2013 9M sales conference transcript

NESTLÉ S.A.

2013 NINE MONTH SALES CONFERENCE CALL TRANSCRIPT

17 October 2013, 08:30 CET

Speakers:
Paul Bulcke, Chief Executive Officer, Nestlé S.A.
Wan Ling Martello, Chief Financial Officer, Nestlé S.A.
Robin Tickle, Head of Corporate Media Relations, Nestlé S.A.
Luis Cantarell, President & CEO Nestlé Health Science, Nestlé Nutrition
Patrice Bula, Head of SBU, Marketing and Sales, Nestlé S.A.
John J.Harris, Nestlé Waters
Chris Johnson, Head of Zone Americas, Nestlé S.A.
Nandu Nadkishore, Head of Zone AOA, Nestlé S.A.
Laurent Freixe, Head of Zone Europe, Nestlé S.A.

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Robin Tickle, Nestlé S.A., Head of Corporate Media Relations
Slide – Title
Good morning, ladies and gentlemen. Welcome to our nine months' sales conference here in
Vevey. The conference will be held in English, but you can also follow it in German and
French using the headsets provided. If you're watching the webcast, you can choose the
right language by clicking on the respective link on the webcast page.
Now, let's start. Paul, you have the floor.
Paul Bulcke, Nestlé SA, Chief Executive Officer
Slide – Title
Thank you, Robin. Good morning, ladies and gentlemen, and welcome to our nine months'
sales conference, and thank you for your interest in our Company.
Also, I want to say welcome to everybody who is following us by the webcast, also thank you
for your interest in our Company.
On our podium we have, first, Wan Ling Martello, our CFO; on her left, we have Roddy ChildVilliers, Head of our Investors Relations; and on my right I have Robin Tickle, Head of
Corporate Media Relations. And I have here in the front row my colleagues of the Executive
Board who are there also to answer questions, maybe, later on.
We're holding this Fall conference back in Vevey after a few years having been travelling.
Also we have changed the format; we are combining now the investors'/analysts' call with the
press conference, and that's because also, as these events are webcasted, we felt there is
an increasing duplication of interesting points that we want to cover and we rather do it in
one conference and we give it enough time to answer all your questions.
So that's why we have combined it. We came back to Vevey for once after, I think, three
years travelling. First we went to New York, then Paris and last year we were in Shanghai.
What we wanted to convey with also having it in different physical locations was showing and
sharing with you how our strategy, that we have been sharing with you in many locations is
actually being done in the markets, because that's where the action is; that's where the
results are brought in.
So in New York, in our biggest market, we had all the aspects of our strategy explained to
you through the different divisions that we have there.
In Paris, we were focusing on innovation because there was already quite a downturn in
Europe and how we could grow in Europe, and specifically in France, we shared with you the
strength of innovation and how we wanted to go about our own agenda, in spite of all the
negative headwinds to innovation.
Shanghai was the dynamism, what's happening in the emerging markets. We speak about
the emerging markets, well; it was really to share with you how we have increased our
presence there; how we have increased our engagement in this country that has a
fascinating prospects.
But it was actually an example of what we are doing also in Africa; what we are doing in Latin
America for so many years; it is engaging for the long term and building the capabilities
there.
You saw earlier this morning our sales figures of the nine months. I would say they are
sound, healthy sales figures. They are growth-based and they show continued acceleration
of growth, specifically real internal growth, which is the volume growth.

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It is the growth that reflects market position and leadership and it is growth based. It was
around the whole categories, also geographies. And we also are quite proud to show that still
in Europe, in spite of all the negative consumer confidence, we can show growth way ahead
of the market. Also how AOA zone has picked up in growth, again has increased their speed
and growth.
But I don't want to steal the show of Wan Ling. So Wan Ling, please, the floor is yours to
comment a little bit on our nine months' results.
Wan Ling Martello, Nestlé SA, Chief Financial Officer
Slide – Title
Thank you, Paul. Good morning, to everyone here in the room and happy Thursday to
everyone who is listening in to the webcast.
Slide – Disclaimer
I will take the safe harbour statement as read.
Slide – Highlights
It has only been two months since we reported our first half results so there should be no
surprises for you in our 9 months sales. Our sales, consistent with the first half, were driven
by a broad-based improvement in our Real Internal Growth, or RIG as we call. This
performance has enabled us to confirm unchanged our guidance for the full year.
Our 9 month sales were 68.4 billion Swiss francs, with an increased RIG of 3% and pricing of
1.4%, which was unchanged from the first half, giving organic growth of 4.4%.
One meaningful issue in the last few months has been the strengthening of the Swiss franc
against most currencies. There has also been significant weakness in a number of emerging
market currencies, such as those of Brazil and India. Our currency impact for the 9 months
was negative 2.5%, down from minus 0.9% at the half year.
Now coming back to RIG, I would highlight in particular the performance of Zone Europe,
where we are growing in a “no-growth” environment, and of Zone Asia, Oceania and Africa,
where we have seen a strong acceleration in the RIG. This broad-based growth, as Paul
alluded to earlier, both in emerging and developed markets, is one confirmation of Nestlé’s
commitment to being the “And Company” – a,n,d and- If you recall back in the full-year
roadshow, we talked about Nestlé being an And company, developed - emerging, PPP premium, investing for the future as well as delivering for the short term.
So in this case determined not just to benefit from the growth in the more dynamic emerging
countries but also to grow in developed markets, as well.
With all the excitement in recent years about the potential for growth in emerging markets, it
is sometimes forgotten that developed markets account for around 50% of the world
economy. One of the points of difference in Nestlé’s growth has been that we are equally
focused on growing in developed markets, seeing no reason why we should limit ourselves
to that 50% of the global economy that is driven by emerging markets. With the slowdown in
emerging markets, our continued focus on the developed markets is perhaps becoming an
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even greater differentiator. In the first 9 months of 2013 we grew 1.1% in the developed
world as well as 8.8% in emerging markets.
Among product groups, I would highlight in particular the consistent good growth in PetCare,
and the acceleration in both Confectionery and Powdered & Liquid Beverages.
Slide – Operating Segments
Our pattern of growth, with all areas contributing positively, is the same whether you look at
our operating segments, at the Zones and globally managed businesses, which you can see
on this slide …
Slide – Product Categories
… or whether you look at our product groups, which you can see on this next slide. ALL have
contributed positively to our organic growth in the first 9 months.
Slide – Regional Performance
This next slide pulls together all our globally and regionally managed businesses into the 3
regions. Again, all three grew. In Europe we achieved RIG of 1.9% and organic growth of
0.9%. Somewhat unusually, but it’s a pattern we have seen already this year, our RIG in
Europe was higher than our organic growth, reflecting deflation in some categories,
particularly Coffee and Chocolate. In the Americas, we had RIG of 2% and organic growth of
5.1%, and in Asia, Oceania and Africa we had 5.8% RIG, with organic growth of 6.9%.
These last three slides demonstrate both that our growth is broad based, and that ours is a
strong performance, given the economic environment we have today. Let’s now look at our
performance in more detail, starting with Europe. As I did at the first half, I will discuss both
the Zone and globally managed businesses together by region.
Slide – Europe
There is nothing I can add to the debate about the challenges facing many economies in
Europe. What I can say, however, is that our Zone Europe management has refused to give
in to the macro-issues, instead, focusing on identifying opportunities to grow the business.
Successes have included addressing the needs of cash-strapped households, as you would
expect, but also, more counter-intuitive perhaps, innovation focused on premiumising our
categories.
They have also been very focused on increasing distribution of our products, ensuring their
products are present not just in supermarkets and convenience stores, but in all channels.
Channels like hard discounters and e-commerce on-line, newer and faster growing. This has
resulted in a good market share performance.
Let’s have a look at the categories.
PetCare has continued to deliver mid-single digit growth, with good performances in its key
markets in both Western and Eastern Europe. Brand highlights include Gourmet, One,
Proplan and Felix. PetCare is an example of where we have increased distribution,
particularly in Eastern Europe.
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Our Coffee activities have also continued to perform well, with both Nescafé Dolce Gusto
and Nescafé Gold gaining shares, while Nespresso has continued to accelerate.
The Pizza business has been picking up momentum throughout the year. Both Wagner and
Buitoni brands are accelerating.
Confectionery is also growing, with highlights including Russia, the UK, Germany and
France. KitKat is performing extremely well.
Turning to our globally managed businesses, Nutrition showed good growth in Russia. The
Western European business continues to be generally slow due to economic environment
and overall category slowdown. However, our innovations particularly in Infant formula are
showing good results.
Waters had a good late summer in Europe. The UK grew double digit, which is a highlight,
but there was growth in many markets, including France and Greece. Regional waters
performed well, and Perrier and S. Pellegrino maintained their strong momentum from earlier
in the year.
Nestlé Professional’s performance is being impacted by the poor dynamics in the out-ofhome market in Western Europe, though it continued to enjoy strong growth in Russia.
Slide – Americas
Moving now to the Americas.
Consumer confidence in North America has, if anything, slightly deteriorated since the half
year. Although that was a bit of good news coming out the US last night. Our growth for the 9
months has continued to be driven more by RIG than price.
PetCare continued to show solid growth, fuelled by innovations such as Beneful Healthy
Smile and Tidy Cats lightweight litter.
The Frozen food category remains subdued, particularly the continued weakness in the dietrelated segment, impacting our Lean Cuisine brand. We are seeing stronger performances in
Stouffer’s, as well as Pizzas, where I would highlight the success of our DiGorno Pizzeria
launch.
In Ice cream, we continue to see good performances in super-premium and snacks, but
weaker development in Premium. Haagen-Dazs Gelato launch earlier this year has achieved
good traction.
The Chocolate, Creamers and Coffee activities are all performing well.
In Latin America, growth this year has been more driven by price than RIG, reflecting
currency weakness in the region. Brazil accelerated driven by the large Dairy category, while
Mexico’s growth was a little weaker.
The picture was mixed in the other regions, though all contributed to the region’s growth.
Strong categories for the zone in the region were PetCare, Chocolate, Biscuits, Culinary and
Cocoa & malt beverages.

