Nestlé in AOA:Winning in theNew RealityNandu NandkishoreExecutive Vice PresidentZone AOANestlé Investor Seminar, ShanghaiS...
2012 : The Year of the Dragon                                                                    The Dragon symbolizes pr...
Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance2   September 25th, 2012   Nestlé Investor Seminar...
The size and diversity of Zone AOA is a very bigopportunity for Nestlé  3 Continents  18 Markets / 166 countries*  153 Fac...
China has the size of a continent, with provincial GDP at the level of developing or developed countries*China 20% of Worl...
Zone AOA represents 76% of world’s population        7 of the top 10 most populous countries are from Zone AOA            ...
Most population growth will comes from AOA                                                               Source : CIA Worl...
Zone AOA has the fastest greying population    Top 6 Today (Population aged 80+)                            2050       Ch...
Historically, China and India were the world’s largesteconomies…..                                                        ...
Top 10 Economies by 2050 : 6 countries from Zone AOA           2000                         2010                    2020  ...
GDP Growth 2010 - 2050 :Top countries are all from Zone AOA                    Top 10 countries by GDP* Growth            ...
ASEAN Opportunity: world’s largest free trade area                                                                A common...
Over half of population in Asia will be urbanizedby 2020 and in Africa by 2035                     Percentage of Populatio...
17 of the World’s 27 Megacities are in Zone AOA andthe top 5 Megacities are in Zone AOA as wellTop 5 Megacities are from A...
Ascent of the Roaring Giant : Africa                                                                2.3 Trillion          ...
Africa’s workforce expected to be the largest by 2035 Size of the working-age population (Million)                        ...
Halal Opportunity:Majority of population with Halal dietary needs in AOA                                                  ...
Zone AOA has the Highest Prevalenceof Vitamin & Mineral Deficiency                                      Accumulative Miner...
Digital Opportunity: AOA makes up 50% of Internet population(China the largest)Source : iResearch, Strangeloops,  18    Se...
500 million mobile phones in Africa in 2011850 million expected by 2015                                                   ...
The world will see strong population growth at lowerand upper income levels                               8000            ...
The Dynamics and Strengths of Local Competition     WAHAHA      TINGYI                                                    ...
Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance22   September 25th, 2012   Nestlé Investor Semina...
Vision AOA : Be the Growth Engine for the Future Capital Investments:  CHF 5 billion last 5 years Invest in R&D resource...
Grasping the HOT ZONE opportunity      Packaged Food &Beverage per Capita in $                     HOT ZONE               ...
The “Big 5” in the Hot Zone :Investing & Leading the trends                 China                            South Asia   ...
The Nestlé Strategic Roadmap toWin in The New Reality26   September 25th, 2012   Nestlé Investor Seminar, Shanghai
Nestlé in Zone AOA :                                                                                                      ...
Multi-tier strategy with the right product portfolio                                 Unmatched                            ...
75 Halal Certified Factories Worldwide                                             Unmatched                              ...
7 Research Sites in Zone AOA                                                                                 Unmatched    ...
Global Innovation Roll-out:                                                                                       Premiumi...
Local Innovation Roll-out from Thailand:                                                                    InnovationNest...
MILO in one Zone AOA :                                                          Consumer                                  ...
34   September 25th, 2012   Nestlé Investor Seminar, Shanghai
PPP (Popularly Positioned Products):                                          Nutrition,                                  ...
36   September 25th, 2012   Nestlé Investor Seminar, Shanghai
Nutrition in AOA : 2011 Highlights                                         Nutrition,                                     ...
Ageing Population Opportunity:                                                                                            ...
Out-of-home Opportunity in AOA:                                                                             Out-of-home   ...
Our brand availability                                          Whenever,                                                 ...
E-Commerce : Combined with Entertainment and                                             Whenever,                        ...
Our Regional Procurement and Manufacturing in                                              OperationalASEAN               ...
Nestlé Continuous Excellence (NCE)                                                   Operationalplays a very important rol...
Creating Shared Value                                                 “For a company to be successful over                ...
