Building on Nestlé s heritage

Transcription

1 ... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading Nutrition, Health & Wellness Company 1

2 Building on Nestlé s heritage Henri Nestlé 1960s 1970s 1980s 1990s 2000s

3 Nestlé s greatest assets Nestlé Culture: aligning over 280,000 people from 120 countries Consumer Trust: 1 billion customers a day A product for every moment of every day, from morning to night and from birth to old age 3

4 The Nestlé Roadmap Competitive advantages Operational pillars Growth drivers 4

5 Nestlé s geographic reach Unmatched global scale Europe CHF 35bn Americas CHF 44bn AOA CHF 20bn Emerging markets sales of CHF 35bn 5

6 Emerging market performance Emerging markets are enhancing to organic growth and are enhancing to EBIT margins and are a focus of Capex and M&A 6

7 Nestlé s diverse portfolio Unparalleled breadth across product groups Global Sales CHF bn % of Sales in EMs Global Sales CHF bn % of Sales in EMs Dairy Ambient Culinary PetCare Ice Cream Confectionary Powdered Beverages Soluble Coffee RTD Beverages Frozen & Chilled Weight Management Water Performance Nutrition Infant Nutrition Sales FY 2009; EM = Emerging Markets (LatAm, Carribean, Eastern Europe, and AOA excl. Japan, Oceania, South Korea and Israel) 7

8 Building enduring franchises Billionaire Brands contribute 75% of sales 8

9 Innovation & Renovation From game changing ideas to consumer relevant adaptation The essential start... Generating concepts Exceptional performance Continuous improvement SBU/GMB/Zone lead Market/Zone lead 9

10 Nestlé s approach to Nutrition, Health & Wellness Enabling consumers to make healthy choices Pleasure 60/40+ Combining best taste with best health Balance Branded Active Benefits Making a good Nestlé brand even better Understanding Nutritional Compass Helping consumers with informed dietary choices 10

11 Nestlé s specific business models Targeting emerging consumer groups Premium Mainstream PPP PPP = Popularly Positioned Products 11

12 Creating shared value Nestlé s belief is that businesses can only be successful in the long term by creating value for shareholders and society Nutrition Water Rural Development 12

13 Nestlé s objective is to be the recognized leader in Nutrition, Health & Wellness, and the industry reference for financial performance 13

14 The Nestlé Model Creating value through profitable growth Organic growth of 5% to 6% EBIT margin improvement every year Increase return on invested capital 14

15 10 years of the Nestlé Model together with a high level of organic growth 9.7% 10-year annual averages Organic Growth 6.2% Real Internal Growth 3.5% % Organic Growth RIG 7.4% 8.3% 5.4% 4.9% 5.1% 4.5% 6.2% 6.2% 4.1% 6.1% Data corresponds to published figures not restated for accounting changes. *9 months

16 10 years of the Nestlé Model Consistent improvement in the EBIT margin Group EBIT EBIT margin CHF bn Data corresponds to published figures not restated for accounting changes. 16

17 has enabled significant cash returns to shareholders Dividend Payout Ratio Dividend (CHF bn) Share Buy-Back *Forecast 17

18 Nestlé continues to deliver total performance Achieving Simplicity and Investing and for Growth Driving Scale Benefits and Accelerating Performance THE NESTLÉ MODEL 18

19 Nestlé s operational efficiency Delivering the highest quality, lowest cost & best customer service Performance Target Operation EXCELLENCE 2007 MH'97 CI as an enabler

20 Nestlé outlook Opportunities for growth Nestlé's global presence: an unparalleled foundation for growth We are investing in R&D, in capabilities, infrastructure, people and brands to drive growth The Nestlé Roadmap: the building blocks for growth by category and country global strategy, local execution We are all aligned behind our Roadmap, focused on acceleration in everything that we do We are committed to the Nestlé Model for years to come 20

21 Nestlé s objective is to be the recognized leader in Nutrition, Health & Wellness, and the industry reference for financial performance 21