Upload
incubusyeah
View
232
Download
0
Embed Size (px)
Citation preview
8/12/2019 Cpw Jun2005 Friendly
1/42
Cereal Partners Worldwide:A World of Opportunity
Nestl Investor Seminar
Vevey, Switzerland
8 June 2005
Ian Friendly
President & CEO
8/12/2019 Cpw Jun2005 Friendly
2/42
2
This presentation contains forward looking statements
which reflect Managements current views and
estimates. The forward looking statements involve
certain risks and uncertainties that could cause actualresults 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.
Disclaimer
8/12/2019 Cpw Jun2005 Friendly
3/42
8/12/2019 Cpw Jun2005 Friendly
4/42
4
The Past
8/12/2019 Cpw Jun2005 Friendly
5/42
5
Nestl + General Mills = A Winning Combination
Established in 1990
50/50 ownership
Separate legal entity
Headquarters in Switzerland
Global scope (excluding U.S. and Canada)
Sales in more than 130 markets
8/12/2019 Cpw Jun2005 Friendly
6/42
6
General Mills
Proven cereal marketingexpertise
Technical excellence in
products and processes
Broad portfolio of
successful brands
Nestl
World's largest foodcompany
Strong worldwide
organization
Deep market and
distribution knowledge
Each partner brings distinct strengths
8/12/2019 Cpw Jun2005 Friendly
7/42
7
1990 2005
1991
CPW launched in
U.K., SW Europe
1992
Entered Mexico
1997
Entered Russia
1998
Became profitable
2002
Entered China
2003
Entered Australia
Key milestones in CPW's history
1994
Entered Poland,
South America
1993
Entered SE Asia
8/12/2019 Cpw Jun2005 Friendly
8/42
8
CPW is in 6 continents, but white space remains
General Mills
CPW markets
CPW plants
8/12/2019 Cpw Jun2005 Friendly
9/42
8/12/2019 Cpw Jun2005 Friendly
10/42
10
11.7 billion Euros total
+2% vs. 2003
2004 Global Cereal Market (Value)
Rest of World
48% of total
+4% vs. 2003
U.S. / Canada
52% of total
0% vs. 2003
Cereal is a large and growing category
Note: ROW includes active CPW markets plus South Korea. Source: AC Nielsen, IRI.
8/12/2019 Cpw Jun2005 Friendly
11/42
11
4%824Latin America
14%447Australia / NZ
10%65Southeast Asia
11%193Eastern Europe
3%2,372Western Europe
3%1,654United Kingdom
+/- 20032004 Value(000) Euros
Note: active CPW markets. Source: AC Nielsen, IRI.
Category growth spans all major regions
8/12/2019 Cpw Jun2005 Friendly
12/42
12
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Metric Tons
+7%
CPW volume has grown steadily from the start
21% CAGR 8% CAGR
8/12/2019 Cpw Jun2005 Friendly
13/42
13
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
EBITA
EBITA has grown since achieving profit in 1998...
8/12/2019 Cpw Jun2005 Friendly
14/42
14
100
200
300
400
500
1999 2000 2001 2002 2003 2004
EBITA% index vs. 1998
...and profit margins have expanded steadily
8/12/2019 Cpw Jun2005 Friendly
15/42
8/12/2019 Cpw Jun2005 Friendly
16/42
16
7%
4%
0%
2%
4%
6%
8%
Total Cereal CPW
Value Growth
In 2004, CPW growth outpaced the category...
Note: active CPW markets plus South Korea. Source: AC Nielsen, IRI.
8/12/2019 Cpw Jun2005 Friendly
17/42
17
21.9
0
5
10
15
20
25
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Volume Share
...resulting in share gains for the 13th straight year
Note: active CPW markets, adjusted for trend. Source: AC Nielsen and IRI, adjusted to coverage, plus estimation.
8/12/2019 Cpw Jun2005 Friendly
18/42
18
2004 Global Market Share (Value)
Other
17%
CPW
25%
Private Label
15%
Global Leader
43%
CPW +0.5 share point vs. 2003
CPW is a strong #2 and closing the gap
Note: active CPW markets (traditional cereal), excluding new entries. Source: AC Nielsen, IRI.
8/12/2019 Cpw Jun2005 Friendly
19/42
19
3%2%
17%
12%
10%
2%
7%
1%
7%
1%
-9%
1%
10%
1%
UK France Italy Spain Portugal Germany Mexico
2004 Value Growth
CPW
Key Competitor
CPW outpaced the global leader in major markets
Source: AC Nielsen, IRI.
8/12/2019 Cpw Jun2005 Friendly
20/42
20
78Poland
49Saudi Arabia
39Greece
57Southeast Asia
54Portugal
56Chile
58East/Cent Europe
74Turkey
82China
2004 Value ShareMarket Leader
CPW leads in some markets, solid #2 in others
Source: AC Nielsen, IRI.
