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1 ... 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

captures the very essence of Nestlé and the promise to ... · 1... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading

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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

15 November 20103

moment of every day,

from morning to night

and from birth to old age

The Nestlé Roadmap

4 15 November 2010

Growth

drivers

Competitive

advantages

Operational

pillars

Nestlé’s geographic reachUnmatched global scale

Americas

CHF 44bn

Europe

CHF 35bn

AOA

CHF 20bn

Emerging markets sales of CHF 35bn

15 November 20105

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

15 November 20106

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

15 November 20107

Sales FY 2009; EM = Emerging Markets (LatAm, Carribean, Eastern Europe, and AOA excl. Japan, Oceania, South Korea and Israel)

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

15 November 201010

Nestlé’s specific business modelsTargeting emerging consumer groups

Premium

Mainstream

PPP

15 November 201011

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

15 November 201012

Nestlé’s objective

is to be the recognized

leader in Nutrition,

Health & Wellness,

and the industry

reference for financial

performance

15 November 201013

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%

15 November 201015

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…

15 November 201016

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

15 November 201018

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

15 November 201020

Nestlé’s objective

is to be the recognized

leader in Nutrition,

Health & Wellness,

and the industry

reference for financial

performance

15 November 201021