Slides for presentation to CAGE conference 20 March 2013 by Nestlé CEO Paul Bulcke

1. Nestlé S.A.

2. 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.

3. Paul Bulcke
Chief Executive
Nestlé S.A.

4. The last few years
Agenda The New Reality
Strategic direction
Opportunities to drive performance
3 March 20th, 2013 CAGE Conference, London

5. The last few years
Agenda The New Reality
Strategic direction
Opportunities to drive performance
4 March 20th, 2013 CAGE Conference, London

6. Our ambition The world’s leading nutrition,
health and wellness company
A reference for financial
performance
Trusted by all stakeholders
5 March 20th, 2013 CAGE Conference, London

7. Enhancing the quality of life…
Our promise … with good food and beverages … with personalised nutrition
… everywhere… for medical conditions
has guided
our strategy
6 March 20th, 2013 CAGE Conference, London

8. Our Roadmap
has guided
our execution
7 March 20th, 2013 CAGE Conference, London

9. Research &
Development
Platforms for
future growth
across the value
chain
8 March 20th, 2013 CAGE Conference, London

10. Customised
Innovation has
gone beyond
products and
driven performance
Standardised
Products Systems Services
9 March 20th, 2013 CAGE Conference, London

11. Agility Lean
Enterprise
NCE
 GLOBE leverages scale
 NCE drives agility
Nestlé
Continuous
Excellence GLOBE Scale
A great enabler  Mind-set change & empowering at all levels
 Over CHF1.5bn efficiencies per year
 Enables growth – frees up time for customers & consumers
10 March 20th, 2013 CAGE Conference, London

12. Emerging Markets
2001 2012
An evolving
business % of Group Sales: from 30% to 43%
Growth drivers
Popularly Positioned
Products 2x Group OG
11 March 20th, 2013 CAGE Conference, London

13. Premium enhancing
Group’s OG
An evolving
business
8%+
Growth drivers
6.3%
OOH driving
5%+
growth
3.2%
Global Nestlé FS NP
OOH Professional Beverages Beverages
Industry Industry
12 March 20th, 2013 CAGE Conference, London

14. An evolving
business
New channels,
innovative
distribution and
routes to market
13 March 20th, 2013 CAGE Conference, London

15. Core HealthCare Nutrition
 Strong brands; HCP-driven
Vitaflo
Pioneering science-  Genetic
Vital Foods
metabolic
based personalised disorders  Kiwi fruit-based
solutions for GI
nutritional solutions conditions
for specific medical Accera
 Neurodegenerative Prometheus
conditions disorders
(e.g. Alzheimer’s
 Diagnostics and in-licensed Pharma
products in GI and oncology
Disease)
14 March 20th, 2013 CAGE Conference, London

16. Acquisitions:
building positions
and capabilities in
attractive categories
15 March 20th, 2013 CAGE Conference, London

17. The last few years
Agenda The New Reality
Strategic direction
Opportunities to drive performance
16 March 20th, 2013 CAGE Conference, London

18. The New
Reality
Many challenges
and risks
17 March 20th, 2013 CAGE Conference, London

19. The New
Reality
Many opportunities
18 March 20th, 2013 CAGE Conference, London

20. The last few years
Agenda The New Reality
Strategic direction
Opportunities to drive performance
19 March 20th, 2013 CAGE Conference, London

21. Our Strategic
Roadmap remains
valid
20 March 20th, 2013 CAGE Conference, London

22. Enhancing the quality of life…
Our NHW
… with good food … with personalised
promise remains and beverages nutrition for medical
valid … everywhere… conditions
21 March 20th, 2013 CAGE Conference, London

23. Grasp
Make choices
opportunities
Engage with the
Value what
Fit to win consumers value
community
and stakeholders
in The New
Reality Embrace digital Have the
best people
And ...
... expand the boundaries of nutrition
22 March 20th, 2013 CAGE Conference, London

24. Organic
Growth
Make
choices
Drive value creation
ROIC
23 March 20th, 2013 CAGE Conference, London

25. Products
Grasp
opportunities Information
Enhance our NHW
agenda
Services
24 March 20th, 2013 CAGE Conference, London

26. 2
Premiumisation Systems Healthy ageing
Grasp
opportunities
Focus on PPP E-commerce & new channels OOH
different
innovation and
growth platforms
NHW
25 March 20th, 2013 CAGE Conference, London

27. Grasp 1. Multi-market
2. Speed
opportunities 3. Simplicity
Faster and bigger Juicy chicken NESCAFÉ Peel-able
Dolce Gusto ice cream stick
roll-out of
successful
In 56 markets In 62 markets In 25 markets
launches
26 March 20th, 2013 CAGE Conference, London

28. Embrace
simplicity
Continue the
Nestlé Continuous
Excellence journey
27 March 20th, 2013 CAGE Conference, London

29.  Elevate simplicity mindset
 Expand from 150,000 to 330,000 people
 Constant fight against waste
Embrace
simplicity
Continue the
Nestlé Continuous
Excellence journey ...improving …thinking and …making a
everyday acting difference
cross-functional
We live by… and for… consumers
28 March 20th, 2013 CAGE Conference, London

30. Rural
Development
Nestlé in
Society Water
Value creation for
society is key to
our long-term
Nutrition
success
29 March 20th, 2013 CAGE Conference, London

31. Nutrition Water
Nestlé in
Society Rural Development
Our CSV
Commitments Environmental
Human Rights
Sustainability
30 March 20th, 2013 CAGE Conference, London

32. Key Opinion Leaders’ impressions are improving,
esp. amongst NGOs
Value for
Society
Key to our
long-term success
Source: Initial Globescan research 2012
31 March 20th, 2013 CAGE Conference, London

33. Trust in
Society
32 March 20th, 2013 CAGE Conference, London

34. Digital
engagement
33 March 20th, 2013 CAGE Conference, London

35. Spain Germany
SPECIAL.T Caja Roja Marktplatz
Online only sales channel Personalised confectionary International & iconic full
for premium tea gifting boxes Nestlé range offered online
Leverage
digital
for new
business
models
34 March 20th, 2013 CAGE Conference, London

36. Our people &
our culture
Longer-term focus;
shorter-term performance
Alignment across 339,000
people
35 March 20th, 2013 CAGE Conference, London

37. The last few years
Agenda The New Reality
Strategic direction
Opportunities to drive performance
36 March 20th, 2013 CAGE Conference, London

38.  Long-term approach
(products, markets, capacity and capability building)
 Decentralised markets creating strong local consumer
engagement – but aligned
Worked well
 Building capabilities
in the past & (GLOBE, NCE, R&D, PPP, premium, channels)
drivers of  Superior presence & performance in
performance emerging and developed markets
today &  Staying focused on the vision
tomorrow
 M&A to pursue leadership in attractive categories
and build capabilities
37 March 20th, 2013 CAGE Conference, London

39.  NHW value creation opportunity
 Expanding the boundaries of NHW
 Capital efficiency and cash conversion
Further
 Value dilutive businesses
performance
opportunities  Simplicity throughout the organisation
 Transfer of know-how to markets
Entrepreneurship - Intensity - Execution
Profitable growth - Scale leverage - Reinvestment
38 March 20th, 2013 CAGE Conference, London

40. Enhancing the
quality of life
39 March 20th, 2013 CAGE Conference, London