pres brazil dec 2005
TRANSCRIPT
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PresentationNestl Braz
to Investors and A
Sao Paulo, December
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This presentation contains forward looking sta
Managements current views and estimates. Th
statements involve certain risks and uncertainactual results to differ materially from those co
looking statements. Potential risks and uncerta
include such factors as general economic cond
exchange fluctuations, competitive product an
and regulatory developments.
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Nestl in Latin America a
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519 million people
4 major languages
(English, Spanish, Portugu
Countries: 21
Pants: 74
Employees: 39.000
Sales: CHF 8.7bn
Organic growth: 10,7 % 20
4 Brands over CHF 1 Billio
Nestl Chocolate
Nestl hasMexico
Bolivarian
Austral
America
Brazil
Central Americaand Caribbean
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Latam
4,5
6,43,2
Sales
EBITA Zone AMS
Latin America and Caribbean
Brazil Mexico
RIG
%
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Nestl Brazil - a bus
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Cu
COFFEE,BEVERAGES+
FOOD SERVICES( J. Blaser )
MILK,CULINARY+CEREALS,
( G. Aubry )
CHOCOLATES( L. Leiman )
BISCUITS
( F. Costa )
REGIONALNORTH ANDNORTHEAST
( J. Wei )
GLOBEBRASIL
( O. Carvalho )
ICE CREAM( L. Oddone )
NUTRITION( M. Rosado)
FINANCE AND
CONTROL( L. Paravicini )
TECHNICAL( A. Berger )
LEGAL( H. Maccabelli )
SUPPLY CHAIN
( Moacyr Calligaris )
HUMAN RESOURCES( J. Dornellas)
SALES( L. Brinckmann )
CORPORATEMATTERS
( C. Faccina )
COM. + MKTSERVICES
( M. Castelar )
PRESIDENT( Ivan Zurita )
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Big PopGDP
Terr
Cult
- Vi- Po
- B
Being Big is
Alsobig
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3.240Km
RR
AM
AC
RO
MT
MS
GO
PA
AP
DF
SP
PR
SC
RS
RJ
MG
BATO
PI
MA
ES
SE
PB
RN
PEAL
CE
3.550 Km
To Operate
We mu
Leader in Food Indus 84 years of Brazil 15.200 Employees More than 220.000 ind
200 Brands 1300 SKUs 26 factories Present in 95% of Bra 1.4 Million tons handl 10 thousand trucks lo
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Im
Average annual investments
Foremost tax payer among the countrys food comp
Major Comm
US$ 560 million in 2004
US$ 144 million in infrastructureUS$ 123 million in marketing
Sugar = 2Coffee= 1Cocoa =Milk = 2 b
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Performance
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Ranking in Nestl Group
Sales 2004 Mio CHF 2.899*
2nd in volume
5th in sales5,6%
3,9%
NestlNPP BrazCPW 50%
*Total sales of Nestl in Brazil
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Divers
9%
9%
7%
10%25%
3%3%4%
4%
26%
Solu
Foo
Ice
Culi
Bisc
Exp
PowNut
She
Cho
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Driven by Innov
0
10%
20%
30%
2002 2003 2004 200
40%
2001
5% 8%14%
26%28%
209 Mio 450 mio
771 Mio
1526 Mio
1`811 Mio
54 90 138 20670No. Product
Innov/Renov
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InnovatiAdding nutritional value: NINHO
Benefit: Protection Stim
Product: Specialized M
Benefit: Milk-based Nutrition
Product: Full Cream Milk Powd
5-10% Price Premium
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Innovati
Being relevant to consumer
Launch: October 2004Market Share: 38,2%
Seven cans per second
are sold in Brazil
Condensed milk Condensed
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Participation of Nestl
Categories Ranking Main Competitors
Infant Formulas
Baby Food
Traditional Cereals
Soluble CoffeeMilk Powder
Choc Powder
Chocolates (Nestl+Garoto)
Condensed Milk
Soups
Dairy Milk
Biscuits (up to 300gr)
Pet food
Yogurts
Cubes
Ice CreamBreakfast Cereals
1
1
1
11
1
1
1
1
1
1
2
2
2
22
Support
Nutrimental, Mococa
Melita, Santa Clara, IguauItamb, Camponesa/
Parmalat
Quaker
Lacta-Kraft, Hersheys, Ferrero
Parmalat, Itamb, Elege
Unilever
Parmalat, Glria, Itamb
Danone, M.D.Branco,
Nabisco, Bauducco, Piraqu
Effem (Mars), Nutriara
Danone, Batavo
Unilever, Arisco
UnileverKelloggs
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Continuous Perform
Nestl Consolidated Sales and EBITAoutgrow both inflation and GDP
2001 2002 2003
Net Sales 100 125 143
EBITA 100 137 149
GDP 1,9% 0,3% 5,2%
INFLATION 12,5% 9,3% 7,6%
2004
155
194
1,3%
7,7%
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Garoto
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Key Performance Indicators ( 2004 X 2001)
NPS
EBITA(m
M. SHARE%
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Regionalization
Operational
Efficiency
Commu-nication
Nestl onthe Move
NewConsumption
Sector
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Brazilian consumers have an emotional relat
Nestl brand transcends the marketing dime
as part of Brazilian life.
