Nestle S.a. · SIX:NESN

Nestle — Investor Presentation (September 2016)

37 slides from Nestle's investor presentation, September 2016

  1. Slide 1: Zone AOA Reigniting Growth

    Zone AOA Reigniting Growth Wan Ling Martello EVP, Asia, Oceania, sub-Saharan Africa

  2. Slide 2: Zone AOA: diverse and complex

    Zone AOA: diverse and complex  68% of world’s population  80% of global births  33% of World’s GDP  92 countries  3 continents  15 time zones  All major religions 2

  3. Slide 3: Long term trends positive for Nestlé

    Long term trends positive for Nestlé 1 Accelerated Urbanization 2 Growing middle class 3 Fast Digitalization 4 Nutritional Challenges 5 Evolving Consumers 3

  4. Slide 4: Urbanization: 14 out of 20 largest megacities in AOA

    1 Urbanization: 14 out of 20 largest megacities in AOA World’s Top 20 megacities (2015) Tokyo 37.8 Jakarta 30.5 Delhi 25.0 Metro Manila 24.1 Seoul 23.5 Shanghai 23.4 Karachi 22.1 Beijing 21.0 New York City 20.6 Guangzhou 20.6 Sao Paulo 20.4 Mexico 20.0 Mumbai 17.7 Osalka-Kobe 17.4 Moscow 16.2 Dhaka

  5. Slide 5: Growing Middle Class: Ample room for growth

    2 Growing Middle Class: Ample room for growth …Material share ~2/3 of the world’s population… …and low penetration of FUTURE growth… Confectionery consumption ~7.3 ~12,928 CAGR Per capita (USD, 2014) 100% 100% Other (15-20F) Developed 500 Other United Kingdom 80 Other 80 Developed 4% Denmark Emergin

  6. Slide 6: Digitalization: AOA has become the global center of gravity

    3 Digitalization: AOA has become the global center of gravity Own estimate based on multiple sources 6

  7. Slide 7: Over 100 Years of presence in many countries

    Over 100 Years of presence in many countries 7

  8. Slide 8: Highest trust scores in most markets

    Highest trust scores in most markets Nestlé Highest scoring competitor Philippines 264 152 China 247 218 Malaysia 239 148 Pakistan 237 143 South Africa 209 168 Singapore 204 142 Indonesia 174 155 Thailand 172 133 India 142 238 Australia 119 133 Japan 84 128 Corporate Equity Monitor, 2015 8

  9. Slide 9: Our brands are part of consumers lives everyday

    Our brands are part of consumers lives everyday 9

  10. Slide 10: Nestlé in AOA: Broad-based portfolio

    Nestlé in AOA: Broad-based portfolio Petcare S.S. Africa Confectionery Split of Sales Dairy Zone AOA Sales Greater China Culinary Oceania & CHF 14.2 Bn Japan Geographies & (CHF 22.2 Bn NiM) South Asia Categories Beverage Pakistan ASEAN 10

  11. Slide 11: Zone AOA: Highly accretive to Group on most dimensions

    Zone AOA: Highly accretive to Group on most dimensions Group 2015 AOA OG 4.2% TOP% 15.1% FCF 11.2% WC% 4.7% ROIC 29.9% 11

  12. Slide 12: Top line growth under pressure in recent years

    Top line growth under pressure in recent years Organic Growth 2009-2015 • Economy slowing down • Commodity deflation dilutes pricing ability • Market slowdown exposed some internal gaps Source: Nestlé F&C Excluding India 12

  13. Slide 13: However, growth momentum across the Zone

    However, growth momentum across the Zone OG Q1 +10% 0% -10% (*) Indicates other smaller countries under the same Market responsibility scope. 13

  14. Slide 14: Market Shares also recovering

    Market Shares also recovering Zone AOA Market Share Tracking (growth gap vs. Market) Total Excluding Noodles Total of Zone 14

  15. Slide 15: AOA Execution Plan: Building Blocks to Reignite Growth

    AOA Execution Plan: Building Blocks to Reignite Growth WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovatio

  16. Slide 16: AOA Execution Plan: Building Blocks to Reignite Growth

    AOA Execution Plan: Building Blocks to Reignite Growth WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovatio

  17. Slide 17: AOA Execution Plan: Building Blocks to Reignite Growth

    AOA Execution Plan: Building Blocks to Reignite Growth WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovatio

  18. Slide 18: Accelerators: Strengthening the basics across AOA

    Accelerators: Strengthening the basics across AOA WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovation Hub

  19. Slide 19: Nescafé in ASEAN: Locally led Innovation

    Consumer Insights Excellence Nescafé in ASEAN: Locally led Innovation Malaysia Philippines Thailand 19

