Nestlé S.A. (OTCPK:NSRGY) Q4 2020 Results Earnings Conference Call February 18, 2021 8:00 AM ET Company Participants Luca Borlini - Head, IR Mark Schneider - CEO François Roger - EVP & CFO Conference Call Participants Richard Taylor - Morgan Stanley Bruno Monteyne - Bernstein Warren Ackerman - Barclays Celine Pannuti - JPMorgan Guillaume Delmas - UBS Jon Cox - Kepler David Hayes - Societe Generale Jean-Philippe - Vontobel James Targett - Berenberg Operator Good afternoon and good morning to everyone. Welcom ...

27 ‍Nestle Good food, Good life Full-year results 2020 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 | | | materially from those contained in the forward looking statements. Potential | | | risks ...

Financial Data and Key Metrics Changes - Total sales for the first half were CHF 41.2 billion, with organic growth of 2.8% and an underlying trading operating profit margin of 17.4%, an increase of 30 basis points [20][21] - Underlying EPS grew by 0.5% on a constant currency basis, while total reported sales decreased by 9.5% due to divestitures and foreign exchange impacts [22][55] - Organic sales growth for the full year is expected to be in the range of 2% to 3%, reflecting the impact of the COVID-19 crisis on the out-of-home business [18][19] Business Line Data and Key Metrics Changes - E-commerce saw exceptional growth of almost 50%, now accounting for 12.4% of total sales compared to 8.5% in 2019 [24] - Purina PetCare reported strong growth, with a mid-single-digit growth rate in North America, driven by e-commerce and premium brands [29] - The water business reported negative growth due to reduced sales in the out-of-home channel, while international premium brands in the U.S. saw positive growth [30] Market Data and Key Metrics Changes - Organic growth in developed markets was 4.1%, while emerging markets grew by 1.1%, with strong performances in Brazil, the Philippines, Russia, and India [27][38] - The Americas continued to see strong momentum, with North America experiencing significant consumer stockpiling [26][31] - The out-of-home channel, which accounted for around 10% of group sales, saw a sharp decline, bottoming out at around minus 60% in April [25] Company Strategy and Development Direction - The company is focusing on portfolio transformation towards more profitable growth areas, including Nestlé Health Science and PetCare [7][14] - A new strategy for Nestlé Waters emphasizes premium mineral water brands and functional water products, aiming for improved growth and profitability [9][14] - The company remains committed to sustainability and health, with a focus on plant-based nutrition and the immune system [11][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the extraordinary challenges posed by the COVID-19 pandemic but emphasized the resilience of the business model [5][6] - The company expects gradual recovery in the out-of-home business, but it will take time, likely not returning to pre-COVID levels in 2020 or 2021 [78] - Management expressed confidence in the long-term growth potential of emerging markets, viewing them as key growth platforms [28] Other Important Information - COVID-19-related costs amounted to CHF 290 million, including bonuses for frontline workers and safety protocols [51] - The company has been disciplined in capital allocation, with free cash flow of CHF 3.3 billion in the first half [56] - The Always Open For You initiative has provided support to foodservice partners, with around one-third of the planned CHF 500 million utilized by the end of Q2 [57] Q&A Session Summary Question: Can you talk about your rollout plans for bottled coffee in China? - Management confirmed commitment to expanding the ready-to-drink coffee category, particularly in China and other regions, with Nescafé as the main brand [63][65] Question: What is the outlook for pet food growth? - Management reported strong growth in pet food, driven by e-commerce and market share gains, with ongoing focus on premiumization and innovation [69][70] Question: How do you see the out-of-home business recovering? - Management indicated that recovery will take time, with gradual improvements expected but not returning to pre-COVID levels in the near term [78] Question: What is the reason for the wide range in organic growth guidance? - Management explained that the guidance reflects the current uncertainties around COVID-19, emphasizing the importance of providing financial stability [71][74] Question: Can you provide insights on pricing improvements? - Management clarified that improved pricing in Q2 was not due to lower promotions but rather stable pricing strategies [105] Question: What is the company's stance on future divestments? - Management stated that while they are open to divestitures if it makes sense, they are also focused on building the business through acquisitions [106]

‍Nestle Good food, Good life Half-year results 2020 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 | | | materially from those contained in the forward looking statements. Potential | | | risks and ...

Nestlé S.A. ADR (OTCPK:NSRGY) Q4 2019 Results Earnings Conference Call February 13, 2020 8:00 AM ET Company Participants Luca Borlini - Head of Investor Relations Mark Schneider - Chief Executive Officer François-Xavier Roger - Executive Vice President and Chief Financial Officer Conference Call Participants Warren Ackerman - Barclays Capital Celine Pannuti - J.P. Morgan Securities Richard Taylor - Morgan Stanley Jon Cox - Kepler Cheuvreux James Targett - Berenberg David Hayes - Société Générale Jean-Philip ...

‍Nestle Good food, Good life Full-year results 2019 Investor Call 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 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 pri ...

Half-year results 2019 1 | July 26, 2019 | Nestlé half-year results 2019 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 materially from those | | | contained in the forward looking statements. Potenti ...

Nestle SA (OTCPK:NSRGY) Q2 2019 Earnings Conference Call July 25, 2019 8:00 AM ET Company Participants Luca Borlini - Head, IR Mark Schneider - CEO François Roger - EVP & CFO Conference Call Participants Celine Pannuti - JPMorgan Chase & Co. Warren Ackerman - Barclays Bank Jean-Philippe Bertschy - Vontobel Alan Erskine - Crédit Suisse Jon Cox - Kepler Cheuvreux Alain Oberhuber - MainFirst Bank Pierre Tegnér - ODDO John Ennis - Goldman Sachs Group David Hayes - Societe Generale Andreas von Arx - Baader Jerem ...

‍Nestle Good Food, Good Life Delivering results with a long-term winning strategy Mark Schneider: Chief Executive Officer, Nestlé, S.A. 1 | February 25, 2019 | CECP Conference, New York 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 materially from those contained in the forward looking statements. Potential risks and uncer ...

Growth & Performance - Nestlé USA experienced revived organic growth, increasing from 0.2% in 2017 to 2.6% in 2018[8] - Total USA sales reached $28 billion, representing 30% of global sales[8] - E-commerce accounts for 9% of total sales, setting the direction for traditional pure play and bricks-to-clicks models[29] Strategic Priorities - The company focuses on three priorities: Growth, Capabilities, and People & Culture[16, 57] - The company is fueling a hybrid growth model by reimagining the base business, transforming the portfolio, and pursuing new innovation models[17] - Fundamentals as a growth driver include consumer relevance, execution, investment, and innovation[19] Portfolio Transformation - The company is divesting businesses with a low ability to win, representing 6% of the portfolio[40] - The company is acquiring leverageable growth platforms, with acquired brands growing at a double-digit rate[42] Innovation & Capabilities - The company is pursuing new innovation models through internal incubators, open innovation, and crowdsourcing[54] - Organizational redesign, portfolio management, lean supply chain, revenue management (>$600 million savings 2016-2020), and shared service optimization are key capabilities[59]