Nestl brand adds a special and unique value
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One communication concept: Nestl faz bem
Related with
Consumers perception and with
Nestl. Good Food, Good Life
*Has in large a meaning of Do Well, Well Done
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One Comm
Nestl faz b
Related with
Consumers and wellnes
and
Nestl. Good
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New communication ex
C
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Co
2.100.000 issues
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Top of Mind (Folha de So Paulo newspaper)
Marketing best (Getulio Vargas Foundation)
iBest (best Internet site)
Consumer service - Respect to consumers (R Best company (Exame magazine)
Most admired foreign company (Carta Capita
Top Social, Eco, Good citizen,
Promotion of the Year
First Choice - Forbes
Top 100 companies to work nine times
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Regionali
zation
Nestl onthe move
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Fonte: IBGE
Area: 18%Population: 28%Income: 12%
Northeast RegionArea: 46%Population: 8%Income: 5%
North Region
Area: 19%Population: 7%Income: 7%
Midwest Region
Area: 11%Population: 43%
Income: 60%
Southeast Reg
Area: 6%
Population: 15%Income: 16%
South Region
Brazil A country of contrasts
Brazil a
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Brazil a
North/Northeast Southeast/South
A
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. 62 Mio62 Mio inhabitant
. U$ 115 BiU$ 115 Bi GDP 20
. 5,2 Mio Km5,2 Mio Km22 (64%
. 1515 states (out of 2
Sources: IBGE, Nielsen, LatinPanel, Nestl BI
North / Northeast
A
Nestl ha
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CreamSoups
Chocolates (Nestl+Garoto)
Milk Powder Whole
Condensed Milk
Modified Cereals
Choc Powder
Soluble Coffee
Baby Food
Infant Formulas
Biscuits (up to 300gr)
Breakfast Cereals
Bouillons
Milk Powder Skimmed
1
1
1
1
1
3
1
1
1
1
1
1
1
1
Unilever / AriscoGloria / Vale Dourado
Lacta-Kraft
Itamb / Camponesa
Itamb / Vale Dourado
Unilever / Nutriday
Quaker / Santa Clara
Santa Clara/ Marat
-
-
M.D. Branco / Vitarella
Kelloggs / So Bras
Unilever / Arisco
Glria
CATEGORIES RankingMain Competitors and
Local Comp.
Nestl ha
LOCAL TA
Intense pr
Fiscal ben
Tax engin
DSD in foc
Packaging
Strong po
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First Results
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EXCLUSIVE North/No
1.907 tonsFeb - YTD
81,2 tonsMar - YTD
183,8 tonsJul - YTD
Presence
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Presence
Northeast: So JooThe most expected party in the region, wmillions of consumers that party with refoods.
North: Festival de ParintinsStrong folklore competitionbetween Caprichoso & Garantidoteams (oxes) in the North region,with strong link with consumerspassion.
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NewConsumption
Sector
Nestl onthe move
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Currently serving 238.000 Point Of Sales1 million additionaSales to serve mo
Nestl
DAN
Wholesaler
Broker
KeyAccount
NewConsumption
Sector
SmallRetail
Streetvendor
Do
New modTraditional business model
Im
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Nestl New Consumption Sec
CDE Partnerships FNCC
Nestl CommunityCenter
Im
N
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Results of one N
Net Sales: Jan
Improved 60%
50 sales repre
28.000 homes
Status:
N
* Ne
NC
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Nestl At Voc
+ +
Street vendors in pubtransit places where are.
One coin concepts (R
Description: Street vendors selling ice-pops
One coin concepts (R$ 0,50)
Description:
Geladinho
NC
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Casas Bahia
The largest retail store in Brazil
Represents 30% all home appliance sales in Brazil
Net sales of US$ 3,5 billion
90% belong to CDE classes 503 Stores
Description:
Nestl Store at Casas Bahia
Food Baskets
Sale of Nestlfood baskets
60 million bask
Description:
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Nestl onthe move
OperationalEfficiency
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NBS* LATAM will be located in Ribeiro Preto and will prov
7 regions 21countries
Brasil
Mxico
Ex-Andean
Bolivariana
Caribe
Amrica Central
Ex-Plata
- M
- Tw
- No
- Br
- 21
- Cu
- Se(e
MaiShared Services CenterLATAM
Savings: 10 Mio CHF
*Nestl Business Center
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Nestl Braz
Passion to Gr
Sao Paulo, December