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The globally managed businesses continued to have a strong year in the Americas. Water
and Infant Nutrition made good progress in North America and continued to be highlights in
Latin America, growing double digit.
The North American Water market has been highly promotional, but we have chosen to be
more focused on profitable growth than driving market shares in this environment. Our
growth there was driven primarily by Nestlé Pure Life, Perrier and S. Pellegrino.
Infant Nutrition’s good performance in North America was driven by dynamic growth in its
formula business and continued momentum in meals and drinks.
Nestlé Professional also delivered growth in North America, despite the tough trading
environment.
We also saw good progress by Nestlé Health Science, and this is a continued good
performance by Boost in North America.
Slide – AOA
Next up is Asia, Oceania and Africa.
The trading environment continues to be affected by the broad-based economic slowdown,
as it has been for about a year, as well as increasing of civil unrest. That said, we have seen
our improving RIG momentum, already evident at the half year point, accelerating further in
recent months, such that the Zone achieved 5.1% RIG for the nine months, up from 4% at
the half year. It is true that we have benefitted from easier comparables, but growth was also
driven by our initiatives in the Zone, as well as by us resolving some of the issues that we
discussed earlier in the year, issues including the loss of our Syrian factory and stock levels
with distributors.
Most markets contributed to the improved growth. China slowed down. The slowdown there
impacted most categories in the Zone. Having said that, our Chinese business continued to
outperform the market, delivering high single digit growth for the 9 months.
Markets and regions that have been performing well earlier in the year, such as Japan,
Malaysia, Indonesia, Africa and South Asia, which includes India, Sri Lanka and Bangladesh,
continued to do so, accelerating in recent months.
We saw an improvement in the Philippines as well as in Indochina, but we still have work to
do in both markets to ensure sustainable growth.
The Middle East accelerated, but the region remains extremely unstable – no surprise.
Looking at the Zone’s categories, I would highlight the performances of Culinary, Dairy,
Chocolate and both Powdered and ready-to-drink beverages in the emerging markets, and
Chocolate and Coffee in the developed markets.
Turning to our globally managed businesses, the Water business continued to grow well.
Infant Nutrition further increased its strong momentum, with both formula and cereals
contributing. Markets to highlight include South Asia, China, the Middle East and Indonesia.

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Nestlé Professional is performing well generally in the region, though its big business in
China has slowed during the course of the year.
Slide – Summary
That completes my review of the 9 months sales performance. I’d like to summarise:





The environment continues to be tough. But you know what instead of focusing on
underlying trends, we continue to focus on creating our own opportunities to grow
Our performance is broad-based – with all regions and categories contributing
We have growth momentum in the business – particularly in RIG, and
We maintain our full year guidance unchanged, of organic growth around 5%,
together with an improvement in margins and earnings per share in constant
currencies, as well as in our capital efficiencies.

Thank you very much. I will now hand back it to Paul.
Paul Bulcke, Nestlé SA, Chief Executive Officer
Slide – Title
Thank you, Wan Ling. Yes, indeed, I call it sound performance because of broad base, but
also it shows that the gain in momentum that we have seen already in the second quarter,
behind growth, real internal growth, that is driving our position in the markets.
Then to reflect on the ‘And Company’ that we have been expressing to you too, it is that we
combine; we're not going for one or the other. We have it broad based through the
categories. Also the different price points that we have been offering to the consumers; that
is very relevant when the consumer is subdued. And also, through all the categories.
I also said in the press release that actually in difficult times, and these are not easy times, I
don't think there are ever easy times. But we are particularly challenged in these last years,
that the difficult environments, difficult times, are ideal times, are good times, to really
challenge ourselves, too, and see if we really can enforce even more our fundamentals that
are driving our success, that is driving our businesses.
These drivers that are going for growth, like innovation, innovation; like distribution; like how
we connect to consumers. Or those that drive our performance, like, are we structured? Like,
are we using our structure to the right extent? Are we driving efficiency? Are we leveraging
our size into scale and into competitive advantage?
These are the things that actually, when you are challenged, are to be asked also. And yes,
indeed, we are permanently challenging ourselves on these, and that has been the driving
force and the driving condition, how we have been able to deliver profitable growth during all
these years.
Slide – Delivering over time – Nestlé Model
You see here the growth, the blue bars, the growth that we had in the last ten years. Giving
us an average of 6.1%, and doing that again in the mentality of the And, with an increase in
margin, as you see in the red line that's on top of that.
So we have been able to drive what we then came to call the Nestlé model, which is the logic
of the top line/bottom line increases over the years. The Nestlé model is to do that
consistently over a longer time, and do that on a line that we said that we walk, which is a
span that is between 5% to 6%.

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And you see we have overdone that, in average to 6.1%. Sometimes we were a way above
that; sometimes we were slightly under that. But that's the whole line that we want. The
Nestlé model is a model that is stretched over time. It doesn't have the nervousness of
quarters, and that is how we engineer everything we do around it.
So this is driven by innovation, innovation. This is driven by putting the money and resources
behind the right ideas. This is driven by building our capabilities in the world. This is driven by
putting the right people in the right places in the past, and it's going to be also in the future.
Slide – Our Roadmap – Driving performance
This is also driven by the fact that every time we challenge ourselves, and we ask ourselves
if we do the right things, with the right inspiration. Driving performance over time is, first of all
linked with the right inspiration; the right strategic direction. Then also creating the alignment
of the whole organization behind that right direction. That is what we've come to call our
roadmap.
The roadmap, you see it here, we have shared with you on many occasions, the roadmap is
all centred around the Nutrition, Health and Wellness. Nestlé is all about Nutrition, and with
that we define clearly what we want to be as a Company. That is giving the purpose of
340,000 people all over the world that wake up in the morning and drive that agenda.
What does it mean, Nutrition, Health and Wellness? It means that we want to, through food
and beverages, allow people to make healthier and tastier choices. Every day; every moment
of his life. And then by doing so, build quality of life for himself and his family. That is what we
want to drive. That is the purpose of this Company. That is what is in the centre of the
roadmap.
The roadmap is also defining very clearly, what do we want to leverage? What is our strength
that we want to scale up and with which we want to go and drive performance?
And you see the competitive advantages; it is our portfolio, our a mix of brands and products.
It is linked with our research and development that is driving the permanent innovation and
arguments into that portfolio. It is linked with our worldwide presence, and how we drive our
value creation in every part of the world. And it is linked, definitely, with people, because it's
people driving everything else.
We have also defined in the roadmap where we want to grow, defining where we're going to
look for growth, and we have shared that with you, too. And I think the biggest argument of
growth in this Company is what is in the core of our DNA, which is Nutrition, Health and
Wellness.
We have shared that also in other occasions; the value-creation potential, just by driving that
agenda, just by driving the arguments in our portfolio that is allowing these tastier and
healthier choices, and are doing so, creating a better quality for our society. That's the
biggest agenda we have.
Growth to be found in the emerging markets, it has been played and argumented on many
occasions. Out-of-home, 50% of what people spend on Food and Beverages is out-of-home;
we want to play there, and we have built, and are building still, our platforms and our base for
the future there. Premiumization, we have mentioned that too. So much value, so much
rational and emotional arguments to be built in that premiumization.
So we have defined what we want to be; what we want to leverage; where we want to grow.
And then we say the third part is, how are we going to do that efficiently and effectively? And
that is consumer-centric innovation, really going forward the consumer values, and engineer
and create products and portfolios around that. We have efficient operations to do that
efficiently and effectively. Then we bring that product where the consumer is looking for it. It
is to be everywhere where the consumer wants to touch your products, distribution, and then
it is also consumer engagement.

