Nestlé S.A. Roddy Child-Villiers Head of Investor Relations. Name of chairman

Transcription

1 Nestlé S.A. Roddy Child-Villiers Head of Investor Relations

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 Morgan Stanley Conference, November 18-20, 2008

3 Agenda Update the year to date The road map to out-performance The Nestlé Model 3 October 23, 2008 Press conference, CEO Presentation 3 Morgan Stanley Conference, November 18-20, 2008

4 Key figures 9 months 2008 Record first-half EBIT margin 8.9% organic growth for 9 months USD 10.4 billion partial disposal of Alcon "Gold standard" credit quality Accelerated share buy-back 4 October 23, 2008 Press conference, CEO Presentation 4 Morgan Stanley Conference, November 18-20, 2008

5 The Roadmap to Outperformance Four competitive advantages Four growth areas Four Pillar strategy 5 Morgan Stanley Conference, November 18-20, 2008

6 Nestlé's Four Competitive Advantages Product & brand portfolio Comprehensive geographic presence Industry-leading research and development People, culture and values 6 October 23, 2008 Press conference, CEO Presentation 6 Morgan Stanley Conference, November 18-20, 2008

7 The Ideal Brands & Geographic Presence to Benefit from Growth in Incomes 7'000 6'000 5'000 4'000 Moving up on the escalator: World population by income bracket People, mn > $28'000 $22'000-28'000 $13'000-22'000 3' $5'000-13'000 2'000 $ ' < $1500 Sources: UN WIDER and World Bank (also for outlook on economic growth ); 7 Morgan Stanley Conference, November 18-20, 2008

8 The Ideal Brands & Geographic Presence to Benefit from Changing Demographics Demographics: A $240 billion opportunity "Premiumisation" PPP = PopularlyPositioned Products Growth scenario ( ) + US$ 170bn 5.9% p.a. Consumption of food manufacturing value-added actual US$, per capita Convenience Sustenance Growth scenario ( ) + US$ 70bn 6.9% p.a. Pleasure and diversity Nestlé per capita sales Nutrition WellBeing PPP Per-capita income US$ 1,500 5,000 13,000 22,000 Sources: UNIDO (value-added), WIDER and World Bank; Nestlé 28,000 8 Morgan Stanley Conference, November 18-20, 2008

9 Nestlé R&D Network Minneapolis Fremont Marysville Solon St. Louis Queretaro Osthofen Vittel Amiens Lisieux Beauvais Tours NRC Lausanne York Singen Rzezsow Sderot Casa Buitoni Konolfingen Orbe Bev. Center Orbe Beijing Shanghai Singapore 9 October 23, 2008 Press conference, CEO Presentation 9 Morgan Stanley Conference, November 18-20, 2008

10 Nestlé's Four Growth Drivers Nutrition, Health & Wellness Out-of-home Emerging consumers PPP Premium and luxury 10 October 23, 2008 Press conference, CEO Presentation 10 Morgan Stanley Conference, November 18-20, 2008

11 Nutrition, Health & Wellness 60/ Morgan Stanley Conference, November 18-20, 2008

12 PPPs Vast and Diverse Markets 12 October 23, Morgan Stanley Conference, November 18-20, 2008

13 Maggi PPP in France 13 October 23, 2008 Press conference, CEO Presentation 13 Morgan Stanley Conference, November 18-20, 2008

14 Nestlé Professional Out-of-Home 14 October 23, 2008 Press conference, CEO Presentation 14 Morgan Stanley Conference, November 18-20, 2008

15 Premiumisation 15 October 23, 2008 Press conference, CEO Presentation 15 Morgan Stanley Conference, November 18-20, 2008

16 Nestlé's Four Pillars Operational efficiency 51.8% 41.9% Innovation & Renovation Consumer communication Whenever, Wherever, However 16 October 23, 2008 Press conference, CEO Presentation 16 Morgan Stanley Conference, November 18-20, 2008

17 Consumer Communication 17 Morgan Stanley Conference, November 18-20, 2008

18 Operating Efficiency Nestlé Continuous Excellence Nestlé Integrated Management System Quality, Safety, Environment, Standards Leadership Development Coaching and Empowerment Goal Alignment Operational Masterplanning, Performance Measures, Operations Review, Problem Solving Measure, Monitor, Organize LEAN Supply Chain TPM Audits, Self Assessment Tools Consumer Customer Distribution Manufacturing Packaging Raw Material Total Performance Management 18 October 23, 2008 Press conference, CEO Presentation 18 Morgan Stanley Conference, November 18-20, 2008

19 The Nestlé Model Year after year: Organic growth 5-6% Sales Increased EBIT margin Improved capital efficiency EBIT Resulting in an industry outperforming, long-term total shareholder return 19 October 23, 2008 Press conference, CEO Presentation 19 Morgan Stanley Conference, November 18-20, 2008

20 Building on Momentum to Drive Performance Drive key growth opportunities Nutrition, Health & Wellness, PPP, Premium, Out-of-home Build on the Competitive advantages Brands, Global presence, People, R&D Accelerate operational efficiency Continuous Excellence, Leverage GLOBE, GNBS "The Result" enhanced financial performance "The Nestlé Model" with greater capital efficiency 20 Morgan Stanley Conference, November 18-20, 2008

21 Vision To make Nestlé the reference for Nutrition, Health & Wellness and for Financial Performance 21

22 Nestlé S.A.