Nestle S.a. · SIX:NESN
Nestle — Investor Day (May 2016)
27 slides from Nestle's investor day presentation, May 24, 2016
Slide 1: Leading in Pet Care
Leading in Pet Care Patrice Bula EVP, Strategic Business Units, Marketing & Sales Bernard Meunier CEO, Nestlé Purina Pet Care Europe, Middle East & North Africa Fernando Merce President, Nestlé Purina Pet Care Latin America and Caribbean Nestlé Investor Seminar 24 – 25 May, 2016
Slide 2: Disclaimer
Disclaimer This 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.
Slide 3: The Global PetCare Category Expected to Grow at 5.2%
The Global PetCare Category Expected to Grow at 5.2% Latam 11.2% CHF 7.5 bn +11.8% EMENA 33.7% North America CHF 22.5 bn 43.0% +3.4% CHF 28.7 bn +3.7% AOA 12.1% CHF 8.0 bn +5.1% Total CHF 67 bn 3 Source: Euromonitor 2016 edition
Slide 4: PetCare Category Expected Growth 2015-20
PetCare Category Expected Growth 2015-20 5.6% 4.0% 11.0% 4.4% 86.1 66.7 2015 NA LATAM EMENA AOA 2020 4
Slide 5: Leading in Pet Care
Leading in Pet Care Bernard Meunier CEO, Nestlé Purina Pet Care Europe, Middle East & North Africa Nestlé Investor Seminar 24 – 25 May, 2016
Slide 6: The EMENA Market: Key Numbers
The EMENA Market: Key Numbers Market 14.7 bn in Grocery NPP EMENA Market Share +98bps 22.5 bn 7.8 bn in Specialist 22.5% vs. Last Year (Grocery only) 203m Cats & Dogs 113m 90m Cats 1.5% Dogs 0.6% Last 10 year Last 10 year CAGR CAGR Source: Nielsen 6
Slide 7: Calorific coverage is still a major growth opportunity
Calorific coverage is still a major growth opportunity Calorific Coverage % From 3% in Egypt to 93% in Belgium 90 77 79 58 31 France Germany UK Russia Italy 7
Slide 8: Accelerated growth and strong profit improvement
Accelerated growth and strong profit improvement RIG EVOLUTION 9.0 8.0 7.0 TOP 6.0 5.0 4.0 +480 bps 3.0 2.0 (last 10 years) 1.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 8
Slide 9: Operational savings reinvested in our brands and profit
Operational savings reinvested in our brands and profit Total Delivered Cost SG&A -30 -15 bps/yr bps/yr 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Marketing Spend TOP +30 +40 bps/yr bps/yr 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 9
Slide 10: European Share Growth: Leadership now a realistic goal
European Share Growth: Leadership now a realistic goal 44 Last period 40 36 Competitor 32 2070bps 30.4 28 430bps 24 26.7 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16 Total Cat & Dog Food incl Snacks - Europe Grocery: Value % share 10
Slide 11: 2015: NPP taking leadership in Western Europe
2015: NPP taking leadership in Western Europe 44 Last 40 period 36 32 2070bps Competitor -80bps 27.7 28 24 26.5 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16 Total Pet Food incl. Snacks - Western Europe Grocery: Value % share 11
Slide 12: Russia: critical for our European leadership ambition
Russia: critical for our European leadership ambition 90 80 Competitor Last period 70 65.9 60 50 7450bps 4640bps 40 30 20 26.9 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16 Total Cat & Dog Food incl. Snacks - Russia Grocery: Value % share 12
Slide 13: Portfolio transformation: Key Drivers
Portfolio transformation : Key Drivers Simplification & Portfolio 5 Power Brands Premiumization ~12000 26% 80+ % SKU Count 72% 3.1 Others Others 43% Sales/kg 24% 31% 5500 1.3 4% 2002 2015 Accelerate Defend Fix 2002 2015 13
Slide 14: FELIX has become our largest European brand
FELIX has become our largest European brand 24 1990 2010 22 Competitor 20 18 -890bps +380bps 16 14 12 10 2010 2011 2012 2013 2014 2015 WCSS Value MS Pre 2005 2010 2011 2013 / 2014 2015 Sources: Nielsen GTC, 28 markets, JJ’15 update & Nielsen IDB database 14
Slide 15: A FELIX campaign
A FELIX campaign 15
Slide 16: 24 May 2016 Nestlé Investor Seminar
16 24 May 2016 Nestlé Investor Seminar
Slide 17: Portfolio Transformation in Milestones
Portfolio Transformation in Milestones Today 2000 2001 2003 2008 2010 2012 2016 Focus on Exit of Snacks Accessories Roll Out Felix Clean up Spillers Move from Multi Portfolio Reduction in Eco Dry Serve to Single Exit of and Focus on SP Dry Serve Private Label & Grill Technology Growth Acceleration O
Slide 18: Innovations bringing strong incremental value
Innovations bringing strong incremental value Innovation-driven Incremental Sales in CHF m 18
Slide 19: Premiumising innovation accelerates value growth
Premiumising innovation accelerates value growth Gourmet – premiumisation within the brand Each innovation builds greater consumer value Purina ONE – moving consumers towards more premium offers Branded Activated Pet Appeal Recruitment 2.87/kg Benefit (high Palatability) Program 2015 350 m CHF 1.49/
Slide 20: Digital acceleration as a competitive advantage
Digital acceleration as a competitive advantage UK Market share Online vs Offline 39.0 37.0 35.0 620 bps 33.0 31.0 29.0 27.0 Competitor.com Competitor offline Purina.com Purina offline 20
Slide 21: Strong Innovation Pipeline Based on Health Benefit Platforms
Strong Innovation Pipeline Based on Health Benefit Platforms Challenge Insights Solutions Pets play strong role with Proprietary ingredient / Almost 50% of pets classified as elderly people with physical active brain protection aging (7yr+). Cognitive functions activity, socialization & blend for en
Slide 22: Our Natural Approach: 4 Pillars
Our Natural Approach: 4 Pillars Purina Brand Natural cues Natural Customized as a competitive in existing Brands natural foods advantage Portfolio 22
Slide 23: Building trust in Purina through our commitments
Building trust in Purina through our commitments We believe that when people and pets bond, life becomes richer. Our Environment Pet Pet Role Products & Society Wellbeing in Society Lead the industry Create job Promote pet Champion pets in in pet nutrition and health research for young people be
Slide 24: First BETTER WITH PETS Forum in Brussels
First BETTER WITH PETS Forum in Brussels 24
Slide 25: We are starting a movement on social networks
We are starting a movement on social networks #WEAREBETTERWITHPETS 25
Slide 26: 24 May 2016 Nestlé Investor Seminar
26 24 May 2016 Nestlé Investor Seminar
Slide 27: 4 Key Takeaways
4 Key Takeaways 20 YEARS OF SUCCESS 1 20 Years of profitable growth and continuous market share gains. NHW COMPANY 2 Purina is a strong contributor to the Nestlé NHW ambition and to the Group’s Premiumisation strategy. OUR AMBITION 3 is to be the most trusted name in Petcare, become a Market Leader