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If you have done all that, innovated rightly, done it efficiently, distributed well, you're proud,
and you connect with the consumer to say that you're ready for him. And you engage in a
dialog which is now through digital media; social media even more easier.
That is all based on our values that we have as a Company; our principles that is driving this
dimension, which is most precious to us, trust.
Trust is a base of how we interrelate with society. Trust is what we most cherish as the most
important dimension of our relationship. We do that through Creating Shared Value. We feel
really that our Company can only be successful if we interrelate well with society and our
stakeholders, Creating Shared Value.
Yes that is the Roadmap that has guided us, that has aligned the organization to deliver over
time, even in these turbulent times that we live today. And yes indeed, these turbulent times,
we call it a VUCA world, volatile, uncertain, complex and vigorous world. We call it a new
reality.
Slide – New Reality – Many challenges
I'm sure we have selective memory, the new reality was always new for everybody, also in
the past. Fact is, the new trends in all that is that events have intensified over the last years,
and have given the impression of many challenges. New reality is like felt by many
challenges. The crisis is indeed deeper and longer. We just came out of one in the United
States, so it was good news this morning; still a lot of work to be done, but at least that was
the decision on the eleventh hour.
Unemployment is going up, and it's quite sticky, and we see that in many parts of the world.
The emerging markets, that have given us so much tailwind, are slowing down a little bit. I
see it rather as a good sign, to get back to levels that are sustainable, the sustainable
growth, and an environment that allows us to continue on a slope is more important than
acceleration and I think that is happening.
Slide – New Reality – Many opportunities
So we've many challenges. But yet indeed, in the world today, many opportunities too, and
that's how you drive a company like Nestlé. It's to be aware of the challenges, but see the
many opportunities and I have been sharing them with you, not at least the emerging
consumer: 80% of the world population. It's working for a better tomorrow.
The emerging markets are emerging. That I would say is the biggest single driving force,
because there are so many collateral trends coming with that that allows so much for this
Company to offer and to grow with.
We do have the global awareness of healthier lifestyles that play so much into our hand as a
Company, because that's what we want to do; that's part of our DNA. There's new
technologies and science that are converging into new platforms that allow this Company
also to play and to drive innovation even faster.
There's a continuous change, a continuous dynamism in the world and our roadmap is tested
against that and is valid; it is valid. And we always ask, is it in every part of that still driving us
in the right direction? And it is; it is more relevant than ever.
It is all done in a faster world and I think, to maintain competitive intensity, we have to drive
things faster; we have to increase this sense of urgency that is needed and that we have to
challenge.
Slide – Our priorities
Look at the times of today, the new reality, we have to have clearly six priorities, The first one
is making choices. It is really to define things. Say yes to certain things and no, we have to
make these choices, sometimes tough, but it is a better of faster, sharper decision making.
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And we are decentralized, this is a very important dimension to take as a priority in our
organization.
Then another one is seeing these opportunities I talked about, not only identifying them,
defining them clearly but then organizing the resources behind it to embrace these
opportunities and to really go after them. You have to organize around opportunities.
The third priority was to do that with a very acute sense of what the consumer values. What
is it that the consumer values really? Because sometimes we are too inside out and we
should be much more outside in, knowing what are the worries. What is it that drives his
decision making? What really worries and is valued by that consumer?
That means also the same time, that what he doesn't value we should take out. We should
not put resources behind things that are not having any value for the consumer and there's
so much upside there too.
This has all to do that we are in a value-creation business, not in a price business. And you
have heard that we are very conscious about that too.
Fourth dimension is trust. I mentioned before is Creating Shared Value. How we interrelate
with society at large as a Company is a very hot topic. That is very relevant and even more
so today than yesterday. We have engaged and are engaging with multiple stakeholders.
Everybody has a voice and, what is more, they are heard. Social media is bringing a whole
new dimension to that trust building capability that we are engaged in, and brings me then to
the fifth priority, embracing digital.
A company like ours has to engage fast and deep into digital, having two phases. First of all,
this whole social media and then also on the other side the e-commerce. That's why we have
set up our digital acceleration team here in this floor in our building, where we have young
people, normally it's linked with young people this whole digital world, from all our markets
bringing their knowledge, sharing it with others and creating a corporate knowledge that is
much deeper. Then going back to the markets and driving that. So that's why we have now
digital acceleration teams in many markets already. We are connected through that world in
a much more intensive way.
You see also how we link up with big players in digital like Twitter, or Facebook, or Google
for that matter. You may have seen lately how we also with Google have deepened the
relationship as they have called their new android KitKat which is really giving you a great
break.
Then the sixth one is all about people, and I cannot stress enough how serious we are about
looking for the right people. The right people to drive our business, with the right attitudes,
the right culture, the right values, because as we are decentralized we have to rely on the
right people, definitely.
And there again, we pride ourselves of loyalty, but also on diversity in a world that is
globalizing and opening up diversity; it's very important. How we have flexibility and people
going from one place to another driving that agenda, but also driving what we value so much,
which is our principles and values through the world. Only speaking about diversity, in this
building alone, we have almost 100 nationalities, bringing an understanding and making us
understand the world in a much deeper way.
Well, we have these priorities. Then we have also the last one, very important, expanding the
boundaries of nutrition. Nestlé is all about Nutrition and we do that through this Nutrition,
tastier and healthier food and beverage choices that we create permanently, driving the
agenda through the whole portfolio there, but yet also we are aware of potential future
platforms that we are going to give to this Company.
Big opportunities in the future; it is science driven; it is driven by the fact that we have a much
deeper understanding of how nutrients interact with the human body and with health to a
large extent in society. That and compared and phased to the healthcare cost in our society,
that linked with how the developing world is really developing. And building also these
dimensions in the society is a fascinating opportunity.
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Now, these are the priorities we have and priorities induce a plan of action and, I would say,
a shortlist for action. And I want to share with you three dimensions that are on my shortlist
as a consequence of having put these priorities.
Slide – Focus on…..
I share them with you here. They're linked with strengthening our portfolio and making
choices, grasping opportunities and evaluate consumer values. They bring three dimensions
to us; three dimensions that are the shortlist for action.
You have it here, it refreshes our focus on certain areas. Where present, we just have to
sharpen our focus on them and really give us no escape for them. And it's strengthening our
portfolio, going to get very shortly into it, allocating resources too, because at the end of the
day it is resource efficiency matters, and then also mastering our complexity.
Slide – Focus on…Strengthening portfolio
Let me say a few words on the first one, portfolios, and how we want to strengthen them,
because I have mentioned before that we were able, and we will be able, to deliver the
Nestlé model, because we drive a very strong portfolio. Portfolio of products, portfolio of
brands, a mixture of value creators that is accretive to driving our profitable growth.
Slide – R&D and Innovation
We have done that in the past and you do it through different actions. You do it through
innovation, renovation, like we did in the past. You see here only a snapshot of a few that we
have done in the last years. It actually started 150 years ago with a very innovative product.
That continued with a new chocolate, with the milk chocolate, as with the Nescafé that just
before the second world war came into the world, with the Nespresso model that we had
later on, with Dolce Gusto later on.
With so many innovations and you have heard over and over again that our Purina and the
strength of Purina has been innovation. You see actually classical products like KitKat, where
we are exploring flavours, where the consumer is open to that. So it is a permanent drive of
innovation, renovation that is, in my eyes, the strongest force behind our dynamics and
behind our strength of portfolio.
Also then, through the normal products, because there's bigger even innovation that it is so
nice to mention, there is so much small capular innovation behind our brands that is driven
by our 60/40+. You know this mind-set that we have in our organization where we drive
through all our products and portfolios these pleasure arguments of taste. We should have
preference on taste, and yet also, through the plus, the nutritional arguments and that is quite
extensive. There are thousands of tests and projects that are driving this 60/40+ mind-set.
One-third of our portfolio can be said to be permanently going through that test and we churn
our product portfolio, each of them, over every five, six years we churn them permanently
towards that better agenda.
Slide – M&A
That's one way of driving a portfolio and one very important one. The other one is, yes
indeed, acquisition, partnerships and also divestitures. Acquisitions, and you see here quite a
few, they should reinforce our strategic directions and they should be accretive to the Nestlé
model, drive business. As I always said, this has to be accretive to both sides, and we have
Purina, Gerber these last years.
Yinlu and Hsu Fu Chi in China, where we have built our capabilities and presence in a
market that is important. Wyeth Nutrition. We need to build even stronger our core of our
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business, so Prometheus and Pamlab, the latest linked with this new opportunity of Nestlé
Health Science are all nice examples of that.
On the other side are divestitures, and when something doesn't really fit strategically or
doesn't really add to the Nestlé model and is a drag, we have to take decisions there and
divest. Why should we drag on underperformers and that is what we have done in the past. I
think there is opportunity there also for us in the future.
And we have built in a portfolio management tool or -- we actually had it always, but what we
have done is now through the enablers like GLOBE, because it gives total global
transparency, we have standardized the criteria to manage this whole portfolio management
tool.
Slide – Strengthening portfolio
We have created, in other words, global transparency and we defined a portfolio through
building blocks. And the building blocks are categories in markets. We have this dual
dimension of each category and market, and each category in a market we call it a cell; we
are analysing 1,800 cells worldwide, so this is quite an undertaking. But still, through that
transparency, you can agglomerate and you can pull certain cells together, you can open
them up so we have different ways of going around this.
And this is what we have been doing the last years, is building that transparency even
further. We have created a global standard language to talk about, we have built it into our
business plans, be it on markets be it on categories, to make that really more an active part.
So products, brands, categories, markets combining there and giving transparency.
Criteria are; how does that cell fit into our strategic direction? It should be accretive to
creating our agenda. It should be a profitable growth enabler; why should we stay with
categories that have no prospect of adding to that profitable growth. And it should also a test
against the resource intensity, one very explicit one is return on invested capital but it's more
than that; how much resource we put behind that marketing spend; how much talent and
human resources we want to put, R&D resources, etc.
And at the end of the day you have three possibilities. If it's really accretive you invest and
invest even more to drive it faster, stronger, deeper. Or you say there's a problem but I
believe we can fix it, then you fix it and you have to have deadlines there and milestones
instead of just dragging on.
Or you cannot or you don't see the end of the tunnel of underperformers, well then you have
to just divest. And that is relatively sharp language but that's what we should do. That is also
linked with making choices, really knowing what the consumer values were; you see, again
there is logic in there too.
And the fact is, if we have to divest then it's not a matter of if, it's a matter of when and how.
And do that in a timeline elegantly, do it as we have to do, and these are the, I wouldn't say
the marching orders, but that's the mind-set which we have now in our company going about
that.
And I would say a little bit less tolerant. We were a company that really believed in our
products but sometimes belief might blind you. If there is no real possibility of certain cells to
be accretive - divest. But that means also invest heavily behind the right things too; it's more
that part.
Slide – Focus on…Allocating resources
The second part of focus that came out of these priorities is allocating resources and I as I
mentioned resources are multiple. It is talent; it is people; it is our management time; it is
R&D time; it is marketing spend; and it is also capital. So let me speak more specifically
about capital, the financial resource that we put behind our products.

