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... captures the very essenceof Nestl and the promisewe commit ourselvesto everyday, everywhereas the leading Nutrition, Health& Wellness Company
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Building on Nestls heritage1866
19291938
1947
1960s
1970s
1980s
1990s
2000s
Henri Nestl
2010
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Nestls greatest assets
Nestl Culture: aligning over 280,000 people from
120 countries
Consumer Trust: 1 billion customers a day
A product for every
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moment of every day,
from morning to nightand from birth to old age
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The Nestl Roadmap
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Growthdrivers
Competitiveadvantages
Operationalpillars
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Nestls geographic reachUnmatched global scale
AmericasCHF 44bn
EuropeCHF 35bn
AOACHF 20bn
Emerging marketssales of CHF 35bn
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Emerging market performance
Emerging marketsare enhancing to organic growth
are enhancing to EBIT margins
are a focus of Capex and M&A
and
and
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GlobalSalesCHF bn
% ofSales inEMs
GlobalSalesCHF bn
% ofSalesin EMs
Dairy 13.0 80 Ambient Culinary 7.4 50
PetCare 12.9 10 Ice Cream 6.6 20
Confectionary 11.8 45 Powdered Beverages 3.4 65
Soluble Coffee 10.6 50 RTD Beverages 1.2 40
Frozen & Chilled 9.7 0 Weight Management 0.6 0
Water 9.0 15 Performance Nutrition 0.2 0Infant Nutrition 7.4 50
Nestls diverse portfolioUnparalleled breadth across product groups
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Sales FY 2009; EM = Emerging Markets (LatAm, Carribean, Eastern Europe, and AOA excl. Japan, Oceania, South Korea and Israel)
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Building enduring franchisesBillionaire Brands contribute 75% of sales
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http://webappps2.hq.nestle.com/appl_Bcom/Search/shFamilyPreview.asp?BRDSelect=-1&TXTCat=Beverages&CatId=75&OTSelect=-1&TXTKey=&TXTKey2=&TXTRef=&TXTName=&TXTDesc=&Action.x=7&Action.y=9&GotoPage=1&SO=1&FAM=2788/6/2019 2010 Nov Nestle General Overview
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SBU/GMB/Zone lead
Market/Zone lead
9
Innovation & RenovationFrom game changing ideas to consumer relevant adaptation
Generating
concepts
Exceptional
performance
Continuous
improvement
The essential
start...
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Nestls approach to Nutrition, Health & WellnessEnabling consumers to make healthy choices
Pleasure
60/40+Combining best taste
with best health
Balance
Branded Active BenefitsMaking a good Nestl
brand even better
Understanding
Nutritional Compass
Helping consumers with informed dietary choices
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Nestls specific business modelsTargeting emerging consumer groups
Premium
Mainstream
PPP
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PPP = Popularly Positioned Products
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Nestls belief is that businesses can only be
successful in the long term bycreating value for shareholders society
Nutrition Water Rural Development
and
Creating shared value
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Nestls objective
is to be the recognizedleader in Nutrition,Health & Wellness,and the industry
reference for financialperformance
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The Nestl ModelCreating value through profitable growth
Organic growth of 5% to 6%
EBIT margin improvement every year
Increase return on invested capital
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Data corresponds to published figures not restated for accounting changes. *9 months 2010
7.4%
9.7%
5.1%4.5%
6.2% 6.2%
4.1%
5.4%4.9%
8.3%% Organic Growth
RIG
10-year annual averagesOrganic Growth 6.2%
Real Internal Growth 3.5%
6.1%
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10 years of the Nestl Model together with a high level of organic growth
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Group EBIT
EBIT margin
CHF bn
Data corresponds to published figures not restated for accounting changes.
10 years of the Nestl ModelConsistent improvement in the EBIT margin
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Share Buy-Back
Dividend (CHF bn)
Dividend Payout Ratio
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*Forecast
has enabled significant cash returns to
shareholders
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Nestl continues to deliver total performance
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Achieving
Simplicity
Investing
for Growth
Driving Scale
Benefits
Accelerating
Performance
THE NESTL MODEL
||
and andand
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as an enabler
MH'97
Target 2004+
OperationEXCELLENCE2007
CI
Performance
2010...200520011997 2008
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Nestls operational efficiencyDelivering the highest quality, lowest cost & best customer service
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Nestl's global presence: an unparalleled foundation for growth
We are investing in R&D, in capabilities, infrastructure, peopleand brands to drive growth
The Nestl Roadmap: the building blocks for growth bycategory and country global strategy, local execution
We are all aligned behind our Roadmap, focused on
acceleration in everything that we do
We are committed to the Nestl Model for years to come
Nestl outlookOpportunities for growth
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Nestls objective
is to be the recognizedleader in Nutrition,Health & Wellness,and the industry
reference for financialperformance
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