Based on 300+ (60+ in AOA) partnerships withgovernments, NGOs, universities45   September 25th, 2012   Nestlé Investor Sem...
Responsible Dairy Farming:Dairy District Model 2011                                                                Dairy D...
Responsible coffee farming:The Nescafé Plan 2011                                                                NESCAFÉ Pl...
48   September 25th, 2012   Nestlé Investor Seminar, Shanghai
Responsible Cocoa Farming:Nestlé Cocoa Plan 2011                                                                Cocoa Plan...
Over 570’000 persons earn their living from Nestlé                                                                        ...
Interchange of cultures, ideas & best practices                                                 People,                   ...
Zone “                                          ” : Manageing in turbulent times                                   HIV / A...
Competitive Intensity: The Way We Work                                                                        People,     ...
Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance54   September 25th, 2012   Nestlé Investor Semina...
Nestlé in AOA : Balanced portfolio and growing                                       3.3% 3.3%                            ...
2011 Full Year performance by geography                                                                 EUR   Sales : CHF ...
2012 1H performance by geography                                                                 EUR   Sales : CHF 12.7B  ...
AOA is increasing its contribution to Nestlé Group                                         Share of AOA as % of Total Nest...
Working Capital Long-term Trend (Z-AOA)                            2007                          2008             2009    ...
Competition Landscape                                              Top 10 Food Companies in AOA                           ...
Conclusion61   September 25th, 2012   Nestlé Investor Seminar, Shanghai
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New reality winning in Zone AOA

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New reality winning in Zone AOA

  1. 1. Nestlé in AOA:Winning in theNew RealityNandu NandkishoreExecutive Vice PresidentZone AOANestlé Investor Seminar, ShanghaiSeptember 25th, 2012
  2. 2. 2012 : The Year of the Dragon  The Dragon symbolizes prosperity, power and longevity  Auspicious for : o New Businesses o Marriage o Children (Dragon Baby Boom) Example : Taiwan1 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  3. 3. Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance2 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  4. 4. The size and diversity of Zone AOA is a very bigopportunity for Nestlé 3 Continents 18 Markets / 166 countries* 153 Factories** 15 Time zones Innumerable languages 76% of World’s population All Major religions Variety of cuisines / tastes GDP: about 50% of world****Source: UN Statistical Division**115 Active incl (+ 3 satellite factories) NN, NP, NPP, CPW; 27 NW; 8 Under Construction***Source: IMF 3 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  5. 5. China has the size of a continent, with provincial GDP at the level of developing or developed countries*China 20% of World’s Population but only 7% of World’s Agricultural Resources Sources: The Economist , Economist Intelligence Unit, CEIC, WTO 4 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  6. 6. Zone AOA represents 76% of world’s population 7 of the top 10 most populous countries are from Zone AOA #3: USA #9: Russia #1: China (1.3 bn) (310 m) (143 m) #10: Japan (127 m) #7: Nigeria (158 m) #4: Indonesia (240 m) #5: Brazil (195 m) #2: India (1.2 bn) #6: Pakistan (174 m) #8: Bangladesh (149 m) Source:   United Nations Population Division, 2010 Revision5 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  7. 7. Most population growth will comes from AOA Source : CIA World Factbook 20086 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  8. 8. Zone AOA has the fastest greying population Top 6 Today (Population aged 80+) 2050  China (12 million) 99 million  USA (9 million) 30 million  India (6 million) 48 million  Japan (5 million) 17 million  Germany (3 million) -  Russian Federation (3 million) - Source : http://www.un.org/esa/population/publications/worldageing19502050/pdf/90chapteriv.pdf7 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  9. 