Nestlé (NSRGY) 2010年年度报告「OTC」.pdf

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1、Annual Report 2010Letter to our shareholdersBoard of Directors of Nestl S.A.Executive Board of Nestl S.A.Creating value for societyUN Global Compact Communication on ProgressThe Nestl Roadmap to Good Food,Good LifeCompetitive advantagesGrowth driversOperational pillarsFinancial review Principal key

2、figures(illustrative)OverviewManagement responsibilities:Food and BeveragesLeading positions in dynamic categoriesGeographic data:people,factories and salesCorporate Governance and ComplianceCreating Shared Value Key Performance IndicatorsShareholder informationTable of contents267810121418222627283

3、84042444648Our objective is to be the recognised leader in Nutrition,Health and Wellness and the industry reference for financial performanceThe brands in italics are registered trademarks of the Nestl Group.Creating Shared Value and Rural Development Summary Report 2010Corporate Governance Report 2

4、010;2010 Financial StatementsAccompanying reportsAnnual Report 2010Letter to our shareholdersBoard of Directors of Nestl S.A.Executive Board of Nestl S.A.Creating value for societyUN Global Compact Communication on ProgressThe Nestl Roadmap to Good Food,Good LifeCompetitive advantagesGrowth driversO

5、perational pillarsFinancial review Principal key figures(illustrative)OverviewManagement responsibilities:Food and BeveragesLeading positions in dynamic categoriesGeographic data:people,factories and salesCorporate Governance and ComplianceCreating Shared Value Key Performance IndicatorsShareholder

6、informationTable of contents26781012141822262728384042444648Our objective is to be the recognised leader in Nutrition,Health and Wellness and the industry reference for financial performanceThe brands in italics are registered trademarks of the Nestl Group.Creating Shared Value and Rural Development

7、 Summary Report 2010Corporate Governance Report 2010;2010 Financial StatementsAccompanying reportsneutralPrinted MatterNo.01-11-756095 www.myclimate.org myclimate The Climate Protection Partnership 2011,Nestl S.A.,Cham and Vevey(Switzerland)The Annual Report contains forward lookingstatements which

8、reflect Managementscurrent views and estimates.The forwardlooking statements involve certain risks anduncertainties that could cause actual results todiffer materially from those contained in theforward looking statements.Potential risks anduncertainties include such factors as generaleconomic condi

9、tions,foreign exchangefluctuations,competitive product and pricingpressures and regulatory developments.In case of doubt or differences of interpretation,the English version shall prevail over the French and German text.Visual concept and designNestec Ltd.,Corporate Identity&Design,with Esterson Ass

10、ociatesPhotographyMarkus Bhler-Rasom,Lionel Deriaz,Sam Faulkner,Nicolas Goldberg,Mischa Haller,Harmen Hoogland,Marc Latzel,Fernanda Preto,Philippe Prtre,Darren Leigh Roberts,Sheila Rock,Thomas Schuppisser,Hans Schrmann,Alex SubriziProductionAltavia SwissPaperThis report is printed on Arctic Volume,a

11、 paper produced from well-managedforests and other controlled sources certifiedby the Forest Stewardship Council(FSC).EBIT(Group)In millions of CHF16 00015 00014 000Net profit(a)In millions of CHF30 00020 00010 000Dividend per shareIn CHF1.801.200.60Capital expenditure In millions of CHF5 0004 2503

12、500EBIT marginIn%141210 Continuing operationsGroupEarnings per shareIn CHF9.006.003.00Underlying(c)Total(a)Total cash returned to shareholdersIn billions of CHF15105Share Buy-Back DividendReturn on invested capital(d)In%322416 Including goodwillExcluding goodwillKey figures(consolidated)In millions

13、of CHF(except per share data)SalesEBIT(Group)Earnings Before Interest,Taxes,restructuring and impairmentsas%of salesEBIT(Continuing operations)Earnings Before Interest,Taxes,restructuring and impairmentsas%of sales(Continuing operations)Profit for the year attributable to shareholders of the parent

14、Net profit(a)as%of salesas%of average equity attributable to shareholders of the parentCapital expenditureas%of salesEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.Market capitalisation,end DecemberOperating cash flowFree cash flow(b)Net financ

15、ial debtRatio of net financial debt to equity(gearing)Per shareTotal basic earnings per share(a)CHFUnderlying(c)CHFEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.CHFDividend as proposed by the Board of Directors of Nestl S.A.CHF(a)2010 figure i

16、s not comparable as it includes a one-off gain on the disposal of the remaining interest in Alcon.(b)Operating cash flow less capital expenditure,disposal of tangible assets,purchase and disposal of intangible assets,movement with associates as well as with non-controlling interests.(c)Profit per sh

17、are for the year attributable to shareholders of the parent before impairments,restructuring costs,results on disposals and significant one-off items.The tax impact from the adjusted items is also adjusted for.(d)ROIC calculation was amended in 2009 following changes in segment reporting.2008 figure

18、s have been restated accordingly.2010109 72216 19414.8%14 03813.4%34 23331.2%61.8%4 5764.2%61 867178 31613 6087 7613 8546.2%10.163.3218.351.852009107 61815 69914.6%13 22213.1%10 4289.7%20.9%4 6414.3%48 915174 29417 93412 36918 08537.0%2.923.0913.691.6013 302200615 024200715 676200815 699200916 19420

19、1013.5200614.0200714.3200813.114.6200913.414.820109 197200610 649200718 039200810 428200934 23320102.412.39 20062.80 2.7820072.824.8720083.092.9220093.3210.1620101.042006+15.6%+17.3%+14.8%+14.3%+15.6%1.2220071.4020081.6020091.8520102.73.5 20064.44.020078.74.620087.05.0200910.15.420104 20020064 97120

20、074 86920084 64120094 576201011.721.2200612.222.2 200714.734.8200815.635.1 200915.536.12010neutralPrinted MatterNo.01-11-756095 www.myclimate.org myclimate The Climate Protection Partnership 2011,Nestl S.A.,Cham and Vevey(Switzerland)The Annual Report contains forward lookingstatements which reflect

21、 Managementscurrent views and estimates.The forwardlooking statements involve certain risks anduncertainties that could cause actual results todiffer materially from those contained in theforward looking statements.Potential risks anduncertainties include such factors as generaleconomic conditions,f

22、oreign exchangefluctuations,competitive product and pricingpressures and regulatory developments.In case of doubt or differences of interpretation,the English version shall prevail over the French and German text.Visual concept and designNestec Ltd.,Corporate Identity&Design,with Esterson Associates

23、PhotographyMarkus Bhler-Rasom,Lionel Deriaz,Sam Faulkner,Nicolas Goldberg,Mischa Haller,Harmen Hoogland,Marc Latzel,Fernanda Preto,Philippe Prtre,Darren Leigh Roberts,Sheila Rock,Thomas Schuppisser,Hans Schrmann,Alex SubriziProductionAltavia SwissPaperThis report is printed on Arctic Volume,a paper

24、produced from well-managedforests and other controlled sources certifiedby the Forest Stewardship Council(FSC).EBIT(Group)In millions of CHF16 00015 00014 000Net profit(a)In millions of CHF30 00020 00010 000Dividend per shareIn CHF1.801.200.60Capital expenditure In millions of CHF5 0004 2503 500EBIT

25、 marginIn%141210 Continuing operationsGroupEarnings per shareIn CHF9.006.003.00Underlying(c)Total(a)Total cash returned to shareholdersIn billions of CHF15105Share Buy-Back DividendReturn on invested capital(d)In%322416 Including goodwillExcluding goodwillKey figures(consolidated)In millions of CHF(

26、except per share data)SalesEBIT(Group)Earnings Before Interest,Taxes,restructuring and impairmentsas%of salesEBIT(Continuing operations)Earnings Before Interest,Taxes,restructuring and impairmentsas%of sales(Continuing operations)Profit for the year attributable to shareholders of the parent Net pro

27、fit(a)as%of salesas%of average equity attributable to shareholders of the parentCapital expenditureas%of salesEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.Market capitalisation,end DecemberOperating cash flowFree cash flow(b)Net financial deb

28、tRatio of net financial debt to equity(gearing)Per shareTotal basic earnings per share(a)CHFUnderlying(c)CHFEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.CHFDividend as proposed by the Board of Directors of Nestl S.A.CHF(a)2010 figure is not c

29、omparable as it includes a one-off gain on the disposal of the remaining interest in Alcon.(b)Operating cash flow less capital expenditure,disposal of tangible assets,purchase and disposal of intangible assets,movement with associates as well as with non-controlling interests.(c)Profit per share for

30、 the year attributable to shareholders of the parent before impairments,restructuring costs,results on disposals and significant one-off items.The tax impact from the adjusted items is also adjusted for.(d)ROIC calculation was amended in 2009 following changes in segment reporting.2008 figures have

31、been restated accordingly.2010109 72216 19414.8%14 03813.4%34 23331.2%61.8%4 5764.2%61 867178 31613 6087 7613 8546.2%10.163.3218.351.852009107 61815 69914.6%13 22213.1%10 4289.7%20.9%4 6414.3%48 915174 29417 93412 36918 08537.0%2.923.0913.691.6013 302200615 024200715 676200815 699200916 194201013.52

32、00614.0200714.3200813.114.6200913.414.820109 197200610 649200718 039200810 428200934 23320102.412.39 20062.80 2.7820072.824.8720083.092.9220093.3210.1620101.042006+15.6%+17.3%+14.8%+14.3%+15.6%1.2220071.4020081.6020091.8520102.73.5 20064.44.020078.74.620087.05.0200910.15.420104 20020064 97120074 869

33、20084 64120094 576201011.721.2200612.222.2 200714.734.8200815.635.1 200915.536.12010Highlights 2010Strong operating performance.Broad-based:all operating segments contributeCHF 109.7 billion Group sales CHF 104.6 billion continuing operations sales Net profit of CHF 34.2 billion,7.4%increase in unde

34、rlying earnings per share,10.3%in constant currencies Return on invested capital,excluding goodwill,of 36.1%CHF 16.2 billion Group EBIT CHF 14.0 billion continuing operations EBIT,+30 basis points EBIT margin improvement CHF 13.6 billion in operating cash flow Return on invested capital,including go

35、odwill,of 15.5%The Nestl Model achieved in 2010 Nestls commitment to shareholder value creation2011:a year already characterised by high raw material costs and volatile currenciesCHF 15.5 billion of cash returned to shareholders through CHF 5.4 billion dividend and CHF 10.1 billion share buy-back In

36、 excess of CHF 10 billion to be returned to shareholders in 2011 through dividend and share buy-back CHF 6.1 billion or a CHF 1.85 dividend per share(proposed)for 2010,an increase of 15.6%We are starting 2011 with continued momentum,well placed to face uncertainties ahead,including volatile raw mate

37、rial prices.We are therefore confident of achieving the Nestl Model in 2011:organic growth between 5%and 6%and an EBIT margin improvement in constant currencies2Nestl Annual Report 20102Letter to our shareholdersFellow shareholders,The aftershocks of the 2008 financial meltdown echoed through 2009,w

