Slide 1: Welcome to the Full-Year Results Conference
Welcome to the Full -Year Results Conference
Slide 2: Disclaimer
This presentation contains forward looking statements which reflect Management’s current views and estimates. Disclaimer 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: Full-Year Results Conference – Paul Bulcke, Nestlé CEO
Full -Year Results Conference Paul Bulcke Nestlé CEO
Slide 4: Executive Board
Executive Board Paul Bulcke Luis Cantarell José Lopez Laurent Freixe Chris Johnson Patrice Bula Nandu Nandkishore Wan Ling Martello Stefan Catsicas Marco Settembri Peter Vogt Martial Rolland David Frick 4 13 February, 2014 Full-Year Results Conference
Slide 5: Full-Year Results Conference
Full -Year Results Conference
Slide 6: Wan Ling Martello, Chief Financial Officer
Full -Year Results Conference Wan Ling Martello Chief Financial Officer
Slide 7: 2013 Highlights
2013 Highlights Sales Trading Operating Operating Cash Flow Profit & Margin CHF 92.2 bn CHF 14.0 bn CHF 15.0 bn +4.6% OG 15.2%, +20 bps +3.1% RIG +40 bps in constant Underlying EPS in currencies constant currencies +11.0% 7 February 13th, 2014 Nestlé Full Year Results 2013
Slide 8: Trading Operating Profit Margin
Trading Operating Profit Margin +10 -60 +70 +40 -40 Trading operating profit margin TOP 15.2% +20 bps +40 bps TOP in constant currency 15.0% +100 Consumer facing marketing +16.3% in constant currency FY 2012 COGS Distribution Marketing Admin. Net Other FY 2013 Trading Expense TOP = Trading Operating
Slide 9: Income Statement
Income Statement As % of sales Difference in Full Year Full Year basis points/% 2012 2013 (rounded) Trading operating profit 15.0 15.2 +20 Net other operating income/expense (0.1) (1.0) -90 Operating profit 14.9 14.2 -70 Net financial income/expense (0.8) (0.7) 10 Profit before taxes and associates
Slide 10: Operating Cash Flow and Working Capital
Operating Cash Flow and Working Capital 15.7 bn Operating cash flow 15.0 bn Another decrease in 2.0 bn Working Capital 1.4 bn 2012 2013 10 February 13th, 2014 Nestlé Full Year Results 2013
Slide 11: Regional Growth
Regional Growth % RIG % OG 7.4 Emerging Markets 5.1 + 9.3% OG 5.9 0.8 Developed Markets 2.1 1.9 Asia, +1.0% OG Americas Europe Oceania & Africa Sales 40.0 25.5 26.7 CHF bn rounded 11 February 13th, 2014 Nestlé Full Year Results 2013
Slide 12: Operating Segments Growth
Operating Segments Growth % RIG % OG 8.2 5.3 5.6 5.4 4.8 2.0 4.5 4.4 2.2 0.8 2.0 1.7 Zone Zone Zone Nestlé Nestlé Other Americas Europe Asia, Oceania Waters Nutrition & Africa Sales 28.4 15.6 18.9 7.2 9.8 12.3 CHF bn rounded 12 February 13th, 2014 Nestlé Full Year Results 2013
Slide 13: Zone Americas
Zone Americas % RIG % OG 5.3 1.7 13 February 13th, 2014 Nestlé Full Year Results 2013
Slide 14: Zone Europe
Zone Europe % RIG % OG 2.2 0.8 14 February 13th, 2014 Nestlé Full Year Results 2013
Slide 15: Zone Asia, Oceania and Africa
Zone Asia, Oceania and Africa % RIG % OG 5.6 4.8 15 February 13th, 2014 Nestlé Full Year Results 2013
Slide 16: Nestlé Waters
Nestlé Waters % RIG % OG 2.0 2.0 16 February 13th, 2014 Nestlé Full Year Results 2013
Slide 17: Nestlé Nutrition
Nestlé Nutrition % RIG % OG 8.2 4.5 17 February 13th, 2014 Nestlé Full Year Results 2013
Slide 18: Other
Other % RIG % OG 5.4 4.4 18 February 13th, 2014 Nestlé Full Year Results 2013
Slide 19: Operating Segments Margin Evolution
Operating Segments Margin Evolution FY 2012 TOP% FY 2013 TOP% +80 bps -50 bps -10 bps 20.0 18.9 +20 bps 18.2 17.7 -40 bps 15.0 +50 bps 9.4 Zone Zone Zone Nestlé Nestlé Other Europe Americas Asia, Oceania Waters Nutrition & Africa TOP = Trading Operating Profit 19 February 13th, 2014 Nestlé Full Year
Slide 20: Product Groups Growth
Product Groups Growth % RIG % OG 6.8 5.8 5.0 4.6 4.6 4.4 2.9 2.9 0.3 0.0 Powdered & Milk Products Prepared Dishes Confectionery PetCare Liquid Beverages & Ice Cream & Cooking Aids Sales 20.5 17.4 14.2 10.3 11.2 CHF bn rounded 20 February 13th, 2014 Nestlé Full Year Results 2013
Slide 21: Product Groups Margin Evolution
Product Groups Margin Evolution FY 2012 TOP% FY 2013 TOP% +70 bps 22.7 -60 bps -100 bps 19.2 -40 bps -90 bps 15.9 15.2 13.2 Powdered Milk Products Prepared Dishes Confectionery PetCare & Liquid & Ice Cream & Cooking Aids Beverages TOP = Trading Operating Profit 21 February 13th, 2014 Nestlé Full Yea
