captures the very essence of nestlé and the promise to ... · 1... captures the very essence of...
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... captures the very essence
of Nestlé and the promise
we commit ourselves
to everyday, everywhere
as the leading Nutrition, Health
& Wellness Company
15 November 2010
15 November 20102
Building on Nestlé’s heritage1866
1929
1938
1947
1960s
1970s
1980s
1990s
2000s
Henri Nestlé
2010
Nestlé’s greatest assets
Nestlé Culture: aligning over 280,000 people from
120 countries
Consumer Trust: 1 billion customers a day
A product for every
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moment of every day,
from morning to night
and from birth to old age
Nestlé’s geographic reachUnmatched global scale
Americas
CHF 44bn
Europe
CHF 35bn
AOA
CHF 20bn
Emerging markets sales of CHF 35bn
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Emerging market performance
Emerging markets are enhancing to organic growth
are enhancing to EBIT margins
are a focus of Capex and M&A
and
and
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Global
Sales
CHF bn
% of
Sales in
EMs
Global
Sales
CHF bn
% of
Sales
in EMs
Dairy 13.0 80 Ambient Culinary 7.4 50
PetCare 12.9 10 Ice Cream 6.6 20
Confectionary 11.8 45 Powdered Beverages 3.4 65
Soluble Coffee 10.6 50 RTD Beverages 1.2 40
Frozen & Chilled 9.7 0 Weight Management 0.6 0
Water 9.0 15 Performance Nutrition 0.2 0
Infant Nutrition 7.4 50
Nestlé’s diverse portfolioUnparalleled breadth across product groups
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Sales FY 2009; EM = Emerging Markets (LatAm, Carribean, Eastern Europe, and AOA excl. Japan, Oceania, South Korea and Israel)
Building enduring franchisesBillionaire Brands contribute 75% of sales
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SBU/GMB/Zone lead
Market/Zone lead
9
Innovation & RenovationFrom game changing ideas to consumer relevant adaptation
Generating
conceptsExceptional
performance
Continuous
improvementThe essential
start...
15 November 2010
Nestlé’s approach to Nutrition, Health & WellnessEnabling consumers to make healthy choices
Pleasure
60/40+
Combining best taste
with best health
Balance
Branded Active Benefits
Making a good Nestlé
brand even better
Understanding
Nutritional Compass
Helping consumers with informed dietary choices
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Nestlé’s specific business modelsTargeting emerging consumer groups
Premium
Mainstream
PPP
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PPP = Popularly Positioned Products
Nestlé’s belief is that businesses can only be
successful in the long term by
creating value for shareholders society
Nutrition Water Rural Development
and
Creating shared value
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Nestlé’s objective
is to be the recognized
leader in Nutrition,
Health & Wellness,
and the industry
reference for financial
performance
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14
The Nestlé ModelCreating value through profitable growth
Organic growth of 5% to 6%
EBIT margin improvement every year
Increase return on invested capital
15 November 2010
Data corresponds to published figures – not restated for accounting changes. *9 months 2010
7.4%
9.7%
5.1%
4.5%
6.2% 6.2%
4.1%
5.4%4.9%
8.3%% Organic Growth
RIG
10-year annual averages
Organic Growth 6.2%
Real Internal Growth 3.5%
6.1%
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10 years of the Nestlé Model…… together with a high level of organic growth…
Group EBIT
EBIT margin
CHF bn
Data corresponds to published figures – not restated for accounting changes.
10 years of the Nestlé Model Consistent improvement in the EBIT margin…
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17
Share Buy-Back
Dividend (CHF bn)
Dividend Payout Ratio
15 November 2010
*Forecast
… has enabled significant cash returns to
shareholders…
Nestlé continues to deliver total performance
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Achieving
Simplicity
Investing
for GrowthDriving Scale
Benefits
Accelerating
Performance
THE NESTLÉ MODEL
||
and andand
as an enabler
MH'97
Target 2004+
OperationEXCELLENCE2007
CI
Performance
2010...200520011997 2008
19 15 November 2010
Nestlé’s operational efficiencyDelivering the highest quality, lowest cost & best customer service
Nestlé's global presence: an unparalleled foundation for growth
We are investing in R&D, in capabilities, infrastructure, people
and brands to drive growth
The Nestlé Roadmap: the building blocks for growth by
category and country – global strategy, local execution
We are all aligned behind our Roadmap, focused on
acceleration in everything that we do
We are committed to the Nestlé Model for years to come
Nestlé outlookOpportunities for growth
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