Nestle India Ltd. · NSE:NESTLEIND
Nestle India — Investor Day (October 2021)
121 slides from Nestle India's investor day presentation, Oct 29, 2021
Slide 1: Nestlé India Financial Analyst and Institutional Investor Meet
Nestlé India Financial Analyst and Institutional Investor Meet 29 t h O c t o b e r 20 21
Slide 2: Disclaimers
Disclaimers • This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which holds only as of the date. • The future involve
Slide 3: Agenda
Agenda 15:30 – 16:25 16:25 – 16:55 16:55 – 17:15 17:15 – 17:40 17:40 – 18:30 Business as a Robust Navaratna in Supply Chain Q&A Force For Good Fundamentals Gujarat Resilience by Suresh Leveraging by Matthias by Ashish Efficiencies Narayanan Lohner Pande by David McDaniel Nestlé India Financial Analy
Slide 4: Business As a Force For Good
Business As a Force For Good By Suresh Narayanan Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 5: Key Takeaways Last Time
St ro n g Co s t a n d Effic ie n c y Ma n a g e m e n t Key Takeaways Last Time P e n e t ra t io n Le d Gro w t h In ve s t in g a n d In n o va t in g Co m p e t it ive a d va n t a g e t h ro u g h R&D e xp e rt is e Bra n d Sa lie n c e Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t i
Slide 6: Rededicating the Progress of a Resilient Organization
Rededicating the Progress of a Resilient Organization Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 7: A Long Association With India
A Long Association With India 1912 1959 1961 1969 1990 2012 2021 Began trading Incorporated First Listed on Incorporated 100 years 9th Factory as The Nestlé as Food production Bombay stock as Nestlé India of Nestlé in commences Anglo-Swiss Specialities facility at Exchange Limited India production C
Slide 8: Committed to Make in India
Committed to Make in India Mo g a (19 6 1) Na n ja n g u d (19 8 9 ) P o n d a (19 9 5) P a n t n a g a r (20 0 6 ) Ch o la d i (19 6 7) Sa m a lk h a (19 9 2) Bic h o lim (19 9 7) Ta h liw a l (20 12) Instant Tea largely for exports Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io
Slide 9: Our Commitment to 'Make in India' Continues
Our Commitment to ‘Make in India’ Continues Our 9th factory in India at Sanand, Gujarat State of the Art factory- reinforcing our sustainability journey Digitally the most advanced factory Over 60% women workforce at the factory Part of INR 26 Billion investment planned in India over next few years
Slide 10: A Range of Products Loved by Consumers
A Range of Products Loved by Consumers Milk P ro d u c t s P re p a re d d is h e s P o w d e re d a n d Co n fe c t io n e ry a n d Nu t rit io n & c o o k in g a id s liq u id b e ve ra g e s Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c
Slide 11: One of the Largest Listed Pure Play F&B Company in India
One of the Largest Listed Pure Play F&B Company in India 109 Years 7,700+ 150,000+ MAGGI, NESCAFÉ, KITKAT and of Providing Safe, EVERYDAY Quality Nutrition Employees Indian Shareholders in India Few Iconic Brands INR 132 INR 35.3 INR 1773 INR 26 Billion + Billion Billion Billion Contribution to Mark
Slide 12: India – Amongst The Fastest Growing in the Nestlé World
India – Amongst The Fastest Growing in the Nestlé World in Last Three Years Nestlé Sales Growth 2018 4.60% 5.20% 0.90% 10.90% 6.90% 2019 3.00% 1.50% -1.00% 10.60% 8.00% 2020 -4.40% -8.50% -8.00% 7.20% 8.60% India Growth represents sales growth from all Nestlé brands sold in India Year 2020 growth re
Slide 13: Volume & Mix Led Growth
Volume & Mix Led Growth 600 600 12.5 8.4 11.6 9.6 9.1 13.0 8.9 25.0 25.0 5.7 500 500 (25.0) (25.0) 400 400 CAGR 300 2016-20 300 (75.0) (75.0) 200 9.3% 200 (125.0) (125.0) 100 100 343 382 424 457 468 128 129 136 - (175.0) - (175.0) 2016 2017 2018 # 2019 2020 Q1-21 Q2-21 Q3-21 Domestic Vol ('000 Tons)
Slide 14: Leading to Sustained Domestic Value Growth
Leading to Sustained Domestic Value Growth 16.9 13.7 8.2 10.9 10.9 8.5 10.2 10.1 130 130 5.0 5.0 110 110 (25.0) (25.0) 90 (55.0) CAGR 90 (55.0) 2016-20 70 70 (85.0) (85.0) 50 (115.0) 11.0% 50 (115.0) 30 30 (145.0) (145.0) 88 95 105 117 126 34 33 37 10 (175.0) 10 (175.0) 2016 2017 2018 # 2019 2020 Q1
Slide 15: Accelerated Profit from Operations
