Generating Growth in Europe Laurent Freixe - Executive Vice President - PowerPoint PPT Presentation

Generating Growth in Europe Laurent Freixe - Executive Vice President Europe - Nestlé

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. 30 novembre 2012

In a Challenging Europe 2/3 of business units gaining share Strong contribution to volume/mix (1H13 ) 2.7% Group 1.8% Z-EUR +60% increase in cost efficiencies Creating a CHF1bn business 2008 2009 2010 2011 2012 30 novembre 2012

Nestlé in Europe - CHF 27 bn - 48 countries - 16 markets - 100’000 employees - 153 factories 30 novembre 2012

Nestlé product range in Europe 0% 6% 6% 29% 8% 10% 11% 15% 15%

6 30 novembre 2012

2013 weak GDP outlook CIS 2.8% CEE 2.2% € area -0.6% 30 novembre 2012 Source: IMF – July 2013

Time of indignation and social unrest 8 30 novembre 2012

Unemployment at record levels 24% 15% Youth 11% 7% Total 2008 2013 30 novembre 2012 Source: EuroStat EU27 – July 2013

Consumer confidence is very weak 10 years average -21,6 -32,2 2007 2010 2013 Source: EuroStat EU27 – March 2013

Private consumption turned negative 1,3% -1,1% 2011 2012 11 August 2012 Source: Euro Stat

Strategic Virtuous Circle drives profitable growth 11 August 2012

Momentum in achieving efficiencies 100 160 2008 2012 Operational excellence savings index 11 August 2012

Continuous improvement in working capital ... Finished Payables Raw Mat. / Receivables Goods Packaging +5% - 6 % -24% - 4% 1H12 1H13 1H12 1H12 1H12 30 novembre 2012 1H13 1H13 1H13

… whilst driving customer satisfaction 99.2 % 98.4 % 2010 2013 Case Fill Rate 30 novembre 2012

Inclusive social strategy - Constructive employee relations - Good working conditions - Safety & Health - Youth employment: 4th focus area to CSV in Europe 11 August 2012

It all starts with the team High Performing norm Nestlé Swiss Nestlé Greece Z-EUR MGT team Industry Benchmark 75 80 84 97 71 74 86 76 Engagement Enablement Source: Hay Group 30 novembre 2012

Nestlé admired in Europe European All-stars 2013 Source: Hay Group 30 novembre 2012

Focus on game changers

Transforming the coffee market In house Out of home

The coffee shop at home CHF 1 bn CHF 4 mio 2006 2014E 30 novembre 2012

Soluble coffee, source of innovation

Petcare growth engine in Europe +29% +7% +8% OG 1H13 11 August 2012

Growth through premiumization Price index 200 240 100 30 novembre 2012

Covering all channels opportunities Specialist channels Out of home E-commerce

Investing for growth ... ... with positive impact on employment 11 August 2012

Creating Shared Value Creating Shared Value Sustainability Compliance Nutrition Water Rural Development

With focus in Europe on … Creating Shared Value Sustainability Compliance Youth Employment

Outpacing competition in Europe - 2012 Company C Company B 2,3% 2,6% Company A 0,8% -1,0% Reported numbers Europe Nestlé in Europe 30 novembre 2012

Outpacing competition in Europe – 1H13 Company A Company B Company C -4,0 % -1,9 % 0,2 % 0,6 % Reported numbers Europe Nestlé in Europe 30 novembre 2012

Z-EUR sustained performance throughout the crisis … 15,7 15,6 % % 13,3 % 13,1 % Trading Operating Profit 0,3% 2,5% 4,0% 1,8% Organic Growth 2009 2012 … with accretive ROIC to Group

Strategic Virtuous Circle the way forward 11 August 2012

Nestlé Group strategic framework 11 August 2012

“ It is the sailor and not the wind that sets the course ”