Nestle S.a. · SIX:NESN
Nestle — CECP Conference, New York 2019
20 slides from Nestle's conference presentation, Feb 25, 2019
Slide 1: Delivering results with a long-term winning strategy
Delivering results with a long-term winning strategy Mark Schneider: Chief Executive Officer, Nestlé, S.A. 1 | February 25, 2019 | CECP Conference, New York
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: Delivering results with a long-term winning strategy
Delivering results with a long-term winning strategy • Our purpose and our business • Pursuing a long-term value creation model with a sense of urgency • Creating shared value for shareholders and society • Contributing to healthier lives • Supporting communities • Leading the way to a waste-free fu
Slide 4: Our purpose
Our purpose & business Long-term value creation Creating Shared Value Consistent results Our purpose Enhancing quality of life and contributing to a healthier future 4 | February 25, 2019 | CECP Conference, New York
Slide 5: Our business
Our purpose & business Long-term value creation Creating Shared Value Consistent results Our business Sales CHF 91.4 bn in 2018 Where What EMENA Beverages Nutrition & Milk products PetCare 29% (incl. coffee) Health Science & ice cream 24% 18% 14% 14% Prepared dishes Confectionery Water AOA & cooking
Slide 6: Pursuing our Nutrition, Health and Wellness strategy
Our purpose & business Long-term value creation Creating Shared Value Consistent results Pursuing our Nutrition, Health and Wellness strategy • Food and beverages are core • Healthy, delicious, convenient products for modern time-constrained lifestyles • Premiumization in developed and emerging mark
Slide 7: Our long-term value creation model
Our purpose & business Long-term value creation Creating Shared Value Consistent results Our long-term value creation model Balanced pursuit of top-line and bottom-line growth with capital efficiency Increase Growth Improve Margins Allocate Capital Maximize Reach mid-single digit Reach underlying Pr
Slide 8: Cranking up our innovation engine
Our purpose & business Long-term value creation Creating Shared Value Consistent results Cranking up our innovation engine Science and consumer-driven innovation… …brought to market faster Science-based Organic / Natural Food Intolerance Local Origins Packaging Plant-Based Personalized Nutrition Rea
Slide 9: Developing our portfolio
Our purpose & business Long-term value creation Creating Shared Value Consistent results Developing our portfolio Sold Under strategic Acquired or invested review Main criteria for divestiture Main criteria for acquisitions • Non-core to business • Fit with strategy, culture and price • Limited abil
Slide 10: Creating Shared Value
Our purpose & business Long-term value creation Creating Shared Value Consistent results Creating Shared Value Creating Shared Value Sustainability For Individuals For our For the Planet and Families Communities Compliance Fundamental to business: Optimizing value for Focusing on areas of greatest i
Slide 11: Nestlé's materiality assessment: Importance to stakeholders
Our purpose & business Long-term value creation Creating Shared Value Consistent results Nestlé’s materiality assessment • Natural resource and water • Supply chain stewardship stewardship • Over- and under-nutrition • Climate change Major Importance to stakeholders • Women’s empowerment • Rural dev
Slide 12: Key issues, sample initiatives and partnerships
Our purpose & business Long-term value creation Creating Shared Value Consistent results Key issues, sample initiatives and partnerships Over and under-nutrition Improving the nutrition profile of our products Supply chain stewardship Responsible sourcing and supply-chain stewardship Food and produc
Slide 13: Contributing to healthier lives: Improving the nutritional profile of our products
Our purpose & business Long-term value creation Creating Shared Value Consistent results Contributing to healthier lives: Improving the nutritional profile of our products Over 1300 improved products launched for babies, R&D drives our health and wellness journey: Improved children, expecting and ne
Slide 14: Supporting communities: Responsible sourcing and supply-chain stewardship
Our purpose & business Long-term value creation Creating Shared Value Consistent results Supporting communities: Responsible sourcing and supply-chain stewardship Supporting farming livelihoods and practicing Building sustainability into a competitive responsible sourcing to safeguard supply chains
Slide 15: Leading the way to a waste-free future: Packaging
Our purpose & business Long-term value creation Creating Shared Value Consistent results Leading the way to a waste-free future: Packaging Making 100% of our packaging recyclable Supporting a fundamental shift in society: or reusable by 2025 Product, infrastructure, behavior 15 | February 25, 2019 |
Slide 16: Fostering diversity and inclusion: Investing in human capital
Our purpose & business Long-term value creation Creating Shared Value Consistent results Fostering diversity and inclusion: Investing in human capital Raising the bar on gender-balance inspires Investing in youth employment opportunities ingenuity and innovation yields high returns 16 | February 25,
Slide 17: Our long-term approach delivers strong total shareholder returns
Our purpose & business Long-term value creation Creating Shared Value Consistent results Our long-term approach delivers strong total shareholder returns Consistent TSR* Performance CHF 118 billion returned to shareholders since 2008 2008–2018 10 year 5 year 3 year 1 year Nestlé 250% 55% 13% 2% CHF
Slide 18: 2018 results
Our purpose & business Long-term value creation Creating Shared Value Consistent results 2018 results Organic Underlying Underlying EPS Free cash flow Return on growth trading operating (% annual increase in (CHF bn) invested capital constant currency) profit margin 17.0% +13.9% 16.5% 12.1% 10.8 3.0
Slide 19: Aligning the interest of key stakeholders: Strong governance
Our purpose & business Long-term value creation Creating Shared Value Consistent results Aligning the interest of key stakeholders: Strong governance supports sustainable value creation Year Added Nationality Public Company Int’l Business FMCG Retail / Brand Financial Technology Gov’t /NGO to Board
Slide 20: Pulling it all together
Pulling it all together Through enhancing quality of life and contributing to a healthier future, we create value for shareholders and society, we deliver sustainable, industry-leading financial performance. 20 | February 25, 2019 | CECP Conference, New York