Accelerated Profit from Operations 24.0 23.3 24.0 52 21.7 52 22.2 22.3 21.0 21.1 22.0 22.0 42 42 20.0 20.0 18.1 CAGR 17.6 2016-20 18.0 18.0 32 32 16.0 16.0 16.6% 22 22 14.0 14.0 12 12 12.0 12.0 17 18 24 26 29 8 8 9 2 10.0 2 10.0 # 2016 2017 2018 2019 2020 Q1-21 Q2-21 Q3-21 Profit from Operations (IN
Slide 16: And Accelerated Net Profit
And Accelerated Net Profit 40 25.0 40 25.0 35 35 20.0 20.0 30 30 15.7 16.7 16.0 15.6 16.0 25 14.3 25 CAGR 15.0 15.0 12.1 2016-20 10.6 20 20 10.0 10.0 29.9% 15 15 10 10 5.0 5.0 5 5 10 12 16 20 21 6 5 6 - - - - # 2016 2017 2018 2019 2020 Q1-21 Q2-21 Q3-21 Net Profit (INR Bio) % of Net Sales Net Profit
Slide 17: Extremely Strong Capital Efficiency
Extremely Strong Capital Efficiency Return on Invested Capital (ROIC) 70 150 60 103.5 69.5 100 44.9 50 31.4 36.2 50 40 CAGR 30 0 2016-20 -50 39.2% 20 -100 10 31.8 33.9 35.8 28.3 20.1 - -150 2016 2017 2018 2019 2020 Invested Capital (INR Bio) ROIC % # Invested capital: Average Equity + Long Term Borr
Slide 18: Creating Significant Value for Investors Over Time
Creating Significant Value for Investors Over Time Market Capitalization Up 36.2 times vs. INR Total Shareholders Return 3,597% FMCG Benchmark 1,802 Bn Index 15.1 times Annualized Return 19.8% INR 50 Bn 2001 2021* USD 1.1 Bn USD 24.0 Bn (1 USD= INR 47.2) (1 USD= INR 75.2) *As on 25th October 2021 IN
Slide 19: A Strong Thrust on Innovation
A Strong Thrust on Innovation 7,000 6.0 5.0 4.4 5.0 4.3 Over 90 6,000 4.0 3.4 new 5,000 2.7 3.0 products 4,000 1.5 2.0 in 5 3,000 1.0 years 2,000 - 1,000 (1.0) - (2.0) 2016 2017 2018 2019 2020 YTD Sep 21 New Product Sales % Contribution to Domestic Sales Approx. 10 New Innovation Projects in Pipelin
Slide 20: Consistent Media Support to Our Brands
Consistent Media Support to Our Brands 9 Healthy mix between investing Improved 8 7 behind core Efficiencies in brands and new buying media 6 product launches 5 4 Targeted communication by 3 leveraging consumer clusters 2 1 1.0x 0.9x 1.3x 1.4x 1.3x Investing in brand Enhanced digital - 2016 2017 201
Slide 21: Rapidly Accelerating our Footprint – New Channels
Rapidly Accelerating our Footprint – New Channels GROWING CONTRIBUTION OF E- COMMERCE TO DOMESTIC SALES 2016 2017 2018 2019 2020 YTD Sep 21 5.1 E-Commerce grew by 3.7 1.9 YTD Sep 21 2020 65% 1.3 2019 0.9 2018 2017 0.6 2016 Contribution Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t
Slide 22: Significant Acceleration of Our Route to Market
Significant Acceleration of Our Route to Market – Overall Reach Strengthening Our Distribution Muscle Indirect Nestlé Direct Reach Total Reach (Nielsen) 3.6 2021 1.4 5.0 3.3 2020 1.4 4.7 3.3 2019 1.3 4.6 3.2 2018 1.3 4.5 2.9 2017 1.3 # 4.2 2.7 2016 1.3 4.0 Ne s t lé In d ia Fin a n c ia l An a lys t
Slide 23: RURBAN Is Growing
RURBAN Is Growing RURBAN IN LAST 4 YEARS GROWTH% YTD 16.1 Sep'21 2020 12.5 2019 11.9 2018 10.6 *Before 2019, we did not have Rurban classification, therefore 2018 growth is for Town Class C and D (population below 1 lac) Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve
Slide 24: A Journey to further Accelerate Growth in RURBAN
A Journey to further Accelerate Growth in RURBAN Customized Building Localized Outstanding Building Consumer Portfolio Infrastructure Communication Visibility Connect Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 25: Grasping the Rural Opportunities
Grasping the Rural Opportunities Enhancing Rural Reach Villages Covered Wholesale HUB Small Distributors YTD 99,833 3,243 Sep'21 7,508 74,043 2020 3,303 7,188 89,288 2019 2,780 Ambition 7,012 # 51,584 120,000 2018 1,818 Villages by 6,657 2024 Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t
Slide 26: Navigating Commodity Headwinds
Navigating Commodity Headwinds Milk SMP Edible Oils 166 170 133 132 126 123 122 118 121 121 111 115 106 SMP 100 99 Edible 100 Milk 100 98 10% oils 20% 11% Wheat Green Coffee Packaging 119 120 114 114 110 112 110 108 107 105 106 107 106 104 100 99 100 100 Wheat Coffee Packaging 10% 5% 18% 2016 2017 2
Slide 27: Storm Clouds On The Horizon
Storm Clouds On The Horizon Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 28: Business As a Force For Good
Business As a Force For Good ENVIRO NMENTAL GO O D SUSTAINABILITY GO VERNANCE SO CIETAL P EO P LE INITIATIVES INITIATIVES Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 29: Environmental Sustainability
