IP Management @ Nestlé - 2nd March 2007

NESTLE S.A HEADQUARTER SWITZERLAND

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

Introduction
 World largest food and beverage company

 Annual sales

 Employees around the world

 Total Brands

 The birds’ nest

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

HISTORY
• Founded by Henri Nestle in 1866.

• Company was run by Farine Lactée Henri Nestlé.

• In 1905 merged with American company situated in

Switzerland and formed new company, and named Nestlé &
Anglo Swiss Condensed Milk Co.

• And finally in 1977 Nestlé was named.

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IP Management @ Nestlé - 2nd March 2007

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

ORGANISATION HIRARCY

Mr. Martial G. Rolland Mr. Shobinder duggal

chairman & managing director director finance & control

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

Non executive directors

Mr. Michael w.o.garrett Mr. Ravindar Mr. Pradip Bijal

Narain

Mr. Richard Sykes Mr. Rajendra S Pawar

Finance & Control
 IP Management @ Nestlé - 2nd March 2007

Executive board

B murli, company secretary

Paul Buckle, Nestlé CEO

John J. Harris, EVP, Chairman, and CEO of Nestlé Waters

Frits van Dask, EVP of Asia, Oceania, Africa, Middle East divisions

Lars Lesson, EVP of Strategic Business Units and Marketing

James Singh, EVP of Finance, Control, Legal, Tax, Purchasing, Export

Werner J. Bauer, EVP of Research and Development, Technical,

Production, Environment.
Finance & Control
IP Management @ Nestlé - 2nd March 2007

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

HISTORY OF NESTLE’S LOGO

1) 2) 3)

4) 5) 6)

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

Recruitment
1) graduates
Sales Officer Trainees
Technical Management Trainees
Technical Trainees

2) professionals
Management Trainees
3) Finance and Control Trainees

Executive Vice President – HR

Finance & Control
IP Management @ Nestlé - 2nd March 2007

Marketing Strategy

 Global marketing strategy

 Branding strategy

Finance & Control

IP Management @ Nestlé - 2nd March 2007

Marketing Mix

1) Product

2) Price

3) Place

4) Promotion

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

COMPETITORS ANALYSIS

 Nestlé's competitive strategies

SWOT ANALYSIS

1)Strengths

2) Weaknesses

3) Opportunities

4) Threats
Finance & Control
 IP Management @ Nestlé - 2nd March 2007

Nestlé in the Global Food Market

1.5% 98.5%
• Nestlé Sales (2008)
CHF 98.5 billion
USD 80 billion

Nestlé
Others

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 IP Management @ Nestlé - 2nd March 2007

The World's largest Food and Beverage

Company in 2008
80
Food Sales (in billion USD)

70
60
50
40
30
20
10
0

Kellogg's
Kraft Foods

Coca-Cola

ConAgra

Schweppes
Unilever

Cadbury
PepsiCo

Mills
Danone

General
Nestlé

Mars

Sara Lee
Facts and figures

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 IP Management @ Nestlé - 2nd March 2007

Our Line of Products

• Soluble Coffee
• Infant Nutrition
• Confectionery
• Dairy
• Chocolate Milk Beverages
• Bottled Water
• PetCare
• Ice Cream (co-leader with Unilever)
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 IP Management @ Nestlé - 2nd March 2007

6 worldwide strategic
corporate brands

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 IP Management @ Nestlé - 2nd March 2007

The Group Intellectual Property

Department Manages IP Rights
Worldwide

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 IP Management @ Nestlé - 2nd March 2007

Strategic and local brands are

protected & managed by IPD
Brands Protections
Managed by 17 Regional
Local IP Advisers (RIPA's) for
27'000 local Nestlé Operating
Companies

6'000
Managed by Center IP
82'000 Department in co-
operation with the
Strategic Business
Strategic Units ('SBU's) and the
365
RIPA's
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 IP Management @ Nestlé - 2nd March 2007

...Chocolates...
Example:

Trademark infringement
+ Unfair competition

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 IP Management @ Nestlé - 2nd March 2007

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 IP Management @ Nestlé - 2nd March 2007

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 IP Management @ Nestlé - 2nd March 2007

• Soon Nestle will also launch Pet care products

in India.

• Students Source

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 IP Management @ Nestlé - 2nd March 2007

Financial analysis
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 

Sources of funds

Owner's fund

Equity share capital 96.42 96.42 96.42 96.42 

Share application money - - - - 

Preference share capital - - - - 

Reserves & surplus 322.01 292.47 257.72 222.99 

Loan funds

Secured loans 2.87 16.27 14.30 7.91 

Unsecured loans - - - - 

Total 421.30 405.16 368.44 327.31 

Finance & Control

 IP Management @ Nestlé - 2nd March 2007

Fixed assets

Gross block 1,179.77 1,058.27 942.40 838.16 789.45

Less : revaluation reserve - - - - -

Less : accumulated 577.96 516.48 468.63 440.94 398.08

depreciation

Net block 601.81 541.80 473.77 397.22 391.37

Capital work-in-progress 73.70 38.24 22.83 34.09 13.94

Investments 94.40 77.77 104.43 154.86 73.64

Net current assets

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 IP Management @ Nestlé - 2nd March 2007

Current assets, loans & 678.69 583.45 514.59 421.20 

advances

Less : current liabilities & 1,027.31 836.10 747.18 680.05 

provisions

Total net current assets -348.61 -252.65 -232.59 -258.86 

Miscellaneous expenses not - - - - 

written

Total 421.30 405.16 368.44 327.31 

Notes:

Book value of unquoted 94.40 77.77 104.43 154.86 

investments

Market value of quoted - - - - 

investments

Contingent liabilities 63.27 35.93 50.04 10.39 

Number of equity 964.16 964.16 964.16 964.16 

sharesoutstanding (Lacs)

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 IP Management @ Nestlé - 2nd March 2007

P&L ACCOUNT
Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 

Income:

Operating income 3,500.96 2819.16 2,475.09 2,229.42 

Expenses

Material consumed 1,692.53 1834.79 1,119.07 1,041.44 

Manufacturing expenses 186.09 268.21 152.97 126.15 

Personnel expenses 269.44 316.16 183.29 164.25 

Selling expenses 340.20 378.33 268.77 242.90 

Adminstrative expenses 329.73 489.75 248.55 226.48 

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 IP Management @ Nestlé - 2nd March 2007

Expenses capitalised - - - - -

Cost of sales 2,817.99 3287.24 1,972.65 1,801.22 1,728.73

Operating profit 682.97 -468.92 502.43 428.20 431.48

Other recurring income 25.13 20.61 23.00 11.09 16.19

Adjusted PBDIT 708.10 -448.53 525.44 439.30 447.67

Financial expenses 0.85 0.44 0.21 0.78 1.92

Depreciation 74.74 66.28 56.84 49.14 46.27

Other write offs - - - - -

Adjusted PBT 632.50 -515.8 468.39 389.38 399.47

Tax charges 214.80 165.43 159.49 134.58 136.06

Adjusted PAT 417.70 -680.37 308.90 254.80 263.40

Non recurring items -3.89 -5.28 0.67 -2.88 -0.32

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 IP Management @ Nestlé - 2nd March 2007

Other non cash adjustments - - - -

Reported net profit 413.81 -685.1 309.57 251.92

Equity dividend 318.17 NIL 241.04 236.22

Preference dividend - - - -

Dividend tax 52.21 34.48 33.81 31.29

Retained earnings 53.90 41.98 38.18 28.65

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 IP Management @ Nestlé - 2nd March 2007

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