Nestle S.a. · SIX:NESN

Nestle — Q1 2022 Earnings Presentation

26 slides from Nestle's earnings presentation, Apr 21, 2022

  1. Slide 1: Three-month sales 2022 Investor call

    2022 Three-month sales Investor call

  2. 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.

  3. Slide 3: Three-month sales – Mark Schneider, CEO

    2022 Three-month sales Mark Schneider, CEO

  4. Slide 4: Key messages

    Key messages • Strong organic sales growth of 7.6% – Increased pricing and resilient RIG – Broad-based growth and market share gains across most geographies and categories – Continued momentum in retail sales, with a further recovery in out-of-home channels • Supporting humanitarian relief in Ukrain

  5. Slide 5: 2022 guidance confirmed

    2022 guidance confirmed • Organic sales growth around 5% • Underlying trading operating profit margin between 17.0% and 17.5% • Underlying earnings per share in constant currency and capital efficiency expected to increase 5 April 21, 2022 Nestlé three-month sales 2022

  6. Slide 6: Three-month sales – François-Xavier Roger, CFO

    2022 Three-month sales François-Xavier Roger, CFO

  7. Slide 7: Three-month sales growth

    Three-month sales growth OG +7.6% -1.3% -0.8% +5.2% 22.2 +2.4% 21.1 Reported sales growth +5.4% -30 3M-2021 sales RIG Pricing Net M&A Foreign 3M-2022 sales CHF bn exchange CHF bn RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exc

  8. Slide 8: Strong growth across developed and emerging markets

    Strong growth across developed and emerging markets Developed Emerging Sales (in CHF) 12.7 bn 9.5 bn % of Group sales 57% 43% RIG 1.5% 3.8% Pricing 5.3% 5.0% OG 6.7% 8.8% 8 April 21, 2022 Nestlé three-month sales 2022

  9. Slide 9: Strong momentum in retail and further recovery in out-of-home

    Strong momentum in retail and further recovery in out-of-home Organic sales growth % Retail Out-of-home* Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 9.2% 84.1% 5.8% 5.9% 5.4% 5.3% 35.6% 25.7% 29.4% -11.6% * Includes Nestlé Professional, foodservice activities of N

  10. Slide 10: Increased pricing reflects significant cost inflation

    Increased pricing reflects significant cost inflation 5.2% 3.1% 2.1% 1.2% 1.3% Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 10 April 21, 2022 Nestlé three-month sales 2022

  11. Slide 11: 2-year average real internal growth (RIG)

    2-year average real internal growth (RIG)* 5.6% 4.6% 4.4% 3.9% 3.5% Q1-20/21 Q2-20/21 Q3-20/21 Q4-20/21 Q1-21/22 * 2-year average used to adjust for COVID-19-related volatility 11 April 21, 2022 Nestlé three-month sales 2022

  12. Slide 12: Zone North America

    Zone North America Sales CHF 5.8 bn Real internal growth 1.4% Pricing 8.5% Organic growth 9.9% • Strong organic growth, supported by increased pricing • Sustained e-commerce momentum, further recovery in out-of-home and broad-based market share gains • Growth led by Purina PetCare, Nestlé Profession

  13. Slide 13: Zone Europe

    Zone Europe Sales CHF 4.6 bn Real internal growth 2.8% Pricing 4.1% Organic growth 6.9% • Strong organic growth supported by increased pricing and solid RIG • Sustained e-commerce momentum and further recovery in out-of-home channels • Nestlé Professional, Purina PetCare and infant nutrition were th

  14. Slide 14: Zone Asia, Oceania and Africa

    Zone Asia, Oceania and Africa Sales CHF 4.6 bn Real internal growth 1.7% Pricing 4.3% Organic growth 6.0% • Solid organic growth, with increased pricing across most geographies and positive RIG • Growth led by South Asia and Sub-Saharan Africa • Culinary, coffee and Nestlé Professional were the key

