Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Nestlé
Investor Seminar
2014
Perry Miele
President
Nestlé Professional
June 3rd & 4th, Liberty Hotel, Boston, USA
Nestlé Investor Seminar 2014June 3rd & 4th, Boston1
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.
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Nestlé Professional portfolio in the US
Sales in $: + 4.8% CAGR 2011 - 2013
2
Food
Beverage
900+
3
Employees
Dedicated
manufacturing
facilities
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Agenda
3
The out-of-home environment
Simplexity – solving the operator’s dilemma
Focus areas – how we will win
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Out-of-home in the US
Restaurants
represent
58% dollar
share with
60% of sales
represented
by top 500
chains Economic conditions have
contributed to declining traffic
Home of global
restaurant chains$683
billion
2014 forecasted sales
47%
share of
consumer
food spend
Largest &
most
developed
OOH
market in
the world
22%
18%
13%
2%
USA
W. Europe
Japan
Canada
% OOH Worldwide
614'854
337'520
181,883
Restaurants Onsite Foodservice Retail Food
OOH Units by Channel
4
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Low traffic levels continue to challenge the industry
5
Foodservice Industry Traffic
Driven by:
• High unemployment
• Low disposable income
• Economic uncertainty
• Consumer changes in
behavior
2008 2013
63 billion
61 billion
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Understanding the out-of-home environment
6
•Searching for value &
convenience to help
manage busy lives
•Lacking long-term
financial confidence but
still allowing for small
indulgences
•Managing food costs &
retaining customers are of top
importance
•Looking for help to shake
things up on menus & gain
traction
•Not sure how to manage NHW
today – proceeding with
extreme caution
MarketplaceConsumer
•Looking to control health &
nutrition away from home
with focus on ingredient
transparency & sourcing
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Nestlé Professional: Our mission
7
Nestlé Professional inspires partners’ growth by
providing branded, creative, profitable solutions
that are Making More Possible
for our customers.
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
We are driving our performance…
8
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
From products
to solutions
Customer Value
Creativity
Expertise
Excellence
Focus on Branded
and Custom Food &
Beverage solutions
Solving the operator’s dilemma
9
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Solutions that simplify …
10
Asset Lean
Labor/Skill Lean
Time Lean
Sustainable
 
 
 
 
SIMPLEXITY
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
NESCAFÉ Milano
11
• 30% faster than competition
• Zero waste
• No refrigeration
• Self cleaning
• Food safe
NESCAFÉ Milano’s unique technology
delivers the ease of creating black and
specialty coffee beverages at the push of
a button.
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Minor’s Natural Gluten Free Bases
• Tested gluten free
• No Big 8 allergen Ingredients
• Made with natural ingredients
• Clean Label
• 25% Less Sodium than a traditional base
• 0g Trans Fat & Sat Fat per serving
12
…taste and consistency aren’t
being compromised and your
customers’ dietary concerns are
being met.
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Beverages & Food focus in the US
Branded and Custom Food
Solutions
Branded Beverages
Solutions
4 Growth Platforms
Savory
Solutions
3 Growth Platforms
Dessert
Solutions
Meal
Solutions
13
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
Reducing complexity and building synergies
14
- 42%
SKU count
2013 vs. 2011
Streamlining the
portfolio
$30+m
Cost savings
Cost & consolidation
savings
Operate as
ONE
Nestlé
Nestlé Investor Seminar 2014June 3rd & 4th, Boston15
Grasping opportunities with simple solutions
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
NHW in everything we do
16
Products Communication
SolutionsPeople
• NHW accountability for all
employees
• Nutrition Quotient (NQ) training
- beyond basic nutrition
• Creating NHW ambassadors
• Responsible nutrition through
Nutrition Foundation and
Nutrition Policies
• Commitment to NHW innovation
& renovation
• Leverage NutriPro Toolkit
• Make NHW achievable for
customers
• Interactive & customizable
information
• Recipes for balanced nutrition
• Communicate credible science-
based nutrition
• NHW integrated throughout
• Leading with NHW at key
industry events
Nestlé Investor Seminar 2014June 3rd & 4th, Boston17
Engaging & winning with customer intimacy
100+ Customer visits/yr
Industry events
Nutrition seminars
$ CAGR
2011-2013
Nestlé Professional
Food & Beverage +4.8%
Foodservice Industry +1.5%
Nestlé Professional Customer
Innovation Campus
Solon, OH
Nestlé Investor Seminar 2014June 3rd & 4th, Boston
2011 2012 2013
A winning strategy to drive growth and improve profit
for Nestlé Professional in the US
+4.8%
Trading Operating Profit
(in USD)
CAGR(1)
+20%
Sales
(in USD)
2011 2012 2013
(1): 2011 to 2013 change
CAGR(1)
18
Nestlé Investor Seminar 2014June 3rd & 4th, Boston19
In Summary…
 Reducing the complexity in our
business and our marketplace
 We are solving the operator’s
dilemma
 Nestlé Professional is taking a
leadership position in NHW
 We are driving our performance
with solutions that simplify

