autumn press conference 2005 - nestlé...chocolate, confectionery and biscuits 7.3 0.2 2.7 petcare...

Name of chairman

Autumn Press Conference 2005

20 October 2005

2 Name of chairmanAUTUMN PRESS CONFERENCE 2005

Key Figures

• Nestlé Group organic growth 5.8 %

• Food and Beverage organic growth 5.6%(RIG 3.5% + pricing 2.1%)

• Reported sales CHF 67.7 billion(+ 4.8%)


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

RIG Pricing & Other Acquisitions/Divestitures FX Impact(*) in 2001: including TTS effect

-10%

-5%

0%

5%

10%

15%

(*)

% Growth

The Four Factors of Sales 1995-2004

10 yearsaverage

OG5.7%

OG: OrganicGrowth

3.4%

2.3%1.3%

-2.5%


Source: Citigroup1994 1996 1998 2000 2002 2004

Nestlé 69.9

Unilever52.3

Kraft32.2

Danone 17.0

General Mills 11.0

USD bio

0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0 CAGR94-99 99-04 94-04

Nestle 3.4% 7.2% 5.3%

Unilever -0.3% 3.6% 1.6%

Kraft na 6.5% na

PepsiCo 2.5% 7.5% 5.0%

Coca Cola 2.8% 5.5% 4.2%

Sara Lee 2.1% 2.5% 2.3%

Danone 0.3% 3.9% 2.1%

General Mills -1.9% 18.0% 7.6%

Sales Evolution in USD bio


Nestlé Group EBITA and EBITA Margin from 1995 to 2004

% of Sales

12.2%

11.8%*

12.3%12.5%

12.6%

11.7%

10.8%

10.6%10.4%

10.6%

01'0002'0003'0004'0005'0006'0007'0008'0009'000

10'00011'00012'00013'000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

mio

CH

F

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%EBITA(mio CHF)

* New NPS definition in 2001

EBITA Margin over last 10 Years


Source: Citigroup

CAGR

Nestle

Unilever

Kraft

PepsiCo

Coca Cola

Sara Lee

Danone

General Mills

3.0% 9.3% 6.1%

4.3% 8.6% 6.4%

na 4.0% na

-0.8% 11.2% 5.0%

3.4% 6.7% 5.0%

3.5% 3.4% 3.5%

3.8% 3.2% 3.5%

4.7% 15.0% 9.7%

94-99 99-04 94-04

1994 1996 1998 2000 2002 2004

USD bio

0

2.0

4.0

6.0

8.0

10.0

12.0 Nestlé 11.1

Unilever9.2

Danone2.8

EBITDA Evolution in USD bio


GLOBE "Live" Markets(by end of December 2005)

23 markets will have implemented all three GLOBE objectives: • 28 countries

• Over CHF 28 billion in sales

• Over 75,000 users of the system

• 316 factories

• 352 distribution centers

• 221 sales offices

Over 36% of Nestlé Food and Beverage businesses will be running on GLOBE processes, data and systems

Name of chairman



Key Points

• Group organic growth of 5.8% (RIG of 3.8%)

• Food & Beverage organic growth of 5.6% (RIG of 3.5%)

• Good organic growth in the Americas 7.3%, AOA 7%, and Waters 8.4%

• Europe's organic growth remains positive

• Excellent performance in "Other activities" 10.7%

• Strong pricing in Milk products, Soluble & R&G coffee and Nutrition helping to compensate raw material cost pressures


Reported sales increase 4.8% to CHF 67.7 billion

-0.2 %-0.8 % Acqs - divests

Pricing

RIG

2.0 %

3.8 % 5.8% ORGANICGROWTH

Exchange Rates


RIG and organic growth in Europe (Food) – Key markets

9m 2005 RIG OG% %

Western Europe -0.3 1.3Germany -0.3 0.5France 0.3 1.2NPPE (PetCare) 3.3 4.3GB Region 2.2 5.9

Eastern Europe 0.4 4.6Russian Region -7.9 -1.9


RIG and organic growth in the Americas (Food)– Key markets

United States & Canada 5.3 6.5United States 3.5 5.2NPPNA (PetCare) 5.9 6.9Dreyer's 10.8 9.5Canada 5.3 8.2

Latin America and Caribbean 4.5 8.9Brazil 6.4 5.2Mexico 3.2 9.1

9m 2005 RIG OG% %


RIG and organic growth in Asia, Oceania and Africa (Food) – Key markets

Oceania and Japan 2.3 2.4Japan 1.0 -1.1

Other Asian markets 3.9 8.4Greater China 3.1 3.7Philippines -2.4 7.4

Africa -1.7 6.5

Middle East 9.3 13.0

9m 2005 RIG OG% %


RIG and organic growth in Nestlé Waters

North America 17.2 16.7

Europe 0.7 - 0.4

Rest of the world 15.0 17.3

Total Nestlé Waters 9.0 8.4

9m 2005 RIG OG% %


RIG and organic growth in Other activities

Alcon 9.5 9.8

Joint VenturesCPW 2.4 4.4Galderma 1.1 5.0

Total other activities 9.6 10.7

9m 2005 RIG OG% %

The sales split in Other activities is approx. 75% Pharma and 25% Food and Beverage


