Slides
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Nestlé CAGNY 2025 Laurent Freixe, CEO, Nestlé Steve Presley, CEO, Zone Americas
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February 21, 2025 CAGNY - 20252 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.
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February 21, 2025 CAGNY - 20253 Accelerating Nestlé Zone Americas in action Key takeaways
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February 21, 2025 CAGNY - 2025 Number of employees 277 000 R&D spend CHF 1.7 bn Factories 337 12% Prepared dishes & cooking aids Powdered & Liquid Beverages 27% PetCare 21% Nutrition & Health Science 17% Milk products & ice cream 11% Confectionery 9% Water 3% Americas 49% Europe 24% AOA 27% Total Nestlé Group, including all businesses
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February 21, 2025 CAGNY - 2025 within reach for billions of everyone, everywhere at every stage of life for people & pets and address key consumer needs through food, nutrition & beverages backed by science-based innovation
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Solid 2024 performance, increasing growth and investment in 2025 February 21, 2025 CAGNY - 20257 2024 actual 2025 guidance* Organic sales growth 2.2% Improving compared to 2024 4%+ in normal market conditions 17.2% At or above 16% as we invest for growth 17.0%+ Medium-term guidance Underlying trading operating profit margin * Guidance assumes no significant change in key macroeconomic variables
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February 21, 2025 CAGNY - 2025 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value Efficiency & productivity Investment for growth Value creation
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‘Fuel for Growth’, CHF 2.5bn savings by 2027 February 21, 2025 CAGNY - 2025 Phasing of savings, CHF bn 1.4 2.3 2.5 2025 2026 2027 2028 0.7 Non-recurring Recurring Procurement • Spend consolidation & aggregation • AI-powered procurement and supplier management • e-sourcing expansion and automation Operational efficiency • Manufacturing and logistics • Operating model Commercial investments • Promotions, price, assortment, product returns Sources of savings 2.5 CHF bn
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February 21, 2025 CAGNY - 2025 • Expand winners • Scale big bets • Build new growth platforms • Address underperformers Accelerate category growth Improve market share Nestlé category growth Nestlé organic growth 3-4% 4%+
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February 21, 2025 CAGNY - 2025 • Strengthen our global platforms - Coffee: out of home, ready to drink - PetCare: AOA & LATAM, therapeutics & supplements • Expand most successful brands - KitKat, Maggi • Increase exposure to growing channels - E-commerce, convenience, value retailers
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February 21, 2025 CAGNY - 2025
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February 21, 2025 CAGNY - 2025 Opportunities capturing emerging global themes, shaped by consumer needs • Weight management and GLP-1 companions • Nutrition for women’s health • Healthy longevity • Affordable diet
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February 21, 2025 CAGNY - 2025 Irresistible product superiority Unbeatable value Unmissable visibility Compelling brand communications Winning value proposition Status for 18 key underperformers before corrective actions Examples of improvement Wyeth – Greater China Frozen pizza – US Coffee creamers – US Soluble coffee – Europe
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February 21, 2025 CAGNY - 202515 • Updated strategy • Organizational changes implemented - Zone structure and reporting lines simplified - Waters & premium beverages reorganized - Digital & sustainability elevated • Cascaded the execution plans - Operational Master Plan (OMP)
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Steve Presley Zone Americas
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February 21, 2025 CAGNY - 2025 Factories 121 Countries 24100 K Employees Billionaire brands 27 sales in leadership position ~70% 20% Coffee incl. Nespresso & enhancers 5% Professional 30% Petcare 7% Confectionery 8% Nutrition 1% Ice Cream 13% Food incl. DCS* 3% Dairy incl. US RTD Health science 10% Water 3% NA 72% LATAM 28% Note: Nestlé in the Americas, includes Zone & globally managed businesses; All figures refer to FY-2024; *DCS Dairy culinary solutions
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February 21, 2025 CAGNY - 2025 Dinner Out-of-homeBreakfast LunchSnacking Indulgent moments
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February 21, 2025 CAGNY - 202519 +6.3% 6-year average OG 2019-2024 Nestlé’s largest business >21.0% UTOP margin CHF 45 bn FY-2024 sales Well positioned to capture future growth via • Leadership in high-growth/-potential categories (coffee, pet) • Exposure to emerging economies with growing middle class • Young consumers passionate about food & beverage and pets Note: Nestlé in the Americas, includes Zone & globally managed businesses
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February 21, 2025 CAGNY - 2025 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value Efficiency & productivity Investment for growth Value creation
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February 21, 2025 CAGNY - 2025 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value Efficiency & productivity Investment for growth Value creation
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February 21, 2025 CAGNY - 202522 • Leverage scale across group (e-sourcing, supplier management) • End-to-end design to value • Total commercial spend optimization implementation • Reduction of non-working spend • Enterprise business planning (planning intelligent center) • Streamlined operating model (shared service expansion)
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February 21, 2025 CAGNY - 2025 NCE = Nestlé Continuous Excellence, CSV = Creating Shared Value Efficiency & productivity Investment for growth Value creation
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February 21, 2025 CAGNY - 202524
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February 21, 2025 CAGNY - 202525
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February 21, 2025 CAGNY - 202526 Deep consumer insights World class R&D *@currency exchange rate excluding Venezuela
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February 21, 2025 CAGNY - 202527 Total addressable market: >CHF 5 bn >20% Average OG Pro Plan veterinary diets & supplements sales U.S.