12

Slide – Investing for growth - Capabilities
In the last years we have been telling you this is the right time to invest, the world is growing;
many parts of the world are starting to grow. We have to invest. It's the right time to invest in
people; it's the right time to invest in capabilities; it's the right time to invest in capacities. And
we have been building capabilities, specifically in our capacity of innovation through our R&D
network.
We have opened up in Beijing in 2008 an R&D centre that goes about Nutrition, Safety and
Life science. In Abidjan working in growing materials, cocoa and local raw materials and
ingredients. India, also in the same way, working on local raw materials and our Popularly
Positioned Products. We have been closer to home in operating our system technology
centre because so much value is created now through systems. And we have a scale there
again to be leveraged; we have also built out our PTC product technology centre in
Konolfingen.
So we have invested quite heavily in capabilities. We have constructed from scratch a Nestlé
Institute of Health Science where we're going to build the building stones -- create the
building stones for our Nestlé Health Science initiative. We have invested in capabilities.
Slide – Investing for growth - Capacities
Also we invested in capacities and we were proud to communicate new facilities in Nigeria,
Turkey, India, Brazil, Dubai, Congo, in China, quite sizeable factories. Also in Europe closer
to home, UK we have water factory, in Germany and also a new factory for Dolce Gusto in
Spain. So in many areas, also in the UK and the United States.
In short, over time, we have been able to build and strengthen our global presence, and here
you see how we have been building these capabilities and capacities. We have been
investing really in the capability to innovate and the capacity to grow.
Slide – A strong global presence
You see here the darker points are the new factories and the new R&D capabilities in the
world.
You see how we are really mapped into the presence of the world. We have operations in
almost 200 countries, 470 factories in almost 100 countries, 34 R&D platforms. Definitely, we
have been building and keeping our competitive advantage of, I would say, scale and
presence in the world.
Slide – Capital Expenditure - Return
That comes at a price. You have to invest and that is what we did. In the last three, four, five
years we felt it was the right time to accelerate our investment in the world and to build these
capabilities because we saw and felt that potential and that opportunity. That brings capital
investment and that went above the 5% line; we were normally between 4% and 5%.
What I feel is it's the right time now to use it, to leverage it, to sweat the assets and to
leverage what we have now. That's why we have imposed ourselves the discipline of
bringing it back to the normal levels between 4% and 5%. And that, in an organization like
ours, has a meaning. That's a capping, but that's something we did, and it's going to induce
also a better resource usage through SKU management and thinking it over and turning the
time twice before investing. It's going to create a very healthy discipline of sweating our
assets and bringing into the equation much more prominently the dimension of return on
invested capital.

13

Slide – Focus on…Mastering complexity
Then the last thing I have on the shortlist is mastering complexity. And that's always a killer
because complexity, we are living in a complex world and we are a complex company; we
are a complex company by decision, by strategic decision.
Many years ago, Nestlé opted to be in different categories because we felt if you want to be
a Nutrition, Health and Wellness company you have to offer products that can be part of
peoples' lives in a meaningful way.
At the same time, if you really want to drive innovation through more science and R&D you
need scale. You cannot build a system like we have if you have one category, and you're
very focused on that with all the merits of focus, yet we have to see how we combine the
growth of the portfolio of products, with that advantage of size and scale, and yet also
maintain focus and sharpness.
Slide – Mastering complexity
That is how we are going to go from managing complexity to mastering complexity. That is
something that we have been doing these many years and that is what has built our
structure. That at first site, you see it here on this chart, may impress by the complexity.
You see here different categories you have there, Powdered and liquid beverages, Water,
Milk products, going over PetCare. Then you have Nestlé waters, Nutrition, Professional,
different categories, yet we have organized first in a matrix way.
We have geographies that goes over the certain parts of the products and then we have also
global managed businesses, so we have indeed a matrix organization. And that is because
we have always privileged the generating demand; what drives demand should dictate
structure.
We are not ‘one-size-fits-all’; we do have different business models and we do have also one
fundamental argument, that is, we are a true believer of decentralization. Food is local; bring
the decision making as close as possible to where the consumer is. These dimensions are
driving the organization like we have it here.
Now we have been building enablers to be able to manage and to master that complexity
through Globe that gave the transparency, through the NBS that created the scaling up of the
backline and starting to split clear up the backline and the frontline, the Nestlé Business
Services, NBSs.
We have been implementing the NCE, Nestlé Continuous Excellence, where we drive value
creation and efficiency, driving waste out of the system, specifically more in operations, but
driving it further out also to the broader dimension of our Company.
Slide – Mastering complexity. From size…to scale…to competitive advantage
That's the reality. It has a certain complexity, it was and it is a strategic direct decision
because it gives us the right arguments. It gives us the right presence. It gives us the
possibility of enabling tools, enabling platforms, that really translate size into scale and scale
into competitive advantage.
Yet, at the same time, we have to ask the right questions. And permanently say, is this
working fine? Is this working well? Is this effective and efficient? And in a human organization
like ours, you can always ask these questions and answer them with, yes, we can do better.
And these are the questions we are asking.
We are really asking the tough questions like, are we keeping things simple? Are we actually
keeping simple things simple? Are we bringing unnecessary complexity? Do we take the
right decisions in the right places? Do we have ownership of decisions in the right places?
Do we have dual reporting systems? Do we have too much travel? Do we have or are we
14

using new technologies to the extent that we could drive out bureaucracy or paperwork or,
etc.?
I can only tell you that whatever, there's upside. And that is something that we felt, as an
Executive Board, we should go after and see also how we organize to really bring in the
same mind-set of NCE. This is not a new project. This is just an initiative that allows us and
will allow us, to leverage what we have going on in this Company, which is linked with its
continuous excellence, asking the right questions.
You see it here, definitely this size to scale to competitive advantage, we have gone a long
way. I still believe there's an upside and that is what we will do. It's not managing complexity,
but mastering it and making that an intrinsic part of our competitive strength.
Slide – Enhancing our competitiveness to drive performance
So, ladies and gentlemen, a shortlist for action. Coming out of the six priorities which are
embedded in our roadmap, that is what I want to share with you. And it is linked with asking
the right questions. And it is linked with the roadmap that gives us a strategic direction. It is
linked with six priorities that brings us that shortlist of three things where I feel, personally, we
should give the highest attention to.
It translates, in other words, in consequences that are linked with portfolio decisions. It is
linked with our resource allocation. And it is linked with accepting our complexity and being
invited to really build efficiency into it even more.
So as I said in the beginning, these are challenging times and this is the right time to ask the
right questions and to build this Company even stronger. We have been delivering what we
call the Nestlé model, which is a model that projects continuing growth around the line of 4%
or 5% to 6% with margin increases.
Why? Because it is intrinsically linked with our value creation agenda that is linked to
Nutrition, creates more value for the consumer, more margin. And we want to do that in a
permanent way, consistently, over time. And for that, we have to build our competiveness
through the questions and through the priorities and through the focus areas I shared with
you. With that I am through with my presentation.
Q&A Session
Questions on:

Organic growth for 2014
Emerging markets

John Revill, Wall Street Journal;
Today you've reiterated your guidance for 2013 organic growth; you think it's going to be
around 5% this year. I was wondering, Q3 seems to have improved a little bit and a lot of
people think that Q4 may improve as well, I wondered what's your view for 2014 on organic
growth. That's the first question.
And the second one is, emerging markets seem to have improved a little bit, so do you think
you've turned the corner there? Or any concerns over there particularly to do with currencies,
because they seem to have taken a big bite out of your emerging markets?
Paul Bulcke, Nestlé S.A., Chief Executive Officer;
First of all, 2013 like we said, we're going to be around 5% and yes, indeed, I believe that the
acceleration that we have should continue into the fourth quarter too.
Now, you asked for 2014. You see, the Nestlé model, this line that we want to walk of 5% to
6%, for all what I said just before, what we want to do, the questions we want to ask, the
15

answers we want to give, is to assure that, over time, we continue walking the Nestlé model,
which is a top and bottom line at the same time; quality growth, profitable growth over time.
So again, do I commit already to that? Well, it looks logical. If this is a model that we want to
walk a line year after year, that is the intention we have, clearly.
John Revill, Wall Street Journal;
So it's 4%, 5%, 6% next year (inaudible - microphone inaccessible)
We've got to work for it. I think it should be doable. We see some colours coming back in
many areas of the world, in spite of some slowing down. But there's the levels that are totally
allowing us to project that growth.
On the emerging markets, you say it's slowing down and turning the corner, it didn't feel they
had to turn the corner, per se. What you see is a little bit slowing down of growth in certain
emerging markets.
Now, I'm the first to say if you have huge countries growing double digit during many years,
it’s been shown, over and over again, that you get an overheated engine. And you have to
stabilize a little bit to have the capacity or the possibility to have sustainable growth.
And when big economies are growing 7%, 8%, well, I want to be part of that. That's a good
pace. And if that is projected in a way that it's more continuous, instead of having a 15% and
then a 2% and then a 12% again, then I'd rather go for a 7%, 8% permanently, consistently.
That allows society to absorb that growth in a more continuous and sustainable way. So I
actually see that rather positively than negative.
What we also have to see is the developed world, really, taking the right decisions there and
starting to grow again. And I mentioned before that the crisis is much deeper and longer than
we would have expected, although with a little bit of thinking a problem that it was in the
making for many years normally takes a few years to get out of it too.
So what we see is different reactions to that. Some governments are more daring to do the
right steps. The others are not there yet, but I hope rationality is going to prevail.
Questions on:

