Creating Competitive Gaps Through Manufacturing Mr. José Lopez Executive VP, Operations & GLOBEThese slides differ to thos...
DisclaimerThis presentation contains forward lookingstatements which reflect Management’s currentviews and estimates. The ...
Agenda   MANUFACTURING REVIEW   MANUFACTURING STRATEGY   MANUFACTURING EXCELLENCE2     June 7, 2011   Nestlé Investor S...
We are coming from a long-term commitmentto Operational Excellence…    Performance                                        ...
Increasing Production Volume with fewerFactories                                                                          ...
Achieving Efficiency throughout the wholeValue Chain          Case Fill Rate                                 FreshNes     ...
Improving trend in Finished Goods and Raw& Packaging stock                                                   Stock Value  ...
Contributing to positive trend in WorkingCapital                                             TNWC                         ...
Strong Performance on the major EnvironmentIndicators over the last 10 years…                                             ...
…Whilst driving Excellence in Safety    Lost time injuries [a]           5                     4.8           4            ...
Agenda    MANUFACTURING REVIEW    MANUFACTURING STRATEGY    MANUFACTURING EXCELLENCE10     June 7, 2011   Nestlé Invest...
A unique and unmatched spread of Factoriesaround the World                                                 Europe         ...
Our Manufacturing Footprint…                 Araras – Brazil                           Feira de Santana – Brazil     World...
Brazil – World’s Biggest Soluble Coffee Plant                       Araras                    Leveraging economies of scal...
Switzerland – World’s Biggest Center of CoffeeExcellence           Nespresso – Avenches                      Leveraging ec...
North America – World’s Biggest Water Plant                  Hollis Maine                                                 ...
China – World’s Biggest Culinary Factory                                                     Newly launched product       ...
Producing closer to our Consumers andlocalising Opportunity                                                               ...
This Manufacturing Strategy supports our ROIC                                                            36.1%            ...
Agenda    MANUFACTURING REVIEW    MANUFACTURING STRATEGY    MANUFACTURING EXCELLENCE19     June 7, 2011   Nestlé Invest...
Summary Nestlé has delivered significant improvements in operational     efficiency over many years Our Manufacturing St...
June J. Lopez 21 7, 2011     Nestlé Investor Seminar
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NIS 2011 competitive gaps through manufacturing José Lopez

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Creating competitive gaps through manufacturing, José Lopez, EVP Operations and GLOBE, Nestlé Investor Seminar June 7 2011

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NIS 2011 competitive gaps through manufacturing José Lopez