9. Historically, China and India were the world’s largesteconomies….. Percentage of World GDP (last 1000 years) Sources: Angus Maddison (1000-1950), IMF (1980-2012)100%90% All other countries 22%80% Latin70% America 8%60% USA 22%50%40% Western Europe 23%30% Japan 8%20% Africa 3% India 2%10% China 11% 0% 1000 1500 1600 1700 1820 1870 1900 1950 1980 2012 8 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  10. 10. Top 10 Economies by 2050 : 6 countries from Zone AOA 2000 2010 2020 2030 2040 2050 USA ChinaJapan IndiaGermany USA UK Indonesia France NigeriaChina Brazil Italy Russia Canada Japan Spain PhilippinesBrazil UK Source: IMF, citigroup9 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  11. 11. GDP Growth 2010 - 2050 :Top countries are all from Zone AOA Top 10 countries by GDP* Growth Bottom 10 countries by GDP* Growth (% YoY) : 2010 – 2050 (% YoY) : 2010 – 2050 Nigeria 8.5% Spain 2.0% India 8.0% France 2.0% Iraq 7.7% Sweden 1.9%Bangladesh 7.5% Belgium 1.9% Vietnam 7.5% Switzerland 1.9%Philippines 7.3% Austria 1.8% Mongolia 6.9% Netherlands 1.7% Indonesia 6.8% Italy 1.7% Sri Lanka 6.6% Germany 1.6% Egypt 6.4% Japan 1.0% Source: citigroup (2010-2050) * GDP measured in 2010 purchasing-power-parity USD10 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  12. 12. ASEAN Opportunity: world’s largest free trade area A common market for 3 billion people11 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  13. 13. Over half of population in Asia will be urbanizedby 2020 and in Africa by 2035 Percentage of Population Residing in Urban Areas 71.7 73 70.7 70.9 67.2 62.4 61.7 64.4 57.8 51.6 50.5 57.7 44.4 World 43.2 50.1 Asia 29.4 39.2 Oceania 17.5 Africa 14.41950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Sources: United Nations, Department of Economic and Social Affairs, Population Division12 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  14. 14. 17 of the World’s 27 Megacities are in Zone AOA andthe top 5 Megacities are in Zone AOA as wellTop 5 Megacities are from Asia :  Tokyo (34.5m)  Guangzhou (25.8m) Tokyo  Jakarta (25.3m)  Seoul (25.3m)  Shanghai (25.3m) GuangzhouFastest-growing Megacities are from AOA :  Karachi, Delhi, Dhaka, Guangzhou, Lagos JakartaChallenges :  Slums (1 bn. currently), homelessness, traffic congestion, air pollution, unemployment, crime Seoul13 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  15. 15. Ascent of the Roaring Giant : Africa 2.3 Trillion 202014 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  16. 16. Africa’s workforce expected to be the largest by 2035 Size of the working-age population (Million) Population of Africa (Jan 2011) = 1.02 bn Source:   McKinsey Global Institute15 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  17. 17. Halal Opportunity:Majority of population with Halal dietary needs in AOA  Majority of 1.5 billion Muslims live in AOA  Halal16 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  18. 18. Zone AOA has the Highest Prevalenceof Vitamin & Mineral Deficiency Accumulative Mineral and Vitamin Deficiency http://maplecroft.com/portfolio/mapping/maplecroft/17 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  19. 19. Digital Opportunity: AOA makes up 50% of Internet population(China the largest)Source : iResearch, Strangeloops, 18 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  20. 20. 500 million mobile phones in Africa in 2011850 million expected by 2015 * China is currently the No.1 Mobile Phone market with 750 million phones http://www.penn-olson.com/wp-content/uploads/2011/06/china-social-media-landscape.jpg19 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  21. 21. The world will see strong population growth at lowerand upper income levels 8000 +400 m 7000 1069 Premium Opportunity 657Number of persons, millions 6000 254 311 347 396 544 207 5000 367 1555 +1 bn 4000 2460 3441 Emerging Consumer 3000 Opportunity 2000 3402 >30,000 2897 22,000-30,000 1000 1914 14,000-22,000 3,000-14,000 0 < 3,000 1998 1 2008 2 2018 3 Sources: UN WIDER and World Bank (also for outlook on ecenomic growth 2008-2018): analysis Nestlé EIR20 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  22. 