Zone AOA: delivering growth in an extraordinary environment · Zone AOA: just extraordinary 2...
Transcript of Zone AOA: delivering growth in an extraordinary environment · Zone AOA: just extraordinary 2...
Zone AOA: delivering growth in an extraordinary environmentWan Ling Martello: CEO Zone Asia, Oceania and sub-Saharan Africa
1 | September 26, 2017 | Nestlé Investor Seminar 2017
Zone AOA: just extraordinary
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Growth engine further enabled by digital
Extraordinary environment with significant opportunities
Self-funded recovery with sustainable momentum
Agenda
| September 26, 2017 | Nestlé Investor Seminar 2017
Zone AOA: just extraordinary
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Extraordinary environment with significant opportunities
Agenda
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An extraordinary consumer base: diverse and complex
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Consumers are embracing digital in all markets
E-commerce has exploded in China, pulling ahead of the West0 5
1
0 15
0 20 40 60 80 100E
-co
mm
erc
e s
hare
of
reta
il(%
)
Internet penetration (%)
China
United States
United Kingdom
2010
2015
France
Sources: Economist Intelligence Unit, Internet World Stats, International Telecommunication Union, World Bank, Euromonitor, BCG Analysis
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Growth of e-commerce (2010-2015)
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Mobile-first, and in some places mobile-only
Mobile’s share of web traffic continues to grow across AOA
Source: We are Social & Hootsuite ‘Digital in 2017 Global Overview’
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81 79 78
66
5650
Nigeria India South Africa Indonesia China GLOBAL
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% of total web pages served to mobile phones (Jan 2017)
Disruptive business models changing market dynamics
AOA is much more comfortable with the sharing economy
Source: Nielson ‘Global Share Community Report 2014’
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9487 85 84
78 76
44 43
China Indonesia Philippines Thailand India Vietnam EUROPE NORTHAMERICA
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% likely to use products or services from others in a share community
Newly settled in cities, wanting convenience and quality
There will be 276 new cities of more than half a million people in AOA by 2030, as urban areas expand
702
14195
978
152 112
Asia, Africa and Oceania Europe North America
2016
2030
Source: United Nations ‘The World’s Cities in 2016’
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Cities with more than half a million people
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Keen to stay active and healthy as they get older
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Source: United Nations (2015). World Population Prospects: The 2015 Revision
64
508
177105
845
217220
1294
242
Africa Asia Europe
2015
2030
2050110%
The number of older people is growing more quickly in emerging markets than in developed markets
+87%
87%
31%
People aged 60 years and over (million)
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Africa and Asia bear the greatest share of malnutrition in all itsforms
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% of the world’s children who are too short for their age (stunted)
% of the world’s children who are too thinfor their height (wasted)
Source: UNICEF / WHO / World Bank Group Joint Child Malnturition Estimates2017 edition
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6%
38% 56%
Asia
Africa
Rest of the World
6%
27% 69%
Reliant on affordable nutrition to raise the next generation
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This offers an extraordinary amount of opportunities
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1. Portfolio balanced by category and geography
2. A unique mix of global and local brands
3. Portfolio reaches all consumer segments
4. Highest trust scores in most geographies
5. Experienced and resilient teams succeed amidst volatility
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We are well-positioned to seize these opportunities
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(*) 2016 Including Nestlé Professional AOA Asia
Zone F&B salesby geography (2016)
Zone F&B sales by category (2016)
Sales 2016
Nestlé in AOA
CHF 22.5 billion
of which zone-managed*
CHF 15.9 billion
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GreaterChina
Indiaand Pakistan
Sub-Saharan Africa
Oceaniaand Japan
South EastAsia
Dairy and Ice Cream
Confectionery
Culinary Beverages
Nestlé Professional
Petcare
1. Portfolio balanced by geography and category
2. Unique mix of global and local brands
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3. Portfolio reaches all consumer segments
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4. Highest trust scores in most geographies
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84
112
141
166
201
249
261
264
304
123
143
187
146
148
141
143
226
169
Japan
Australia
India
Indonesia
Thailand
Pakistan
Malaysia
China
Philippines
Source: Nestlé Corporate Equity Monitor 2016
Nestlé Highest scoring competitor
5. Experienced & resilient teams succeed amidst volatility
India: GST reform
Nigeria: Devaluation
Philippines:Floods
Japan: Deflation
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Zone AOA: just extraordinary
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Growth engine further enabled by digital
Extraordinary environment with significant opportunities
Self-funded recovery withsustainable momentum
Agenda
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Self-funded recovery with sustainable momentum
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Deliver sequential improvement
Turn around Yinlu
Accelerate digital
Be a source of talent for the Group
Delivering on commitments at Investor Seminar 2016
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Organic growth by year (%) Organic growth by quarter (%)
FY 13 FY 14 FY 15 FY 16 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
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Delivering sustainable growth
5.6
2.6
0.5
3.2
2.12.5
3.7
4.24.5
5.1
21
-217 bps
+49 bps
2014 2015 2016 2017
Nestlé growth above market
Nestlé growth belowmarket
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Growth acceleration driven by market share recovery
