#1Nestle Good food, Good life feast Seafood XPURINA 24 Fancy Feast Seafood GRILLED COLLECTION CANS Fancy Feast Fealt PURINA 2 Half-year results 2023#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. 2 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#3Nestle Good food, Good life Half-year results 2023 Mark Schneider, CEO NESCAFE 毪咖啡 醒醒旋风 EX#4Key messages . Strong broad-based organic sales growth of 8.7% - Strong pricing of 9.5%, reflecting significant input cost inflation • - Resilient RIG of -0.8%, impacted by portfolio optimization and remaining capacity constraints Generating resources and investing for growth • • - - Gross margin up 110 basis points vs. the second half of 2022 Marketing investment up 50 basis points vs. the second half of 2022 Underlying trading operating profit margin up 20 bps to 17.1% Strong underlying earnings per share growth of 11.1% in constant currency • Free cash flow increased by CHF 1.9 billion to CHF 3.4 billion, mainly reflecting lower inventory levels. 4 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#5сл 5 Eliminating deforestation from Nestlé's palm oil supply chains 95.6% assessed as deforestation-free . Tracing palm oil back to plantation • Using satellite monitoring • Training smallholders on good agricultural practices . Restoring forests and natural ecosystems July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#62023 guidance updated . Organic sales growth guidance increased to a range of 7% to 8% · Underlying trading operating profit margin expected to be between 17.0% and 17.5% • Underlying earnings per share in constant currency expected to increase between 6% and 10% 6 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#7Nestle Good food, Good life NESCAFÉ Dolce Gusto neo NOVA CAFETERIA DENTRO DE CASA NESCAFE 8/ Lungo Dark Perfil Generoso & Picante CAFE TORRADO De origem MOIDO Copsula com pope compostovel 10x Imogen Austrative PESO LIQ 70g NESCO Dolce Gusto Half-year results 2023 François-Xavier Roger, CFO#8Half-year sales growth 45.6 OG +8.7% -0.4% -0.8% +9.5% Reported sales growth +1.6% -6.7% <- 46.3 HY-2022 sales CHF bn RIG Pricing Net M&A Foreign exchange HY-2023 sales CHF bn 8 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#9Strong growth across developed and emerging markets Sales (in CHF) % of Group sales Developed Emerging 26.8 bn 19.5 bn 58% 42% RIG -1.4% 0.0% Pricing 9.4% 9.6% OG 8.0% 9.6% 6 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#10RIG expected to turn positive in second half of 2023 1.7% -1.4% -0.8% H1-22 H2-22 H1-23 10 July 27, 2023 Nestlé half-year results 2023 . Drivers of RIG improvement in H2-23 Base of comparison Increased marketing investments Net effect of portfolio optimization turning positive Moderation of new pricing Nestle Good food, Good life#11Zone North America Coffee mate Nestle VANILLA FRENCH • . • • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 12.6 bn 10.0% -1.0% 21.6% +280 bps Strong organic growth, driven by inflation-related pricing. RIG impacted by portfolio optimization and capacity constraints Favorable mix and continued momentum in e-commerce supported growth Purina PetCare, beverages and Nestlé Professional were the key growth drivers Margin +280 bps mainly as a result of portfolio optimization, pricing and cost efficiencies 11 July 27, 2023 Nestlé half-year results 2023 ITALIAN SWEET CRÈME THE ORIGINAL HAZELNUT Nestle Coffee mate Nestle Coffee mate Nestle Coffee mate TER Be Richt Nestle Good food, Good life#12Zone Europe • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 9.5 bn 8.9% -2.4% 16.6% -70 bps Strong organic growth led by pricing. RIG impacted by capacity constraints and portfolio optimization • E-commerce momentum and out-of-home channels supported growth • Purina PetCare, confectionery and Nestlé Professional • were the main