Slide 1: Nestlé CAGNY 2025
Nestlé CAGNY 2025 Laurent Freixe, CEO, Nestlé Steve Presley, CEO, Zone Americas
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: Accelerating Nestlé, Zone Americas in action, Key takeaways
Accelerating Nestlé Zone Americas in action Key takeaways 3 February 21, 2025 CAGNY - 2025
Slide 4: Nestlé Good food, Good life
GRE Nestlé Good food, Good life
Slide 5: Nestlé Group at a glance
Powdered & Liquid PetCare Nutrition & Prepared dishes Beverages Health Science & cooking aids Europe 24% Americas 27% 21% 17% 12% 49% AOA Milk products Confectionery Water & ice cream 27% 11% 9% 3% Number of employees R&D spend Factories 277 000 CHF 1.7 bn 337 Total Nestlé Group, including all busin
Slide 6: Within reach for billions of people and pets
within reach for billions for people & pets and address key consumer needs through food, nutrition & beverages backed by science-based innovation of everyone, everywhere at every stage of life February 21, 2025 CAGNY - 2025
Slide 7: Solid 2024 performance, increasing growth and investment in 2025
Solid 2024 performance, increasing growth and investment in 2025 2024 2025 Medium-term actual guidance* guidance Improving 4%+ Organic 2.2% compared to 2024 in normal sales growth market conditions Underlying trading 17.2% At or above 16% 17.0%+ as we invest for growth operating profit margin * Guid
Slide 8: Efficiency & productivity, Investment for growth, Value creation
Efficiency & productivity Investment for growth Value creation NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value February 21, 2025 CAGNY - 2025
Slide 9: 'Fuel for Growth', CHF 2.5bn savings by 2027
‘Fuel for Growth’, CHF 2.5bn savings by 2027 Sources of savings Phasing of savings, CHF bn Procurement 2.5 Non-recurring • Spend consolidation & aggregation Recurring 2.3 • AI-powered procurement and supplier management • e-sourcing expansion and automation Operational efficiency 1.4 • Manufacturing
Slide 10: Expand winners, scale big bets, build new growth platforms
4%+ 3-4% • Expand winners • Scale big bets • Build new growth platforms • Address underperformers Nestlé Accelerate Improve Nestlé category category market organic growth growth share growth February 21, 2025 CAGNY - 2025
Slide 11: Strengthen our global platforms
• Strengthen our global platforms - Coffee: out of home, ready to drink - PetCare: AOA & LATAM, therapeutics & supplements • Expand most successful brands - KitKat, Maggi • Increase exposure to growing channels - E-commerce, convenience, value retailers February 21, 2025 CAGNY - 2025
Slide 12: February 21, 2025 CAGNY - 2025
February 21, 2025 CAGNY - 2025
Slide 13: Opportunities capturing emerging global themes
Opportunities capturing emerging global themes, shaped by consumer needs • Weight management and GLP-1 companions • Nutrition for women’s health • Healthy longevity • Affordable diet February 21, 2025 CAGNY - 2025
Slide 14: Status for key underperformers before corrective actions
Winning value proposition Status for 18 key underperformers Examples of before corrective actions improvement Irresistible product superiority Wyeth – Greater China Unbeatable value Frozen pizza – US Unmissable visibility Coffee creamers – US Compelling brand communications Soluble coffee – Europe F
Slide 15: Updated strategy and organizational changes
• Updated strategy • Organizational changes implemented - Zone structure and reporting lines simplified - Waters & premium beverages reorganized - Digital & sustainability elevated • Cascaded the execution plans - Operational Master Plan (OMP) 15 February 21, 2025 CAGNY - 2025
Slide 16: Zone Americas
Zone Americas Steve Presley
Slide 17: Nestlé in the Americas at a glance
Petcare Coffee Food Health Nutrition incl. DCS* incl. Nespresso & enhancers science NA 30% 20% 13% 10% 8% 72% LATAM Confectionery Professional Dairy Water Ice Cream incl. US RTD 28% 7% 5% 3% 3% 1% 100 K 24 121 27 ~70% Employees Countries Factories Billionaire brands sales in leadership position Note
Slide 18: Breakfast, Snacking, Lunch, Dinner
Breakfast Snacking Lunch Dinner Indulgent moments Out-of-home February 21, 2025 CAGNY - 2025
Slide 19: Nestlé's largest business
Nestlé’s largest business Well positioned to capture future growth via CHF 45 bn • Leadership in high-growth/-potential FY-2024 sales categories (coffee, pet) • Exposure to emerging economies with +6.3% >21.0% growing middle class • Young consumers passionate about 6-year average OG UTOP margin 2019
