The Year in Review 2013 1 Group Highlights
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The year Contents in review 2 Group highlights Accompanying reports 4 Our business context Perspective for change 5 The Nestlé Roadmap to Good Food, Good Life Annual 2013 Report 6 Growth drivers 2013 14 Competitive advantages 22 Operational pillars 30 Building for the future 36 Partnerships Annual Report 2013 Nestlé in society 2013 Nestlé in society Creating Shared Value and meeting our commitments 2013 Nestlé in society Creating Shared Value and meeting our commitments 2013 All sections should be read in connection with the Consolidated Financial Statements of the Nestlé Group 2013. All 2012 figures have been restated following the accounting changes described in Note 1 – Accounting policies (page 89), and adjusted following the final valuation of the Wyeth Nutrition acquisition (page 140). The year Contents in review 2 Group highlights Accompanying reports 4 Our business context Perspective for change 5 The Nestlé Roadmap to Good Food, Good Life Annual 2013 Report 6 Growth drivers 2013 14 Competitive advantages 22 Operational pillars 30 Building for the future 36 Partnerships Annual Report 2013 Nestlé in society 2013 Nestlé in society Creating Shared Value and meeting our commitments 2013 Nestlé in society Creating Shared Value and meeting our commitments 2013 All sections should be read in connection with the Consolidated Financial Statements of the Nestlé Group 2013. All 2012 figures have been restated following the accounting changes described in Note 1 – Accounting policies (page 89), and adjusted following the final valuation of the Wyeth Nutrition acquisition (page 140). Nestlé in 2013 – some highlights Nestlé in society Nestlé Nutrition PetCare © 2014, Nestlé S.A., Cham and Vevey (Switzerland) 10 7789 Policy FTSE4Good The year in review report contains forward looking statements which +8.2% +6.8% We have added 10 new We renovated 7789 products We remain the only infant reflect Management’s current views and estimates. The forward looking organic growth; organic growth; commitments in nutrition, for nutrition or health formula manufacturer statements involve certain risks and uncertainties that could cause actual water, rural development, considerations changes included in FTSE’s responsible We have renewed our results to differ materially from those contained in the forward looking sustainability and compliance investment index, based statements. Potential risks and uncertainties include such factors as Wyeth Nutrition double-digit growth in nutritional policies to drive on our performance in the further reduction of salt, general economic conditions, foreign exchange fluctuations, competitive successfully integrated emerging markets human rights, labour rights, product and pricing pressures and regulatory developments. sugars, saturated fats and responsible marketing trans fats in our products of breast-milk substitutes The brands in italics are registred trademarks of the Nestlé Group. and more Nescafé Dolce Gusto KitKat Visual concept and design No1 chocolate brand in Japan, Nestec Ltd., Corporate Identity & Design with messi&schmidt Present in roll-out continues in Brazil Photography 73 countries +8.9% Interlinks Image – cover, Nestlé S.A. Production new machines, new flavours organic growth 167 billion Leader – 33% Top 3 Genoud Entreprise d’arts graphiques SA (Switzerland) We provided over 167 billion We were ranked number We reduced overall water In March 2013, we were Paper servings of fortified products one by the charity Oxfam in withdrawals per tonne ranked one of the top 3 This report is printed on Lessebo Smooth White, a paper produced its 2013 scorecard, Behind of product by one-third global food and beverage from well-managed forests and other controlled sources certified Western Europe Africa the Brands. The survey since 2005 manufacturers in the Access by the Forest Stewardship Council® (FSC). North America recorded scored 10 food and beverage to Nutrition Index Swiss Climate companies on their efforts to climateneutral both regions double-digit improve food security printing SC2014020702 • www.swissclimate.ch grew real internal growth organic growth in challenging environments Nestlé Pure Life India 300 000 Number 1 66 594 –7.4% double-digit Maggi We trained 300 000 farmers We achieved leadership We reduced 66 594 tonnes We achieved an absolute growth in emerging markets 2-minute noodles bring through capacity-building for our industry group in the of packaging material, reduction in direct GHG increased good taste, but programmes Dow Jones Sustainability saving CHF 158 million emissions of 7.4% since 2005 reduced salt, MSG and Index 2013, and achieved trans fats to millions the maximum score in the of consumers CDP Climate Performance Leadership Index