38、ith recessions in many economies,and continued through 2010 and into 2011,with concerns over what may be still to come.This unpredictable and volatile macro-environment,particularly in the developed world,has weighed heavily on consumer confidence.On the other hand,the emerging world has rallied qui

39、ckly,demonstrating that many economies in Asia,Africa and Latin America are more robust,and less dependent on the developed world than was perhaps thought.One might say that many emerging economies are indeed emerging,and doing so on their own terms,with their own priorities,rather than simply havin

40、g a“me too”ambition to mimic the developed world.This must be a good thing,both for those economies and for global trade and development.This environment has required specific,individual country-by-country approaches from your Company,so that we could identify opportunities for growth in areas chara

41、cterised by low levels of consumer demand and also capitalise on buoyant demand in other markets.These approaches shared a common strategic purpose,described in the Nestl Roadmap,which identifies our operational and strategic priorities.Our priorities were to ensure that we put consumers first;that

42、we offered outstanding value propositions through our products and services,appropriate to our different consumer segments;that we achieved a high level of differentiation of our brands from those of our competition;and that we continued to increase investment in innovation,in consumer communication

43、,in operations and in distribution.And that we did this whilst driving improved operational efficiency across the business,simultaneous to achieving ever higher standards of process and product quality.This commitment lies at the heart of our performance in 2010,a year that saw Nestls stock market v

44、aluation make it preeminent amongst its consumer goods peers and one of the leading companies in Europe.Nestls organic sales growth was 6.2%,including real internal growth(RIG)of 4.6%and pricing of 1.6%.The strength of the Swiss franc relative to many other currencies had a 3.6%negative impact on re

45、ported sales,whilst divestitures,net of acquisitions,resulted in a fall of 0.6%.Overall,sales rose by 2.0%to CHF 109.7 billion.The Groups EBIT rose to CHF 16.2 billion and the EBIT margin rose by 20 basis points to 14.8%.Our continuing operations had organic growth of 6.0%and RIG of 4.4%.Despite a h

46、igher level of investment in marketing and R&D,the EBIT rose to CHF 14.0 billion and the EBIT margin by 30 basis points to 13.4%.The Groups underlying earnings per share rose 7.4%to CHF 3.32,and by 10.3%in constant currencies.The reported net profit was CHF 34.2 billion,reflecting the profit on disp

47、osal of our remaining holding in Alcon,as well as the underlying improvement in our performance.The operating cash flow was CHF 13.6 billion.The Groups return on invested capital decreased by 10 basis points to 15.5%including goodwill,but increased 100 basis points to 36.1%excluding goodwill.In view

48、 of this performance,and your Companys robust financial position,your Board is recommending a dividend per share of CHF 1.85,an increase of 15.6%from last year.This will be paid in 2011,and is in addition to the current CHF 10 billion share buy-back,split equally between 2010 and 2011.The 2010 resul

49、ts,achieved in an exceedingly challenging environment,were not the reflection of a single-minded focus on achieving short-term performance,but were achieved whilst investing for the future and laying foundations to shape the future direction of the Company:in January we announced the acquisition of

50、the leading USA player in frozen pizza.This deal complements 3Nestl Annual Report 2010The 2010 results,achieved in an exceedingly challenging environment,were not the reflection of a single-minded focus on achieving short-term performance,but were achieved whilst investing for the future and laying

51、foundations to shape the future direction of the Company.our existing leadership in frozen meals,frozen snacks and ice cream in the US market,enhances our distribution capabilities there and complements the know-how that we have developed in our pizza operations in Europe.On an annualised basis,we n

52、ow have sales of over CHF 8 billion in mainstream retail frozen food and ice cream in North America,and clear leadership;in August we closed the sale of Alcon.This transaction,together with the earlier divestments of our Alcon shares,brought the total realised by Nestl to USD 41 billion from an inve

53、stment in 1977 of USD 280 million.Your Board thanks the past and present Alcon management teams for their great work over three decades in building such a successful business,which has enabled the creation of significant value for our shareholders.Our desire to ensure that our shareholders benefited

54、 from that value creation is reflected in our commitment to buy back and cancel approximatively CHF 40 billion of our shares between 2005 and 2011;in September we announced the creation of both Nestl Health Science S.A.and the Nestl Institute of Health Sciences.Nestl is the worlds leading Nutrition,

55、Health and Wellness company:one responsibility of leadership is to be a pioneer.The creation of these two organisations will enable us to pioneer a new market between food and pharmaceuticals.4Nestl Annual Report 2010They will develop the innovative area of personalised health science nutrition to p

56、revent and treat health conditions such as diabetes,obesity,cardiovascular and Alzheimers diseases.Nestl Health Science will incorporate the Nestl HealthCare Nutrition business,with CHF 1.7 billion of sales,including the 2010 acquisition of Vitaflo,focused on inherited metabolic disorders;we also st

57、rengthened our position through acquisitions in different categories in both developed and emerging markets.These included,amongst others,Water in China,Culinary in Ukraine,Confectionery in Turkey and PetCare in North America.Acquisitions play a role in helping to accelerate the Groups strategic pri

58、orities and to enhance its growth profile,but our key driver of profitable growth is the organic development of our categories and geographic positions.We have made or announced major capital investments in the developed world and in emerging countries such as India,China,Indonesia,the Philippines,t

59、he Middle East,Russia,Brazil,Mexico,Chile,Angola,the Democratic Republic of Congo,Ghana,Kenya and Mozambique.In total,for 2010 and 2011 we have spent or committed CHF 4.3 billion to capital investment in emerging countries.We foresee investment in the emerging world continuing to run at significant

60、levels as we build on our position as the largest food and beverage company in emerging markets.Equally,we will continue to invest in North America,Western Europe and the developed economies of Oceania and Japan:we see many opportunities for growth in the developed world and are investing to ensure

61、that we are well placed to benefit from them.Capital investment,expanding our capacity,is only one part of the story:we are supporting this with investment in capabilities,both personal and technical,in R&D,in distribution and,of course,in our brands.The strength of our balance sheet means that we d

62、o not have to make either/or decisions when we are investing in our own business,acquiring another company or driving our performance,but that we can judge each opportunity on its own merits.This means that we will make appropriate investments and acquisitions in both developed and emerging markets,

63、provided the financials stand up;and that we will drive short-term performance and,at the same time,invest in the longer-term development of our brands and market positions.We are also using our financial resources and technical expertise to invest in countries and communities that are themselves co

64、ntributing to our development.As an example,we are seeking to improve the security of supply of key ingredients,such as milk,green coffee and cocoa.In 2010,we announced our intention to invest CHF 500 million in a wide-ranging plan to address responsible farming,sourcing and consumption across the c

65、offee supply chain.As part of this plan,we intend to deliver over two hundred million high-yielding plants to farmers over the next ten years.We are also investing over CHF 100 million in an initiative in cocoa with similar objectives around the sustainability of the cocoa industry.These cocoa and c

66、offee initiatives are just two examples of us using our financial resources to fund investment that will improve the quantity and quality of local ingredients that we are able to buy;this in turn will contribute to increased economic prosperity in those countries;equally,we are expecting to make fur

67、ther such investments as our business continues to grow,both locally and around the world.The benefits to our Company will be an improved security of supply of higher-quality raw materials and a reduced impact from the volatility of raw material prices.These investments highlight the founding philos

68、ophy of how we go about our business:we believe that companies are only sustainable and successful over the long term if they Our commitment to Creating Shared Value and our principle-based approach to running our business stand front-and-centre as we pursue our objective of being the reference for

69、financial performance in our industry because we want to achieve this whilst also being trusted by all stakeholders.5Nestl Annual Report 2010Peter Brabeck-LetmatheChairman of the BoardPaul BulckeChief Executive Officerand was replaced as Head of Nestl Nutrition and on the Executive Board by Doreswam

70、y(Nandu)Nandkishore.Nandu,of Indian nationality,has been with Nestl since 1989 and was previously the Market Head of Nestl Philippines and then the Head of Infant Nutrition globally.The Board thanks Richard for his contribution over his five years at Nestl and particularly for his contribution to th

71、e successful acquisition and integration of the three businesses which enabled Nestl Nutrition to double in size under his leadership.One new director will be proposed to shareholders at the 2011 Annual General Meeting.Ms.Ann Veneman,is a US citizen and former Executive Director of the United Nation

72、s Childrens Fund(UNICEF).She also served as Secretary of the United States Department of Agriculture(USDA)and is a member of the Nestl Creating Shared Value Advisory Board,with extensive experience in areas such as childrens health and education.The events of the last few years have been unprecedent

73、ed in many ways,and have created considerable uncertainty for many people in many countries around the world.Despite this,our people,over 280 000 of them,have continued to show a wonderful level of commitment to their jobs and of enthusiasm for their Company.We would like to thank them on behalf of

74、the Board and of all our fellow shareholders for their efforts in 2010.We would also like to welcome all those who have joined Nestl in 2010 and to wish them every success,in the knowledge that they have the full support of their colleagues.We are starting 2011 with continued momentum,well placed to

75、 face uncertainties ahead,including volatile raw material prices.We are therefore confident of achieving the Nestl Model in 2011:organic growth between 5%and 6%and an EBIT margin improvement in constant currencies.create value not just for their shareholders but also for the societies in which they

76、operate.We call this“Creating Shared Value”.We talk about this in more detail in this report,as well as our progress in relation to the United Nations Global Compact.Our commitment to Creating Shared Value and our principle-based approach to running our business stand front-and-centre as we pursue o

77、ur objective of being the reference for financial performance in our industry because we want to achieve this whilst also being trusted by all stakeholders.The Nestl Model has the objective of every year achieving a high level of organic growth and improving the EBIT margin.In the last ten years we

78、have averaged an annual 6.3%organic growth and an annual 30 basis point improvement in the reported EBIT margin.The benefit of our EBIT growing faster than our organic sales is reflected in the improving trend in our cash-flow performance,which is in turn reflected in the increased dividend paid to

79、our shareholders,up 236%per share over that same 10-year time frame.And,in the last six years,your Company has been paying a dividend and carrying out a significant share buy-back,which together total CHF 60 billion over that time.Comparability,transparency and the ability to be benchmarked are entr

80、y points to being the reference for financial performance:your Board committed in 2010 to change our sales recognition policy with effect from 2011 to facilitate comparisons of performance with our peers by bringing into line those of our key reported financial performance indicators that were not a

81、lready directly comparable.We believe this will not only facilitate external-benchmarking of our performance,but that it will also bring even closer alignment between internal targets and those value drivers that are of most importance to our shareholders.There was one change to the Executive Board

82、in 2010.Richard Laube decided to leave the Company 6Nestl Annual Report 2010 Board of Directors of Nestl S.A.at 31 December 2010Peter Brabeck-Letmathe(3,5)ChairmanTerm expires 2013(1,2)Jean-Ren Fourtou(3,4)Chairman of the Supervisory Board,Vivendi.Term expires 2012(1,2)Paul Bulcke(3)Chief Executive

83、OfficerTerm expires 2011(1,2)Rolf Hnggi(3,6)2nd Vice Chairman Former Chairman,Rd,Blass&Cie AG,Bankers.Term expires 2011(1,2)Jean-Pierre Meyers(4)Vice Chairman,LOral S.A.Term expires 2011(1,2)Nana Lal Kidwai(6)Group General Manager and Country Head of HSBC Group Companies in India.Term expires 2011(1

84、,2)Titia de LangeAssociate Director,Anderson Cancer Center,The Rockefeller University.Term expires 2013(1,2)Beat Hess(6)Group Legal Director,Royal Dutch Shell plc.Term expires 2011(1,2)Jean-Pierre RothChairman Geneva Cantonal Bank.Term expires 2013(1,2)Carolina Mller-Mhl(5)President,Mller-Mhl Group.

