Professional Documents
Culture Documents
2005 full year results conference call - February 2006 Name of chairman
2005: Delivering The Nestle Model:
Improvement in key performance measures
2 2005 full year results conference call - February 2006 Name of chairman
Disclaimer
3 2005 full year results conference call - February 2006 Name of chairman
Restatement of 2004 results
4 2005 full year results conference call - February 2006 Name of chairman
Product groups: organic growth above 5-6% target
12%
10.4 10.2
10
8.2
8
6.7 6.2
6.2
6 5.4 5.2
4.4 4.5
4 3.5 3.2
2.5 2.6
2
0
04 05 04 05 04 05 04 05 04 05 04 05 04 05
Beverages Milk products, Prepared Chocolate, PetCare Pharma Group
Nutrition and dishes and confectionery
2005 Ice cream cooking aids and biscuits
sales 23.8 23.2 16.7 10.8 10.6 6.0 91.1
CHFbn
5 2005 full year results conference call - February 2006 Name of chairman
Zones: organic growth - broad based improvement
12% 11.6
10.4
10
8.6
8 7.7 7.8
6.9 6.6 6.2
6
4.5
4
2 2.0
0.6
0
-0.4
-2
04 05 04 05 04 05 04 05 04 05 04 05
2005
sales America Europe AOA Water Other activities Group
CHFbn 30.8 27.6 15.7 8.8 8.2 91.1
6 2005 full year results conference call - February 2006 Name of chairman
P&L to EBITA: savings compensate cost pressures
2004 restated following the first applicationod IFRS Share-based Payment and the discontinued
operation resulting from the announcement made in December 2005 for the Chilled Dairy activities in
Europe, where applicable.
7 2005 full year results conference call - February 2006 Name of chairman
EBITA influencers
Positive Negative
• Currencies • China
• Efficiency savings • Input costs
• Pharma: Alcon • Russian confectionery
• Portfolio optimisation • Share based payments
• Strong RIG • UK confectionery
8 2005 full year results conference call - February 2006 Name of chairman
Evolution of EBITA margin
13.1
Market Operational
Mix activities
+ 30 - 20
12.9
2005
12.8 12.8
Currencies Share based Portfolio
payments optimisation
12.7 + 10
- 10 + 10
2004 12.7
9 2005 full year results conference call - February 2006 Name of chairman
Product groups: EBITA margins (2004 restated)
30.7
27.4
20
% margin
17.7
17.2
15 14.5 14.3
12.1
12.8 12.7 12.9
12.1
11.2 11.2 11.3
10
0 04 05 04 05 04 05 04 05 04 05 04 05 04 05
Beverages Milk, Nutrition Prep. dishes & Choc., confect. PetCare Pharma Group
EBITA Ice cream cooking aids and biscuits
CHF bn 4.1 2.6 2.1 1.2 1.5 1.8 11.7
10 2005 full year results conference call - February 2006 Name of chairman
P&L: EBITDA to Net profit
2004 restated following the first applicationod IFRS Share-based Payment and the discontinued operation resulting from the announcement
made in December 2005 for the Chilled Dairy activities in Europe, where applicable.
11 2005 full year results conference call - February 2006 Name of chairman
Cash flow and financial position remain strong
+11.8% CAGR
CHF
per 9
share
9.0
8
8.0
7
7.0 7.2
6 6.4
5
4
3
2
1
0
2001 2002 2003 2004 2005
13 2005 full year results conference call - February 2006 Name of chairman
Actively managed capital structure benefits
shareholders: cash returns
CHF 7.0 Share buy back
bn 10.2 Net d 6.2
eb t
6.0 Dividend
9.6
5.0 2.6
4.5 +39%
4.0
+59% 1.4
3.0 2.8
2.0
3.1 3.6
1.0
0
2004 2005 2006*
2005 full year results conference call - February 2005 Name of chairman
Roadshow agenda
• Key financials
• 2006 outlook
16 2005 full year results conference call - February 2006 Name of chairman
Conclusion: successful delivery of
The Nestlé Model
17 2005 full year results conference call - February 2006 Name of chairman
Background slides
2005 full year results conference call - February 2005 Name of chairman
2005 tax rate & underlying earnings per share*
Underlying EPS
• increased 12.9% to CHF 21.25
The tax charge used for this calculation is adjusted for the
tax effect of the excluded items (underlying tax charge).
20 2005 full year results conference call - February 2006 Name of chairman
Primary reporting: 2005 RIG and organic growth
10.4
10 9.5
8.6
8 7.8
6.6
6 5.4
4
3.0
2 2.0
0.2
0
25
21.6
20
17.3 16.7
15 14.9 15.3
12.8 11.8
10
8.3 8.1
0 04 05 04 05 04 05 04 05 04 05
0.2
0
Beverages Milk products, Prepared Chocolate, PetCare Pharma
Nutrition dishes and confectionery
and Ice cream cooking and biscuits
Sales aids
CHF bn 23.8 23.2 16.7 10.8 10.6 6.0
23 2005 full year results conference call - February 2006 Name of chairman
Operating and free cash flow - includes
CHF600mn extra contribution to certain pension funds in 2005
CHF billion
12
10.41
10.25 10.21
10 10.13
8.61
8
0
2001 2002 2003 2004 2005
70
Days
60 56
50 47 47
50 46
40
30
20
10
0
2001 2002 2003 2004 2005
25 2005 full year results conference call - February 2006 Name of chairman
Net indebtedness
CHF billion
25
20 19.4
15 15.0
14.4
10 10.2 9.6
5
0
2001 2002 2003 2004 2005
27 2005 full year results conference call - February 2006 Name of chairman
Evolution of Group's factories
2005
28 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in the zones
2005 RIG OG
% %
29 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Europe (Food):
- Key Markets
2005 RIG OG
% %
30 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in the Americas (Food):
- Key Markets
2005 RIG OG
% %
31 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in AOA (Food):
- Key Markets
2005 RIG OG
% %
32 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Nestlé Waters
2005 RIG OG
% %
33 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Other activities
2005 RIG OG
% %
JVs including:
- CPW 3.5 5.6
- Galderma 2.1 6.4
34 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Beverages
2005 RIG OG
% %
35 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Milk products,
Nutrition & Ice Cream
2005 RIG OG
% %
36 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Prepared dishes and
Cooking aids
2005 RIG OG
% %
37 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in Chocolate,
Confectionery & Biscuits
2005 RIG OG
% %
38 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in PetCare
2005 RIG OG
% %
39 2005 full year results conference call - February 2006 Name of chairman
RIG and organic growth in FoodServices
2005 RIG OG
% %
40 2005 full year results conference call - February 2006 Name of chairman
2005 full year results conference call
2005 full year results conference call - February 2006 Name of chairman