Slide 1: Welcome to the Nine-Month Sales Conference
Welcome to the Nine-Month Sales Conference
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 Conference
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 4: Nestlé Group Highlights
Nestlé Group Highlights Sales CHF 65.5 bn Organic Growth 3.3% Real Internal Growth 2.5% 3 October 20, 2016 Nine-Month Sales 2016
Slide 5: Nine-Month Sales 2016
Nine-Month Sales 2016 François-Xavier Roger Chief Financial Officer
Slide 6: Volume-driven growth in challenging environment
Volume-driven growth in challenging environment Sales Real Internal Growth Organic Growth (in CHF) (RIG) (OG) 65.5 bn + 2.5% + 3.3% Total Sales Growth: +1% 5 October 20, 2016 Nine-Month Sales 2016
Slide 7: Broad-based growth despite deflationary environment
Broad-based growth despite deflationary environment AMS EMENA AOA Sales (in CHF bn) 29.0 20.0 16.5 RIG +2.3% +2.4% +3.0% OG +4.8% +2.1% +2.5% Each geography includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, Nestlé Health Science, and Nestlé Skin Health 6 October 20, 20
Slide 8: Increasing RIG in Developed and Emerging Markets
Increasing RIG in Developed and Emerging Markets Developed Emerging Sales (in CHF bn) 38.0 27.5 % of Group sales 58% 42% Real Internal Growth 2.5% 2.5% 9M 2015 2.4% 1.6% Organic Growth 1.9% 5.3% 9M 2015 2.2% 6.8% 7 October 20, 2016 Nine-Month Sales 2016
Slide 9: Zone AMS
Zone AMS Sales: CHF 18.8 bn RIG 1.6% OG % 4.5% Pricing improved but weighed on volumes North America impacted by deflationary environment – Coffee-mate and petcare were strong growth drivers in the US – Frozen food continued to grow well, gaining market share – Canada had solid growth, especiall
Slide 10: Zone EMENA
Zone EMENA Sales: CHF 12.2 bn RIG 2.7% OG % 2.2% Good RIG momentum drove broad-based market share gains Western Europe had negative pricing in deflationary environment – France and Southern Europe performed well; UK was challenging – Nescafé Dolce Gusto, petcare, and pizza continued to grow well
Slide 11: Zone AOA
Zone AOA Sales: CHF 10.6 bn RIG 2.7% OG % 2.8% Good growth across most markets in the Zone, but momentum was diluted mainly by Yinlu in China China was still impacted by limited category growth and Yinlu’s performance; however Nescafé and confectionery continued to grow well India grew well, w
Slide 12: Nestlé Waters
Nestlé Waters Sales: CHF 6.1 bn RIG 4.4% OG % 4.2% Good growth momentum, driven by volume – Developed markets sustained positive organic growth contribution despite negative pricing – Emerging markets delivered high single-digit organic growth Premium international brands Perrier and S.Pellegrin
Slide 13: Nestlé Nutrition
Nestlé Nutrition Sales: CHF 7.7 bn RIG 0.8% OG % 1.3% Soft category dynamics resulting in growth slowdown China: category was affected by negative pricing and inventory de- stocking, however Nestlé and Wyeth brands gained market share US: back to growth as supply constraints during packaging t
Slide 14: Other Businesses
Other Businesses Sales: CHF 10.1 bn RIG 4.0% OG % 4.6% Nestlé Professional – Emerging markets drove growth, particularly Mexico and Russia – US was resilient despite pricing pressures; Europe was challenged Nespresso – Maintained good broad-based growth across geographies – VertuoLine grew well
Slide 15: Broad-based growth across product groups
9M 2016 Broad-based growth across product groups 6.0 % Real Internal Growth 5.5 % Pricing 5.0 4.9 4.7 1.2 0.8 4.0 3.3 3.0 3.0 2.8 0.8 0.6 0.7 4.9 4.3 2.0 4.1 1.6 2.5 0.9 2.4 1.0 2.1 0.3 3.0 0.6 0.0 -0.2 -1.4 -1.0 -2.0 TOTAL Powdered Water Milk products Nutrition Prepared dishes Confectionery PetCare
Slide 16: Summary
Summary Resilient portfolio supporting real internal growth momentum Pricing low due to deflation, with early signs of improvement Further gains in market share For the Full Year 2016, considering the softer environment, we now expect: Organic growth of around 3.5%, improvements in margins a
Slide 17: Nine-Month Sales Conference
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
Slide 18: INS Years
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Slide 20: Nine-Month Sales 2016 Supporting Slides
Nine-Month Sales 2016 Supporting Slides 19 October 20, 2016 Nine-Month Sales 2016
Slide 21: Operating Segments
9M 2016 Operating Segments 5.0 4.5 4.6 % Real Internal Growth % Pricing 4.2 0.6 4.0 3.3 3.0 2.9 2.8 0.8 0.1 2.0 2.2 4.4 4.0 1.3 2.5 2.7 1.0 0.5 1.6 2.7 0.8 0.0 -0.2 -0.5 -1.0 TOTAL Zone Zone Zone Nestlé Nestlé Other GROUP AMS EMENA AOA Waters Nutrition Businesses 20 October 20, 2016 Nine-Month Sales
Slide 22: Currency Overview
Currency Overview Weighted average rate 9M 2015 9M 2016 Variation US Dollar 1 USD 0.95 0.98 +2.7% Euro 1 EUR 1.06 1.09 +3.0% Chinese Yuan Renminbi 100 CNY 15.26 14.91 -2.3% Brazilian Reais 100 BRL 30.33 27.83 -8.2% UK Pound Sterling 1 GBP 1.46 1.36 -6.6% Mexican Pesos 100 MXN 6.13 5.36 -12.5% Philpp
Slide 23: FX Impact
FX Impact FX Impact 9M 2016 Zone AMS -3.6% Zone EMENA -0.6% Zone AOA -1.6% Nestlé Waters +0.5% Nestlé Nutrition -2.8% Other Businesses -0.2% Total -1.7% 22 October 20, 2016 Nine-Month Sales 2016
Slide 24: Quarterly Summary – by operating segment
Quarterly Summary – by operating segment Third Quarter 2016 Sales (CHF bn) RIG % OG % Zone AMS 6.7 0.0 3.5 Zone EMENA 4.1 2.2 1.4 Zone AOA 3.5 3.4 3.7 Nestlé Waters 2.2 3.9 4.1 Nestlé Nutrition 2.5 0.1 1.4 Other Businesses 3.4 3.7 5.4 TOTAL GROUP 22.4 1.9 3.2 23 October 20, 2016 Nine-Month Sales 201
Slide 25: Quarterly Summary – historical quarters
Quarterly Summary – historical 10 quarters Period RIG % Pricing % OG % Q2 2014 3.2 1.9 5.1 Q3 2014 1.2 2.9 4.1 Q4 2014 2.4 2.1 4.5 Q1 2015 1.9 2.5 4.4 Q2 2015 1.4 3.2 4.6 Q3 2015 2.7 1.0 3.7 Q4 2015 2.7 1.2 3.9 Q1 2016 3.0 0.9 3.9 Q2 2016 2.7 0.4 3.1 Q3 2016 1.9 1.3 3.2 24 October 20, 2016 Nine-Mont