#1Nestle Good food, Good life Determined to Keep Strong Nestlé India Full Year Earnings Call 17 February 2022 ON के गुण पाएं MAGG® बनायें#2Disclaimers ⋅ Except for the historical financial information contained herein, 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 in public domain. • No person is authorised to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or presentation must not be relied upon as having been authorised by or on behalf of Nestlé India Limited. Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference Nestle Good food, Good life#3Agenda 16:00 - 16:20 Determined to Keep Strong Suresh Narayanan 16:20 - 16:45 Q&A Nestle India Full Year Earnings Call, 17th Feb 2022 Mo Wen 5 12 13 1 15 22 2 30 31 18 20 24 27 Image used as reference Nestle Good food, Good life#4Determined to Keep Strong By Suresh Narayanan Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference Nestle Good food, Good life#5Key Takeaways Last Time Unwavering Commitment to India Leveraging the RURBAN opportunities Strive to continue robust business model Sustainability across our Operations Caring for Communities a way of life Nestle India Full Year Earnings Call, 17th Feb 2022 A Vibrant Workplace fit for the future Images used as reference Nestle Good food, Good life#6Insights into a dynamic and resilient organization FY21 Results, Q421, and Underlying Performance Nestle India Full Year Earnings Call, 17th Feb 2022 Reimagining retirement benefits Digital and Analytics Journey Sustainability Images used as reference Nestle Good food, Good life#7Key Highlights: Strong growth continues; Profit from operations improved Total Sales Profit from Operations# Growth 10.1% 21.7% Growth 13.1% 22.2% 132.9 146.3 28.8 32.5 FY 2020 FY 2021 FY 2020 FY 2021 Total Sales (INR Bio) Profit from Operations (INR Bio) % of Sales Net Profit 15.7% Growth 3.0%/11.5%* 15.9%* 14.7% 23.2* FY 2021 Earnings Per Share (EPS) Growth 3.0%/11.5%* 241* 20.8 21.4 216 222 FY 2020 FY 2021 FY 2020 FY 2021 Net Profit (INR Bio) % of Sales (Reported) Earnings Per Share (INR) *Comparable values without the impact of Exceptional Item (Transition cost of Pension Plan) Nestle India Full Year Earnings Call, 17th Feb 2022 #Profit from Operations is derived from Profit before Tax less Other Income and adding back Finance Costs (Including Interest Cost on Nestle Good food, Good life Employee Benefit Plans), Net Provision For Contingencies (Others), Corporate Social Responsibility Expense and Exceptional Items.#8Key Highlights: Robust growth continues; Profit from operations improved Total Sales Profit from Operations* Growth 8.4% 20.0% Growth 14.7% 21.1% 14.1% Net Profit Growth -20.0%/16.6%* 15.2%* 10.4% Q4 2021 Earnings Per Share Growth -20.0%/16.6%* 58* 5.6* 50 34.2 37.1 6.8 7.8 4.8 3.9 Q4 2020 40 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Total Sales (INR Bio) Profit from Operations (INR Bio) % of Sales Net Profit (INR Bio) % of Sales (Reported) Earnings Per Share (INR) *Comparable values without the impact of Exceptional Item (Transition cost of Pension Plan) Nestle India Full Year Earnings Call, 17th Feb 2022 #Profit from Operations is derived from Profit before Tax less Other Income and adding back Finance Costs (Including Interest Cost on Nestle Good food, Good life Employee Benefit Plans), Net Provision For Contingencies (Others), Corporate Social Responsibility Expense and Exceptional Items.