Nestle India Limited

(CIN : L15202DL1959PLC003786)
Nestle House
Jacaranda Marg Good Food, Good Life
'M'Block, DLF City, Phase - II
Gurugram -122002, Haryana
Phone 0124 - 3940000
E-mail: investor@IN.nestle.com
Website www.nestle.in

BM:PKR:41:22 28.07.2022
BSE Limited
Phiroze Jeejeebhoy Towers
Dalal Street, Fort,
Mumbai - 400 001
BSE Scrip Code: 500790
Subject : Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
("Listing Regulations"): Presentation for Earnings Call with Analysts/ Investors on Unaudited
Financial Results for the second quarter and half year ended 30 th June 2022

Dear Madam/ Sir,

Further to our letter BM:PKR:35:22 dated 8th July 2022, intimating about Earnings Call with Analysts/ Investors on
unaudited financial results of the Company for the second quarter and half year ended 30th June 2022 and in terms of
the requirement of Regulation 30 read with Part A of Schedule Ill of the Listing Regulations, please find enclosed
herewith the presentation to be made to the Analysts/ Investors at the meeting scheduled to be held today at
4:00 P.M. (1ST) and the same is also being uploaded on the website of the Company.
The recording and transcript of the Earnings Call thereof will be uploaded on the website of the Company www.nestle.in
and the Stock Exchange, as prescribed under the Listing Regulations.
This is for your information and further dissemination.

Thanking you,
Yours very truly,
NESTLE INDIA LIMITED

~'
B. MURLI /
GENERAL COUNSEL & COMPANY SECRETARY
Encl. : as above

Regd . Office: 100 / 101 , World Trade Centre, Barakhamba Lane, New Delhi - 11 O 001
Unwavering Commitment,
Resilient Journey,
Promising Horizons!

Nestlé India
Half Year
Earnings Call
28 July 2022
 • Except for the historical financial information contained herein, this presentation may contain statements
which reflect Management’s current views and estimates and could be construed as forward-looking

Disclaimers statements. You are cautioned not to place undue reliance on these forward-looking statements, which holds
only as of the date.
• The future involves uncertainties and risks that could cause actual results to differ materially from the current
views being expressed.
• Potential uncertainties and risks include but are not limited to factors such as changes in general economic,
political or market conditions, commodities and currency fluctuations, competitive product and pricing
pressures, industrial relations and regulatory developments.
• Significant disruptions in the operations due to unforeseen events (including as a result of the spread of
disease)
• Volume and Mix and Organic Growth (OG) are basis Nestlé Internal Reporting Standards.
• Figures are regrouped / reclassified to make them comparable.
• Calculations are based on non-rounded figures.
• ‘Analytical data’ are best estimates to facilitate understanding of business and NOT meant to reconcile
reported figures.
• Answers to Questions may be given basis generally available information in public domain.
• No person is authorized to give any information or to make any representation not contained in and not
consistent with this presentation and, if given or made, such information or presentation must not be relied
upon as having been authorized by or on behalf of Nestlé India Limited.

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Agenda

Unwavering Commitment,
Resilient Journey,
16:00 - 16:30 Promising Horizons!
By
Suresh Narayanan

16:30 - 17:15 Q&A

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Unwavering
Commitment,
Resilient Journey,
Promising Horizons!
By
Suresh Narayanan

Nestlé
Nestlé India Half-Year Earnings
India Half-Year Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Key Takeaways Last Time

Sustainable volume led Sustainable Implemented future Sustainable initiatives at the core
growth performance ready plans for our people of being a force for good

Strong value growth across Innovation continues to Strong commitment to Immediate concerns on
rural and urban India be an engine of growth transform using data inflation, while the road
and analytics looks promising

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference
 What We Will Go Through Today…

Financial Highlights On the

– H1’22 Horizon

Purina
Pet care

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference
 Financial
Highlights

Nestlé
Nestlé India Half-Year Earnings
India Half-Year Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Key Highlights: Sales Growth Robust;
Profit From Operations Impacted

Total Sales Profit from Operations# Net Profit Earnings Per Share (EPS)