growth contributors Margin -70 bps impacted by significant cost inflation 12 July 27, 2023 Nestlé half-year results 2023 Nestle KitKat 7 A N M Nestle Good food, Good life#13• • Zone Asia, Oceania and Africa Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 9.1 bn 9.3% 0.1% 22.8% -70 bps KARI Strong organic growth, supported by pricing and positive RIG Improved mix and continued momentum of out-of-home channels supported growth • • Infant nutrition, culinary and coffee were the key growth drivers Margin -70 bps reflecting input cost inflation, currency depreciation 13 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#14Zone Latin America • . • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 6.1 bn 11.6% -0.9% 19.8% -130 bps Sustained double-digit organic growth based on pricing Strong operational execution and continued momentum of out-of-home channels supported growth Confectionery, dairy and infant nutrition were the main growth contributors Margin -130 bps due to one-off items in the prior year and cost inflation 14 July 27, 2023 Nestlé half-year results 2023 NEW LOOK mismo sabor, sam Nestle Lechera -ntic La Original Le Nestle Good food, Good life#15Zone Greater China Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 2.5 bn 4.7% 1.3% 16.6% +160 bps Positive organic growth, led by both RIG and pricing • • Robust e-commerce momentum and a recovery of out- of-home channels supported growth Nestlé Professional, infant nutrition and confectionery were the key growth drivers Margin +160 bps driven by favorable mix and disciplined cost control 15 July 27, 2023 Nestlé half-year results 2023 遥厚切 凤梨酥 关山楷花 焗烤瓜点 1.6. 80 10 659 10 SP 高品质 值得切 Nestle Good food, Good life#16Nestlé Health Science • . Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 3.3 bn 3.5% -1.9% 13.0% -70 bps Organic growth increasing sequentially, supported by post-COVID normalization • Consumer Care saw negative growth, with growth in VMS turning positive in the second quarter • Medical nutrition recorded double-digit growth, led by acute medical care, pediatric and allergy products • Margin -70 bps due to cost inflation 16 July 27, 2023 Nestlé half-year results 2023 Slee NATURE'S BOUN Sleep3 SOMMINS Nestle Good food, Good life#17Nespresso • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 3.1 bn 4.5% 0.8% 21.7% -260 bps Organic growth driven by pricing, with a return to positive RIG • Vertuo, strong demand in out-of-home channels and innovation supported growth • • North America posted double-digit growth. Europe reported slightly positive growth Margin -260 bps impacted by coffee cost inflation and the appreciation of the Swiss Franc NESPRESSO NESPRESSO 17 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#18Broad-based growth across categories Organic sales growth % 15.0% 8.7% 7.2% 7.4% 7.5% 5.8% 10.8% 4.2% Total Group Powdered and Liquid Beverages PetCare Nutrition and Health Science Prepared dishes and cooking aids Milk products and Ice cream Confectionery Water 18 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#19Underlying trading operating profit margin by category In % of sales Change in bps Vs. H1-2022 17.1% 23.3% 21.1% 20.9% 19.5% 16.7% 14.5% 11.0% +20 -250 +190 Flat +140 +80 +70 +130 Total Group* Powdered and Liquid Beverages PetCare Nutrition and Health Science Milk products and Ice cream Prepared dishes and cooking aids Confectionery Water * Includes unallocated items 19 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#20Pricing, growth leverage and efficiencies mostly offset inflation 16.9% Underlying TOP HY-2022 + 50 bps - 40 bps * Gross margin = Sales - cost of goods sold 20 July 27, 2023 Nestlé half-year results 2023 Gross margin* + 10 bps 17.1% Margin +20 bps on a reported basis Margin +30 bps in constant currency Distribution Administration, marketing and advertising, R&D <- Underlying TOP HY-2023 Nestle Good food, Good life#21Starting to restore gross margin Gross margin as a % of sales 46.0% H1-2022 21 July 27, 2023 Nestlé half-year results 2023 44.5% 45.6% H2-2022 H1-2023 Nestle Good food, Good life#22Stepping up investments in advertising and marketing Advertising and marketing expenses as a % of sales 7.1% H1-2022 22 22 July 27, 2023 Nestlé half-year results 2023 6.6% 7.1% H2-2022 H1-2023 Nestle Good food, Good life#23Net profit Underlying trading operating profit Restructuring Impairment of assets Onerous contracts, litigations and other operating income / expenses Trading operating profit Gain/loss on disposals Net financing costs Taxes Income from associates / joint ventures Others Net profit 23 July 27, 2023 Nestlé half-year results 2023 % of sales 17.1% 15.9% H1-23 vs H1-22 +20 bps -40 bps +130 bps +10 bps +120 bps +10 bps -60 bps Flat Flat Flat 12.2% +70 bps Nestle Good food, Good life#24Increasing free cash flow generation Free cash flow as a % of sales 6.8% H1-2021 24 24 July 27, 2023 Nestlé half-year results 2023 3.2% 7.4% H1-2022 H1-2023 Nestle Good food, Good life#25Inventory levels starting to normalize Inventories as a % of sales 13.6% H1-2021 Inventories as a % of annualized (12-month) sales 25 July 27, 2023 Nestlé half-year results 2023 16.5% 15.6% H1-2022 H1-2023 Nestle Good food, Good life#26Underlying earnings per share 9.9% 1.4% -1.4% 1.2% CHF 2.59 -7.0% CHF 2.33 Evolution in constant currency +11.1% .-->> Evolution on reported basis +4.1% UEPS HY-2022 Operating performance CHF 2.43 Share Buyback Net finance costs Others* & tax UEPS HY-2023 in constant FX impact UEPS HY-2023 currency *Includes M&A and income from associates and joint ventures 26 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#27Q&A 27 July 27, 2023 Nestlé half-year results 2023 NEW Garden SENSATIONAL Gourmet CRISPY MINI FILET MARE WITH PLANT-BASED INGREDIENTS 186 4x BELICIOUS JUICY W Nestle Good food, Good life#28Supporting slides 28 July 27, 2023 Nestlé half-year results 2023 NESCAFÉ Nestle Good food, Good life#29HY-2023 Operating segments - topline summary HY-2023 sales Sales RIG Pricing OG Net M&A F/X Reported sales growth (CHF m) % % % % % % Zone North America 12 553 -1.0 11.0 10.0 -2.1 -4.4 3.4 Zone Europe 9 467 -2.4 11.3 8.9 -0.9 -6.0 2.0 Zone AOA 9 060 0.1 9.2 9.3 -0.1 -12.1 -2.9 Zone Latin America 6 082 -0.9 12.5 11.6 0.1 -4.3 7.5 Zone Greater China 2 548 1.3 3.4 4.7 0.0 -9.5 -4.8 Nestlé Health Science 3 318 -1.9 5.3 3.5 6.0 -4.8 4.7 Nespresso 3 128 0.8 3.7 4.5 -0.8 -5.6 -1.9 Other Businesses 137 8.3 1.3 9.6 0.0 -4.3 5.3 Total Group 29 July 27, 2023 Nestlé half-year results 2023 46 293 -0.8 9.5 8.7 -0.4 -6.7 1.6 Nestle Good food, Good life#30HY-2023 Products - topline summary HY-2023 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages Water 12 339 -0.6 7.8 7.2 1 706 -6.3 10.5 4.2 Milk products and Ice cream 5 418 -3.8 11.3 7.5 Nutrition and Health Science 7 832 -0.5 7.8 7.4 Prepared dishes and cooking aids 5 931 -4.2 10.0 5.8 Confectionery 3 694 2.6 8.2 10.8 Petcare 9 373 2.9 12.1 15.0 Total Group 30 July 27, 2023 Nestlé half-year results 2023 46 293 -0.8 9.5 8.7 Nestle Good food, Good life#31HY-2023 historical eight quarters Period RIG% Pricing % OG % Q3-2021 4.4 2.1 6.5 Q4-2021 4.0 3.1 7.2 Q1-2022 2.4 5.2 7.6 Q2-2022 0.9 7.7 8.7 Q3-2022 -0.2 9.5 9.3 Q4-2022 -2.6 10.1 7.5 Q1-2023 -0.5 9.8 9.3 Q2-2023 -1.1 9.1 8.0 31 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#32HY-2023 Operating segments - revenue and results In CHF m Underlying Trading Trading Net other trading of property, Operating Operating income/ plant and Of which impairment Of which restructuring Depreciation and Sales Profit Profit (expense) equipment costs amortization Zone North America 12 553 2713 2632 (81) (29) (44) (337) Zone Europe Zone AOA 9 467 1 570 1 