Nestle S.a. · SIX:NESN
Nestle — Investor Day (May 2019)
29 slides from Nestle's investor day presentation, May 7, 2019
Slide 1: Winning in PetCare
Winning in PetCare Joe Sivewright CEO, PURINA Americas Nina Leigh Krueger President, North America Pet Food
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 from those contained in the forward looking statements. Potential
Slide 3: Global pet care category is large and growing
Global pet care category PURINA global business US pet care category PURINA US strategy Global pet care category is large and growing Category outlook Regional growth Competitive landscape 7% CAGR Category 2018: CHF 82.5 bn 2018 market share CAGR 2016-2018: +6% CHF North America 24.0% 39%* 42.8% 118
Slide 4: And has strong drivers for continued growth
Global pet care category PURINA global business US pet care category PURINA US strategy And has strong drivers for continued growth Pet population* Pet ownership Emerging markets Total: 844 m % Household penetration Commercial coverage %** 37% 34% 76% 18% 471 m +4.4% 11% 32% 373 m +5.6% Cats Dogs De
Slide 5: Younger generations are more valuable than ever
Global pet care category PURINA global business US pet care category PURINA US strategy Younger generations are more valuable than ever Acquiring pets younger- Stronger future intent to acquire pets** 8 years earlier* Already spend more on pet food/treats*** More likely to want to take pet everywher
Slide 6: Pet care is a highly attractive category
Global pet care category PURINA global business US pet care category PURINA US strategy Pet care is a highly attractive category Strong pet owning culture • Pet ownership highly desirable and aspirational • Pets considered members of the family For retailers • High value shoppers • Top tier traffic
Slide 7: PURINA PetCare has a global presence
Global pet care category PURINA global business US pet care category PURINA US strategy PURINA PetCare has a global presence Key 2018 figures Where What EMENA Sales 27% Dry dog Wet cat Dry cat CHF 12.8 bn 31% 30% 20% AMS AOA 69% 4% Others* Wet dog Underlying TOP 14% 5% 21.6% * Other refers to snacks
Slide 8: Global billion dollar brands
Global pet care category PURINA global business US pet care category PURINA US strategy Global billion dollar brands Source: Euromonitor 2018 edition 8 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 9: A critical contributor to Nestlé growth and profit
Global pet care category PURINA global business US pet care category PURINA US strategy A critical contributor to Nestlé growth and profit % of Group total (2018) Organic growth Underlying TOP* 14.0% 4.5% 21.6% 21.5% Sales 3.0% 15.4% UTOP PURINA PetCare Nestlé Group 2017 2018 2017 2018 * Underlying
Slide 10: May 7, 2019 Nestlé Investor Seminar 2019
10 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 11: US pet care overview & PURINA strategy
US pet care overview & PURINA strategy
Slide 12: US: The largest pet care market in the world
Global pet care category PURINA global business US pet care category PURINA US strategy US: The largest pet care market in the world Pet care category: USD 32 bn* Pet-owning households: 61% own a pet** Pet population: 178 m** High-value shoppers: • High brand loyalty*** • Spend 31% more**** • #2 tri
Slide 13: Expected to deliver continued strong growth
Global pet care category PURINA global business US pet care category PURINA US strategy Expected to deliver continued strong growth US pet care category forecast 6% CAGR USD 42 bn USD 32 bn 2018 2023 forecast Source: Based on Nielsen AOC; Nielsen pet specialty POS (former GfK); 1010data E-Commerce +
Slide 14: Consumer trends shaping the future of pet food category
Global pet care category PURINA global business US pet care category PURINA US strategy Consumer trends shaping the future of pet food category How we feed How we shop How we engage Human food ideologies Omnichannel-savvy and Personalized inform choices for pets informed digital 1st engagement 14 |
Slide 15: PURINA is uniquely well-positioned to win
Global pet care category PURINA global business US pet care category PURINA US strategy PURINA is uniquely well-positioned to win Feeding more than 55 m dogs and 67 m cats** * Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen pet specialty POS (former GfK), 1010data E-Commerce) ** Sourc
Slide 16: Realizing PURINA's growth potential
