#1Nestle Good food, Good life Nestlé India Financial Analyst and Institutional Investor Webcast 26th Feb 2021 Neste#2Disclaimer This presentation may contain statements which reflect Management's current views and estimates and could be construed as forward looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which holds only as of the date. The future involves uncertainties and risks that could cause actual results to differ materially from the current views being expressed. Potential uncertainties and risks include but are not limited to factors such as changes in general economic, political or market conditions, commodities and currency fluctuations, competitive product and pricing pressures, industrial relations and regulatory developments. Significant disruptions in the operations due to unforeseen events (including as a result of the spread of disease) Volume and Mix and Organic Growth (OG) are basis Nestlé Internal Reporting Standards. Figures are regrouped / reclassified to make them comparable. Calculations are based on non-rounded figures. 'Analytical data' are best estimates to facilitate understanding of business and NOT meant to reconcile reported figures. Answers to Questions may be given basis generally available information. Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#3Agenda 15.30-15.55 : Report Card of a Resilient Organization Presentation by Suresh Narayanan - 15.55 16.30: Q&A Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#4Report Card of a Resilient Organization Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#5Our Vision PEOPLE RFORMANCE Focussing on 5Ps PURPOSE PARTNERSHIPS Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Gosth अक्ष पात्र PLANET Nestle Good food, Good life#6Key Highlights 2020 Strong domestic sales growth, broad based and largely driven by volume and mix. Nearly two thirds of our key products, boosted by in home consumption, posted double digit growth. Innovation and Renovation pipeline continues to be a thrust area. Demand in Out of Home channels continued to improve. E-Commerce continues to contribute better towards Domestic Sales. Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#7FY 2020 Sales: Broad Based Performance Across All Product Groups 11.4% Prepared dishes and cooking aids Magg magic 8.9% Milk Products and Nutrition Cerelac LACTOGROW OATS cubes Vegetarian Maggi coconut Masay OPTIFAST te nourish Every Day NIST Milkmaid જાન Magui Minuti PAZZTA NANGRO Ceregrow 45.8% 30.1% VIS ATER Richkoo NEW Milkybar Milkybar Moo 10% EXTRA Nestle LASSIC DESSERT munch POLO COOL RUSH 13.6% Growth % Contribution Data represents Jan-Dec 2020 10.5% Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 MILO NESCAFE Iced Latte Bar One Milkyber 7.0% Confectionery 0.9% Powdered and liquid beverages Nestle Good food, Good life#8Report Card of a Resilient Organization The Consumption Opportunity Our Growth Model A History of Sustainable Performance Creating Shareholder Value A Strong Thrust on Innovation Rapidly Accelerating our Footprint Consistent Media Support to our Brands Navigating Commodity Headwinds Our People Matter Unwavering Commitment to Sustainability and Tackling Climate Change Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Continuing with Our Proven Growth Model Nestle Good food, Good life#9The Consumption Story - Exciting Opportunities Ahead By 2030, India will add ~140M middle-class and ~20M high-income HH India will be one of the youngest nations by 2030, Gen Z and Millennials will form 77% of India's population Population by age groups (%) #HHs 293M High 8M (3%) Upper mid 61M (21%) 386M Age in years 100% 6% 8% >=65 High 29M (7%) 3% 4% 21% 9% 11% 60-64 80 6% 50-59 Upper mid 11% 37% 37% 168M (44%) 60 40 60 (Millenials 25-49 born during 1981-2005) 15-24 33% 40 <15 Lower mid 18% 16% Gen Z: Digital 12% Natives (born 20 20 2006 onwards) 