Nestle S.a. · SIX:NESN
Nestle — Investor Day (June 2014)
18 slides from Nestle's investor day presentation, Jun 3, 2014
Slide 1: Nestlé Investor Seminar 2014: Confections & Snacks
Nestlé Investor Seminar 2014 Confections & Snacks Nestlé USA Doreen Ida Confections & Snacks President June 3rd & 4th, Liberty Hotel, Boston, USA June 3rd & 4th, Boston Nestlé Investor Seminar 2014
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: An attractive category
An attractive category (1) $19 bn LARGEST CATEGORY IN WHICH NUSA COMPETES (1) +5.2% CONSISTENT GROWTH (2009-2013 CAGR) 1 OF 5 RECESSION (2) PROOF CATEGORIES RESILIENT CONSUMPTION BEHAVIOR SEAFOOD, BEER, CONFECTIONERY, DRY PASTA, PASTA SAUCES (1) 3.8% VS. 17% LOW PRIVATE LABEL PENETRATION (vs. Food &
Slide 4: Understanding the confectionery environment
Understanding the confectionery environment Consumer Marketplace Expandable consumption Multiple points of interruption Multiple brands in the Heavy media advertising and extensive consideration set product portfolio from competitors Most purchases are Displays and unplanned distribution are critica
Slide 5: Two distinct segments, both growing above 4%
Two distinct segments, both growing above 4% Segment Segment Size Segment Dynamics $ CAGR2011-2013 • Top 2 represent 70% Chocolate $13bn +4.6% • Long-standing brands dominate • More fragmented Sugar $6bn +4.2% • Skews younger while appealing broadly $19bn +4.5% 4 June 3rd & 4th, Boston Nestlé Invest
Slide 6: Nestlé Confections represents over $900 million in sales
Nestlé Confections represents over $900 million in sales Strategic Chocolate Strategic Sugar All Other Double-digit High single-digit flat to growth growth declining Total Division +3% CAGR 2011-2013 ; Strategic Brands +9% CAGR 2011-2013 5 June 3rd & 4th, Boston Nestlé Investor Seminar 2014
Slide 7: Growing market share across our strategic brands
Growing market share across our strategic brands Chocolate Sugar 7.6% 7.5% 7.5% 5.5% 5.6% 5.5% +20bps +30bps since 2011 3.0% 3.2% 3.3% since 2011 4.0% 4.1% 4.2% STRATEGIC STRATEGIC STRATEGIC STRATEGIC STRATEGIC STRATEGIC 2011 2012 2013 2011 2012 2013 6 June 3rd & 4th, Boston Nestlé Investor Seminar
Slide 8: A robust strategic plan is in place to win in the USA
A robust strategic plan is in place to win in the USA Value what Grasp Make choices consumers opportunities value Disciplined portfolio management Nutrition, Health & Wellness Remove waste to reinvest Invest in strategic growth drivers Bigger, Better, Bolder Innovation Operate as ONE Nes
Slide 9: Accelerating growth
Accelerating growth margin >> Driving highly margin accretive growth Making Choices Maintaining a focused & disciplined portfolio approach Investing in strategic brands Delivering platform-based innovation Executing business simplification growth >> 8 June 3rd & 4th, Boston Nestlé Investor S
Slide 10: Grasping Opportunities & Embracing Digital
Breaking rules to drive transformational innovation Grasping Opportunities & Embracing Digital 9 June 3rd & 4th, Boston Nestlé Investor Seminar 2014
Slide 11: Grasping Opportunities – B3 Innovation: Skinny Cow
New Rule: “confectionery can be better-for-you” SKINNY COW LEVERAGING AWARD WINNING Grasping Opportunities – B3 Innovation LAUNCHED IN 2011 GLOBAL R&D INNOVATION Less Created an extendable than 130 platform 2013 Nielsen calories Breakthrough Innovation Award 62 Growth in 2 % years New Brought new bu
Slide 12: Grasping Opportunities – B3 Innovation: 5th season
New Rule: “we can create a 5th season” CREATING THE EXPANDING THE SATISFYING Grasping Opportunities – B3 Innovation 5TH SEASON CATEGORY CONSUMERS 90 new of buyers were % to the Crunch franchise + 2013 25 Consumer Drove Thin mints outsold key significant voted competitor in 1 st month growth growth %
Slide 13: Grasping Opportunities - NHW
New Rule: “we make confectionery permissible” NATURAL BETTER-FOR-YOU PORTION GUIDANCE COLORS & FLAVORS OFFERINGS Grasping Opportunities - NHW Appropriate serving sizes all natural flavors Recloseable packaging 1st Major Utilizing our proprietary Communicating brand all natural technology & leveragin
Slide 14: Grasping Opportunities – B3 Innovation: Butterfinger
Grasping Opportunities – B3 Innovation New Rule: “leaders can be challenged” Higher 2X market share of total Butterfinger repeat rates 2X shelf turn than #1 franchise during Super competitor Bowl month category average in first 12 weeks 13 June 3rd & 4th, Boston Nestlé Investor Seminar 2014
Slide 15: Engaging with the Community & Embracing Digital
Connecting emotionally with consumers Engaging with the Community & Embracing Digital CREATING SHARED VALUE EMBRACING DIGITAL & SOCIAL 24% of media spend is on digital Sales coverage of sustainable cocoa greater than top 2 competitors 14 June 3rd & 4th, Boston Nestlé Investor Seminar 2014 (1) Source
Slide 16: Driving value-accretive growth…
Driving value-accretive growth… +3.0% CAGR (1) +2.4% CAGR (1) +350 bps (2) 2011 2012 2013 2011 2012 2013 2012 2013 Sales Trading Operating Profit Return on Invested Capital(3) (in USD) (in USD) (1) 2011 to 2013 change 15 June 3rd & 4th, Boston Nestlé Investor Seminar 2014 (2) Asset base was combined
Slide 17: … leveraging the turnaround from 2009
… leveraging the turnaround from 2009 +35bps +790bps 2009 … 2012 2013 Trading Operating Profit 16 June 3rd & 4th, Boston Nestlé Investor Seminar 2014
Slide 18: In summary…
In summary… Our strategic brands are growing faster than the category Highly successful transformational innovation strategy Nestlé is taking a leadership position in NHW helping consumers make good decisions Leveraging our R&D expertise to deliver more permissible products The future for