pres brazil dec 2005

8/8/2019 Pres Brazil Dec 2005

1/46

PresentationNestl Braz

to Investors and A

Sao Paulo, December


2/46

This presentation contains forward looking sta

Managements current views and estimates. Th

statements involve certain risks and uncertainactual results to differ materially from those co

looking statements. Potential risks and uncerta

include such factors as general economic cond

exchange fluctuations, competitive product an

and regulatory developments.


3/46

Nestl in Latin America a


4/46

519 million people

4 major languages

(English, Spanish, Portugu

Countries: 21

Pants: 74

Employees: 39.000

Sales: CHF 8.7bn

Organic growth: 10,7 % 20

4 Brands over CHF 1 Billio

Nestl Chocolate

Nestl hasMexico

Bolivarian

Austral

America

Brazil

Central Americaand Caribbean


5/46

Latam

4,5

6,43,2

Sales

EBITA Zone AMS

Latin America and Caribbean

Brazil Mexico

RIG

%


6/46

Nestl Brazil - a bus


7/46

Cu

COFFEE,BEVERAGES+

FOOD SERVICES( J. Blaser )

MILK,CULINARY+CEREALS,

( G. Aubry )

CHOCOLATES( L. Leiman )

BISCUITS

( F. Costa )

REGIONALNORTH ANDNORTHEAST

( J. Wei )

GLOBEBRASIL

( O. Carvalho )

ICE CREAM( L. Oddone )

NUTRITION( M. Rosado)

FINANCE AND

CONTROL( L. Paravicini )

TECHNICAL( A. Berger )

LEGAL( H. Maccabelli )

SUPPLY CHAIN

( Moacyr Calligaris )

HUMAN RESOURCES( J. Dornellas)

SALES( L. Brinckmann )

CORPORATEMATTERS

( C. Faccina )

COM. + MKTSERVICES

( M. Castelar )

PRESIDENT( Ivan Zurita )


8/46

Big PopGDP

Terr

Cult

- Vi- Po

- B

Being Big is

Alsobig


9/46

3.240Km

RR

AM

AC

RO

MT

MS

GO

PA

AP

DF

SP

PR

SC

RS

RJ

MG

BATO

PI

MA

ES

SE

PB

RN

PEAL

CE

3.550 Km

To Operate

We mu

Leader in Food Indus 84 years of Brazil 15.200 Employees More than 220.000 ind

200 Brands 1300 SKUs 26 factories Present in 95% of Bra 1.4 Million tons handl 10 thousand trucks lo


10/46

Im

Average annual investments

Foremost tax payer among the countrys food comp

Major Comm

US$ 560 million in 2004

US$ 144 million in infrastructureUS$ 123 million in marketing

Sugar = 2Coffee= 1Cocoa =Milk = 2 b


11/46

Performance


12/46

Ranking in Nestl Group

Sales 2004 Mio CHF 2.899*

2nd in volume

5th in sales5,6%

3,9%

NestlNPP BrazCPW 50%

*Total sales of Nestl in Brazil


13/46

Divers

9%

9%

7%

10%25%

3%3%4%

4%

26%

Solu

Foo

Ice

Culi

Bisc

Exp

PowNut

She

Cho


14/46

Driven by Innov

0

10%

20%

30%

2002 2003 2004 200

40%

2001

5% 8%14%

26%28%

209 Mio 450 mio

771 Mio

1526 Mio

1`811 Mio

54 90 138 20670No. Product

Innov/Renov


15/46

InnovatiAdding nutritional value: NINHO

Benefit: Protection Stim

Product: Specialized M

Benefit: Milk-based Nutrition

Product: Full Cream Milk Powd

5-10% Price Premium


16/46

Innovati

Being relevant to consumer

Launch: October 2004Market Share: 38,2%

Seven cans per second

are sold in Brazil

Condensed milk Condensed


17/46

Participation of Nestl

Categories Ranking Main Competitors

Infant Formulas

Baby Food

Traditional Cereals

Soluble CoffeeMilk Powder

Choc Powder

Chocolates (Nestl+Garoto)

Condensed Milk

Soups

Dairy Milk

Biscuits (up to 300gr)

Pet food

Yogurts

Cubes

Ice CreamBreakfast Cereals

1

1

1

11

1

1

1

1

1

1

2

2

2

22

Support

Nutrimental, Mococa

Melita, Santa Clara, IguauItamb, Camponesa/

Parmalat

Quaker

Lacta-Kraft, Hersheys, Ferrero

Parmalat, Itamb, Elege

Unilever

Parmalat, Glria, Itamb

Danone, M.D.Branco,

Nabisco, Bauducco, Piraqu

Effem (Mars), Nutriara

Danone, Batavo

Unilever, Arisco

UnileverKelloggs


18/46

Continuous Perform

Nestl Consolidated Sales and EBITAoutgrow both inflation and GDP

2001 2002 2003

Net Sales 100 125 143

EBITA 100 137 149

GDP 1,9% 0,3% 5,2%

INFLATION 12,5% 9,3% 7,6%

2004

155

194

1,3%

7,7%


19/46

Garoto


20/46

Key Performance Indicators ( 2004 X 2001)

NPS

EBITA(m

M. SHARE%


21/46

Regionalization

Operational

Efficiency

Commu-nication

Nestl onthe Move

NewConsumption

Sector


22/46

Brazilian consumers have an emotional relat

Nestl brand transcends the marketing dime

as part of Brazilian life.