#9Sustained Volume & Mix Led Growth 12.5 8.4 11.6 9.6 9.6 5.7 343 382 424 457 468 520 2016 2017 2018 2019 2020 2021 Domestic Vol ('000 Tons) * Volume & Mix Growth % Nestle India Full Year Earnings Call, 17th Feb 2022 CAGR 2016-21 10.5% 13.0 9.1 8.9 8.0 128 129 136 127 Q1-21 Q2-21 Q3-21 Q4-21 Domestic Vol ('000 Tons) * Volume and Mix Growth computed as per Internal reporting standards * Volume & Mix Growth % Nestle Good food, Good life#10Leading to Strong Value Growth 16.9 8.2 10.9 10.9 8.5 10.7 88 95 105 117 126 140 2016 2017 2018 2019 2020 2021 Domestic Sales (Bio) Reported Growth % Nestle India Full Year Earnings Call, 17th Feb 2022 CAGR 2016-21 10.4% 10.2 13.7 10.1 9.2 34 33 37 36 Q1-21 Q2-21 Q3-21 Q4-21 Domestic Sales (Bio) Reported Growth % Nestle Good food, Good life#11Growth by Town Class: Strong and Sustained Mega City Metro 26.8 13.6 7.7 9.9 8.7 (9.8) (5.9) (7.1) (6.3) 19.5 15.4 16.1 8.3 5.1 7.5 6.3 100 83 92 89 94 91 100 101 100 86 102 102 108 103 109 108 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 INNS (Indexed to Q1 2020) Q2'21 Q3'21 Q4'21 -OG % Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 INNS (Indexed to Q1 2020) -OG % TC 1 TC 2-6 Villages 21.5 17.0 16.6 13.7 14.8 15.9 13.7 21.0 12.3 9.3 6.7 5.7 9.1 9.8 11.0 12.0 15.0 12.0 10.0 9.0 4.0 4.3 2.0 0.1 Q1'20 Q2'20 3'20 Q4'20 Nestle India Full Year Earnings Call, 17th Feb 2022 100 87 101 100 107 101 107 105 Q1'21 Q2'21 o, Q3'21 Q4'21 -OG % 100 93 105 100 112 109 122 114 Q1'20 Q4'20 Q1'21 QQ2'21 102xed to Q1 2020) Mega City Q3'21 Q4'21 Town Class based on population TC 1 40L .OG % Metro 10L & <40L 1L & <10L Rural 25 to 10000 + TC 2-6 >=1L 100 98 117 112 135 125 123 110 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 INNS (Indexed to Q1 2020) -OG % Nestle Good food, Good life#12Accelerated Profit from Operations 18.1 17.6 21.7 22.2 21.0 21.1 17 18 24 26 29 33 2016 2017 2018 2019 2020 2021 Profit from Operations (INR Bio) % of Net Sales Nestle India Full Year Earnings Call, 17th Feb 2022 CAGR 2016-21 23.3 22.2 22.3 21.1 16.0% 8 8 9 Q1-21 Q2-21 Q3-21 Q4-21 Profit from Operations (INR Bio) % of Net Sales Nestle Good food, Good life#13And Accelerated Net Profit Net Profit for 2021 reduced by Exceptional Item (Transition cost for Pension Plan) 16.0 15.7 15.9 14.3 14.7 12.1 10.6 23 10 12 16 20 21 21 2016 2017 2018 2019 2020 2021 Net Profit (INR Bio) % of Net Sales (Comparable) % of Net Sales Nestle India Full Year Earnings Call, 17th Feb 2022 CAGR 2016-21 25.0% Net Profit for Quarter- 4 reduced by Exceptional Item (Transition cost for Pension Plan) 16.7 16.0 15.6 15.2 10.4 5 6 4 Q1-21 Q2-21 Q3-21 Q4-21 Net Profit (INR Bio) % of Net Sales (Comparable) % of Net Sales Nestle Good food, Good life#14Domestic Sales: Broad Based Performance Across All Product Groups Milk Products and Nutrition Prepared dishes and cooking aids Confectionery NANGROW LACTO GROW ت Magal magic Magi Minuts Sumate cubes sugcharin PAZZTA Maggi coconut 0 www 10% EXTRA Nestle CLASSIC DESSERT NOING a+ nourish CaseLoc ORGANIC SELECTION NIIN OPTIFAST EveryDay Nes Ceregrow Neste OATS мное Rich tomate Wick timote Richke VEG ATTA www NEBAS POLO COOL RUSH NEW NEW Bar One GUR Milkybar mere Creamy Yoummy Miskybar FY 2021 Powdered and liquid beverages NISTRE NESCAF MILD Sunrise GAZEN 42.4% 2.6%* 31.8% 16.7% 14.8% 20.4% 11.0% 16.1% Contribution Growth Contribution Growth *High base effect Contribution Growth Contribution Growth Data represents Jan-Dec 2021 10.7% Domestic Sales Growth Nestle India Full Year Earnings Call, 17th Feb 2022 Nestle Good food, Good life#15Innovation Continues as a Priority 1.5 2.7 3.4 4.4 4.3 6.0 4.9 5.0 2016 2017 2018 2019 2020 2021 INPDI Sales (Mio) % Contribution to domestic sales 2 ~ 20 new Projects in Pipeline New Categories being considered Nestle India Full Year Earnings Call, 17th Feb 2022 4.0 2.0 10 Over 100 new products in last 5 years Nestle Good food, Good life#16Thereby, Creating Significant Value for Investors Total Shareholders Return 3,638% Annualized Return 19.8% *As at 31st Dec 2021 INR Billion is INR 100 crore. Source: Bombay Stock Exchange. Nestle India Full Year Earnings Call, 17th Feb 2022 INR 50 Bn 2001 USD 1.1 Bn (1 USD INR 47.2) Market Capitalization Up 38.2 times vs. FMCG Benchmark Index 14.7 times INR 1,900 Bn 2021* USD 25.6 Bn (1 USD INR 74.3) Nestle Good food, Good life#17Storm Clouds on the