Slide 1: Nine-month sales 2018
Nine-month sales 2018 Oct 18, 2018 | Nestlé nine-month sales 2018 | 1
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 2018 – Mark Schneider, CEO
Nine-month sales 2018 Mark Schneider, CEO Oct 18, 2018 | Nestlé nine-month sales 2018 | 3
Slide 4: Key messages
Key messages • Continued progress with the Nestlé accelerated value creation model • Organic growth of 2.8% supported by increased momentum in North America, China and infant formula • Sharpened our strategic focus on food and beverage, and nutritional health products: Nestlé Skin Health now under s
Slide 5: Nine-month sales 2018 – CFO
Nine-month sales 2018 François-Xavier Roger, CFO Oct 18, 2018 | Nestlé nine-month sales 2018 | 5
Slide 6: Nine-month sales growth
Nine-month sales growth OG +2.8% +0.1% -0.9% +0.5% +2.3% 66.4 65.1 Reported sales growth +2.0% -30 9M 2017 sales RIG Pricing Net M&A Foreign 9M 2018 sales (bn CHF) exchange (bn CHF) Oct 18, 2018 | Nestlé nine-month sales 2018 | 6
Slide 7: Broad-based OG and RIG across geographies
Broad-based OG and RIG across geographies AMS EMENA AOA Sales 29.4 bn 19.7 bn 17.3 bn (in CHF) RIG 1.6% 2.1% 3.8% Pricing 0.8% -0.2% 0.5% OG 2.4% 1.9% 4.3% Each geography includes zones, Nestlé Waters, Nespresso, Nestlé Health Science and Nestlé Skin Health Oct 18, 2018 | Nestlé nine-month sales 201
Slide 8: Strong RIG in developed and emerging markets
Strong RIG in developed and emerging markets Developed Emerging Sales (in CHF) 38.1 bn 28.3 bn % of group sales 57% 43% RIG 1.3% 3.6% Pricing 0.1% 0.9% OG 1.4% 4.5% Oct 18, 2018 | Nestlé nine-month sales 2018 | 8
Slide 9: Zone AMS
Zone AMS Sales CHF 21.9 bn Real internal growth +0.8% Pricing +0.6% Organic growth +1.4% • North America had positive growth in the nine- Outshine photo to be provided by months, with increased pricing in Q3 NUSA • Latin America saw positive growth and accelerated to a mid single-digit pace in Q3 •
Slide 10: Zone EMENA
Zone EMENA Sales CHF 13.7 bn Real internal growth +2.3% Pricing -0.7% Organic growth +1.6% • Resilient RIG in a challenging environment. To be updated with Purina photo • Pricing slightly down, largely reflecting commodity deflation • Premium products drove strong growth for Purina petcare, infant n
Slide 11: Zone AOA
Zone AOA Sales CHF 15.8 bn Real internal growth +3.7% Pricing +0.7% Organic growth +4.4% • Consistent mid single-digit growth with solid RIG and positive pricing • China maintained mid single-digit pace • Maggi and Milo were key growth drivers in the zone • Infant nutrition and Purina Petcare accele
Slide 12: Nestlé Waters
Nestlé Waters Sales CHF 6.1 bn Real internal growth -0.2% Pricing +2.3% Organic growth +2.1% • North America reported positive growth, supported by increased pricing to offset higher PET and freight costs • Europe returned to positive growth with strong RIG in Q3, supported by innovations • S.Pelleg
Slide 13: Other Businesses
Other Businesses Sales CHF 8.9 bn Real internal growth +5.7% Pricing +0.3% Organic growth +6.0% • Nespresso sustained mid single-digit growth, with strong momentum in the Americas and Asia • Nestlé Health Science continued to deliver mid single- digit OG, driven by RIG • Nestlé Skin Health had high
Slide 14: Growth by products
Growth by products 4.4% 4.0% Organic growth 2.8% 2.9% 2.4% 2.0% 1.6% 1.1% Total group Powdered and Water Milk products Nutrition and Prepared dishes Confectionery Petcare liquid beverages and ice cream Health Science and cooking aids Oct 18, 2018 | Nestlé nine-month sales 2018 | 14
Slide 15: 2018 guidance confirmed
2018 guidance confirmed • Organic sales growth of around 3% • Underlying trading operating margin improvement in line with our 2020 target • Restructuring costs* are expected at around CHF 700 million • Increase in underlying EPS in constant currency and capital efficiency * Not including impairment
Slide 16: Q&A
Nine-month sales 2018 Q&A Oct 18, 2018 | Nestlé nine-month sales 2018 | 16
Slide 17: Supporting slides
Nine-month sales 2018 Supporting slides Oct 18, 2018 | Nestlé nine-month sales 2018 | 17
Slide 18: 9M-2018 Operating segments – quarterly summary
9M-2018 Operating segments – quarterly summary Q3-2018 sales Sales RIG Pricing OG (CHF m) % % % Zone AMS 7’765 0.4 1.7 2.1 Zone EMENA 4’428 0.7 -1.1 -0.4 Zone AOA 5’165 3.8 0.6 4.4 Nestlé Waters 2’160 0.6 3.5 4.1 Other Businesses 2’994 6.1 0.5 6.6 Total Group 22’512 2.0 0.9 2.9 Oct 18, 2018 | Nestlé
Slide 19: 9M-2018 Operating segments – topline summary
9M-2018 Operating segments – topline summary 9M-2018 sales Reported Sales RIG Pricing OG Net M&A F/X sales growth (CHF m) % % % % % % Zone AMS 21’918 0.8 0.6 1.4 -1.1 -3.2 -2.9 Zone EMENA 13’731 2.3 -0.7 1.6 -0.1 2.2 3.7 Zone AOA 15’799 3.7 0.7 4.4 0.0 -1.3 3.1 Nestlé Waters 6’127 -0.2 2.3 2.1 -0.8
Slide 20: 9M-2018 Products – topline summary
9M-2018 Products – topline summary 9M-2018 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages 15’388 2.3 0.6 2.9 Water 5’765 0.0 2.4 2.4 Milk products and ice cream 9’758 0.8 0.8 1.6 Nutrition and Health Science 11’905 4.8 -0.4 4.4 Prepared dishes and cooking aids 8’716 1.0 0.1 1
Slide 21: 9M-2018 historical eight quarters
9M-2018 historical eight quarters Period RIG Pricing OG % % % 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 Q4-2017 1.2 0.7 1.9 Q1-2018 2.6 0.2 2.8 Q2-2018 2.4 0.2 2.6 Q3-2018 2.0 0.9 2.9 Oct 18, 2018 | Nestlé nine-month sales 2018 | 21
Slide 22: 9M-2018 currency overview
9M-2018 currency overview Weighted average rate 9M-2017 9M-2018 Variation in % US Dollar 1 USD 0.983 0.973 -1.0% Euro 1 EUR 1.095 1.161 +6.0% Chinese Yuan Renminbi 100 CNY 14.468 14.924 +3.2% Brazilian Reias 100 BRL 30.972 26.905 -13.1% Mexican Pesos 100 MXN 5.213 5.105 -2.1% UK Pound Sterling 1 GBP
Slide 23: 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 FCF Free Cash Flow TOP Trading Operating Profit UTOP Underlying Trading Operating