Nis 06 C. Kuehne

NestléInvestor Seminar

Health, Nutrition and Wellness at Nestlé

ChristianeKuehne Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 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 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Our vision

"We want to grow from the respected and trustworthy food company that we are known as now, into a respected and trustworthy food, nutrition and wellness company"*

*Peter Brabeck-Letmathe Blue Printfor the Future, October2001

3 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Building on our heritage

1867: Henri Nestlé creates"Farine Lactée" for infants, elderlyand infirms

4 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nestlé's approach to Nutrition, Health & Wellness

Drive the Nutrition, Health & Strengthen our leadership Wellness orientation across position in the core nutrition the Company business

CorporateWellnessUnit NestléNutrition Company

5 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Whatthe CorporateWellnessUnit does. . .

• The mission: Drive the Nutrition, Health& Wellnessorientation acrossNestléto deliversustainableprofitable growth.

• The strategy: Persuade consumersto preferourbrands by addinga superiorNutrition, Health& Wellnessdimension to our Food & Beveragebusiness

• Wellness in Action is about: Accelerating the speed at which our vision and strategy transform into trust & value in the minds and hearts of consumers

• Outcome: A higherpropotionof Group sales in added-value, fastergrowing, more profitable segments

6 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Roadmap

7 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Consumer

8 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Most consumers see a strong link between food and their health

Overall USA UK Sweden Spain Holland Italy Germany France 0 10 20 30 40 50 60 70 80 90 100

DatamonitorConsumer Survey, October 2004

IMPORTANT VERY IMPORTANT

9 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition increasingly influencing consumer choice

Relative importance of motivation for main meal choice in US/Europe

Complements other food Indulgence Energy Boredom, stress Taste % Quick, easy Hunger Using up ingredients Healthy, nutritious 0 10 20 30 40 50 60 70 80 90 100

DatamonitorConsumer and Industry Opinion Surveys, 2004

10 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+

11 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+

60/40+ our strategic transformation tool

To increase the To communicate the nutritional value of our taste and nutritional products but not at the advantage of our expense of taste products

12 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Whichmeans…

Weneedto know the product"truth" –the consumer preference –the nutritionalvalue of ourproduct –ournutritionalcompetitiveadvantage

60/40+ is the X-ray of our products

13 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman It isalsoa powerfulBusiness tool

Consumer Communication

Innovation / Renovation

60/40 Taste Nutritional Assessment Assessment

Nutrition Profiles

Consumer Insights

DrivingGrowth, MarketShareand EBITA

14 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 25% of our Food & Beverage business ...

... goes through 60/40+ testing per year

15 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Dairy China NestléHigh Calcium High Iron

16 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Dairy China NestléHigh Calcium High Iron

"I want to keep my body feeling young, Insight and for this I need strong bones!"

60/40 Consumer 66/34 taste preference Preference

Nutritional Good Nutritional Nutritional Competitive Advantage: Calci-N for Assessment Foundation bone health

Communication "With strong bones, you can face any challenge" TV Commercial

Improvedprofitability+410 bps, Business turnaroundfromdecline Results to +4% MS in 10 months

17 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Ice Cream Canada Real Dairy

18 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Ice Cream Canada Real Dairy

"I want to be able to indulge myself and my family, while still feeling Insight like a good Mum"

60/40 Consumer 68/32 taste preference Preference

Nutritional Good Nutritional Foundation Assessment

Ownership of consumer nutritional expectation through the Brand: Communication Real Dairy

NestléReal Dairytookleadership fromBreyerswithin2 yearsand Results playeda key role in the "Good For You" business

19 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Ice Cream Canada Real Dairy Becoming Number One!

Breyers 30 Reformulation

10 Launch Nestlé Real Dairy 5

0 3 3 4 5 5 3 3 3 0 4 4 4 0 4 4 4 5 5 5 5 0 6 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 2 0 0 0 0 0 0 0 0 2 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 9 4 9 4 9 4 0 5 0 4 0 5 9 6 1 6 1 6 1 8 1 1 0 0 2 2 2 1 1 0 3 2 1 1 1 0 0 2 2 1 r t v r y t t c r t v r p e g c o n a y l p c e b p e g c o n a n u O Ja a u e O e n u O Ja A Ju A N M M J S D F A Ju A N M

BNF NRD

ACNielsen Marketrack, period ending March 18,2006, $Share of Premium I/C 20 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Ice Cream Canada Real Dairy Real Dairy Vanilla is the flagship for a "Good For You" range

With Omega 3 No sugar added 97% fat free 98% fat free Made with real fruit

21 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Maggi France Sveltesse

22 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Maggi France Sveltesse

" I know I shouldeat5 fruits and vegetablesa day, Insight but it'snot easy... "

60/40 Consumer Parityvs. regularsoup(withfat) Preference

Nutritional Good Nutritional Nutritional Competitive Advantage: fibers Assessment Foundation

Great Quick and easyvegetableson the go. Communication TV Commercial

Results RIG +15%, MS + 0.8%

23 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Maggi France Sveltesse

PrintAd

24 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Products

25 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nestlépolicies

• NestléPolicy on the Level of trans Fatty Acids in Foods

• NestléPolicy on the level of Sodium (Salt) in Foods

• NestléPolicy on the level of Sugar in Foods

• NestléPolicy on the Iron Fortification of Foods

• NestléPolicy on Nutrient Fortification

26 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Health & Nutrition strategy in action

Consumer Insights

R+D Framework Renovation Nutrition targets +Policies Innovation Ì +60/40+ profile +Communicatio n Nutrition Insights

Obesity • Reduce sugar by concern New Milo 15% Reduce sugar to • New malt extraction meet Nutrition • Increase complex Ì criteria carbohydrate • Same taste Sugar • Same costs Concern

