Driving the business towards profitable growth and leadership

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Driving the business towards profitable growth
and leadership
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A BRIEF HISTORY
Pre 1991 Minor business - limited presence in
Europe and South America End 1991 Decision b
y General Management to define the ice cream
category as a key strategic growth category
1991 - 1997 Rapid expansion of business by acqui
sition in all Zones. Market presence expanded
from 10 to 40 markets Business size multiples
by 3.5 1998 - 2000 Consolidation of acquired bu
siness - regional focus. Selective acquisitions
2001 - present Drive towards accelerated
profitable growth leadership
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Rapid growth through acquisition
I N D E X
Canada Peru Dom.Rep. Jamaica Cuba
USA 100 ICP
Schöller
HongKong UK
Russia China Denmark Gulf.Count. Panama Egype
(Dolce)
Singapore
Costa Rica Norway
USA J/v Häagen Dazs
S.Africa Italy Philippines
Taiwan Brazil Malaysia Germany
Holland Australia Thailand Spain Miko/Avidesa
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PRODUCTION AND SALES AREA
ONLY SALES AREA
NO PRESENCE
NESTLÉ ICE CREAM WORLDWIDE
NORWAY
DENMARK
SWITZERLAND
UNITED STATES
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STRATEGIC OBJECTIVES
2000
Worldwide leadership ( market share)
Nestlé
Unilever
Double-digit EBITA ( NPS)
1.2
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WHERE WE STAND
EUR 15
AMS 17
AOA 15
SOM
Spain Switzerland Russia
Canada USA Chile Argentina
Australia Philippines Malaysia South Africa Eg
ypt
Hong Kong Tunisia
Profitable market leader (70 of total NIC EBITA
)
Strong no. 2 (growing improving EBITA)
China Thailand Israel
Brazil Caribbean Mexico
Improvement needed (SOM EBITA)
Peru
Leadership achieved 2001-2003
Leadership through Dreyer's transaction 2003
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SUSTAINED MARGIN IMPROVEMENT BASED ON GROWTH,
MARKET SHARE, INNOVATION AND PRODUCTIVITY
ICE CREAM CONSOLIDATED EBITA
break even
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2005
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MANY RED MARKETS IN 2000
EBITA
MEXICO
SWITZERLAND
CHILE
PERU
USA
TUNISIA
SPAIN
ITALY
EGYPT
PHILIP.
ARGENTINA
RIG
FRANCE
S.AFRICA
RUSSIA

MALAYSIA
CARIBBEAN
AUSTRALIA
CANADA
BRAZIL
THAILAND
HOLLAND
GERMANY
ISRAEL
NORDIC
CHINA RIG n.a., EBITA (26)
EBITA before royalties
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EVOLUTION TO GREEN
CEBITA
SWITZERLAND
MEXICO
EGYPT
CHILE
TUNISIA
10
JAMAICA
ITALY
CHILE
RUSSIA
IBERIAN
AUSTRALIA
THAILAND
MALAYSIA
GERMANY
5
PHILIP.
BRAZIL
CANADA
FRANCE
S.AFRICA
RIG
RIG
USA
ARGENTINA
PERU
ISRAEL
0
0
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ISRAEL

PERU

-5
NORDIC C
CHINA
CEBITA
EBITA before royalties
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GREEN MARKETS MANAGEMENT PRINCIPLES
Innovative business approach
- products
- sales - technical
Intense internal communication
Stealing with pride
Integrated management
Entrepreneurial approach
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NIC BUSINESS STRATEGY
Innovation/Renovation

• Driven by consumer insights
• Focus on adding value - concepts/brands
• Balance between local central driven
• projects
• Improve efficiency and speed of roll out

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NIC BUSINESS STRATEGY
Availability visibility

• "Own the street"
• Develop alternative trade channels
• Distribution efficiency and POP
• Management (DSS)

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NIC BUSINESS STRATEGY
Superpremium segment

• Growth and leadership in North America
• through Häagen Dazs brand
• development
• International expansion of Mövenpick
• Antica Gelateria del Corso

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NIC BUSINESS STRATEGY
Nutritional approach

• "Better for You" ranges development
• - Low fat
• - Low sugar
• - Yoghurt based
• - All natural
• ...delivering the pleasure of a great
• ice cream

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PROFITABLE GROWTH
Innovation/ Renovation
Availability visibility
Superpremium segment
Nutritional approach

• Driven by consumer
• insights
• Focus on adding value
• Balance between local
• central driven
• projects
• Improve efficiency
• and speed of roll out

• "Own the street"
• Develop alternative
• trade channels
• Distribution
• efficiency and POP
• Management (DSS)

• Growth and
• leadership in North
• America through
• Häagen Dazs
• brand development
• International
• expansion of
• Mövenpick Antica
• Gelateria del Corso

• Better for You"
• ranges development
• - Low fat
• - Low sugar
• - Yoghurt based
• - All natural
• ...delivering the
• pleasure of a great
• ice cream

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Conclusion Never let an ice cream business
"cruise"
... it is like driving a car uphill if you ease
your foot off the accelerator, the car goes
backwards!
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Thank you!