Deutsche Bank 16th Annual dbAccess Global Consumer Conference

Jun 11, 2019

Summary

Regional management is reducing costs while funding innovation and share gains; 60% of sales gained or maintained share, versus 40% a few years earlier. The outlook targets ~2% average organic growth under flat pricing, with continued margin improvement and growth investment.

Good morning, everybody. The clock is ticking, so it's time for us to recommence with the presentation sessions. My name is Gerry Gallagher, one of the consumer team at Deutsche Bank in London. It's my very great pleasure to introduce Marco Settembri, who is the Executive Vice President of Nestlé's EMENA business. As you'll see from some of Marco's slides, that in itself is a very substantial business in its own right. The format of how we're going to do this this morning is Marco's going to give you some headline slides to give you some context on the business. I'm then going to ask Marco some questions, and then we will open it up to the floor after that. With that, Marco. Thank you, Gerry, for having me here. It's a pleasure to address to you today. Yes, in my introduction remark, I'm Marco Settembri, 32 years in Nestlé. Before interacting with Gerry, I want really to give an introduction on Nestlé in zone EMENA, on the business update, but also mainly on the transformation that is happening in the business, in the what and the how we are operating in the zone. So I give for read the disclaimer on the forward-looking statements that we make during this introduction and also during the discussion. The business of Nestlé in zone EMENA, so the business that I'm responsible for is around CHF 19 billion business, is 20% of the group sales. If you add what is managed globally, you should add 8, 9 billion extra that is part of Nestlé in zone EMENA. If you add also the three joint venture that we operate with three different companies, the total business of Nestlé in the zone EMENA is around CHF 30 billion. Coffee is the biggest category, so seven categories report to me, but coffee and beverage is the biggest one. In terms of geography, 60-40, 60% Western Europe, 40% Eastern Europe and Middle East. I was mentioning before the transformation, so the how we are working in zone EMENA. Really just to give you some highlight, is seven categories reporting to me. There have been two movements happening in the last two years in the way we are operating. From globally managed, two big globally managed business has become regionally managed business, nutrition and Professional out of home business. And the rest of the business, 40% or 50% of the business that used to be managed locally in the different geography, now is managed through this model of a regionally managed business. Now the majority of the business that is Nestlé in the zone is a regionally managed business. How we work means that the category head, the categories have P&L responsibility, profit and loss and resources and arbitration, while we manage with the local structure, with the market structure and the local structure to execute everything in the market. What is the benefit of this operating model? Really to combine the two, combine the expertise of focus category, in terms of optimization of assets and resources, while also combine the effectiveness of the Nestlé presence in the different geography that is an historical strength of the company. What is the success factor of that is really we are succeeding if the two elements are working well together, and that's what is my responsibility to make it work. In terms of operating model, we have a very simple, efficient, worldwide operating model in Nestlé. That is the virtuous circle. This is the virtuous circle in action because that's what's happening. Since we are managing the zone in this way, we are achieving efficiency, we are reducing cost in all the elements of the value chain. Factory fixed cost is down quite substantially. MOGE, marketing and general overhead are cash-led or has been reduced in every single part of the zone. Fixed distribution cost, in spite of all the issues that we all know in terms of inflation in some parts of the distribution, is also down. Through this value extraction, we are investing in growth. We have increased our investment in generating demand activities, and we are driving market share up. More and more we are growing share, more than half of the category sales are growing, and I would say in the last 9 months, this acceleration is really visible in almost all categories. At the end of the day, to deliver extra profit, more profit, each category have been able in the zone to improve profit. I would say from 35, 40 basis point up to 150 basis point improvement in margins in the different category, while creating shared value that is part of our Nestlé DNA. So, working with the society, with the stakeholder in every element, with all the initiative that we run. In terms of category opportunities, I mentioned here only the few one that we announced in the last month, or launched in the last month. In every single category, we are really disrupting or innovating in terms of go-to-market business model innovation. We say pet care, thanks to the ecosystem that we have created, we have last announcement that we made, we are investing also in veterinarian clinics with the participation in IVC. Nutrition, for instance, is a category in which that is not growing overall in the zone because of the birth rate is stable or reducing, especially in Western Europe. But we are growing substantially, we are growing share thanks to portfolio management, thanks to innovation, and that's the last innovation that we did in U.K. U.K. marketing with Little Steps, and we are gaining share quite substantially. In coffee, you know that we have signed the agreement