Slide 1: Structurally gearing our portfolio for mid single-digit growth
CAGNY 2022 Structurally gearing our portfolio for mid single-digit growth François-Xavier Roger EVP, Chief Financial 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: Our business is global, balanced and diversified
Our business is global, balanced and diversified 2021 sales: CHF 87.1 bn Where we sell What we sell EMENA Nutrition & Beverages PetCare Prepared dishes 30% (incl. coffee) Health Science & cooking aids 27% 18% 15% 14% Milk products Confectionery Water & ice cream AOA AMS 45% 25% 12% 9% 5% Resources N
Slide 4: Resilient financial results in 2021
Resilient financial results in 2021 Organic sales growth Underlying TOP margin Underlying EPS (in CHF) +5.8% in constant currency 7.5% 17.7% 17.4% 4.21 4.42 3.6% 2020 2021 2020 2021 2020 2021 Return on Free cash flow Cash returned to shareholders invested capital (CHF bn) (CHF bn) 14.7% 14.2%* 10.2
Slide 5: Portfolio geared for mid single-digit organic sales growth
Portfolio geared for mid single-digit organic sales growth Organic sales growth 7.5%* • Investments in fast-growing categories and geographies Sustainable mid single-digit • Fast-paced innovation (4-6%) 3.5% 3.6% • Increased digitalization 3.0% 2.4% • Market share gains • Portfolio rotation 2017 201
Slide 6: Playing in the fastest growing categories in food and beverage
Playing in the fastest growing categories in food and beverage Nestlé presence CAGR 2017-21 + #1 or #2 player Top 10 player Meat Substitutes 19.1% - Limited presence Meal Kits 18.6% Fresh Coffee Beans 9.8% Edible Oils 9.0% Condensed Milk 8.8% Operating in 7 Fresh Ground Coffee Pods 8.0% out of top 1
Slide 7: Portfolio increasingly focused, premiumized and digital
Portfolio increasingly focused, premiumized and digital Sales Category Product mix Channel Premium E-commerce 11% Coffee 3% 19% 2012 PetCare 12% Health Science 2% E-commerce Coffee 14% 26% Premium 35% 2021 PetCare 18% Plant-based Health Science 1% 6% 7 February 25, 2022 CAGNY
Slide 8: Outperforming in our largest categories and future growth platforms
Outperforming in our largest categories and future growth platforms Winning share in our largest categories Building platforms for the future 7.5% 6.8% 22.6% 21.6% 5.1% 4.8% 16.8% 5.1% PetCare Coffee Vitamins, minerals & Meat alternatives supplements Market size CHF 144 bn CHF 86 bn CHF 112 bn CHF 5
Slide 9: Increasing differentiation across categories, with market share gains
Increasing differentiation across categories, with market share gains Focusing on value-added products Broad-based market share gains 65% >60% gaining/holding % cells share 45% 2017 2018 2019 2020 2021 Increasing focus on differentiation ~80% of sales where we are the market particularly on premium,
Slide 10: Rapid innovation to better capture consumer trends
Rapid innovation to better capture consumer trends More than 60 fast-track projects leading to launches within 6-12 months in 2021 Premiumization Affordability Plant-based food Sustainability Digitalization • 35% of sales • 19% of emerging • ~ CHF 800 m sales • 4 brands achieved carbon • 14.3% of sa
Slide 11: Stepping up investments behind growth platforms
Stepping up investments behind growth platforms Capex as % of sales Short-term increase in capex to meet higher demand 5.8% 4.4% 2017 2018 2019 2020 2021 2022 2023 11 February 25, 2022 CAGNY
Slide 12: Combined with continuous prudent M&A activity
Combined with continuous prudent M&A activity Acquisitions Divestitures 2017 2021 US U.S Ice Cream North America Confectionery Waters CHF ~ 30% > 85 + 80 bps 6.8 bn of Transactions closed or announced Sales from acquired Organic sales growth Underlying TOP margin since 2017, equivalent to businesses
Slide 13: Creating significant value for shareholders
Creating significant value for shareholders 27 years of dividend Share buybacks Total shareholder return* increases in CHF 15-year TSR: CHF 102 CHF 80 bn 14% CAGR bn since since 2005 vs. 10% for 2005 STOXX F&B 3.00 2.80 3.9 bn Share price 130 Number of shares 2.8 bn outstanding CHF CHF 0.00 30 1995
Slide 14: Our mid-term value creation model
Our mid-term value creation model Sustained Continued moderate Continued prudent capital allocation mid single-digit organic underlying trading operating profit and capital sales growth margin improvements efficiency improvements Value creation for both society and our shareholders 14 February 25, 2
Slide 15: Thank you!
Thank you! 15 February 25, 2022 CAGNY