Global pet care category PURINA global business US pet care category PURINA US strategy Realizing PURINA’s growth potential 1 Accelerate innovation and premiumization 2 Win in high-growth channels 3 Transform through personalization and open innovation 16 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 17: Driving premiumization through innovation
Global pet care category PURINA global business US pet care category PURINA US strategy Driving premiumization through innovation > 80% of pet care category growth from premiumization Organic / responsible Enhanced functional benefits Elevated feeding occasions ingredient sourcing Source: Based on N
Slide 18: Driving premiumization through innovation
Global pet care category PURINA global business US pet care category PURINA US strategy Driving premiumization through innovation 250 Index in Price 100 Source: AOC+PS 12wk ending 12/29/18 (Nielsen AOC, Nielsen pet specialty POS (former GfK) 18 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 19: Making natural accessible to all
Global pet care category PURINA global business US pet care category PURINA US strategy Making natural accessible to all Natural attributes = 41% of pet food category with PURINA #1 Natural brands Elevated feeding occasions Affordable natural Outcome-based nutrition Pet specialty exclusive AOC focus
Slide 20: Elevating science-based nutrition
Global pet care category PURINA global business US pet care category PURINA US strategy Elevating science-based nutrition Outcome-based = 23% of pet food category with PURINA #2 and leading growth Advancing pet health science Veterinary diets Outcome-based nutrition Source: AOC+PS+E-Com 52wk ending
Slide 21: Increasing relevancy of core business
Global pet care category PURINA global business US pet care category PURINA US strategy Increasing relevancy of core business Core = 23% of pet food category with PURINA #1 Renovate to meet evolving consumer needs Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen Pet Specialty POS (form
Slide 22: Win in high-growth channels
Global pet care category PURINA global business US pet care category PURINA US strategy Win in high-growth channels 2018 U.S. pet care category sales by channel -0.6% Pet Specialty 32% E-commerce +57% Mass/Dollar/ 13% Club 36% Grocery +3.4% 19% +1.6% Source: Nielsen AOC, Nielsen pet specialty POS (f
Slide 23: PURINA leads growth in e-commerce channel
Global pet care category PURINA global business US pet care category PURINA US strategy PURINA leads growth in e-commerce channel Category: E-commerce pet care in USD PURINA PetCare USD Sales: E-commerce Pure play Store based 0.8 bn 90% 10% E-commerce share of total category 25% 0.1 bn 13% 2% 4% 201
Slide 24: Critical pillars for future growth in e-commerce
Global pet care category PURINA global business US pet care category PURINA US strategy Critical pillars for future growth in e-commerce Pure play Store-based Direct-to-consumer Win the digital shelf Drive adoption & win early Drive loyalty 24 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 25: Transform through personalization
Global pet care category PURINA global business US pet care category PURINA US strategy Transform through personalization Applying insights from other regions Digital solutions Customized pet food solutions 25 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 26: Transform through open innovation
Global pet care category PURINA global business US pet care category PURINA US strategy Transform through open innovation 26 | May 7, 2019 | Nestlé Investor Seminar 2019
Slide 27: Sustainability and creating shared value
Global pet care category PURINA global business US pet care category PURINA US strategy Sustainability and creating shared value for individuals & for our communities for the planet families Enabling healthier and Helping develop thriving, Stewarding resources for happier lives resilient communities
Slide 28: Key takeaways
Global pet care category PURINA global business US pet care category PURINA US strategy Key takeaways • Portfolio of leading brands, built on deep consumer insights, and delivering relevancy and personalization • Unsurpassed knowledge of pet nutrition • World-class R&D driving unrelenting innovation
Slide 29: We will lead, others will follow.
We w ill lead, others w ill follow. 29 | May 7, 2019 | Nestlé Investor Seminar 2019