Slide 1: Nine-month sales 2017
Nine-month sales 2017 1 | October 19, 2017 | Nestlé nine-month sales 2017
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 2017 - Mark Schneider, CEO
Nine-month sales 2017 Mark Schneider, CEO 3 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 4: Nine-month sales 2017 - François-Xavier Roger, CFO
Nine-month sales 2017 François-Xavier Roger, CFO 4 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 5: Nine-month performance highlights
Nine-month performance highlights Organic growth Real internal Net M&A Sales (in CHF) growth -2.6% +2.6% +1.8% Foreign exchange 65.3 bn +0.8% pricing -0.4% -0.4% on a reported basis 5 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 6: Resilient RIG in an environment of weak consumer demand
Resilient RIG in an environment of weak consumer demand 4% % Organic growth 3% % Pricing 2% 1% % Real internal growth 0% Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 6 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 7: Acceleration of RIG across geographies
Acceleration of RIG across geographies AMS EMENA AOA Sales 29.6 bn 18.8 bn 16.9 bn (in CHF) RIG 0.9% 1.5% 3.6% OG 1.7% 2.0% 4.9% Each geography includes zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science and Nestlé Skin Health 7 | October 19, 2017 | Nestlé
Slide 8: Growth in developed and emerging markets
Growth in developed and emerging markets Developed Emerging Sales (in CHF) 37.1 bn 28.2 bn % of group sales 57% 43% RIG 1.0% 3.0% OG 0.8% 5.1% 8 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 9: Zone AMS
Zone AMS Sales CHF 20.5 bn Real internal growth +0.3% Pricing +1.0% Organic growth +1.3% • Organic growth was stable, supported by stronger RIG in Latin America in the third quarter • Pricing improved in North America but softened in Latin America • North America had flat organic growth as it contin
Slide 10: Zone EMENA
Zone EMENA Sales CHF 11.8 bn Real internal growth +1.4% Pricing +0.5% Organic growth +1.9% • Good broad-based growth across most categories in third quarter • Petcare continued to deliver solid performance with mid-single-digit growth • Coffee grew well, led by Nescafé Dolce Gusto • Confectionary an
Slide 11: Zone AOA
Zone AOA Sales CHF 11.9 bn Update pic Real internal growth +3.6% (new Milo) Pricing +1.7% Organic growth +5.3% • Growth in China continued to improve in the third quarter • Southeast Asia maintained mid-single-digit growth and sub-Saharan Africa held its double-digit growth • Growth in South Asia re
Slide 12: Nestlé Waters
Nestlé Waters Sales CHF 6.2 bn Real internal growth +2.1% Pricing +0.1% Organic growth +2.2% • Softer organic growth due to negative third quarter in developed markets • International sparkling brands continued to be accretive with volume-driven growth • North America and Western Europe were affecte
Slide 13: Nestlé Nutrition
Nestlé Nutrition Sales CHF 7.7 bn Real internal growth +0.4% Pricing +0.6% Organic growth +1.0% • Growth in China improved in the third quarter, helped by strong performances of NAN and illuma • Growth in the U.S. remained subdued, but cereals performed well • Brazil declined as price decreases were
Slide 14: Other businesses
Other businesses Sales CHF 7.2 bn Real internal growth +5.0% Pricing +0.1% Organic growth +5.1% • Nespresso held strong mid-single-digit organic growth, supported by double-digit growth in North America • Nestlé Skin Health benefitted from the launch of product innovations across businesses • Nestlé
Slide 15: Growth by products
Growth by products 3.5% 3.1% 3.0% Organic growth 2.6% 2.5% 2.4% 2.3% Pricing RIG 0.0%* Total group Powdered and Water Milk products Nutrition and Prepared dishes Confectionery Petcare liquid beverages and ice cream Health Science and cooking aids *comprised of +1.4% RIG and -1.4% pricing 15 | Octobe
Slide 16: Outlook 2017 confirmed
Outlook 2017 confirmed • Full-year organic growth to be around the level of the nine- month period • Increase in underlying TOP margin by at least 20 basis points* • Additional increase in restructuring and related expenses** of CHF 400-500 m • As a result, TOP margin to decrease by 40-60 basis poin
Slide 17: Discussion
Nine-month sales 2017 Discussion 17 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 18: Supporting slides
Nine-month sales 2017 Supporting slides 18 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 19: 9M-2017 Operating segments – quarterly summary
9M-2017 Operating segments – quarterly summary Q3-2017 sales Sales RIG Pricing OG (CHF million) % % % Zone AMS 7’176 1.2 0.1 1.3 Zone EMENA 4’021 3.0 0.6 3.6 Zone AOA 3’951 4.9 1.6 6.5 Nestlé Waters 2’125 -0.4 -0.5 -0.9 Nestlé Nutrition 2’527 1.6 -0.2 1.4 Other businesses 2’449 6.1 1.8 7.9 Total gro
Slide 20: 9M-2017 Operating segments – topline summary
9M-2017 Operating segments – topline summary 9M-2017 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF million) % % % % % % Zone AMS 20’490 0.3 1.0 1.3 -0.7 1.4 2.0 Zone EMENA 11’821 1.4 0.5 1.9 -10.5 -0.8 -9.4 Zone AOA 11’853 3.6 1.7 5.3 -0.5 -2.8 2.0 Nestlé Waters 6’150 2.1 0.1 2.2
Slide 21: 9M-2017 Products – topline summary
9M-2017 Products – topline summary 9M-2017 sales Sales RIG Pricing OG (CHF million) % % % Powdered and liquid beverages 14’745 2.0 1.5 3.5 Water 5’758 2.3 0.1 2.4 Milk products and ice cream 9’891 0.8 1.7 2.5 Nutrition and Health Science 11’197 1.9 0.4 2.3 Prepared dishes and cooking aids 8’614 1.4
Slide 22: 9M-2017 historical seven quarters
9M-2017 historical seven quarters Period RIG Pricing OG % % % Q1-2016 3.0 0.9 3.9 Q2-2016 2.7 0.4 3.1 Q3-2016 1.9 1.3 3.2 Q4-2016 2.0 0.9 2.9 Q1-2017 1.3 1.0 2.3 Q2-2017 1.5 0.9 2.4 Q3-2017 2.6 0.5 3.1 22 | October 19, 2017 | Nestlé nine-month sales 2017
Slide 23: 9M-2017 currency overview
9M-2017 currency overview Weighted average rate 9M-2016 9M-2017 Variation in % US Dollar 1 USD 0.980 0.983 +0.4 Euro 1 EUR 1.094 1.095 +0.1 Chinese Yuan Renminbi 100 CNY 14.910 14.468 -3.0 Brazilian Reias 100 BRL 27.832 30.972 +11.3 UK Pound Sterling 1 GBP 1.365 1.255 -8.1 Mexican Pesos 100 MXN 5.36
Slide 24: Abbreviations
Abbreviations OG Organic growth RIG Real internal growth AMS Zone Americas EMENA Zone Europe, Middle East, and North Africa AOA Zone Asia, Oceania, and sub-Saharan Africa EPS Earnings per share COGS Cost of goods sold TOP Trading operating profit Underlying TOP Trading operating profit before net ot