#1NESCAFÉ FÉ. Nestle Good food, Good life Full-year results 2022#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 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#3Nestle Good food, Good life Full-year results 2022 Mark Schneider, CEO Nestle NAN SUPREME Pro 3 TODDLER AUTRIT#4Key messages Resilient financial performance Strong organic sales growth of 8.3%, led by pricing with slightly positive RIG Underlying trading operating profit margin decreased by 30 bps to 17.1%, reflecting significant cost inflation, partially mitigated by cost efficiencies and growth leverage • Underlying earnings per share growth of 9.4% in constant currency Building for the long-term Investing in capex, innovation and sustainability • Rotated ~22% of portfolio between 2017-2021 Continued progress on Good for You, Good for the Planet agenda Board proposes dividend per share of CHF 2.95, an increase of 15 centimes 4 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#52022 achievements Categories, regions and channels • PetCare: +14.5% • Coffee: resilient at +8.1%, with Starbucks +CHF 1.5 bn incremental sales since 2018 • Emerging markets: +10.0%, supported by growth in affordable offerings • Out-of-home channels: +23.5% • Fixing underperforming businesses ⚫ China infant nutrition: back to high single-digit growth • Addressing low-margin businesses and streamlining SKU portfolio Portfolio management ⚫ Focus Nestlé Health Science on Consumer Care and Medical Nutrition . . ⚫ Food: creation of a B2B fresh-food platform, combining Freshly and Kettle Cuisine 5 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#66 February 16, 2023 Good for You: continued progress on nutrition Todo oval querer Segredo ratog Disease Dispens roc temper Sigride dek vows mes Da cek Nestle Faz Bem 4 pratos S 22004 Nestlé full-year results 2022 Todo mundo val querer panc o Segredo seus prato APP Neste ● • · Continuing our journey to reduce sodium, sugar and saturated fats Targeting continued growth in plant-based food & beverages Empowering consumers to make more informed decisions on food and diet choices Delivering on our transparency and responsible marketing commitments Nestle Good food, Good life#7Good for the Planet: progress on greenhouse gas reduction 7 February 16, 2023 Nestlé full-year results 2022 • • • ● Peak carbon is behind us Greenhouse gas emissions now below 2018 level On track to deliver 20% carbon emission reduction by 2025 vs. 2018 level Significant reduction expected in 2023 as we reap the benefit of investments made over the last 2 years Nestle Good food, Good life#8Key focus areas for 2023 Strategic Accelerate portfolio optimization . Drive faster, relevant, impactful innovation Lead on climate, sustainability and nutrition agendas Operational Protect volume growth . Drive cost efficiencies Step-up marketing investments Financial . Restore gross margin and cash flow generation 8 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#9Accelerating portfolio optimization 6 Strong delivery to date - expanding scope of portfolio optimization beyond SKUs to brands, segments and geographies Freeing up resources via SKU optimization and portfolio pruning Re-allocating resources toward high-growth, high-margin products 8503 ONE NESCAFE CLASSIC Nestle. Moca Doceria sabor chocolate emoso cremos IDI Select dairy SKUs Brazil NEW! NOUVEAU! DELISSIO GARLIC BREAD PIZZA PAIN À L'AIL 4 CHEESE 4 FROMAGES DIGESTIVE HEALTH Frozen food Canada NATURAL February 16, 2023 Nestlé full-year results 2022 FRENCH VANILLA Neste Nestle Coffee mate V VEGAN Vegan Nestle Good food, Good life#102023 guidance • Organic sales growth between 6% and 8% Underlying trading operating profit margin between 17.0% and 17.5% Underlying earnings per share growth in constant currency between 6% and 10% 10 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#11Nestle Good food, Good life 370 E Nestle GOLDEN Maize & Soya Protein MORN Net Weight: 800g Full-year results 2022 François-Xavier