Horizon - Global Commodity Prices Recent Market versus historical commodity prices % gap versus 10 year mean 100% 110 Y MIN 10 Y MAX -10 Year Mean (= 0%) ▲ Latest Prices 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% Arabica Robusta Edible Sugar Coffee Coffee Oil Wheat Flour SMP Fresh Milk Brent Aluminium Tinplate Plastic Crude -PP Paper Glass Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference Nestle Good food, Good life#18Reimagining Retirement Benefits Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference Nestic Good food, Good life#19The Future Ready Plan Benefits to Employees ✓ Security: fully funded plan managed by financial experts ✓ Portability: fully portable benefits irrespective of age and service ✓ Flexibility: choice of annuity products basis financial needs Earlier Pension Plan ✓ Defined Benefit Pension Plan was unfunded No portability ✓ Pension eligibility only at retirement 'Future Ready Plan' Aligned to market practice and is fully funded ✓ A combination of Frozen Defined Benefits for past services and Defined Contribution for future services Benefits to Investors ✓ Embedded risk of a Defined Benefit Plan mitigated bringing future cost certainty ✓ Favorable impact in the future Financial Impact ✓ Approximate Two thirds of the Defined Benefit Pension Liability covered ✓ One-time, Exceptional cost of INR 2.4 Billion [EPS lower by ~ INR 18.] ✓ Investment of INR 13.7 Billion covering the obligation under the plan Nestle India Full Year Earnings Call, 17th Feb 2022 Image used as reference Nestle Good food, Good life#20Transforming ourselves with Digital and Analytics Maggi NESCAFE® GOLD Kicka DESSERT DELION It's the season to unwrap a Dessert Break L о V E D T A S T Y Y U M M Y CELEBRATE THE BONDS THAT MATTER RAKHI SPECIAL PACK T A N G Y G NESCAFE GOLD E E L COFFEE BLEND AT ITS M A G G I BEST NESCAFE GOLD BLEND FINISHED? Be a force for good Now give us your used carton to make a desk. Nestle Cartons -2- at Classroom A unique program to convert used milk and other beverage cartons into school desks for less privileged children, in partnership with Join us to make 100+ desks CORECAL Program partners with Tetra Pak MILO INDIAA! WINDIAAA! SMART ru READY WITH YOUR #WINNINGENERGY? ONE MORE STEP... to build a cleaner India. MILO and NESCAFE Ready to Drink beverages now come with paper straws. MILO Nestle India Full Year Earnings Call, 17th Feb 2022 30 NISTR NOSO NESCIP Nestle. MILO Maggi moments that matter Love in a bowl ft. MAGGI® DESSERT DELIGHT Trompting Truffle Chocolate Where fers to Mik Seh Milkybar #Perfect Partner ENJOY AN EXCITED Kit Kat EXCITED BREAK BREAK NOW!#21Multi-Intelligent Data Analytics System - Data-Fed, Analytics- Led, Future Ready Platform for Business Interventions Enterprise-wide Data warehouse Cockpits for Business Management Advanced Analytical Models Retailer Segmentatio Dynamic Forecast Order Reco Nestle India Full Year Earnings Call, 17th Feb 2022 ווי Brand Review Sales Planning Supply Chain Planning Growth Planning Channels and E- Commerce Demand Forecasting Nestle Good food, Good life#22Granular Clusters - Leveraging the geographic dispersion within India Harnessing granular data lakes Big data Analytics Mapping potential of geo-targeted clusters 6260 UA towns Income Consumption 555K+ Villages (100+ population) Savings/ investments Infrastructure 09 島 Media exposure Sources: Reserve Bank of India, Census of India, Economic Census Survey - Urban and Rural Sector, IRS Indian Readership & Other Media Data, Agriculture Prices in India, Fertiliser and Agriculture Statistics, Indiastat.com Nestle India Full Year Earnings Call, 17th Feb 2022 map is not to scale and for illustration purposes only Nestle Good food, Good life#23Market Mix Modelling: Tangled web of marketing activity data unraveled Nestle India Full Year Earnings Call, 17th Feb 2022 Base Print Trade