Nestle India Ltd. · NSE:NESTLEIND
Nestle India — Investor Presentation (February 2021)
26 slides from Nestle India's investor presentation, Feb 26, 2021
Slide 1: Nestlé India Financial Analyst and Institutional Investor Webcast
Nestlé India Financial Analyst and Institutional Investor Webcast 26th Feb 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which holds only as of the date. The future involves unc
Slide 3: Agenda
15.30 – 15.55 : Report Card of a Resilient 15.55 – 16.30: Organization – Q&A Presentation by Suresh Narayanan Agenda Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 4: Report Card of a Resilient Organization
Report Card of a Resilient Organization Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 5: Our Vision
Our Vision Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 6: Key Highlights 2020
Key Highlights 2020 Strong domestic sales growth, broad based and largely driven by volume and mix. Nearly two thirds of our key products, boosted by in home consumption, posted double digit growth. Innovation and Renovation pipeline continues to be a thrust area. Demand in Out of Home channels cont
Slide 7: Sales: Broad Based Performance Across All Product Groups
FY 2020 Sales: Broad Based Performance Across All Product Groups 11.4% Prepared dishes and cooking aids 8.9% Milk Products and Confectionery Nutrition Powdered Contribution and liquid Contribution beverages Growth % Data represents Jan-Dec 2020 10.5% Nestlé India - Financial Analyst and Institutiona
Slide 8: Report Card of a Resilient Organization
Report Card of a Resilient Organization The Consumption A History of Sustainable Creating Shareholder Our Growth Model Opportunity Performance Value A Strong Thrust on Rapidly Accelerating our Consistent Media Navigating Commodity Innovation Footprint Support to our Brands Headwinds Unwavering Commi
Slide 9: The Consumption Story – Exciting Opportunities Ahead
The Consumption Story – Exciting Opportunities Ahead Source- Bain & Company report on Future of Consumption in India 2018-2030 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 10: Our Growth Model
Our Growth Model Brand Salience Competitive advantage Investing and through R&D Innovating expertise Penetration Led Growth Strong Cost Leadership Position In Seven Out Of Eight Categories in most years and Efficiency Management Nestlé India - Financial Analyst and Institutional Investor Webcast, 26
Slide 11: 10 Years of Sustainable Volume & Mix Led Growth
10 Years of Sustainable Volume & Mix Led Growth 600 14.5 20.0 9.2 11.6 9.6 6.8 8.4 8.5 6.7 7.8 5.7 2.5 10.0 1.8 500 (0.3) - 400 (20.9) (10.0) (20.0) 300 (30.0) 200 (40.0) (50.0) 100 (60.0) 430 432 436 433 269 343 382 424 457 468 116 103 128 121 - (70.0) # 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 12: 10 Years of Sustainable Domestic Value Growth
10 Years of Sustainable Domestic Value Growth 16.9 14.3 11.8 20.0 11.0 8.6 8.5 10.7 10.2 10.1 130 7.1 10.9 2.6 10.0 10.9 8.2 - (18.3) 110 (10.0) 90 (20.0) (30.0) 70 (40.0) 50 (50.0) (60.0) 30 (70.0) 71 79 84 92 75 88 95 105 117 126 31 29 34 33 10 (80.0) 2011 2012 2013 2014 2015 # 2016 2017 2018 2019
Slide 13: 10 Years of Accelerating Profit from Operations
10 Years of Accelerating Profit from Operations 22.9 24.0 52 21.7 21.7 22.0 21.0 21.1 22.0 42 20.0 20.0 18.5 18.5 18.3 18.1 18.1 17.6 18.0 32 16.4 16.0 22 14.0 12 12.0 14 15 16 18 13 17 18 24 26 29 7 7 8 7 2 10.0 2011 2012 2013 2014 2015 # 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Profit from
Slide 14: 10 Years of Accelerating Net Profit
10 Years of Accelerating Net Profit 40 25.0 35 20.0 30 16.0 16.0 16.7 15.7 15.9 25 14.3 14.1 15.0 12.8 12.9 12.3 12.1 12.1 10.6 20 10.0 6.9 15 10 5.0 5 10 11 11 12 6 10 12 16 20 21 5 5 6 5 - - # 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Net Profit (INR Bio) % of Net S
Slide 15: 10 Years of Strong Value Creation