85、Term expires 2012(1,2)Daniel Borel(4)Co-founder and Board member,Logitech International S.A.Term expires 2012(1,2)Andr Kudelski(6)Chairman and CEO,Kudelski Group.Term expires 2013(1,2)Steven G.Hoch(5)Founder and Senior Partner,Highmount Capital.Term expires 2013(1,2)Andreas Koopmann(3,4,5)1st Vice C

86、hairman Chairman of Alstom(Suisse)S.A.Term expires 2011(1,2)Helmut O.Maucher Honorary Chairman(1)On the date of the Annual General Meeting.(2)As Nestls Articles of Association provide for three-year terms,all members of the Board are being re-elected over the course of the following three years.(3)C

87、hairmans and Corporate Governance Committee.(4)Compensation Committee.(5)Nomination Committee.(6)Audit Committee.For further information on the Board of Directors please refer to the Corporate Governance Report 2010,enclosed.David P.Frick Secretary to the Board KPMG SA Geneva branch Independent audi

88、tors.Term expires 2011(1)7Nestl Annual Report 2010Executive Board of Nestl S.A.at 31 December 2010Paul Bulcke Chief Executive OfficerMembers Executive BoardWerner BauerEVP,Innovation,Technology,Research and DevelopmentFrits van DijkEVP,Asia,Oceania,Africa,Middle EastLuis CantarellEVP,United States o

89、f America,Canada,Latin America,CaribbeanJos LopezEVP,Operations,GLOBEJohn J.HarrisEVP,Nestl WatersJames SinghEVP,Finance and Control,Global Nestl Business Services,Legal,Intellectual Property,TaxLaurent FreixeEVP,EuropeExecutive Board(from left to right):Werner Bauer,Luis Cantarell,David P.Frick,Jam

90、es Singh,Laurent Freixe,John J.Harris,Paul Bulcke,Frits van Dijk,Petraea Heynike,Marc Caira,Jos Lopez,Doreswamy(Nandu)Nandkishore,Jean-Marc DuvoisinPetraea HeynikeEVP,Strategic Business Units,Marketing and SalesMarc CairaDeputy EVP,Nestl ProfessionalJean-Marc DuvoisinDeputy EVP,Human ResourcesDoresw

91、amy(Nandu)NandkishoreDeputy EVP,Nestl NutritionDavid P.FrickSVP,Corporate Governance,Compliance and Corporate ServicesYves Philippe BlochCorporate Secretary EVP:Executive Vice President SVP:Senior Vice President For further information on the Executive Board,please refer to the Corporate Governance

92、Report 2010,enclosed.8Nestl Annual Report 2010Creating value for societyCompliance with applicable laws and international conventions such as the Universal Declaration of Human Rights and strong support for the UN Global Compact,as well as our internal standards and regulations,is the foundation of

93、our business.Beyond compliance,our business is based on sustainability,ensuring our activities protect the environment for future generations.Yet we believe we need to go further,creating shared value for both the Company and society in areas where shareholders and societys interests intersect.Three

94、 such areas nutrition,water and rural development are the focus for this strategy.Rural development:We strive to increase farmers incomes through increasing productivity,growing higher value crops,using land more efficiently and gaining outside farming employment and income.We further contribute to

95、rural development by providing technical and financial assistance and access to markets,and by investing in factories and rural areas that create infrastructure and employment.Performance Nutrition:While nutritional status has improved worldwide over the past fifty years,malnutrition and obesity sti

96、ll require solutions.To ensure both taste preference and nutritional superiority in our products,we assessed CHF 36.4 billion of our product portfolio and renovated 6502 products for nutrition or health considerations.To provide lower-income consumers with greater access to affordable food products,

97、Through The Nescaf Plan,Juan Lopez Cruz(left),a coffee farmer from Puebla,Mexico,receives high-yield coffee plantlets from Nestl agronomist Juan Sanchez.Creating Shared Value goalsNutrition:Using science-based solutions,we contribute to the health and wellbeing of consumers,including those with spec

98、ific nutritional needs,by offering products with higher nutritional value at affordable prices that appeal to consumers.We also aim to generate greater awareness,knowledge and understanding among consumers through clear,responsible communication.Water:Our long-term success depends on the water resou

99、rces that supply our business operations and support the livelihoods of suppliers and consumers,which is why water is a key focus area of Creating Shared Value.We work with stakeholders,ranging from agricultural suppliers to consumers,to manage water consumption in our operations and supply chain,an

100、d contribute to sustainable community water management schemes.9Nestl Annual Report 2010we offer 4860 Popularly Positioned Products at an affordable cost and appropriate serving size through a range of locally adapted distribution methods.Annually,90 billion servings of Maggi bouillon cubes are fort

101、ified with key micronutrients to address deficiencies in certain markets.In 2008,Nestls CEO and those from eight major food and beverage companies made five global commitments to the World Health Organizations Director General,to tackle obesity and the non-communicable diseases associated with it th

102、rough diet and physical activity.These commitments led to the International Food and Beverage Alliance(IFBA),which Nestl has co-chaired since its formation,and in November 2009,IFBAs first annual report(see www.ifballiance.org)to the Director General outlined its members progress to date.Water:Water

103、 has been identified as the most important factor for Nestls long-term success,as it affects the supply of raw materials,our operations and the consumption of many of our products.To become the most efficient water user in our industry:Water Resource Reviews are conducted at factories and in commodi

104、ty-growing areas;we help farmers to become better stewards of water;we support water resource awareness and education programmes;we take a leading role in the global dialogue on the issue.We have also reduced our total water withdrawal by 32%to 144 million m3 since 2000.Rural development:We will als

105、o continue to support 144 926 farmers through capacity-building training programmes,access to financial assistance,farm assessment tools and investment in biogas generation,amongst others.Full details of our performance are given in a comprehensive separate report and also in more detail on line.Our

106、 people:We continue to offer our workforce comprehensive training,development and career progression opportunities,and our global nutrition,health and wellness training programme has now reached 145 922 employees since 2007.Safety remained a key focus,our main indicator improved by 18%to 4.2 recorda

107、ble injuries per million hours worked,and relations between employees,management and trade unions are generally strong.In Peru,schoolchildren learn about healthy eating in a fun way by participating in Nestls Crecer Bien programme.Nestl Prize in Creating Shared Value In May 2010,the first Nestl Priz

108、e in Creating Shared Value was presented to International Development Enterprises(IDE)Cambodia,which employs franchised Farm Business Advisors.Since 2005,IDE has increased the productivity among 4500 smallholder farmers in rural Cambodia,boosting their income and increasing their standard of living,

109、and the CHF 500 000 prize will help IDE to reach an additional 20 000 farmers.Healthy Kids ProgrammeWe believe that education helps children to understand the value of nutrition and healthy lifestyles.Building on Nestl-sponsored education programmes,we will have implemented our Healthy Kids Global P

110、rogramme through partnerships in all countries where we have operations by the end of 2011.The Nescaf PlanIn August 2010,we launched The Nescaf Plan,bringing all our Creating Shared Value coffee farming and production practices together.This global initiative will help us to optimise our coffee supp

111、ly chain and reach our coffee farming,production and consumption targets.Under the Plan,we will,among other things,invest CHF 500 million in coffee projects by 2020,distribute 220 million high-yield coffee plantlets,train 30 000 farmers and support social projects in coffee-growing communities.10Nes

112、tl Annual Report 2010UN Global Compact Communication on ProgressCommitment and systemsThe Nestl Corporate Business Principles(NCBP)endorsed by the Chairman and CEO,and available online form the basis of our culture and reflect our values of fairness,honesty and respect for people and the environment

113、.A revised version of the NCBP was developed during 2010,and translated into fifty languages.A comprehensive communication and training toolkit has been provided to all markets where local plans have been launched to ensure each employee lives up to the Principles.Follow-up training is planned in 20

114、11 to ensure deeper understanding of each Principle.Compliance is monitored through external audits under our CARE programme,and the Nestl Group Audit function.In 2010,392 sites underwent CARE audits and no critical non-compliances were identified.To help maintain our reputation,our Code of Business

115、 Conduct outlines minimum standards of behaviour in key areas,our new Employee Relations Policy outlines international standards and sets a tone of open dialogue on labour matters,and the Nestl Supplier Code commits suppliers to comply with our core integrity standards.Human rights and labour practi

116、cesSince November 2008,Nestl has worked with the Danish Institute for Human Rights(DIHR),to review our human rights policy and assess our labour practices and human rights compliance.In July 2010,we signed a two-year partnership through which the DIHR will assist us in integrating human rights into

117、our corporate systems,undertaking in-depth assessments with stakeholder consultations at a country level,and other monitoring and capacity-building activities.Nestl recognises the“corporate responsibility to respect human rights”,as outlined in the UN Framework on Human Rights and Business proposed

118、by John Ruggie,Special Representative of the UN Secretary General on Business and Human Rights.During 2010,labour rights and human rights issues have been discussed by our CEO Paul Bulcke with Professor Ruggie,and other international stakeholders.In cocoa-growing areas,child labour is a challenge,so

119、 Nestl and others in the International Cocoa Initiative(ICI)continue to tackle child labour and improve access to education.In Cte dIvoire,the Cocoa Plan has a strong child labour component,and a new project with the ICI will support twenty communities Staff from all departments at Nestls Bugalagran

120、de factory in Colombia attend an editorial meeting for the bimonthly employee magazine.Since joining the UN Global Compact(UNGC)in 2001,we have embraced its 10 principles,integrated them into the Nestl Corporate Business Principles and continuously supported them.Our annual Communication on Progress

121、 illustrates our dedication and efforts in the issue areas of human rights,labour practices,the environment and anti-corruption.Our full Communication on Progress is available online.11Nestl Annual Report 2010that supply cocoa for our confectionery business.In Colombia,Nestl is a founding participan

122、t of“Guas Colombia”(Guidelines for Colombia),which brings together companies,government,NGOs and trade unions.We also have a formal dialogue with Alliance Sud,a group of Swiss NGOs examining the impact of our activities and our relationships with trade unions and local communities on national develo

123、pment and human rights.In 2010,all operating companies implemented action plans and are tracking progress on our Gender Balance initiative,while a network of Gender Balance Champions regularly shares best practice.Nestl also published Corporate Guidelines for a Flexible Work Environment,and paired 1

124、30 senior executives with mentors in the second stage of our Corporate Mentoring Programme.In addition,several high-impact training and capability workshops are being rolled out as part of Nestl Continuous Excellence(NCE)which empowers people with the right knowledge,skills and competencies to drive