25Italy
24France
17Mexico
25United Kingdom
2004 Value ShareSolid #2
8/12/2019 Cpw Jun2005 Friendly
21/42
21
The Future
8/12/2019 Cpw Jun2005 Friendly
22/42
22
Continued category growth
Continued share gains
Continued margin acceleration
Long-term outlook
8/12/2019 Cpw Jun2005 Friendly
23/42
23
Growth of low-price retail formats
innovation and quality are critical
value-added brands via consumer insights
Health and nutrition issues
criticism of cereal is misplaced
health and nutrition are key to category growth
Risks
8/12/2019 Cpw Jun2005 Friendly
24/42
24
A World of Opportunity
Per capita
consumption
Source: www.geographic.org, used with permission.
8/12/2019 Cpw Jun2005 Friendly
25/42
25
0.10 0.040.060
2
4
6
U.K. Australia SW Europe Mexico Brazil SE Asia Russia
KGper person
Per capita consumption is still low in most markets
Note: active CPW markets. Source: AC Nielsen, IRI, U.S. Census Bureau.
8/12/2019 Cpw Jun2005 Friendly
26/42
26
A World of Opportunity
Per capita
consumption
Well-positioned
infrastructure
8/12/2019 Cpw Jun2005 Friendly
27/42
27
China
Indonesia
Brazil
Russia
Mexico
...have 31% of the
world's population...
...but only 11% of the
world's cereal consumption.
CPW's 5 most
populous markets...
Nestl provides a gateway into emerging markets
Source: AC Nielsen, IRI, U.S. Census Bureau.
8/12/2019 Cpw Jun2005 Friendly
28/42
28
A World of Opportunity
Per capita
consumption
Well-positioned
infrastructure
Accelerating
margins
8/12/2019 Cpw Jun2005 Friendly
29/42
29
Global advertising
creative ideas that travel well
Media purchasing
participation in Nestl media review
Promotion synergy
bundling markets; partnering with General Mills
Committed sales force
selling in combination with Nestl
Efficiencies extend to the marketing plan
8/12/2019 Cpw Jun2005 Friendly
30/42
30
A World of Opportunity
Per capita
consumption
Well-positioned
infrastructure
Accelerating
margins
Focus on
brand-building
8/12/2019 Cpw Jun2005 Friendly
31/42
31
Deliver health news on all brands
Strengthen and globalize core brands
Execute geographic and channel expansion
Introduce innovative new products
Consumer-focused growth strategies
8/12/2019 Cpw Jun2005 Friendly
32/42
32
Starting in 2005, all Nestle breakfast cereals will have whole grain
Scientifically proven to reduce risk of cancer, diabetes, heart disease
Health & Nutrition: Whole Grain
FranceUK
8/12/2019 Cpw Jun2005 Friendly
33/42
33
100% whole grain, no added salt, no added sugar
Health & Nutrition: Shredded Wheat Franchise
Male Target
'Help look after your heart'
Female Target
'100% good for you'
8/12/2019 Cpw Jun2005 Friendly
34/42
34
School Fuel: 'Shreddies helps give kidsmental energy to stay involved'
Packed with whole-grain carbohydrates
Health & Nutrition: Shreddies
8/12/2019 Cpw Jun2005 Friendly
35/42
35
'The sensible way to keep your line'
Made with whole grains, low in fat
Health & Nutrition: F itness Franchise
8/12/2019 Cpw Jun2005 Friendly
36/42
36
Strengthening Core Brands: Nesquik & Chocapic
CPW's oldest and biggest brands
13 years of uninterrupted growth
8/12/2019 Cpw Jun2005 Friendly
37/42
37
Instant winner in
Australia; now in N.Z.
Globalizing Brands: Milo & Cheerios
Expanding into Mexico
and Australia
8/12/2019 Cpw Jun2005 Friendly
38/42
38
Real yogurt: live and active cultures
Successful launch in Mexico
Global expansion forthcoming
Innovative New Products: F itness & Yoghur t
8/12/2019 Cpw Jun2005 Friendly
39/42
39
Chokella
France
Germany
Choca M inis
Czech/Slovak
F itness Bars -
Chocolate & PearFrance, U.K.
Innovative New Products: 2005 Launches
Corn F lakes Bars
Poland
Strawberry
M il k Stars
China
8/12/2019 Cpw Jun2005 Friendly
40/42
40
A World of Opportunity
Per capita
consumption
Well-positioned
infrastructure
Focus on
brand-building
Accelerating
margins
8/12/2019 Cpw Jun2005 Friendly
41/42
8/12/2019 Cpw Jun2005 Friendly
42/42
Cereal Partners Worldwide:A World of Opportunity
Nestl Investor Seminar
Vevey, Switzerland
8 June 2005