Rumours of Ferrero Acquisition
Divestiture Time Frame

Holger Alich, Handelsblatt;
I'm sorry to bother with rumours, but if I remember correctly you said on the investor call that
there would be no big acquisitions in the near term. So is my thinking correct that the report
from La Repubblica this morning that Nestlé is looking at Ferrero is then wrong? So no
interest for that.
Secondly, in terms of disinvestment, what is the timeframe? When can we expect to have
some concrete decisions and communications on that? Until the end of the year, or next year
with the full-year numbers? Just to have some clarity on the timeframe on that. Thank you.
Well, we said no big acquisitions, we spoke about bolt-ons, and so that stands. And I'm not
going to comment on speculations that may be in the press this morning. I have no
comments on that.
But there are acquisitions, and I'm speaking of this linked with what's in the press now, other
acquisitions, indeed, bolt-ons. We did quite a sizeable one with Wyeth, so good one. It gives
16

us a lot of work and a lot of joy. But it has to be strategically fitting. Again, it should fit into the
whole logic of portfolio management, and there we see more bolt-on opportunities than big
ones.
So on the timeframe of divestitures, I'm not going to answer it concretely, but when we say
we're going to go about that, we are serious. But that doesn't mean that we want to give the
timeline the priority. It should be the right thing to do. It should be done in the right way, and
that's how we're going to go about that.
But there's firmness behind this focus, so there's things going to be happening in a
reasonable timeframe. So just give time to time, as I always say, without losing time.
Questions on:

Boost in North America
Details on Growth in China

Thomas Russo, Gardner Russo & Gardner;
Wan Ling, I was impressed to hear your reference to Boost in North America. I just wondered
if you could spend a second describing the size and the opportunity of that particular product.
Then secondly, Wan Ling, your observation that China was up high single digits, can you
highlight where that growth came from most forcefully?
Yes. Boost maybe, we have here Luis Cantarell. Luis, if you could answer that question as
you are responsible for that and enjoying it.
Luis Cantarell, Nestlé S.A., President & CEO Nestlé Health Science, Nestlé Nutrition;
Yes, Thomas, Boost is enjoying good growth, not only this year but also in the last year. We
have been completely renovating our offer. We have one of the best-tasting products yet
delivering the good nutritional values. And this is a brand that is in the hundreds of millions
and we will expect this brand to continue growing as we speak in the future. And we have
already plans to continue pushing this brand in US.
Wan Ling Martello, Nestlé S.A., Chief Financial Officer
Hi, Tom. I take it you are not in the States or you must be up pretty early. China like I said,
did slowdown, but we are really still happy with the rate of growth. And in virtually almost all
categories, we are outperforming the market. So that's the good news.
Questions on:

Impact of recent Cocoa Price increase

Ueli Hoch, AWP;
We've seen quite a rise in cocoa prices in the last couple of weeks; could this have an impact
on the margins in the next months/quarters in some product categories?
Well, that's like a rhetorical question. It is clear that the prices have gone up quite sharply
again, but that's a little bit the reality we are living in permanently. Other raw materials are
going up, others are going down. So cocoa prices, you know it's a very important raw
material for us, so we really watch that market very closely. We try to be smart there and do
the right things.

17

And for me, the most important thing is that we shouldn't price to the consumer with the
same nervousness that raw material prices are sometimes going; sharp increases and then
decreasing again.
We try to read through these nervous trends what the underlying trend is and try to manage
our business with these projected lines of cost which are less, much less nervous, because
you cannot just price consumers the same nervousness and increase prices, decrease
prices, etc.
That is actually what is defining also if you added that all up -- that's the pricing that you see
reflected globally in our Company. Back in 2007/2008 when we had this huge spike of all the
raw materials, I got the question also, how is Nestlé reacting to that. I answered, we are not
going to price on the peak of what we feel is not sustainable. That's going to come and
rationalize back into that trend that we have seen.
It's going to be higher though, and that's what actually happened. The raw material prices are
higher because the fundamentals are that 80% of the world population is starting to eat
differently and more into these raw materials.
So the same thing with cocoa prices. We have to read through these nervousness’s of trends
create some stability in our prices, although when it confirms, over time, to be higher, our
prices are going to be higher too.
But then again, it's not only prices. We have to ask, can we drive more efficiency into it, etc.,
to compensate, because you cannot do one-to-one pricing to consumers. Less so today
when the consumer is really price sensitive.

Questions on:

Details on North America performance
Chinese Infant Nutrition

Warren Ackerman, Société Générale;
A couple of questions. The first one is, could we dig into North America in a bit more detail?
It's your biggest market representing one-quarter of your sales. There has been a lot of
concerns, given competitor comments.
I'd just be interested to know what you think the category growth is in the US in the first nine
months of the year, or if you've got a Q3 number. And then what your growth is in the US
compared to the category growth. It's hard for us to see that because of Latin America being
included in the numbers.
I'm just interested; where are you winning share? Where are you losing share in the US? And
are you seeing any evidence of destocking in the US market? That's the first question.
And then the second one is just on Chinese Infant nutrition. I was wondering whether you
can give us an update as to the trends that we're seeing in China, especially in light of some
of your competitor recalls. What is your growth in Chinese Infant nutrition?
I know Wyeth is not yet in the organic numbers, but if you could give us an idea of the growth
rate, year to date or in Q3, maybe your market share position as you see it. It seems to me
that you may have taken leadership position now in China, maybe. Is that right? Thank you
very much.
Well, let me organize here. North America, and I'm going to give it to Chris, but in North
America, definitely, we have the Americas. North America is more volume-driven growth than
price driven growth. And there again, we have different categories, different dynamics.
Maybe, Chris, you can give some light on that question?
18

Chris Johnson, Nestlé S.A., Zone Americas;
Sure. That's very true. We do have in North America very different categories, different
dynamics. And it's one of the strengths we have. It's true; it's our biggest market in the Nestlé
world. But because of that breadth of products and brands, even in the difficult economic
times that we talked about earlier, we don't have the tailwinds when it comes to the economy
and to consumer sentiment, we can still do well.
So to talk maybe a little bit about the major categories that we have, the largest category, as
you know, is PetCare, and PetCare continues to have very strong leadership in the US,
again, driven by strong innovation. Some of them Wan Ling had already mentioned earlier.
The next biggest category is Frozen food for us. If you dig in a little bit deeper into Frozen
food, you'll see that it's a bit of a mixed picture. When you look at the regular, or we call them
the prepared foods, the frozen prepared foods like our Stouffer's brand, there we're gaining
some good share. We're seeing some good, positive momentum in the Stouffer's business. If
we look at our Pizza business, last year, as you know, the category in our business was
suffering last year. This year, the category has flattened off and we're, in the case of
DiGiorno, gaining share and overall basically holding.
Hot Pockets as a segment, the handheld snacks, actually increasing as far as this segment
goes. That segment is increasing in volume and we're also growing with Hot Pockets.
The challenge is with Lean Cuisine, in the individual nutritional frozen segment, and here it's
a function of a few different things. There's a perception in frozen which seems to be hurting
this segment, which we're addressing and addressing as fact on behalf of an industry, talking
about the virtues of frozen food as a real ideal way to keep freshness in.
Issues with pricing; we're trying to get the price/value relationship correctly, so we've taken
some actions in that range. And also innovation; in the past, this segment has not had the
rates of innovation that we've seen in years prior and we're coming back with that now with
items like Salad Additions and Honestly Good, which have recently been launched.
But then if you dig down even deeper into other segments, for example, mentioned earlier,
Coffee, we're showing growth; coffee enhancers, also good growth, gaining share in powders
in this area; and Confectionery, also showing some strong growth.
So it's a mix, but overall, because of our breadth, because of the strength of our brands,
positive about the future for North America.
Thank you, Chris. Then the second question of China, Infant Nutrition, just let me respond to
that. Infant nutrition and the whole industry, Milk industry, Infant nutrition specifically is a
category that has shown very strong dynamic growth like many other categories but
specifically, Infant nutrition is a very sensitive one.
There were some issues. I must say we were not involved in these issues, but still, this
environment has some nervousness and that's clear. So it is all about trust and we have two
big dimensions there in the sense of Wyeth with their arguments with their trust relationship,
etc., Nestlé, and we have to play that in harmony together.
We speak about kids: children and babies, and there is a framing that is really much more
explicit there and we welcome that because this is a serious industry that has to be taken
serious in every part of that industry. And so we see the self-imposed framing that we have
really valued there.
Are we growing? Yes, we are growing. Is it something that helps us in the growth of China?
Definitely. It is something that drives us in Infant nutrition worldwide. Yes, there's something
that is accretive to that too.

19

I would not say leadership. This is a market that's still in the making. We have two
expressions there, Wyeth and Nestlé and we are doing, I hope, all the right things there to
keep that growth going in a very meaningful, responsible way.
Warren Ackerman, Société Générale;
Okay. Chris, can I just come back on something? Can you just confirm in the US that you're
not expecting any destocking pressures in the next coming quarters, as has been widely
reported from the biggest retailer in the US?
Destocking, I think some of that has happened already, so I hope that the biggest wave is
over and that gives us also a bit of a refreshed positive feeling.

