Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2024)
31 slides from Nestle's investor day presentation, Nov 19, 2024
Slide 1: Accelerating Nestlé
Accelerating Nestlé Laurent Freixe Chief Executive Officer
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: Contents
Contents Building on Nestlé’s strengths and core mission Driving operational excellence Unlocking our full portfolio potential Strengthening foundational capabilities Accelerating Nestlé to perform and transform 3 November 19, 2024
Slide 4: Deep Nestlé experience driving continuous growth
Deep Nestlé experience driving continuous growth My history at Nestlé Broad Prioritizing organic Biggest frontline experience growth and productivity career learnings Delivering in all 16 years on market conditions Growth is Executive Board of the essence Building new businesses Three times Zone CEO
Slide 5: Moving forward at pace
Moving forward at pace First 80 days as CEO Strategy developed Intensive engagement Putting the ‘action’ and in place with stakeholders into the action plan Top-to-bottom colleague Created alignment Strategy development with engagement across our teams leadership teams Market and business Launched r
Slide 6: Nestlé's power is in being the 'most global' and the 'most local'
Nestlé’s power is in being the ‘most global’ and the ‘most local’ Unique market presence and capabilities Global scale Leadership Unmatched and geographic positions across product & footprint all categories brand portfolio Local power Scaled R&D ecosystem Strong foundations with unrivalled with lead
Slide 7: Nestlé is the Nutrition, Health and Wellness company
Nestlé is the Nutrition, Health and Wellness company • Our ambition is to bring tasty and balanced diets within reach for billions. • Our brands play a role in the diet of everyone, everywhere at every stage of life. • We enhance quality of life for people & pets and address key consumer needs throu
Slide 8: Strengths underpin long-term results but 2024 performance weaker
Strengths underpin long-term results but 2024 performance weaker Last 10 years 4.7% 110 bps 7.1% 3.4% organic sales UTOP1 margin underlying EPS DPS growth growth p.a. increase growth p.a. (ccy) (in CHF) annual average 2014-23 2023 vs 2014 annual average 2014-23 annual average 2014-23 But in 2024 ~2%
Slide 9: Structural trends present significant opportunities
Structural trends present significant opportunities Health for life Good4me, holistic health, healthy ageing ‘Smart shopping’ Affordable & premium winning New & elevated experiences New flavors & textures, world food Mindful snacking & ready to drink/eat On-the-go, take home, delivery Always-on-digi
Slide 10: Our plans and what shareholders should expect
Our plans and what shareholders should expect Positioned to win in our markets Improving financial performance • Inherent strengths and competitive advantages • Growth plan supports 4%+ organic sales growth in the medium term • Portfolio gives exposure to the right categories • RIG-led growth from d
Slide 11: Strategic Virtuous Circle is our framework
Strategic Virtuous Circle is our framework 11 November 19, 2024 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value
Slide 12: Clear action plan to drive performance and transformation
Clear action plan to drive performance and transformation Drive operational excellence Unlock full portfolio potential Strengthen foundations 1. Sharpen value propositions 5. Expand winners 8. Engage our people 2. Focus our innovation 6. Build new growth engines 9. Digitalize end-to-end 3. Step up i
Slide 13: Action plan to drive two key outcomes
Action plan to drive two key outcomes Perform deliver superior, sustainable and profitable growth Transform shape the long-term future of Nestlé 13 November 19, 2024
Slide 14: Contents
Contents Building on Nestlé’s strengths and core mission Driving operational excellence Unlocking our full portfolio potential Strengthening foundational capabilities Accelerating Nestlé to perform and transform 14 November 19, 2024
Slide 15: Sharpening our value propositions to achieve superiority
Sharpening our value propositions to achieve superiority 1. Sharpen our value propositions Execute the basics on consumer offering Prioritize consumers… • Leverage data for better insights • Respond quickly to shifting demand Product preference: 60/40 Good Taste win rates • Tailor experiences for de
Slide 16: Focus our innovation for greater impact: fewer, bigger, better
Focus our innovation for greater impact: fewer, bigger, better 2. Focus our innovation • Clear prioritization on select global, regional Winning value proposition and local “big bets” Multi-market launch plans to drive speed to scale End-to-end governance to ensure higher ROI • Optimized and sustain
