Nestle S.a. · SIX:NESN
Nestle — Investor Day (June 2009)
15 slides from Nestle's investor day presentation, Jun 29, 2009
Slide 1: Nestlé Continuous Excellence: Accelerating our performance improvements
Nestlé Continuous Excellence “Accelerating our performance improvements" José Lopez June 29th, 2009 Nestlé Investor Seminar - José Lopez Name of chairman
Slide 2: Operations in Nestlé: 2008 key figures
Operations in Nestlé: 2008 key figures Materials Sourcing Production • Agriculture • Manufacturing • Procurement • Engineering § 594'000 farmer relationships § 456 operating factories § 41'000 ktons of products § CHF4.9bn of capital expenditure § >2'000 distribution centres § 183'000 people § ... Su
Slide 3: 2008 has been the best year ever for Nestlé operations improvement activities
2008 has been the best year ever for Nestlé operations improvement activities Operations saving index 111 103 100 101 95 2004 2005 2006 2007 2008 § Significant acceleration in 2008: +11% vs. 2007 § > CHF12bn saved over the last 10 years 3 Nestlé Investor Seminar - José Lopez Name of chairman
Slide 4: Manufacturing productivity has further improved
Manufacturing productivity has further improved Number of factories and production volume per factory 520 95 90.1 500 90 500 85.6 487 85 481 480 480 80 79.4 75 456 74.7 460 70 67.4 440 65 60 420 55 400 50 2004 2005 2006 2007 2008 # of factories Production volumes per factory (ktons) § 34 factories d
Slide 5: Environment and safety indicators have confirmed the positive trend
Environment and safety indicators have confirmed the positive trend Variation 2003 - 2008 Water Consumption m3 - 32% Energy Consumption gigajoules - 22% Greenhouse Gases kg CO2 - 25% rate on 1mio Lost Time Injury Fr. hours worked - 69% 5 Nestlé Investor Seminar - José Lopez Name of chairman
Slide 6: At the end of May 2008 we launched Nestlé Continuous Excellence
At the end of May 2008 we launched Nestlé Continuous Excellence... “One Nestlé Operating model” Nestlé Integrated Management System (NIMS) Quality, Safety, Environment, Standards, Business Excellence ... Leadership Development Nestlé Management & Leadership Principles, Business Principles, Nestlé on
Slide 7: Beginning 2009 we accelerated the deployment pace of the foundation modules
... and beginning 2009 we accelerated the deployment pace of the foundation modules Achievement vs. May 2008 roll-out plan Dec. Dec. 2008 2008 June June 2009 2009 Goal Alignment & leadership (# factories activated vs. planned) 100% 100% 116% 116% Green Belt Trainings (# session delivered vs. planned
Slide 8: Increasing the number of improvement activities, no matter how small, proved successful
Increasing the number of improvement activities, no matter how small, proved to be successful... Example: § Goal Alignment modules Nestlé South East Europe (6 factories) are delivering outstanding q > 400 people involved results q 18 improvement opportunities identified and initiated q Absenteeism i
Slide 9: Across the 5 continents: NCE Foundation modules' results
... across the 5 continents NCE Foundation modules’ results - Example Graneros (Chile) Rorschach (CH) Rio Pardo (Br) Inofyta (Gr) Goal Alignment improves After 2 months Visual aid on the performance and line efficiency. of Goal Alignment Hoegger 1 Line triggers overfilling reduction 100% Efficiency
Slide 10: To better monitor and trace the results we have deployed a new tool
To better monitor and trace the results we have deployed a new tool... § Nestlé Continuous Excellence: large number of “small” decentralized improvement activities § Clear monitoring and short reporting cycle time to enable fast decision making 10 Nestlé Investor Seminar - José Lopez Name of chairma
Slide 11: Our action plan for 2009-2010: accelerate deployment of Focus Improvement pillar
Our action plan for 2009 - 2010 is to accelerate the deployment of Focus Improvement pillar... FI pillar roll-out plan (# factories activated vs. total scope) § Focus Improvement (FI) to 100% identify, analyze & eliminate 91% losses 68% § FI natural evolutionary step of Foundation modules § FI to su
Slide 12: Disseminate the Lean concept outside the Operations domain
... as well as to disseminate the Lean concept outside the Operations domain NCE pilots areas beyond Operations § Transactional processes within GLOBE and our shared business services (GNBS) § Managerial processes within our Centre Corporate activities § Marketing, communication and sales activities
Slide 13: Our target is to further accelerate our efficiency drive across the entire value chain
Our target is to further accelerate our efficiency drive across the entire value chain... Our target is to further accelerate our efficiency drive across the entireOur value chain... advantage to create gaps competitive Alignment and strategic control of the value chain § To have higher influence on
Slide 14: To support and enhance The Nestlé model
... to support and enhance “The Nestlé model” 1. Long-Term Organic Growth Target 5 - 6% Sales 2. Continued year after year improvement of EBIT margin EBIT 3. Improving Capital efficiency / Business ROIC / Cash returns to shareholders Resulting in an industry outperforming, long- term total sharehold
Slide 15: Thank you
Thank you 15 Nestlé Investor Seminar - José Lopez Name of chairman