Nestlé Ed Marra

1 Nestlé Investor SeminarSeminar: Ed Marra This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

2 Nestlé Investor Seminar: Ed Marra About Canada

ECONOMIC OUTLOOK

• Economy growth outpacing the U.S. at 4.3% • Food is the #2 industry in Canada • An exporting nation with $63 bio trade surplus • Retail trade is growing

3 Nestlé Investor Seminar: Ed Marra Nestlé in Canada

Montréal Toronto NESTLÉ CANADA INC. Mississauga Guelph Home Office: Toronto, Ontario 2001 Sales: 1,628 CAD Mio Employees: 3,500 Facilities: 20 Products sold in 60 countries

4 Nestlé Investor Seminar: Ed Marra Canadian retail landscape Retail trade growing at 5% Foodservice growing at 4%

Source: ACNielsen Source: NPD Crest

5 Nestlé Investor Seminar: Ed Marra Nestlé Canada is outpacing Kraft and Unilever

Retail/Food industry +5%

Nestlé Canada +15% Kraft +3% Unilever +1%

ACNielsen Q2 2002

6 Nestlé Investor Seminar: Ed Marra Nestlé Canada 2001 sales 16% FOODSERVICE COFFEE 27% 9%

BEVERAGE 4% 6%

NUTRITION CULINARY 6% 7% PET CARE 6% 19%

7 Nestlé Investor Seminar: Ed Marra Key brands

8 Nestlé Investor Seminar: Ed Marra Market share strength • We are #1 or #2 in 11 of our 14 categories • Year to date, we have grown share and volume in 8 of our 10 pillar brands

* ACNielsen, 4 weeks ending August 10, 2002 9 Nestlé Investor Seminar: Ed Marra 10 Nestlé Investor Seminar: Ed Marra 11 Nestlé Investor Seminar: Ed Marra 12 Nestlé Investor Seminar: Ed Marra 13 Nestlé Investor Seminar: Ed Marra 14 Nestlé Investor Seminar: Ed Marra 15 Nestlé Investor Seminar: Ed Marra The 2002 plan for success

• The leading food and beverage company in Canada - Growth and profitability - Customer assessments

16 Nestlé Investor Seminar: Ed Marra RIG trend 6.0% 5.5% 5.0% 4.9% 4.6% 4.0% 3.8% 3.0% 2.0% 1.0% 0.0%

-1.0% -1.1% -2.0% 1998 1999 2000 2001 2002 Target 17 Nestlé Investor Seminar: Ed Marra Strategy and key objectives

• Pillar brands focus • Customer service (order fill) 99% • Innovation/new products • Create demand • Low cost efficient operator

Customer responsiveness

Improved profit and performance

18 Nestlé Investor Seminar: Ed Marra Pillar brand performance - growth vs category

5% KIT KAT 6% 5% 27% 26% TURTLES 26%

NESCAFÉ

STOUFFER'S

LEAN CUISINE

POWERBAR

HÄAGEN-DAZS Market Growth DRUMSTICK Nestlé Growth

GOODSTART

ACNielsen YTD August 10, 2002 19 Nestlé Investor Seminar: Ed Marra Pillar brand performance - growth vs category

KIT KAT

AERO

TURTLES

-7% 3%

STOUFFER'S

LEAN CUISINE

POWERBAR

HÄAGEN-DAZS Market Growth DRUMSTICK Nestlé Growth

GOODSTART

ACNielsen YTD August 10, 2002 20 Nestlé Investor Seminar: Ed Marra Pillar brand performance - growth vs category

KIT KAT

AERO

TURTLES

NESCAFÉ

3% STOUFFER'S 13% 3% LEAN CUISINE 8%

POWERBAR

HÄAGEN-DAZS

DRUMSTICK Market Growth

GOODSTART Nestlé Growth

ACNielsen YTD August 10, 2002 21 Nestlé Investor Seminar: Ed Marra LEAN CUISINE Café Classics lineup

22 Nestlé Investor Seminar: Ed Marra Pillar brand performance - growth vs category

KIT KAT

AERO

TURTLES

NESCAFÉ

STOUFFER'S

LEAN CUISINE

19% POWERBAR 18%

HÄAGEN-DAZS

DRUMSTICK Market Growth

GOODSTART Nestlé Growth

23 Nestlé Investor Seminar: Ed Marra The POWER CENTRE

24 Nestlé Investor Seminar: Ed Marra Pillar brand performance - growth vs category

KIT KAT

AERO

TURTLES

NESCAFÉ

STOUFFER'S Market Growth LEAN CUISINE Nestlé Growth

POWERBAR

6% HÄAGEN-DAZS 25% 7% 38% DRUMSTICK

GOODSTART -1% 13%

ACNielsen YTD August 10, 2002 25 Nestlé Investor Seminar: Ed Marra Leveraging confectionery brands

26 Nestlé Investor Seminar: Ed Marra Innovation

27 Nestlé Investor Seminar: Ed Marra Customer responsiveness

• Advantage Survey results -- dramatic improvements in one year • Loblaws preferred -- ice cream and coffee • Tim Hortons soup • Swiss Chalet and HÄAGEN-DAZS

28 Nestlé Investor Seminar: Ed Marra KPIs to measure strategy and key objectives RIG Market share EBITA

Accelerating growth and profitability to be the leading food and beverage company in Canada 29 Nestlé Investor Seminar: Ed Marra Nestlé Canada

30 Nestlé Investor SeminarSeminar: Ed Marra