Environmental Sustainability Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 30: Pillars
01 CLIMATE 02 PACKAGING Pillars 03 WATER 04 SOURCING Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 31: Climate – Key Priorities
Climate – Key Priorities FRESH MILK MANUFACTURING LO GISTICS P RO CUREMENT Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 32: Manufacturing
Manufacturing 100% RENEWABLE Energy usage ELECTRICITY Direct ghg emissions (tons eq./ton - last 15 years) (gj/ton – last 15 years) BY 2025 53% 48% reduction reduction Equivalent emission to Per day those generated by benefitting 50,000 400,000 Cars per day Households Ne s t lé In d ia Fin a n c ia l
Slide 33: Logistics Re-imagined
Logistics Re-imagined Initiated A focus on Waterways Lanes sustainable operations 2019 0 2021 4 Increased usage of Increased used Vehicle bigger size vehicles of Railways Payload 2019 5.9% 2019 0% Utilization 2021 9.8% 2021 8.2% 2019 90.3% 2021 92.5% Ne s t lé In d ia Fin a n c ia l An a lys t a n d
Slide 34: Packaging & Plastic Waste Management
Packaging & Plastic Waste Management The Drivers for a Better World Plastic Neutrality | Packaging Changes | Collaboration | Commitment Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 35: Nestlé India Is Now Plastic Neutral
Nestlé India Is Now Plastic Neutral Plastic Neutrality Across Brands! EPR of 20,000 MT in 2020 Map not to scale Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 36: We are walking the talk
We are walking the talk Annually eliminating 30 million plastic straws under ready to drink portfolio Mono material packaging Plastic Reduced in our packaging since 2018* 8.6% *includes plastic promo material Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e
Slide 37: Hilldaari – Collaboration and Awareness
Hilldaari – Collaboration and Awareness Mussoorie Nainital Ponda Divert Waste from Waste Worker Enabling Digital Landfill Professionalization Monitoring Establishing Waste Management Systems in Tourist Dalhousie Mahabaleshwar Munnar Locations NOT FREE FOR CIRCULATION/USE. CONTENTS MAY BE CONFIDENTIA
Slide 38: Our Commitment: 100% recyclable or reusable packaging by 2025
Our Commitment 100% recyclable or reusable packaging by 2025. Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 39: Fresh Milk Procurement
Fresh Milk Procurement Key 1 2 3 4 5 6 interventions Feed Enteric Manure Energy & Carbon Academic & Proposed Production Fermentation Management Processing Sequestration Partnership Activities to Soil Testing, Tensiometer, Zero Yield Improvement, Mineral Mix., Silage, Green Fodder, Semen, Anaerobic D
Slide 40: Water
Water 15% Per Tonne Per day Benefitting Reducing water use of Production per tonne from 2018 15,000+ Households Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 41: Responsible Sourcing
Responsible Sourcing Achieve 100% responsible Achieve no deforestation Achieve 100% cocoa sourced coffee by 2025 (Palm oil) by 2022 for confectionery by 2025 SUSTAINABLE NO DEFO RESTATIO N SUSTAINABLE CO FFEE P ALM CO CO A Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In v
Slide 42: MAGGI Spice Plan - The Sustainable Sourcing Programme
Spice Plan – Traceability MAGGI Spice Plan - The “Touching lives of over 1300 Farmers in 39 Villages across 7 States” Sustainable Sourcing Programme Rajasthan MP People Profits Planet Safe living & Resilient Environmental working conditions Livelihoods Gujarat Telangana sustainability of Worker cond
Slide 43: MAGGI Spice Plan - Key areas for intervention
MAGGI Spice Plan - Key areas for intervention 2022 - 2025 Water use Cost of Cultivation Transition to efficient Use of less fertilizers, irrigation pesticides and mechanisms coated seeds for (sprinklers or improving preferably drip profitability irrigation) Soil Health Pesticide residues Biodiversit
Slide 44: Putting Money Where our Heart is
Putting Money Where our Heart is Accelerating our Environment and Sustainability Spends 900 12.2x 800 700 600 500 400 6.1x 300 200 100 2.4x 1.0x - 2018 2019 2020 Projected 2021 Indexed 2018 Indexed 2018 Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 2
Slide 45: Now Hear From Our Champions
Now Hear From Our Champions Video Indexed 2018 Indexed 2018 Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 46: Societal Initiatives
