Nestle S.a. · SIX:NESN
Nestle — Investor Day (November 2021)
44 slides from Nestle's investor day presentation, Nov 17, 2021
Slide 1: Accelerating our digital transformation
Nestlé Investor Seminar November 17, 2021 Accelerating our digital transformation
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: Bernard Meunier and Aude Gandon
Bernard Meunier Head of Strategic Business Units and Marketing and Sales Aude Gandon Global Chief Marketing Officer
Slide 4: Acceleration is now
Acceleration is now 4 November 17, 2021 Accelerating our digital transformation
Slide 5: Digitalization is dramatically reshaping consumer behaviors
Digitalization is dramatically reshaping consumer behaviors 3 bn Recipes viewed on TikTok 30% of consumers have pivoted every month to online shopping for food 45% Food queries on YouTube X 3 of online shoppers have made a purchase through social platforms 5 November 17, 2021 Accelerating our digita
Slide 6: Nestlé is leading the transformation
Nestlé is leading the transformation 12.8% Nestlé: e-commerce share of sales 12.0% Global FMCG industry: e-commerce share of sales 3.9% 6.5% 1.8% 2.2% 1.2% 2010 2015 2020 2025 Source : Kantar, GFK, IRI May 2021 projection 6 November 17, 2021 Accelerating our digital transformation
Slide 7: Successful brands now require a different consumer engagement model
Successful brands now require a different consumer engagement model Solid product concept Sustainable by design, enhanced by the service Fight for distribution Customize to win in every channel Price accurately Always-on optimization Support initial awareness with advertising Influenced by digital c
Slide 8: Acceleration is now: e-commerce and digital marketing targets
Acceleration is now E-commerce Digital marketing 70% & 400m From 47% in 2020 From 205m in 2020 25% From 12.8% in 2020 to to to of sales online marketing investment consumer data records spent online by 2025 by 2025 8 November 17, 2021 Accelerating our digital transformation
Slide 9: Strategic approach
Strategic approach 9 November 17, 2021 Accelerating our digital transformation
Slide 10: Rejuvenate the core and accelerate the new
Our focus is to rejuvenate the core and accelerate the new Digital intensity across all categories 10 November 17, 2021 Accelerating our digital transformation
Slide 11: Amplify and embed & scale
Amplify digital-centric businesses 31 billionaire brands Embed & scale core businesses 11 November 17, 2021 Accelerating our digital transformation
Slide 12: 3 strategic priorities to drive growth through digital
3 strategic priorities to drive growth through digital Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 12 November 17, 2021 Accelerating our digital transformation
Slide 13: 3 strategic priorities to drive growth through digital
3 strategic priorities to drive growth through digital Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 13 November 17, 2021 Accelerating our digital transformation
Slide 14: Consumer data records by category
Petcare Beverages 400 M consumer data records by 2025 +95% Culinary 205 M Nestlé consumer data records in Health Science 2020 Babycare 14 November 17, 2021 Accelerating our digital transformation
Slide 15: Precision marketing and direct engagement
Precision marketing Direct engagement identify & engage at key demand moments increase lifetime value Content personalization Product personalization activate with more effective content to grow beyond the core 15 November 17, 2021 Accelerating our digital transformation
Slide 16: Purina: from pet food to petcare
Purina: from pet food to petcare 16 November 17, 2021 Accelerating our digital transformation
Slide 17: 3 strategic priorities to drive growth through digital
3 strategic priorities to drive growth through digital Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 17 November 17, 2021 Accelerating our digital transformation
Slide 18: Next phase of retail is channel-less
Next phase of retail is channel-less Phase 1 Phase 2 Phase 3 Phase 4 EXCEL on every shelf, anytime, anywhere CHANNEL-LESS E-COMMERCE COMMERCE THINK CATEGORY end-to-end experience from awareness to SPECIALISTS shopping HYPERMARKET Market development CASH & CARRY TRADITIONAL SUPERMARKETS Format retail
Slide 19: Maintaining momentum
Maintaining momentum E-commerce E-market share Direct-to-consumer organic growth in gaining or holding e-commerce direct-to-consumer the first half of 2021 share in businesses represent + 19.2% following + 48.4% ~ 60% of business cells > 6% of total Nestlé sales * organic growth in 2020 we are track
Slide 20: Investing in critical enablers
Investing in critical enablers Fit-for-purpose Direct platform Optimizing retailers' packaging solutions investment online shelves 24/7 more than 40% + 200% in 2 years 60 markets of our total e-commerce sales digital media spend with e-commerce platforms covering 90% of our online sales 20 November
