Nestle S.a. · SIX:NESN
Nestle — CAGE 2011
36 slides from Nestle's conference presentation, Mar 30, 2011
Slide 1: Nestlé: a unique capability to win
Nestlé: a unique capability to win CAGE 2011 30 March 2011 CAGE
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: Nestlé: a unique capability to win - Paul Bulcke, CEO
Nestlé: a unique capability to win Paul Bulcke CEO 30 March 2011 CAGE
Slide 4: The Nestlé Roadmap: an aligning dimension
The Nestlé Roadmap: an aligning dimension... Competitive Advantages ...more relevant than ever before Operational Growth Pillars Drivers 3 30 March 2011 CAGE
Slide 5: Leveraging our competitive advantages for today's environment
Leveraging our competitive advantages for today’s environment... 4 30 March 2011 CAGE
Slide 6: Unmatched product and brand portfolio
Unmatched product and brand portfolio 5 30 March 2011 CAGE
Slide 7: Unmatched product and brand portfolio - China
Unmatched product and brand portfolio - China AMBIENT DAIRY COFFEE BEVERAGES CULINARY CONFECTIONERY ICE CREAM Share of Urban & CEREALS Income 2005 to 2015 Global Affluent >200 ~7% Mass Affluent 100 - 200 3% Î 17% Chinese Urban Household Annual Income Upper Middle (‘000 RMB) Class 24% Î 28% 40 - 100
Slide 8: Nutrition, Health and Wellness
Nutrition, Health and Wellness Pleasure Balance Nestlé’s portfolio is positioned to drive Consumer preference (60/40+) growth and value ∼ 70% win rate in all categories as 43% of F&B portfolio the Nutrition, Health tested over last 3 years and Wellness leader Understanding 7 30 March 2011 CAGE
Slide 9: Consumer communication
Consumer communication Over 6,500 products renovated Additional nutritional arguments for nutrition or health & product differentiation considerations in 2010 e.g. fortified servings Driving competitive 94 billion of culinary products differentiation & 43 billion of ambient dairy products enhanced v
Slide 10: Nestlé innovation model
Nestlé innovation model Consumer/Shopper Insights What is needed by consumers? Scientific/Technological Creating shared value Capacity Can we create value for Innovation What is scientifically the society and Nestlé? Sweet-spot feasible and technologically possible? Commercial Capability Do we have
Slide 11: Strategic positioning in R&D
Strategic positioning in R&D Food Food Food Disease Health Supply Security Pleasure Prevention Science Health and Annual Aroma Well-being Treatment Survival/Hunger secured food & Taste and disease nutrient supply Variety Avoidance of management deficiencies Agriculture/Biotechnology Preservation Tec
Slide 12: Nestlé's global R&D footprint
Nestlé’s global R&D footprint Driving research globally, enhancing performance locally 2 Science Centres (Lausanne) 27 PTC and R&D Centres ILLUSTRATIVE 320 Application 320Groups (significant Application GroupsEM presence) 11 30 March 2011 CAGE
Slide 13: Nestlé's global R&D footprint
Nestlé’s global R&D footprint Health Nutrition Culinary Nutrition Dairy Beverages Culinary Confec- Professional Professional Science/ Meals Dairy Chilled Cereals Waters Frozen/ Ice Cream Petcare Infant Ambient Nespresso Ambient tionery Beverage Food HCN & Drinks Chilled Institute Science & of Health
Slide 14: Nestlé's '5 generation I&R Pipeline'
Nestlé’s ‘5 generation I&R Pipeline’ Vision Today Value & EBIT – year 3 Generation 5 Incremental NPS Year 3 (CHF mio.) Champion Satellite Generation 4 Lucy Himalaya Lemon Pole Position Advanced Scoop Generation 3 Galaxy Everest Model T Express Pickwick Impact* MOM & Me Heidi Generation 2 Happy Days
Slide 15: Consumer value from Nestlé's I&R Pipeline
Consumer value from Nestlé’s I&R Pipeline Personalised 33% of sales from products introduced or renovated in the last 3 years Dematerialisation 14 30 March 2011 CAGE
Slide 16: Unmatched geographic presence
Unmatched geographic presence 1867 15 30 March 2011 CAGE
Slide 17: Unmatched geographic presence
Unmatched geographic presence 1872 1871 1867 1874 1868 1875 1899 1899 Historical 1899 1899 1899 presence 1899 1899 1874 (first sales of 1912 1875 1899 1873 infant formula) 1899 1870 ILLUSTRATIVE 16 30 March 2011 CAGE
Slide 18: Unmatched geographic presence