125、 business results and personal development.Environmental sustainabilityOur aim is to continuously improve our performance and produce tastier,nutritious food and beverages that are better for the environment.We assess the environmental impact of our value chains including procurement,logistics,manuf

126、acturing,marketing and consumer engagement using a life cycle approach.Through an ongoing commitment to operational environmental efficiency and a move towards cleaner energy we have kept our direct greenhouse gas emissions stable at 4 million tonnes CO2eq and increased energy consumption by only 4%

127、to 88.6 PJ,despite an increase in production volume of 6.2%.We continue to focus on packaging optimisation and two additional factories in the UK achieved“zero waste to landfill”in 2010.Nestl is also a founding signatory of the UN Global Compacts CEO Water Mandate,and has provided a Communication on

128、 Progress on water since 2009.We are committed to use only palm oil from sustainable sources by 2015 and became the first company to commit to eliminating tropical rainforest deforestation in our supply chain.Through our membership of The Forest Trust,we are working with our suppliers to meet a seri

129、es of principles to achieve this.In recognition of our improved environmental performance,Nestl was ranked second in the consumer goods sector in the Carbon Disclosure Projects(CDP)Carbon Disclosure Leadership Index 2010,and contributed to the CDPs Water Disclosure Project.Anti-corruptionThe Code of

130、 Business Conduct and the NCBP condemn any form of corruption and bribery,and our Supplier Code of Conduct requires our partners to embrace our “zero-tolerance”approach.Having performed a thorough anti-corruption risk assessment,we have developed an anti-corruption training tool to provide employees

131、 with specific guidance on avoiding inappropriate behaviour,supplementing existing training efforts in this area.Our Code of Business Conduct introduced whistle-blower procedures in 2008,and we are complementing our local hotlines with a Group-wide integrity reporting system.At a Nestl field school

132、in Nobertkro,Cte dIvoire,farmers learn about responsible labour practices and the importance of education for children.UNGC PrinciplesHuman rights1.Businesses should support and respect the protection of internationally proclaimed human rights;and2.make sure that they are not complicit in human righ

133、ts abuses.Labour3.Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;4.the elimination of all forms of forced and compulsory labour;5.the effective abolition of child labour;and6.the elimination of discrimination in respect of empl

134、oyment and occupation.Environment7.Businesses should support a precautionary approach to environmental challenges;8.undertake initiatives to promote greater environmental responsibility;and9.encourage the development and diffusion of environmentally friendly technologies.Anti-corruption10.Businesses

135、 should work against corruption in all its forms,including extortion and bribery.12Nestl Annual Report 2010The Nestl Roadmap to Good Food,Good LifeOur objective is to be recognised as the world leader in Nutrition,Health and Wellness,trusted by all our stakeholders,and to be the reference for financ

136、ial performance in our industry.This objective demands from our people a blend of long-term inspiration,to build for the future,and short-term entrepreneurial actions,to deliver the necessary performance today.The 4x4x4 Roadmap combines four competitive advantages,four growth drivers and four operat

137、ional pillars with the aim of aligning the priorities of the more than 280 000 people who are working at Nestl,and thereby accelerate the achievement of our objective.Our competitive advantages are:Our unmatched product and brand portfolio,with strong market positions.Over 20 Nestl brands have annua

138、l sales of over CHF 1 billion.Whether global or regional,our brands are always relevant to consumers locally.Our unmatched R&D is the unseen impetus behind the growth of our brands.It is science-based,consumer-centric and focused on differentiation from our competitors.It goes beyond food to cover n

139、ew products,packaging,technology and manufacturing,quality and safety.Our unmatched geographic presence has been established over many years and is a reflection of both the breadth of our presence,with our brands available more or less everywhere,and the duration for which we have been present in co

140、untries the world over.Our people,culture,values,and attitude enable us to be decentralised and entrepreneurial.It combines devolved responsibilities with a cohesive strategic direction.We are patient and not averse to taking reasonable risks.Our speed and focus enable us to remain competitive in sp

141、ite of any challenges in the marketplace.Our growth drivers are:Nutrition,Health and Wellness.Each of our product categories,from Chocolate to Baby Food,has a specific strategy to ensure that it can be the nutrition leader in its space.Emerging markets and Popularly Positioned Products.We have tailo

142、red not just our products,but also our business models and marketing mix to ensure that we are best able to realise the growing opportunity to provide nutritious,affordable,branded food to lower income consumers around the world.Out-of-home consumption is growing faster than in-home.We are the large

143、st branded manufacturer,with a business built on branded ingredients but increasingly achieving new standards in customer solutions,systems and service.Premiumisation.Incomes are increasing;so is leisure time.These are just two trends that point to accelerated growth in premium food and drinks,each

144、a moment of affordable luxury,a moment of pleasure.Each of our product categories has its own specific premium strategy,encompassing brands such as Nespresso,S.Pellegrino,Perrier,Hagen-Dazs and Cailler.Our operational pillars are:Innovation&renovation.Innovation is about big steps and changing the r

145、ules of the game,or even changing the game.It is hard to copy.Its rewards can be measured by profitable growth for years to come and sustainable competitive advantages.Renovation is more incremental,and lies behind the still-growing success of brands such as Nescaf and KitKat,both over 70 years old.

146、Operational efficiency seeks to ensure that we have the highest quality,the lowest cost and best customer service.The aim is to improve our sustainability by being better,faster,more efficient,less wasteful and,as a result,higher performing.Whenever,wherever,however is the expression of our aim to h

147、ave our products always at an arms reach of our consumers.We have created specific business models,distribution strategies and product solutions to meet this objective.Consumer communication is about building trust,exciting consumers,and learning from them to help drive our R&D.It is about citizensh

148、ip and responsibility and being aligned with the expectations of our consumers.On the following pages we are touching in detail on one of each of the competitive advantages,the growth drivers,and the operational pillars.All,however,are of equal importance.Nestl Annual Report 201014Compliance-Sustain

149、ability Creating Shared ValueNestl culture and valuesCompetitive advantagesGrowth driversOperationalpillarsOur objective is to be the recognised leader in Nutrition,Health and Wellness,and the industry reference for financial performanceNestls unmatched global presence is the result of the desire,so

150、on after the Company was founded,to expand beyond domestic borders.The result today,is that Nestl brands have been present in many markets,including emerging markets,for many generations,even over 100 years.With this presence come expertise,talent,experience,local knowledge and traditions that make

151、Nestl an integrated part of those communities where it is present.Nestls sales are broadly spread across the world.Our presence in emerging markets,with about CHF 39 billion of sales,about 36%of the total,is an unrivalled platform to leverage our scale for a continued high level of profitable growth

152、.In 2020,by when there will likely be an additional one billion consumers in emerging markets,we expect to be achieving about 45%of Group sales in those countries.In total,our emerging markets achieved organic growth of 11.5%in 2010.There are 13 emerging markets in which Nestls annual sales exceed C

153、HF 1 billion,and we have 5 with over CHF 2 billion in sales.Our products are ideal for emerging markets,especially those that are shelf-stable and easily portioned,with the potential to be locally manufactured:Ambient dairy,Infant nutrition,Culinary,Powdered beverages,Soluble coffee,Chocolate,Ready-

154、to-drink beverages and Water.Ice cream and PetCare are growing rapidly in the emerging world from smaller bases,whilst Frozen and Chilled meals do not yet have any meaningful presence.This emerging market business is supported by local manufacturing,with 47%of our factories in emerging markets,local

155、 R&D and product technology centres,long-term relationships with suppliers and farmers,and,of course,home-grown,local talent working at Nestl.About 80%of the worlds population is living in emerging markets,and is working for a better future.Nestl is ideally placed both to contribute to that better f

156、uture and to benefit from it.Nestls presence in the developed world is also broad-based.We are one of the biggest food companies in North America and we have leading positions in our key categories in most European countries and in Australasia and Japan.We believe that there are opportunities for pr

157、ofitable growth and improved market shares everywhere in the developed world.These opportunities include particular channels,market segments and consumer groups.They exist at the premium end,but also amongst lower income consumers,just as they do in emerging markets.The opportunities are realised th

158、rough a strong pipeline of innovation,through increasing distribution,through product superiority for both taste and nutrition.Also,developed markets are often the launch pad for innovations that will end up with global reach.Nestl has a decentralised structure.It is our people on the ground in each

159、 country,who are closest to our consumers,who are best able to drive our progress locally.They all have their own challenges,but they are bound together by their alignment to our 4x4x4 Roadmap,and they share the same objective:to grow our business for the benefit of our consumers all over the world,

160、of our business partners,our people and our shareholders.Unmatched product and brand portfolio Unmatched research and development capabilityUnmatched geographic presence People,culture,values and attitude Competitive advantagesUnmatched product and brand portfolioNutrition,Health and WellnessInnovat

161、ion&renovationUnmatched geographic presenceOut-of-home consumptionWhenever,wherever,howeverUnmatched research and development capabilityEmerging markets andPopularly Positioned ProductsOperationalefficiencyPeople,culture,values and attitudePremiumisationConsumercommunicationKitKat celebrated its 75t

162、h anniversary in 2010 but remains young and in touch with trends,having over 2.5 million Facebook fans.It is sold in over 70 countries and enjoys good growth in the developed world and emerging markets,such as the Middle East,India and Russia.Japan is its second biggest market.Nestl Annual Report 20

163、1014Compliance-Sustainability Creating Shared ValueNestl culture and valuesCompetitive advantagesGrowth driversOperationalpillarsOur objective is to be the recognised leader in Nutrition,Health and Wellness,and the industry reference for financial performanceNestls unmatched global presence is the r

164、esult of the desire,soon after the Company was founded,to expand beyond domestic borders.The result today,is that Nestl brands have been present in many markets,including emerging markets,for many generations,even over 100 years.With this presence come expertise,talent,experience,local knowledge and

165、 traditions that make Nestl an integrated part of those communities where it is present.Nestls sales are broadly spread across the world.Our presence in emerging markets,with about CHF 39 billion of sales,about 36%of the total,is an unrivalled platform to leverage our scale for a continued high leve

166、l of profitable growth.In 2020,by when there will likely be an additional one billion consumers in emerging markets,we expect to be achieving about 45%of Group sales in those countries.In total,our emerging markets achieved organic growth of 11.5%in 2010.There are 13 emerging markets in which Nestls

167、 annual sales exceed CHF 1 billion,and we have 5 with over CHF 2 billion in sales.Our products are ideal for emerging markets,especially those that are shelf-stable and easily portioned,with the potential to be locally manufactured:Ambient dairy,Infant nutrition,Culinary,Powdered beverages,Soluble c

168、offee,Chocolate,Ready-to-drink beverages and Water.Ice cream and PetCare are growing rapidly in the emerging world from smaller bases,whilst Frozen and Chilled meals do not yet have any meaningful presence.This emerging market business is supported by local manufacturing,with 47%of our factories in

169、emerging markets,local R&D and product technology centres,long-term relationships with suppliers and farmers,and,of course,home-grown,local talent working at Nestl.About 80%of the worlds population is living in emerging markets,and is working for a better future.Nestl is ideally placed both to contr