22.8%
95 35 0.3
35 50.0

190

19.6%
30.0
90

Growth
30

16.2%
30

0.2 170
10.0

13.9%
85

12.7% (10.0)

Growth
80 25 150
25

0.2
(30.0)

75

20
Growth 130
(2.7%)
(2.9%)
20 (50.0)

70

Growth
0.1 110
(70.0)

(2.7%)
65 15
15

(90.0)

90

60

0.1
(110.0)

10
10

70

70.6 79.6 16.1 15.6 11.4 11.1 118 115

55

(130.0)

50 5 - 50
5 (150.0)

H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022

Profit from Operations (INR Bio) Net Profit (INR Bio)

Total Sales (INR Bio) % of Sales % of Sales (Reported) Earnings Per Share (INR)

#Profit
from Operations is derived from Profit before Tax less Other Income and adding back Finance Costs (Including Interest Cost on Employee Benefit Plans), Net Provision For
Contingencies (Others), Corporate Social Responsibility Expense and Exceptional Items.

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Sustained Volume & Mix Led Growth
In Steep Inflation Context

600 600

500 500

CAGR
400 400

300
2017-22 300

200

8.1% 200

100 100

382 424 457 468 520 274 136.9 137.3

- -

2017 2018 2019 2020

#
2021 H1
2022
Engine of growth continues Q1-22 Q2-22

Domestic Vol ('000 Tons)

to be penetration led Domestic Vol ('000 Tons)
volume growth

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Strong Value Growth

150

8.2 10.9 10.9 8.5 10.7 13.3

130

5.0

130

110

(25.0)

110

CAGR
2017-22 16.4
90

(55.0) 20.0

90

70
(85.0)
70

10.2

50
(115.0)
9.7% 50

30
(145.0)
30

95 105 117 126 140 76 37.9 38.5

10 (175.0) 10 (10.0)

2017 2018 2019 2020 2021 H1 Q1-22 Q2-22

Domestic Sales (Bio)
2022 If growth is weakened, the Domestic Sales (Bio)
Reported Growth % future is compromised! Reported Growth %

Consumer Pricing for H1 : 6.3%

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Strong Momentum In Mega Cities And Metros!

Mega City Metro

30.0
28.0 140 19.5 18.1
140 15.4 16.1 14.6
13.6 15.9 20.0

9.9 12.0 18.0 120 8.3 7.5

120 8.7 6.3 10.0
(5.9) (6.3) 8.0
100 (7.1) 100
-
(2.0)
80
80 (10.0)
(12.0)
60
60 (20.0)
(22.0)
40 (30.0)
40
(32.0)
20 (40.0)
20 (42.0)
100 97 102 98 109 110 114 114 100 100 107 101 108 107 126 116
0 (50.0)
0 (52.0)

Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22

NNS (Indexed to Q3 2020) OG% NNS (Indexed to Q3 2020) OG%

Town Class based on population

Mega City > 40L Metro >=10L & <40L

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Small Town Accelerates, Strong Uptick In Rural!

TC1 TC 2-6 Villages

30.0 30.0 30.7
140 140
15.9 17.0 16.6 140 15.0 30.0
13.7 14.8 14.2 15.5 20.0 13.7 14.0 20.0 21.0
12.3 10.7
120 120 9.1 9.8 15.0 20.0
6.7 5.7 120 12.0 12.0 10.0
4.3 10.0 10.0 9.0
100 10.0
100
- - 100
-
80 80 80
(10.0) (10.0)
(10.0)
60 60 60
(20.0) (20.0)
(20.0)
40 40
(30.0) 40
(30.0)
(30.0)

20 20
(40.0) 20
(40.0) (40.0)
100 99 105 99 106 103 120 115 100 96 107 104 117 109 119 119 100 100 112 111 110 109 129 144
0 (50.0)0 (50.0)
0 (50.0)
Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22

NNS (Indexed to Q3 2020) OG% NNS (Indexed to Q3 2020) OG% NNS (Indexed to Q3 2020) OG%