22. The Dynamics and Strengths of Local Competition WAHAHA TINGYI F&N MENGNIU YILI21 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  23. 23. Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance22 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  24. 24. Vision AOA : Be the Growth Engine for the Future Capital Investments: CHF 5 billion last 5 years Invest in R&D resources, People, Brand Investment, GLOBE Support for Emerging Markets AOA must lead the trends and act as pilots/incubators : Premium, NHW (Micronutrient deficiencies, Obesity, Ageing), Local Innovations, Sustainability, Environment, Digital, etc.23 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  25. 25. Grasping the HOT ZONE opportunity Packaged Food &Beverage per Capita in $ HOT ZONE COOL ZONE 3500 Japan Increased Prosperity 3000 Increased Urbanisation Oceania Increased Competition 2500 2000 Israel 1500 WARM 1000 South Africa Turkey South Korea ZONE 500 Maghreb NME Malaysia Philippines CGR CWAR Indochina SAR NEAR EAR Pakistan Indonesia GDP at PPP 0 0 5000 10000 15000 20000 25000 30000 35000 per Capita in $ 24 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  26. 26. The “Big 5” in the Hot Zone :Investing & Leading the trends China South Asia ASEAN Africa Middle East Challenges • Local players • Aggressive competition • Agressive competition • People • Political instability • Food safety focus • Local Sourcing • Competition for talent • Resources • Securing supplies • Invest in people & capacity • Build distribution • PPP opportunity • Local Raw / Packaging • Multi-tier offer • Innovation / Renovation • Innovation / Renovation • AFTA trade opportunity Strategies Accelerate PPP & CSV Defend and build brands Invest ahead of Demand Build Distribution OOH Price Point Management Premiumisation People NHW External Growth25 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  27. 27. The Nestlé Strategic Roadmap toWin in The New Reality26 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  28. 28. Nestlé in Zone AOA : Unmatched geographic Established Presence and Rich in History presenceNote : Dates based on Registration of Local Nestle Office and not registration of Nestle Brand trademark/ Distributor partnerships. 27 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  29. 29. Multi-tier strategy with the right product portfolio Unmatched product and brand portfolio Premium Mainstream PPP Bottom of the Pyramid28 Nandu Nandkishore Zone AOA Presentation: Nestlé Investor Seminar, Shanghai
  30. 30. 75 Halal Certified Factories Worldwide Unmatched product Whenever, wherever,with majority in Zone AOA and brand portfolio however  Strict Company Halal Policy  Nestlé Malaysia created the Halal Centre of Excellence  Estimated Halal Food Market Value at 600bn USD  Wide range of Nestlé products catering to Halal dietary needs29 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  31. 31. 7 Research Sites in Zone AOA Unmatched research & development capability R&D Beijing + NRC R&D Sderot NRC Tokyo R&D India R&D Shanghai R&D Abidjan R&D Singapore30 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  32. 32. Global Innovation Roll-out: Premiumization InnovationPremiumization with NESCAFE Dolce Gusto & renovation Launched in 10 markets: National City Focus E-Commerce Japan ◎ ◎ S. Korea ◎ ◎ Espresso Cappuccino Taiwan ◎ ◎ Singapore ◎ ◎ Hong Kong ◎ Malaysia ◎ ◎ Mocha Cappuccino Ice Philippines ◎ UAE ◎ Qatar ◎ Kuwait ◎ Chai Tea Latte Macha Latte31 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  33. 33. Local Innovation Roll-out from Thailand: InnovationNestlé Peelable Ice Cream & renovation  Launched in Thailand : May 2010, in conjunction with the Eat Smart, Play Hard campaign, endorsed by the Thai Ministry of Public Health  In 25 countries today :  Z-AOA : 8 countries  Z-AMS: 4 countries  Z-EUR: 13 countries32 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  34. 34. MILO in one Zone AOA : Consumer Unmatched productConsistency and Coherence Over Time communication and brand portfolio  Winning Formula  Holistic Proposition  PPP Focus  Grassroot Sports & Sampling33 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  35. 