170、ibute to that better future and to benefit from it.Nestls presence in the developed world is also broad-based.We are one of the biggest food companies in North America and we have leading positions in our key categories in most European countries and in Australasia and Japan.We believe that there ar

171、e opportunities for profitable growth and improved market shares everywhere in the developed world.These opportunities include particular channels,market segments and consumer groups.They exist at the premium end,but also amongst lower income consumers,just as they do in emerging markets.The opportu

172、nities are realised through a strong pipeline of innovation,through increasing distribution,through product superiority for both taste and nutrition.Also,developed markets are often the launch pad for innovations that will end up with global reach.Nestl has a decentralised structure.It is our people

173、 on the ground in each country,who are closest to our consumers,who are best able to drive our progress locally.They all have their own challenges,but they are bound together by their alignment to our 4x4x4 Roadmap,and they share the same objective:to grow our business for the benefit of our consume

174、rs all over the world,of our business partners,our people and our shareholders.Unmatched product and brand portfolio Unmatched research and development capabilityUnmatched geographic presence People,culture,values and attitude Competitive advantagesUnmatched product and brand portfolioNutrition,Heal

175、th and WellnessInnovation&renovationUnmatched geographic presenceOut-of-home consumptionWhenever,wherever,howeverUnmatched research and development capabilityEmerging markets andPopularly Positioned ProductsOperationalefficiencyPeople,culture,values and attitudePremiumisationConsumercommunicationKit

176、Kat celebrated its 75th anniversary in 2010 but remains young and in touch with trends,having over 2.5 million Facebook fans.It is sold in over 70 countries and enjoys good growth in the developed world and emerging markets,such as the Middle East,India and Russia.Japan is its second biggest market.

177、Nestl Annual Report 2010Nestl Annual Report 20101615Comilfo,the premium brand launched in Russia,has added three new products to its range.The unique boat-shaped chocolate cups with a cream filling,a layer of caramelised wafer and a nut on top,combine to delight consumers with a multi-sensorial expe

178、rience.Purina ONE SmartBlend combines natures ingredients(such as meat,fish,poultry,wheat,corn,rice,omega-6 fatty acids)into concentrated,nutrient-rich morsels with enticing taste and texture:to combine essential amino acids,energy throughout the day,high levels of antioxidants and a natural source

179、of fats that works harmoniously with the pets body.Nestl Fruit Selection Yogurt+Jelly is a breakthrough innovation in the category in the Philippines.Priced at PHP 20,it has a layer of jelly over fruit yogurt,a first in the market.It has helped to increase yogurt consumption,addressing the main barr

180、iers of taste and price.Maggi is the leader in the Central West African Region.To reinforce its position as the best partner for tasty and balanced cooking,Maggi has launched an affordable range of powder seasonings Trobon and MixPy,fortified in iodine,that enhance the taste of everyday cooking.Buit

181、oni,the US leader in chilled filled pasta and sauces,entered the biggest segment of the frozen food market with a super premium range of meal solutions which are composed of filled pasta plus sauce in a pouch.This is providing consumers with an authentic and extraordinary Italian meal experience.Nes

182、tls unmatched depth and breadth in emerging markets brings benefits in all aspects of the value chain:we have close customer relationships,whilst our brands are an integral part of millions of peoples lives on a daily basis.Equally,we can attract the best local talent and have well-established R&D,m

183、anufacturing and distribution capabilities.We are enhancing these capabilities in 2011 with investments running into billions of Swiss Francs.Nescaf Caf Vit captures the intense and unique taste of authentic Vietnamese coffee:strong,black with an intense and bitter taste consumed over ice.The Nescaf

184、 Caf Vit product is the result of a R&D breakthrough which led to a patented process for co-extracting roast and ground coffee and soya.Nestl Annual Report 2010Nestl Annual Report 20101615Comilfo,the premium brand launched in Russia,has added three new products to its range.The unique boat-shaped ch

185、ocolate cups with a cream filling,a layer of caramelised wafer and a nut on top,combine to delight consumers with a multi-sensorial experience.Purina ONE SmartBlend combines natures ingredients(such as meat,fish,poultry,wheat,corn,rice,omega-6 fatty acids)into concentrated,nutrient-rich morsels with

186、 enticing taste and texture:to combine essential amino acids,energy throughout the day,high levels of antioxidants and a natural source of fats that works harmoniously with the pets body.Nestl Fruit Selection Yogurt+Jelly is a breakthrough innovation in the category in the Philippines.Priced at PHP

187、20,it has a layer of jelly over fruit yogurt,a first in the market.It has helped to increase yogurt consumption,addressing the main barriers of taste and price.Maggi is the leader in the Central West African Region.To reinforce its position as the best partner for tasty and balanced cooking,Maggi ha

188、s launched an affordable range of powder seasonings Trobon and MixPy,fortified in iodine,that enhance the taste of everyday cooking.Buitoni,the US leader in chilled filled pasta and sauces,entered the biggest segment of the frozen food market with a super premium range of meal solutions which are co

189、mposed of filled pasta plus sauce in a pouch.This is providing consumers with an authentic and extraordinary Italian meal experience.Nestls unmatched depth and breadth in emerging markets brings benefits in all aspects of the value chain:we have close customer relationships,whilst our brands are an

190、integral part of millions of peoples lives on a daily basis.Equally,we can attract the best local talent and have well-established R&D,manufacturing and distribution capabilities.We are enhancing these capabilities in 2011 with investments running into billions of Swiss Francs.Nescaf Caf Vit capture

191、s the intense and unique taste of authentic Vietnamese coffee:strong,black with an intense and bitter taste consumed over ice.The Nescaf Caf Vit product is the result of a R&D breakthrough which led to a patented process for co-extracting roast and ground coffee and soya.Nestl Rapport annuel 201018L

192、activit Alimentation et Boissons de Nestl possde la taille ncessaire pour atteindre les consommateurs dans le monde entier,la proximit permettant de leur offrir les aliments et les bois-sons quils souhaitent,une diversit suffisante pour les leur fournir diff-rents moments de la journe en prser-vant

193、un quilibre,lubiquit requise pour proposer des produits quand et o les consommateurs le veulent,une prsence continue durant la vie des consommateurs,et le savoir-faire per-mettant de faire progresser la science nutritionnelle et dinstiller des aspects relatifs la nutrition,la sant et au bien-tre dan

194、s lensemble des catgo-ries daliments et de boissons.Tels sont les piliers sur lesquels nous nous basons pour affirmer que nous sommes un leader en matire de Nutri-tion,de Sant et de Bien-tre.Ces piliers nous servent tablir notre programme de Nutrition,de Sant et de Bien-tre dans toutes nos catgories

195、 au bnfice des millions de consommateurs qui achtent chaque jour nos produits dans le monde entier.Il est rsum dans notre devise Good Food,Good Life.Celle-ci signifie que nous entendons proposer les produits les plus savoureux dans nos catgories car aprs tout,manger et boire doi-vent avant tout tre

196、source de plaisir mais aussi en amliorer les qualits nutritionnelles.A cet effet,nous nous assurons que les produits que nous introduisons prsentent des qualits gustatives et nutritionnelles sup-rieures celles de la concurrence,dans chaque catgorie.Cest ce que nous appelons 60/40+,le 60/40 reprsenta

197、nt la prfrence des consommateurs que nous visons,et le+lavantage nutri-tionnel.Celui-ci peut rsulter de la rduction ou de lexclusion de certains ingrdients,ou encore de laddition dautres ingrdients,en vue denrichir le produit concern ou dapporter des avantages spcifiques au consomma-teur grce nos Br

198、anded Active Bene-fits.Nous nous engageons par ailleurs fournir des informations nutrition-nelles claires et des conseils sur les emballages ou via des canaux ddis,tels que des sites web et des lignes dassistance tlphonique.Ce faisant,nous nous efforons de tenir compte de trois facteurs essentiels u

199、ne ali-mentation saine:le plaisir,lquilibre et la comprhension.Certains groupes de consomma-teurs prsentent des besoins nutrition-nels spcifiques,auxquels nous rpon-dons avec Nestl Nutrition,qui propose des produits et des services taills sur mesure pour eux.Les nourrissons constituent notre princip

200、ale priorit.Nous pensons que lallaitement mater-nel est le meilleur et nous engageons mettre notre expertise nutritionnelle au service des gnrations futures,pour quelles soient en meilleure sant.Pour ce faire,nous nous donnons pour mission de sensibiliser les parents limportance capitale que revt un

201、e nutrition approprie ds les tout pre-miers jours dun enfant grce notre approche Start Healthy,Stay Healthy de la nutrition infantile,et en leur pro-posant des produits qui leur donnent les moyens datteindre cet objectif.Lune des responsabilits qui incom-bent un leader est celle douvrir la voie:ains

202、i,nous voulons dvelopper le domaine innovant de la nutrition per-sonnalise fonde sur les sciences de la sant pour la prvention et le traite-ment daffections telles que le diabte,lobsit,les maladies cardiovascu-laires et la maladie dAlzheimer.En sep-tembre 2010,nous avons annonc deux initiatives:dune

203、 part,la cration de Nestl Health Science qui inclura lactivit gre sur un plan mondial de Nestl HealthCare Nutrition(CHF 1,6 mil liard),et dautre part,celle du Nestl Institute of Health Sciences qui mnera des travaux de recherche dans les domaines pertinents de la science biomdicale et traduira cette

204、 connaissance en stratgies nutrition-nelles en vue damliorer la sant et la longvit.Nous sommes convaincus que la nutrition personnalise fonde sur les sciences de la sant crera de la valeur pour Nestl ainsi que pour la collectivit,en permettant de prvenir,dattnuer et de traiter des maladies svres et

205、chroniques.Nutrition,Sant et Bientre Marchs mergents et Produits Positionnement PopulaireConsommation hors foyer Tendance au haut de gamme Moteurs de croissanceRachet en 2010,DiGiorno est le leader des pizzas surgeles aux Etats-Unis.Fabri-ques partir de crales,de viandes,de lgumes et de fro-mages de

206、 haute quali-t,les pizzas DiGiorno contiennent les l-ments cls dun r-gime mditerranen quilibr,notamment des glucides,des li-pides et des protines,tout en proposant une alimentation varie et aussi apptissante qu la sortie du four.Inciter les consomma-teurs prparer des repas quilibrs dans des proporti

207、ons raison-nables,sans oublier les salades rpond parfaitement notre devise Good Food,Good Life.Nestl Annual Report 201018Nestls Food and Beverages business has the scale to touch consumers all over the world;the intimacy to provide the food and beverages they want;the diversity to do so at a great m

208、any eating occasions and to provide balance;the ubiquity to provide it whenever and wherever consumers want it;the presence to be there throughout consumers lives;and the know-how to advance nutritional science and to bring nutrition,health and wellness arguments to all food and beverage categories.

