Nestle S.a. · SIX:NESN
Nestle — 9M 2015 Earnings Presentation
48 slides from Nestle's earnings presentation, Oct 16, 2015
Slide 1: Welcome to the Nine-Month Sales Conference
Welcome to the Nine-Month Sales Conference
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: Nine-Month Sales Conference – Paul Bulcke, CEO
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 4: Nestlé Group Highlights
Nestlé Group Highlights Sales CHF 64.9 bn Organic Growth 4.2 % Real Internal Growth 2.0 % 4 16 October 2015 Nine-Month Sales Conference
Slide 5: Nine-Month Sales Conference – CFO
Nine-Month Sales Conference François-Xavier Roger Chief Financial Officer
Slide 6: Highlights
Highlights Sales of CHF 64.9 billion, impacted by -6.7% FX and +0.4% M&A Organic Growth +4.2% Real Internal Growth +2.0% Full-Year Outlook: We project organic growth of around 4.5% for the full year, with improvements in margins and underlying earnings per share in constant currencies, and c
Slide 7: Broad-based Organic Growth in all Geographies
Broad-based Organic Growth in all Geographies AMS EMENA AOA Sales 28.3 bn 20.3 bn 16.3 bn (in CHF) RIG +2.4% +2.9% +0.2% OG +6.2% +4.0% +1.1% OG = Organic Growth, RIG = Real Internal Growth Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Sci
Slide 8: Developed and Emerging Markets Growth
Developed and Emerging Markets Growth Developed Emerging Sales 36.9 bn 28.0 bn (in CHF) % of Group sales 57% 43% Organic Growth +2.2% +6.8% 8 16 October 2015 Nine-Month Sales 2015
Slide 9: Zone AMS
Zone AMS Sales 18.5 RIG % +1.2 OG % +5.8 in CHF bn Accelerated growth driven by improvements in US and strong LATAM Positive growth in North America – New ranges in US frozen gained momentum, driving recovery – Coffee-mate and Ice cream continued to be highlights Latin America continued to be
Slide 10: Zone EMENA
Zone EMENA Sales 12.0 RIG % +2.5 OG % +4.1 in CHF bn Positive growth momentum accelerated PetCare, Nescafé Dolce Gusto, and Nescafé soluble coffee were the growth engines across Zone Western Europe – France sustained good performance; UK improved – Nescafé Dolce Gusto and PetCare drove growth,
Slide 11: Zone AOA
Zone AOA Sales 10.5 RIG % -1.4 OG % -0.5 in CHF bn Solid results in developed markets overshadowed by ongoing challenges in India and China Emerging markets – Nescafé and Hsu Fu Chi did well in China, however other categories were soft – India impacted by lost Maggi sales; efforts to re-launch –
Slide 12: Nestlé Waters
Nestlé Waters Sales 5.9 RIG % +7.0 OG % +6.8 in CHF bn Good growth momentum maintained across geographies and brands Developed markets: accelerated growth, driven by Spain, France, North America, Italy, UK Emerging markets: double-digit growth led by Middle East, Turkey, Mexico, Africa Contr
Slide 13: Nestlé Nutrition
Nestlé Nutrition Sales 7.8 RIG % +1.4 OG % +3.4 in CHF bn Growth impacted by strong comparatives, lower pricing, and volatility in Asia, Latin America, and India Infant Formula growth was led by superpremium Illuma, which continues its geographic and e-commerce expansion in China Infant cereal
Slide 14: Other Businesses
Other Businesses Sales 10.1 RIG % +4.4 OG % +5.5 in CHF bn Nestlé Professional Emerging markets in Asia and Middle East helped accelerate growth Highlights were coffee solutions for Beverage and flavours for Food Nespresso Continued good performance with international expansion New products
Slide 15: Products
Products % Real Internal Growth % Organic Growth 7.2 7.1 7.8 5.8 5.9 4.2 4.6 3.1 0.9 2.9 3.4 2.0 0.2 1.0 FLAT -1.6 TOTAL Powdered Water Milk products Nutrition Prepared dishes Confectionery PetCare GROUP and Liquid and and and Beverages Ice cream Health cooking aids Science Sales 64.9 14.0 5.5 11.0
Slide 16: Summary
Summary Good progress in many businesses and geographies RIG increased and is in line with expectations OG short of expectations due to exceptional items Full-Year Outlook: We project organic growth of around 4.5% for the full year, with improvements in margins and underlying earnings per sh
