Welcome to the 9 Month Sales Press Conference 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. 9 Month Sales Press Conference Paul Bulcke Nestlé CEO 9 Month Sales Press Conference Paul Bulcke Nestlé CEO Wan Ling Martello Nandu Nandkishore Roland Decorvet Jonathan Dong 4 18 October, 2012 9 Month Sales Press Conference Our promise We enhance lives by offering tastier and healthier food as world and beverage choices leader in at all stages of life and Nutrition, at any time of the day, Health & helping consumers care for Wellness themselves and their families. 5 18 October, 2012 9 Month Sales Press Conference • Founded in Switzerland over 145 years ago Nestlé • CHF 83.6 billion turnover in 2011 • 330,000 employees in over 150 countries Facts and figures • 461 factories in 83 countries • Over 4,000 brands • Over 1 billion Nestlé products sold per day 6 18 October, 2012 9 Month Sales Press Conference Present in 7 different product categories • Nutrition • Milk products and Ice Cream • Powdered and Liquid Beverages Nestlé • Prepared dishes and cooking aids • Confectionery Facts and figures • Water • PetCare 7 18 October, 2012 9 Month Sales Press Conference 9 Month Sales Press Conference Wan Ling Martello Chief Financial Officer • Sales up 11% to CHF 67.6 billion • Organic growth: +6.1% 9 Months • Pricing +3.2%; +2.9% RIG highlights • Continued growth in developed as well as emerging markets • Outlook confirmed: 5% to 6% organic growth, together with an improvement in margins and earnings per share in constant currencies 9 18 October, 2012 9 Month Sales Press Conference • Growth in Europe & Americas: notable in view of economic environment - RIG accelerated in both • AOA double digit in volatile environment 10.8 Regional 7.5 performance 6.1 2.5 1.5 1.1 % OG % RIG Europe Americas AOA Sales* 19.0 30.0 18.6 CHF bn * Each region includes Zones, Nestlé Waters, Nestlé Nutrition, Nestlé Professional, Nespresso, NHSc, and JVs 10 18 October, 2012 9 Month Sales Press Conference % OG % RIG 9.4 8.9 Operating 6.3 6.6 6.3 5.5 5.8 segments – 4.0 2.4 Growth across 1.9 the board 0.5 0.4 Zone Zone Zone Nestlé Nestlé Other Europe Americas AOA Waters Nutrition Sales 11.2 20.9 14.0 5.6 5.8 10.1 CHF bn rounded 11 18 October, 2012 9 Month Sales Press Conference % OG % RIG 9.5 Product 7.8 6.4 categories – 5.7 4.7 4.3 Growth across 2.7 the board 1.3 1.0 -0.9 Powdered & Milk Products Prepared Dishes Confectionery PetCare Liquid Beverages & Ice Cream & Cooking Aids Sales 14.4 14.1 10.4 7.2 7.9 CHF bn rounded 12 18 October, 2012 9 Month Sales Press Conference Brands: building enduring franchises 13 18 October, 2012 9 Month Sales Press Conference Purina • High single-digit growth • Deepening penetration in emerging markets 14 18 October, 2012 9 Month Sales Press Conference Maggi • Over 100 million servings sold per day in Central & West Africa alone • Innovations driving growth in Europe 15 18 October, 2012 9 Month Sales Press Conference Kit Kat • Over 75 years since launch • Growing at high single-digit 16 18 October, 2012 9 Month Sales Press Conference Nido • Launched successfully into liquid in Brazil • The brand growing at high single- digit internationally 17 18 October, 2012 9 Month Sales Press Conference Nespresso • Double-digit growth • Two new machine designs and three special edition coffees launched 18 18 October, 2012 9 Month Sales Press Conference Drumstick • Including all brands, 50 Nestlé cones per second consumed worldwide 19 18 October, 2012 9 Month Sales Press Conference NAN • Double-digit growth • Broadening the portfolio with innovative anti-colic and hypo-allergenic formulas 20 18 October, 2012 9 Month Sales Press Conference S. Pellegrino & Perrier • Strong growth in N. America and Europe • Worldwide growth accelerating 21 18 October, 2012 9 Month Sales Press Conference NESCAFÉ • Established in 1938 • Present in over 150 markets • Growing in the high single-digits 22 18 October, 2012 9 Month Sales Press Conference 23 18 October, 2012 9 Month Sales Press Conference We are well positioned 2012 to deliver the Nestlé Model of organic growth of 5% to 6%, outlook improved margin and confirmed underlying earnings per share in constant currencies 24 18 October, 2012 9 Month Sales Press Conference 9 Month Sales Press Conference Paul Bulcke Nestlé CEO The New Reality 26 18 October, 2012 9 Month Sales Press Conference Competitive advantages The Nestlé Roadmap Operational Growth pillars drivers 27 18 October, 2012 9 Month Sales Press Conference The Netherlands Canada 1882 Russia 1980 U.K. Germa 