Christophe Cornu, Chief Commercial Officer, Nestlé Nespresso S.A., presentation on 'Nespresso VertuoLine - a game changer ambition' at the 2014 Nestlé Investor Seminar, Boston USA, June 3-4.

1. 1
Nestlé Investor Seminar 2014
Liberty Hotel, Boston
June 3rd & 4th 2014
Christophe Cornu
Chief Commercial Officer
Nestlé Nespresso S.A.
Nespresso VertuoLine:
A Game Changer ambition

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.
2

3. Presentation roadmap
1 Introducing the Nespresso concept
2 Nespresso USA growth engine
3 VertuoLine as a game changer
3

4. Presentation roadmap
1 Introducing the Nespresso concept
2 Nespresso USA growth engine
3 VertuoLine as a game changer
4

5. The Nespresso story
Turning a simple idea into a winning formula
….create the perfect cup
of espresso with exquisite
crema, tantalising aroma
and full-bodied taste –
just like skilled baristas
…at home, in a
convenient and
consistent way
5

6. Nespresso sales development
Pioneering the portioned coffee category for 28 years
6
*
~ CHF 500 m additional sales* year on year for the past 7 years
* at constant exchange rates

7. The Nespresso concept
A virtuous trilogy
Perfectly portioned
highest quality
Grand Cru coffees
Smart and
easy-to-use
machines
Personalised &
exclusive
services
7

8. A fully integrated value chain
From the cherry to the cup
8
1-2%
of the world’s
green coffee crop

9. Nespresso AAA Sustainable Quality™ program
Everyone benefits from quality
9
The Nespresso sustainability journey started in 2003 with
the launch of the Nespresso AAA Sustainable Quality™
Program in conjunction with the Rainforest Alliance to
ensure the long-term supply of highest quality green coffee
through:
• Sustainable Practices
• Economic Viability
• Environmental Stewardship

10. A multi-channel route to market
Delivering a genuine omni-channel experience
Connecting offline with online 10

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Continuous and holistic innovation
From coffee to service innovations
Coffee Machines Services

12. Presentation roadmap
1 Introducing the Nespresso concept
2 Nespresso USA growth engine
3 VertuoLine as a game changer
12

13. US coffee in-home market: USD 10.4 bn
Portioned coffee drives coffee category growth
Source: Nielsen excl. Nespresso - Dec. 2013
$0.9
$1.7
$2.3
$6.1
$6.9
$7.2
$0.9
$0.9
$0.9
$-
$2
$4
$6
$8
$10
$12
2011 2012 2013
Portioned Coffee R&G excl. Portioned Soluble Coffee
Total coffee: +15.3% CAGR 2011-2013
+94%
+38%
+21%
+10%
$ 7.9
$ 9.5
$10.4
US$bn
13

14. Nespresso USA
High double-digit growth
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
~300MioUS$
39% CAGR 2010-2013
14Source: Nespresso USA Sales

15. Nespresso USA
Internet as the primary channel
CRCInternet Boutique
24% 11%
60% 23% 17%
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Sales
Source: Nespresso USA Capsules/volume Sales

16. Nespresso USA Boutique network
Multi-format retail set-up
7 Flagships
2x NYC, SF, LA, Miami, Boston, Dallas
23 Boutique-in-Shops
Sur la Table, Bloomingdales, Macy’s
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17. San Francisco Flagship
Opened Q1, 2013
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18. Beverly Hills Flagship
Opened Q4, 2013
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19. Nespresso USA
How we will accelerate growth in the US
Accelerate Brand Awareness
Strengthen Availability
Leverage our Omni Channel model to deliver
superior Customer Experience
Introduce Innovation designed for the US market
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20. Presentation roadmap
1 Introducing the Nespresso concept
2 Nespresso USA growth engine
3 VertuoLine as a game changer
20

21. Nespresso introduces VertuoLine
A game changer ambition
21
2014

22. Nespresso VertuoLine and Nespresso OriginalLine
Two differentiated positionings
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The system that reinvents freshly brewed coffee The state of the art ‘espresso based’ system
Both designed for your home, delivering the undisputed Nespresso superior
in-cup result in the most convenient way

23. Nespresso VertuoLine and Nespresso OriginalLine
Two distinct technologies
OriginalLine
First disruptive
innovation by
Nespresso
CentrifusionTM
technology
7,000 rotations per minute (RPM)
High pressure pump
19 bars
No capsule recognitionCapsule recognition (bar code)
1 capsule size
(up to 6g of coffee)
2 capsule sizes
(up to 13g of coffee)
VertuoLine
Patented
technological
breakthrough
Freshly brewed large cup coffee with
crema & authentic espresso Authentic espresso
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24. Nespresso VertuoLine key consumer benefits
1
Superior machine convenience
2 Unique system versatility
3
Unmatched in-cup quality with crema
4 Nespresso experience
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25. The VertuoLine circle
Igniting the coffee revolution
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Differentiate by enhancing the
Specific system features:
Crema, Centrifusion, etc.

26. In summary…
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• Highly Attractive Single Serve Segment
• Introduction of a Unique Innovation designed for
the American Market
• Revolutionary Coffee Extraction Technology and
Unrivalled Versatility
• A Differentiated Brand Experience based on a
Direct-to-Consumer Relationship
• An Exclusive Route to Market delivering a genuine
Omni Channel Experience
• 28 years R&D and Innovation Capabilities in
portioned coffee
• A Passionate and Focused Team