Roger, CFO#12Resilient financial performance 87.1 Sales (in CHF bn) Underlying TOP (in CHF bn) Underlying EPS growth (in constant currency) +8.4% 94.4 15.1 +6.5% 16.1 CHF 4.42 +9.4% Total returns to shareholders (in CHF bn) +30.8% CHF 4.84 13.9 18.2 2021 2022 2021 2022 2021 2022 2021 2022 12 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#13Full-year sales growth OG +8.3% +0.1% 87.1 FY-2021 sales CHF bn RIG +8.2% +1.1% -0.9% 94.4 Reported sales growth +8.4% Pricing Net M&A Foreign exchange RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines 13 February 16, 2023 Nestlé full-year results 2022 <- FY-2022 sales CHF bn Nestle Good food, Good life#14Strong growth across developed and emerging markets Sales (in CHF) % of Group sales Developed 55.1 bn 58% Emerging 39.3 bn 42% RIG -0.8% 1.4% Pricing 7.9% 8.6% OG 7.1% 10.0% 14 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#15Resilient mix, volume and market share in 2022 2018 2019 2020 2021 2022 2.0% 8.6% 1.4% 0.6% Close to 60% of business cells for billionaire brands gaining / holding share Price 0.5% 0.5% 2.2% Mix 1.7% 1.4% 3.7% Volume 1.1% 1.3% 1.5% 1.6% Excludes water and Nestlé Health Science; Volume + Mix are equivalent to RIG 15 February 16, 2023 Nestlé full-year results 2022 -1.7% High base of comparison and supply constraints Nestle Good food, Good life#16Q4-2022 RIG impacted by additional transitory factors Q4-2022 RIG and Pricing Factors impacting Q4-2022 RIG decline • Normalization of out-of-home growth Price 10.1% . Portfolio and SKU optimization • Temporary capacity constraints in water RIG -2.6% 16 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#17Zone North America Sales Organic growth Real internal growth • Underlying TOP margin vs LY CHF 26.3 bn 10.3% -1.3% 21.0% +70 bps Strong organic growth, driven by pricing. RIG impacted by high base of comparison and supply constraints Strong operational execution, continued e-commerce momentum and market share gains supported growth • Purina PetCare, Nestlé Professional, coffee and creamers were the key growth drivers Margin +70 bps as pricing, growth leverage and portfolio management more than offset significant cost inflation Mint Truffle NATURAL FLAVOR Coffee natural bliss ALL-NATURAL COFFEE CHAN ALL NATURAL WIDE WITH Real Milk Cream HOW CONS 17 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#18Zone Europe • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 19.1 bn 7.2% 0.9% 16.4% -190 bps Robust organic growth, led by pricing. Positive RIG despite high base of comparison and supply constraints • Resilient performance in a challenging and disrupted environment • Purina PetCare, Nestlé Professional and water were the main contributors to growth • Margin -190 bps as significant cost inflation outweighed pricing, growth leverage and disciplined cost control Tails .com simply Delicious Beef Tails .com Simply Irresistible Chicken 18 February 16, 2023 Nestlé full-year results 2022 Bella Heatly seph Healthy skin & cout Hey Serve 4 scoops on sing 4 per day Tails .com There's a recipe for every dog at tails.com Tails .com HAND-BAKED Salmon biscuits Lihased & Herbs AKED scuits Nestle Good food, Good life#19Zone Asia, Oceania and Africa Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 18.5 bn 8.2% 0.1% 22.9% -110 bps • Strong organic growth, reflecting pricing execution across all geographies and categories • Further recovery of out-of-home channels and innovation supported growth Magic Sarap • Culinary, Nestlé Professional and coffee were the main growth contributors • Margin -110 bps as significant cost inflation more than offset pricing, growth leverage and cost control 19 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#20Zone Latin America • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 11.8 bn 13.1% 1.5% 21.2% -70 bps Sustained double-digit organic growth, with increased pricing and resilient RIG • Broad-based growth driven by operational execution and continued momentum of