The Roads Between Us - Fleet Safety Workshop. Andrew Bradley Nestlé Group Risk Services

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1 The Roads Between Us - Fleet Safety Workshop Andrew Bradley Nestlé Group Risk Services

2 Our mission Our objective is to be the recognised leader in Nutrition, Health and Wellness and the industry reference for financial performance 2

3 The Nestlé story 3

4 Nestlé at a glance CHF 83.6 billion in sales in ,000 employees 461 factories 10,000 brands 1 billion Nestlé products sold every day 4

5 Food & Beverage sales in bn USD Nestlé vs our competitors * * according to new Net-Net sales recognition (with the previous reporting policy: Nestlé s F&B sales ~ USD 99bn) 5

6 Nestlé is the world s largest food and beverages company but is still only 1.7% of the market Nestlé 1.7% The 20 largest food companies account for less than 9% of the world market 6

7 Sales by Region Total Food & Beverages Sales* in 2011 (in billion CHF) Americas 37.4 bn Europe 26.2 bn Asia, Oceania, Africa 20.0 bn * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc and JVs 7

8 Safe Driving Some facts Numerous fatal accidents related to motor accidents Motor Vehicle Fleet +45'000 Development of Direct Delivery Opportunity to reduce accidents and cost 8

9 Safe Driving Programme 10 point checklist Policy, objectives and Targets (KPI) Risk assessment Legal compliance and other requirements Communication Mobility and journey management Driver recruitment, selection, induction and training Driver management, driver work instructions and contract driver procedures Driver health and wellness Vehicle and wellness Vehicle selection, management, use and Eco Driving Specific risk 9

10 Safe Driving Recent Developments Decade of action for Road Safety Global Road Safety Partnership Safar Bakhair in Pakistan VRM in Mexico Telematics benchmarking conference calls CARE Project AOA (Contractors) DHL joint-initiative in CWAR 10

11 Nestlé has signed the Global Road Safety Commitment A public commitment to... Continuously improve our management of occupational road safety...towards a common goal of zero injury Positively influence performance of contractors, customers, suppliers and other stakeholders Collect data about road traffic safety performance and use this to set goals and targets Identify and share lessons from crashes and injuries and implement changes Share information about our road traffic safety management system and our road traffic safety performance 11

12 New Technology - Telematics SAFETY: Harsh braking Harsh acceleration Harsh turning Speeding Seatbelt usage (vehicle dependent) ECO: % of time idling Over revving (> 3,500 rpm) COMBINED: Aggressive driving per mile/kilometer driven 12

13 Mexican Case Study Creating a crash free culture VRM Statistics Defensive Driving Courses Maintenance Program One to One Process 13

14 Mexican Case Study 14

15 Mexican Case Study Golden Rules We are about to implement these 7 golden rules. 1. Use of the seat belt 2. Do not drive while UDI of alcohol or drugs 3. Don t use your cell phone wile drving 4. Report all accidents and incidents that happen to you 5. Check regularily your vehicles condition and avoid using it in case it is not in good conditions 6. Do not go over the speed limits indicated in the roads 7. Be aware when driving, always with both hands in the steering wheel and do not drive tired 15

16 Mexican Case Study Vehicle Selection Nissan (Tsuru) GM (Aveo) Security: N/A 4 Cilinders 105 HP Co2 emissions: 140 g/km Air bags. ABS Made in Mexico. Security 4 Cilinders 103 hp Co2 emissions: 140 g/km Air bags ABS Made in Mexico. 16

17 Mexican Case Study - Injuries 2010 vs 2011 Zurich 2010 GNP 2011 Comparative September Zurich Vs GNP November December Diferences November December Diferences Number % Month # Injured # Injured # of Injured # Injured accidents passengers accidents passengers accidents passengers accidents passengers # accidents Injured # Injured # Injured # Injured passengers (1) accidents passengers accidents passengers accidents passengers Enero % 0% % -27% % % Febrero % 0% % -57% % % Marzo % 0% % -25% % % Abril % 0% % -45% % % Mayo % 0% % -71% % % Junio % 0% % -38% % % Julio % 0% % -65% % 16.67% Agosto % 0% % -64% % % Septiembre % 0% % -62% % % Octubre % 0% % 33% % 0.00% Noviembre % 0% % 0% % % Diciembre NA NA NA NA % % Total global , % 8% % -43% % % We achieved a reduction of -48% against last year Zurich 2010 GNP Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic Total

18 Mexican Case Study - Accidents global With the VRM program implementation our numbers improving. -18-

19 Achievements during 2011 Mexican Case Study - Accidents global 19

20 Mexican Case Study Key success factors Strong Management Commitment Communication plan Drivers buy-in Proactive follow-up 20

21 The future for Nestlé Replicate Mexico success Audit implementation of 10 point plan Further implementation of telematics Expansion to contractors and employee families Africa Global Road Safety Partnership Benchmarking 21

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