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Nestlé Investor Seminar - June 2009 1 Nestlé Investor Seminar Paul Bulcke Chief Executive Jim Singh Chief Financial Officer

200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

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Page 1: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

Nestlé Investor Seminar - June 2009 Name of chairman1

Nestlé Investor Seminar

Paul BulckeChief Executive

Jim SinghChief Financial

Officer

Page 2: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

Nestlé Investor Seminar - June 2009 Name of chairman2

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.

Page 3: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

Nestlé Investor Seminar - June 2009 Name of chairman3

Nestlé Investor Seminar

Paul BulckeChief Executive

Jim SinghChief Financial

Officer

Page 4: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

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General overview

Current Environment• Various patterns of consumer demand

• Tough competition amongst retailers

• Growth of private label threatening weaker players

• Intense competition for consumers

• Renewed inflationary pressures in raw materials

• Currency volatility, economic challenges

• Opportunities exist

Page 5: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

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General overview

Nestlé's response• Identifying best opportunities for

growth – categories and strategies

• Investing to support profitable growth

• Accelerating innovation/renovation with particular focus on affordability

• Deeper distribution – all the channels

• Accelerating efficiency initiatives

• Continuing to invest in longer term growth opportunities

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Zone Europe

• Q1 trends continue

• Good performances in Soluble coffee, petcare, chocolate

• The challenge is to gain share not just from branded

• Priorities: differentiation, leadership, price competitiveness, winning with customers...

• ... through innovation/renovation, brand investment, efficient supply chain, customised customer activities

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Zone Americas

• USA performing well

• PetCare proving its strong defensive characteristics

• Frozen Food benefiting from stay home diners

• Ready-to-drink beverages & Soluble coffee also strong

• Brazil & Mexico resilient

• Smaller Latin American markets slower – impact of milk, economies

Page 8: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

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• Double digit growth in Mainland China, India & much of Africa

• Japan, exporting economies weaker

• Innovation directed towards affordability and value, including PPP – enabling down-trading consumers to buy Nestlé

• Driving distribution deeper in emerging markets

Zone Asia, Oceania, Africa

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Nestlé Waters

• Western European market unchanged, but share gains in some markets

• Major focus on costs & efficiencies, capital

• 2009: year of consolidation

• North American market showing some improvement, Nestlé achieving share gains

• Nestlé Pure Life growth continues double digit in US and emerging markets – now No.1 in the US

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Nestlé Nutrition

• Infant Nutrition Europe continues tobe tough but signs of improvement

• Gerber performing well in US

• Emerging markets performance is strong in Infant Nutrition

• Healthcare Nutrition trending better following sku rationalisation

• Slight improvement in trends at Jenny Craig

• 2009: to trend better in H2

Page 11: 200906 - Paul Bulcke NIS presentation · Paul Bulcke Chief Executive Jim Singh Chief Financial Officer. 2 Nestlé Investor Seminar - June 2009 Name of chairman Disclaimer This presentation

Nestlé Investor Seminar - June 2009 Name of chairman11October 23, 2008 Press conference, CEO Presentation11

The Roadmap to Value Creation

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Conclusion / Outlook

• The environment is tough, but there are opportunities

• Nestlé is focused on - growth- accelerating efficiencies- EBIT margin

• Guidance reiterated: - “at least approaching 5%”- EBIT margin improvement constant currency

• Performance weighted towards H2

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