with the Starbucks, and now we are introducing the Starbucks range in the retail. We are just introducing the first four market, and this will be followed by every market quite soon. Quite very exciting, and you see a picture of the first store that we have built and quite exciting possibility in coffee. Also in the categories that are not mentioned as a priority overall in the portfolio management by Mark Schneider. In food, we are innovating quite strongly in the new plant-based food protein, like the launch of Incredible Burger. Through that, let's say, are we delivering? Yes, we are delivering the zone, especially after many years in which the zone was delivering around 14%, 15% operating profit. We have been able to increase profitability quite substantially in the last 2 to 3 years. I would say, while keeping the growth, the organic growth always around in average 2%, knowing that especially in the last two or three years or few years, I would say there is no inflation in Western Europe, in the food market is quite remarkable. This is coming from what I told you before, innovation, premiumization, real internal growth. You know that in Nestlé we put mix in the real internal growth. Mix is being a huge factor of growth. Also the margins are growing through the growth and through reduction of structural cost, because for the first year in 2018, we have been able to reduce the structural cost below 20%. From the core, EMENA2020 is what I call the transformation that we did in the zone EMENA. We are moving now to the expanding to the new territories of EMENA2020. I call it EMENA2020 Connect. The five chapter of that is our sustainability by design, because we need to evolve, we need to transform, and we need to anticipate. The consumer trends are really becoming more and more important in the zone, in Western Europe especially, but I would say in the entire zone. Being sustainable, on top of being tasty, healthy, is something that is extremely important to create a competitive advantage. You know that for us in Nestlé, creating sustainable competitive advantage is a must in order to win. So what consumer, where consumer are shopping, what they are eating, how they are connecting is clearly something that is changing, evolving, and we want to really be always on trend or anticipating the trend. The second is consumer centricity. It is part of our DNA, but it is something that we, by doing this transformation in the way we operate, having the consumer at the core of everything that we do in each category, is the second element. Shopper centricity, you know what is happening in channel blurring lines. What is channel, what is retail, what is discounter, what is out of home, is something that is changing quite substantially. Ability for us to put the shopper, to follow the shopper journey in every place is the key of winning also in the future. We are expecting a lot of value from operation, distribution, and production. We are now really putting a lot of money also in becoming more automated. Also because you know also the issue of labor cost and labor scarcity in many places in Europe. Automation for us is a way to create gaps in the future. Digitalization, digital by design. Digital for us is not something that is only for consumer and generate demand, but obviously is, as I said before, automation in the operation, in the way we operate, in the way we operate also in the marketplace, involving and engaging with all the stakeholders, and our teams, that makes a huge difference. So at the end, what I try to convey is the fact that we are transforming in the zone EMENA quietly, but I would say quite radically inside, but also we want to do it outside, and we are doing outside, winning market share by anticipating the new consumer trend. So it is a history of zone EMENA of delivering, but also winning. Winning market share is what at the end we want to do in a market in which the category is the food market is growing without inflation, only a couple of percent, 1%, 2%. This is my main message, but I am happy to respond to any question that you may have. Gerry? Okay, thank you, Marco. I will excuse myself before we start. If you see me standing up periodically through the next 30 minutes, it is because I cannot see the clock in front here, which tells us when we are running out of time, so I might have to stand up and have a look at that. Nothing untoward if that happens. The first question I have got for you, Marco, is I want to focus on the European business. Clearly, you have been a long-standing Senior Executive at Nestlé for some time. Could you just take us through how you see the business has changed in terms of the leadership at the top from Mr. Schneider, and how that has impacted the business in the years that he has been in charge of Nestlé? I think that they can hear me. Mark is, in a certain way, a very specific person. He is very dynamic person. What is good in Mark is that he has taken everything that is Nestlé is good. He has respected the culture, the nature of Nestlé, the people of Nestlé, and really has brought something more, I would say, on a very good basis. Not come to really change dramatically what Nestlé is, but it is changing in a more evolution way, more than a revolution. In a certain way, however, this is changing quite rapidly because the way Mark is evolving portfolio clarity, in clarity on decision right, in business-related innovation, in sense of direction and sense of cost consciousness is very strong. I would say Mark has given a huge dynamic in that sense. I see with me, with the market, I started this job the same day that Mark started his job in Nestlé. Immediately, Mark has enabled and empowered me to do what was necessary in the zone EMENA to transform. You see also how Mark is fast in getting