Welcome to the Nine-Month Sales Conference
Nine-Month Sales Conference Paul Bulcke Nestlé CEO
2010 2011 2012 2013 3
Nine-Month Sales Conference Wan Ling Martello Chief Financial Officer
This presentation contains forward looking statements which reflect Management s current views and estimates. The forward looking Disclaimer 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. 5
Sales up 4.0% to CHF 68.4 billion Highlights Organic growth of 4.4% Real Internal Growth 3.0% All geographies contributing to positive growth Outlook confirmed: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 6
6.6 Operating Segments 5.2 5.6 5.1 4.0 5.6 4.4 0.7 2.1 1.5 2.0 2.1 Zone Europe Zone Americas Zone AOA Nestlé Waters Nestlé Nutrition Other Sales CHF bn rounded 11.4 20.8 14.1 5.7 7.5 9.0 % OG % RIG 7
6.1 6.9 Product 5.0 5.0 4.4 3.5 3.9 Categories 2.3 0.5 0 Powdered & Liquid Beverages Milk Products & Ice Cream Prepared Dishes & Cooking Aids Confectionery PetCare Sales CHF bn rounded 15.0 13.2 10.3 7.2 8.3 % OG % RIG 8
6.9 5.1 5.8 Regional Performance % OG % RIG 1.9 2.0 0.9 Europe Americas AOA Sales CHF bn rounded 18.7 29.6 20.0 Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc, 9
Europe Region* Sales CHF 18.7 bn OG 0.9% RIG 1.9% Zone Sales CHF 11.4 bn OG 0.7% RIG 2.1% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 10
Americas Region* Sales CHF 29.6 bn OG 5.1% RIG 2.0% Zone Sales CHF 20.8 bn OG 5.2% RIG 1.5% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 11
Asia, Oceania & Africa Region* Sales CHF 20.0 bn OG 6.9% RIG 5.8% Zone Sales CHF 14.1 bn OG 5.6% RIG 5.1% *Figures include Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc 12
Broad based performance all regions and Summary categories contributing Growth momentum continues Outlook confirmed: around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 13
Enhancing our competitiveness to drive performance Paul Bulcke Nestlé CEO
Delivering EBIT (in % NPS) TOP margin (in % NNS) 12.5 12.6 12.9 13.5 14.0 14.3 14.6 14.8 14.4 15.0 15.2 over time Nestlé Model 5.1 4.5 6.2 6.2 7.4 8.3 4.1 6.2 7.5 5.9 10 year Average OG + 6.1% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 15
Competitive advantages People Nutrition, Health and Wellness Emerging Consumers Growth drivers Worldwide presence Out-of-home Our Roadmap Driving performance Research and development Our ambition is to be the leader in Nutrition, Health and Wellness, and the reference for financial performance, trusted by all stakeholders Premiumisation Portfolio Consumer engagement Innovation Presence Operational efficiency Operational pillars 16
New Reality Many challenges 17
New Reality Many opportunities 18
Make choices Grasp opportunities Our priorities Value what consumers value Engage with the community and stakeholders Embrace digital Have the best people Expand the boundaries of nutrition 19
Strengthening portfolio Focus on Allocating resources Mastering complexity 20
Strengthening portfolio Focus on Allocating resources Mastering complexity 21
R&D and Innovation 60/40 + 22
Portfolio management Acquisitions M&A 2001 2007 2010 2011 2012 2000 2003 2004 2009 2010 2012 South Africa Divestitures 23
Portfolio management Scope Criteria Decisions Strengthening 1800 cells Strategic fit portfolio Products Brands Profitable growth Invest? Fix? Drive Categories Resource Divest? returns Markets intensity 24
Strengthening portfolio Focus on Allocating resources Mastering complexity 25
Investing for growth Capabilities 26
Investing for growth Capacities 27
A strong global presence Factories R&D Factory: new/expansion New R&D Illustrative 28
Capital Expenditure 5% Return 29
Strengthening portfolio Focus on Allocating resources Mastering complexity 30
Category Powdered and Liquid Beverages Water Geography Europe Americas Asia Oceania Africa Milk products and Ice cream Nutrition and HealthCare Prepared dishes and Cooking aids Mastering Confectionery PetCare complexity Nestlé Waters Globally Managed Businesses Nestlé Nutrition Nestlé Professional Nespresso Separately governed operations Nestlé Health Science (NHS) Joint Ventures F&B: CPW (Cereals), BPW (Beverages) Joint Ventures Pharma: Galderma, Inneov GLOBE, NCE, NBS, 31
Mastering complexity From size... to scale to competitive advantage 32
Strengthening portfolio Enhancing our competitiveness to drive Allocating resources performance Mastering complexity 33
Enhancing our competitiveness to drive performance 34 17 October, 2013 Nine-Month Sales Conference
Appendix 35
CHF per 9m 2012 9m 2013 (%)* US Dollar (1) 0.94 0.94-0.5 Weighted Average Exchange Rates Euro (1) 1.20 1.23 +2.3 Sterling (1) 1.48 1.45-2.6 Real (100) 49.06 44.29-9.7 Mex. Peso (100) 7.11 7.38 +3.8 Yen (100) 1.18 0.97-18.1 * % rounded 36
(%) 1Q 2013 HY 2013 9m 2013 Zone Americas -2.6-2.4-4.4 FX Impact on All Businesses Zone Europe +1.2 +1.3 +0.9 Zone AOA -1.0-1.4-3.7 Nestlé Nutrition -1.9-1.8-3.9 Nestlé Waters +0.9 +0.8-0.4 Other +0.2 +0.3-1.0 Total -0.9-0.9-2.5 37