Town Class based on population

TC 1 >=1L & <10L TC 2-6 <1L Villages: 70%+ population occupation is agriculture

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Unprecedented Commodity Headwinds,
2022 Inflation - 5X Of Trend

3% 15%
2021

CAGR 2018- 2022

2020

5%

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Profit From Operations
Impacted By Commodity Headwinds

40.0

24.0

22.2
21.7
52 52

21.1
35.0

21.0 22.0

42
19.6 42

CAGR
20.0 30.0

18.1
32
18 .0
2017-22 32

25.0

16.0
21.0

11.2% 18.2
22 22

20.0

14.0

12 12
15.0

12.0

18 24 26 29 33 16 8 7
2 10.0 2 10.0

2017 2018 2019 2020 H12021 Early signs of softening in edible oils and Q1-22 Q2-22
2022 packaging materials.
Profit from Operations (INR Bio) Profit from Operations (INR Bio)
Fresh milk, fuels, grains and green coffee
% of Net Sales costs are expected to remain firm % of Net Sales

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Thereby Impacting Net Profit

50 25.0 40 25.0

45

35

40 20.0 20.0

30

35

16.0 15.7 15.9

15.1
14.3
13.9 CAGR 25

12.9
30 15.0 15.0

25
12.1 14.7 2017-22 20

23
20 10.0 10.0

14.2%
15

15

10

10 5.0 5.0

12 16 20 21 21 11 6 5
- - - -

2017 2018 2019 2020 2021 H1 Q1-22 Q2-22

2022 Net Profit (INR Bio)
Net Profit (INR Bio)
% of Net Sales
% of Net Sales (Comparable) % of Net Sales

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Domestic Sales: Broad Based Performance
Across All Product Groups

Milk Products and Prepared dishes Powdered and

Confectionery
Nutrition and cooking aids liquid beverages

41.2% 7.2% 32.4% 13.9% 15.9% 24.4% 10.5% 21.7%

Contribution Growth Contribution Growth Contribution Growth Contribution Growth

Data represents Jan-June 2022

13.3% Domestic Sales Growth

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Products Launched Since 2015
Now Contribute Over 5% of Sales

5.6 6.0

4.9
10,0 00

4.4
9,00 0

8,00 0

4.3 5.0

3.4 Over 100

7,00 0

4.0

2.7
6,00 0

5,00 0
3.0
new
products in
4,00 0

2.0
3,00 0

last 5 years
2,00 0

1.0
1,00 0

-
-

2017 2018 2019 2020 2021 H1 2022

NPDI Sales (Mio) % Contribution to domestic sales

~ 15 new Projects in Pipeline

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Thereby, Creating Significant Value
For Investors
Total Shareholders Return

3,641% Market
Capitalization INR
1,785 Bn
Annualized Return

INR 50 Up 35.9 times vs. FMCG

19.3% Bn Benchmark Index 16.2
times
2022*
USD 22.4 Bn
(1 USD= INR 79.8)
2001
USD 1.1 Bn
(1 USD= INR 47.2)

*As at 26th Jul 2022 (Closing share price INR 18,510)

INR Billion is INR 100 crore.
Source: Bombay Stock Exchange.

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Opportunities
for
Premiumization

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Purina
Petcare

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Pet Care Has An Exciting Future

Category Dry Dog food

INR 4000 Crore 75%

Dry
Category
Dog food
growing
the biggest
at ~ 25%
segment
Wet
Pet Cat food is
adoption a strong
on the rise opportunity

30 Million Pets Wet Cat

Growing at + 11% growing at 35%

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
Source: Internal Estimates Image used as reference
 Strategy And Learnings Of Purina In India

Built Pet Specialty distribution network in 46 Towns

Nurtured Category Expertise: >70% of sales team with pet category experience of 4+ years

Accelerated growth: 68% in ‘21 and 51% in H1 ‘22

Channel strategy has evolved from focus on Specialist Channel to

Omni channel approach with e-commerce now contributing ~14%

Leveraged Purina’s nutritional expertise of over 90 years with 500+ Scientist and
Nutritionists: Pioneer with many firsts in the category including the first
extruded pet food

Global investment in Purina Petcare India: INR 126 Crore

Synergy and heft: Leveraging Nestlé India network would further accelerate growth in
Organized trade, Quick Commerce and Tier 1 & 2 towns

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Purina Strategy And Evolving Category Dynamics
Has Paved The Way For Higher Synergies

• Purina business performing strongly,

registering high double-digit growth

• Strong consumer confidence in brands;

SUPERCOAT brand is voted 2021 Product of
the Year

• Portfolio expansion in fast-growing segments

like Wet Cat Food

• New Route to market opportunities have

come in last couple of years. Expansion to Tier
1 towns and e-commerce is playing a big role.

