#1Nestle Good Food, Good Life 福 徐 怒記 Nestlé & Hsu Fu Chi: Winning in the New Reality James Hu Vice President Mark Davies Chief Integration Officer Nestlé Investor Seminar, Dongguan September 24th, 2012#2Disclaimer 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. 1 September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#3Welcome to Hsu Fu Chi, a brand that will live over 100 years Hsu Fu Chi provides consumers with high quality products & the best tasting snacking choices, creating delightful moments Mekey Hsu Chen Founder & CEO of Hsu Fu Chi 2 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan 雀巢 ® 【徐記) Nestle Since 2011, Hsu Fu Chi is part of "the Nest" as a 60/40 partnership with the founding family Nestle#4Hsu Fu Chi is the leader in sweet confectionery in China with a unique sales model Candies chocolates cakes wafers jellies cookies snacks sachima ~ 900 products Chaobi ASSORTED CANDY 新年糖 尼康 CHIED Invented and developed the Pick & Mix format in China 3,500+ displays in hyper/supermarkets 3 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#5Hsu Fu Chi corporate milestones TH CCE Company founded in the PRC 1992 Transpac invested & introduced new vision Created first automated Sachima line 1997 2004 1994 Established Hsu Fu Chi trade mark 福乡 徐 記 4 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan 2000 Started to build proprietary distribution network Nestle#6Hsu Fu Chi corporate milestones SGX Publically listed on the SGX ST 2006 2010 台慶记三1月博大金 佳鎖 Nestle Entering Hsu Fu Chi & Nestlé joint venture 2011 2007 Top selling brand of candies for the 10th consecutive year 5 September 24th, 2012 | Nestlé Investor Seminar, Dongguan 东莞保记襄品有限公司生产匀涂即记牌精果 连续十年 荣列全国市场同类产品 销量第一名 中国石怪進发布中心 2012 20-year anniversary Nestle 【徐記) Good Food, Good Life Nestle#7Fast & profitable growth over the last 5 years. 2007 2008 CAGR 17% 2009 2010 2011 2012 Hsu Fu Chi sales in "Hsu Fu Chi financial years" Hsu Fu Chi financial year: from July to June 6 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#8Nestlé is joining forces with Hsu Fu Chi 記 Strong in Operations ⚫NCE & know-how in manufacturing • 5 efficient factories with 380kt capacity • Geographical Route-to- Market •Merchandising Impulse know-how •Value-added packs 5,000 dedicated sales people Brands & Marketing •Nestlé brands •Consumer insights •Brand portfolio management • Strong brands 奇欧比 . • 3,500 Pick & Mix counters •Festive season marketing R&D Know- how •Nestlé Global R&D Network •Know-how in Nutrition, Health and Wellness Caldilock ADE WITH RELL FREET 100% • Local consumer insights • Traditional 徐 福 記 + Nestle Ⓡ Winning in the Chinese tastes New Reality China coverage • Product & pack flexibility Hsu Fu Chi - An outstanding business from which to build 7 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#9Strong in Pick & Mix whilst moving to shelf ■ Strongly branded concepts Small pieces into multipacks Meeting key price points ■ Building understanding of shelf management and placement 8 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#10Expanding capacity to support future growth 2 production bases in Guangdong (South) and Henan (Centre) ■ 45 workshops ■ 187 production lines ■ 420 high speed packing lines ■80% imported equipment Opened new factory in Zhumadian in 2010 Zhumadian Huzhou Chengdu Existing sites Dongguan (x4) Acquired land for further expansion 9 September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#11Enhancing R&D capability at Hsu Fu Chi ■ Combining knowledge of Chinese consumers TM Nestle Research ■ Sharing Nestlé know-how in Biscuits, Sugar Confectionery & Chocolate ■ Bringing Nutrition, Health and Wellness MADE WI FRUIT REAL FRUIT 100% 10 September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle#12福 徐 記 Thank you! 11 | September 24th, 2012 | Nestlé Investor Seminar, Dongguan Nestle