Dairy S.Pellegrino near 30% dynamic share of senior milks sector global growth in China Nestlé in 2013 – some highlights Nestlé in society Nestlé Nutrition PetCare © 2014, Nestlé S.A., Cham and Vevey (Switzerland) 10 7789 Policy FTSE4Good The year in review report contains forward looking statements which +8.2% +6.8% We have added 10 new We renovated 7789 products We remain the only infant reflect Management’s current views and estimates. The forward looking organic growth; organic growth; commitments in nutrition, for nutrition or health formula manufacturer statements involve certain risks and uncertainties that could cause actual water, rural development, considerations changes included in FTSE’s responsible We have renewed our results to differ materially from those contained in the forward looking sustainability and compliance investment index, based statements. Potential risks and uncertainties include such factors as Wyeth Nutrition double-digit growth in nutritional policies to drive on our performance in the further reduction of salt, general economic conditions, foreign exchange fluctuations, competitive successfully integrated emerging markets human rights, labour rights, product and pricing pressures and regulatory developments. sugars, saturated fats and responsible marketing trans fats in our products of breast-milk substitutes The brands in italics are registred trademarks of the Nestlé Group. and more Nescafé Dolce Gusto KitKat Visual concept and design No1 chocolate brand in Japan, Nestec Ltd., Corporate Identity & Design with messi&schmidt Present in roll-out continues in Brazil Photography 73 countries +8.9% Interlinks Image – cover, Nestlé S.A. Production new machines, new flavours organic growth 167 billion Leader – 33% Top 3 Genoud Entreprise d’arts graphiques SA (Switzerland) We provided over 167 billion We were ranked number We reduced overall water In March 2013, we were Paper servings of fortified products one by the charity Oxfam in withdrawals per tonne ranked one of the top 3 This report is printed on Lessebo Smooth White, a paper produced its 2013 scorecard, Behind of product by one-third global food and beverage from well-managed forests and other controlled sources certified Western Europe Africa the Brands. The survey since 2005 manufacturers in the Access by the Forest Stewardship Council® (FSC). North America recorded scored 10 food and beverage to Nutrition Index Swiss Climate companies on their efforts to climateneutral both regions double-digit improve food security printing SC2014020702 • www.swissclimate.ch grew real internal growth organic growth in challenging environments Nestlé Pure Life India 300 000 Number 1 66 594 –7.4% double-digit Maggi We trained 300 000 farmers We achieved leadership We reduced 66 594 tonnes We achieved an absolute growth in emerging markets 2-minute noodles bring through capacity-building for our industry group in the of packaging material, reduction in direct GHG increased good taste, but programmes Dow Jones Sustainability saving CHF 158 million emissions of 7.4% since 2005 reduced salt, MSG and Index 2013, and achieved trans fats to millions the maximum score in the of consumers CDP Climate Performance Leadership Index Dairy S.Pellegrino near 30% dynamic share of senior milks sector global growth in China Nestlé in 2013 – figures Group sales Organic growth CHF 92.2 billion 4.6% +2.7% Real Internal Growth 3.1% Trading operating profit Trading operating profit margin CHF 14.0 billion 15.2% +20 basis points Earnings per share Underlying earnings per share CHF 3.14 +11.0 % constant currencies Operating cash flow Working capital improvement CHF 15.0 billion +CHF 1.4 billion Proposed dividend Proposed dividend increase CHF 2.15 +4.9% Outlook Last year was challenging and 2014 will likely be the to last year and again weighted to the second half, same. We will continue to be disciplined in driving outperforming the market, with growth around 5% our performance in line with the Nestlé Model and improvements in margins, underlying earnings of profitable growth and resource efficiency. We per share in constant currencies and capital efficiency. therefore expect our 2014 performance to be similar The year in review 2013 1 Group highlights February March April A survey by the that all companies The new Access provide consumers Nestlé Health and promotes Oxfam charity need to improve, to Nutrition Index, with access to Science acquired evidence which scored us No. 1 something we are supported by the nutritious products. Pamlab, a US-based can directly out of 10 food working towards Bill and Melinda The top three company that offers affect disease and beverage through our rural Gates Foundation companies are medical foods, by management companies on their development and the Wellcome separated by 0.2 on prescription,