August 8th, 2013 Half Year Results
2013 Half Year
Results
Wan Ling Martello
Chief Financial Officer
Roddy Child-Villiers
H...
August 8th, 2013 Half Year Results
Disclaimer
This presentation contains forward looking
statements which reflect Manageme...
August 8th, 2013 Half Year Results
2013 Half Year Highlights
 RIG acceleration to 2.7%, all regions contributed
 Trading...
August 8th, 2013 Half Year Results
2013 Half Year Highlights
 Developed markets continued to grow
 Emerging markets up o...
August 8th, 2013 Half Year Results
Operating Segments Growth
1.8 1.5
4.0
1.8
4.3 3.9
0.5
5.0 5.0
2.2
6.5
5.0
% RIG % OG
3....
August 8th, 2013 Half Year Results
Operating Segments Margin Evolution
14.9
17.8 19.1
10.0
20.0 19.2
H1 2012 TOP% H1 2013 ...
August 8th, 2013 Half Year Results
Product Groups Growth
4.6
2.4
-0.6
2.4
3.6
4.7 4.5
-0.2
4.7
7.1
% RIG % OG
Prepared Dis...
August 8th, 2013 Half Year Results
Product Groups Margin Evolution
24.0
15.9
13.5 12.7
19.0
H1 2012 TOP% H1 2013 TOP%
+30 ...
August 8th, 2013 Half Year Results
Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespr...
August 8th, 2013 Half Year Results
Americas
Challenges:
 Ice Cream
 PetCare Speciality & Dog
 Frozen versus Fresh
 Fro...
August 8th, 2013 Half Year Results
Europe
Challenges:
 The Macro situation
 Southern Europe
 Water & Ice Cream
 Nestlé...
August 8th, 2013 Half Year Results
Challenges:
 The Macro situation
 Competitive environment in
some categories
 Nestlé...
August 8th, 2013 Half Year Results
Trading Operating Profit Margin
HY 2012 Other
Revenue
COGS Distribution Marketing Admin...
August 8th, 2013 Half Year Results
Income Statement
As % of sales
June 30
2012*
June 30
2013
Difference in
basis points/%
...
August 8th, 2013 Half Year Results
Operating Cash Flow
14
Operating
Cash Flow…
Operating improvement Variation
of working…...
August 8th, 2013 Half Year Results
1. Group – High Quality Performance
 RIG acceleration
 Margin improvement & increased...
August 8th, 2013 Half Year Results
2. Broad Based Operational Performance
 Americas: Progress on top & bottom line;
inves...
August 8th, 2013 Half Year Results
3. 2013 Outlook
We expect the growth momentum seen in the first half to continue
in the...
August 8th, 2013 Half Year Results18
2013 Half Year
Results
Discussion
August 8th, 2013 Half Year Results
Appendix
19
August 8th, 2013 Half Year Results
Net Debt
18.1
22.2
0.2
6.6
3.1
Net debt
January 1st*
Treasury shares
(net)
Acquisition
...
August 8th, 2013 Half Year Results
Translational Impact of Swiss Franc
Weighted Average Exchange Rates
CHF per 1H 2012 1H ...
August 8th, 2013 Half Year Results
FX Impact on All Businesses
(%) 1Q 2013 1H 2013
Zone Americas -2.6 -2.4
Zone Europe +1....
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H1 2013 results webcast presentation

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H1 2013 results webcast presentation