Societal Initiatives Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 47: Serving Society: Our Focus
Serving Society: Our Focus Alig n e d w it h n a t io n a l Fo c u s o n im p a c t ra t h e r t h a n P ro vid in g re lie f/e a s in g t h e s u ffe rin g o f p rio rit ie s a n d SD Gs * ju s t n u m b e rs * vu ln e ra b le c o m m u n it ie s Em b e d d in g s u s t a in a b ilit y in Co m m u
Slide 48: Impact of Key Societal Initiatives
Impact of Key Societal Initiatives For Individuals and Families P ro je c t J a g rit i He a lt h y Kid s Helping Adolescents Encouraging Good Nutrition and Breastfeeding Live Healthier Practices through Community Action Over 6.5 Million Beneficiaries Nearly 397,000 (2.2 direct and 4.3 indirect) Ado
Slide 49: Impact of Key Societal Initiatives
Impact of Key Societal Initiatives Creating Project Sanitation Access to Serve Safe facilities Clean Drinking Food for girl students For Water Our Communities Around 150,000 21,800 Over 200,000 Students Street Vendors beneficiaries Before Intervention 1500 people Rohira Village Project Water Chamber
Slide 50: Impact of Key Societal Initiatives
Impact of Key Societal Initiatives For the Planet Reducing Water use Creating Awareness about in Agriculture Water Conservation (near Kabini river basin) 300 farmers | 180 hectares Nearly 120,000 20% increase in yield students Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l
Slide 51: And We Want to Do More… Our Ambition by 2024
And We Want to Do More… Our Ambition by 2024 Educating and Creating access Driving socio- creating to clean drinking economic awareness on water and prosperity healthy living sanitation in through and active communities development of Training coffee lifestyle among Encourage good Training street sp
Slide 52: Touched over 1.5 million people
Extending Support to Communities During the Pandemic Continue to support Communities: Covid-19 Relief Efforts 1.5 million people Oxygen Plants near Touched over 5 factory locations COVID-19 Relief Efforts: Providing Dry Safeguarding the Rations and well-being of Cooked Meals Communities Nestlé India
Slide 53: Being the Voice of Purpose – Nanhi Kali Initiative
Being the Voice of Purpose – Nanhi Kali Initiative 2016 100 Million Packs Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 54: Being the Voice of Purpose – The Face of Hope
Being the Voice of Purpose – The Face of Hope Aim to reach over Over 3 Million 250 Million People Pledges already Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 55: Good Governance is Good Health
Good Governance is Good Health Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 56: Workplace Safety During Pandemic
Workplace Safety During Pandemic Temperature screening Hand & Respiratory hygiene Social distancing Sanitation of premises Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 57: Navigating The Pandemic – Critical Support of the Board of Directors
Navigating The Pandemic – Critical Support of the Board of Directors Reimagine the Avoiding future Complacency Reward & recognize those who enabled company to survive & thrive Ensure organization serves Leads the way With gradual its employees, towards phasing out of the customers, Organization stay
Slide 58: Our Suppliers, Our Extended Family
Our Suppliers, Our Extended Family Ramp Up Ensuing Continuous & Safe supply of milk for our consumers Awareness to all Driver Partners Extending Financial Support Mask Distribution to drivers Early Payments - Freight Incentives given Starting Up Supplier Safety Liaising with Authorities Safety Aware
Slide 59: Empower and engage our people
Empower and engage our people Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 60: Unleashing passion, competence and commitment for performance
Unleashing passion, competence and commitment for performance Drive Nesternship + Inculcate Self Learning Enhance Diverse Hiring Henri Nestle Scholarship: Over 160 employees given scholarships of INR 50,000 per person to pursue course of choice Executive General Management Program: 50 employees give
Slide 61: Improving Gender Balance, Retaining Talent