out-of-home channels • Growth was led by confectionery, Purina PetCare and coffee • Margin -70 bps as one-off items and cost inflation more than offset pricing, growth leverage and cost control 20 February 16, 2023 Nestlé full-year results 2022 Nestlé Nute NINHO Forti+ Jestle INHO Fortit Nestlé NINHO Forti+ ABO STE RECEITAS News Nestle Good food, Good life#21Zone Greater China • Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 5.4 bn 3.5% 1.0% 16.1% +260 bps Solid organic growth, with positive pricing and RIG, despite the impact of movement restrictions • Strong operational execution, robust e-commerce momentum and continued innovation supported growth • Infant nutrition, coffee and confectionery were the key growth drivers • Margin +260 bps as favorable mix and disciplined cost control more than offset inflation 21 February 16, 2023 Nestlé full-year results 2022 NESCAFE NESCAR Nestle Good food, Good life#22Nestlé Health Science . Sales Organic growth Real internal growth Underlying TOP margin vs LY CHF 6.6 bn 4.0% 0.6% 13.6% Flat • Robust organic growth with share gains, supported by pricing, innovation and distribution gains . • Consumer Care saw positive growth, as strong demand for active nutrition offset a slight sales decrease for VMS • Medical nutrition recorded double-digit growth, led by pediatric and allergy products • Margin flat as acquisition synergies and growth leverage were offset by cost inflation and growth investments 22 February 16, 2023 Nestlé full-year results 2022 Orgain Organic Protein 50 SUPERFOODS PROTEIN POWDER Nestle Good food, Good life#23Nespresso Sales Organic growth Real internal growth Underlying TOP margin CHF 6.4 bn 3.5% -1.7% 21.5% . vs LY -150 bps N Organic growth driven by pricing. RIG impacted by a high base of comparison during the pandemic • Sustained momentum for Vertuo, a strong recovery of out-of-home channels and innovation supported growth • North America posted double-digit growth. Europe reported a sales decrease • Margin -150 bps impacted by cost inflation and growth investments in the roll-out of the Vertuo system PERU ORGANIC ORIGINAL PAPER-BASED CAPSULE Peru 23 February 16, 2023 Nestlé full-year results 2022 NESPRESSO Nestle Good food, Good life#24Broad-based growth across categories Organic sales growth % 14.5% 8.3% 8.0% 7.4% Total Group Powdered and Liquid Beverages PetCare Nutrition and Health Science 24 February 16, 2023 Nestlé full-year results 2022 3.1% 5.4% Prepared dishes & cooking aids Milk products and Ice cream 11.0% 9.4% Confectionery Water Nestle Good food, Good life#25Underlying trading operating profit margin by category In % of sales Change in bps vs FY-2021 17.1% 22.2% 20.5% 19.1% 16.3% 22.7% 16.8% 7.8% -30 -130 -60 +160 -50 -260 +80 -120 Total Group* Powdered and Liquid Beverages PetCare Nutrition and Health Science Prepared dishes and cooking aids Milk products and Ice cream Confectionery Water * Includes unallocated items 25 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#26Inflation more than offset pricing, growth leverage and efficiencies 17.4% -260 bps +20 bps 17.1% +210 bps Underlying TOP FY-2021 Margin -30 bps on a reported basis and -40 bps in constant currency Gross margin* Distribution * Gross margin = Sales - cost of goods sold 26 February 16, 2023 Nestlé full-year results 2022 Administration, marketing, R&D Underlying TOP FY-2022 Nestle Good food, Good life#27Net profit impacted by exceptional items Underlying trading operating profit Restructuring Impairment of assets Onerous contracts, litigations and other operating income / expenses Trading operating profit Gain/loss on disposals Taxes Income from associates / joint ventures (incl. L'Oréal share disposal in 2021) Others Net profit 27 February 16, 2023 Nestlé full-year results 2022 % of sales 2022 vs 2021 17.1% -30 bps +10 bps +20 bps Flat 14.0% Flat -40 bps -30 bps 9.8% -880 bps -10 bps -960 bps Nestle Good food, Good life#28Strong increase in underlying earnings per share 6.0% -1.0% -0.6% 2.2% 1.8% CHF 4.84 CHF 4.80 CHF 4.42 Evolution in constant currency +9.4% .