Slide 22: 2013 Full Year Summary
2013 Full Year Summary Grew in all businesses and regions Increased brand support globally Discipline in portfolio and cash management Improved margins Increased underlying EPS in constant currency Proposed dividend increase to CHF 2.15 per share 22 February 13th, 2014 Nestlé Full Year R
Slide 23: Full-Year Results Conference – Paul Bulcke, Nestlé CEO
Full -Year Results Conference Paul Bulcke Nestlé CEO
Slide 24: Driving our performance
Driving our performance Roadmap Priorities Focus areas 24 13 February, 2014 Full-Year Results Conference
Slide 25: Nutrition, Health and Wellness
Nutrition, Health and Wellness 25 13 February, 2014 Full-Year Results Conference
Slide 26: Nutrition, Health and Wellness
Nutrition, Health and Innovation and renovation Wellness Policies Fortification 26 13 February, 2014 Full-Year Results Conference
Slide 27: Nutrition, Health and Wellness
Nutrition, Health and Wellness 27 13 February, 2014 Full-Year Results Conference
Slide 28: Premiumisation
Premiumisation 28 13 February, 2014 Full-Year Results Conference
Slide 29: Unmatched product and brand portfolio
Unmatched product and brand portfolio 29 13 February, 2014 Full-Year Results Conference
Slide 30: R&D and Innovation to strengthen our portfolio
R&D and Innovation to strengthen our portfolio 30 13 February, 2014 Full-Year Results Conference
Slide 31: M&A to strengthen our portfolio
Acquisitions M&A to strengthen 2010 2011 2012 2013 our portfolio 2010 2012 2013 2014 Divestitures 31 13 February, 2014 Full-Year Results Conference
Slide 32: A strong global footprint
A strong global footprint Factories R&D Illustrative 32 13 February, 2014 Full-Year Results Conference
Slide 33: Growing in developed and emerging markets
Growing in developed and Emerging Developed emerging markets 40.8 bn Sales (CHF) 51.4 bn 44% % of Group Sales 56% +9.3% Organic Growth +1.0% * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc and JVs; OG = Organic Growth, RIG = Real Internal growth 33
Slide 34: Driving our performance
Driving our performance Roadmap Priorities Focus areas Expanding the boundaries of nutrition Nestlé Health Science Expanding the boundaries of health & wellness Nestlé Skin Health Galderma 34 13 February, 2014 Full-Year Results Conference
Slide 35: Delivering the Nestlé Model
Average annual Organic Growth over last 10 years: 6.1% Average annual Margin improvement over last 10 years: +30 bps Delivering the Nestlé Model 6% 5% Organic Growth Margin* * Data corresponds to published figures (EBIT until 2010 and Trading Operating Profit since 2011) 35 13 February, 2014 Full-Ye
Slide 36: 13 February, 2014 Full-Year Results Conference
36 13 February, 2014 Full-Year Results Conference
Slide 37: Appendix
Appendix 37 February 13th, 2014 Nestlé Full Year Results 2013
Slide 38: Net Debt 2013
Net Debt 2013 + 0.1 CHF bn -6.6 + - 0.4 - 0.2 + 10.5 -10.9 - 18.1 -14.7 Net debt Treasury Acquisition Dividends Exchange Free Cash Net debt January 1st* shares (net) net of (incl. WHT) rates & other Flow December disposals 31st (incl. Minority) 38 February 13th, 2014 Nestlé Full Year Results 2013
Slide 39: Americas, Europe, Asia, Oceania & Africa Sales
Asia, Americas Europe Oceania & Africa Sales (CHF) 40 bn 26.1 bn 26.1 bn OG +5.1% +0.8% +7.4% RIG +2.1% +1.9% +5.9% Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc ; OG = Organic Growth, RIG = Real Internal growth 39 February 13th, 2014 Nestlé Full Y
Slide 40: Emerging and Developed Markets Sales
Emerging Developed Sales (CHF) 40.8 bn 51.4 bn % of Group Sales 44% 56% OG +9.3% +1.0% 40 February 13th, 2014 Nestlé Full Year Results 2013
Slide 41: Translational Impact of Swiss Franc
Translational Impact of Swiss Franc Weighted Average Exchange Rates CHF per FY 2012 FY 2013 (%) US Dollar (1) 0.94 0.93 -1.2 Euro (1) 1.21 1.23 +2.1 £ Sterling (1) 1.49 1.45 -2.5 Real (100) 47.96 42.99 -10.4 Mex. Peso (100) 7.14 7.26 +1.8 Yen (100) 1.17 0.94 -19.2 41 February 13th, 2014 Nestlé Full
Slide 42: FX Impact on All Businesses
FX Impact on All Businesses (%) 1Q13 HY13 9m 2013 FY13 Zone Americas -2.6 -2.4 -4.4 -5.9 Zone Europe +1.2 +1.3 +0.9 +0.5 Zone AOA -1.0 -1.4 -3.7 -5.0 Nestlé Waters +0.9 +0.8 -0.4 -1.2 Nestlé Nutrition -1.9 -1.8 -3.9 -5.5 Other +0.2 +0.3 -1.0 -1.7 Total -0.9 -0.9 -2.5 -3.7 42 February 13th, 2014 Nest