Slide 17: Nine-Month Sales Conference – Paul Bulcke, CEO
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 18: We enhance lives with science-based nutrition and health solutions
We enhance lives with science-based nutrition and health solutions for all stages of life, helping consumers care for themselves and their families 18 16 October 2015 Nine-Month Sales Conference
Slide 19: 16 October 2015 Nine-Month Sales Conference
19 16 October 2015 Nine-Month Sales Conference
Slide 20: Strengthening portfolio
Strengthening portfolio Criteria • Strategic fit • Profitable growth • Resource intensity Actions • Accelerate • Protect • Fix 20 16 October 2015 Nine-Month Sales Conference
Slide 21: Products renovated for nutrition or health
• 44,000 products renovated for nutrition or health considerations • 22,000 products with reduced sodium, sugars, fat, calories or artificial colourings • 27,000 products with increase in nutritious ingredients or essential nutrients • … 21 16 October 2015 Nine-Month Sales Conference
Slide 22: Connecting with changing consumer expectations
Connecting with changing consumer expectations Healthy lifestyle Authenticity Digital & Ethnic cuisines e-commerce and experiences 22 16 October 2015 Nine-Month Sales Conference
Slide 23: On-trend innovation across categories
• On-trend innovation • On-trend innovation • Improved culinary appeal • New ethnic cuisines • Food mood line segmentation • Communicating great quality • New health communication and taste 23 16 October 2015 Nine-Month Sales Conference
Slide 24: China: recovery progressing in a challenging environment
China: recovery progressing in a challenging environment Progress in 2015 Challenges/opportunities • Good growth in multiple categories; • Yinlu portfolio renovation & innovation especially coffee, Hsu Fu Chi & • Expanding distribution Wyeth infant nutrition • Innovations to improve consumer relevan
Slide 25: Investing in our brands
Investing in our brands 25 16 October 2015 Nine-Month Sales Conference
Slide 26: Maison Cailler brand and eCommerce
• Iconic brand with almost 200 year history • 100% Swiss made at Maison Cailler (Broc) • eCommerce as a premium channel with Amazon as primary retailer • Presence in selected airport duty free shops Home of Swiss chocolate since 1819 Genuine Real Provenance Ingredients 26 16 October 2015 Nine-Month
Slide 27: eBusiness: capabilities to accelerate growth
eBusiness: capabilities to accelerate growth eBusiness Strategy & Plans Strategic alliances dedicated Team to support each market Talent/people eBusiness strategy and Engaging with different Capabilities & tools action plans global partners 27 16 October 2015 Nine-Month Sales Conferenc
Slide 28: Strengthening portfolio: divestments
Strengthening portfolio: divestments 2012 2013 2014 2015 Annualised CHF CHF CHF CHF sales 200mio 800mio 700mio 850mio Key • Peter’s Ice Cream • Jenny Craig • Germany – Infant • Mexico – Ice Cream • Mexico – Chilled Dairy Meals & Drinks • Davigel* divestments • US – Pet Insurance • Korea JV • Spain –
Slide 29: Creating a leading player in ice cream
Creating a leading player in ice cream 29 16 October 2015 Nine-Month Sales Conference
Slide 30: Creating a leading player in ice cream
Creating a leading player in ice cream • Brands and heritage • Complementary portfolio • Out-of-home capabilities • Retail presence • Distribution and point of sale • Competitive operations 30 16 October 2015 Nine-Month Sales Conference
Slide 31: Expanding the boundaries of NHW
Expanding the boundaries of NHW Advancing the role of nutritional therapy Enhancing the quality of life to change the course of health by delivering science-based solutions for consumers, patients and our partners for the health of skin in healthcare over the course of people’s lives 31 16 October 2
Slide 32: Changing the Course of Health
Changing the Course of Health Greg Behar CEO Nestlé Health Science 16 October 2015
Slide 33: Who we are