  1. 1. Creating Competitive Gaps Through Manufacturing Mr. José Lopez Executive VP, Operations & GLOBEThese slides differ to those shown at the Nestlé Investor Seminar 2011 June 7, 2011 Nestlé Investor Seminar
  2. 2. DisclaimerThis presentation contains forward lookingstatements which reflect Management’s currentviews and estimates. The forward lookingstatements involve certain risks and uncertaintiesthat could cause actual results to differ materiallyfrom those contained in the forward lookingstatements. Potential risks and uncertaintiesinclude such factors as general economicconditions, foreign exchange fluctuations,competitive product and pricing pressures andregulatory developments.1 June 7, 2011 Nestlé Investor Seminar
  3. 3. Agenda MANUFACTURING REVIEW MANUFACTURING STRATEGY MANUFACTURING EXCELLENCE2 June 7, 2011 Nestlé Investor Seminar
  4. 4. We are coming from a long-term commitmentto Operational Excellence… Performance Operation EXCELLENCE 2007 Target 2004+ MH97 Performance Improvement is part of our DNA and sustains on-going CI savings to support business growth Average annual savings of CHF 1 Bn over 10 years 1997 2001 2005 2008 Time3 June 7, 2011 Nestlé Investor Seminar
  5. 5. Increasing Production Volume with fewerFactories 123 113 117 481 480 108 456 100 449 443 2006 2007 2008 2009 2010 #Number of factories of factories Index production volume per factory Index of production volume4 June 7, 2011 Nestlé Investor Seminar
  6. 6. Achieving Efficiency throughout the wholeValue Chain Case Fill Rate FreshNes Bad Goods Index Index [a] Index 106 100 105 79 100 100 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 [a] FreshNes Index calculated as FreshNes at Shipment (% of Remaining Shelf Life) multiplied by Case Fill Rate.5 June 7, 2011 Nestlé Investor Seminar
  7. 7. Improving trend in Finished Goods and Raw& Packaging stock Stock Value Index 100 96 88 2008 2009 20106 June 7, 2011 Nestlé Investor Seminar
  8. 8. Contributing to positive trend in WorkingCapital TNWC Index 100 78 2006 2007 2008 2009 20107 June 7, 2011 Nestlé Investor Seminar
  9. 9. Strong Performance on the major EnvironmentIndicators over the last 10 years… Production Volume: + 73% (absolute change) -32% Water (m3/ton) (per tonne of product) -61% (absolute change) -3% Energy (gigajoules/ton) (per tonne of product) -44% Green House (absolute change) -16% Gas (per tonne of product) -51% (kg CO2/ton)8 June 7, 2011 Nestlé Investor Seminar
  10. 10. …Whilst driving Excellence in Safety Lost time injuries [a] 5 4.8 4 3.7 -63% 3 2.8 2 2.0 1.8 1 0 2006 2007 2008 2009 2010 [a] per million of hours worked9 June 7, 2011 Nestlé Investor Seminar
  11. 11. Agenda MANUFACTURING REVIEW MANUFACTURING STRATEGY MANUFACTURING EXCELLENCE10 June 7, 2011 Nestlé Investor Seminar
  12. 12. A unique and unmatched spread of Factoriesaround the World Europe 150 (Sales 34%) Americas 168 (Sales 45%) Asia, Oceania, Africa 125 (Sales 21%) 443 Factories 81 Markets > 150,000 Employees11 June 7, 2011 Nestlé Investor Seminar
  13. 13. Our Manufacturing Footprint… Araras – Brazil Feira de Santana – Brazil World’s largest Soluble Coffee exporting Tailored to fit regional needs and boost Factory economy …One Strategy does not fit all !12 June 7, 2011 Nestlé Investor Seminar
  14. 14. Brazil – World’s Biggest Soluble Coffee Plant Araras Leveraging economies of scale and expertise whilst increasing flexibility of supply Production: 237,000 T13 June 7, 2011 Nestlé Investor Seminar
  15. 15. Switzerland – World’s Biggest Center of CoffeeExcellence Nespresso – Avenches Leveraging economies of scale and expertise to deliver exclusivity and differentiation Production Capacity: 8.8 Bn Capsules (incl. extension to 2012)14 June 7, 2011 Nestlé Investor Seminar
  16. 16. North America – World’s Biggest Water Plant Hollis Maine Leveraging economies of scale to market the uniqueness of the source Production Capacity: 4.1 Bn Bottles15 June 7, 2011 Nestlé Investor Seminar
  17. 17. China – World’s Biggest Culinary Factory Newly launched product Totole’s best selling product Totole, Shanghai Leveraging economies of scale whilst being local for local Production Capacity: 206,000 T (incl. extension to 2015)16 June 7, 2011 Nestlé Investor Seminar
  18. 18. Producing closer to our Consumers andlocalising Opportunity Feira de Santana Feira de Santana, Brazil Leveraging economies of scale PPP Factory whilst servicing one consumer at a time Production Capacity: 92,500 T17 June 7, 2011 Nestlé Investor Seminar
  19. 19. This Manufacturing Strategy supports our ROIC 36.1% 35.1% 34.8% 2008 2009 2010 Excluding Goodwill18 June 7, 2011 Nestlé Investor Seminar
  20. 20. Agenda MANUFACTURING REVIEW MANUFACTURING STRATEGY MANUFACTURING EXCELLENCE19 June 7, 2011 Nestlé Investor Seminar
  21. 21. Summary Nestlé has delivered significant improvements in operational efficiency over many years Our Manufacturing Strategy follows what best serves our Consumer and Customer needs Nestlé Continuous Excellence (NCE) is accelerating efficiency improvements And we expect to deliver this for many years to come…20 June 7, 2011 Nestlé Investor Seminar
  22. 22. June J. Lopez 21 7, 2011 Nestlé Investor Seminar

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