nestlé investor seminar strategic demand …...12 nestlé investor seminar - vevey june 8-9, 2005...

Name of chairman

Nestlé Investor SeminarStrategic Demand Generation - Ed Marra

Nestlé Investor Seminar - Vevey June 8-9, 2005

2 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

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.

Disclaimer

3 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Our Organic Growth over the last 10 years averages 5.7%

RIG

Organic Growth

3.4%2.7%

3.2%3.3%

3.6%

4.4% 4.4%3.4%

2.2%

2.9%

6.5%

5.1%

6.9%

5.2%

3.8%

5.4% 6.4%4.9%

5.1%

4.5%

0%1%

2%3%

4%5%

6%7%

8%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

4 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

And we have seen continuous and sustainable improvement of EBITA margin

10.410.6

10.810.611.7

12.211.8

12.3

12.5

12.6

6

8

10

12

1419

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

Name of chairman

Strong brands alone are no longer enough....

6 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Consumers are increasingly health conscious

7 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Connecting with consumers is a challenge...

8 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

International customers are consolidating

Discounters are moving into more markets

9 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

I Developing winning strategies - consumer, technology, capital and route to market

We have focused the Strategic Business Units (SBUs) on...

10 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

• patented technology

• superiour quality

• direct to consumer

11 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

I Developing winning strategies - consumer, technology, capital and route to market

II Developing and driving consumer ledInnovation and Renovation

We have focused the Strategic Business Units (SBUs) on...

12 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

50

100

150

200

250

300

•1940 50 60 70 80 90 •'00

000 tons

Nestlé soluble coffeedevelopment1938 - 2003

PURE WITHOUT MALTODEXTRINS

BATCH FREEZE DRIED GERMANY

AGGLOMERATION

SEMI -FAST ROASTING

EDEN JAR; NIRVANA JAR

CONTINUOUS FREEZE DRYING FOR TASTERS CHOICE USA

GLASS JARS AND INERT GAS PROTECTION

NEW EXTRACTION

CONTINUOUS DECAFFEINATION

PROCESS ELIMINATES PROCESS FLAVOURSCAPPUCCINO INTRODUCTION ITALY

FOAMING CAPPUCCINO INTRODUCTION GERMANY

1938 2004

REDESIGNED JAR

GREEN COFFEE UTILIZATION OPTIMISATION

COFFEE CONCENTRATE JAPAN

WATER DECAF SWITZERLAND

Continuous Technical Evolution...

NEW AROMA TECHNOLOGY

NEW CAPPUCINO

13 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

• 67:33 preference vs competition

• premium priced

• doubled market share

• increased category earnings

14 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

• attracting youth - first coffee experience

• especially formulated for milky coffee

• category growth

• 60:40 preference vs competition

15 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

"Your pets, our passion"

• healthy weight formula

• leveraging brands and technology

• rolling out globally

• 63% of US cats live indoors

• $53m sales in first year

• 60% of users new to Cat Chow

16 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

I Developing winning strategies - consumer, technology, capital and route to market

II Developing and driving consumer ledInnovation and Renovation

III. People - Core competence• In SBUs and Markets• Strategic• Inspired and inspiring leaders

We have focused the Strategic Business Units (SBUs) on...

17 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Clusters bring like-markets together

Develop Strategy

Share Best Practices

Drive Innovation Renovation agenda

Achieve synergies effectiveness

Learning and reapplication

18 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

19 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

USA - accelerating growth via innovation and renovation

$0

$200

$400

$600

$800

$1'000

$1'200

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

($ in

Mill

ions

)

driving the core business + creating new segments

20 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

New occasionBREAKFAST

New crustHEARTIEST

New fillingSWEET

2002 2003 2004 2005

New formnew crust

Continuous innovation

21 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Rolling out into Europe

22 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Breakthrough innovation

• scientifically leading edge

• closest formula to breast milk

• enhanced immune protection and allergy prevention

• rolling out globally within 2 years

23 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Inspiring a focus on innovation

24 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Wellness into action

25 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Wellness Unit evolving Nestlé to a "food, nutrition, health and wellness Company"

26 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Over 700 products renovated or innovated in the past five years, with wellness in mind

Nestlé - A World of Healthy Food

27 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Scientifically developed foods for every stage of life...

28 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Wellness in action....

Actigen-E enhances

MILO's energy-giving benefits

Full taste and aroma of Nescafé Original and Nescafé Gold Blend, but with half the

caffeine

With BAB´s nutritional activator

29 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Less than 100 calories per bar

Healthy ageing for dogs

carbs reduced

lower fat

Wellness in action....

30 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Nutrition made simple......and how to find out more

31 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

On KIT KAT too

32 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

reinvested in our

brands

5%value

improvement*

And we are increasing the efficiency and effectiveness of our Media investment

Media Agency Consolidation (Agency of Record)

* on reported media spend globally

Getting more value

Improving quality

33 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Consumer Customer Communication Capability

The Strategic Generating Demand Unit will focus on the "4 C's", with a mission to help markets grow

Setting Direction + Building Capability

What to do How to do it

34 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Harnessing the power of two functions into one team

Sales

Marketing Generating Demand

with a common goal...

To inspire consumers to spend more on Nestlé brands

35 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Key global initiatives so far...

Global supplier* contracts review

* of information, research, packaging

36 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Key global initiatives so far...

Consumer Insight

+toolbox

• Nestlé Way

• Proprietary methodology

• Best in class

• Global training programme

37 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Re-energising KIT KAT

• Insight: "I love eating KIT KAT but sometimes it just doesn't excite me"

• Roll Out: Japan, Oceania, UK, Canada, Germany

38 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Making fun of water

• Insight: "I wish it was easier to get my kids to drink water - it is so good for them".

• Results: Premium priced, category growth, market leader

39 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Consumer Value Pricing

+ toolbox

• Nestlé Way

• Proprietary methodologies

• Best in class

• Global training programmes

Integrated Commercial Planning

40 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Customer Management

• Global Customer teams, aligned local approaches

• Joint business planning

• Building capability of our Customer teams

41 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

Global to local - Tesco

New Tesco global intranet site for Nestlé

42 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

All Strategic Generating Demand work is aligned with...

43 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

In summary...

• Consumers drive our growth agenda

• SBUs provide business leadership for growth– winning strategies, innovation, people

• Strategic Generating Demand Unit provides functional leadership for growth– "what to" and "how to"

• Delivering 5-6% organic growth, with improving EBITA margins, is why we do it all

44 Name of chairmanNestlé Investor Seminar - Vevey June 8-9, 2005

NEVER LOSE THAT

"PASSION TO WIN"

NEVER LOSE THAT

"PASSION TO WIN"

Name of chairman

Nestlé Investor SeminarStrategic Demand Generation - Ed Marra

Nestlé Investor Seminar - Vevey June 8-9, 2005