35. 34 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  36. 36. PPP (Popularly Positioned Products): Nutrition, Emerging markets andAffordable Nutrition and Pleasure for Emerging Consumers Health and Wellness Popularly Positioned Products Fortified: Price:  Iron  PHP 23*  Zinc (80g / 3 glasses)  Iodine  Vitamin A, C *Approx CHF 0.535 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  37. 37. 36 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  38. 38. Nutrition in AOA : 2011 Highlights Nutrition, Health and Emerging markets and Popularly Wellness Positioned Products• 91 billion servings fortified with key micronutrients• Affordable fortified milks now available in more than 60 countries• 1,460 Popularly Positioned Products• Products continuously renovated for nutrition or health considerations, reducing salt, fat and sugar levels• Start Healthy Stay Healthy Promotes the early establishment of healthy eating habits• Nestlé Healthy Kids programmes run in partnership with governments, academia, and NGOs in over 20 countries reaching approx. 800,000 children. Product Innovation and renovation37 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  39. 39. Ageing Population Opportunity: Nutrition, Health andNutrition, Health and Wellness Wellness Nestlé Senior Milk Powders (China) Nestlé Nutrition Pempal Active (Japan) Product Description Product Description •Specialized Senior nutrition addressing key health benefits •Target : Elderly with Sarcopenia* or at the risk of (Heart, bone, optimal nutrition). Sarcopenia •Achieving strong growth and accretive MC/OP1 to the group. •Nutrition : Protein 10g Vitamin D 12.5μg Consumer Insight Calcium 300mg •“ Stay healthy and active, enables me to lead a full, golden life” •Package : 200kcal/125ml •Price : 245 JPY (CHF 3) *degenerative loss of skeletal muscle mass and strength associated with ageing38 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  40. 40. Out-of-home Opportunity in AOA: Out-of-home consumption “Creative Food & Beverage Solutions - Making More Possible for our Customers” • Geographic and Channel expansion • Dedicated Unique RTM • Solutions Based Selling • Tailor-made solutions for operators39 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  41. 41. Our brand availability Whenever, wherever,Whenever, wherever, however however40 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  42. 42. E-Commerce : Combined with Entertainment and Whenever, ConsumerConsumer Relationship Marketing (Japan) wherever, however communication  Coffee Systems, Coffee, Coffee Creamers, Confectionery, Food, Pet Food, Nestlé Nutrition, Nestlé Professional  TV Shopping  Approx. 10% Sales Contribution by 202041 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  43. 43. Our Regional Procurement and Manufacturing in OperationalASEAN efficiency 2/3 Raw & Pack Material Regionally Sourced • Coffee • Paper • Cocoa • Pulp • Palm Oil • etc. • Milk Regionally Manufactured • Soluble Coffee • Dairy • Creamer • Cereals • Malt • etc.42 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  44. 44. Nestlé Continuous Excellence (NCE) Operationalplays a very important role in AOA efficiency NCE : 100% factories 100% market supply chains NCE beyond Operations 60% Finance 30% Sales 20% HR43 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  45. 45. Creating Shared Value “For a company to be successful over time and create value for shareholders, it must also create value for society. ” P. Brabeck-Letmathe P. Bulcke Chairman – Nestlé S.A. CEO – Nestlé S.A.44 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  46. 46. Based on 300+ (60+ in AOA) partnerships withgovernments, NGOs, universities45 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  47. 47. Responsible Dairy Farming:Dairy District Model 2011 Dairy District Farmers •Global: 422,700 farmers (52% of our global fresh milk supply) •AOA: 375,000 farmers (35% of our AOA fresh milk supply) Training and Assistance •Global: 126,000 farmers •AOA: 98,500 farmers46 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  48. 