Nestl brand adds a special and unique value


23/46

One communication concept: Nestl faz bem

Related with

Consumers perception and with

Nestl. Good Food, Good Life

*Has in large a meaning of Do Well, Well Done


24/46

One Comm

Nestl faz b

Related with

Consumers and wellnes

and

Nestl. Good


25/46

New communication ex

C


26/46

Co

2.100.000 issues


27/46


28/46


29/46

Top of Mind (Folha de So Paulo newspaper)

Marketing best (Getulio Vargas Foundation)

iBest (best Internet site)

Consumer service - Respect to consumers (R Best company (Exame magazine)

Most admired foreign company (Carta Capita

Top Social, Eco, Good citizen,

Promotion of the Year

First Choice - Forbes

Top 100 companies to work nine times


30/46

Regionali

zation

Nestl onthe move


31/46

Fonte: IBGE

Area: 18%Population: 28%Income: 12%

Northeast RegionArea: 46%Population: 8%Income: 5%

North Region

Area: 19%Population: 7%Income: 7%

Midwest Region

Area: 11%Population: 43%

Income: 60%

Southeast Reg

Area: 6%

Population: 15%Income: 16%

South Region

Brazil A country of contrasts

Brazil a


32/46

Brazil a

North/Northeast Southeast/South

A


33/46

. 62 Mio62 Mio inhabitant

. U$ 115 BiU$ 115 Bi GDP 20

. 5,2 Mio Km5,2 Mio Km22 (64%

. 1515 states (out of 2

Sources: IBGE, Nielsen, LatinPanel, Nestl BI

North / Northeast

A

Nestl ha


34/46

CreamSoups

Chocolates (Nestl+Garoto)

Milk Powder Whole

Condensed Milk

Modified Cereals

Choc Powder

Soluble Coffee

Baby Food

Infant Formulas

Biscuits (up to 300gr)

Breakfast Cereals

Bouillons

Milk Powder Skimmed

1

1

1

1

1

3

1

1

1

1

1

1

1

1

Unilever / AriscoGloria / Vale Dourado

Lacta-Kraft

Itamb / Camponesa

Itamb / Vale Dourado

Unilever / Nutriday

Quaker / Santa Clara

Santa Clara/ Marat

-

-

M.D. Branco / Vitarella

Kelloggs / So Bras

Unilever / Arisco

Glria

CATEGORIES RankingMain Competitors and

Local Comp.

Nestl ha

LOCAL TA

Intense pr

Fiscal ben

Tax engin

DSD in foc

Packaging

Strong po


35/46

First Results


36/46

EXCLUSIVE North/No

1.907 tonsFeb - YTD

81,2 tonsMar - YTD

183,8 tonsJul - YTD

Presence


37/46

Presence

Northeast: So JooThe most expected party in the region, wmillions of consumers that party with refoods.

North: Festival de ParintinsStrong folklore competitionbetween Caprichoso & Garantidoteams (oxes) in the North region,with strong link with consumerspassion.


38/46

NewConsumption

Sector

Nestl onthe move


39/46

Currently serving 238.000 Point Of Sales1 million additionaSales to serve mo

Nestl

DAN

Wholesaler

Broker

KeyAccount

NewConsumption

Sector

SmallRetail

Streetvendor

Do

New modTraditional business model

Im


40/46

Nestl New Consumption Sec

CDE Partnerships FNCC

Nestl CommunityCenter

Im

N


41/46

Results of one N

Net Sales: Jan

Improved 60%

50 sales repre

28.000 homes

Status:

N

* Ne

NC


42/46

Nestl At Voc

+ +

Street vendors in pubtransit places where are.

One coin concepts (R

Description: Street vendors selling ice-pops

One coin concepts (R$ 0,50)

Description:

Geladinho

NC


43/46

Casas Bahia

The largest retail store in Brazil

Represents 30% all home appliance sales in Brazil

Net sales of US$ 3,5 billion

90% belong to CDE classes 503 Stores

Description:

Nestl Store at Casas Bahia

Food Baskets

Sale of Nestlfood baskets

60 million bask

Description:


44/46

Nestl onthe move

OperationalEfficiency


45/46

NBS* LATAM will be located in Ribeiro Preto and will prov

7 regions 21countries

Brasil

Mxico

Ex-Andean

Bolivariana

Caribe

Amrica Central

Ex-Plata

- M

- Tw

- No

- Br

- 21

- Cu

- Se(e

MaiShared Services CenterLATAM

Savings: 10 Mio CHF

*Nestl Business Center


46/46

Nestl Braz

Passion to Gr

Sao Paulo, December

pres brazil dec 2005

Documents