creating competitive gaps through manufacturing · creating competitive gaps through manufacturing...
TRANSCRIPT
June 7, 2011 Nestlé Investor Seminar
Creating Competitive Gaps Through Manufacturing
Mr. José LopezExecutive VP, Operations & GLOBE
These slides differ to those shown at
the Nestlé Investor Seminar 2011
June 7, 2011 Nestlé Investor Seminar
Disclaimer
1
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.
June 7, 2011 Nestlé Investor Seminar
Agenda
MANUFACTURING REVIEW
MANUFACTURING STRATEGY
MANUFACTURING EXCELLENCE
2
June 7, 2011 Nestlé Investor Seminar
We are coming from a long-term commitmentto Operational Excellence…
3
Performance
MH'97
Target 2004+
OperationEXCELLENCE
2007
CI
Time2008200520011997
Performance Improvement is
part of our DNA and sustains on-going
savings to support business growth
Average annual savings of CHF 1 Bn over 10 years
June 7, 2011 Nestlé Investor Seminar
Increasing Production Volume with fewerFactories
481 480
456449
443100
108
113 117123
2006 2007 2008 2009 2010
# of factories Index production volumeIndex of production volume per factoryNumber of factories
4
June 7, 2011 Nestlé Investor Seminar
Achieving Efficiency throughout the wholeValue Chain
5
100
105
2006 2007 2008 2009 2010
Case Fill RateIndex
100
106
2006 2007 2008 2009 2010
FreshNes Index [a]
100
79
2006 2007 2008 2009 2010
Bad GoodsIndex
[a] FreshNes Index calculated as FreshNes at Shipment (% of Remaining Shelf Life) multiplied by
Case Fill Rate.
June 7, 2011 Nestlé Investor Seminar6
Improving trend in Finished Goods and Raw & Packaging stock
10096
88
2008 2009 2010
Stock ValueIndex
June 7, 2011 Nestlé Investor Seminar7
Contributing to positive trend in Working Capital
100
78
2006 2007 2008 2009 2010
TNWCIndex
June 7, 2011 Nestlé Investor Seminar
-51%
-16%
-44%
-3%
-61%
-32%
Strong Performance on the major EnvironmentIndicators over the last 10 years…
(absolute change)
Water(m3/ton)
Energy(gigajoules/ton)
Green House
Gas(kg CO2/ton)
(per tonne of product)
(absolute change)
(per tonne of product)
(absolute change)
(per tonne of product)
Production Volume: + 73%
8
June 7, 2011 Nestlé Investor Seminar
…Whilst driving Excellence in Safety
9
4.8
3.7
2.8
2.01.8
0
1
2
3
4
5
2006 2007 2008 2009 2010
-63%
[a] per million of hours worked
Lost time injuries [a]
June 7, 2011 Nestlé Investor Seminar
Agenda
MANUFACTURING REVIEW
MANUFACTURING STRATEGY
MANUFACTURING EXCELLENCE
10
June 7, 2011 Nestlé Investor Seminar
A unique and unmatched spread of Factoriesaround the World
11
Americas
168(Sales 45%)
Asia, Oceania, Africa
125(Sales 21%)
Europe
150(Sales 34%)
443 Factories
81 Markets
> 150,000 Employees
June 7, 2011 Nestlé Investor Seminar
Our Manufacturing Footprint…
…One Strategy does not fit all !
12
Araras – BrazilWorld’s largest Soluble Coffee exporting
Factory
Feira de Santana – BrazilTailored to fit regional needs and boost
economy
June 7, 2011 Nestlé Investor Seminar
Production: 237,000 T
13
Araras
Brazil – World’s Biggest Soluble Coffee Plant
Leveraging economies of scale and
expertise whilst increasing flexibility
of supply
June 7, 2011 Nestlé Investor Seminar
Production Capacity: 8.8 Bn Capsules(incl. extension to 2012)
14
Nespresso – Avenches
Switzerland – World’s Biggest Center of Coffee Excellence
Leveraging economies of scale and
expertise to deliver exclusivity
and differentiation
June 7, 2011 Nestlé Investor Seminar
Production Capacity: 4.1 Bn Bottles
15
North America – World’s Biggest Water Plant
Hollis Maine
Leveraging economies of scale to
market the uniqueness of the source
June 7, 2011 Nestlé Investor Seminar
China – World’s Biggest Culinary Factory
Production Capacity: 206,000 T(incl. extension to 2015)
16
Totole, Shanghai
Totole’s best selling
product
Newly launched product
Leveraging economies of scale whilst
being local for local
June 7, 2011 Nestlé Investor Seminar
Production Capacity: 92,500 T
17
Feira de Santana, Brazil
PPP Factory
Producing closer to our Consumers and localising Opportunity
Feira de Santana
Leveraging economies of scale
whilst servicing one consumer
at a time
June 7, 2011 Nestlé Investor Seminar18
This Manufacturing Strategy supports ourROIC
34.8%
35.1%
36.1%
2008 2009 2010
Excluding Goodwill
June 7, 2011 Nestlé Investor Seminar
Agenda
MANUFACTURING REVIEW
MANUFACTURING STRATEGY
MANUFACTURING EXCELLENCE
19
June 7, 2011 Nestlé Investor Seminar
Summary
Nestlé has delivered significant improvements in operational
efficiency over many years
Our Manufacturing Strategy follows what best serves our
Consumer and Customer needs
Nestlé Continuous Excellence (NCE) is accelerating efficiency
improvements
And we expect to deliver this for many years to come…
20
June 7, 2011 Nestlé Investor Seminar21 J. Lopez