Nestle Professional - the out of home business in the USA

  • 1.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Nestlé Investor Seminar 2014 Perry Miele President Nestlé Professional June 3rd & 4th, Liberty Hotel, Boston, USA
  • 2.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston1 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.
  • 3.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Nestlé Professional portfolio in the US Sales in $: + 4.8% CAGR 2011 - 2013 2 Food Beverage 900+ 3 Employees Dedicated manufacturing facilities
  • 4.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Agenda 3 The out-of-home environment Simplexity – solving the operator’s dilemma Focus areas – how we will win
  • 5.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Out-of-home in the US Restaurants represent 58% dollar share with 60% of sales represented by top 500 chains Economic conditions have contributed to declining traffic Home of global restaurant chains$683 billion 2014 forecasted sales 47% share of consumer food spend Largest & most developed OOH market in the world 22% 18% 13% 2% USA W. Europe Japan Canada % OOH Worldwide 614'854 337'520 181,883 Restaurants Onsite Foodservice Retail Food OOH Units by Channel 4
  • 6.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Low traffic levels continue to challenge the industry 5 Foodservice Industry Traffic Driven by: • High unemployment • Low disposable income • Economic uncertainty • Consumer changes in behavior 2008 2013 63 billion 61 billion
  • 7.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Understanding the out-of-home environment 6 •Searching for value & convenience to help manage busy lives •Lacking long-term financial confidence but still allowing for small indulgences •Managing food costs & retaining customers are of top importance •Looking for help to shake things up on menus & gain traction •Not sure how to manage NHW today – proceeding with extreme caution MarketplaceConsumer •Looking to control health & nutrition away from home with focus on ingredient transparency & sourcing
  • 8.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Nestlé Professional: Our mission 7 Nestlé Professional inspires partners’ growth by providing branded, creative, profitable solutions that are Making More Possible for our customers.
  • 9.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston We are driving our performance… 8
  • 10.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston From products to solutions Customer Value Creativity Expertise Excellence Focus on Branded and Custom Food & Beverage solutions Solving the operator’s dilemma 9
  • 11.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Solutions that simplify … 10 Asset Lean Labor/Skill Lean Time Lean Sustainable         SIMPLEXITY
  • 12.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston NESCAFÉ Milano 11 • 30% faster than competition • Zero waste • No refrigeration • Self cleaning • Food safe NESCAFÉ Milano’s unique technology delivers the ease of creating black and specialty coffee beverages at the push of a button.
  • 13.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Minor’s Natural Gluten Free Bases • Tested gluten free • No Big 8 allergen Ingredients • Made with natural ingredients • Clean Label • 25% Less Sodium than a traditional base • 0g Trans Fat & Sat Fat per serving 12 …taste and consistency aren’t being compromised and your customers’ dietary concerns are being met.
  • 14.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Beverages & Food focus in the US Branded and Custom Food Solutions Branded Beverages Solutions 4 Growth Platforms Savory Solutions 3 Growth Platforms Dessert Solutions Meal Solutions 13
  • 15.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston Reducing complexity and building synergies 14 - 42% SKU count 2013 vs. 2011 Streamlining the portfolio $30+m Cost savings Cost & consolidation savings Operate as ONE Nestlé
  • 16.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston15 Grasping opportunities with simple solutions
  • 17.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston NHW in everything we do 16 Products Communication SolutionsPeople • NHW accountability for all employees • Nutrition Quotient (NQ) training - beyond basic nutrition • Creating NHW ambassadors • Responsible nutrition through Nutrition Foundation and Nutrition Policies • Commitment to NHW innovation & renovation • Leverage NutriPro Toolkit • Make NHW achievable for customers • Interactive & customizable information • Recipes for balanced nutrition • Communicate credible science- based nutrition • NHW integrated throughout • Leading with NHW at key industry events
  • 18.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston17 Engaging & winning with customer intimacy 100+ Customer visits/yr Industry events Nutrition seminars $ CAGR 2011-2013 Nestlé Professional Food & Beverage +4.8% Foodservice Industry +1.5% Nestlé Professional Customer Innovation Campus Solon, OH
  • 19.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston 2011 2012 2013 A winning strategy to drive growth and improve profit for Nestlé Professional in the US +4.8% Trading Operating Profit (in USD) CAGR(1) +20% Sales (in USD) 2011 2012 2013 (1): 2011 to 2013 change CAGR(1) 18
  • 20.
    Nestlé Investor Seminar2014June 3rd & 4th, Boston19 In Summary…  Reducing the complexity in our business and our marketplace  We are solving the operator’s dilemma  Nestlé Professional is taking a leadership position in NHW  We are driving our performance with solutions that simplify