1994 1897 ny Switzerland1908 1866 S. Korea USA 1979 1900 Italy Turkey 1913 1909 China Japan Morocco Pakistan 1908 1913 1927 1979 Long-standing Egypt KSA Mexico 1980 1962 India 1930 1912 Panama 1937 Thailand Philippines relationships 1924 1911 Venezuela Ghana Colombia 1957 1957 1944 Malaysia with Singapore Indonesia 1912 1919 Brazil Peru 1921 Angola consumers 1940 1972 Zimbabwe 1959 Australia 1908 Chile 1934 South Africa Argentina 1916 1930 New Zealand 1913 28 18 October, 2012 9 Month Sales Press Conference 29 18 October, 2012 9 Month Sales Press Conference A wide choice of products with trusted brands 30 18 October, 2012 9 Month Sales Press Conference A worldwide presence Illustrative 31 18 October, 2012 9 Month Sales Press Conference A manufacturing network close to the consumer 32 18 October, 2012 9 Month Sales Press Conference China (Beijing) China (Shanghai) India Supported by China (Xiamen) Mexico China (Dongguan) a strong Côte d’Ivoire R&D network Singapore in growth markets Chile 33 18 October, 2012 9 Month Sales Press Conference Bringing the best of Nestlé... whenever, wherever, however Open markets Small stores Modern trade Urban areas 34 18 October, 2012 9 Month Sales Press Conference Creating Shared Creating Shared Value Rural Nutrition Water Development Value for the Nutrition | Water | Rural Development communities Sustainability where we Protect the future operate Compliance Laws, business principles, codes of conduct 35 18 October, 2012 9 Month Sales Press Conference Building a successful future 36 18 October, 2012 9 Month Sales Press Conference 9 Month Sales Press Conference Nandu Nandkishore Executive Vice President Zone AOA Europe 19.0 bn (28.2%) Nestlé Americas Asia, Oceania, Africa around 30.0 bn 18.6 bn the world (44.4%) (27.4%) Turnover in CHF Jan – Sept 2012 38 18 October, 2012 9 Month Sales Press Conference Size and diversity of AOA 3 continents 18 markets / 116 countries* 143 factories** 15 time zones Innumerable languages 76% of world’s population All major religions Variety of cuisines / tastes *Source: UN Statistical Division **143 Active incl (+ 3 satellite factories) NN, NP, NPP, CPW; 27 NW; 8 Under About 45% of world GDP*** Construction ***Source: IMF 39 18 October, 2012 9 Month Sales Press Conference Percentage of world GDP (last 1000 years) 100% 90% All other countries 22% 80% Latin China and 70% America 8% India were 60% USA 22% the world’s 50% 40% Western largest Europe 23% economies… 30% 20% Japan 8% Africa 3% 10% India 2% China 11% 0% 1000 1500 1600 1700 1820 1870 1900 1950 1980 2012 Sources: Angus Maddison (1000-1950), IMF (1980-2012) 40 18 October, 2012 9 Month Sales Press Conference 2000 2010 2020 2030 2040 2050 USA China Japan India Germany USA Top 10 UK Indonesia economies France Nigeria by 2050: China Brazil 6 countries from AOA Italy Russia Canada Japan Spain Philippines Brazil UK Source: IMF, citigroup 41 18 October, 2012 9 Month Sales Press Conference Percentage of population residing in urban areas 73 70.7 70.9 71.7 67.2 62.4 61.7 64.4 57.8 51.6 50.5 57.7 44.4 Over half of 50.1 population 43.2 World 39.2 in Asia will be 29.4 Asia Oceania urbanised 17.5 by 2020 Africa and in Africa 14.4 by 2035 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Sources: United Nations, Department of Economic and Social Affairs, Population Division 42 18 October, 2012 9 Month Sales Press Conference The “Big 5” in the Hot Zone: Investing & leading the trends China South Asia ASEAN Africa Middle East • Local players • Aggressive competition • Aggressive competition • People • Political instability • Food safety focus • Local sourcing • Competition for talent • Resources • Securing supplies • Invest in people & capacity • Build distribution • PPP opportunity • Local raw / Packaging • Multi-tier offer • Innovation / Renovation • Innovation / Renovation • AFTA trade opportunity Accelerate PPP & CSV Defend and build brands Invest ahead of demand Build distribution OOH Price point management Premiumisation People NHW External growth 43 18 October, 2012 9 Month Sales Press Conference Competitive advantages The Nestlé Roadmap Operational Growth pillars drivers 44 18 October, 2012 9 Month Sales Press Conference Unmatched geographic presence Nestlé in AOA Established presence and rich in history Note : Dates based on Registration of Local Nestlé Office and not registration of Nestlé Brand trademark/ Distributor partnerships. 45 18 October, 2012 9 Month Sales Press Conference Emerging Nutrition, markets and Health and Popularly Wellness Positioned Products