209、These are the pillars on which we make our claim of leadership in Nutrition,Health and Wellness:unmatched scale,intimacy,diversity,ubiquity,presence and know-how.We use these pillars to build our nutrition,health and wellness agenda across our categories for the benefit of the millions of consumers

210、everywhere who consume our products every day.That agenda is encapsulated in the expression“Good Food,Good Life”.This means that we aim to provide the best tasting products in our categories after all,eating and drinking is first and foremost about enjoyment and pleasure but that we also want to bri

211、ng improved nutrition to our categories:we do this by ensuring that our product launches taste better and are nutritionally superior to those of our competitors in each category.We call this 60/40+,with the 60/40 being our targeted consumer preference and the+representing nutritional advantage.Nutri

212、tional advantage might be achieved by the reduction or exclusion of certain ingredients or by the addition of some,either for fortification or for particular consumer benefits through our Branded Active Benefits.Further,we are committed to providing clear nutritional information and advice on-pack a

213、nd through channels such as dedicated websites and helplines.And by doing so,we aim to contribute to the pleasure,balance and understanding that are critical to a healthy diet.There are consumers who have specific nutritional needs.We are addressing their needs through Nestl Nutrition,with its speci

214、fic products and services tailored to the needs of those consumer groups.Our biggest area of focus is infants.We believe that“breast is best”,and it is our commitment to use our nutritional expertise to build healthier generations,one infant at a time.We are doing this by pursuing a mission to build

215、 awareness among parents of the extreme importance of appropriate nutrition from the very beginning of a childs life through our“Start Healthy,Stay Healthy”approach to infant nutrition,and by providing the products to help parents achieve that aim.One responsibility of leadership is to be a pioneer:

216、we aim to develop the innovative area of personalised health science nutrition to prevent and treat health conditions such as diabetes,obesity,cardiovascular disease and Alzheimers disease.In September 2010 we announced two initiatives:the creation of Nestl Health Science,incorporating the existing

217、global CHF 1.7 billion Nestl HealthCare Nutrition business;and the creation of the Nestl Institute of Health Sciences,which will conduct research in relevant areas of biomedical science to translate this knowledge into nutritional strategies to improve health and longevity.We believe that personalis

218、ed health science nutrition will create value for Nestl,and for society,by preventing,improving and treating acute and chronic medical conditions.Nutrition,Health and Wellness Emerging markets and Popularly Positioned ProductsOut-of-home consumption Premiumisation GrowthdriversAcquired in 2010,DiGio

219、rno is the leader in frozen pizzas in the USA.Made with high quality cereals,meats,vegetables and cheeses,DiGiorno pizzas deliver on key elements of a balanced Mediterranean diet,such as carbohydrates,fats and proteins while adding variety and pleasure to peoples diet with their fresh baked taste.En

220、couraging consumers to create balanced meals right portions,addition of salads strongly delivers on the “Good Food,Good Life”promise.Nestl Annual Report 2010Nestl Annual Report 20102019Nestl Coffee-Mate,a billionaire brand,has a strong position in the USA and is growing in emerging markets,particula

221、rly where Nescaf has a strong presence.The US market has benefited from recent launches of the Caf Collection flavours,such as White Chocolate Caramel Latte,as well as seasonal editions.Jenny Craig is a clinically proven weight management programme with a holistic approach to weight loss and weight

222、maintenance focusing on“food,body and mind”.It offers the choice of either in-person support at a Centre or at home support by telephone through a dedicated personal consultant.In 2010,Jenny Craig was launched in the UK and France.Nestl Golden Morn is the leading cereal brand in Nigeria.It is an aff

223、ordable and nutritious instant porridge suitable for the entire family.Made from locally sourced maize and soya,Golden Morn is a good source of protein,calcium and dietary fibre.Nestl Pure Life,the biggest selling water in the USA and growing dynamically in emerging markets,is the worlds biggest wat

224、er brand.It benefits from a multi-year,on-going light-weighting programme for its bottle.With its great taste,Nestl Pure Life makes healthy hydration pleasurable and affordable for the whole family.Eskimo ice cream is sold in Thailand,and was developed as a wide range of products with the right nutr

225、ition profile for children,combining pleasure and fun.Its marketing communication incorporates education about the right eating habits and the benefits of physical activity.Nestl brands touch consumers in all walks of life,throughout their lives.From starting healthy to staying healthy,to pleasurabl

226、e indulgence.But also for specific needs as we get older.This ability to touch consumers throughout their lives and at all eating occasions is unmatched in our industry and lies at the heart of our commitment to delivering“Good Food,Good Life”and to building our leadership in Nutrition,Health and We

227、llness.Vitaflo was acquired in 2010.Its products are developed for specific medical purposes,such as inborn errors of metabolism(IEM)and disease related malnutrition(DRM).The business,which has an international presence,will be incorporated in Nestl Health Science S.A.from 2011.Nestl Annual Report 2

228、010Nestl Annual Report 20102019Nestl Coffee-Mate,a billionaire brand,has a strong position in the USA and is growing in emerging markets,particularly where Nescaf has a strong presence.The US market has benefited from recent launches of the Caf Collection flavours,such as White Chocolate Caramel Lat

229、te,as well as seasonal editions.Jenny Craig is a clinically proven weight management programme with a holistic approach to weight loss and weight maintenance focusing on“food,body and mind”.It offers the choice of either in-person support at a Centre or at home support by telephone through a dedicat

230、ed personal consultant.In 2010,Jenny Craig was launched in the UK and France.Nestl Golden Morn is the leading cereal brand in Nigeria.It is an affordable and nutritious instant porridge suitable for the entire family.Made from locally sourced maize and soya,Golden Morn is a good source of protein,ca

231、lcium and dietary fibre.Nestl Pure Life,the biggest selling water in the USA and growing dynamically in emerging markets,is the worlds biggest water brand.It benefits from a multi-year,on-going light-weighting programme for its bottle.With its great taste,Nestl Pure Life makes healthy hydration plea

232、surable and affordable for the whole family.Eskimo ice cream is sold in Thailand,and was developed as a wide range of products with the right nutrition profile for children,combining pleasure and fun.Its marketing communication incorporates education about the right eating habits and the benefits of

233、 physical activity.Nestl brands touch consumers in all walks of life,throughout their lives.From starting healthy to staying healthy,to pleasurable indulgence.But also for specific needs as we get older.This ability to touch consumers throughout their lives and at all eating occasions is unmatched i

234、n our industry and lies at the heart of our commitment to delivering“Good Food,Good Life”and to building our leadership in Nutrition,Health and Wellness.Vitaflo was acquired in 2010.Its products are developed for specific medical purposes,such as inborn errors of metabolism(IEM)and disease related m

235、alnutrition(DRM).The business,which has an international presence,will be incorporated in Nestl Health Science S.A.from 2011.Nestl Annual Report 201022Innovation&renovation is the process through which we keep our brands consumer-relevant and competitor-differentiated.It is driven by insights from o

236、ur consumers and by our own initiatives,nutritional and scientific developments and R&D break-throughs.Nestls R&D touches all aspects of the food and beverage industry.For example,our R&D capabilities in beverage systems have been translated into leadership in coffee systems,with about 30%of the mar

237、ket,and are being extended across other opportunities.Nespresso,with sales of CHF 3.2 billion in 2010,is the leader in super-premium portioned coffee.It has built its position on unsurpassed coffee quality,continuous innovation,a unique route to market and a holistic approach to sustainability.Its l

238、eadership has been achieved with the support of passionate consumers with,for example,about 10 million members in the Nespresso club.Nescaf Dolce Gusto,with sales of about CHF 450 million in its fourth year,is becoming the system of choice for consumers who want coffee shop quality drinks at home,ma

239、de in seconds.Launched across Europe and in the Americas,it offers a wide range of drinks,with a particular focus on cappuccino coffees,but also chocolate,as well as Nesquik.SPECIAL.T by Nestl,launched in France and Switzerland in September 2010 is Nestls first entry into the super-premium tea marke

240、t.It offers tea lovers the best tea in a system that combines sophistication and simplicity,with 25 varieties sourced from Asia and South Africa.Nestl Professional,our out-of-home business,with sales of CHF 6.1 billion in 2010,is the global leader in branded hot beverage solutions.It has a series of

241、 beverage systems,ranging from machines backed by personalised service,aimed at high-end restaurants and bars,to those which have been designed for low-cost operators in emerging markets.Recent launches include the premium Nescaf Milano system and the super-premium Viaggi barista system.Research&dev

242、elopment and innovation&renovation also play a vital role at Nestl Nutrition,as we seek to drive competitive differentiation and address consumer needs.Just one example is Infant cereals,the first product made by Henri Nestl and,as such,the very heart of Nestl.We are the worldwide leader with brands

243、 such as Cerelac,Nestum,Mucilon,Gerber and Nestl,and have about 65%market share in our top 20 markets.A significant driver of growth has been science-led innovation.An example is upgrading the entire Infant cereal portfolio in the area of Immune Protection through the addition of Bifidus BL,a propri

244、etary Branded Active Benefit developed in the Nestl Research Center.This,together with Immunonutrients,such as Iron,Zinc and Vitamins A&C,helps strengthen babies natural defences.The product has been launched in more than 100 markets in 2009 and 2010,and has been a great success,demonstrated by doub

245、le-digit organic growth in 2010 for the Infant cereals division.In common with Nestl Nutritions other categories,Infant cereal benefits from a multi-stage pipeline of innovation which ensures that the category and its consumers will benefit from innovations for years to come,enhancing the goodness o

246、f cereals and providing“big nutrition for small tummies”.Innovation&renovation Operational efficiency Whenever,wherever,however Consumer communication Operational pillarsIndia is one of the growing fastest and largest markets for Nestl Infant Cereals.As category leader,Cerelac drives innovation.The

247、entire portfolio in India now includes Nutriprotect and Growth Nutrients for Healthy Growth and development of the baby.With Cerelac Nutriprotect(immunonutrients)the baby will be nourished every day.Nestl Annual Report 201022Innovation&renovation is the process through which we keep our brands consu

248、mer-relevant and competitor-differentiated.It is driven by insights from our consumers and by our own initiatives,nutritional and scientific developments and R&D break-throughs.Nestls R&D touches all aspects of the food and beverage industry.For example,our R&D capabilities in beverage systems have

249、been translated into leadership in coffee systems,with about 30%of the market,and are being extended across other opportunities.Nespresso,with sales of CHF 3.2 billion in 2010,is the leader in super-premium portioned coffee.It has built its position on unsurpassed coffee quality,continuous innovatio

250、n,a unique route to market and a holistic approach to sustainability.Its leadership has been achieved with the support of passionate consumers with,for example,about 10 million members in the Nespresso club.Nescaf Dolce Gusto,with sales of about CHF 450 million in its fourth year,is becoming the sys

251、tem of choice for consumers who want coffee shop quality drinks at home,made in seconds.Launched across Europe and in the Americas,it offers a wide range of drinks,with a particular focus on cappuccino coffees,but also chocolate,as well as Nesquik.SPECIAL.T by Nestl,launched in France and Switzerlan

252、d in September 2010 is Nestls first entry into the super-premium tea market.It offers tea lovers the best tea in a system that combines sophistication and simplicity,with 25 varieties sourced from Asia and South Africa.Nestl Professional,our out-of-home business,with sales of CHF 6.1 billion in 2010