373 (197) (5) (140) (414) 9 060 2 068 1985 (83) (49) (16) (259) Zone Latin America 6 082 1 202 1 101 (101) (4) (21) (192) Zone Greater China 2 548 422 418 (4) (2) (2) (83) Nestlé Health Science 3 318 432 372 (60) (11) (31) (152) Nespresso 3 128 678 672 (6) (9) (1) (135) Other businesses 137 (17) (17) (1) (19) Unallocated items (1164) (1 185) (-21) (7) (131) Total Group 46 293 7 904 7 351 (553) (110) (262) (1 722) 32 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#33HY-2023 Products – revenue and results - In CHF m Underlying Trading Trading Sales Operating Profit Operating Profit trading income/ (expense) Net other Of which impairment of property, Of which plant and restructuring equipment costs Powdered and Liquid Beverages 12 339 2 607 2 506 (101) (50) (32) Water 1 706 187 57 (130) (6) (94) Milk products and Ice cream 5 418 1 261 1 227 (34) (10) (15) Nutrition and Health Science 7 832 1 529 1 416 (113) (34) (40) Prepared dishes and cooking aids 5 931 989 924 (65) (3) (52) Confectionery 3 694 536 467 (69) (3) (11) PetCare Unallocated items 9 373 1 959 1 939 (20) (4) (11) (1164) (1185) (21) (7) Total Group 33 July 27, 2023 Nestlé half-year results 2023 46 293 7 904 7 351 (553) (110) (262) Nestle Good food, Good life#34HY-2023 EPS reconciliation (1 of 2) From net profit to underlying net profit Net Profit Restructuring costs Impairments of property, plant & equipment, goodwill and int. assets. Net result on disposal of businesses Other adjustment in Net other income/(expense) Adjustment for income from associates and joint ventures Tax effect on above items & adjustment of one-off tax items Adjustment in non-controlling interests Underlying Net Profit Weighted Average number of shares outstanding (million) Underlying EPS (in CHF) 34 July 27, 2023 Nestlé half-year results 2023 In CHF m H1-2023 H1-2022 5 247 5 649 87 262 741 181 52 8 184 191 82 127 (16) 43 (13) (12) 6 364 6 449 2 729 2 657 2.33 2.43 Nestle Good food, Good life#35HY-2023 EPS reconciliation (2 of 2) From underlying trading operating profit to underlying net profit Underlying trading operating profit Net financial income / (expense) Adjusted taxes In CHF m H1-2022 7 683 (434) (1515) 798 (168) 6 364 H1-2023 7 904 (697) (1 486) 877 (149) 6 449 2 657 2.43 Adjusted income from associates and joint ventures Adjusted non-controlling interests Underlying Net Profit Weighted Average number of shares outstanding (million) 2 729 Underlying EPS (in CHF) 2.33 35 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#36HY-2023 Currency overview Weighted average rate HY-2022 HY-2023 Variation in % US Dollar 1 USD 0.945 0.911 -3.6 Euro 1 EUR 1.032 0.986 -4.5 Chinese Yuan Renminbi 100 CNY 14.568 13.164 -9.6 Brazilian Real 100 BRL 18.723 17.974 -4.0 Philippine Peso 100 PHP 1.813 1.649 -9.0 UK Pound Sterling 1 GBP 1.226 1.124 -8.3 Mexican Peso 100 MXN 4.649 5.014 7.9 Canadian Dollar 1 CAD 0.744 0.676 -9.0 Japanese Yen 100 JPY 0.766 0.674 -12.0 Australian Dollar 1 AUD 0.680 0.616 -9.4 Indian Rupee 100 INR 1.239 1.109 -10.5 36 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#37Free cash flow In CHF billion 1.5 -0.5 1.2 0.2 1.0 Free cash flow HY-2022 Adjusted EBITDA Working capital CAPEX and expenditure on intangible assets Others 37 2 July 27, 2023 Nestlé half-year results 2023 3.4 Free cash flow HY-2023 Nestle Good food, Good life#38Abbreviations • OG ⚫ RIG AOA LATAM GC ⚫ EPS • COGS FCF • TOP UTOP • Structural costs Adjusted EBITDA Organic growth Real internal growth Zone Asia, Oceania, and Africa Zone Latin America Zone Greater China Earnings per share Cost of goods sold Free cash flow Trading operating profit Underlying trading operating profit Mainly production, distribution and administrative fixed costs As per definition in Alternative Performance Measures (APM) 38 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life