Who we are A health-science company aiming to foster a therapeutic role for nutrition in healthcare Our vision Nestlé Health Science offers me nutritional therapies that change the way we approach the management of my health 33 16 Oct 2015 - Nine-Month Sales Conference
Slide 34: We are… Where Nutrition Becomes Therapy
We are… Transformational Building Breakthrough Pipeline We are the company “Where Nutrition Becomes Therapy” 34 16 Oct 2015 - Nine-Month Sales Conference
Slide 35: Our strategic focus
Our strategic focus Consumer Care Medical Nutrition Novel Therapeutic Nutrition Healthy Aging Inborn Errors of Metabolism Brain Health Healthy Growing Pediatric Care & Allergy Gastrointestinal Health Gut Health Acute Care & Devices Nutrient-related Platforms Metabolic & Obesity C
Slide 36: Winning mix
Winning mix Nestlé Unrivalled Nestlé scale and support Strong global footprint Medical Healthcare credibility and deep customer insights Nutrition Rich pipeline Consumer Novel Therapeutic Unique combination of talents & capabilities Care Nutrition (FMCG, Pharma) Industrial investment, sc
Slide 37: Innovation engine
Innovation engine Product Technology Center 37 16 Oct 2015 - Nine-Month Sales Conference
Slide 38: Powerhouse potential
Powerhouse potential Accelerate innovation to meet the nutritional needs of the increasing aging population Shape new categories in Healthy Growing and Gut Health Expand geographic footprint Consumer Care Accelerate with great brands In NAM In EUROPE, AOA, LATAM 38 16 Oct 2015 - Nine-Month Sal
Slide 39: Power brands in Consumer Care
Power brands in Consumer Care Boost gaining share (USA) Meritene expansion (Europe, AOA, LATAM) 39 16 Oct 2015 - Nine-Month Sales Conference
Slide 40: Building leadership
Building leadership Expand specialty pipeline (e.g. food allergy, ICU intervention, supportive oncology care) Optimize geographic footprint and operational excellence Execute key new launches Medical Nutrition Invest & optimize business Inborn Errors of Allergy Portfolio Compat Ella Pump Metab
Slide 41: Breakthrough opportunities
Breakthrough opportunities Focus on Gastrointestinal Health Brain Health Innovative technology platforms Proprietary nutrients Microbiome Leverage innovative diagnostic enablers: part of integrated therapeutic approach 41 16 Oct 2015 - Nine-Month Sales Conference
Slide 42: GI health opportunity
GI health opportunity Addressing unmet needs Project Crown LT-02 Novel nutritional therapy (Nx) First-in-class therapy (Rx) to to address moderate-to-severe restore barrier function in Crohn’s disease patients with mild-to-moderate ulcerative colitis Gold standard nutritional therapy 42 16 Oct 2015
Slide 43: Shaping new approaches to health management
Shaping new approaches to health management – through nutritional therapies Playing key role in Nutrition, Health and Wellness Generating value for shareholders: growth, margins, return 43 16 Oct 2015 - Nine-Month Sales Conference
Slide 44: 16 October 2015 Nine-Month Sales Conference
44 16 October 2015 Nine-Month Sales Conference
Slide 45: Nine-Month Sales Appendix
Nine-Month Sales Appendix 45 16 October 2015 Nine-Month Sales 2015
Slide 46: Operating Segments
Operating Segments % Real Internal Growth % Organic Growth 7.0 6.8 5.8 5.5 4.2 4.1 4.4 3.4 2.0 2.5 1.2 -0.5 1.4 -1.4 TOTAL Zone Zone Zone Nestlé Nestlé Other GROUP AMS EMENA AOA Waters Nutrition Businesses Sales 64.9 18.5 12.0 10.5 5.9 7.8 10.1 (in CHF bn) 46 16 October 2015 Nine-Month Sales 2015
Slide 47: Currency Overview
Currency Overview Weighted average rate 9M 2014 9M 2015 % Var. 1 US Dollar USD 0.90 0.95 +6.1 1 Euro EUR 1.22 1.06 -12.8 100 Chinese Yuan Renminbi CNY 14.60 15.26 +4.5 100 Brazilian Reais BRL 39.30 30.33 -22.8 100 Mexican Pesos MXN 6.85 6.13 -10.5 1 Pound Sterling GBP 1.50 1.46 -2.6 1 Canadian Dolla
Slide 48: FX Impact
FX Impact FX Impact 9M 2015 Zone AMS -6.9% Zone EMENA -12.9% Zone AOA -2.2% Nestlé Waters -1.4% Nestlé Nutrition -4.8% Other Businesses -7.7% Total -6.7% 48 16 October 2015 Nine-Month Sales 2015