2014 Q1 sales confcall

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Slides for the Q1 sales investor call, hosted by CFO Wabn Ling Martello

Slides for the Q1 sales investor call, hosted by CFO Wabn Ling Martello

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  • 1. April 15th, 2014 2014 Q1 Sales Wan Ling Martello Chief Financial Officer 2014 First Quarter Sales
  • 2. April 15th, 2014 2014 Q1 Sales 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. 1
  • 3. April 15th, 2014 2014 Q1 Sales First Quarter Sales 2014 2  Sales of CHF 20.8 bn  Organic Growth +4.2%  Real Internal Growth +2.6%  Strength of Swiss Franc impacted sales by -8.6%  All geographies contributed to positive growth  Outlook confirmed: Performance weighted to the second half, outperforming the market, with organic growth around 5%, and improvements in margins, underlying earnings per share in constant currencies and capital efficiency
  • 4. April 15th, 2014 2014 Q1 Sales Regional Growth 1.5 2.0 4.3 0.3 4.6 7.3 Europe Americas Asia, Oceania and Africa 3 5.9 8.6 6.4Sales* CHF bn * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc % RIG  Growth in all three regions  Developed markets +0.6% OG  Emerging markets +8.5% OG % OG
  • 5. April 15th, 2014 2014 Q1 Sales Zone Americas 4 Sales CHF 6.0 bn OG +4.1% RIG +0.9%  North America – Growth driven by innovation – Subdued environment – PetCare remains a highlight  Latin America – PetCare and Ambient Dairy growth momentum continued – Coffee accelerated, Mexico the highlight – Brazil double digit growth in most categories – Impacted by Easter timing
  • 6. April 15th, 2014 2014 Q1 Sales Zone Europe 5 Sales CHF 3.5 bn OG -0.8% RIG +0.7%  Western Europe – Slow start to the year in France, Germany and UK impacted by the late Easter – Spain and Portugal delivered positive growth – Nescafé Dolce Gusto, PetCare, Ice Cream and Frozen Pizza were highlights  Eastern Europe – Continued growth in Russia – Impact of political and economic environment in other countries
  • 7. April 15th, 2014 2014 Q1 Sales Zone AOA 6 Sales CHF 4.4 bn OG +5.3% RIG +2.9%  Emerging markets – Good growth in the Philippines, Middle East and Africa – Slow growth in China and India – Highlights were Milo, Nescafé and KitKat  Developed markets – Good performance in Japan, slower in Oceania
  • 8. April 15th, 2014 2014 Q1 Sales Nestlé Waters 7 Sales CHF 1.6 bn OG +6.2% RIG +8.1%  Global category growth  Developed markets grew in all segments: – Premium International brands – Regional spring waters – Nestlé Pure Life  Emerging market growth accelerated – Nestlé Pure Life and strong local brands were highlights
  • 9. April 15th, 2014 2014 Q1 Sales Nestlé Nutrition 8 Sales CHF 2.3 bn OG +6.4% RIG +2.2%  Slower growth partly due to difficult comparisons  Emerging markets remained the drivers of growth  Highlights included China and the Middle East  Flagship brands drove infant formula growth – NAN – Lactogen – Illuma
  • 10. April 15th, 2014 2014 Q1 Sales Other 9 Nespresso  Strong growth momentum maintained in all markets  Line extensions, geographic expansion and the revolutionary VertuoLine system in North America Sales CHF 2.9 bn OG +6.4% RIG +5.3% Nestlé Professional  Highlights included the Middle East, Russia and a recovery in China  Soft OOH environment in developed markets Nestlé Health Science  Good start to the year across all regions and businesses
  • 11. April 15th, 2014 2014 Q1 Sales Products 5.3 2.6 -1.9 -3.3 4.7 5.3 7.9 -1.8 -0.5 5.4 % RIG % OG Prepared Dishes & Cooking Aids PetCareConfectioneryMilk Products & Ice Cream Powdered & Liquid Beverages 3.1 2.72.23.84.8Sales CHF bn rounded 10
  • 12. April 15th, 2014 2014 Q1 Sales Summary 11  Solid organic growth in a tough trading environment  Both Developed and Emerging Markets positive  Execution of the Nestlé Roadmap  Full-year outlook unchanged: Performance weighted to the second half, outperforming the market, with organic growth around 5%, and improvements in margins, underlying earnings per share in constant currencies and capital efficiency
  • 13. April 15th, 2014 2014 Q1 Sales12 2014 First Quarter Sales Discussion
  • 14. April 15th, 2014 2014 Q1 Sales Appendix 13
  • 15. April 15th, 2014 2014 Q1 Sales Currency Overview Weighted Average Exchange Rates CHF per Q1 2013 Q1 2014 (%) US Dollar (1) 0.93 0.89 -4.2 Euro (1) 1.23 1.22 -0.5 £ Sterling (1) 1.44 1.48 +2.5 Real (100) 46.88 37.76 -19.5 Mex. Peso (100) 7.37 6.75 -8.4 Yen (100) 1.01 0.87 -13.6 14
  • 16. April 15th, 2014 2014 Q1 Sales Fx Impact (%) Q1 2014 Zone Americas -12.5% Zone Europe -2.5% Zone AOA -10.1% Nestlé Waters -5.8% Nestlé Nutrition -10.0% Other -5.7% Total -8.6% 15