Nestlé Investor Seminar 2007

Transcription

1 Nestlé Investor Seminar to 2007 The Transformational Challenge Peter Brabeck-Letmathe Chairman Chief Executive Officer Name of chairman

2 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. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. 2 Name of chairman

3 1997 to 2007 The transformational challenge Delivering the "Four Pillar" strategy Achieving leadership in key areas Transforming to Nutrition, Health & Wellness Creating an agile fleet to manage & leverage scale Enhancing performance & shareholder returns 3 Name of chairman

4 Nestlé Four Pillar Strategy Low Cost Operations Innovation Renovation Consumer Communication Whenever Wherever However 4 Name of chairman

5 Low cost operations Operation EXCELLENCE 2007 Target MH'97 CI Continuous Improvements Centre: top-down targets Markets: ownership Target setting Best practices Industrial Restructuring Joint Purchasing/ Technical effort Harmonisation of Raw/ Pack materials Integrated Technical / Supply Chain / Generating Demand effort Optimised planning processes Complexity optimisation Manufacturing/ Distribution network optimisation High performing logistics CHF 10 billion of savings in 10 years 5 Name of chairman

6 Innovation and renovation Food, systems, technologies, packaging 60/40+, leveraging nutrition knowhow across categories Open innovation, VC, partnerships Proprietary, protectable, patented, perceivably better products Driving differentiation, EBIT margin and growth 6 Name of chairman

7 Whenever, wherever, however Impulse Ice cream, Chocolate, Beverages Nestlé Nutrition beyond traditional retail Services & Premium Jenny Craig, Healthcare Nutrition, Nespresso FoodServices PPP and dedicated distribution in emerging markets Successful strategy for European discounters 7 Name of chairman

8 Consumer communication From mass terrestrial to multichannel & interactive From interactive to one-to-one From brand to brand benefits and company behaviour "Show me don't tell me" 8 Name of chairman

9 Achieving leadership in 3 key categories Water PetCare Ice cream And building on existing strengths elsewhere 9 Name of chairman

10 Transforming to Nutrition, health and wellness The Leader from a respected, trustworthy Food company to a respected, trustworthy Food - Nutrition - Health & Wellness company 10 Name of chairman

11 Global leadership in Nutrition 11 Name of chairman

12 Global leadership in Nutrition Nestlé Nutrition + BABs BABs CHF 14 bn + Nestlé Nutrition CHF 10 bn FY run-rate including recent acqusitions 12 Name of chairman

13 An agile fleet of businesses An agile fleet of businesses, each strong and flexible, with its own rules to be successful, led by business specific management A highly interdependent organisation and efficient support structure, able to leverage our know-how internally and our scale with suppliers, customers, media, governments Name of chairman

14 Enhancing performance - Organic Growth 5.8% average over last 10 years % Growth 15% 10 years average 10% 5% 2.5% 2.2% 3.6% Acquisitions OG 5.8% 0% -1.5% Divestitures -1.4% Forex -5% OG: Organic Growth -10% RIG Pricing & Other Acquisitions Divestitures FX Impact 14 Name of chairman

15 Enhancing performance - EBIT Margin 30 bps average improvement per annum 14'000 EBIT (in mio CHF) EBIT (in % Sales) 12' % 10'000 8' % 12.5% 12.6% 12.9% 6' % 11.8% 4' % 10.3% 10.3% 2' Figures correspond to published figures - not restated for accounting changes 15 Name of chairman

16 Enhancing performance: Nestlé valuation and TSR since PBL CEO announcement CHF bn TSR 390% Source: Bloomberg, Temple Bar Advisory LLP 16 Nestlé NIS 2007 Investor Seminar Vevey June 7-8, 2007 Name of chairman

17 The Nestlé Model Sustainable 5-6% Organic Growth + Annual improvement of EBIT margin + Improving trend in ROIC EBIT Margin To deliver an industry outperforming, long-term total shareholder return We plan to deliver the Nestlé Model annually over the next 10 years 17 Name of chairman

18 Excellence & courage in execution The course of the company has been set Now our people must see the journey through 18 Name of chairman

19 Nestlé Investor Seminar 2007 Name of chairman