what is right, and if you are connected with him and aligned with him, then it is fantastic. That is, I would say, all the transformation that we are doing in zone EMENA, you really feel empowered and you feel Mark is with you guiding, but also enabling you. Just following up on that and one of the topics you discussed during your presentation. One of the things that happened when Mark came to the business is some of the globally managed businesses went into the regions, and that happened as well in Europe as part of your remit. Could you talk about how you've adopted that, what changes you've made, what successes you've had, challenges, et cetera, and where you see those businesses going within Europe? Yeah. I have to say that these two business, Nutrition especially, but also Professional, now that I'm embedded in the zone, you can really have the market head and the market structure really connected with what is the business. In the past, globally managed business means also that there is a kind of autonomy, even at the execution level. Now that are in the zone, we can really leverage the size of Nestlé and the strength of Nestlé for these two globally managed business. You take Nutrition. Nutrition in the past was managed. Obviously, they have three regional headquarter in EMENA, where Europe was the last of the priority for Nutrition, because obviously China and the region were much more priority. For me, it's a big priority to do and to win in the marketplace. The launch of Little Steps in U.K. or the HMO launch in all the zone in which we anticipate our competition, I would say, quite strongly, is being enabled by the fact that for me is a priority, and Nutrition is it. So we cut some costs, but we more than cutting costs, I would say we embedded in this way of working. We have a governance body between the category and the markets in which we really discuss and align together on the priorities, and then we just go. So I would say that it's proven that this regional model work specific very well in our Nestlé specifically situation. Okay. Just following on from that and taking the theme of globally or regionally managed businesses, I think it may have surprised one or two people in the presentation that within the European business, you have some regionally managed businesses or brands. Could you talk about why that is and what degree of complexity or not that brings to managing the European region? Europe is complex region, of course. But EMENA is very complex region because we have very different realities. But one of the big advantage of Europe versus other region is the fact that it's quite compacted, and we are part of European Union, and the majority of the business is part of European Union. You can really take decision, harmonize decisions, standardize decisions in terms of brand portfolio assets in a way that you can really move goods in a easy way. So working together give a huge advantage in the resource innovation and so on. When you launch a product in U.S. or in China, you have scale to do everything immediately, even with specific assets and production. When you do it in Europe, you suboptimize if you do something in U.K. that is different from France or Germany or Russia and so on. By working together, by deciding the portfolio and so on, you can really leverage, and you can really fast win. You think about the plant protein, think about the KitKat Ruby, think about the Felix product. We can do it, we can immediately roll out everything in a fast way. You can say yes, but you could do it before. But instead of convincing 35 people that it's a good idea. By the way, it's nothing wrong. When you manage locally, you have your assets, you have your 25 factory in France, you really are focused only on how to make these 25 factory working, and you try just to fill your factories. By definition, you sub-optimize because in reality, maybe the conversion cost in some other markets is much worse. Maybe in France, we can do much better some other product that is happening, we can bring some product to France, and that's happening. So by managing, arbitrating, and deciding sourcing plan, portfolio, and so on at the regional level, you can really optimize resources and eliminate waste. Okay. At last month's Capital Markets Day, you made a comment that resonated with me, certainly, and I suspect a lot of people, in that you said mix is the new price. That's probably particularly relevant for the EMENA region or Europe within EMENA, and possibly the U.S. as well. So to what extent can you keep innovating the product, and the consumer continuing to want to buy the innovation? When do we reach a point where the innovation just goes a step too far and the consumer doesn't buy the innovation? I would say there is no end to this game of giving better satisfaction to consumer to what they want. There is no end in the sense that people want to have a solution. That does not mean the solution must have a higher price. In reality, the ability, working with the mix, is to work with the different element of the mix. At the end of the day, sometimes you work with the mix keeping the price fixed, but you do with lower size. We do it with higher taste, higher satisfaction, but with different size. At the end of the day, the price per kilo is going up. There is no end game, I would say, because I see that in all the categories which we are able to do it can be waters, can be pet care, can be chocolate, or can be nutrition. In reality, this premiumization journey is a constant journey to give better satisfaction to consumer. We live in Europe, especially in With my people I say, "You need to increase prices, of course, following the commodities and so on, but you need to have the mindset that you cannot increase price." If you start to have