Slide 17: Increasing investment to drive growth and support our brands
Increasing investment to drive growth and support our brands 3. Step up investment • Consumer-facing investment reduced by cumulative CHF 5bn over the last 3 years • Step up in advertising and marketing spend to 9% of sales to support brands and growth platforms • Investment will also be more focuse
Slide 18: Delivering cost efficiencies to fund the increased investment
Delivering cost efficiencies to fund the increased investment 4. Achieve efficiencies • Targeting incremental cost savings of CHF 2.5 billion by the end of 2027, in addition to existing efficiency initiatives • Key initiatives already underway • Procurement • Commercial investment • Operational effi
Slide 19: Contents
Contents Building on Nestlé’s strengths and core mission Driving operational excellence Unlocking our full portfolio potential Strengthening foundational capabilities Accelerating Nestlé to perform and transform 19 November 19, 2024
Slide 20: Unlocking full portfolio potential means global plus regional platforms
Unlocking full portfolio potential means global plus regional platforms Global platforms 62%* Regional platforms 38%* 31 billionaire brands Nutrition & Health Science Waters & Other PetCare Dairy Confectionery Coffee Food Non-exhaustive examples 20 November 19, 2024 * % of 2023 sales
Slide 21: Accelerating our categories through expanding existing strengths
Accelerating our categories through expanding existing strengths 5. Expand winners Examples • 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 channe
Slide 22: Building new growth platforms to drive the growth of the future
Building new growth platforms to drive the growth of the future 6. Build new growth platforms Examples • Opportunities capturing emerging global themes, shaped by consumer needs • Modern cooking & eating • GLP-1 nutritional support • Prioritized by size of the prize and Nestlé’s Women’s health abili
Slide 23: Addressing underperformers to support growth
Addressing underperformers to support growth 7. Address underperformers Examples • Be more systematic in our approach Creamers US • Key issues: capacity issues, innovation, price points • Diagnose the issues • Next action: scale new capacity Nespresso Western Europe • Key issues: compatible competit
Slide 24: Creating a standalone Waters business to unlock value
Creating a standalone Waters business to unlock value 7. Address underperformers • Nestlé waters and premium beverages activities will become a standalone business as of 1 January, 2025. • The strategy for the business will be evaluated – includes exploring partnership opportunities. • Focus is to u
Slide 25: Contents
Contents Building on Nestlé’s strengths and core mission Driving operational excellence Unlocking our full portfolio potential Strengthening foundational capabilities Accelerating Nestlé to perform and transform 25 November 19, 2024
Slide 26: Engaging our people to increase alignment and ownership
Engaging our people to increase alignment and ownership 8. Engage our people • Culture Winning mindset; it’s not enough to be the biggest, must be the best • Organization Simplified organization to increase alignment and ownership • Ways of working Clarity on what should be defined globally (e.g. di
Slide 27: Digitalizing to be a real-time, end-to-end connected enterprise
Digitalizing to be a real-time, end-to-end connected enterprise 9. Digitalize end-to-end Be digital • End-to-end real-time connected agile operations Consumer Regenerative insights sourcing Procure- ment Manu- facturing Logistics Customers Consumers Recycling Personalization at scale • Customer and
Slide 28: Embedding sustainability to drive long-term positive impact
Embedding sustainability to drive long-term positive impact 10. Embed sustainability • Focusing on long-term positive impact that matters to the planet and our stakeholders Climate Regenerative Circularity Agriculture • Climate • Regenerative agriculture Net Zero Regenerative Packaging & Food Waste
Slide 29: Contents
Contents Building on Nestlé’s strengths and core mission Driving operational excellence Unlocking our full portfolio potential Strengthening foundational capabilities Accelerating Nestlé to perform and transform 29 November 19, 2024
Slide 30: Strategic Virtuous Circle brings it all together
Strategic Virtuous Circle brings it all together 30 November 19, 2024 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value
Slide 31: Key takeaways driving performance and transformation
Key takeaways driving performance and transformation • Clear plan focused on accelerating Nestlé • Step-up in investment in advertising & marketing to 9% of sales by end of 2025 to support growth • Incremental cost savings of CHF 2.5bn by end of 2027, in addition to existing initiatives • Nestlé’s w