Nestle S.a. · SIX:NESN
Nestle — Investor Day (2002)
21 slides from Nestle's investor day presentation, 2002
Slide 1: Zone Americas
Zone Americas Carlos Represas Nestlé Investor Seminar Nestlé Investor Seminar : Carlos Represas
Slide 2: Forward looking statements
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. Potential
Slide 3: Zone Americas: update
Zone Americas: update • A major contribution to the Group • Presence in the Americas • Building and leveraging competitive advantages 3 Nestlé Investor Seminar : Carlos Represas
Slide 4: A major and growing contributor to the Group
A major and growing contributor to the Group CHF mio Group Zone AMS Zone AMS YTD June 2002 % June 2002 % year 2001 Sales Group 44'219 32.8% 31.4% - Zones 35'816 40.5% 38.7% - Zone AMS 14'513 - - Results (EBITA) Group 5'195 37.4% 36.4% - Zones 4'677 41.5% 39.6% - Zone AMS 1'943 - - 4 Nestlé Investor
Slide 5: Other contributions from the Americas
Other contributions from the Americas Zone AMS Management structure excludes: Global Sales * % in AMS - Waters 4'000 51% - Pharma 2'700 64% - CPW** 450 17% - BPW** 140 47% * Figures in CHF mio for Jan - June 2002 ** CPW & BPW sales figures at 50% 5 Nestlé Investor Seminar : Carlos Represas
Slide 6: Contribution
Contribution 2001 2001 2002* Sales mio CHF Jan/June Year Jan/June Zone AMS 12’290 25'598 14'513 USA & Canada 6’925 15'548 9'179 % of Zone 56% 58% 63% * Jan-June 2002 includes Nestlé Purina 6 Nestlé Investor Seminar : Carlos Represas
Slide 7: Presence in the Americas
• Presence in the Americas 7 Nestlé Investor Seminar : Carlos Represas
Slide 8: Zone Americas
Zone Americas 45 countries (incl. Caribbean Islands) 4 markets (+ Nestlé Purina Petcare Latin America & Caribbean) 5 regions 123 factories on Jan. 1st 2002 (21 Purina) 4 major languages (English, Spanish, Portugese and French) 7 time zones 8 Nestlé Investor Seminar : Carlos Represas
Slide 9: Regional organisation to optimise synergies
Regional organisation to optimise synergies United States (NUSA - NPPC - NICC) Mexico Brazil Canada Austral-America Region (Chile, Argentina, Peru, Bolivia, Paraguay & Uruguay) Bolivarian Region (Colombia, Venezuela & Ecuador) Central American Region (Panama, Guatemala, El Salvador, Costa Rica, Nica
Slide 10: A long tradition of manufacturing
A long tradition of manufacturing • Last quarter 19th century: imported Sweetened Condensed Milk and Baby Cereal (North + South) • 1900: first factory in the USA • 1921: first factory in Brazil • 1930: first factory in Argentina and Cuba • 1935: first factory in Mexico 10 Nestlé Investor Seminar : C
Slide 11: Strong market positions 2001
Strong market positions 2001 COUNTRY SALES: CHF mio POSITION* USA 13'800 2 Mexico 3'500 1 Brazil 3'200 1 Canada 1'600 2 Chile 800 1 Colombia 500 2 Argentina 500 6 Venezuela 400 5 Nestlé's strongest positions are in its largest markets * Diversified Food companies 11 Nestlé Investor Seminar : Carlos
Slide 12: Zone AMS evolution: (YTD June 2002)
Zone AMS evolution : (YTD June 2002) • Higher RIG, 3.6% vs 2.9%, in spite of crisis Improved in North America but also positive in Latin America • Significantly improved EBITA margin both in North and Latin America • Exchange rate variations wiped out 38% of the sales value from net acquisitions • A
Slide 13: Nestlé presence in the Americas: conclusions
Nestlé presence in the Americas: conclusions • Leadership or number 2 position in all major markets • All markets and regions create value above or close to Group average • All product categories create value • Top level international managers with long experience in local markets • Long standing ex
Slide 14: Building and leveraging competitive advantages
• Building and leveraging competitive advantages 14 Nestlé Investor Seminar : Carlos Represas
Slide 15: Efficient manufacturing
Efficient manufacturing • Efficient manufacturing - Aggressively pursuing plant rationalisation & borderless factories - Agreed concentration of factories for: Spray dried coffee to 5 from 10 Infant Formula to 3 from 8 Infant Cereal to 3 from 7 Condensed Milk to 4 from 8 - Further enhancing product
Slide 16: COGS in % of NPS
MH 97 - Zone AMS achievements (CHFmio) 55% 53.4% 53.8% 53.8% 53.8% 53.4% COGS in % of NPS 158 52.0% 53% 385 53.1% 676 51.0% 52.0% 51% 1'005 50.5% 1'329 49% 49.0% 1'660 47% 46.5% 45% 45.0% 1996 1997 1998 1999 2000 2001 2002 Estimate Without Improvements With Improvements 16 Nestlé Investor Seminar :
Slide 17: Optimal organization
Optimal organization • New Austral-America and Caribbean regions • Regional management of Petcare (NPPC North America; NPP Latin America & Caribbean) • Implemented GLOBE Centers (Sao Paulo & Glendale, Cal.). On track to go live in pilot region (Chile, Peru, Bolivia) • New planning process (MBS). Imp
Slide 18: Reinforcing market positions
Reinforcing market positions • Petcare - acquisition of Ralston Purina • Ice Cream - full ownership of Häagen-Dazs and agreement with Dreyers • Frozen Food - acquisition of Chef America • Confections - acquisition of Garoto (Brazil) • Soluble Coffee - fast expansion in OOH 18 Nestlé Investor Seminar
Slide 19: Progress in Dairy Partners America
Progress in Dairy Partners America (Nestlé alliance with Fonterra) • Contracts ready for first level JV (Argentina, Brazil, Venezuela) • Agreed acquisition of Fonterra Milk Partners businesses: over 50'000 tons • Have started valuation for second level JV (Ecuador, Colombia, Trinidad) • Expected to
Slide 20: In summary
In summary • Nestlé is the best positioned diversified food manufacturer in the Americas • Truly GLOCAL • Nestlé will leverage its leading position throughout the continent to build market share and further improve returns 20 Nestlé Investor Seminar : Carlos Represas
Slide 21: Zone Americas
Zone Americas 21 Nestlé Investor Seminar Nestlé Investor Seminar : Carlos Represas