Nestle S.a. · SIX:NESN
Nestle — FY2011 Earnings Presentation
42 slides from Nestle's earnings presentation, Feb 16, 2012
Slide 1: Welcome to the Full-Year Results Press Conference
Welcome to the Full -Year Results Press Conference
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: Full-Year Results Press Conference: Paul Bulcke, CEO
Full -Year Results Press Conference Paul Bulcke Nestlé CEO
Slide 4: Jim Singh, Wan Ling Martello, Robin Tickle
Jim Singh Wan Ling Martello Robin Tickle 4 16 February 2012 Full -Year Results Press Conference
Slide 5: Executive Board
Executive Board Paul Bulcke Werner Bauer José Lopez John J. Harris Jim Singh Laurent Freixe Chris Johnson Patrice Bula Nandu Nandkishore Wan Ling Martello Marc Caira Jean-Marc Duvoisin Kurt Schmidt David Frick Luis Cantarell 16 February 2012 Full -Year Results Press Conference
Slide 6: Nestlé Group Highlights 2011
7.5 % Organic Growth 3.9 % Real Internal Growth Nestlé Group Increased Trading Operating Profit Highlights 2011 Growth in all regions and categories Positive 2012 outlook 6 16 February 2012 Full -Year Results Press Conference
Slide 7: Jim Singh, Chief Financial Officer
Full -Year Results Press Conference Jim Singh Chief Financial Officer 7 16 February 2012 Full -Year Results Press Conference
Slide 8: Introductory Remarks
Introductory Remarks 2011: strong performance in a volatile environment Growth driven by innovation & renovation, aligned with strategic growth drivers Our Billionaire Brands performed well: two-thirds held or gained share All regions delivered: emerging and developed We invested in our bran
Slide 9: 2011: Strong Full Year Performance
2011: Strong Full Year Performance At constant As reported exchange rates Sales 83.6 bn Organic Growth +7.5% Real Internal Growth +3.9% Trading Operating Profit 12.5 bn Trading Operating Profit Margin 15.0% +60 bps +90 bps (vs. 2010 continuing operations) Net Profit 9.5 bn +8.1% (vs. 2010 continuing
Slide 10: Translational Impact of Swiss Franc
Translational Impact of Swiss Franc Weighted Average Exchange Rates Currency Impact on Translation EBIT & CHF per FY 2010 FY 2011 (%) Trading Underlying Operating Balance Sales Operating EPS Cash Flow Sheet US Dollar (1) 1.05 0.89 -15.1 Profit -13.4% -30 bps -15% -1.6 bn -1.2 bn Euro (1) 1.38 1.23 -
Slide 11: Trading Operating Profit Margin Up 60 bps
Trading Operating Profit Margin Up 60 bps (+90 bps in constant currencies) Continuing operations TOP 15.0% +60 bps Efficiencies, TOP 14.4% +10 +70 growth leverage and price +80 -10 mitigate input costs -190 +100 0 Administrative costs benefit from growth leverage, efficiencies, pension restructuring
Slide 12: Regional Growth Continues
Regional Growth Continues Europe continues strong growth path Acceleration of growth in the Americas AOA maintains double-digit OG Sales* 26.2 37.4 20.0 CHF bn * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc and JVs % OG % RIG 12 16 February
Slide 13: Wide-spread Growth with All Clusters Contributing
Wide-spread Growth with All Clusters Contributing % OG Including Hsu Fu Chi and Yinlu Emerging Markets now 41% of sales 13 16 February 2012 Full -Year Results Press Conference
Slide 14: Billionaire Brands: +7.7% Organic Growth
Billionaire Brands: +7.7% Organic Growth Strengthened Market Positions Over 20% 10.1 to 20% 7.6 to 10% 5.1 to 7.5% 3.1 to 5% 0.0 to 3% Below 0% Organic Growth 14 16 February 2012 Full -Year Results Press Conference
Slide 15: Product Group Highlights
Product Group Highlights Powdered & Liquid beverages had a strong year - Nescafé a highlight Milk & Ice cream: double-digit growth in Dairy Ice cream positive despite worst July Prepared dishes & cooking aids mixed Maggi double-digit, US frozen prepared meals still subdued Confectionery grow
Slide 16: 2011: Summary
2011: Summary Delivered Nestlé Model in 2011 Good year with strong performance in most regions & businesses Well-positioned with reinforced capabilities to build strong platforms for future growth Our up-coming innovation, increased capacities and aligned organisation position us well Outl
Slide 17: Full-Year Results Press Conference: Paul Bulcke, CEO
Full -Year Results Press Conference Paul Bulcke Nestlé CEO
Slide 18: The New Reality: Challenges
The New Reality Challenges 18 16 February 2012 Full -Year Results Press Conference
Slide 19: The New Reality: Opportunities
The New Reality Opportunities 19 16 February 2012 Full -Year Results Press Conference