Digital paid Outdoor format PR 01 Optimize media investments Digital earned 02 Better leverage trade assets Digital owned 03 Build long term equity TV 04 Augment portfolio strategy 50 05 Tactical growth driver Nestle Good food, Good life#24You Can Always Ask Nestlé Ask Nestle.in Child Nutrition Simplified Brought alive Nestlé corporates trust credentials via a service ecosystem Authentic, Relevant, Applicable Tools & Trackers and Regional Content Built positive inclination towards brands and stronger business connect with focus on first party data for a cookie less future FOR INDIVIDUALS & FAMILIES 2021 Key Figures AD Healthy Recipes Expert Advice Custom Meal Plan שושן Track Growth 4.8 Mio Visits 23% Repeats Nestle India Full Year Earnings Call, 17th Feb 2022 Give us PII NANGROW AskNestle Community New User visits Asknestle.in Cookie pool data Drive Traffic Allows for improved CTR and Cost Efficiencies to Brand website YouTube Milkybar MARGI Ceregrav MILO Build Trust And Advocacy Google Ads Facebook Ads Sampled website- interacted with tools, and recipes interspersed with brands Include as part of shopping list 9.3 K Registrations 48 Sec Average Time on site 61.7% Bounce Rate Nestle Good food, Good life#25OUR SUSTAINABILITY JOURNEY TEN YEARS OF THE NESCAFE PLAN NESCAFE Sunrise Nestle India Full Year Earnings Call, 17th Feb 2022 NESCAFE [:) pictures taken pre-pandemic Nestle Good food, Good life#26NESCAFÉ Plan - 3 Pillars Launched in 2012 with a demo farm and training center at Kushalnagar Farmers To exert a positive and sustainable change in the livelihood of coffee farmers, their families and farm workers Community The resilience and prosperity of farming communities and the stakeholders across our value chain Planet The sustainable management of landscapes linked to our value chain Monitoring and Evaluation (M&E) of the progress is assessed by a third party every year Nestle India Full Year Earnings Call, 17th Feb 2022 Nestle Good food, Good life#27The NESCAFÉ Plan pictures taken pre-pandemic NESCAFE Coffee Training Cent Coff The Flow Sid CUP OF RESPECT Improving livelihoods ✓ Better varieties - Trials under Coffee board Yield improvement through the training by our Agronomists Responsible Sourcing ✓ Traceability and the transparency - Where is it coming from and how is it produced ✓ Sustainability 4C Certification of farms Environmental Impact ✔ Soil test and fertilizer recommendation according to the plant requirement and protecting soil ✓ Reduced water usage for the irrigation Nestle India Full Year Earnings Call, 17th Feb 2022 Nestle Good food, Good life#28Sustainability in Coffee Procurement THE LAUNCH OF THE NESCAFÉ PLAN MARKED THE BEGINNING OF A STRONGER SUSTAINABILITY STRATEGY 2012 3 4400 er NESCAFÉ Plan Launched States covered Farmers connect 18% 23% 2500 Slow roasted 30%+ of coffee sourced sustainably 251 Yield increase in farms Water savings on farm Soil samples tested Villages Nestle India Full Year Earnings Call, 17th Feb 2022 INR 3.5/Kilo 7000 tonnes premium for sustainably sourced coffee of sustainable coffee purchased by us last year CUP OF RESPECT POURING RESPECT FOR PEOPLE AND THE PLANET INTO YOUR CUP. THAT'S THE QUALITY COFFEE THAT COMES FROM THE NESCAFÉ PLAN. Nestle Good food, Good life#29Key Takeaways This Time Sustainable Volume Led Growth Strong Value Growth across Rural and Urban India Sustainable performance Innovation continues to be an engine of growth Implemented future ready plans for our people Strong commitment to transform using data and analytics Sustainable initiatives at the core of being a force for good Immediate concerns on inflation, while the road looks promising Nestle India Full Year Earnings Call, 17th Feb 2022 Images used as reference Nestle Good food, Good life#30Determined in Adversity, Inspired to Grow. LIONS OF PROJECT OCEAN, GUJARAT WESTLE Nestle Good food, Good life