Slide 21: Nespresso: next-level consumer experience
Nespresso: next-level consumer experience 21 November 17, 2021 Accelerating our digital transformation
Slide 22: 3 strategic priorities to drive growth through digital
3 strategic priorities to drive growth through digital Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 22 November 17, 2021 Accelerating our digital transformation
Slide 23: Harness the power of data
Harness the Strategic Predictive Real-time power of data Increase sales Identify innovation price & promotion opportunities optimization 23 November 17, 2021 Accelerating our digital transformation
Slide 24: India and U.S. data-driven sales examples
India U.S. Smart identification of priority store outlets and must-sell items Next generation Strategic & total investment optimization Revenue Management Resulting in incremental & AI powered sales teams sales of ~ 2-4% ~ 5% uplift in incremental sales 24 November 17, 2021 Accelerating our digital
Slide 25: Nestlé China: innovation agility through real-time consumer data
Nestlé China: innovation agility through real-time consumer data 25 November 17, 2021 Accelerating our digital transformation
Slide 26: Growth IQ
Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 26 November 17, 2021 Accelerating our digital transformation
Slide 27: Growth IQ
Direct access Channel-less to consumers commerce at scale Growth IQ Always-on analytics 27 November 17, 2021 Accelerating our digital transformation
Slide 28: Raising Growth IQ through our people
Raising Growth IQ through our people 28 November 17, 2021 Accelerating our digital transformation
Slide 29: Investing in our people
Investing in our people eBusiness Academy Expert networks Raising the bar Empowering enhancing digital literacy creating a digitally across the organization creative culture 31 000 people upskilled with + 500 experts in digital* Google / Facebook training programs * New digital experts added in the
Slide 30: Fast-paced trial and error
Fast-paced trial and error Nestlé R&D accelerators Rapid prototyping 30 November 17, 2021 Accelerating our digital transformation
Slide 31: In-housing talents to build end-to-end content engines
In-housing talents to build more effective end-to-end content engines 31 November 17, 2021 Accelerating our digital transformation
Slide 32: Starbucks global roll-out: leveraging new digital content capabilities
Starbucks global roll-out: leveraging new digital content capabilities 32 November 17, 2021 Accelerating our digital transformation
Slide 33: Key takeaways
Key takeaways 33 November 17, 2021 Accelerating our digital transformation
Slide 34: Acceleration is NOW
Acceleration The FUTURE of Our Industry: is NOW Technology & Data-driven NESTLÉ will lead the transformation 34 November 17, 2021 Accelerating our digital transformation
Slide 35: Develop our Growth IQ
3 strategic priorities Direct access Channel-less Always-on to consumers commerce analytics at scale Develop our Growth IQ 35 November 17, 2021 Accelerating our digital transformation
Slide 36: Growth IQ takes center stage
31 000 To create upskilled Growth IQ a culture takes center + 500 of digital stage Digital Experts creativity + 35 worldwide Content Studios 36 November 17, 2021 Accelerating our digital transformation
Slide 37: Thank you!
Thank you! 37 November 17, 2021 Accelerating our digital transformation
Slide 38: François-Xavier Roger, Chief Financial Officer
François-Xavier Roger Chief Financial Officer
Slide 39: Our virtuous circle of value creation
Our virtuous circle of value creation 1. Freeing up resources 4. Delivering Creating shared 2. Focusing profitable value for society investments growth and shareholders on growth platforms 3. Driving market share gains 39 November 17, 2021 Accelerating our digital transformation
Slide 40: Driving efficiencies to invest for growth
Driving efficiencies to invest for growth Structural costs (in % of sales)* • Freeing up resources -300 bps • Cost discipline • Savings across manufacturing, 2016 2020 procurement, G&A Trade spend, consumer-facing marketing investments and R&D (in % of sales)* • Marketing +200 bps • R&D & technology
Slide 41: Increasing the return on marketing investments
Increasing the return on marketing investments Accelerating systematic ROI* tracking Increasing digital investment • Systematic ROI analysis used across ~50% • Digital media investments increased of media investments (+40% increase in 2020) to 47% of total spend (vs. 32% in 2017) • In test markets,
Slide 42: Supporting our value creation model
Supporting our value creation model Becoming Freeing up Unlocking Creating faster and resources opportunities shared more effective to invest in: to deliver value • Digitalization sustainable • Technology profitable • Innovation growth • Sustainability 42 November 17, 2021 Accelerating our digital t
Slide 43: Q&A
Q&A
Slide 44: Thank you!
Thank you!