Slide 20: Competitive advantages – relevant more than ever
Competitive advantages – relevant more than ever 20 16 February 2012 Full -Year Results Press Conference
Slide 21: An unrivalled product portfolio
An unrivalled product portfolio… 21 16 February 2012 Full -Year Results Press Conference
Slide 22: Constantly innovated – The Nescafé example
Gold Blend relaunch in award winning jar NESCAFÉ 7x Dolce Gusto Enhanced crema espresso Green Blend 6x Coffee house style cappuccino … constantly 5x First espresso techonology New in jar aroma innovated – & extraction technology Volume 4x Gold Blend; 3-in-1 mixes Foaming cappuccino The Nescafé 3x Ca
Slide 23: Strong global brands
Strong global brands 23 16 February 2012 Full -Year Results Press Conference
Slide 24: Strong regional and local brands
Strong regional and local brands 24 16 February 2012 Full -Year Results Press Conference
Slide 25: Strong local brands
Strong local brands 25 16 February 2012 Full -Year Results Press Conference
Slide 26: Industry leading R&D capabilities
Industry leading R&D capabilities 26 16 February 2012 Full -Year Results Press Conference
Slide 27: Pro-active ownable innovation
In-house Proprietary Dedicated Fundamental High-Tech Engineering Research Development Capability Pro-active ownable innovation Nestlé Institute of Health Sciences 27 Product Deployment to 460 Nestlé Research Technology and factories Centre R&D Centres 27 16 February 2012 Full -Year Results Press Con
Slide 28: Pro-active ownable innovation
Protection Skin Health & Beauty Fit at all Comfortable Growth & Weight ages and refreshed Development Management Pro-active ownable Performance Digestive Comfort Healthy Balanced and well and happy innovation Healthy Healthy Ageing Recovery Alert and Confident energetic and relaxed Science Consumer
Slide 29: Systems for value creation
Systems for value creation 29 16 February 2012 Full -Year Results Press Conference
Slide 30: Nescafé Dolce Gusto – A success story
Nescafé Dolce Gusto – A success story 30 16 February 2012 Full -Year Results Press Conference
Slide 31: Science in Nestlé breaks new ground
Science-based nutritional solutions to deliver improved personalised healthcare for medical conditions Science in Nestlé breaks new ground to lay the foundation for our future 31 16 February 2012 Full -Year Results Press Conference
Slide 32: Close to the consumer, worldwide, since many decades
Close to the consumer, worldwide, since many decades 32 16 February 2012 Full -Year Results Press Conference
Slide 33: The strength of localness in today's world
The strength of localness in today’s world R&D sites and Factories illustrative 33 16 February 2012 Full -Year Results Press Conference
Slide 34: Investing in our future capabilities
Investing in our future capabilities 34 16 February 2012 Full -Year Results Press Conference
Slide 35: Engaging with Chinese consumers
Engaging with Chinese consumers 35 16 February 2012 Full -Year Results Press Conference
Slide 36: Strong values and principles – the basis for long-term success
Strong values and principles – the basis for long-term success 36 16 February 2012 Full -Year Results Press Conference
Slide 37: Creating Shared Value
Nutrition Water Rural Development Creating Shared Value Creating Shared Value Creating Shared Value for shareholders and society Nutrition | Water | Rural Development Sustainability Preserving the environment for future generations Protect the future Compliance Complying with the highest standards L
Slide 38: Nestlé Continuous Excellence
Nestlé Continuous Excellence 38 16 February 2012 Full -Year Results Press Conference
Slide 39: Responsible use of resources
From 2001 to 2011 per tonne of manufactured product Water consumption – 58% Responsible Waste water generation – 64% use of Energy consumption – 42% resources Greenhouse gases – 52% From 1991 to 2011 Packaging material – 557’000 tonnes 39 16 February 2012 Full -Year Results Press Conference
Slide 40: Nestlé: well positioned to seize the opportunities
Nestlé: well positioned to seize the opportunities 40 16 February 2012 Full -Year Results Press Conference
Slide 41: 16 February 2012 Full-Year Results Press Conference
41 16 February 2012 Full -Year Results Press Conference
Slide 42: Questions and Answers
Full -Year Results Press Conference Questions and Answers 42 16 February 2012 Full -Year Results Press Conference