Questions on:

Nespresso patent infringements

Katsuhiko Hara, Nikkei News;
I have a question about Nespresso. You had been losing some court cases over the patent
of capsules; do you think you will go on and fight even more in the court, or would you
consider a change of strategy, maybe just change of distribution: have it sold in the
supermarkets in the future?
Well, first of all there's no change of strategy. The strategy was not only court cases. It was,
and we always said, to win in the quality of the cup of coffee; in Nespresso, to have the best
Nespresso experience with Nespresso.
It is clear that as we are an ‘And Company’, we fight on different fronts and if we feel that our
intellectual property, where we have invested so heavily, is being betrayed or used, then we
defend.
That's fair play. That's how the industry is settled and set up, and sometimes we win,
sometimes we lose. We may agree or not, but we have total respect for the decision made
there. We see if we can take that a step further or not.
But the whole focus, all the energy at the end of the day goes to driving the business model
of Nespresso, driving the value and the fundamentals of that brand. That is linked with a
more holistic experience that starts with the highest quality in the cup, with some excitement
of innovation, new flavours, new blends and also linked with design, linked with an
experience, linked with being linked up with that society through the Club.
So that is where actually the value lies; that's where we focus. And it is not to be found in the
retail. Why? Because the whole concept of Nespresso is geared and engineered around
direct relationships.
So we stay put to these principles and think it's the right thing to do. It is showing in our
growth and the strength of the brand that it is the right thing to do.
Questions on:

Coffee performance in key emerging markets
Nescafé Dolce Gusto rollout plans
AOA supply chain

Eileen Khoo, Morgan Stanley;
So two questions. The first one is actually on Coffee. Earlier this year, you mentioned that
20

you had lost share in some of your key emerging markets, for example, in mixes. Is this
recovering now? Can you just update us there?
And then on Nescafé Dolce Gusto specifically, can you update us on where you are with
your global rollout plans? How many countries is it in now? How big is the business now for
you? And when you say double-digit growth, are we still talking 40% plus?
And then the second question is actually on AOA. Can you please update us on whether you
still have any supply chain disruptions here that are still on-going that might actually improve
your performance in the coming quarters, or are things pretty much normalized now?
Thanks.
Well, we mentioned in Coffee in certain markets we lost some market share and I would say
it was driven by 3 in 1. You may know this is a very strong category with lots of growth. Many
players coming in there, so that is something we are working on.
Specifically, we have gained and have good strong market positions there, but as we were,
in many markets, the innovator, the initiator, it is clear that when new players come in, they
want to be part of the enjoyment. So an answer has to be given again there, through
marketing support, through innovation, through quality and we are playing on all these fields.
In Dolce Gusto, I would say the rollout is, indeed, going very strongly. It was quite Europeancentric when we started it. I think we are now almost 50 countries with Dolce Gusto, 50
countries and rolling out, having some very, very nice growth figures in all these countries
where we started.
But what's nice about Dolce Gusto is still in Europe where we started, where it is now for six
years or seven years, in the market, we see very interesting growth figures too.
We see that this whole Coffee business, let's take Europe, where we have so many players
really playing very well and with very good arguments, how this whole market is dynamic and
that, in spite of many other initiatives of other players, that we can keep our agenda going
and keep on gaining market share because we are going into the markets with these
different offers.
We have Nespresso; we just mentioned it. We have Dolce Gusto in systems; that is retail
based and that has additional arguments that other players don't find so easily, through
different brands that we have.
Then we have the out-of-home and all the models that we are introducing, be it Milano or be
it Nescafé Alegria. So you have these different angles, then you have the Nescafé where
super premium is again doing very well, through Nescafé Gold in many markets like Russia.
So that's the nice thing about the Coffee market, that we have this complementarity of going
about the market that is showing so many signs of dynamism in an environment that is
actually not giving that for free, with a consumer confidence as well.
That same dynamics is translated in all markets in the world, step by step. Nespresso is
extending its geographic footprint, in its own way, city by city, country by country. Dolce
Gusto is rolled in through retail in these markets. We have the Nescafé arguments and
Nestlé Professional is rolling out all their new offerings too.
So it's a fascinating journey. And now, and I may give it shortly to Nandu, who is here also,
the supply chain interruptions. I think that's going to be part of AOA, Asia Oceania and Africa.
We call it actually sometimes, with a little twinkle in the eye, zone CNN. There is always
something in the news.
It's a pity, but it is our reality. It has been our reality for many years, and we have
interruptions. We have mentioned to you in Syria, how we held onto our factory, 300 people,
350 people working there, to the last minute, until it was really bombarded and looted
21

completely. So we are rewiring all these things; it's a permanent issue, a permanent
challenge.
But I think we have the right people to do that, and that's one of our strengths, how we can
rewire it, but maybe some more light on it. Very shortly, Nandu.
Nandu Nadkishore, Nestlé S.A., Head of Zone AOA;
Yes, look if your question is specifically on have we been able to replace the supply that we
have lost out of the Syria factory, the answer is yes, we have replaced the supply.
If your question is do disruptions continue? Across the Middle East, across the northern part
of West Africa, and other parts of the Zone, disruptions continue, and we have seen -- you
read the news and you see impact. In general, the situation is not getting any better, from a
stability or trade environment point of view.
But as Paul mentioned, we cope with that. That's what we are good at doing.
Actually, the Middle East is showing nice growth, with its rewired supply chain, and yes, it
would easier with total stability, but that's why sometimes we're quite unique in being there.
Questions on:

Share buyback
Divestiture of Jenny Craig and PowerBar

Unidentified participant
Will you buy back shares and will you divest Jenny Craig and PowerBar?
Well, buying back shares, no, that's not on the agenda. It's always a possibility, but it's not
part of the agenda now.
And on the other side, I will not answer that, because as I said, we're serious about things,
and we have to give time to time without losing time and you're going to be time informed.
Question on:

CapEx over the last two years and for 2014

Robin Tickle, Nestlé S.A., Head of Corporate Media Relations;
We have a question via email from Cote d'Ivoire asking about CapEx over the last two years,
and for 2014.
Well, that is linked with part of my presentation where I said our CapEx in the last two years,
globally speaking. And my intention of creating that necessary footprint, and capacity
capabilities, has been over 5%.
We had in the past, I don't know if you can speak about the cruising speed of capital
investments expressed in sales, percentage of sales, but we had a capital investment
between I would say 4%, 4.5%, give and take.
And it went up to about 5%, 5% to 5.5%, which was the right thing to do at that time. Now I
feel that it's the right time now, to use what we have invested then, and leverage it. We have
all the capabilities, we have the capacities now, and that is exactly what we want to do.

22

So we, for 2014, have said, we want to cap that, definitely under 5%, between 4% and 5%;
that's where we are. That's the instructions or the guiding that we have imposed on ourselves
too. So it is basically back to a certain cruising speed, so still a sizeable investment though.
Questions on:

Portfolio management
Price increase potential in Western Europe

Ivan Letessier, Le Figaro ;
I have two questions. First one about your portfolio management; you said that you had
identified 1,800 cells, is that too many?
And you also said that you had a shortlist; can you tell us a bit more, explain us what are
your priorities in terms of divestment? Will it be a few non-profitable cells, or mainly small
cells that doesn't fit any more with the portfolio?
And my second question was about price, especially in Western Europe. Given the
competition between retailers, how do you see room for price increase in the coming
months? Thank you.
Well, first of all, the whole portfolio management, indeed we have many cells. You say are
there too many? It's like we have many SKUs, are there too many? There's always some too
many. And that's why we have this tool, to give that transparency, because at the end of the
day, averages are done by overperformance, underperformance. But how far and how long
do you want to have underperformers?
And I don't want to socialize all categories, all sales to the same common denominator, of
you have to deliver X and Y. But there has to be judgement, and that judgement should be
done with criteria that we all share, so that we have one common language.
This portfolio management is not something new to Nestlé; all of a sudden, we're going to
start talk about portfolio. We had already on level of SBUs, our strategic business units, or in
the markets, or in the zones, portfolio management.
But what we did is to make it more capular and to have it much more visible and to
standardise some criteria. So that when we speak to each other, more when we have
agglomerate certain dimensions, sometimes you have to agglomerate because the world is
changing, it's integrating.
That is now allowed in a simpler way, through the tool, or the sharpening of our tool that we
have now.
In order to do that, you have to have also capabilities of data standardization. That is what
Globe gives us, it has enabled us actually to see and to look at the reality, which is complex.
I mentioned that we are in many markets, we are in many categories. And when you add it all
up, you have 1,800 cells.
But we are able to do that actually, by simplifying with the push of a button. And the axis we
are plotting is basically strategic fit; it is resource intensity and you can open that up:
resource intensity in CapEx or resource intensity in R&D, so we have many angles to do it.
How big is the growth potential? Can we drive and win in these categories? Because you can
be in a category that grows, but you have no capability to win. Well, all that is now plotted
out. We have one common language and go after it.
If you say what is your shortlist? Well, it is not my shortlist. This is our shortlist here, of all of
us, looking into it from different angles and discussing. We're building the answers of that
shortlist into the strategic business units, the global business plans, which are based per
category worldwide, that this is translated into zone plans that has taken that transparency
into consideration.