253、,is the global leader in branded hot beverage solutions.It has a series of beverage systems,ranging from machines backed by personalised service,aimed at high-end restaurants and bars,to those which have been designed for low-cost operators in emerging markets.Recent launches include the premium Nes

254、caf Milano system and the super-premium Viaggi barista system.Research&development and innovation&renovation also play a vital role at Nestl Nutrition,as we seek to drive competitive differentiation and address consumer needs.Just one example is Infant cereals,the first product made by Henri Nestl a

255、nd,as such,the very heart of Nestl.We are the worldwide leader with brands such as Cerelac,Nestum,Mucilon,Gerber and Nestl,and have about 65%market share in our top 20 markets.A significant driver of growth has been science-led innovation.An example is upgrading the entire Infant cereal portfolio in

256、 the area of Immune Protection through the addition of Bifidus BL,a proprietary Branded Active Benefit developed in the Nestl Research Center.This,together with Immunonutrients,such as Iron,Zinc and Vitamins A&C,helps strengthen babies natural defences.The product has been launched in more than 100

257、markets in 2009 and 2010,and has been a great success,demonstrated by double-digit organic growth in 2010 for the Infant cereals division.In common with Nestl Nutritions other categories,Infant cereal benefits from a multi-stage pipeline of innovation which ensures that the category and its consumer

258、s will benefit from innovations for years to come,enhancing the goodness of cereals and providing“big nutrition for small tummies”.Innovation&renovation Operational efficiency Whenever,wherever,however Consumer communication Operational pillarsIndia is one of the growing fastest and largest markets

259、for Nestl Infant Cereals.As category leader,Cerelac drives innovation.The entire portfolio in India now includes Nutriprotect and Growth Nutrients for Healthy Growth and development of the baby.With Cerelac Nutriprotect(immunonutrients)the baby will be nourished every day.Nestl Annual Report 2010Nes

260、tl Annual Report 20102423SPECIAL.T by Nestl is a pioneering single-serve capsule solution that invites consumers to discover the worlds best teas:from black,green,blue and white teas to flavoured teas,organic herbal infusions and red rooibos.The tea leaves are protected by hermetically sealed capsul

261、es,and the machine selects the perfect brewing time and temperature for each variety.Nestl 8 Cereals:Spain was a pioneer market to launch the range of Nestl Infant Cereals with Bifidus BL.Nestl 8 Cereals contains Immunonutrients such as Iron,Zinc,Vitamin A and Vitamin C to help support the babies na

262、tural defenses.Nescaf Dolce Gusto:the new Piccolo machine is very small and well-priced,but is built to the same standard as the bigger machines.This makes Piccolo a very convenient way of enjoying Nescaf Dolce Gusto,and incredible value for money,whilst its unique and quirky design reflects all the

263、 personality of our brand.Nespresso allows consumers to enjoy the perfect coffee every time.Nespresso starts with the highest quality of coffee and combines that with its cutting-edge machine design.Designed to fit into urban living spaces,the CitiZ range satisfies consumers demands for style,conven

264、ience and quality.The CitiZ&Milk has a built-in fresh milk-frother for cappuccino and latte lovers.The Viaggi barista system offers,at the touch of a button,a menu of hot or over-ice espresso,cappuccino,and chocolate-based beverages to Nestl Professional customers.Breakthrough proprietary technologi

265、es,specifically developed with Nescaf,Cailler,and Nestl,will enable the Viaggi beverage programme to offer,“cup after cup”,perfect consistency,delivered through a dedicated commercial and service platform.Nestls beverage R&D capabilities cover all aspects from farm to cup,including raw materials,fla

266、vour extraction,systems and packaging.The personalised consumer experience is at the heart of the Nespresso offer,with more than 200 boutiques such as the one in Sydney(top right),whilst Nescaf Dolce Gusto provides a fun and exciting experience for consumers who want caf-quality coffee at home.These

267、 systems enjoyed double-digit growth in 2010 and will continue to do so in 2011.Cerelac is a category icon in the Middle East,it includes Bifidus BL,a proprietary Branded Active Benefit developed in the Nestl Research Center,and the inherent goodness of Cereals.Nestl Annual Report 2010Nestl Annual R

268、eport 20102423SPECIAL.T by Nestl is a pioneering single-serve capsule solution that invites consumers to discover the worlds best teas:from black,green,blue and white teas to flavoured teas,organic herbal infusions and red rooibos.The tea leaves are protected by hermetically sealed capsules,and the

269、machine selects the perfect brewing time and temperature for each variety.Nestl 8 Cereals:Spain was a pioneer market to launch the range of Nestl Infant Cereals with Bifidus BL.Nestl 8 Cereals contains Immunonutrients such as Iron,Zinc,Vitamin A and Vitamin C to help support the babies natural defen

270、ses.Nescaf Dolce Gusto:the new Piccolo machine is very small and well-priced,but is built to the same standard as the bigger machines.This makes Piccolo a very convenient way of enjoying Nescaf Dolce Gusto,and incredible value for money,whilst its unique and quirky design reflects all the personalit

271、y of our brand.Nespresso allows consumers to enjoy the perfect coffee every time.Nespresso starts with the highest quality of coffee and combines that with its cutting-edge machine design.Designed to fit into urban living spaces,the CitiZ range satisfies consumers demands for style,convenience and q

272、uality.The CitiZ&Milk has a built-in fresh milk-frother for cappuccino and latte lovers.The Viaggi barista system offers,at the touch of a button,a menu of hot or over-ice espresso,cappuccino,and chocolate-based beverages to Nestl Professional customers.Breakthrough proprietary technologies,specific

273、ally developed with Nescaf,Cailler,and Nestl,will enable the Viaggi beverage programme to offer,“cup after cup”,perfect consistency,delivered through a dedicated commercial and service platform.Nestls beverage R&D capabilities cover all aspects from farm to cup,including raw materials,flavour extrac

274、tion,systems and packaging.The personalised consumer experience is at the heart of the Nespresso offer,with more than 200 boutiques such as the one in Sydney(top right),whilst Nescaf Dolce Gusto provides a fun and exciting experience for consumers who want caf-quality coffee at home.These systems en

275、joyed double-digit growth in 2010 and will continue to do so in 2011.Cerelac is a category icon in the Middle East,it includes Bifidus BL,a proprietary Branded Active Benefit developed in the Nestl Research Center,and the inherent goodness of Cereals.Financial reviewSales GroupCHF 109.7 billionEBIT

276、GroupCHF 16.2 billion Sales continuing operationsCHF 104.6 billionEBIT continuing operationsCHF 14.0 billion Operating cash flow GroupCHF 13.6 billionUnderlying earnings per share in constant currencies+10.3%Organic growth Group6.2%EBIT margin Group+20 bps to 14.8%Organic growth continuing operation

277、s6.0%EBIT margin continuing operations+30 bps to 13.4%Free cash flow GroupCHF 7.8 billionProposed dividend per share+15.6%to CHF 1.85Real internal growth Group4.6%Real internal growth continuing operations4.4%27Nestl Annual Report 2010In millions of CHF(except per share data)SalesEBIT(Group)Earnings

278、 Before Interest,Taxes,restructuring and impairmentsEBIT(Continuing operations)Earnings Before Interest,Taxes,restructuring and impairmentsProfit for the year attributable to shareholders of the parent Net profit(a)Equity attributable to shareholders of the parent before proposed appropriation of pr

279、ofit of Nestl S.A.Market capitalisation,end DecemberPer shareTotal basic earnings per share(a)CHFEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.CHFIn millions of USD(except per share data)SalesEBIT(Group)Earnings Before Interest,Taxes,restructu

280、ring and impairmentsEBIT(Continuing operations)Earnings Before Interest,Taxes,restructuring and impairmentsProfit for the year attributable to shareholders of the parent Net profit(a)Equity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.Market capital

281、isation,end DecemberPer shareTotal basic earnings per share(a)USDEquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.USDIn millions of EUR(except per share data)SalesEBIT(Group)Earnings Before Interest,Taxes,restructuring and impairmentsEBIT(Continu

282、ing operations)Earnings Before Interest,Taxes,restructuring and impairmentsProfit for the year attributable to shareholders of the parent Net profit(a)Equity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.Market capitalisation,end DecemberPer shareTot

283、al basic earnings per share(a)EUREquity attributable to shareholders of the parent before proposed appropriation of profit of Nestl S.A.EUR(a)2010 figure is not comparable as it includes a one-off gain on the disposal of the remaining interest in Alcon.Principal key figures(illustrative)Income state

284、ment figures translated at weighted average annual rate;Balance sheet figures at year-end rate.2010109 72216 19414 03834 23361 867178 31610.1618.352010104 97215 493113 43132 75165 977190 1639.7219.57201079 51811 73610 17424 81049 377142 3177.3614.652009107 61815 69913 22210 42848 915174 2942.9213.69

285、200999 36114 49512 2079 62847 449169 0702.7013.28200971 25910 3958 7556 90532 922117 3081.939.2228Nestl Annual Report 2010OverviewThis section should be read in connection with the 2010 Consolidated Financial Statements.After the decline in economic growth in 2009 and the related increases in unempl

286、oyment,the economic environment in 2010 remained uncertain,with continued concerns over consumer confidence,as well as increasing raw material inflation and currency volatility as the year evolved.Nestl experienced its strongest growth of 2009 in the final quarter of the year,and therefore entered 2

287、010 with strong momentum.This impetus remained consistent throughout the year,even in the final quarter of 2010 when we were lapping that strong final quarter of 2009.We,therefore,also entered 2011 with strong momentum in our business:this will help us to manage the challenges that we face and to ta

288、ke full advantage of our opportunities to drive better performance and enhance shareholder value.It was not only our business momentum that remained consistent throughout 2010;so did our focus on our strategic priorities,outlined in the previous chapter.This alignment around the world has created a

289、framework within which we are driving our business,and within which we are able to adjust the different levers in response to changing dynamics and competitive environments around the world.Nutrition has a critical role to play for consumers in emerging markets,many of whom would lose their incomes

290、if they were unable to work;and it is a priority for developed market consumers too,who have an increasingly sophisticated understanding of the relationship between diet and health.Our drive to address the needs of those low income consumers with appropriate nutritional enhancements to Popularly Pos

291、itioned Products(PPPs)is different from our approach in developed markets with,for example,the launch of the Jenny Craig Weight Management system in Europe.Out-of-home consumption is a big part of peoples lives in both developed and emerging markets,but our approach might differ in New York from New

292、 Delhi.PPPs are growing in the developed markets,whilst premium products are growing in the emerging,and each opportunity needs its own approach:for example,we cannot use a PPP business model for premium in emerging markets,or vice versa.Equally,our route-to-market strategies will be very different

293、in different markets.It is this flexibility in terms of how we manage our business,as well as our agility in being able to respond quickly to changing market dynamics that have held us in good stead in 2010 and will continue to do so in 2011.Another constant in 2010 was our mix of shorter-term perfo

294、rmance and longer-term thinking.This resulted in Nestl delivering improved top and bottom-line performances in 2010,whilst investing in brands and R&D,capabilities,distribution,structures and capacities to ensure long-term profitable growth and value creation.Our delivery of shorter-term performance