10 Years of Strong Value Creation Return on Invested Capital (ROIC) 103.5 67.6 69.5 44.8 44.9 35.6 37.3 31.4 36.2 19.8 ROIC % 40 35 30 25 20 15 10 5 14.3 24.2 32.0 32.1 28.4 31.8 33.9 35.8 28.3 20.1 0 2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2020 Invested Capital (INR Billion) Invested capital
Slide 16: Leading to….Creating Significant Value For Investors
Leading to….Creating Significant Value For Investors Market Capitalization Total Shareholders Return 3,324% Annualized Return 20.3% INR 1,773 Bn INR *As on 31st Dec 50 Bn 2020 INR Billion is INR 100 crore. 2001 2020* Source: Bombay USD 1.1 Bn USD 24.3 Bn Stock Exchange. (1 USD= INR 47.2) (1 USD= INR
Slide 17: A Strong Thrust on Innovation
A Strong Thrust on Innovation 7,000 5.0 4.4 4.3 4.5 6,000 4.0 5,000 3.4 3.5 2.7 Over 80 4,000 3.0 2.5 new 3,000 2.0 1.5 products 2,000 1.5 in 5 years 1,000 1.0 0.5 - - 2016 2017 2018 2019 2020 New Product Sales % Contribution to Domestic Sales # Over 40 New Innovation Projects in Pipeline Nestlé Ind
Slide 18: Rapidly Accelerating our Footprint – Our Actions
Rapidly Accelerating our Footprint – Our Actions Availability, Visibility & Consumer Connect Widen Consumer Portfolio People/Structure Visibility Penetration Connect Map not to scale Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 19: Rapidly Accelerating our Footprint – Overall Reach
Rapidly Accelerating our Footprint – Overall Reach Strengthening Our Distribution Muscle Indirect Nestlé Direct Reach Total Reach (Nielsen) 3.3 2020 1.4 4.7 3.3 2019 1.3 4.6 3.2 2018 1.3 4.5 2.9 2017 1.3 4.2 2.7 2016 1.3 4.0 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th F
Slide 20: Rapidly Accelerating our Footprint - RURBAN
Rapidly Accelerating our Footprint - RURBAN Enhancing Rural Reach Villages Covered Wholesale HUB Small Distributors 89,288 2019 2,780 7,012 51,584 2018 1,818 6,657 8,909 2017 916 ~ 120,000 6,447 villages by end 1000 2024 2016 976 6,486 7935 Consistent presence across all Urban towns in last 5 years
Slide 21: Rapidly Accelerating our Footprint – New Channels
Rapidly Accelerating our Footprint – New Channels GROWING CONTRIBUTION OF E- COMMERCE TO DOMESTIC SALES 2016 2017 2018 2019 2020 3.7 2020 E-Commerce grew by 111% 1.9 1.3 2020 0.9 2019 2018 0.6 2017 2016 Contribution Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021
Slide 22: Consistent Media Support to Our Brands
Consistent Media Support to Our Brands 9 8 7 6 5 4 3 2 1 1.0x 0.9x 1.3x 1.4x 1.3x 1.0y 0.6y 1.3y 1.6y - 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Note: Year values have been indexed taking 2016 as the base A&SP Spend Note: Quarter values have been indexed taking Q1 2020 as the base Nestlé Ind
Slide 23: Navigating Commodity Headwinds
Navigating Commodity Headwinds Milk SMP 166 123 115 133 111 118 Milk 100 98 SMP 27% 100 99 10% Wheat Green Coffee 119 110 112 110 100 114 114 105 100 99 Wheat 10% Green Coffee 6% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Indexed with base 2016 Nestlé India - Financial Analyst and Institution
Slide 24: People Matter @ Nestlé
People Matter @ Nestlé 40 25.0 180 Higher due to COVID 14 35 Related Cost and Long 160 Term Compensation 20.0 1.4x Arrangements 12 30 1.3x 140 15.0 1.2x 11.3 10 1.1x 120 9.6 10.0 10.0 10.2 1.0x 25 10.0 100 8 20 80 5.0 6 15 60 - 4 10 40 (5.0) 5 2 20 9.0 10.2 11.2 12.6 15.0 7.6 7.5 7.6 7.7 7.8 - (10.0
Slide 25: Unwavering Commitment to Sustainability and Tackling Climate Change
Unwavering Commitment to Sustainability and Tackling Climate Change Accelarating our Sustainability Spend 120 Sustainable Packaging 100 80 Commitments on Water 60 40 Responsible Sourcing 20 1.0x 1.6x 1.8x - 2018 2019 2020 Reach Zero Net Green House Gas Emissions Indexed 2018 Nestlé India - Financial
Slide 26: We Continue With Our Proven Growth Model
We Continue With Our Proven Growth Model Brand Salience Competitive advantage Investing and through R&D Innovating expertise Penetration Led Growth Strong Cost and Efficiency Management Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021