Sales by Product group

Beverages 17.6 6.4 7.8Milk products, nutritionand ice cream 18.9 2.4 5.5Prepared dishes andcooking aids 11.8 2.6 4.2Chocolate, confectioneryand biscuits 7.3 0.2 2.7PetCare 7.7 4.1 5.2Pharmaceutical products 4.4 8.9 9.4

9m 2005 Sales RIG OGCHF bn % %

Name of chairman



0

10

20

30

40

50

60

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Switzerland USA France Great Britain Germany

shar

e ca

ptia

l in

%Distribution of Share Capital by Nationality

since 1992

(end March)


43.8

56.2

43.2

56.8

45.3

54.7

46.7

53.3

45.7

54.3

47.3

52.7

51.6

48.4

56

44

67

33

65.3

34.7

67.4

32.6

68.4

31.6

0%

20%

40%

60%

80%

100%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005*

Institutionals Private Shareholders

* as per 30/9

Share Capital by Investor Type 1994 - 2005


Voting Limitations

Total Result

no change no opinion abolish article


Special Quorum

Total Result



Attendance / Qualified Majority

Total Result



Directors – Terms of Office

5 years 4 years 3 years


Auditors – Term of Office

3 years 2 years 1 year

Name of chairman


TOWARDS A FOOD, NUTRITION & WELLNESS COMPANYChristiane Kuehne - Head of Corporate Wellness UnitVevey, 20 October 2005


WELLNESS: A POWERFUL GLOBAL TREND ...

Expanding Media Coverage

Self-Management ofPersonal Wellness

Demographic & Lifestyle Trends

Government Involvement

Growing Retailer Interest

Competitive Interest and Activity

Wellness


EVOLUTION OF NEED STATES IN FOOD

GOOD FOOD GOOD FOOD, GOOD LIFE

Sustenance Enjoyment Health/ Nutrition Psychological Contentment

Good Food Health & Wellness Wellbeing

Feeling Good Taking Control

EquilibriumBody & Mind

PerceivedNutritional

value +Taste/Pleasure

Variety/BalanceSafety/Quality

For all +


CORPORATE WELLNESS UNIT MISSION

Drive the Nutrition, Health & Wellness orientationacross the Company by ...

• Setting Direction

• Translating Wellness into Action

• Providing business solutions & tools


NESTLE'S ASSETS

• Long standing experience in nutrition since 1867

• World wide experience and coverage

• Skill in gaining consumer insight

• Network of people focused to drive Wellness across all

companies

• R&D leadership in the science of food and nutrition

• Credibility with scientific and medical community


STRONG GLOBAL BRANDS…

…and products at every level of the "nutrition pyramid"


How can I continue to enjoy my favourite

foods and drinks and yet still improve the nutritional value of my diet ?

KEY QUESTION

The company who will make a difference in the Wellness Arena…

…will be the one who provides the answer to the basic consumer question:


IMPROVING TASTE AND NUTRITIONAL VALUE

"Both Taste and Health"

"With whole wheat and real vegetables"

Salt reduced by 11%

TFA reduced to less than 3%

Fibers & Proteins increased (wholegrain)

Added vegetables


IMPROVING TASTE AND NUTRITIONAL VALUE

"I would like the snacks that I give my children to be as nutritious as my home cooking"

60% preference in blind test

TV ad: Goodness of 3 indian breads in 1

4000t first year, 10% of main stream Maggi noodles volume

60/40 Consumer Preference

Nutritional Assessment

Communication

Results

Nutritional Foundation: Salt within Nestlé Policy

Competitive advantage: Whole wheat

Consumer Insight


NUTRITION INFORMATION



Nestlé Noir


NRC/000050-05-UK

BRINGING SCIENCE, NUTRITION & BUSINESS TOGETHER

• 3500 people in R&D• R&D spending of 1.6% of sales

support:– Renovation process (60/40+)– Innovation based on consumer benefit areas


BRANDED ACTIVE BENEFITS

Today BAB account for sales of CHF 2.5 billion in 2004

Vitality / Protection Immunity & Protection

Intestinal Health

Heart Health

Building StrongerBones

Helps EnergyRelease

Long-Lasting Energy

Growth &Development

Feeling Good,& It Shows

Long LastingAlertness

"Refuelling"Growth

Active CholesterolControl

Helps Keep Calciumin your Bones

R

EasyDigestion


BRANDED ACTIVE BENEFITS

• Consumer Insight: Digestive Comfort• BAB: Fibers, calcium and vitamins• Carrier product: Milk• Strong branding

Result +47% growth


CONCLUSION

Consumer insight on needs around Nutrition and Health

Renovation and innovation focused around the taste and nutritional advantage of our products

Consumer Communication and education on and around Nutrition

Strong science base to support the drive towards Nutrition and Health

Sustainable profitable growth

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Perception of Nestlé in the Area of Corporate Social Responsibility

Nestlé Oil Food Beverage Apparel

Negative Positive

Response in developed countries


Perception of Nestlé in the Area of Corporate Social Responsibility

Nestlé Oil Food Beverage Apparel

Negative Positive

Response in developing countries


Partners’ Blend

Launched October 6

in the UK

with Fair Trade Label

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Next Media Events

23 February 2006 – Spring Press Conference6 April 2006 – Ordinary General Meeting

25 April 2006 – First Quarter Sales

autumn press conference 2005 - nestlé...chocolate, confectionery and biscuits 7.3 0.2 2.7 petcare...

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