Improving Gender Balance, Retaining Talent % Women recruited as trainees 2016 % Women % Women employees employees 80 25 60 20 23 63 21 59 15 19 40 55 16 17 44 10 20 35 5 0 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 %Series Attrition 1 15 10 11 9 8.3 5 7.2 4.2 0 2016 2017 2018 2019 2020 Ne s
Slide 62: Intensify focus on Wellbeing
Intensify focus on Wellbeing Increase focus on physical and mental wellbeing COVID – Over 90% Medical/financial support 60% employees of employees vaccinated covered in Mental Health with at least one dose* awareness sessions *Over 50% double vaccinated Ne s t lé In d ia Fin a n c ia l An a lys t a
Slide 63: Project Nest – A New Home, For a New Beginning
Project Nest – A New Home, For a New Beginning Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t io n a l In ve s t o r Me e t , 29 t h O c t o b e r 20 21
Slide 64: Key Takeaways
Unwavering Commitment to India Leveraging the RURBAN opportunities Strive to continue robust business model Sustainability across our Operations Caring for Communities a way of life Key Takeaways A Vibrant Workplace fit for the future Ne s t lé In d ia Fin a n c ia l An a lys t a n d In s t it u t i
Slide 65: Robust Fundamentals Leveraging Efficiencies
Robust Fundamentals Leveraging Efficiencies By David McDaniel Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 66: Agenda
Strong Performance So Far Long Term Agenda Strategy Financial Highlights Performance Drivers Value Creation Brand Salience Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 67: Strong Performance So Far…
2016 Strong Performance So Far… to 2020 Volume led profitable growth based on powerful brands, deep insights and agile operations, creating sustainable value for shareholders Sales Profit from Growth Winning Strategy Operations* • Volume & penetration led growth 5Y CAGR 5Y CAGR 16.6% 11.0% • Sustain
Slide 68: Financial Highlights: YTD September 2021
Financial Highlights: YTD September 2021 Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 69: Key Highlights: Strong Growth Continues; Profit from Operations Improved
Key Highlights: Strong Growth Continues; YTD Sept Profit from Operations Improved 2021 Total Sales Profit from Operations* Net Profit Earnings Per Share 130 250 Growth 40.0 40.0 Growth 38 230 37 22.2% 22.6% 120 10.7% 16.2% 16.1% 9.9% 20.0 20.0 210 110 32 190 33 - - 100 170 Growth (2 0 .0 ) 27 (2 0 .
Slide 70: Quarterly Evolution: Growth and Profit Momentum Sustained
2020 Quarterly Evolution: Growth and Profit to Momentum Sustained 2021 Total Sales Profit from Operations* 30 100 70 50 60 25 10.8 10.2 9.2 8.9 13.8 9.6 21.7 22.0 22.9 20.0 23.3 22.2 22.3 50 50 2.0 20 0 0 40 15 -5 0 30 -5 0 10 20 -1 0 0 -1 0 0 5 10 33.1 30.4 35.3 34.2 36.0 34.6 38.7 7.2 6.7 8.1 6.8
Slide 71: Domestic Segments: Strong Growth across Portfolio
YTD Domestic Segments: Strong Growth across Portfolio, Sept 90% from Volume & Mix 2021 Contribution 42.8% 32.1% 14.9% 10.2% Milk Products Prepared dishes Powdered and 1.0% 20.9% & cooking aids 22.3% Confectionery 15.7% liquid beverages and Nutrition Growth Nestlé India Financial Analyst and Institut
Slide 72: Performance Drivers
Performance Drivers Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 73: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 74: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 75: Manufacturing: Best in Class Performance
Manufacturing: Best in Class Performance Project Shark Performance Improvement Generating Capacity 1.1% 1.1% 1.8% 1.8% 1.5% 1.5% 5 5 5 20.0 20.0 5 5 5 4 - 4 - 4 4 (2 0 .0 ) 3 4 4 30 (2 0 .0 ) 3 (4 0 .0 ) 3 3 28 2 26 3 3 (6 0 .0 ) 2 (4 0 .0 ) 24 2.0 2.0 21 2 22 1.0 (8 0 .0 ) 1 (6 0 .0 ) 20 2 2 18 - (
Slide 76: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 77: Supply Chain: Excellence Creating Value
Supply Chain: Excellence Creating Value Procurement Excellence Technology enabled Efficiency Digitalization across Processes Leveraging E-Auction Transportation From sourcing Hub materials and services to paying vendors Project Distribution Swadeshi Optimization From customer order to invoice paymen
Slide 78: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 79: Marketing Spend: Consistent & Targeted Investment
Marketing Spend: Consistent & Targeted Investment Consistent Brand Support Media Money Working Harder Accelerated Digital Investment 1.35x 9,000 1.3x 1.7x 8,000 1.0x 1.5x 2.9x 7,000 7,000 1,800 6,000 6,000 1,600 71% 82% 1.0x 1.8x 5,000 5,000 1,400 57% 1,200 91% 4,000 4,000 89% 1,000 1.0x 82% 3,000 3
