Upload
others
View
9
Download
0
Embed Size (px)
Citation preview
30 March 2011 CAGE
Nestlé:a unique capability to win
CAGE 2011
30 March 2011 CAGE
DisclaimerThis 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. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.
1
30 March 2011 CAGE
Paul BulckeCEO
Nestlé:a unique capability to win
30 March 2011 CAGE
The Nestlé Roadmap: an aligning dimension...
Operational Pillars
Growth Drivers
CompetitiveAdvantages
...more relevantthan ever before
3
30 March 2011 CAGE
Leveraging our competitive advantagesfor today’s environment...
4
30 March 2011 CAGE
Unmatched product and brand portfolio
5
30 March 2011 CAGE
Unmatched product and brand portfolio - China
Mass Affluent100 - 200
Chinese UrbanHousehold
Annual Income(‘000 RMB)
Upper MiddleClass
40 - 100
Lower MiddleClass25 - 40
Poor<25
Global Affluent>200
AMBIENT DAIRY& CEREALS
COFFEE BEVERAGES CULINARY CONFECTIONERY ICE CREAM
3% 17%
Share of UrbanIncome
2005 to 2015
24% 28%
15% 39%
51% 10%
~7%
6
30 March 2011 CAGE
Nutrition, Health and Wellness
Nestlé’s portfolio is positioned to drive growth and value
in all categories asthe Nutrition, Healthand Wellness leader
Pleasure Balance
Understanding
Consumer preference (60/40+)∼ 70% win rate
43% of F&B portfoliotested over last 3 years
7
30 March 2011 CAGE
Over 6,500 products renovatedfor nutrition or health
considerations in 2010
e.g. fortified servings94 billion of culinary products
43 billion of ambient dairy products25 billion of chocolate-malt beverages
+13.2% consumer facing media investment in 2010
in constant currencies
Consumer communicationAdditional nutritional arguments
& product differentiation
Driving competitive differentiation &enhanced value
Increased investment in consumer communication
8
30 March 2011 CAGE
Innovation Sweet-spot
Creating shared valueCan we create value for the society and Nestlé?
Consumer/Shopper InsightsWhat is needed by consumers?
Commercial CapabilityDo we have the commercial
capabilities to do this?
Scientific/Technological Capacity
What is scientifically feasible and technologically
possible?
9
Nestlé innovation model
30 March 2011 CAGE
Survival/HungerAroma Taste
Variety
Annual secured food & nutrient supply
FoodSupply
FoodSecurity
FoodPleasure
DiseasePrevention
HealthScience
Treatment and disease management
Health andWell-being
Avoidance of deficiencies
Strategic positioning in R&D
Nutrition
Health Science
Food Science Technology
Preservation Technology
Agriculture/Biotechnology
10
30 March 2011 CAGE
2 Science Centres (Lausanne)2 Science Centres (Lausanne)27 PTC and R&D Centres
Nestlé’s global R&D footprint
ILLUSTRATIVE
2 Science Centres (Lausanne)27 PTC and R&D Centres
320 Application Groups
2 Science Centres (Lausanne)27 PTC and R&D Centres
320 Application Groups (significant EM presence)
11
Drivingresearch globally,
enhancing performance
locally
30 March 2011 CAGE
Health Science/
HCN
NutritionInfant
Nutrition Meals
& Drinks
DairyAmbient Dairy Chilled Cereals Beverages
Nespresso Waters CulinaryAmbient
Culinary Frozen/Chilled
Confec-tionery Ice Cream Petcare Professional
BeverageProfessional
Food
Science & Research
Institute of Health Sciences
NRC
NRC NRC NRC NRC NRC NRC NRC NRC NRC NRC NRCNRC
St. LouisNRC NRC
PTC /Lead Centre Konolfingen Konolfingen Fremont Konolfingen Lisieux Orbe Orbe Vittel Singen Solon York Beauvais St. Louis
St. JoeBeverage
Center Singen
SupportingCentres Minneapolis Beijing
SingenQueretaro
Orbe
MarysvilleBeijingDelhi
-
DelhiAbidjanBeijingSderot
MarysvilleSingapore
Delhi
MarysvilleBeijing
DelhiSingaporeShanghai
SingenSan Sepolcro
BrocSantiagoSderot
Bakersfield Amiens
BeijingKonolfing.MarysvilleShanghai
FremontSingaporeShanghai
Solon
Agriculture & Plant Science - - Tours - - Tours
AbidjanTours
Abidjan - ToursAbidjan - Tours
Abidjan Tours - - -
System TechnologyCentre Orbe
✔ ✔ - ✔ - - ✔ ✔ ✔ - - ✔ ✔ ✔ ✔
RTD Marysville ✔ ✔ ✔ ✔ ✔ - ✔ ✔ - - - - - ✔ -
Business&
Categories
Nestlé’s global R&D footprint
12
30 March 2011 CAGE
Nestlé’s ‘5 generation I&R Pipeline’TodayVision
Product Technology Centres
Generation 3
Productdevelopment
Generation 1
Launched
Generation 2
Launchpreparation
Generation 4
Early stageresearch
Generation 5
Research withinnovationpartners
Nestlé Research Centre &External partners
Markets
Value & EBIT – year 3
Risk/Reward
Lucy
Heidi
Copacabana
HappyDays
Everest
Himalaya
Model T
Galaxy
LemonAdvanced
Neo
ScoopExpress
Impact*
TexturedIC
Satellite
Back to the Future
Rash*
0% Sugars
Pre Rash
Pole Position
Champion
Harmony
2 Step Acidification
MOM & Me
Althéra
Sinlac2 Stage Preemie
Pickwick
Diamond Halal
Garuda
Sesame Street
Lucy OrganicZorro 25 % 30 %0 %
EBIT Margin Year 3
Incr
emen
tal N
PS Y
ear
3 (C
HF
mio
.)