23

And then the market business strategy plans. So there it's translated not just in a list of
categories or cells that we then shoot down like ducks. That's not how it works. We built it
into the logic of a plan, that is more holistic than that.
But it results and you put more resources behind those that need resources, or you fix it or
you get rid of it. That is the translation that we have, which is has much more sharpness or
intolerance than we had before.
Pricing in Europe, maybe you, Laurent, you're the specialist of that now. But first of all our
pricing, we wouldn't like third parties to manage our pricing, because it should reflect the
value, consumer value. It's to see what we feel we build into that product, yet we are part of
reality, and it's true that there is not a lot of ambiance of high pricing, but you've seen also we
have been sensitive to that. Also raw material prices have allowed certain things, so it's more
a combination of things, but mainly two words on pricing in Europe, and that linked with the
retail dimension of Europe.
Laurent Freixe, Nestlé S.A., Head Zone Europe;
Yes, it's clear that we have seen in the last months a deflationary tension building up for a
number of reasons. The very first one is that there is no growth in the marketplace, so
everyone is fighting for a share of a shrinking pie, and that is building up tensions; that's one.
The second one is that the commodity environment, especially on the Coffee front, has been
relatively mild, so that is also fed those deflationary tensions.
What have we been doing? Basically, when we price we tend to first make sure that we stay
competitive at all times, and we protect our market share; that's one.
The second one is that we make sure as well that we capture the value of our brand, of our
products, in the eyes of the consumers, and protect our gross margins, which we have been
achieving if you see the H1 numbers.
Now going forward, I don't see the market will really pick up. You have seen the
unemployment numbers that will hamper the growth going forward for a period of time;
taxation as well is impacting available income. It's most likely that markets will remain
subdued. When we look at the commodities, always difficult to forecast, but we see some
inflationary tensions building up; Cocoa has been mentioned, Dairy is another one. So what I
can assure you is that we'll make sure we stay price competitive and capture the value of our
brands in the eyes of the consumers; that will dictate our pricing strategy, going forward.
Questions on:

Commodity basket outlook
Margin progression in second half

Liam Rowley, Barclays;
Just related to that last comment there, you touched on specific commodities that are going
in your favour or going against you. But I wonder whether you could give a comment overall
how your commodity basket is looking for the second half and maybe into 2014?
And then, related to that, do you still expect margin progression to be slightly softer in the
second half than it was in the first half? Thank you very much.
Wan Ling Martello, Nestlé S.A., Chief Financial Officer;
Liam, in terms of commodity we will guide commodity assumptions for 2014 during our full
year, when we publish our full-year results, so we'll have to wait for that.
In terms of balance of the year, we're not changing our guidance, which is low single digit for
the balance of the year.

24

Margins projected as they were first half. No, but we have mentioned it first half; we
mentioned that projection that we had first half that the margin is 50 basis points now, that
doesn't have to be extended too; that's not how we manage the business too. Because the
dynamics somehow during the year, but our commitment there is to have margin increase
though. In line with what we have been delivering in the past too should be rational.
Yes, just confirming what Paul said, our trading operating profit margin was up 20 basis
points in H1, and obviously, like Paul said, our commitment is to improve margin year on
year. That's all we can say at this point.
Question on:

L’Oréal

Matt Boyle, Bloomberg;
Regarding L'Oréal, I know you said you're keeping all options open; I just wanted to know if
you'd be able to help us out in terms of the timing of a decision. Do you expect to say
something early next year, or do you expect it to be at the AGM? Can you give us any sense
in terms of when you expect to let us know about that? Thank you.
We have mentioned we keep all options open, also to the option of saying when and where
we're going to say it. You're right in your first sentence, so we keep that as an option.
Questions on:

Organic growth guidance
Slowdown in the Water business

Patrik Schwendimann, Zurcher Kantonalbank;
My first question's regarding your organic growth guidance. You were mentioning a further
escalation in quarter four compared to quarter three: which regions and product categories
would you expect to accelerate and where would you be a little bit more prudent for the
future? That's my first question.
Second question regarding your Water business, which had a slight slowdown in quarter
three. You were mentioning a tough promotional environment in North America; could you
give us some more flavour what was the growth rate in the Water business in the US, maybe
in the emerging markets, and in Europe? Thank you.
We expect -- well, we don't manage our businesses on a quarterly basis, but for the balance
of the year we do expect that growth should continue to accelerate, which is what you've
seen in our nine months' results. And we expect that to come from a broad base, just like
nine months, all regions, most of the categories accelerating for the balance of the year.
The other question about Water, we have John Harris here who is managing our Water
business, actually who is here for the last time, because you're retiring, still too young to
retire, but you look young because you drink a lot of water. Please comment a little bit on the
slowdown and the acceleration in some of the areas, please John.
John Harris, Nestlé S.A., CEO Nestlé Waters;
In terms of water, particularly as it pertains to North America, we had a slowdown in July; we
25

had a very good month in September from a water standpoint, some of it was weather
related. We're back on growth then in terms of Water, particularly in North America. North
America was hit with a lot of competitive pricing as regards to private label. Private label
really took the prices down in the month of July and we decided that we were going to protect
our margins, which is what we did, but we are coming back.
I also want to comment on the strength of North America as it pertains to Perrier and San
Pellegrino. Both those brands, which are basically our premium sparkling brands, showed
tremendous growth, so we're pleased with the growth there in terms of North America on the
sparkling brands, which helps us from a margin standpoint and a profitability standpoint.
Questions on:

Cooperation with Google
‘Unhealthy’ Nestlé products

Kristina Gnirke, Bilanz;
I have two questions. You mentioned your cooperation with Google. Roche does cooperate
with Google in getting more information about patients' needs. So wonder could that be an
option for Nestlé to cooperate with Google in getting information for customer needs?
The second one would be, you concentrate strongly on the healthiness of your business. On
the other hand, the basis of your business is more or less a lot of unhealthy products. How
does it fit together, are you going to change anything there? Thank you.
Patrice, maybe a word or two on Google? You have been behind this fantastic KitKat/Google
relationship, but the relationship with Google is much broader than that. Then patients' needs
and some ideas about digital and collecting data.
Patrice Bula, Nestlé S.A. Head of SBU, Marketing, Sales and Nespresso
Thank you for the question. I think on Google, of course, what has happened with KitKat
was, in fact, the result of, or an outcome, of a deep relationship that we have initiated with
them now two years ago, in search for excellence in social media, and especially in search,
which is, of course, where Google can bring a lot. So we have several projects with Google
in several parts of our businesses where we are working together at finding this excellence in
search.
One can be, of course, by deepening the relationship and communication, interaction with
consumer, we can service consumer better, being patient, being young mother, or young
consumer. This we have done, and this is where they came when launching their new
android, which, as you may have known, was always branded with some generic
confectionery brand. They ask us if we could do things together for the first time for them and
brand a new android version KitKat, which we embraced and we did together, I think, very,
very well.
The last count, to give you an idea of the impact was we were close to 1 billion tweets
exchanged among people with KitKat android brand mentioned in the tweet. This is on top of
all social media happening, promotion and so on that we did together, which was a first in the
world.
So that's part of it. That's part of the way we work in marketing, cooperation. We have this
with Facebook; we work with Twitter. We work with Google because this is the new way that
we have an interaction with consumer; that you enter conversation with consumer.
Thank you, Patrice. Your second question is Nestlé, you all talk about Nutrition, Health and
Wellness. You talk about how healthy your products, etc., and you talk about -- and then you
have chocolate, shame on you. That's what you're saying. I don't think that's what you
26

believe and you want to provoke, and I believe there are not really unhealthy products. You
can have [unhealthy products], but we don't have these. It's easy to say you have unhealthy
diets, but we should be part of building healthier diets and more understanding.
We have said actually our agenda Nutrition, Health and Wellness goes about first pleasure,
balance and understanding. We have to be part of driving these three. Pleasure, because
people stay with things that they like. You're not going to force something as being part of
people's daily life that he doesn't really like at all. So pleasure's important; that's why we have
60/40. We want to be preferred as a taste.
Second, we have to have balance, this means it has to be possible to be part of a diet, of a
healthy diet, but for a healthy diet you need peoples' understanding. So we have to do
education. You have to be transparent on the label about the intrinsic qualities and the
nutrition of the product you serve. You have to link up with that label through the digital
media now and Internet so that you can even go deeper into explaining what the product is
all about; how it is made up, what is here, what is there.
Also you have to educate people in Nutrition. We were not educated in Nutrition before.
When I was at school I never was. We see that coming in; we are pushing that. We have
Nestlé Healthy Kids programme that is just about that. It is nutritional education in schools,
and it's not just our programme; we're just driving with the authorities in their respective
countries, their programme and building, or educating, children that can go in a more
balanced way about a healthier diet. So we bring in, in our portfolio, whatever pleasure we
can with more goodies and less baddies.
We are investing an incredible amount of money in how can we deliver preference of taste
with less sugar, or less calories in general, or less fat. We have our internal policies that are
really driving this agenda, where we're putting in an amazing amount of talent and resources
behind just to do that, and it is possible. Science is being created to be able to do that.
So we are definitely a company that thinks about healthier diets in a more holistic way,
driving that agenda, which is not only products. It is products, education, transparency, etc.,
R&D, science, so I think that's a much more honest answer to the question than saying, let's
get disengaged from whatever maybe seen as negative. We know it's going to be part of
people's lives anyhow, but let's disengage our understanding, our R&D, our science, our
knowledge, let's disengage from that category.
I'd rather have a company that says, no, we want to be there. We can leverage our science
there too, and bring and be part of a broader dimension of healthier diets and healthier
lifestyles. Yes indeed, we accept that we may be criticized for it, but we're going stay
engaged. That's why I said engage with stakeholders, in that dialogue.
So we do truly believe that we're sometimes pushed in a corner as – you are a big part of the
problem - and I honestly believe, we are rather part of the solution if we work together on this
in a more balanced and honest discussion.
We do see an incredible openness of all parties involved in shaping that Nutrition I
mentioned in our societies. It's so much part of healthier lifestyles and yet, at the same time,
it could be part, if we don't go about it seriously, honestly and responsibly, could be part of
driving unhealthier. So we want to be proactive on the first dimension, or being part of the
solution.
Questions on:

