant currency • Portfolio transformation fully on track • Bo
Slide 5: Portfolio geared for mid single-digit organic sales growth
Portfolio geared for mid single-digit organic sales growth Organic sales growth 7.5%* • Investments in fast-growing categories and geographies Sustainable mid single-digit • Fast-paced innovation (4-6%) 3.5% 3.6% • Increased digitalization 3.0% 2.4% • Market share gains • Portfolio rotation 2017 201
Slide 6: Key drivers of accelerated organic sales growth in 2021
Key drivers of accelerated organic sales growth in 2021 • High-growth categories and channels • PetCare: +12.7% organic sales growth • Coffee: +9.7% organic sales growth; Starbucks with CHF 1 bn incremental sales since 2018 • Nestlé Health Science: +13.5% organic sales growth • Plant-based food: +16
Slide 7: Further developing our portfolio
Further developing our portfolio > 85 transactions Divesting under-performing closed or announced or non-core businesses since 2017, equivalent to ~20% of Group sales North Market attractiveness America US Waters Organic sales growth Confectionery Acquiring / investing in high-growth contribution in
Slide 8: Sustainable livelihoods: reducing child labor risks in cocoa
Sustainable livelihoods: reducing child labor risks in cocoa Novel incentive and support program Expanding efforts to tackle child labor risks, building on our Creating Shared Value approach Premium paid to families and linked to: • School enrollment • Sustainable agricultural practices • Agroforest
Slide 9: Nestlé climate roadmap progress update
Nestlé climate roadmap progress update Greenhouse gas (GHG) emissions reductions Million tonnes of CO2e Peak carbon Business as usual 98.3 • Peak carbon is behind us 4.0 • 2 consecutive years of reduction, while business volume has grown significantly Actual emissions 94.3 • On track to reduce emiss
Slide 10: 2022 guidance
2022 guidance • Organic sales growth around 5% • Underlying trading operating profit margin between 17.0% and 17.5% • Underlying earnings per share in constant currency and capital efficiency expected to increase 10 February 17, 2022 Nestlé full-year results 2021
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 11 February 17, 2022 Nestlé full-year results 2021
Slide 12: Full-year results 2021 - François-Xavier Roger, CFO
Full-year results 2021 François-Xavier Roger, CFO
Slide 13: Full-year sales growth
Full-year sales growth OG +7.5% +2.0% -2.9% -1.3% +5.5% 87.1 84.3 Reported sales growth +3.3% -30 FY-2020 sales RIG Pricing Net M&A Foreign FY-2021 sales CHF bn exchange CHF bn 13 February 17, 2022 Nestlé full-year results 2021
Slide 14: Broad-based growth across geographies
Broad-based growth across geographies 2021 sales: CHF 87.1 bn 2021 organic sales growth EMENA 30% 9.6% 6.9% 4.4% AMS AOA 45% 25% AMS EMENA AOA Each geography includes zones, Nespresso, Nestlé Health Science and Other Businesses 14 February 17, 2022 Nestlé full-year results 2021
Slide 15: Strong growth across developed and emerging markets
Strong growth across developed and emerging markets 2021 sales: CHF 87.1 bn 2021 organic sales growth Developed Emerging 59% 41% 7.8% 7.2% Developed Emerging 15 February 17, 2022 Nestlé full-year results 2021
Slide 16: Strong momentum in retail and partial recovery in out-of-home
Strong momentum in retail and partial recovery in out-of-home Organic sales growth Retail Out-of-home* FY-2019 FY-2020 FY-2021 FY-2019 FY-2020 FY-2021 7.0% 6.4% 24.5% 3.4% 4.0% -30.4% * Includes Nestlé Professional, foodservice activities of Nespresso, Starbucks products and water, travel retail and
Slide 17: Strong growth across most categories
Strong growth across most categories 2021 sales: CHF 87.1 bn 2021 organic sales growth Water 5% 12.7% Confectionery Powdered & liquid 9% beverages 8.9% 27% 7.9% 6.6% 6.8% Milk products 5.9% & Ice cream 12% 1.4% PetCare Powdered PetCare Nutrition Prepared Milk products Confectionery Water 18% Prepare
Slide 18: Key growth platforms
Key growth platforms Organic sales growth Premium products E-commerce Recently-acquired businesses* 35% of sales 14.3% of sales 8% of sales 48.4% 17.5% 18.2% 15.1% 12.0% 9.5% 2020 2021 2020 2021 2020 2021 * From acquisitions between 2017 and 2021 18 February 17, 2022 Nestlé full-year results 2021
Slide 19: Strong growth leverage largely offsetting cost inflation
Strong growth leverage largely offsetting cost inflation Underlying trading operating profit margin Flat 17.X% 17.7% -130 bps +80 bps 17.4% +20 bps -30 Margin - 30 bps in constant currency and reported basis 17.4% Underlying TOP Gross Distribution Administration R&D Underlying TOP FY-2020 margin* &
Slide 20: Return on invested capital
Return on invested capital Before goodwill and intangible assets* 41.1% 41.7% 38.8% 33.9% 31.7% 30.4% 29.9% 30.6% After goodwill and intangible assets* 14.7% 14.2% Excluding Wyeth 13.1% impairment 12.1% 10.9% 11.2% 11.4% 10.8% 12.2% 2014 2015 2016 2017 2018 2019 2020 2021 * Restated to reflect imple
Slide 21: Free cash flow decrease reflects temporary step-up in CAPEX and inventory
Free cash flow decrease reflects temporary step-up in CAPEX and inventory As a % of sales In CHF bn CAPEX investment Free cash flow 10.2 5.8% 8.7 4.8% + CHF 1.0 bn 2020 2021 2022 2020 2021 21 February 17, 2022 Nestlé full-year results 2021
Slide 22: Full-year results 2021 Q&A
Nestl@ Good food, Good life Full-year results 2021 Q&A