2010 Nov Nestle General Overview

8/6/2019 2010 Nov Nestle General Overview

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... captures the very essenceof Nestl and the promisewe commit ourselvesto everyday, everywhereas the leading Nutrition, Health& Wellness Company

15 November 2010


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Building on Nestls heritage1866

19291938

1947

1960s

1970s

1980s

1990s

2000s

Henri Nestl

2010


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Nestls greatest assets

Nestl Culture: aligning over 280,000 people from

120 countries

Consumer Trust: 1 billion customers a day

A product for every

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moment of every day,

from morning to nightand from birth to old age


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The Nestl Roadmap

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Growthdrivers

Competitiveadvantages

Operationalpillars


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Nestls geographic reachUnmatched global scale

AmericasCHF 44bn

EuropeCHF 35bn

AOACHF 20bn

Emerging marketssales of CHF 35bn

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Emerging market performance

Emerging marketsare enhancing to organic growth

are enhancing to EBIT margins

are a focus of Capex and M&A

and

and

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GlobalSalesCHF bn

% ofSales inEMs

GlobalSalesCHF bn

% ofSalesin EMs

Dairy 13.0 80 Ambient Culinary 7.4 50

PetCare 12.9 10 Ice Cream 6.6 20

Confectionary 11.8 45 Powdered Beverages 3.4 65

Soluble Coffee 10.6 50 RTD Beverages 1.2 40

Frozen & Chilled 9.7 0 Weight Management 0.6 0

Water 9.0 15 Performance Nutrition 0.2 0Infant Nutrition 7.4 50

Nestls diverse portfolioUnparalleled breadth across product groups

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Sales FY 2009; EM = Emerging Markets (LatAm, Carribean, Eastern Europe, and AOA excl. Japan, Oceania, South Korea and Israel)


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Building enduring franchisesBillionaire Brands contribute 75% of sales

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http://webappps2.hq.nestle.com/appl_Bcom/Search/shFamilyPreview.asp?BRDSelect=-1&TXTCat=Beverages&CatId=75&OTSelect=-1&TXTKey=&TXTKey2=&TXTRef=&TXTName=&TXTDesc=&Action.x=7&Action.y=9&GotoPage=1&SO=1&FAM=278


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SBU/GMB/Zone lead

Market/Zone lead

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Innovation & RenovationFrom game changing ideas to consumer relevant adaptation

Generating

concepts

Exceptional

performance

Continuous

improvement

The essential

start...

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Nestls approach to Nutrition, Health & WellnessEnabling consumers to make healthy choices

Pleasure

60/40+Combining best taste

with best health

Balance

Branded Active BenefitsMaking a good Nestl

brand even better

Understanding

Nutritional Compass

Helping consumers with informed dietary choices

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Nestls specific business modelsTargeting emerging consumer groups

Premium

Mainstream

PPP

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PPP = Popularly Positioned Products


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Nestls belief is that businesses can only be

successful in the long term bycreating value for shareholders society

Nutrition Water Rural Development

and

Creating shared value

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Nestls objective

is to be the recognizedleader in Nutrition,Health & Wellness,and the industry

reference for financialperformance

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The Nestl ModelCreating value through profitable growth

Organic growth of 5% to 6%

EBIT margin improvement every year

Increase return on invested capital

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Data corresponds to published figures not restated for accounting changes. *9 months 2010

7.4%

9.7%

5.1%4.5%

6.2% 6.2%

4.1%

5.4%4.9%

8.3%% Organic Growth

RIG

10-year annual averagesOrganic Growth 6.2%

Real Internal Growth 3.5%

6.1%

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10 years of the Nestl Model together with a high level of organic growth


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Group EBIT

EBIT margin

CHF bn

Data corresponds to published figures not restated for accounting changes.

10 years of the Nestl ModelConsistent improvement in the EBIT margin

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Share Buy-Back

Dividend (CHF bn)

Dividend Payout Ratio

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*Forecast

has enabled significant cash returns to

shareholders


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Nestl continues to deliver total performance

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Achieving

Simplicity

Investing

for Growth

Driving Scale

Benefits

Accelerating

Performance

THE NESTL MODEL

||

and andand


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as an enabler

MH'97

Target 2004+

OperationEXCELLENCE2007

CI

Performance

2010...200520011997 2008

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Nestls operational efficiencyDelivering the highest quality, lowest cost & best customer service


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Nestl's global presence: an unparalleled foundation for growth

We are investing in R&D, in capabilities, infrastructure, peopleand brands to drive growth

The Nestl Roadmap: the building blocks for growth bycategory 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 Nestl Model for years to come

Nestl outlookOpportunities for growth

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Nestls objective

is to be the recognizedleader in Nutrition,Health & Wellness,and the industry

reference for financialperformance

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2010 Nov Nestle General Overview

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