Slide 80: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 81: Fit for Future: Lean Organization & Footprint
Fit for Future: Lean Organization & Footprint Efficient Structures Optimizing Footprint Lean Processes 180 1.4x 14 160 12 1.2x 1.0x 140 10 120 100 8 80 6 60 4 40 2 7.6 7.6 7.8 20 Costing - 0 2016 2018 2020 Centre of Number of Employees ('000) Competence Turnover per Employee (index 2016) • Increasin
Slide 82: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 83: Enabler 1: Simplification, Standardization & Automation
Enabler 1: Simplification, Standardization & Automation Simplification Waste Elimination Speedy Execution Ways of Working Automation Standardization Improved Empowerment Faster Decision Making Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 84: Performance Drivers
Performance Drivers Manufacturing Supply Chain Marketing Fit for Future Project Shark Procurement Consistent Efficient Excellence Brand Support Structures Performance Technology Media Money Optimizing Improvement enabled Working Footprint Efficiency Harder Generating Digitalization Accelerated Lean
Slide 85: Enabler 2: MIDAS - Leveraging Data & Analytics
Enabler 2: MIDAS - Leveraging Data & Analytics Optimizing Resource Allocation Sharper Consumer Insights Across brands, clusters & Granular market analysis to guide geographies consumer promotions Optimizing marketing spend with Predict category and Nestlé • Ability to simulate scenarios growth, and
Slide 86: Value Creation
Value Creation Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 87: Value Creation: Strong Momentum Continues…
Value Creation: Strong Momentum Continues… Return on Invested Capital Dividend Per Share (INR) 103.5 105.7 70 150 69.5 60 31.4 36.2 44.9 100 180.0 50 50 40 0 30 -5 0 20 31.8 33.9 35.8 28.3 20.1 21.6 63 86 115 162 180 200 135 -1 0 0 10 - -1 5 0 2016 2017 2018 2019 2020 Jun-21* 2016 2017 2018 2019 201
Slide 88: Key Takeaways
Strong Growth Continues, Profit Momentum Sustained Balanced Portfolio Addressing Consumer Needs Effective Cost and Efficiency Management Fit for Future Organization Key Takeaways Best in class Value Creation Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 89: Navaratna in Sanand, Gujarat
Navaratna in Sanand, Gujarat by Matthias C. Lohner Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 90: Masterplan Overview – Sanand Factory
Masterplan Overview – Sanand Factory 3D Master plan View Aerial View Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 91: Ensuring safe operations across the site
Ensuring safe operations across the site Ensured safe operations while construction & start- up of Sanand Factory during Covid Pandemic Covid protocols followed across :- • Four pillars of prevention – No critical cases • Stay arrangements for workers – Hutments Safety procedure & protocols ensured
Slide 92: Sustainability, Digitalization & Gender Diversity
Sustainability, Digitalization & Gender Diversity Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 93: Sustainability – Aspiring for Zero Carbon Emission
Sustainability – Aspiring for Zero Carbon Emission 68% reduction through cleaner fuel & Hybrid Power • Biomass Boiler for Steam generation • Emissions reduction to ZERO with Biomass fuel • Hybrid power (Solar & Wind) implementation by Q2 - 2022 • 26% of the total energy will be Hybrid power (max all
Slide 94: Digitalization / Connected Factory
Digitalization /Connected Factory – Moving Towards Fully Integrated Unit Digital Journey Connected Worker • DMO is global standard solution which improves • Manufacturing processes • Product Quality • Machine Performance Reason code for Real time Data Entry Stoppages Customized Production • End of l
Slide 95: Productivity – 20% Higher Productivity with Highly Automated Lines
Productivity – 20% Higher Productivity with Highly Automated Lines Productivity Cutting edge process technology reduces manual operations 1.2X 1X Digitalized shop floor optimizes back-office +20% structure Other Noodle Lines Sanand Lines Line centric autonomous working End-of-Line automation with ro
Slide 96: Supporting Diversity: Gender Diversity, Especially Abled Personnel
