Nestle S.a. · SIX:NESN
Nestle — Investor Day (June 2010)
24 slides from Nestle's investor day presentation, Jun 21, 2010
Slide 1: Why Nescafé Dolce Gusto?
Why Nescafé Dolce Gusto ? 1 Nestlé Investor Seminar
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: Consumers WW looking for versatility, quality and convenience
Consumers WW looking for versatility, quality and convenience A desire for more choice A desire for better quality A desire for more convenience Consumers have the right to be lazy and demanding at the same time 3 Nestlé Investor Seminar
Slide 4: The coffee market is changing fast
The coffee market is changing fast WW trends are emerging From To 4 Nestlé Investor Seminar
Slide 5: There was a gap in the market
There was a gap in the market High pressure Nespresso NDG Full Automat n g Black coffee Lo rews Multi bev. systems B up systems c Senseo Keurig Tassimo Drip filter Black cups high pressure White cup specialty coffee coffee type Low pressure type & non-coffee bev. 5 Nestlé Investor Seminar
Slide 6: We have the best technology
We have the best technology 6 Nestlé Investor Seminar
Slide 7: Unique proprietary technology give us an incredible competitive edge
Unique proprietary technology Give us an incredible competitive edge Customised extraction pressure Espresso: 6 bar Lungo: 3 bar Milk: <1 bar Technical advantage Variable temperature Direct Flow Choice (from espresso to brew cup), Consumer Benefit convenience, less cleaning, Quality 7 Nestlé Investo
Slide 8: Exceptional performance in 60/40
Exceptional performance in 60/40 • Chococino vs. Tassimo : 93/07 • Cappuccino vs. Tassimo: 73/27 • Latte macchiato vs. Tassimo: 68/32 • Lungo Mild vs. Tassimo: 64/36 • Espresso vs. Tassimo: 59/41 • Lungo vs. Tassimo: 58/42 8 Nestlé Investor Seminar
Slide 9: What have we built so far
What have we built so far 9 Nestlé Investor Seminar
Slide 10: Coffee-shop coffees @ home
1 strong concept supported by… Coffee-shop coffees @ home 10 Nestlé Investor Seminar
Slide 11: A machine range like no other
…a machine range like no other… • Design • Cost • Functionalities 11 Nestlé Investor Seminar
Slide 12: A range of recipes of superior quality
…a range of 22 recipes of superior quality… Black Coffee • Moment • Target • Need State Indulgent Cold Morning 12 Nestlé Investor Seminar
Slide 13: A strong and modern brand visual identity
…a strong and modern brand visual identity… 13 Nestlé Investor Seminar
Slide 14: Unique brand personality
… unique brand personality … 14 Nestlé Investor Seminar
Slide 15: A big business
…a big business… By the end of 2010: #1 • Roll-out in 36 markets #2 • Close to 5 Millions machines sold to the trade • 2’000’000 registered consumers #3 • 4TH system WW already ahead of Tassimo. # 4 #5 15 Nestlé Investor Seminar
Slide 16: Our business grows from the base (the key markets)
...our business grows from the base (the key markets)... Markets Launch Share of % evol. Year Business ´08 vs.´09 Wave 1 2006 39% +36% Wave 2 2007 51% +58% Wave 3 2008 8% +183% Wave 4 2009 2% +318% 16 Nestlé Investor Seminar
Slide 17: ... and a new ambition for Nescafé
... and a new ambition for Nescafé Convenience = Superior Personalisation Quality By the cup 17 Nestlé Investor Seminar ü
Slide 18: We are strong on the key drivers of this business
We are strong on the key drivers of this business Get People to upgrade Superior • 70/30 superiority quality àvs. competition àusual coffee solution • Variety à Recipes Convenienc • By the cup Choice àCapsule e • Cleanliness àDirect flow àDesign 18 Nestlé Investor Seminar
Slide 19: How do we Operate?
How do we Operate ? 19 Nestlé Investor Seminar
Slide 20: A unique route to market
A unique route to market Tutbury WiK China SEB / De Longhi Girona Machine Machine Coffee production distribution production Specialised Food Food Retail Retail Retail 20 Nestlé Investor Seminar
Slide 21: A centralized model in a decentralized organisation
A centralized model in a decentralized organisation A hybrid business àthe best of both world • A Central team (to contain complexity and cost): Global Strategy, System I/R, Partnership management Global Operations. • Role of the market is local implementation, flawless execution and ultimately P&L
Slide 22: How do we see the Future
How do we see the Future 22 Nestlé Investor Seminar
Slide 23: Our vision CHF 1 Billion business
Our vision CHF 1 Billion business 2006 2007 2008 2009 2010 2011 2012 2013 2014 NPS (mio CHF) 295 197 6 66 23 Nestlé Investor Seminar
Slide 24: Key Learning
Key Learning • Breakthrough innovation drives growth even in the most mature businesses. • It can also create huge value in otherwise commoditised markets • Nescafé will find a new dimension thanks to Nescafé Dolce Gusto • Combining centralised with decentralised approaches accelerated growth much f