Nestle S.a. · SIX:NESN
Nestle — Q1 2011 Earnings Presentation
18 slides from Nestle's earnings presentation, Apr 15, 2011
Slide 1: 2011 First Quarter Sales
2011 First Quarter Sales Roddy Child-Villiers Head of Investor Relations
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: 2010 momentum continues in Q1 2011
2010 momentum continues in Q1 2011 Real internal growth of 4.9% Broad-based by geography and category Organic growth of 6.4% Raw material impact reconfirmed unchanged Guidance unchanged 2 15 April 2011 2011 First Quarter Sales
Slide 4: Q1 Sales Development
Q1 Sales Development CHF 20,261 million RIG +4.9% +6.4% Pricing +1.5% OG Acq./Div. -5.9% Exchange Rates -9.8% OG = Organic Growth RIG = Real Internal Growth 3 15 April 2011 2011 First Quarter Sales
Slide 5: Growth across all geographies
Growth across all geographies Broad-based – growth in all three regions AOA: double digit RIG & OG OG % RIG % 13.8% 11.0% Emerging markets grow about 12% Globally managed business accretive to Zone growth in each region 3.9% 4.3% 3.4% 2.6% Europe Americas AOA Sales* (CHF bn) 6.2 8.9 5.1 * ea
Slide 6: Positive RIG for all operating segments
Positive RIG for all operating segments OG % RIG % 11.8% 10.8% 10.0% 9.1% 8.9% 7.3% 5.0% 4.4% 3.7% 2.3% 1.9% 1.2% Zone Europe Zone Americas Zone AOA Nestlé Waters Nestle Other* Sales 3.7 6.4 3.8 1.5 Nutrition 3.0 (CHF bn) 1.9 * Includes Nestlé Health Science, Nestlé Professional, Nespresso and JVs 5
Slide 7: Zone Europe: 2.3% organic growth
Zone Europe: 2.3% organic growth Good start to the year, despite tough RIG comparative – market share gains Good performance generally in WE, but UK impacted by Easter timing Eastern Europe accretive 2.3% to growth 1.9% OG Strongest categories: RIG PetCare, Soluble Coffee, Frozen & Chilled f
Slide 8: Zone Americas: 3.7% organic growth
Zone Americas: 3.7% organic growth Strong start in Latin America; North more subdued – but market share gains NA: Improving trends in Frozen; PetCare to accelerate; good performance in Soluble coffee 3.7% LA: double digit in most regions; Brazil positive despite Easter timing OG RIG Good per
Slide 9: Zone AOA: 11.8% organic growth
Zone AOA: 11.8% organic growth Emerging markets delivering strong growth, including China, India, Africa, the Middle East Strong start to the year in Japan; Australasia slower Strongest categories: 11.8% Ambient dairy, Soluble coffee, 9.1% Culinary, RTD beverages OG RIG Sales CHF 3.8bn 8 15 Ap
Slide 10: Nestlé Nutrition: 8.9% organic growth
Nestlé Nutrition: 8.9% organic growth Infant Nutrition delivered double-digit organic growth AOA: particularly strong performance NA: good progress in all areas Europe: France & Russia performing well, Germany slower 8.9% Jenny Craig slow in the US 7.3% European launch going well OG RIG Perf
Slide 11: Nestlé Waters: 4.4% organic growth
Nestlé Waters: 4.4% organic growth Double digit growth in emerging markets Good growth in Europe &North America Market share gains in all key markets Nestlé Pure Life, S. Pellegrino, 5.0% Perrier and many of the regional 4.4% brands performed well OG RIG Sales CHF 1.5bn 10 15 April 2011 2011
Slide 12: Other: 10.8% organic growth
Other: 10.8% organic growth All constituents performed well Nestlé Professional grew double digit in emerging markets (35% of its sales) & was accretive to the retail business overall 10.8% Nespresso grew around 20% 10.0% OG Nestlé Health Science grew RIG double digit JVs performing well S
Slide 13: Product segments
Product segments 12.5% OG % RIG % 9.5% 9.0% 8.0% 7.6% 5.0% 4.4% 4.4% 3.7% 3.9% 1.6% 1.3% 0.9% 0.2% Powdered & Water Milk Products Nutrition & Prepared PetCare Confectionery Liquid & Ice Cream HealthCare* Dishes & Beverages Cooking Aids Sales 4.4 1.5 3.8 2.4 3.5 2.4 2.2 (CHF bn) * Constituents: Nestl
Slide 14: Conclusion
Conclusion Input costs pressures within our range (CHF2.5bn-CHF3bn) Reported pricing to tick up during the year Good momentum in the business: top line & efficiencies FY 2011 outlook re-confirmed 13 15 April 2011 2011 First Quarter Sales
Slide 15: 15 April 2011 2011 First Quarter Sales
14 15 April 2011 2011 First Quarter Sales
Slide 16: Weighted average exchange rates
Weighted average exchange rates CHF per Q1 2010 Q1 2011 (%) U.S. Dollar (1) 1.06 0.94 - 11.2 Euro (1) 1.46 1.29 - 12.0 £ Sterling (1) 1.65 1.51 - 8.5 Real (100) 58.88 56.22 - 4.5 Mex. Peso (100) 8.28 7.81 - 5.7 Yen (100) 1.17 1.14 - 2.3 15 15 April 2011 2011 First Quarter Sales
Slide 17: Operating Segment FX Impact On Sales
Operating Segment FX Impact On Sales (%) 1Q11 HY11 9M11 FY11 Zone Europe -10.8 Zone Americas -9.4 Zone AOA -8.1 Nestlé Waters -11.5 Nestlé Nutrition -10.5 Other -9.9 Total -9.8 16 15 April 2011 2011 First Quarter Sales
Slide 18: 2011 First Quarter Sales
2011 First Quarter Sales Roddy Child-Villiers Head of Investor Relations