this mindset, you really are obliged to work with mix, to work with real internal growth coming from mix. In every category now, the price per kilo, for instance, or the marginal contribution per kilo, is one of the main KPI that I have because I manage the asset. I know how can I keep the fixed cost flat or reduced. By managing the marginal contribution per kilo, I will grow because I focus on the segments that are growing, and I improve my margins. We will see. I hope that in the future, for the benefit and the health of the Europe zone and so on, there will be also some inflation, real inflation, and not only nominal inflation because that is also the issue, that all the entire value chain, from farmers to everybody can really take a little bit more breath. At the end of the day, as a businessman, I need really to live without that. Okay, just following on from that. You want to take complexity out of the business, but also we have got this mix overlay. Is it really feasible over the medium term to take complexity out of the business, or is it a never-ending treadmill where the complexity will stay where it is because of the innovation that gets overlaid on what you try to do in terms of taking complexity out of the business? I'm still enjoying, I would say, because it's not really an easy task, a moment in which I really have a huge complexity created by many different years in which everybody was doing differently. What does it mean, complexity? Complexity is not only in the final product that goes to consumer. That is fine, but it's in what is behind that. If I buy the same vanilla flavor in 50 different specifications from 50 different suppliers, by definition, I don't leverage my size and I sub-optimize. When I say reducing complexity for me, is not only you see the end game, but think about behind the scene. I'm enjoying the fact that I have still huge opportunity to cut in the complexity and to leverage the size better of Nestlé in the different categories. Having said that, I strongly believe in the ability of mastering the complexity, because complexity is fine if you master it. There are two ways that I want to give you as an example. The core of the factory or the asset must produce standardized, harmonized stuff at a very low cost, very massive stuff. But you have also specialized factory that you are doing, or specialized business that you are doing for personalization, and in which we can create even, like in pet food we are doing now, product for your dog that is different from my dog, that is different from your dog. So we can master these two things if you really have these two ways. On the other hand, remember also that the more we'll do in the future is to create a kind of chassis, in which the chassis is the same, in which the differentiation, the features that you want in the product is what consumers see at the end is different, but the chassis is the same, and this is what is important for me. With automation now, with the new elements, with 3D printing, for instance, it's something that for us is one of the major area of innovation that we do in the future. You can really even question again, your assets in a different way. You can really be very flexible, small assets with 3D printing and personalize in the line while you keep a very standardized technology. Okay, before I open up to the floor, I'm just going to ask one pretty basic, if not blunt question. Lots of good things are going on in the EMENA region. Price is not with you within Europe, at least. Are we in a situation where EMENA will be a 2% organic growth business or do you think you can do better than that? I would say I don't want really to promise anything more. We are equipping ourselves to win market share and to grow. The organic growth is also based on your volume, mix and price. As I said, the 2% is based on, let's say, minimal price, and I would say flat price. If there will be inflation in the future, of course, we can also think about a different level of growth. It really depends also what is happening in the environment. You know that in Europe, and the Middle East, and in Eastern Europe, there is quite lively environment, and Middle East, and North Africa in the past, when was put together with the Europe, was also because we wanted to have a strong growth region, and then we had in the last 10 years, conflicts and Syria, that was the number one market in the zone now is almost zero now. It's not zero, but it's almost zero. We have huge growth in other parts of this region, but on the other hand, you have other opportunities that you cannot capture. It really depends what is happening also in the future with Brexit, what is happening with the Russian tension in Eastern Europe. You cannot bet on these things. But having seen all the elements, I think the 2% average growth is something that we can continue, at least it's something that we want to do. But I would say hopefully we are equipping ourselves to do more. Okay. Thank you, Marco. With that, I'll open to the floor if anybody's got any questions for Marco. Hi, Marco. Can I just ask how is your sales force organized now? Is it by brand, category, region, client group, and why? What's our target mandate, what statistical unit are they measured by? The question about sales force, it really depends market by market, I would say. One of the role of the market head in a market is also to discuss with the different category, what is the best way to sell the product. Basically, to be clear, you have a kind of what we call the diamond model. Top to top means high level relationship with every single customer is done in a unified level. Category level, you have the key account level is category specific organization. The key account for pet food is different from coffee and so on. Why? Because