--> Evolution on reported basis +8.4% UEPS FY-2021 Operating performance Share buyback Net finance costs & tax Others* UEPS FY-2022 FX impact UEPS FY-2022 in constant currency * Includes M&A and income from associates and joint ventures 28 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#29Sustaining strong operating cash flow generation Cash flow as % sales Cash generated from operations 20.1% 20.1% 20.1% 20.0% 19.3% 19.5% 12.9% 11.8% 12.1% 10.4% 10.0% Free cash flow 7.0% 2017 2018 2019 2020 2021 2022 Impacted by decision to temporarily increase inventories and high capex level Cash generated from operations before changes in working capital; 2017 restated, reflecting implementation of IFRS 15 and IFRS 16 29 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#30Return on invested capital Before goodwill and intangible assets* 33.9% 30.6% After goodwill and intangible assets* 11.4% 9.1% 12.1% * 2017* 2018 41.1% 41.7% 38.8% 39.4% 14.7% 14.2% 14.3% 13.1% 12.3% ☐ 12.2% 12.2% 2019 2020 2021 2022 * Restated to reflect implementation of IFRS 15 and IFRS 16 in 2017. ** Excludes impairment of Nestlé Skin Health in 2017, Yinlu in 2019, Wyeth in 2021 and Aimmune and Freshly in 2022 30 February 16, 2023 Nestlé full-year results 2022 Excludes major impairments (predominantly relating to businesses sold) As reported ** Nestle Good food, Good life#31Net debt In CHF bn CHF 18.2 bn returned to shareholders 32.9 +10.5 +3.1 +0.7 +7.6 Net debt increased by CHF 15.3 bn Net debt Jan 1, 2022 Share buyback Dividends Net debt / Adjusted EBITDA: 1.77x * M&A line incl. associates/ joint ventures and non-controlling interests 31 February 16, 2023 Nestlé full-year results 2022 M&A** -6.6 Impacted by temporary increase in inventories 48.2 Others Free cash flow Net debt Dec 31, 2022 Net debt / Adjusted EBITDA: 2.45x Nestle Good food, Good life#32Full-year results 2022 Q&A 32 February 16, 2023 Nestlé full-year results 2022 MADE WITH PLANT-BASED INGREDIENTS PROTEIN 18G PORTION DELICIOUS &JUICY VECAN SOURCE OF NUTRI-SCORE Nestle Good food, Good life#33Thank you! SOCIETY. 33 February 16, 2023 Nestlé full-year results 2022 Chocolatory BRAZIL #CREATE Nestle Good food, Good life#34FY-2022 Operating segments - quarterly summary Q4-2022 sales Sales RIG Pricing OG (CHF m) % % % Zone North America Zone Europe Zone AOA -4.9 12.8 7.8 7 235 -0.8 8.3 7.5 5 160 -2.8 11.2 8.4 4 585 Zone Latin America -1.3 14.8 13.5 3 171 Zone Greater China 1508 -1.6 2.2 0.6 Nespresso -1.2 5.8 4.6 1 774 Nestlé Health Science -2.9 5.6 2.7 1 791 Other Businesses 68 17.7 3.7 21.4 Total Group 34 February 16, 2023 Nestlé full-year results 2022 25 292 -2.6 10.1 7.5 Nestle Good food, Good life#35FY-2022 Operating segments - topline summary FY-2022 sales Sales RIG Pricing OG Net M&A F/X Reported sales growth (CHF m) % % % % % % Zone North America 26 328 -1.3 11.6 10.3 -3.8 4.7 11.1 Zone Europe 19 128 0.9 6.4 7.2 2.1 -7.6 1.8 Zone AOA 18 484 0.1 8.1 8.2 -0.1 -4.9 3.3 Zone Latin America 11 819 1.5 11.6 13.1 0.1 4.0 17.2 Zone Greater China 5 351 1.0 2.5 3.5 0.0 -0.1 3.4 Nespresso 6 448 -1.7 5.2 3.5 -0.3 -2.7 0.5 Nestlé Health Science 6 602 0.6 3.4 4.0 31.5 1.5 36.9 Other Businesses 264 25.2 3.2 28.4 0.0 -0.1 28.3 Total Group 94 424 0.1 8.2 8.3 1.1 -0.9 8.4 35 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#36FY-2022 Products - topline summary FY-2022 sales Sales RIG Pricing OG (CHF m) % % % Powdered and liquid beverages Water 25 218 0.2 7.8 8.0 3 536 2.2 8.9 11.0 Milk products and Ice cream 11 289 -4.3 9.6 5.4 Nutrition and Health Science 15 678 1.7 5.7 7.4 Prepared dishes and cooking aids 12 484 -6.9 10.0 3.1 Confectionery 8 118 4.8 4.7 9.4 Petcare 18 101 4.3 10.2 14.5 Total group 36 February 16, 2023 Nestlé full-year results 2022 94 424 0.1 8.2 8.3 Nestle Good food, Good life#37FY-2022 historical eight quarters Period RIG% Pricing % OG % Q1-2021 6.4 1.2 7.7 Q2-2021 7.3 1.3 8.6 