27% 24% 18% Low 57M (15%) 2030F 0 India (2018) India (2030F) USA Median age (years) -28 31 40 Lower mid 97M (33%) 132M (34%) Low 127M (43%) 2018 Source- Bain & Company report on Future of Consumption in India 2018-2030 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#10Our Growth Model Competitive advantage Brand Salience Investing and Innovating Penetration Led Growth through R&D expertise Strong Cost Leadership Position In Seven Out Of Eight Categories in most years and Efficiency Management munch langes PLAT EAT & TEARM munch Hak mung Onam dung ex Da Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 D bar th NESCAFÉ Sunrise Nestle Good food, Good life#1110 Years of Sustainable Volume & Mix Led Growth 14.5 9.2 6.8 2.5 (20.9) 11.6 8.4 9.6 8.5 5.7 6.7 7.8 1.8 (0.3) 430 432 436 433 269 343 382 424 457 468 116 103 128 121 # 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Domestic Vol ('000 Tons) * Volume & Mix Growth % * Volume and Mix Growth computed as per Internal reporting standards # 2015 impacted by MAGGI Issue Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#1210 Years of Sustainable Domestic Value Growth 16.9 14.3 11.0 11.8 10.7 10.2 10.1 7.1 8.6 10.9 8.5 10.9 2.6 8.2 (18.3) 71 79 84 92 75 88 95 105 117 126 31 29 34 33 2011 2012 2013 2014 2015# 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Domestic Sales (Bio) Comparable Growth % # 2015 impacted by MAGGI Issue * Reported Growth % * Reported growth rates in 2017 & 2018 are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realizations to pass on the GST benefits Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#1310 Years of Accelerating Profit from Operations 18.5 18.5 18.1 18.3 18.1 17.6 16.4 22.9 21.7 22.0 21.7 21.0 21.1 20.0 14 15 16 18 13 17 18 24 26 29 7 7 8 7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Profit from Operations (INR Bio) % of Net Sales # 2015 impacted by MAGGI Issue Profit from Operations is derived from Profit before Tax less Other Income and adding back Finance Costs (Including Interest Cost on Employee Benefit Plans), Net Provision For Contingencies (Others) and Corporate Social Responsibility Expense. Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#1410 Years of Accelerating Net Profit 12.8 12.9 12.3 12.1 6.9 16.7 16.0 15.7 15.9 16.0 14.3 14.1 12.1 10.6 10 11 11 12 6 10 12 16 20 21 5 5 6 5 # 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1-20 Q2-20 Q3-20 Q4-20 Net Profit (INR Bio) % of Net Sales # 2015 impacted by MAGGI Issue Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#1540 233125050 67.6 10 Years of Strong Value Creation Return on Invested Capital (ROIC) 69.5 44.8 44.9 35.6 37.3 36.2 31.4 19.8 ROIC % 103.5 14.3 24.2 32.0 32.1 28.4 31.8 33.9 35.8 28.3 20.1 2011 2012 2013 2014 2015 2016 2017 2018* 2019* 2020 Invested Capital (INR Billion) Invested capital: Average Equity + Long Term Borrowing * Restated values post implementation of Accounting Standard on Leases Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#16Leading to....Creating Significant Value For Investors Total Shareholders Return 3,324% Market Capitalization Annualized Return 20.3% Up 35.6 times vs. FMCG Benchmark Index 13.5 times INR 50 Bn INR 1,773 Bn *As on 31st Dec 2020 2001 USD 1.1 Bn (1 USD = INR 47.2) Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 2020* USD 24.3 Bn (1 USD INR 73.1) INR Billion is INR 100 crore. Source: Bombay Stock Exchange. Nestle Good food, Good life#17Maggi Over 80 new products in 5 years Masala Poha MILO 2-5 Nestle, Ceregrow GLOWING UP CEREAL Multigrain Cereal with Milk & Fruits IRON A Strong Thrust on Innovation 1.5 2.7 3.4 5.0 4.4 4.3 45 2016 2017 2018 2019 2020 New Product Sales % Contribution to Domestic Sales Over 40 New Innovation Projects in Pipeline Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life 4.0 3.5 3:0 2.5 2.0 15 1.0 0.5#18Map not to scale