the buyer of this category are different. Then you go back to the point of sales. When you go to the point of sales, you then unify different categories together, sometimes even 12 categories together if the market is small and if makes sense. Usually, anyway, we have a sales force in the point of sales that are for three or four categories. It really depends. Retail is different from discounters, out of home is quite different. We have Professional, but also we have water that is a very different sales force in out of home, and so on. In terms of KPI, the market head and the sales force is really sharing a responsibility of sales, but also at the profit and margins level with the category. It's a process in which we really I would say one of the winning elements of making this model working is to have a common KPI. If you have a common KPI, at the end of the day, but clear who is in charge, but you have a common KPI, at the end of the day, you win because you know what you want to achieve in a category, in a market, with a specific sales force. Do we have another question from the floor? Okay, I will follow up with another one, Marco. At last month's Capital Markets Day, you talked about 59% of your business either gaining or maintaining share, which beggars the question, what is happening with the 41%? Can you tell us what learnings from the 59% you can apply to the 41% to improve your position in categories outside those that are growing or maintaining share? First of all, having 60% of the sales in green means that you are growing above the category average. It means that you grow more than your competition. That is, the big guys, very often, the small guys, startup, local and so on, and the private label. It is not bad. Having said that, in reality, if you look, the 60% used to be 40% a couple of years ago, it is 60% now, and if you look at year to date, so in the last six months, you see really an acceleration, and it is amazing to see, for instance, two categories like pet care and nutrition, having 98% of sales in green means that you are winning, not just because of the size, because you win in France and Germany and U.K., but you are winning in every single place in the zone, and that is quite substantial. It means that your proposition, your portfolio, your innovation are really working. Pet food and nutrition, and I say nutrition is quite amazing, the level of gap creation that we are doing. Confectionery and food are not, let us say, marked priority overall in terms of what Nestlé has decided to really put all possible resources of confectionery and food. Now, in the last four months, it is really great to see more than 60% of the sales growing. Coffee is coming back. You know the coffee also, because of the deflation of coffee beans and the coffee Arabica and Robusta, especially when you are in a period of deflation, clearly the roast and ground guys or the people that really discount the price very strongly gain more than guys like us, in which we work at the quite high price. We decide also to control growth and profit because we really didn't want to go only for growth, reducing prices substantially, because we know that coffee price one day will come back. But also coffee we see now is growing month by month. We are seeing more than 50% sales already in green. You know also that we are going to, as I mentioned before, to launch Starbucks, and it is amazing to see the first results of Starbucks in the point of sale. It is a big weapon that we have in our possibilities. If everybody in this room believed the hype, we would all be eating magnificent, magical, awesome burgers forever and nothing else. Could you talk about the potential for plant-based in EMENA and the extent to which, if at all, it would cannibalize your existing business? That is a very good question. You are all experiencing also because it is part of your choice. Everybody wants to have better food, but also better means tastiest but also healthier food. What consumer and what we in our consumer insight is looking for is something different, but while continue to keep eating what you usually eat. Plant protein meat or, let us say, meat lookalike or other kind of product are really growing quite substantially. We saw that, probably people do not know, but the burger and the plant protein stuff started for us in Israel. That was the first market in which we really launch a study in a kibbutz with our company that we have in Israel, and we launched all range of vegetarian and flexitarian products, amazing results, chilled and frozen. We decided a couple of years ago to extend it to Europe. Thanks to the Israel innovating mindset plus the R&D technology and ability that we have, we have invented, let us say, this Incredible Burger, and this is just the first of a series of products that we are starting or we have already introduced in the marketplace. That is something that is creating a big buzz, and so now it is huge. Also, thanks to the fact that big guys of quick service restaurant are really introducing their menu and so on and so on. I would say for us, in addition to this big buzz that we have around this burger, is a long journey to give alternatives to the product. I do not see cannibalization. We are not really in meat business. We are in solution business with our Maggi, Buitoni stuff, and this is complement perfectly, I would say, our current ambient pizza doughs, sauces, food that we have. Within the Nestlé group, the U.K. is quite a large market, and even more so clearly within EMENA. Could you talk about Brexit, if things go wrong there in terms of the exit, how you guys are going to manage that? What impact you may see? As you said, nobody knows what is going to happen in the future. Of course, as a company, we always said since the very