Supporting Diversity :- Gender Diversity, Especially Abled Personnel Gender Diversity Especially abled More than 60% female Ramps at factory entrance, employees employed at site buildings, emergency exits for accessibility Crèche for children Toilets installed for especially abled personnel in Secur
Slide 97: Training & Delivering Diversity Equity & Inclusion
Training & Delivering Diversity Equity & Inclusion Equal ELC Opportunity & Retention Infrastructure @Nestle Rewards Sanand Training – Ensured safe trainings during pandemic Respectful & Leadership Inclusion Safe Workplace Video Modules developed for onboarding Diversity Equity & Inclusion framework
Slide 98: Thank You
THANK YOU Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021 Sanand in Making
Slide 99: Supply Chain Resilience in the Face of Adversity
SUPPLY CHAIN RESILIENCE IN THE FACE OF ADVERSITY By Ashish Pande 1 Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 100: We work with a Complex Supply Chain
We work with a Complex Supply Chain...while delivering Variety & Volume at high Velocity Our route to market is spread out from farm to fork Raw/pack materials Manufacturing Primary Sales Secondary Sales Sourcing from >100,000 Farmers Co-Pack/ Co-Fillers Exports Sales > Factory Distribution Centers
Slide 101: The biggest Pandemic of our lives disrupted us
The biggest Pandemic of our lives disrupted us in all possible ways Coronavirus: India enters ‘total lockdown’ after spike in cases 3 Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 102: Our Value Chains were brought to a halt at every stage
Our Value Chains were completely brought to a halt at every stage Lockdowns and Closures severely impacted the movement of goods from one node to another Procurement Manufacturing Distribution Centers Cash Distributor Retailer 4 Nestlé India Financial Analyst and Institutional Investor Meet, 29th Oc
Slide 103: Within 7 Days of lockdown, we reconnected with Customers
Within 7 Days of lockdown, we were able to reconnect with Our Customers & Consumers Procurement Manufacturing Distribution Centers Cash Distributor Retailer Majority of our Supplies Supplies ensured Supplies Factories were DCs restarted in restarted in within connected within 6 Days restarted in - 7
Slide 104: Our lessons in managing volatility
Our lessons in managing volatility… Ensuring a Resilient Supply Chain Our teams worked within these five frames as the Crisis Unfolded And we Identified 4 broad Action across 2020 Areas to focus on Realistic view of Empowering teams Current Situation & people 1 Strengthening Identify Scenario partne
Slide 105: We Focused on '4P's to navigate through the Crisis
We Focused on ‘4P’s to navigate through the Crisis People Safety & Health Portfolio Strategy Processes & Systems Partnerships Focusing on People Portfolio optimization Agility in planning & Strengthening First & Caring through in line with customer Steady Ramping up of Partnerships the crisis needs
Slide 106: We Focused on '4P's to navigate through the Crisis
We Focused on ‘4P’s to navigate through the Crisis People Safety & Health Portfolio Strategy Processes & Systems Partnerships Focusing on People Portfolio optimization Agility in planning & Strengthening First & Caring through in line with customer Steady Ramping up of Partnerships the crisis needs
Slide 107: Ensuring People Safety & Health was the foremost Objective
Ensuring People Safety & Health was the foremost Objective Measures were taken across value chain to provide a safe working environment in our Operations Field Staff Factory Staff Distribution Centers Regional Offices & HO • Safety SOPs immediately • PPEs immediately ensured • Basic Hygiene at Nestl
Slide 108: People - Our people have gone above & beyond the call of duty
People - Our people have gone above & beyond the call of duty We initiated new channels of Delivery to Ensure supply throughout the country We were the And the first first FMCG to FMCG to initiate make our exports to stocks Bangladesh available in during the North- lockdown East during Lockdown Pict
Slide 109: We Focused on '4P's to navigate through the Crisis