Unmatched geographic presence Historical presence R&D sites ILLUSTRATIVE 17 30 March 2011 CAGE
Slide 19: Unmatched geographic presence
Unmatched geographic presence 150 91 13 5 19 Historical 9 6 presence 10 R&D sites 77 6 Factories 13 9 ILLUSTRATIVE 18 30 March 2011 CAGE
Slide 20: Unmatched geographic presence
Unmatched geographic presence 150 91 13 5 19 Historical 9 6 presence 10 R&D sites 77 6 Factories Operations 13 9 ILLUSTRATIVE 19 30 March 2011 CAGE
Slide 21: Emerging markets Capital Expenditure
Emerging markets Capital Expenditure CHF billion 150 91 13 5 19 9 6 10 6 77 13 9 20 30 March 2011 CAGE
Slide 22: Unmatched geographic presence
Unmatched geographic presence Russia Switzerland Brands ‘owned’ by 119 185 consumers locally: China Mexico UAE 173 Creates deep roots 258 268 India Philippines 118 and an unmatched Brazil Malaysia 240 base for 228 213 profitable growth South Africa 154 % Nestlé trust score indexed to the category 21
Slide 23: People, culture, values and attitude
People, culture, values and attitude Europe Total Employees: 281,000 32.4% Nationalities: 150 AMS 40.3% Nationalities at HQ: 97 AOA 27.3% Languages at HQ: 50 Exec. Board nationalities: 11 22 30 March 2011 CAGE
Slide 24: Interchange of cultures, ideas & best practices
Interchange of cultures, ideas & best practices Western Eastern North Europe America Europe 123 34 154 104 389 367 Asia 2600 Expatriates 352 155 originate and are 778 704 received in Switzerland 97 different countries Oceania 53 6 404 138 315 113 Africa & Latin Middle East = In-patriates America = E
Slide 25: Principle led, action driven
Principle led, action driven 24 30 March 2011 CAGE
Slide 26: Nestlé Management & Leadership Principles
Nestlé Management & Leadership Principles Respect for Nestlé values will assure our longstanding success 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, ope
Slide 27: People, culture, values and attitude
People, culture, values and attitude Long-term Short-term thinking and actions Fast and Flexible Delivering the Nestlé Model Aligned and Entrepreneurial year after year Devolved accountabilities and Shared values Society and Shareholders 26 30 March 2011 CAGE
Slide 28: A global challenge
A global challenge 1,400 Increased volatility in raw material prices 0 Historical Commodity Prices since 1845 to 2010: Economist Industrial Index in US $ Nominal Terms. 27 30 March 2011 CAGE
Slide 29: A truly holistic approach
A truly holistic approach Nestlé Continuous Excellence Creating competitive gaps at all steps in the value chain leading to competitive advantage in the market place 28 30 March 2011 CAGE
Slide 30: Nestlé NCE gaining momentum
Nestlé NCE gaining momentum NCE has reached just over 1/3 of our people... 340 out of 443 Factories have launched Goal Alignment 114 Factories have launched Focused Improvement 43 Markets trained in ...focused on NCE foundations Focused Improvement Roll-out continues across Finance, HR, Head Office
Slide 31: Creating value from farm to fork
Creating value from farm to fork Average working cap -110 bps Lost time injuries -10% Recordable injuries -18% Packaging weight reduction -17% Output per factory +5% Freshness at shipment +70 bps Farmers trained 144,926 Distribution costs -20 bps Customer survey +3 places Markets covered by SAIN +23
Slide 32: Over the last 10 years: production up, water, energy and CO2 down
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
Slide 33: Driving positive energy through the organisation
Driving positive energy through the organisation 10% 10% 60% 20% Daily Fire Continuous Improvement Strategy Tasks Fighting (Entrepreneurship & Creativity) 10% 40% 50% Entrepre- neurship Daily Tasks Fire Fighting & Creativity 32 30 March 2011 CAGE
Slide 34: The Nestlé Roadmap: a unifying dimension
The Nestlé Roadmap: a unifying dimension 281,000 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 Enabling consistent Excelling in our operational pillars out
Slide 35: Nestlé: a unique capability to win
Nestlé: a unique capability to win Market 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 r
Slide 36: Nestlé: a unique capability to win - Discussion
Nestlé: a unique capability to win Discussion 30 March 2011 CAGE