beginning that it's a pity, especially, as I told you, having seen the advantage, the benefit of having the European unity, having the free circulation of goods, of people, and having the same regulation, having U.K., one of the biggest businesses I have, in theory, coming out is not good. So I hope, I do hope and advocating Brussels always to find a right agreement to preserve the benefit for U.K. and for Europe. Having said that, we are very embedded in the U.K. So we have our biggest business is pet care, coffee, and confectionery. We have factories over there. We are, of course, importing coffee beans and so on, and cocoa beans, but I would say the majority, we are absolutely self-sufficient. Whatever will happen, we don't really see any disruption in the business, so business will continue. We will see. Luckily, we see that in terms of duties, the first discussion means that in food, that is the biggest exchange between U.K. and Europe. There will not be big impact, or there will be very limited impact on our business. Of course, we need to see what is going to happen to the currencies and so on, because there will be an impact. But I would say U.K. is 3% of sales at the global level, so there will be an impact, but we have lived so many crises and also many issues in our history in different countries. I don't believe that there will be a crisis like we had in other countries, but we can go on, even in a hard exit scenario. We have a bit more time. Is there a question from the floor that anybody would like to ask? We have one down the front here. Good morning. Couple of questions, actually. If I can follow up on the Incredible Burger, could you give us a bit more detail in terms of distribution? I think I'm right in saying that you're in McDonald's across Germany. How much capacity have you got? How much distribution have you already done on that product? Just coming back to the way you've changed the management of the region. Is there any commonality between North Africa and Middle East with the rest of Europe, or does it just happen to be geographically quite close? Very good questions. In terms of Incredible Burger, McDonald's is one of the customer, of course, is McDonald's. We are discussing with them. We are looking at the first results that are quite promising of the launch in Germany. But then, if we do it, if we go ahead, we want to do it right, so we have capacity of course, but we really need to plan it, and we need to do it well. We have also other operators in out of home, so we are working a lot of also in our direct distribution with other operators and channel and communities. Then also in retail. Retail also is a quite important business for us. As you know, also is our strength, historical strength. I would say McDonald's is exciting and big customers, but is not the only option, and we have quite good capacity to cope with eventual extension beyond Germany. On the operating model, Middle East and North Africa, I'll have to say that Middle East, we have been operating with the same model that I'm operating the rest of Europe since years. The fact that Europe is moving to this operating model allow to have Middle East and Europe much closer than what was in the past. I would say Middle East, in terms of portfolio weight, is a little bit different from the rest of Europe, because it's very nutrition, infant nutrition, dairy, milk products, and confectionery, very strong, while Western Europe is more coffee, pet care, and food. But having said that, there is a lot of working together. We have the same brands. The big innovation, if you take HMO, the innovation that we did infant nutrition, we did exactly in the same moment in Middle East and North Africa, Russia, and Germany, France, and so on, and that's also the advantage of working together as a total region. Any more from the floor? Perhaps I could wrap up, Marco, with a margin question. You mentioned at the Capital Markets Day that the numbers 1 and 9 are relevant to the European business, CHF 19 billion of sales at 1.9% organic growth and margins of 19%. If you wrap everything up from a margin perspective, what sort of margin progression do you see in the European business moving forward? I would say I'm very aligned with Mark's journey in the sense that it's true that for both Mark and myself, the first couple of years was more, I would say, extracting value, also improving margins quite substantially. Mark has really announced the 2020 target, and this is exactly aligned. I'm aligned, and the zone is aligned with the journey of Mark. I'm also aligned with Mark and the journey of Mark in terms of balancing growth and profit for the following years. This means that it's likely that we'll come back also to a more continuous improvement in margins while strongly growing or improving the growth rate in the future. This is more what Mark has announced and so on. But we'll see also with Mark. I would say we have quite huge opportunity to extract more value in the zone, but I really want to invest in growth, and so the balance of what we do with the money that we are extracting. Don't worry, I will not stop because I've reached a certain level of margins because it's the target achievements. In terms of tension on cost, on optimization of resources and value extraction will remain, will still be very important. How much we want to invest on growth and how much we are going to improve bottom line is something that, of course, is a question of balancing all the elements, and with Marco, we'll see what is necessary. It really depends, obviously, on the opportunities also that we'll have in the future. Okay. If there are no more questions from the floor, I will leave it there and say thank you very much, Marco, for your time and your insights into Nestlé's EMENA business.