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Eastern Europe – Significant Opportunities
Our Business Model For Sustainable Growth
Russia – Building Platform to Fuel a Growth
Conclusions
Source: AC Nielsen, ERC, Company Data
Per Capita Consumption (kg) 0-3 years
1616
France
Germany
Italy
Czech
Poland
Russia
Romania
Hungary
Market Value € mln
Source: AC Nielsen/company data
Incl. Russia, Poland, Ukraine, Czech/Slovak, Hungary, Baltics, Romania
Source: AC Nielsen/company data
Cereals
Milks
Meals
Size of Market
250
347
503
Growth of Segment
33%
21%
27%
Toddlerisation
Innovation
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
M
i
l
k
s
Premiumization
Increase usage
Toddlerisation
Innovation
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
Strong Brands and Consumer Understanding
Market Leadership
Financial Returns
Meals
Cereals
Milks
Premiumization
Increase usage
Estonia
Slovak
Hungary
Poland
Romania
Lithuania
Latvia
Czech
Ukraine
Russia
Bulgaria
1
Source:AC Nielsen
I postpone my purchase
I go to another shop tobuy my brand
I seek advice from HCPor someone else
I will buy another brand
Source: Global U&A, GFK 2003
MILKS
Milks: Establish leadership first
Cereals: Win point of entry into food
Meals: From position of strength drive weaning food
MilksMilks FoodsCereals
72%13%17% of sales
FoodsMeals
72%13%18% of sales65% of sales
Source:company data
Milks Numico 42.7% 44.4% + 170Nestle 34.5% 35.2% + 70
Meals Numico 16.0% 14.7% - 130Nestle 21.0% 21.3% + 30
Cereals Numico 35.7% 38.4% + 270Nestle 24.7% 24.3% - 40
∆bps
Value Market Share (Numico Universe)
Source:AC Nielsen/company data
70%
5%
25%
45%33%
22%83%
1% 16%
Specific baby Non-baby food Breast milk
Source: U&A 2006
%Share of Stomach
Age (months)
Add Value/- quality / ingredients
- convenience
Increase
Usage
Toddlerization
Products until 3 yrs instead of 18 months
Market Value € mln
Source: AC Nielsen/company data
Market Shares Total Baby Food (value)
Source: MEMRB
2006 MAT
2007 MAT
Source: MEMRB 2007
Milks Cereals Meals
1. Focus on key categories – milks and cereals
2. Increased investment in: ‘best in class’ marketingdistribution expansionmanufacturing to step-change cost base and innovation speed
3. Cover „white spots“ :in product portfoliogeographically in CIS (once points 1 and 2 are achieved)
Source: company data
Very strong market position
Continuous investment in brands and consumer insight s
Focus on innovation (very good pipeline)
Very strong, motivated and winning teams
Leverage Danone/Bledina opportunities
Strong Double Digit Growth