48. Responsible coffee farming:The Nescafé Plan 2011 NESCAFÉ Plan Farmers •Global: 170,000 farmers (11% of our global green coffee supply) •AOA: 17,000 farmers (10% of our AOA green coffee supply) Training and Assistance •Global: +16,000 farmers •AOA: +12,000 farmers47 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  49. 49. 48 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  50. 50. Responsible Cocoa Farming:Nestlé Cocoa Plan 2011 Cocoa Plan Farmers •Global: 31,500 farmers (6% of our global cocoa supply) •AOA: 27,000 farmers (35% of our AOA cocoa supply) Training and Assistance •Global: 19,100 farmers •AOA: +16,000 farmers49 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  51. 51. Over 570’000 persons earn their living from Nestlé …and more households 104’000 + 466’000 Nestlé Farmers, employees Sales & Distributors Staff, Third party dependants (drivers, security, agencies…)50 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  52. 52. Interchange of cultures, ideas & best practices People, culture, values & attitude Asia Africa and In-Patriates: 353 Ex-Patriates: 207 Middle East In-Patriates: 256 Ex-Patriates: 106 Oceania In-Patriates: 48 Ex-Patriates: 5751 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  53. 53. Zone “ ” : Manageing in turbulent times HIV / AIDS Forex Tsunamis Volatility Bali Bombing Asian Financial Crisis Sept 11 ‘RED SHIRTS’ Fukushima Nuclear VOLATILE Input Bangkok Plant Israel / Palestine Costs (MSK, Coffee) Floods & Droughts tensions War in Iraq Earthquakes Arab Spring Myanmar , Philippines Cyclone/ Infiltration, Typhoon Counterfeit Obesity Zimbabwe Milk Crisis China Ivory Coast Trade Reform Melamine SARS, Avian Labour Laws Incident Flu North Korea52 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  54. 54. Competitive Intensity: The Way We Work People, culture, values & attitude1. We promote SAFE working behaviour 6. We Create Shared Value in the communities2. We put the Consumer and Customer at the we operate Heart of all we do 7. We are transparent, disciplined and aligned3. We believe our People and Brands are our 8. We are flexible and anticipate the unexpected Greatest Assets 9. We believe in seizing opportunities in4. We focus and keep things simple, with an moments of crisis emphasis on Speed in Execution 10. We promise what we can deliver and deliver5. We strive to be Brilliant at the Basics what we promise53 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  55. 55. Agenda1. Introducing Zone AOA2. Winning in The New Reality3. Performance54 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  56. 56. Nestlé in AOA : Balanced portfolio and growing 3.3% 3.3% 3.8% Powdered and Liquid Beverages Milk products and Ice cream 7.0% 26.1% Prepared dishes and cooking aids2011 FYSales: 8.2% Nutrition and Healthcare (a)CHF 20B Confectionery 11.5% Nestlé Professional 24.8% Nestlé Waters 11.9% PetCare Others (a) Includes Pharmaceutical products, previously disclosed separately55 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  57. 57. 2011 Full Year performance by geography EUR Sales : CHF 26.2B OG : 5.0% 31% AOA AMS 24% 45% Sales : CHF 20.0B OG : 13.1% Sales : CHF 37.4B OG : 6.4%56 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  58. 58. 2012 1H performance by geography EUR Sales : CHF 12.7B OG : 2.6% 29% AOA AMS 28% 44% Sales : CHF 12.2B OG : 12.6% Sales : CHF 19.2B OG : 6.4%57 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  59. 59. AOA is increasing its contribution to Nestlé Group Share of AOA as % of Total Nestlé Group 30% 27% 24% Sales AOA* Sales Zone AOA 21% TOP Zone AOA 18% 15% 2010 2011 H1 2012 * includes sales in AOA of GMBs as well as Zone AOA58 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  60. 60. Working Capital Long-term Trend (Z-AOA) 2007 2008 2009 2010 2011 TNWC as % of sales (indexed 2007 = 100)59 September 25th, 2012 Nestlé Investor Seminar, Shanghai
  61. 61. Competition Landscape Top 10 Food Companies in AOA Source : Euromonitor 2011* - Sales at Retail Price in m USD Japan PRC Taiwan PRC Japan PRC TING HSIN MENGNIU YILI * Packaged Food, Pet Care, Hot drinks – Not an exclusive list of Companies, indicative.
  62. 62. Conclusion61 September 25th, 2012 Nestlé Investor Seminar, Shanghai
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