295、 with longer-term thinking will remain our motivation in 2011.29Nestl Annual Report 2010Nestl billionaire brands achieved 7.1%organic growth in 201030Nestl Annual Report 2010Sales(Group)In billions of CHF11010090In billions of CHFP Europe(a)P Americas(a)P Asia,Oceania and Africa(a)(a)Each region inc

296、ludes sales of the Zones,Nestl Waters,Nestl Nutrition,Nestl Professional,Nespresso and Food and Beverages joint ventures.0 10 20 30 40 CHF bioFood and Beverages sales and organic growth(OG)by continentOG(%)10.07.55.02.52010 salesThe Group achieved organic growth of 6.2%,including real internal growt

297、h(RIG)of 4.6%.Foreign exchange impacted sales by 3.6%,whilst divestitures,net of acquisitions,reduced sales by 0.6%.Overall,Group sales increased by 2.0%to CHF 109.7 billion.Continuing operations organic growth was 6.0%,with real internal growth of 4.4%.The foreign exchange impact was 3.8%,and acqui

298、sitions,net of divestitures,added 1.8%.Overall,continuing operations sales increased by 4.0%.Organic growth for the Food and Beverages operations was 5.7%in the Americas,3.7%in Europe and 10.2%in Asia,Oceania and Africa.We achieved 11.5%organic growth in emerging markets,as well as growth in the dev

299、eloped world.This performance reflects market share gains in each of the regions and across our categories.It has been driven by continued investment in our growth pillars,aligned with our strategic roadmap.These include increasing distribution of Popularly Positioned Products(PPPs)and the continuin

300、g roll-out of premium products in both emerging and developed countries;our focus across all our categories on Nutrition,Health and Wellness;expanding our reach in the out-of-home market;building our innovation pipeline;and increasing our consumer marketing and brand investment.ProfitabilityThe Grou

301、ps EBIT margin increased by 20 basis points to 14.8%of sales.The EBIT margin is not comparable to that of 2009 following the disposal of the remaining interest in Alcon in August 2010.The continuing operations EBIT margin increased by 30 basis points to 13.4%,both reported and in constant currencies

302、.This improvement was delivered at the same time as we increased our investment in our brands:our marketing expenses increased by 100 basis points,with consumer facing marketing spend up 13.2%in constant currencies.The improvement in EBIT margin was driven by our sales growth and business mix,as wel

303、l as by the achievement of operating efficiencies of over CHF 1.5 billion through Nestl Continuous Excellence,which benefited the cost of goods sold,distribution and administrative costs.This reflects our continued drive for operational excellence from farm to fork.We achieved significant cost savin

304、gs at the same time as increased levels of safety,quality,service and environmental performance.These actions contributed significantly to our 2010 performance;and at the same time laid foundations for further performance improvement in 2011.The continuing operations cost of goods sold reduced by 40

305、 basis points.Savings and the leverage from our growth more than compensated the cost pressures during the year,which increased in the second half.109.92008107.62009109.72010107.6200798.52006Sales34.746.822.2OG 3.7%5.7%10.2%31Nestl Annual Report 2010EBIT(Group)In billions of CHF161514EBIT margin(Gro

306、up)In%14.514.013.5EBIT(continuing operations)In billions of CHF141312EBIT margin(continuing operations)In%13.513.012.5The continuing operations distribution costs reduced by 20 basis points.This is another area of focus of efficiencies,particularly in our more distribution-intensive businesses such

307、as Nestl Waters and Ice cream.These savings are pursued both in our drive to further improve our environmental performance and as part of our ongoing drive for continuous improvement in operating performance.The continuing operations administrative costs fell by 70 basis points.There was a rigorous

308、control of fixed costs,enabling leverage from growth.Business reviewZone Americas had sales of CHF 34.3 billion,5.9%organic growth,3.0%RIG and an EBIT margin of 16.5%,down 30 basis points.In North America,we saw a continued strong performance from the Purina PetCare business,with share gains over th

309、e year and all segments showing growth,double digit in Snacks.Innovations included Purina ONE Shreds and Fancy Feast Gravy Lovers.Chocolate also had a good year,helped by a strong performance from our seasonal business,the launch of Wonka into the Chocolate category,as well as innovations such as Bu

310、tterfinger Snackerz.Frozen prepared meals,particularly Lean Cuisine,continued to suffer from weak consumer demand for the category.There was growth,however,for Stouffers in the family and value segments.There was a positive performance from the frozen pizza business in its first year in our ownershi

311、p,including market share gains.Ice cream performed well in a tough market,also achieving share gains;a particular highlight was the snacks business which grew double digit,with strong performances from brands such as Skinny Cow and Nestl Drumstick cones.Other successes included Hagen-Dazs and our ne

312、w Cups business.The Cups offer a single-serve snacking occasion and also provide the opportunity for new consumers to try our brands.Soluble coffee also had a good year,with Nescaf Clsico continuing to be the key growth driver.In Latin America,growth was double digit for the year.Brazil,where Nestl

313、will be celebrating its 90th anniversary in 2011,had a very strong year,with good performances across its categories,and particularly in milk.In Mexico,soluble coffee,chocolate and powdered beverages were among highlights.Across the region,all our categories grew,many of them double digit,including

314、the big three,dairy,chocolate and soluble coffee.There was also a very good performance from ready-to-drink beverages,in part due to the launch 15.7200815.7200916.2201014.3200814.6200913.2200913.1200914.8201014.0201013.4201015.0200714.0200713.3200613.5200632Nestl Annual Report 2010in Brazil into PET

315、 of brands such as Nescau and Alpina.The Zones EBIT margin fell by 30 basis points,reflecting increased brand investment,not fully compensated by efficiency gains.Zone Europe had sales of CHF 21.6 billion,2.5%organic growth,1.7%RIG and an EBIT margin of 12.6%,up 20 basis points.In Western Europe,we

316、grew in all major markets,in the face of difficult economic conditions and despite the tough competitive environment.France and Great Britain had a particularly positive year,but there were resilient performances in Germany,Iberian region and Italy,as well as Switzerland.This reflects market share g

317、ains in many countries.In Greece,the only market where we didnt see growth,we did make market share gains.In Eastern Europe,Russia continued to deliver a lower level of growth than we would normally expect,reflecting the impact on our more impulsive-driven categories,particularly Chocolate,of the to

318、ugh economic environment there.That said,there were more dynamic performances from soluble coffee and ambient culinary.Amongst the Zones categories,soluble coffee,PetCare,frozen food,especially Wagner and Buitoni pizza,and chocolate,especially KitKat,stand out.The Zones big three regional innovation

319、 platforms,Maggi Juicy Chicken,Nescaf Dolce Gusto and Nescaf Green Blend,all performed well in 2010 and were key contributors to growth.The Zones EBIT margin increased by 20 basis points as efficiency gains and the leverage from the good level of growth more than compensated the increased brand supp

320、ort and investment in innovation and product launches that drove the market share gains.Zone Asia,Oceania and Africa had sales of CHF 17.4 billion,8.7%organic growth,7.0%RIG and an EBIT margin of 16.9%,up 20 basis points.The emerging markets achieved double-digit growth,with strong performances acro

321、ss the Zone:from Africa,from Asia,including India and China,Indonesia and Thailand,and from the Middle East.The developed markets also achieved growth,meaning that we grew our business in the developed markets of each of our three Zones.There were strong performances by most categories in Zone AOA.A

322、mbient culinary,primarily Maggi,ambient dairy and ready-to-drink beverages,brands such as Milo and Nescaf,all grew double digit.Other categories,such as powdered beverages and chocolate,enjoyed high single-digit growth.Particularly notable was the performance of Nescaf in Japan,where we sold about 5

323、00 000 coffee systems in the year,either Nescaf barista or Nescaf Dolce Gusto,and we also enjoyed success there with the relaunch of our super-premium variant of pure soluble Nescaf.Innovation highlights included the roll-out in Africa and South Asia of a new flavour enhancer by Maggi,and PPPs acros

324、s the Zone,including for confectionery in China,India and Indonesia.The Zones EBIT margin increased by 20 basis points,again reflecting the benefits of growth and increased efficiencies.Operating segments:Food and Beverages EBIT margin In%Zone Europe Zone Americas Zone Asia,Oceania and Africa Nestl

325、Waters Nestl Nutrition Other Food and Beverages(a)(a)Mainly Nestl Professional,Nespresso and Food and Beverages joint ventures managed on a worldwide basis.Operating segments:Food and Beverages sales and organic growth(OG)OG(%)10.07.55.02.50 10 20 30 CHF bioIn billions of CHFP Zone EuropeP Zone Amer

326、icasP Zone Asia,Oceania and AfricaP Nestl WatersP Nestl NutritionP Other Food and Beverages(a)12.616.516.97.418.116.4Sales21.634.317.49.110.311.0OG 2.5%5.9%8.7%4.4%6.7%9.8%33Nestl Annual Report 2010Products:EBIT margin In%Powdered and liquid beverages Water(a)Milk products and Ice cream Nutrition(a)

327、Prepared dishes and cooking aids Confectionery PetCare Pharmaceutical products(b)(a)The figures between Operating segments and Products are slightly different due to the fact that some water and nutrition products are also sold by Operating segments other than Nestl Waters and Nestl Nutrition.(b)Inc

328、luding Alcon discontinued operations.In billions of CHFP Powdered and liquid beveragesP Water(a)P Milk products and Ice creamP Nutrition(a)P Prepared dishes and cooking aidsP ConfectioneryP PetCareP Pharmaceutical products(b)Products:sales and organic growth(OG)OG(%)10.07.55.02.50 6 12 18 CHF bioNes

329、tl Waters had sales of CHF 9.1 billion,4.4%organic growth,4.8%RIG and an EBIT margin of 7.4%,up 40 basis points.Nestl Waters achieved growth in all three zones,with momentum building throughout the year,as growth returned to the industry in the developed world and continued to be very strong in emer

330、ging markets.We gained market share in Europe and North America,as well as in most emerging countries where we are present.Nestl Pure Life,the biggest water brand in the world,had another year of double-digit growth.There were good performances also from Perrier and S.Pellegrino,as well as many regi

331、onal brands.In North America,the market was helped by the hot summer but there was underlying growth driven by bottled waters improved value proposition,by promotional activity and by consumers switching from other beverages.Amongst brands,Poland Spring,Ozarka,Deer Park and Ice Mountain were highlig

332、hts.In Europe,all markets improved their growth levels over 2009,and it was double digit in the UK.France,where Vittel and Contrex performed well,saw mid-single digit growth and a gain in market share.Emerging markets achieved double-digit growth and now represent 15%of Nestl Waters sales.Nestl Wate

333、rs EBIT margin improvement was driven in part by the return to growth in the developed world.Significant improvements in efficiencies both in manufacturing and distribution also contributed,enabling increased brand support despite increased input costs and reduced pricing.Nestl Nutrition had sales of CHF 10.3 billion,6.7%organic growth,5.5%RIG and EBIT margin of 18.1%,up 70 basis points.Infant Nut