Market shares (moving average trend)
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Organic growth (%) Underlying TOP (%)
FY 13 FY 14 FY 15 FY 16 H1 17 FY 13 FY 14 FY 15 FY 16 H1 17
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Growth reignition without dilution of high margins
5.6
2.6
0.5
3.2
4.8
19.119.5 19.2
19.9 20.3
FY14 and FY16 restated as published
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Our 2017 growth roadmap built upon 2016 momentum
Nescafé RTD gaining market share with double-digit growth
Yinlu: progressing towards a turnaround
Congee returned to growth, but peanut milk still challenging
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Nestlé senior team now in place
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Greater China: other businesses on track
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Hsu Fu Chi: entering new channels with premium and personalized products
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Nescafé: accelerating innovation to maintain brand leadership through premiumization
Totole: back to growth following successful ownershiptransition
Sub-Saharan Africa: growth despite environment
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58% of region sales from popularly positioned products
Mega-brands like Maggi driving market share gains
SE Asia: expanding categories, entering new geographies
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Launching new RTD formats like Bear Brand Yogu in the Philippines
Expanding our strong product portfolio to address the changing needs of the local consumer
NPP: capturing the potential of the petcare category
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E-commerce and specialist outlets are the dominant channels
Huge potential, given low levels of pet ownership and caloric coverage in most emerging markets
Premiumization: reinforcing the relevance of core brands
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One aligned concept, product, packaging rollingout across the three continents of the Zone
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Introducing Nescafé Gold mixes to reinforcefuture brand relevance in premium soluble coffee
RTM: driving sales deeper into rural areas for growth
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Nearly half a million outlets added in the last 18 monthsacross the zone
New models for route-to-market with micro-distributors
Supply chains: ensuring farmers can grow with us
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Bringing the basics of digital and financial literacy to communities where before this was unavailable
In Pakistan we are the first FMCG company to offer digital micro-financing lending to dairy farmers
Zone AOA: just extraordinary
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Growth engine further enabled by digital
Extraordinary environment with significant opportunities
Self-funded recovery with sustainable momentum
Agenda
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Digital acceleration: producing market share gains
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In China we are outpacing the Food & Beverage category with Nestlé e-commerce growth of 32% vs. 27% for the category
Source: Nielson Tracking Data
% e-commerce value growth in China (H1 2017)
50 3530 75 1004025 6560 7010 8520 90 9515 45 8050 55
Category
Nestlé
Coffee
MilkPowder
InfantFormula
PetFood
Cereals
Biscuit
Data: driving relevance at scale
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Total consumers in theAlibaba universe:
Matching of data allowsmore effective targeting:
3x more
effective
466 million
Augmented reality: connecting to young consumers
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Delivering exclusive entertaining experiences for fans of our biggest brands
Merging digital and physical to capture the interest of youngeraudiences
Voice activation: pioneering nutritional support
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China’s first voice-activated family nutritionist, powered by artificial intelligence
Content creation: long-form to capture hearts and minds
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Maggi created the most watched online series in French-speaking West Africa
30 episode ‘made for mobile’ long-form content contributed to the 29% volume uplift for Maggi in Senegal during Ramadan
Analog: proving real-life brand experiences still matter
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ʺDisconnect to Connectʺ campaign challenged young people to ʺstop the internet and be a real friendʺ
Driving closer personal connections with brands throughactivations and exclusive opportunities
Participatory advertising: first to know, first to tell
Maggi Masalas of India: a new range launched via Google Search – a first in India
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Personalization: healthy tea for me
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Nestlé Wellness in Japan offers a daily tea capsule tailoredto your nutritional needs
Personalized nutrition that meets consumer demand for foodand beverages that contribute to health and well-being
Online / offline: you create, we customize
Chocolatory store Chocolatory websiteKitKat tablets‘Inspired by Chocolatory’
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Committed to be a key contributor to the Group in all dimensions
Sustainablemomentum
4.8% OG
High-qualitygrowth
3.0% RIG
High cash flow
and high ROIC
Strong margins
20.3%Underlying TOP
Source: 2015 NNS, company internal data
Nestlé sales in CHF / per capita (2016)
<1 1-3 3-5
5-10 10-20 20-30
>30
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Some regions are underscaled versus the rest of the Zone portfolio, offering clear opportunities for further growth
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Not satisfied, challenging ourselves
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Determined to deliver for each and every consumer
Zone AOA: just extraordinary
extraordinary zone with
extraordinary brands managed by
extraordinarypeople seizing
extraordinary opportunities to deliver
extraordinary value
for all stakeholders
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Thank you
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Cảm ơn bạn
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Ngiyabonga| September 26, 2017 | Nestlé Investor Seminar 2017