• Scope to unleash full potential of business

now

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 A Promising Business With Encouraging Growth

Sales Progression (INR Crore)

46.3

H1-
51%

31.2

CAGR
39.5%
18.6
17.2
11.5

2018 2019 2020 2021 2022

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Built On The Backbone Of A Robust Network

Purina business is driven by Specialist Channel distribution network

Distribution Footprint

46 Towns with 50 CDs

185 Suppliers

Map not to scale

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference
 Leveraging Global Expertise

Amata Blayney
(Thailand) (Australia)

Brands: SUPERCOAT, FRISKIES Brand: PRO PLAN

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 While Offering Renowned Brands
Adapted To Local Needs

Premium Super Premium Premium Super Premium

Dry Dog Dry Dog Dry Cat Wet Cat

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Purina – What We Said Then Vs Now

2018 2022

Pet care as a category is still evolving in Pet care has an exciting future with
India adoption on the rise post pandemic

There are far greater synergies with

evolution in channel strategies. Leveraging
No synergy with Nestlé India’s business
Nestlé India network would further
accelerate growth.

Limited route to market and category See significant competitive advantage and
marketing expertise expertise to leverage

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 On the
Horizon

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Redefining our
Mission:
Nutrition is not a mature
business!

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 The Emerging Toddler Segment (2-6 years)

Designed for the mother who is

uncompromising in her Size of the
choices when it comes to her market
little one stands at
She’s a self-assured young
achiever constantly trying to ~ INR
upgrade ​her and her family’s life.
This mother is constantly 3500
updated about the latest in
nutrition;
crore
reads food labels, parenting blogs
and consults multiple sources
before deciding on what to give Source – Internal Estimates
her child

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Key Milestones Of An Iconic Brand

It all starts The first GERBER Meet Dotti –

with the GERBER TV Graduates bring GERBER’s
GERBER family Commercial the toddler personalized
in Michigan aired range to life expert

1928 1950 2002 2009

1931 1960 2007 2022

The first The first GERBER joins GERBER

GERBER Cereal GERBER glass the Nestlé comes to
is launched jar family India

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022
 Our Promise To Indian Moms

With 90 years of experience globally, we understand your needs

and reassure you of the best nutrition for your toddlers.
Our range of power blend cereal has been developed for
Indian toddlers combining the benefits of four diverse groups –
Cereal, Legumes, Milk and Fruits/Vegetables with age-appropriate
fortification to offer
a nutritious, healthy and tasty product.

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference
Images used as reference
 Made in India
Made for India

Nestlé
Nestlé India Half-Year Earnings
India Half-Year Earnings Call,
Call, 28
28th July
th
July 2022
2022
 The Gerber Pledge

We promise

‘Communities’ and not ‘Communication’

‘Co-creation’ and not ‘Unilateral Brands’

Our Gerber cereals are We promise to collect and

30%
made in a factory that responsibly manage
recycles up to 30% equivalent quantity of
water plastics created by our
products

Nestlé
Nestlé India Half-Year Earnings
India Half-Year Earnings Call,
Call, 28
28th July
th
July 2022
2022 Image used as reference
 Key Takeaways This Time

Robust performance Pet care offers Gerber entry a sign of

continues vibrant opportunities the market potential

Securing Growth Confidence and

Matters Capability of Strong
Brands to withstand
inflation
Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference
 Thank
You

Nestlé
Nestlé India
India Half-Year
Half-Year Earnings
Earnings Call,
Call, 28
28th July
th
July 2022
2022 Images used as reference