27 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Health & Nutrition strategy in action

Children’s Health & Nutrition Solutions

NIDO Nurturing

AGE SPECIFIC

"Right Taste, Right Price, ALL AGES Right Nutrition"

Full Cream Affordability "All in One Growth"

28 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Optimisingnutritional profiles

REDUCING SUGAR INCREASING CALCIUM

REDUCING FAT INCREASING FIBER

REDUCING SALT

29 29 NesttlléInvestor Seminar -VeveeyyJune 8-9, 2006 Name of chairman Optimising nutritional profiles

30 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Optimising nutritional profiles - Reducing

22% reductionin 5 years.Todaycovers43 differentrecipes

Level of sodium in soups per 100 ml Level of sodium in soups per 100 ml 2000 2005

700 700

600 600

500 500 g g

m 400 400 m

m m u u 300 i 300 i d d o o S S 200 200

100 100

0 0 0 2 4 6 0 2 4 6 8 0 2 2 1 3 5 7 8 0 2 4 6 8 9 1 3 5 7 9 1 3 1 3 4 5 6 7 8 9 9 1 3 5 7 1 1 1 1 3 3 3 3 3 4 4 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 4 4 123456789101112131415161718192021222324252627282930 1 2 2 2 2

31 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Optimising nutritional profiles - Increasing

32 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Adding Health Benefits

Vitality / Protection Immunity & Protection Heart Health Long-Lasting Energy

BrandedActive Benefitsaccountedfor sales R

Intestinal Health Groofwth &CHFBu 2ildi.n9g StBrongioer in Easy2005 Helps Energy Development Bones Digestion Release

Active Cholesterol Long Lasting Feeling Good, "Refuelling" Helps Keep Calcium Control Alertness & It Shows Growth in your Bones

33 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Branded Active Benefits (BAB)

BABsare registered trademarks related to specific health benefits whose purpose is to add value to existing Nestléproducts: Making a good Nestlébrand even better

They are always science-based

34 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Success Story: Powdered Beverages Philippines

Innovations to reinforce Milo as " King of Energy" have helped fuel growth in the last 5 years

1999 2002

35 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Increased growth, market share and EBITA

% MktShare 78 78 77

75 EBITA doubledin 3 Years

2001 2002 2003 2004 2005 36 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Brands & Communication

37 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Our Communication Platform Principle

Encourage and Empower consumers to make informed choices about their diet and enjoy a more balanced life

38 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

39 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

Food

40 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

Svelty-Chile

41 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

LEAN CUISINE -Canada

42 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

MILO -Japan

43 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

NESCAFE -FoodServices

44 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

Maggi-Malaysia

PrintAd

45 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman 60/40+ Giving transparent information: the NutritionalCompass

Objective 80% of sales to have the Compass by end 2006

46 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Others Say ...

JPMorgan

"A number of large companies already show detailed nutrition labels on their products on a systematic basis.

Going one step beyond, in our view, is Nestlé, which has redesigned its nutrition labels in a more user friendly and easier to read fashion while identifying the benefits of certain ingredients and nutrients.

We believe this certainly is the way forward for the industry."

Obesity -Reshaping the Food industry January 2006 47 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition Communication - NestléAustralia

NestléAll Natural Yogurt

TV Commercial

48 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition Communication - NestléAustralia

Excellent performance in all key areas

• Spontaneous Awareness Nestlé 7%

• Awareness as healthy nutritious food company

6% 15% • Overall weighted WELLNESS score

23% 27% • Increased Prompted awareness of “Good Food Good Life”

……………………….in just 6 months

Sales increase in all products!

49 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition Communication - NestléPhilippines

NestléNIDO

TV Commercial

50 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Talking nutrition with our customers everyday

2005: 10 million incomingcalls to ourConsumer Services

51 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition, health & wellness at point of sale

Mexico

Philippines

52 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nutrition at point of sale

Mexico

53 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Science

54 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman NestléNutrition Council

The NestléNutrition Council was founded in 1978 and is currently composed of 10 internationally-renowned scientists working in the field of nutrition

Prof. Dominique BELLI Hôpitaldes Enfants, Geneva, Switzerland Prof. Bruce BISTRIAN Harvard Medical School, Boston, USA Prof. Günter BLOBEL* The Rockefeller University, New York, USA Prof. Michael GIBNEY Trinity College, Dublin, Ireland Prof. Eric JÉQUIER NestléFoundation, Lausanne, Switzerland Prof. Robert KROES Soest, The Netherlands Prof. DemetreLABADARIOS University of Stellenbosch, South Africa Prof. Tadashi NOGUCHI Chubu University, Kasugai, Japan Prof. Irwin ROSENBERG Tufts University, Boston, USA Prof. Bruno VELLAS Universityof Toulouse, France

*Professor Blobel, winner of the 1999 Nobel Prize in Physiology or Medicine, is a member of the NestléBoard of Directors

55 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman NestléNutrition Council

The main objectives of the NestléNutrition Council is to:

• Review current and developing nutritional issues related to Nestlé's business and to determine what impact they would have on the Company's nutrition policies and its strategy Including: obesity (1995), diabetes (1997), childhood obesity (1998), PersonalisingFoods for health (2003)

• Provide relevant information and continuous advice concerning Nestlé's Corporate position on nutrition

56 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Nestlé bringing together Science, Nutrition and the consumer

3500 people in R&D 1.6% of turnover spend on R&D The external NRC scientific Network-2005

262 Scientificpublications

103 contractswithuniversities

International Nutrition Symposium '04, '05 & '06

Venture funds 57 Nestlé Investor Seminar - Vevey June 8-9, 2006 Name of chairman Health Benefit areas

Health and Performance Beauty

Weight Healthy Aging Control Nestlé Research Center