We Focused on ‘4P’s to navigate through the Crisis People Safety & Health Portfolio Strategy Processes & Systems Partnerships Focusing on People Portfolio optimization Agility in planning & Strengthening First & Caring through in line with customer Steady Ramping up of Partnerships the crisis needs
Slide 110: We made the right Portfolio Choices to ensure supply during COVID
We made the right Portfolio Choices to ensure supply during COVID To Maximize Availability, Reduce Complexity & Ease up the Supply PRE – COVID (JAN ’20) Priority SKUs (Mar ‘20) Return to Normal ( Sep ‘20) 400-500 100-125 400-500 SKUs SKUs SKUs (100% SKUs) ( 25% SKUs) ( 100% SKUs) 12 Nestlé India Fin
Slide 111: Innovation was a differentiator to accelerate growth during COVID
Innovation was a differentiator to accelerate growth during COVID Engagement with supplier partners to fuel Packaging & Co-manufacturing Innovation 13 Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021
Slide 112: Short term disruptions managed using Co-Manufacturing as a Lever
Short term disruptions were managed by using Co-Manufacturing as a Lever Augmentation of Co-Mfg Strategy to play a key role and help us unlock the next level of growth Speed to market and De-bottlenecking existing Supplement regional Price point SKUs innovation supply constraints distribution strate
Slide 113: We Focused on '4P's to navigate through the Crisis
We Focused on ‘4P’s to navigate through the Crisis People Safety & Health Portfolio Strategy Processes & Systems Partnerships Caring through the Portfolio optimization Agility in planning & Strengthening crisis in line with customer Steady Ramping up of Partnerships needs operations 15 Nestlé India
Slide 114: Agile & Responsive Systems which were re-purposed for Growth
Agile & Responsive Systems which were re-purposed for Growth Planning Manufacturing Distribution Re-Look at the planning horizon – Ramp up Of Alte rna te Mod e of Weekly Cadence & Operational Reviews Prod uction & tra ns p ort – of Key Materials Ma np owe r s tra te g y Ra il/VPU Event Management Pi
Slide 115: We Focused on '4P's to navigate through the Crisis
We Focused on ‘4P’s to navigate through the Crisis People Safety & Health Portfolio Strategy Processes & Systems Partnerships Caring through the Portfolio optimization Agility in planning & Strengthening crisis in line with customer Steady Ramping up of Partnerships needs operations 17 Nestlé India
Slide 116: Winning Partnerships with Customer First mindset
Winning Partnerships with Customer First mindset Aligned the ust Sell SKUs Leveraged Direct Delivery to Mapped new Customer with each Key Customers Customers Fulfilment Centers Understanding channel/geography and sometimes customer specific Direct Deliver to Customer Locations & To ensure that our s
Slide 117: PARTNERSHIPS - Helping our partners combat the storm
PARTNERSHIPS - Helping our partners combat the storm Support as required by Developed Alternative Vendors ‘Project Swadesi’: Mitigated Business Partners… during the Lockdown Risk on imported materials Early Payments to Vendors for From initial assessments their Business Sustainability Permissions fo
Slide 118: PARTNERSHIPS - With Suppliers to make our supply chains reliable
PARTNERSHIPS - With Suppliers to make our supply chains reliable WE CONTINUED TO SUPPORT OUR FARMERS ENABLED DIGITIZATION ACROSS THE VALUE CHAIN E-INVOICING TRANSPORTATION-HUB % of E-Invoicing Support Extended 100,000 Milk Farmers through Procurement 1500 Tea Farmers & PPE kits donation 173 To
Slide 119: Nestle has grown to be more resilient & agile through this Pandemic
Nestle has grown to be more resilient & agile through this Pandemic People Safety & Health Portfolio Strategy Processes & Systems Partnerships • Focusing on People • Being Brilliant at • Improving Network • Strengthening First & Caring through Basics agility to pivot as per Partnerships the crisis t
Slide 120: Celebrating Success: Our Moments of Pride
Celebrating Success : Our Moments of Pride For Best Supply Chain Practices in 2020 Continued Supply Chain Leadership in 2021 The Customer FEST Awards - 2020 Manufacturing Supply Chain Awards - 2020 > 35th Inflection Awards 2021 – 20th May’21 2021- Digital Innovation in Supply Chain – 6th Oct ‘21 Sup
Slide 121: Thank You
THANK YOU 23 Nestlé India Financial Analyst and Institutional Investor Meet, 29th October 2021