  15. Slide 15: Zone Latin America

    Zone Latin America Sales CHF 2.7 bn Real internal growth 4.7% Pricing 7.7% Organic growth 12.5% • Continued double-digit organic growth, with increased pricing and strong RIG • Broad-based growth across most geographies, with strong execution and continued e-commerce momentum • Growth was led by con

  16. Slide 16: Zone Greater China

    Zone Greater China Sales CHF 1.4 bn Real internal growth 3.8% Pricing -0.5% Organic growth 3.4% • Low single-digit organic growth, driven by RIG • Growth supported by innovation, with market share gains in culinary, ready-to-drink coffee and confectionery • Strong sales developments in most categori

  17. Slide 17: Nespresso

    Nespresso Sales CHF 1.6 bn Real internal growth 0.2% Pricing 3.1% Organic growth 3.3% • Solid organic growth, following strong double-digit growth in the first quarter of 2021 • Growth supported by continued momentum for the Vertuo system and a recovery in out-of-home channels • North America saw do

  18. Slide 18: Nestlé Health Science

    Nestlé Health Science Sales CHF 1.4 bn Real internal growth 4.3% Pricing 1.3% Organic growth 5.6% • Robust organic growth, building on two consecutive years of double-digit growth • Low single-digit growth in consumer care, with a strong contribution from healthy-aging products • Double-digit growth

  19. Slide 19: Broad-based growth across categories

    Broad-based growth across categories Organic sales growth % 21.3% 13.6% 10.5% 7.6% 7.3% 4.5% 4.2% 2.9% Total Group Powdered and PetCare Nutrition and Prepared dishes Milk products Confectionery Water Liquid Beverages Health Science and cooking aids and Ice cream 19 April 21, 2022 Nestlé three-month

  20. Slide 20: Three-month sales Q&A

    2022 Three-month sales Q&A és ys, a }

  21. Slide 21: Supporting slides

    Supporting slides 21 April 21, 2022 Nestlé three-month sales 2022

  22. Slide 22: 3M-2022 Operating segments – topline summary

    3M-2022 Operating segments – topline summary 3M-2022 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF m) % % % % % % Zone North America 5 800 1.4 8.5 9.9 -13.6 2.2 -1.5 Zone Europe 4 633 2.8 4.1 6.9 0.6 -5.4 2.2 Zone AOA 4 633 1.7 4.3 6.0 -0.1 -2.8 3.0 Zone Latin America 2 697 4.7 7

  23. Slide 23: 3M-2022 Products – topline summary

    3M-2022 Products – topline summary 3M-2022 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 6 063 2.4 4.9 7.3 Water 790 14.1 7.2 21.3 Milk products and Ice cream 2 709 -1.4 5.6 4.2 Nutrition and Health Science 3 596 2.5 2.0 4.5 Prepared dishes and cooking aids 3 098 -3.5 6.4 2.

  24. Slide 24: 3M-2022 historical eight quarters

    3M-2022 historical eight quarters Period RIG Pricing OG % % % Q2-2020 0.5 0.8 1.3 Q3-2020 4.8 0.1 4.9 Q4-2020 3.0 0.9 3.9 Q1-2021 6.4 1.2 7.7 Q2-2021 7.3 1.3 8.6 Q3-2021 4.4 2.1 6.5 Q4-2021 4.0 3.1 7.2 Q1-2022 2.4 5.2 7.6 24 April 21, 2022 Nestlé three-month sales 2022

  25. Slide 25: 3M-2022 currency overview

    3M-2022 currency overview Weighted average rate 3M-2021 3M-2022 Variation in % US Dollar 1 USD 0.906 0.924 2.0 Euro 1 EUR 1.091 1.036 -5.0 Chinese Yuan Renminbi 100 CNY 13.922 14.538 4.4 Brazilian Real 100 BRL 16.546 17.780 7.5 Philippine Peso 100 PHP 1.873 1.792 -4.3 UK Pound Sterling 1 GBP 1.249 1

  26. Slide 26: Abbreviations

    Abbreviations • OG Organic growth • RIG Real internal growth • AOA Asia, Oceania, and Africa 26 April 21, 2022 Nestlé three-month sales 2022

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