Widen Penetration Rapidly Accelerating our Footprint - Our Actions Availability, Visibility & Consumer Connect Portfolio People/Structure Visibility Consumer Connect Maggi Masala ए Magic 2-5 Nestle Ceregrow OROWING UP CEREAL Multigrain Cereal with Milk & Fruits self RICH IN IRON Source of NO ADDED mund NESCAFE จาาา NESCAFE Your Favourite M tala Ta Your Favourite Masala Tasty nutri Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#19Rapidly Accelerating our Footprint - Overall Reach Strengthening Our Distribution Muscle Indirect 2020 1.4 2019 1.3 2018 1.3 2017 1.3 2016 1.3 Nestlé Direct Reach Total Reach (Nielsen) 3.3 2.7 2.9 3.2 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 4.7 3.3 4.6 4.0 4.2 4.5 Nestle Good food, Good life#202019 2,780 7,012 Rapidly Accelerating our Footprint - RURBAN Enhancing Rural Reach 2018 1.818 6,657 8,909 2017 916 6,447 2016 1000 976 6,486 Villages Covered Wholesale HUB Small Distributors 51,584 7935 Consistent presence across all Urban towns in last 5 years Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 ~ 120,000 villages by end 2024 89,288 Nestle Good food, Good life#21Rapidly Accelerating our Footprint - New Channels GROWING CONTRIBUTION OF E-COMMERCE TO DOMESTIC SALES ■ 2016 2017 ■2018 ■ 2019 ■2020 3.7 2020 E-Commerce grew by 111% 2020 2019 1.9 1.3 0.9 2018 0.6 2017 2016 MAGGI MEGA PACK Spesial Alpa Poha Family Favourites Nutritious Bowls Something Different N resource nghardten Contribution Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 LACTOGROW NANGROW Happy NEOUS Ceregrow Mug Col N THE MORNING ZOMBIE CHEEKYMUO NESCAFE Neste resource high protein ♡ This Season Unwrap A Break Delightful Deals on GGROFERS 13th 14th February GGROFERS DESSERT Truffle PENNERT Choco Costa C Limited Edition MARE S NESCAFE CHEEKY MUG PACK PERFECT C THE MORNING ZOMBIE MAGGI MEGA PACK Nestle Every Day NESCAFE GOLD NESCAFE. BLEND DESSERT Rich Chach Fidge Pudding Exe93d Partner THICKER M Fortified with Vit. A & D Nestlé a+ nourish REAR Nestle Good food, Good life#22Consistent Media Support to Our Brands 1.0x 0.9x 1.3x 1.4x 1.3x 2016 2017 2018 2019 2020 Note: Year values have been indexed taking 2016 as the base A&SP Spend 1.0y 0.6y 1.3y 1.6y Q1-20 Q2-20 Q3-20 Q4-20 Note: Quarter values have been indexed taking Q1 2020 as the base Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#23Milk Milk 100 27% Wheat 111 Navigating Commodity Headwinds SMP 98 115 123 114 114 105 100 99 Wheat 10% 25 kgs net Skimmed Milkpowder 118 SMP 10% 100 Green Coffee 2016 2017 2018 2019 Green Coffee 6% 2020 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 99 133 166 119 110 112 110 100 2016 2017 2018 2019 2020 Indexed with base 2016 Nestle Good food, Good life#24People Matter @ Nestlé Higher due to COVID Related Cost and Long Term Compensation Arrangements 9.6 10.0 10.0 10.2 1.4x 1.3x 1.2x 11.3 1.1x 1.0x 9.0 10.2 11.2 12.6 15.0 7.6 7.5 7.6 7.7 7.8 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Employee Cost (INR Bio) % of Net Sales (Indexed to 2016) Number of Employees ('000) Turnover per Employee (indexed to 2016) Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#25Unwavering Commitment to Sustainability and Tackling Climate Change ■ Accelarating our Sustainability Spend Sustainable Packaging Commitments on Water Responsible Sourcing 1.0x 1.6x 1.8x 2018 2019 2020 Reach Zero Net Green House Gas Emissions Indexed 2018 Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 Nestle Good food, Good life#26We Continue With Our Proven Growth Model Penetration Led Growth Strong Cost and Efficiency Management Investing and Innovating Competitive advantage through R&D expertise Brand Salience Nestlé India - Financial Analyst and Institutional Investor Webcast, 26th Feb 2021 KING OF COFFEE Sunrise ജി ഓണം majo Milkmaid (KitKat) KitKat Bery De Magg Coconut abano.m Every Day Nestle Good food, Good life