Latin American performance
Nestlé Professional in Europe

Robert Waldschmidt, Bank of America Merrill Lynch;
Yes, just a couple of questions, if I may? You've talked about North America and what's
going on there. I was wondering if you could give us some colour on Latin America, given
there's been some concerns about slowdowns at market levels there and what you're seeing
in market levels and, indeed, within your business, given it sounded like you're seeing
accelerations in those regions as well.
27

And then also, back on Europe, you mention that Professional is not doing so great. Can you
give us a steer in terms of is that actually literally negative and, if so, how much? Thank you.
Well, let me answer that, Latin America. Well, Latin America is still Latin America, this means
we see some inflation coming back, some nervousness too in big countries and you know
Latin America is basically shaped and made by two countries, Brazil and Mexico.
They have their challenges; Mexico, linked with North America. But I do see that the
arguments of labour is coming back, so the factories, the industrial dimension, is taking some
new colour and that should give growth in the future.
Brazil has some questioning that they do to themselves and I think rightly so. There are
certain things that have to be sorted out. There's some worldwide events coming up too that
create some nervousness and some opportunism in certain areas too.
So I feel also these countries and what you see in general, apart from some exceptions, but
in general, the democracies in these countries are, in my eyes, the fundamental basics that I
believe this continent is going to continue growing.
The political authorities or leadership in these countries have seen that through democracy,
through stability, there's so much value to be created. They do still have, in my eyes, in many
areas, to do the structural reforms that would allow to have even more growth flourishing
through these countries on the longer term.
So what we see though is indeed, some inflation, far from what we've known, but some
inflationary dimensions coming back. That is linked in with price increases; linked in also with
a more subdued demand which goes hand in hand. I believe that the fundamental balance is
still there, though, for growth.
Nestlé Professional has two dimensions. First one which is external. The external one is that
a big part of the business of Nestlé Professional, as we had it, was linked with the parts of
the world, the developed markets that are subdued, where consumers are cutting on their
spending, of going out-of-home, where we were so that is one, so external headwinds.
And internal not headwinds, but internal things that we are doing is we that a few years ago,
we defined and said in this huge market that we have, which is out-of-home, we have to pick
our battles. We have said we're going to go for branded beverage solutions and really
building the capabilities and answers there in a very strong and proprietary way, and then
also to customize food solutions, branded food solutions too.
So what we're actually doing is, I would say, one step back to jump better. So actually to see
how we build the capability. That's where we are with these two trends combined. That's a
little bit what is reflected in our results there. I'm a true believer that we are doing the right
things and that we're going to enjoy that Nestlé Professional dimension, which is one of our
growth pillars, definitely, we're going to enjoy that in the future.
Questions on:

Impact of Brazilian Currency valuation

Assis Moreira, Folha de São Paulo
Mr. Bulcke, what was really the impact of the valuation of the Brazilian currency on the
business this year?
Secondly, we can expect that Nestlé will increase still more in the price in Brazil since the
inflation is getting higher?

28

Well, I'm going to answer that because impact on our business well, it's impacting on
consolidation too. The Real has lost a little bit of colour. It was one of the stronger ones a few
years ago and now it lost some colour, so at the end of the day, although we sell the same or
even more things or chocolates or milk, if you consolidate, in Swiss Francs it’s less.
So that's how it is. That's something we cannot drive, at the end of the day, but what it does
though as mentioned before, it creates, because of the import dimension that you still have in
certain areas, it creates inflation. Inflation is translated into price increases.
We had to increase certain prices. We do that holistically in a sense that we try to
compensate as much as possible. We are very local producing, so we have actually
competitive edge there in a sense our local production capabilities that we have are much
more linked to the realities and the dynamics of cost structures of the markets per se or the
countries per se.
It would be worse if we were to import everything and Brazil, which is for Nestlé actually, an
exporting market, this is not really affecting us directly there in that sense. So we almost
produce everything that we sell, with a few small exceptions, everything we sell in Brazil is
produced in Brazil. So that is a competitive edge we have.
Questions on:

Pricing in Zone AOA

Jeremy Fialko, Redburn;
I have one question on your pricing in the AOA zone. That sounds like you had a very good
acceleration in RIG in the quarter, but your pricing actually turned slightly negative. So really,
could you talk about where you're seeing that negative pricing? I'm guessing that Coffee will
be where you're getting most of it. And how you might think it's going to evolve, given the fact
you have had some quite big currency devaluations and, therefore, would need to put up
prices to offset those. Thank you.
Nandu Nandkishore, Nestlé S.A, Head of Zone AOA
Yes. Firstly, zone AOA, you have to understand, 25% of our business is developed markets,
where the dynamics are similar to Europe, in terms of the inflationary environment. And 75%
of our business is emerging markets. In emerging markets, the bulk of our business comes
from the PPP segment. And it's the lower population groups which really face the pressure of
an economic slowdown and inflation, at the same time.
So what we have chosen to do is to build volumes; is to grow market share; to improve gross
margins, and to do this all at the same time that we also drive cash flow and working capital.
So personally, I see this as a very positive evolution of our business competitiveness and
strength, going forward.
And generally, I would say we have low pricing, which is -- sometimes we have higher
pricing, lower pricing. Pricing gets linked with many factors; the major drivers are raw
material prices and costs. But we have very low pricing in general now. Is there a best proof
that we are sensitive to consumers' expectations and needs, and how we reflect our cost
structures, also our efficiency drives, and all that, into the prices. So I would see that as
rather positive.

Question on: Performance of smaller markets in the Emerging markets region
Binta Drave, Exotix;
I just have one question. You mentioned a recent slowdown in emerging markets. I just
29

wanted to know if you could shed some light on smaller markets in the EM region, i.e., Africa,
and more specifically, Nigeria, just to have an understanding of what's going on at the
moment, and what's your expectation for fiscal year 2014. Thank you.
It looks like, Nandu, quite a lot of interest in your zone, many things happening. But I give
that to you. Africa is a continent that we always believed in, very, very early on; many, many
years there. We have invested heavily. And it is also a continent that has quite a lot of stories
to tell; fascinating, but also, a lot of volatility and turbulence, so -Nandu Nadkishore, Nestlé S.A., Head of Zone AOA
Yes. Thank you, Binta, good question. Across Africa, we see continued growth. That's the
underlying story. Now, within that, we, of course, see pressures, as I mentioned earlier,
political disturbance, when you take the northern part of West Africa, where safety starts to
become a concern. So it's not as easy to reach products and distribute products as it was
there earlier. So those effects continue.
In general, inflation or a currency devaluation has an effect also on purchasing powers, so
those issues continue. But we know how to deal with that. Our market shares are strong; our
market shares are growing. And our business continues to gain in strength and penetration in
West Africa, in Equatorial Africa, in South Africa, and also in the northern part of Africa, in
Egypt and Libya. We see good acceleration of our business across the continent.
Question on: Organic growth target
Jeff Stent, Exane BNP Paribas;
Just a very quick question. Is 4.5% around 5%? That's the question.
Paul Bulcke, Nestlé S.A., Chief Executive Officer
I don't know, but Versailles is around Paris. Look, around 5% is our commitment, and we'll
see where we get.
Jeff Stent, Exane BNP Paribas
Okay. Thank you.
Paul Bulcke, Nestlé S.A.
Good question, though. A little bit of a strange question for the final question. Is there some
other question from the room here? No, it doesn't look like. But anyhow, thank you for the
last question.
Once again, thank you for following us and being here for us, for the persons here in front of
me. But also, for you watching and following us through the webcast, I really thank you for
your interest in our Company. It's always nice to be able to share with you what is in our
minds, what is pushing us, what is enthusing us, what is challenging us.
And sometimes we are called – and I take it actually as a compliment, they say, Nestlé is like
a force tranquille. Yes, it's a compliment, at the same time I say wait. Because if they just
could know, the internal competitive intensity we have, and how we really ask tough
questions; and how we are challenging ourselves literally, and ourselves collegiately; and
how we go and build capabilities; and how we send people out there in difficult places that
many of us wouldn't like to go to; and how we find people with their families doing it.

30

So this intensity, but then also how we have built in this external looking permanently into our
way of deciding, of evaluating our actions. That is something we want to share. It's
sometimes difficult because we are sitting in this room or in the webcast through these new
technologies, and then you look out and you see the lake, and it's all pleasant and nice. Well,
I can tell you, there is a lot of intensity that drives these performances. It doesn't come from
nowhere. It is driven by people; it is driven by the 340,000 people we are.
So with that, I just want to close here. Maybe you'll say a few words. These new formats,
we're going to be open to your comments on them, to see we drive that further. I must say,
for us, it's helpful to do it combined because we can really build all messages together, and
share that with you with a little bit more time. But I leave a little bit also to your feedback.
Robin Tickle, Nestlé S.A., Head of Corporate Media Relations
Thank you, Paul. As usual, we are happy to take any follow-up questions via email or Twitter,
and I'm sure you know the addresses. Thank you very much.
Paul Bulcke;
Thank you. Thank you, all.
END OF TRANSCRIPT

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2013 9M sales conference transcript

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