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    20

  21. Slide 21: Nescafé in ASEAN: Locally led Innovation

    Consumer Insights Excellence Nescafé in ASEAN: Locally led Innovation Malaysia Philippines Thailand 21

  22. Slide 22: Nescafé in ASEAN: Centrally led Innovation

    Consumer Insights Excellence Nescafé in ASEAN: Centrally led Innovation  Consumers prefer ‘Café Style Coffee’  May’16 Launch Thailand & Philippines PH : 65% of consumer preference vs competition TH : 80% of consumer preference vs competition 22

  23. Slide 23: Milo Champions Program: Driving consumer engagement

    Consumer Insights Excellence Milo Champions Program: Driving consumer engagement to the next level, while reinforcing the brand’s positioning  Launch of a connected sports bracelet  Australia launched. ASEAN markets to follow  One brand platform, multi-countries content building and sharing 23

  24. Slide 24: Kit Kat: Premiumization with new consumer engagement

    Consumer Insights Excellence Kit Kat: Premiumization with new consumer engagement JAPAN: KIT KAT Chocolatory AUSTRALIA: KIT KAT STUDiO  Consumer excitement  Premiumization  Ultimate brand experience 24

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    25

  26. Slide 26: Increased focus on Lunch Box consumption occasions in ASEAN

    Consumer Insights Excellence Increased focus on Lunch Box consumption occasions in ASEAN Increase in marketing support, category adjacency & distribution points +35% Growth in Q1 26

  27. Slide 27: Making nutritional products affordable and accessible to lower income consumers

    Consumer Insights Excellence Making nutritional products affordable and accessible to lower income consumers NESTUM in ANGOLA • Leveraging strong nutritional credentials to develop a local recipe, highly affordable that consumers love. • Dedicated RTM to reach the target 27

  28. Slide 28: Perfect Brand, Perfect Assortment, Perfect Store

    Perfect Brand, Perfect Assortment, Perfect Store MAKE CHOICES RIGOROUS PLANNING FOR IMPROVED EXECUTION REPEAT PRIORITIZE CELLS & STEP 1: STEP 2: STEP 3: ROLL-OUT & REPEAT CATEGORIES BRAND ASSORTMENT STORE Prioritize cells and Define brand and Maximize Optimize shelf and Drive learning cross- categor

  29. Slide 29: Making choices by focusing on HERO SKUs to deliver accelerated growth

    Perfect Brand, Perfect Assortment, Perfect Store Making choices by focusing on HERO SKUs to deliver accelerated growth Indonesia:  Accelerating MILO (key SKUs)  Discontinue 14g, 150g & 600g  +12% Growth in Q1’16 18g 800g 29

  30. Slide 30: Winning in differentiated trade channels

    Route to Market: Expansion of Distribution Winning in differentiated trade channels Winning in Convenience Channel Winning in Specialty Channel Thailand: +24% growth in Q1’16 Indonesia: +49% growth in Q1’16 30

  31. Slide 31: Myowbu expanding beyond Africa: Creating Shared Value while driving growth

    Route to Market: Expansion of Distribution Myowbu expanding beyond Africa: Creating Shared Value while driving growth • Fostering entrepreneurship • Enabling distribution to lower income consumers • Over 1500 Operators in Sub Saharan Africa • Roll out to Bangladesh 31

  32. Slide 32: Accelerators: Strengthening the basics across AOA

    Accelerators: Strengthening the basics across AOA WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovation Hub

  33. Slide 33: Geographic Building Blocks

    Geographic Building Blocks WIN WITH CONSUMERS AND SHOPPERS – DRIVE GROWTH AND MARKET SHARE Accelerate Fix Innovate 5 4 2 1 3 Sub Saharan Africa ASEAN China India Australia & Japan Improve Nescafé, Get Back to Growth Relaunch MAGGI Noodles Accelerate Maggi and MILO Lead as Innovation Hub Accelerate M

  34. Slide 34: Zone AOA Reigniting Growth

    Zone AOA Reigniting Growth Wan Ling Martello

  35. Slide 35: When have times not been turbulent?

    When have times not been turbulent? 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s 2010s 1930s 1945-early 1970s 1961 1981 1995 2011 Great Post War boom First Man in 1970s IBM Oklahoma City Japanese Depression Space Stagflation launches PC bombing earthquake 1939-1943 1953 1962 1972 1991 2001- 2010

  36. Slide 36: SUMMARY: AOA

    SUMMARY: AOA 1 BULLISH ON AOA GROWTH OPPORTUNITIES 2 MOST BUSINESSES HAVE TURNED AROUND 3 WILL LEAD THE GROUP IN DIGITAL AOA WILL EMERGE STRONGER WITH ENHANCED CAPABILITIES 108

  37. Slide 37: THANK YOU

    - THANK YOU BO SEX Nestle

Nestlé — Investor Presentation (September 2016) on 6ix