Slide 20: Efficiency & productivity, Investment for growth, Value creation
Efficiency & productivity Investment for growth Value creation NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value February 21, 2025 CAGNY - 2025
Slide 21: Efficiency & productivity, Investment for growth, Value creation
Efficiency & productivity Investment for growth Value creation NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value February 21, 2025 CAGNY - 2025
Slide 22: Leverage scale across group
• Leverage scale across group (e-sourcing, supplier management) • End-to-end design to value • Enterprise business planning (planning intelligent center) • Streamlined operating model (shared service expansion) • Total commercial spend optimization implementation • Reduction of non-working spend 22
Slide 23: Efficiency & productivity, Investment for growth, Value creation
Efficiency & productivity Investment for growth Value creation NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value February 21, 2025 CAGNY - 2025
Slide 24: February 21, 2025 CAGNY - 2025
24 February 21, 2025 CAGNY - 2025
Slide 25: February 21, 2025 CAGNY - 2025
25 February 21, 2025 CAGNY - 2025
Slide 26: Deep consumer insights, World class R&D
Deep consumer insights World class R&D *@currency exchange rate excluding Venezuela 26 February 21, 2025 CAGNY - 2025
Slide 27: Pro Plan veterinary diets & supplements
Total addressable market: >CHF 5 bn >20% Average OG Pro Plan veterinary diets & supplements sales U.S. 27 February 21, 2025 CAGNY - 2025
Slide 28: Tailored innovation with world-class R&D
Tailored innovation with Collaborating with Serving consumer needs world-class R&D key opinion leaders with Vet Direct D2C 28 February 21, 2025 CAGNY - 2025
Slide 29: February 21, 2025 CAGNY - 2025
29 February 21, 2025 CAGNY - 2025
Slide 30: Consistent double-digit growth expected
Consistent double-digit growth expected CPG E-Commerce Sales (Global)2 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Note: Nestlé in the Americas, includes Zone & globally managed businesses FY 2024 @constant exchange rate excl. Venezuela & NWNA Divestment 1. e-intensity defined as % of sal
Slide 31: Irresistible product superiority, Unmissable visibility
Irresistible “product” Unmissable superiority Visibility Setting new standards for product In developing markets scale Accelerate eB2B across experience on mature markets & learnings fast and be brilliant at the traditional trade, with market coverage winning categories (Pet & Coffee) basics and eng
Slide 32: February 21, 2025 CAGNY - 2025
32 February 21, 2025 CAGNY - 2025
Slide 33: Coffee performance and consumer trends
Performance Consumer trends More More 9.8 bn consumers consumption occasions 2024 sales, CHF Gen Z entering coffee Refreshment 4 years earlier Personalization 8.9% 6-year average OG (2019-24) 36% Market share in-home1 Note Nestlé in the Americas; Results FY 2024 (Coffee & Coffee Enhancers) 1: Market
Slide 34: Irresistible product superiority
• Irresistible product superiority • Hacking iced coffee creations with easy customisation • Multi-market launch in Z-AMS 34 February 21, 2025 CAGNY - 2025
Slide 35: U.S. launch results and market expansion
Results U.S. launch Market expansion Compelling brand Unmissable Irresistible product communications Visibility superiority 2/3 Of volume incremental 332 Gen Z index 8% Share in L4 weeks Source: Circana week ending 02/02/25; SS Liq Concentrate – Coffee *includes Nescafe & SBUX Concentrate 35 Februar
Slide 36: February 21, 2025 CAGNY - 2025
36 February 21, 2025 CAGNY - 2025
Slide 37: Value imbalance: Unbeatable value
Diagnosis Value Imbalance Pricing pressure +15% from commodities Above category pricing 21-23 Unbeatable Value ✓ 95% of portfolio in $4-6 price range Actions ✓ Leveraging breadth of the portfolio Source: Circana Average price vs. rest of market 2021-2023 period 37 February 21, 2025 CAGNY - 2025
Slide 38: Peak Covid demand: diagnosis and actions
Diagnosis Peak Covid demand Significant simplification of -25% portfolio & innovation Total distribution points deceleration chg. 2019-’23 Irresistible product Unbeatable Compelling brand Unmissable Actions superiority value communications visibility Focus on taste Fixing value slopes Investing in R
Slide 39: Nestlé Good food, Good life
GRE Nestlé Good food, Good life y ey: Laurent Fi
Slide 40: Moving fast to change Nestlé
Creating ‘Fuel for Growth’ Investing to accelerate performance Organization aligned Moving fast to change Nestlé 40 February 21, 2025 CAGNY - 2025