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February 21, 2025 CAGNY - 202528 Serving consumer needs with Vet Direct D2C Collaborating with key opinion leaders Tailored innovation with world-class R&D
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February 21, 2025 CAGNY - 202529
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February 21, 2025 CAGNY - 202530 Note: Nestlé in the Americas, includes Zone & globally managed businesses FY 2024 @constant exchange rate excl. Venezuela & NWNA Divestment 1. e-intensity defined as % of sales via e-commerce channels 2. Source: Euromonitor 2024 Consistent double-digit growth expected 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 CPG E-Commerce Sales (Global)2
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February 21, 2025 CAGNY - 202531 Irresistible “product” superiority Setting new standards for product experience on mature markets & winning categories (Pet & Coffee) Unmissable Visibility In developing markets scale learnings fast and be brilliant at the basics Accelerate eB2B across traditional trade, with market coverage and engagement Pilot frontier practices ✓ Gen AI content ✓ AI agents ✓ e-SRM
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February 21, 2025 CAGNY - 202532
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February 21, 2025 CAGNY - 202533 Consumer trends More consumption occasions Refreshment Personalization More consumers Gen Z entering coffee 4 years earlier Note Nestlé in the Americas; Results FY 2024 (Coffee & Coffee Enhancers) 1: Market share incl. Nespresso & excl. RTD NA and R&G Latam Performance 9.8 bn 2024 sales, CHF 8.9% 6-year average OG (2019-24) 36% Market share in-home1
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February 21, 202534 • Irresistible product superiority • Hacking iced coffee creations with easy customisation • Multi-market launch in Z-AMS CAGNY - 2025
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February 21, 202535 Market expansion 2/3 Gen Z index Of volume incremental Share in L4 weeks 332 Results 8% Source: Circana week ending 02/02/25; SS Liq Concentrate – Coffee *includes Nescafe & SBUX Concentrate CAGNY - 2025 U.S. launch Irresistible product superiority Unmissable Visibility Compelling brand communications
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February 21, 2025 CAGNY - 202536
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February 21, 202537 Value Imbalance Pricing pressure from commodities Unbeatable Value ✓ 95% of portfolio in $4-6 price range ✓ Leveraging breadth of the portfolio CAGNY - 2025 Actions Diagnosis +15% Above category pricing 21-23 Source: Circana Average price vs. rest of market 2021-2023 period
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February 21, 202538 Irresistible product superiority CAGNY - 2025 Diagnosis Actions Peak Covid demand Significant simplification of portfolio & innovation deceleration -25% Total distribution points chg. 2019-’23 Reigniting innovation Source: Circana Average Weekly Total Points of Distribution 2023 vs. 2019 Unbeatable value Compelling brand communications Unmissable visibility Investing in generating demand Fixing value slopes and price gaps Focus on taste preference
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February 21, 2025 CAGNY - 202540 Creating ‘Fuel for Growth’ Investing to accelerate performance Organization aligned Moving fast to change Nestlé