NESTLÉ S.A. Growing in Zone
EMENA
Marco Settembri
CEO, Zone Europe
Middle East and North Africa
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 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.
This presentation contains certain financial performance measures which are not defined by IFRS. Management believes that these non-IFRS measures provide additional useful information to assess the financial and operational performance of the Group. Such measures may not be comparable to similar measures presented by other companies and are explained and/or reconciled with our IFRS measures (Consolidated Financial Statements) in the Nestlé Group Alternative Performance Measures (APMs) document available on our Investor Website.
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Our business in Zone EMENA
Key 2018 figures
Sales
CHF 18.9 bn
21% of total Nestlé sales
Underlying
TOP
19.0%*
Employees
74 000
- Before unallocated items
Where
Western
Europe
62%
MENA
19%
Factories
101
Central
- Eastern Europe
19%
What
Beverages | Prepared dishes | PetCare |
incl. coffee | & cooking aids | |
27% | 21% | 18% |
Confectionery | Nutrition & | Milk products |
Health Science | & Ice cream | |
17% | 11% | 6% |
Top brands
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Our transformational journey ‛EMENA 2020'
7 regionally-managed | Leading to a structural | ||
businesses created | shift in sales | ||
EMENA sales by business model | |||
2017 | |||
Global | 42% | 45% | |
Regional | |||
Local
13%
2019
30%
Global
Regional 70%
Enabling and driving an evolution in our ways of working
Middle East…
Winning together in the market
- Combining the best of category focus and local market competence
- Aligned decision making
- Clear decision rights on local and above market processes
P&L responsibility at category level
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Our virtuous circle
Creating Shared Value
- Healthier Kids
- YOUth initiative
- Zero environmental impact across operations
Delivering profitable growth
- 2018: +80 bps UTOP margin helped by portfolio management
Achieving efficiencies
- Distribution costs:-8 bps in 2018
- Overheads:-41 bps in 2018
Investing in growth
- 2018: CHF 24 m in additional consumer marketing investment
Driving market share
- Zone EMENA growing ahead of market (in value terms)
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Category growth opportunities
Petcare | Nutrition |
18% | 11% |
of Zone sales | of Zone sales |
Building a strategic partnership Purina - IVCCapturing mainstream opportunities
Beverages | Plant-based: |
incl. coffee | Free from meat |
27% | < 1% |
of Zone sales | of Zone sales |
Driving the Starbucks opportunity | Accelerating the Incredible Burger launch |
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Improving margins through lower structural costs, portfolio management, and steady growth
Zone EMENA: Underlying TOP and structural cost evolution (in % of sales)
20.6% | 20.5% | 20.3% | 20.7% | ||||
20.3% | 19.5% | ||||||
20.0% | |||||||
Structural costs | |||||||
as a % of sales | |||||||
19.0% | Underlying | ||||||
18.2% | trading | ||||||
16.9% | operating profit | ||||||
margin | |||||||
16.5% | |||||||
OG % | |||||||
15.8% | |||||||
15.8% | 15.8% | ||||||
3.5% | 2.2% | 2.3% | 3.5% | 1.4% | 2.1% | 1.9% | |
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
Organic growth figures before 2018 are pro forma and include the reorganization of Nestlé Nutrition and Nestlé Professional into the Zones
No restatement has been made for accounting changes before 2017
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Expanding beyond "EMENA 2020"
Sustainable
by design
Inclusive | EMENA | Consumer |
teams | ||
& shopper | ||
EMENA | centricity | |
2020 | ||
Connect | ||
Creating | ||
Digital by | competitive | |
design | gaps in | |
operations |
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Key takeaways
- Transformingthe way we operate in EMENA
- Optimizing coststhrough reduction of complexity and optimal industrial set-up
- Delivering market share gains and solid profit improvement
- Preparing the futurewith EMENA Connect
9 | | | June 11, 2019 | | | Deutsche Bank, Global Consumer Conference 2019 |
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Nestlé SA published this content on 11 June 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 June 2019 09:27:07 UTC
