2008 11 05-20 - UK US Roadshow - RCV FINAL Morgan Stanley Conference, November 18 - 20, 2008 Name of...
Transcript of 2008 11 05-20 - UK US Roadshow - RCV FINAL Morgan Stanley Conference, November 18 - 20, 2008 Name of...
Name of chairman
Nestlé S.A.
Roddy Child-VilliersHead ofInvestor Relations
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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.
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Agenda
Update – the year to date
The road map to out-performance
The Nestlé Model
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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
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Four competitive advantages
Four growth areas
Four Pillar strategy
The Roadmap to Outperformance
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Nestlé's Four Competitive Advantages
Product & brand portfolio
Industry-leadingresearch and development
Comprehensivegeographic presence
People, culture and values
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People, mn
Sources: UN WIDER and World Bank (also for outlook on economic growth 2005-2015);
+ 355
+ 885+ 133
+ 230
+ 448
+ 199
1970 1653 1429
2153 26012354
710940 1825
389522
443175
235286
295
494
849
0
1'000
2'000
3'000
4'000
5'000
6'000
7'000
1995 2005 2015
> $28'000
$22'000-28'000
$13'000-22'000
$5'000-13'000
$1500-5000
< $1500
Moving up on the escalator: World population by income bracket – 1995-2005-2015
The Ideal Brands & Geographic Presence to Benefit from Growth in Incomes
8 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008Sources: UNIDO (value-added), WIDER and World Bank; Nestlé
US$ 1,500
Sustenance Pleasure anddiversity
Convenience
5,000 13,000 22,000
Per-capita income
28,000
"Premiumisation"Growth scenario (2005-15)
+ US$ 170bn5.9% p.a.
Growth scenario (2005-15)
+ US$ 70bn6.9% p.a.
PPP
Consumption of food manufacturing value-added
actual US$, per capita
Nutrition WellBeing
Nestlé per capita sales
PPP = Popularly PositionedProducts
Demographics: A $240 billion opportunity
The Ideal Brands & Geographic Presence to Benefit from Changing Demographics
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Nestlé R&D Network
MarysvilleSolon
St. Louis
VittelAmiensLisieux
BeauvaisTours
YorkSingen
ShanghaiSingapore
SderotCasa BuitoniKonolfingenOrbeBev. Center Orbe
NRC Lausanne
Beijing
Queretaro
Minneapolis Fremont RzezsowOsthofen
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Nestlé's Four Growth Drivers
Nutrition, Health & Wellness
Out-of-home
Premium and luxury
Emerging consumersPPP
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Nutrition, Health & Wellness
60/40+
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PPPs – Vast and Diverse Markets
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Maggi PPP in France
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Nestlé Professional – Out-of-Home
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Premiumisation
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Nestlé's Four Pillars
Operational efficiency
Innovation & Renovation
Whenever, Wherever, However
Consumer communication
51.8%
41.9%
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Consumer Communication
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Operating EfficiencyNestlé Continuous Excellence
Leadership DevelopmentCoaching and Empowerment
Nestlé Integrated Management SystemQuality, Safety, Environment, Standards
Goal AlignmentOperational Masterplanning, Performance Measures, Operations Review, Problem Solving
Measure, Monitor, Organize
Customer Distribution Packaging Raw Material
LEAN Supply Chain
Manufacturing
TotalPerformanceManagement
TPM
Consumer
Audits, Self Assessment Tools
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The Nestlé Model
Year after year:§ Organic growth 5 - 6%
§ Increased EBIT margin
§ Improved capital efficiency EBIT
Sales
Resulting in an industry outperforming, long-term total shareholder return
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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
Building on Momentum to Drive Performance
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To make Nestlé the reference for Nutrition, Health & Wellness
Vision
and for Financial Performance21
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Nestlé S.A.