Leading in Pet Care

Patrice Bula EVP, Strategic Business Units, Marketing & Sales

Bernard Meunier CEO, Nestlé Purina Pet Care , Middle East & North Africa

Fernando Merce President, Nestlé Purina Pet Care Latin America and Caribbean

Nestlé Investor Seminar 24 – 25 May, 2016 Disclaimer

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 The Global PetCare Category Expected to Grow at 5.2%

Latam 11.2% CHF 7.5 bn +11.8% EMENA 33.7% North America CHF 22.5 bn 43.0% +3.4% CHF 28.7 bn +3.7% AOA 12.1% CHF 8.0 bn +5.1%

Total CHF 67 bn

3 Source: Euromonitor 2016 edition PetCare Category Expected Growth 2015-20

5.6% 4.0%

11.0%

4.4% 86.1

66.7

2015 NA LATAM EMENA AOA 2020

4 Leading in Pet Care

Bernard Meunier CEO, Nestlé Purina Pet Care Europe, Middle East & North Africa

Nestlé Investor Seminar 24 – 25 May, 2016 The EMENA Market: Key Numbers

Market 14.7 bn in Grocery NPP EMENA Market Share +98bps vs. Last Year 22.5 bn 7.8 bn in Specialist 22.5% (Grocery only)

203m Cats & Dogs

113m 90m Cats 1.5% Dogs 0.6% Last 10 year Last 10 year CAGR CAGR

Source: Nielsen

6 Calorific coverage is still a major growth opportunity

Calorific Coverage %

From 3% in Egypt to 93% in 90 77 79 58 31

France UK

7 Accelerated growth and strong profit improvement

RIG EVOLUTION 9.0

8.0

7.0 TOP

6.0 5.0 +480 bps 4.0

3.0

2.0 (last 10 years)

1.0

0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

8 Operational savings reinvested in our brands and profit

Total Delivered Cost SG&A -30 -15 bps/yr bps/yr

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

Marketing Spend TOP +30 +40 bps/yr bps/yr

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

9 European Share Growth: Leadership now a realistic goal

44 Last period 40

36 Competitor

32 2070bps 30.4

28 430bps

24 26.7

20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16

Total Cat & Dog Food incl Snacks - Europe Grocery: Value % share

10 2015: NPP taking leadership in Western Europe

44

Last 40 period

36

32 2070bps Competitor -80bps 27.7 28

24 26.5

20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16

Total Pet Food incl. Snacks - Western Europe Grocery: Value % share

11 Russia: critical for our European leadership ambition

90 Competitor Last period 80

70 65.9

60

50 7450bps 4640bps 40

30 20 26.9 10

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DJ16 Total Cat & Dog Food incl. Snacks - Russia Grocery: Value % share

12 Portfolio transformation : Key Drivers

Simplification & Portfolio 5 Power Brands Premiumization

~12000 26% 80+ % SKU Count 72% 3.1 OthersOthers 43%

Sales/kg 24% 31% 5500 1.3 4% 2002 2015

Accelerate Defend Fix 2002 2015

13 FELIX has become our largest European brand

24 Competitor 1990 2010 22

20

18 -890bps +380bps

16

14

12

10 2010 2011 2012 2013 2014 2015 WCSS Value MS

Pre 2005 2010 2011 2013 / 2014 2015

Sources: Nielsen GTC, 28 markets, JJ’15 update & Nielsen IDB database

14 A FELIX campaign

15 16 24 May 2016 Nestlé Investor Seminar Portfolio Transformation in Milestones

Today

2000 2001 2003 2008 2010 2012 2016 Focus on Exit of Snacks Accessories

Roll Out Felix Clean up Move from Multi Portfolio Reduction in Eco Dry Serve to Single Exit of and Focus on SP Dry Serve Private Label & Grill Technology

Growth Acceleration OG CAGR 6.4%

3.1% 1.7%

17 Innovations bringing strong incremental value

Innovation-driven Incremental Sales in CHF m

18 Premiumising innovation accelerates value growth

Gourmet – premiumisation within the brand Each innovation builds greater consumer value

Purina ONE – moving consumers towards more premium offers

Branded Activated Pet Appeal Recruitment 2.87/kg Benefit (high Palatability) Program 2015 350 m CHF

1.49/kg

19 Digital acceleration as a competitive advantage

UK Market share Online vs Offline

39.0

37.0

35.0

620 bps 33.0

31.0

29.0

27.0

Competitor.com Competitor offline Purina.com Purina offline

20 Strong Innovation Pipeline Based on Health Benefit Platforms

Challenge Insights Solutions

Pets play strong role with Proprietary ingredient / Almost 50% of pets classified as elderly people with physical active brain protection aging (7yr+). Cognitive functions activity, socialization & blend for enhancing start to diminish. mental functions. pet alertness & Brain Health mental sharpness

% of Over-weight Dogs in UK Pet weight-control Proprietary weight 50% is compromising management program 21% 25% emotional connection. with visible weight loss Obesity 2005 2009 2020

Cat owners can’t ‘see’ an Proprietary NRM Cats are highly sensitive immunity deficit but do witness (functional bacteria) animals. Compromised immune the visible impact via digestive with proven enhanced system can lead to impaired issues immune benefits Immunity quality of life

21 Our Natural Approach: 4 Pillars

Purina Brand Natural cues Natural Customized as a competitive in existing Brands natural foods advantage Portfolio

22 Building trust in Purina through our commitments

We believe that when people and pets bond, life becomes richer.

Our Environment Pet Pet Role Products & Society Wellbeing in Society

Lead the industry Create job Promote pet Champion pets in in pet nutrition and for young people adoption through the workplace via  health research  below 30 years  collaboration and  'Pets at Work' partnerships initiatives Deliver accessible Implement  product information  responsible Help reduce pet & pet care advice sourcing  obesity risk through Promote collaborative  responsible pet Remove artificial Improve environ- prevention ownership via our colours from our mental performance programmes 'Pets at Schools'  products  of our packaging initiatives

23 First BETTER WITH PETS Forum in Brussels

24 We are starting a movement on social networks

#WEAREBETTERWITHPETS

25 26 24 May 2016 Nestlé Investor Seminar 4 Key Takeaways

20 YEARS OF SUCCESS 1 20 Years of profitable growth and continuous market share gains.

NHW COMPANY 2 Purina is a strong contributor to the Nestlé NHW ambition and to the Group’s Premiumisation strategy.

OUR AMBITION 3 is to be the most trusted name in Petcare, become a Market Leader in Grocery and continue to be a strong growth contributor.

FUTURE GROWTH 4 will come from engaging pet owners with health enhancing solutions, underpinned by deeper corporate trust.

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