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 37 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#38FY-2022 Operating segments - revenue and results In CHF m Underlying Trading Trading Operating Operating income/ plant and Net other trading Of which impairment of property, Of which restructuring Depreciation and Sales Profit Profit (expense) equipment costs amortization Zone North America 26 328 5 528 4 904 (624) (82) (43) (713) Zone Europe 19 128 3 138 2 719 (419) (199) (92) (829) Zone AOA 18 484 4 237 4 133 (104) (26) (44) (566) Zone Latin America 11 819 2 501 2 401 (100) (16) (11) (366) Zone Greater China 5 351 862 840 (22) (12) (15) (179) Nespresso 6 448 1 388 1 309 (79) (24) (7) (290) Nestlé Health Science 6 602 899 (596) (1495) (41) (42) (287) Other businesses 264 (17) (19) (2) (4) (38) Unallocated items (2433) (2 496) (63) 1 (19) (273) Total Group 94 424 16 103 13 195 (2 908) (403) (273) (3 541) 38 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#39FY-2022 Products - revenue and results In CHF m Underlying Trading Sales Operating Profit Trading Operating Net other trading Of which impairment of property, Of which income/ plant and restructuring Profit (expense) equipment costs Powdered and Liquid Beverages 25 218 5 593 5 358 (235) (63) (47) Water 3 536 277 241 (36) (8) (21) Milk products and Ice cream 11 289 2 568 2 508 (60) (17) (16) Nutrition and Health Science 15 678 2 990 1 323 (1667) (62) (68) Prepared dishes and cooking aids 12 484 2038 1 508 (530) (101) (57) Confectionery 8 118 1 364 1 259 (105) (42) (14) PetCare 18 101 3 706 3 494 (212) (111) (31) Unallocated items (2433) (2 496) (63) 1 (19) Total Group 39 February 16, 2023 Nestlé full-year results 2022 94 424 16 103 13 195 (2 908) (403) (273) Nestle Good food, Good life#40FY-2022 EPS reconciliation (1 of 2) From net profit to underlying net profit In CHF m FY-2022 FY-2021 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) 16 905 311 2 614 (235) 9 270 2 73 2 726 79 750 699 (7 270) 391 (684) (418) (57) (32) 12 334 2 788 4.42 12 988 2 707 4.80 40 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#41FY-2022 EPS reconciliation (2 of 2) From underlying trading operating profit to underlying net profit In CHF m Underlying trading operating profit Net financial income / (expense) Adjusted taxes Adjusted income from associates and joint ventures Adjusted non-controlling interests Underlying Net Profit Weighted Average number of shares outstanding (million) Underlying EPS (in CHF) FY-2021 15 119 (873) (2 945) 1 381 (348) 12 334 2 788 4.42 FY-2022 16 103 (1040) (3148) 1 431 (358) 12 988 2 707 4.80 41 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#42FY-2022 Currency overview Weighted average rate FY-2021 FY-2022 Variation in % US Dollar 1 USD 0.915 0.956 +4.5% Euro 1 EUR 1.081 1.004 -7.1% Chinese Yuan Renminbi 100 CNY 14.179 14.148 -0.2% Brazilian Real 100 BRL 16.988 18.555 +9.2% Philippine Peso 100 PHP 1.855 1.752 -5.5% UK Pound Sterling 1 GBP 1.257 1.175 -6.5% Mexican Peso 100 MXN 4.505 4.750 +5.4% Canadian Dollar 1 CAD 0.730 0.735 +0.6% Japanese Yen Australian Dollar Indian Rupee 100 JPY 0.831 0.725 -12.7% 1 AUD 0.686 0.663 -3.5% 100 INR 1.236 1.216 -1.6% 42 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#43Temporary increase in working capital expected to reverse Working capital as a % of sales, calculated on a 5-quarter average 1.6% 1.4% 2017 0.6% 0.1% 0.0% 1.9% 2018 2019 2020 2021 2022 * 2017 restated to reflect IFRS 15 and IFRS 16 43 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#44Free cash flow impacted by temporary items In CHF billion 8.7 1.1 -3.0 -0.4 0.2 Temporary increase in the context of supply constraints and the energy crisis in Europe 6.6 Free cash flow FY-2021 Adjusted EBITDA Working capital Tax Others Free cash flow FY-2022 44 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#45Abbreviations . 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) 45 February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life