13
30 March 2011 CAGE
Consumer value from Nestlé’s I&R PipelinePersonalised
Dematerialisation
33% of sales from products introduced or renovated
in the last 3 years
14
30 March 2011 CAGE
Unmatched geographic presence
1867
15
30 March 2011 CAGE
Unmatched geographic presence
18751874
1899 1899
1871
1899
1899
1872
1899
1899
18731912
18751899
1874
ILLUSTRATIVE
1867
1870
1899
1899
1868
16
Historical presence
(first sales of infant formula)
30 March 2011 CAGE
Unmatched geographic presence
Historical presenceR&D sites
ILLUSTRATIVE
17
30 March 2011 CAGE
Unmatched geographic presence
Historical presenceR&D sitesFactories
91150
77
139
13
910
6
6
195
ILLUSTRATIVE
18
30 March 2011 CAGE
150
Unmatched geographic presence
Historical presenceR&D sitesFactories
Operations
91
77
139
13
910
6
6
195
ILLUSTRATIVE
19
30 March 2011 CAGE
15091
77
139
13
910
6
6
195
Emerging markets Capital Expenditure
CHF billion
20
30 March 2011 CAGE
Unmatched geographic presence
Brands ‘owned’ by consumers locally:Creates deep roots and an unmatched
base forprofitable growth
% Nestlé trust score indexed to the category
Brazil228
South Africa154
India118
Switzerland119
Russia185
Malaysia213
Philippines240
China173Mexico
258UAE268
21
30 March 2011 CAGE
People, culture, values and attitude
Europe32.4%
AOA27.3%
AMS40.3%
Total Employees: 281,000Nationalities: 150
Nationalities at HQ: 97Languages at HQ: 50Exec. Board nationalities: 11
22
30 March 2011 CAGE
Interchange of cultures, ideas & best practices
2600 Expatriates originate and are
received in97 different countries
23
North America
Latin America
Western Europe
Eastern Europe
Switzerland
Africa & Middle East
Asia
Oceania
154 104
315 113
389 367
778 704
123 34
352 155
404 13853 6
= In-patriates
= Ex-patriates
30 March 2011 CAGE
Principle led, action driven
24
30 March 2011 CAGE
Respect for Nestlé values will assure our longstanding success
Nestlé Management & Leadership Principles
High commitment to high-quality products and brands
Respect of other cultures and traditions
The Nestlé culture: strong work ethic, integrity, trust and mutual respect, tolerance, pragmatism, openness and curiosity, loyalty…
25
30 March 2011 CAGE
Long-termthinking
Short-termactionsand
People, culture, values and attitude
Devolvedaccountabilities
Shared valuesand
Aligned Entrepreneurialand
Society Shareholdersand
Delivering the Nestlé Model
year after year
Fast Flexibleand
26
30 March 2011 CAGE
Historical Commodity Prices since 1845 to 2010: Economist Industrial Index in US $ Nominal Terms.
A global challenge
Increased volatility in raw material prices
1,400
0
27
30 March 2011 CAGE
A truly holistic approach
Creating competitive gaps at all steps in the
value chainleading to competitive
advantagein the market place
Nestlé Continuous Excellence
28
30 March 2011 CAGE
Nestlé NCE gaining momentumNCE has reached just over
1/3 of our people...
340 out of 443 Factories have launched Goal Alignment
114 Factories have launchedFocused Improvement43 Markets trained inFocused Improvement
Roll-out continues across Finance, HR, Head Office functions, Sales, R&D…
...focused on NCE foundations
29
30 March 2011 CAGE
Creating value from farm to fork
Farmers trained 144,926Markets covered by SAIN +23%
Average working cap -110 bpsLost time injuries -10%Recordable injuries -18%
Freshness at shipment +70 bpsCustomer survey +3 placesBad goods -21%
Packaging weight reduction -17%Output per factory +5%Distribution costs -20 bpsCase fill rate +30 bpsStock cover (Raw) -14%Stock cover (Finished) -3%
30
SAIN = Sustainable Agriculture Initiative Nestlé.
30 March 2011 CAGE
Over the last 10 years:+73% more production volume
-61% less water-44% less energy-51% less CO2
(Percentages per tonne of product)31
30 March 2011 CAGE
10%DailyTasks
10%Fire
Fighting
60%Continuous Improvement
(Entrepreneurship & Creativity)
20%Strategy
10%Entrepre-neurship
&Creativity
50%Fire Fighting
40%Daily Tasks
Driving positive energy through the organisation
32
30 March 2011 CAGE
The Nestlé Roadmap: a unifying dimension281,000 people aligned
Its power – our differentiation from peers – is in our ability to deliver in all areas:
Leveraging our competitive advantages
Optimising our drivers for accelerated growth
Excelling in our operational pillarsEnabling consistentout-performance
33
30 March 2011 CAGE
Nestlé: a unique capability to winMarket share performance: all geographies & categories
Profitable growth in emerging & developed markets
Competitive gaps across the value chain
Rich pipeline of innovation with accelerating roll-outs
Consistent delivery of the Nestlé Model
Delivering shareholder returns in the short & long-term
34
30 March 2011 CAGE
Discussion
Nestlé:a unique capability to win