  1. 1. August 8th, 2013 Half Year Results 2013 Half Year Results Wan Ling Martello Chief Financial Officer Roddy Child-Villiers Head of Investor Relations 0
  2. 2. August 8th, 2013 Half Year Results 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. 3. August 8th, 2013 Half Year Results 2013 Half Year Highlights  RIG acceleration to 2.7%, all regions contributed  Trading operating profit margin +20 bps to 15.1%  Operating cash flow of CHF 5 billion  Input cost environment: reduced pricing but benefit to margin  EPS up 3.4% reported; underlying +7.2% in constant currencies 2
  4. 4. August 8th, 2013 Half Year Results 2013 Half Year Highlights  Developed markets continued to grow  Emerging markets up over 8%  Double digit in Latin America, Russia, parts of AOA Outlook:  We expect the growth momentum seen in the first half to continue in the second half, allowing us for the full year to deliver, in line with our commitments, around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 3
  5. 5. August 8th, 2013 Half Year Results Operating Segments Growth 1.8 1.5 4.0 1.8 4.3 3.9 0.5 5.0 5.0 2.2 6.5 5.0 % RIG % OG 3.79.4 6.05.013.67.5Sales CHF bn rounded 4
  6. 6. August 8th, 2013 Half Year Results Operating Segments Margin Evolution 14.9 17.8 19.1 10.0 20.0 19.2 H1 2012 TOP% H1 2013 TOP% +20 bps +60 bps No change +30 bps -10 bps -60bps 5 TOP = Trading Operating Profit
  7. 7. August 8th, 2013 Half Year Results Product Groups Growth 4.6 2.4 -0.6 2.4 3.6 4.7 4.5 -0.2 4.7 7.1 % RIG % OG Prepared Dishes & Cooking Aids PetCareConfectioneryMilk Products & Ice Cream Powdered & Liquid Beverages 6.9 5.54.68.610.1Sales CHF bn rounded 6
  8. 8. August 8th, 2013 Half Year Results Product Groups Margin Evolution 24.0 15.9 13.5 12.7 19.0 H1 2012 TOP% H1 2013 TOP% +30 bps -110 bps +80 bps +100 bps -120 bps 7 TOP = Trading Operating Profit
  9. 9. August 8th, 2013 Half Year Results Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso and NHSc; OG = Organic Growth, RIG = Real Internal growth Asia, Oceani a & Africa 13.4 bn +6.3% +5.0% Americas 19.4 bn +5.0% +2.1% Europe 12.4 bn +0.6% +1.5% Sales OG RIG (CHF) 8
  10. 10. August 8th, 2013 Half Year Results Americas Challenges:  Ice Cream  PetCare Speciality & Dog  Frozen versus Fresh  Frozen “nutritionals”  Water competitive environment In Latin America  Economic environment  Input costs Positives:  PetCare Growth & Cats, Treats & Litter  Stouffer’s & DiGiorno  Water market growth  Infant Nutrition  Coffee, Chocolate, Coffee-Mate  Key categories in Latin America 9
  11. 11. August 8th, 2013 Half Year Results Europe Challenges:  The Macro situation  Southern Europe  Water & Ice Cream  Nestlé Professional 10 Positives:  Growth & reinvestment  Customer service levels, innovation  Premiumisation, value focused offers  Russia, Germany & Great Britain  PetCare & Coffee  Infant Nutrition
  12. 12. August 8th, 2013 Half Year Results Challenges:  The Macro situation  Competitive environment in some categories  Nestlé Professional in China Asia, Oceania & Africa 11 Positives:  Growth slower, but dynamic  China, South Asia, Indonesia, Malaysia & Singapore  Powdered Beverages & Dairy  Key developed market categories  Nestlé & Wyeth Infant Nutrition  Water
  13. 13. August 8th, 2013 Half Year Results Trading Operating Profit Margin HY 2012 Other Revenue COGS Distribution Marketing Admin. R&D Net Other Trading Expense HY 2013 +100 +110 0 TOP 14.9%* +70 TOP 15.1% +20 bps TOP = Trading Operating Profit -60+10 -10 -300 * 2012 figures fully restated as per IAS 19 and IFRS 11;  Trading Operating Profit margin improves 20 bps to 15.1%  Marketing investment +60 bps  Constant currency consumer facing spend +15% 12
  14. 14. August 8th, 2013 Half Year Results Income Statement As % of sales June 30 2012* June 30 2013 Difference in basis points/% (rounded) Trading operating profit 14.9 15.1 +20 Net other operating income/expense (0.1) (0.2) -10 Operating profit 14.8 14.9 +10 Net financial income/expense (0.8) (0.7) +10 Profit before taxes, associates and JVs 14.0 14.2 +20 Taxes (3.6) (3.9) -30 Share of results of associates and JVs 1.6 1.5 -10 Profit for the period 12.0 11.8 -20 Attributable to non-controlling interests 0.5 0.5 0 Attributable to shareholders of the parent 11.5 11.3 -20 Basic EPS (CHF) as reported 1.55 1.60 +3.4% Underlying EPS (CHF) constant currencies +7.2% * 2012 figures fully restated as per IAS 19 and IFRS 11 13
  15. 15. August 8th, 2013 Half Year Results Operating Cash Flow 14 Operating Cash Flow… Operating improvement Variation of working… Others Operating Cash Flow… 5.2 5.0 + 0.6 - 0.5 - 0.3 - 0.2 in CHF bn (rounded)
  16. 16. August 8th, 2013 Half Year Results 1. Group – High Quality Performance  RIG acceleration  Margin improvement & increased marketing spend  Strong cash flow performance & positive trend in working capital 15
  17. 17. August 8th, 2013 Half Year Results 2. Broad Based Operational Performance  Americas: Progress on top & bottom line; investment for growth  Europe: continued growth & investment for growth  AOA: Driving RIG & improving margin  Infant Nutrition: good growth globally; Wyeth on track  Water: progress in tough season  Nespresso: double digit 16
  18. 18. August 8th, 2013 Half Year Results 3. 2013 Outlook We expect the growth momentum seen in the first half to continue in the second half, allowing us for the full year to deliver, in line with our commitments, around 5% organic growth with an improvement in margins and underlying earnings per share in constant currencies 17
  19. 19. August 8th, 2013 Half Year Results18 2013 Half Year Results Discussion
  20. 20. August 8th, 2013 Half Year Results Appendix 19
  21. 21. August 8th, 2013 Half Year Results Net Debt 18.1 22.2 0.2 6.6 3.1 Net debt January 1st* Treasury shares (net) Acquisition net disposals (incl. Minority) Dividends Exchange rates & other Free Cash Flow Net Debt June 30th + 0.1 -0.5 CHF bn * Net Debt excluding JVs since 1 January 2013 following adoption of IFRS 11 new accounting rules - - - - + 20 ∆4.1bn
  22. 22. August 8th, 2013 Half Year Results Translational Impact of Swiss Franc Weighted Average Exchange Rates CHF per 1H 2012 1H 2013 (%) US Dollar (1) 0.93 0.94 +0.9 Euro (1) 1.20 1.23 +2.1 £ Sterling (1) 1.46 1.44 -1.4 Real (100) 49.90 46.22 -7.4 Mex. Peso (100) 7.01 7.46 +6.4 Yen (100) 1.16 0.98 -15.8 21
  23. 23. August 8th, 2013 Half Year Results FX Impact on All Businesses (%) 1Q 2013 1H 2013 Zone Americas -2.6 -2.4 Zone Europe +1.2 +1.3 Zone AOA -1.0 -1.4 Nestlé Waters +0.9 +0.8 Nestlé Nutrition -1.9 -1.8 Other +0.2 +0.3 Total -0.9 -0.9 22

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