#1Nestlé investor seminar 2022 Enhancing financial performance François-Xavier Roger EVP, Chief Financial Officer Garden VUNA VUNA#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 This presentation contains certain financial performance measures which are not defined by IFRS. Management believes that these non-IFRS measures provide additional useful information to assess the financial and operational performance of the Group. Such measures may not be comparable to similar measures presented by other companies and are explained and/or reconciled with our IFRS measures (Consolidated Financial Statements) in the Nestlé Group Alternative Performance Measures (APMs) document available on our Investor Website. November 29, 2022 Nestlé investor seminar 2022#3Significant transformation of Nestlé Product mix Sales 2012 9M 2022 3 Category Plant- based 1% November 29, 2022 ↓ NHSc 7% Coffee 19% PetCare 12% NHSc 2% Coffee 25% PetCare 19% Į Premium 11% Premium 33% Channel E-commerce 3% E-commerce 15% Other regions 43% Other regions 42% Geography ΝΑ 28% EUR 29% EUR 23% ΝΑ 35% Nestlé investor seminar 2022#4Resulting in strong financial performance 4 Organic growth % annual average 2017-21 +4.0% Underlying TOP margin bps increase 2017-21 + 140 bps ROIC excludes impairments such as Nestlé Skin Health in 2017, Yinlu in 2019 and Wyeth in 2021 November 29, 2022 Underlying EPS growth % annual average 2017-21 (in constant currency) +7.8% Return on invested capital bps increase 2017-21 + 300 bps Nestlé investor seminar 2022#5Utilizing multiple levers to create value 5 Levers of value creation November 29, 2022 1 Freeing up resources 2 Investing for future growth 3 Allocating capital prudently 4 Managing our portfolio for profitable growth Nestlé investor seminar 2022#6Restoring gross margin is key to enabling growth investments 6 48.3% 2017 48.7% 2018 Gross margin (Sales - Cost of good sold) / Sales November 29, 2022 49.0% 2019 49.1% 2020 47.8% 2021 2022 estimate ● • Implement responsible pricing ● ● Drivers ● Premiumize product offerings Drive cost efficiencies Secure strong growth leverage Manage portfolio actively Excluding Nestlé Skin Health. 2017 restated to reflect implementation of IFRS 15, IFRS 16 and reclassification of certain cost items from marketing and administration to cost of goods sold 1 Nestlé investor seminar 2022#7Stepping up savings and efficiencies to 2025 Recurring savings per annum Key drivers 7 November 29, 2022 2016-2021 ~ CHF 0.7 bn Production efficiencies Procurement synergies Shared service penetration Real estate optimization 2022-2025 > CHF 1.2 bn SKU optimization and new recipes Digitalization Connected operations Center cost optimization 1 Nestlé investor seminar 2022#8Securing growth leverage through strict structural cost control 8 8% 6% 4% 2% 0% -2% 2017 Organic growth Structural cost growth 2018 2019 Structural costs represents ~16% of net sales, mainly production, distribution and administrative fixed cost November 29, 2022 2020 ~70 bps of resources freed up historically 2021 -> → 1 Nestlé investor seminar 2022#9Investing selectively and efficiently to support future growth 2021 (CHF) 9 R&D 1.7 bn Increase productivity November 29, 2022 Marketing & trade spend 28 bn Raise investment Capex 5.1 bn Going forward ~ 5% of sales from 2025 Digital investments 0.3 bn Enhance investment Sustainability 0.5 bn > CHF 1 bn in 2023 and beyond 2 Nestlé investor seminar 2022#10Investing to create new categories is part of our DNA 2021 Sales (CHF) Underlying TOP margin Not all investments have the same success 10 November 29, 2022 NESPRESSO 11 years to breakeven ↓ 6.4 bn 23% Babyples NESCAFE Dolce Gusto 7 years to breakeven Baby Nes > 1.5 bn > 20% Palforzia Defatted powder of Arachis hypogaea L., semen (peanuts) Human Milk Oligosaccharides (HMOs) > CHF 200 m R&D investment 1.3 bn > 20% 2 Nestlé investor seminar 2022#11Developing growth segments through science & innovation Sales (2021, CHF) Organic growth (9M 2022) 11 November 29, 2022 Plant-based food Garden Gourmet RITES UNE SHRIMP VRIMP 0.8 bn 11% Allergy Nestlé Alfaré. Allergy HMO. 0.6 bn 30% Healthy aging Nesta BOOST OPTIMUM ACTIVE ADULT NUTRITIONAL POWDER DRINK PROTEIN WITH PRETEN MELLON CU OFFER RENOTH PROBATICE AMING 0.5 bn 13% 2 Nestlé investor seminar 2022#12Clear capital allocation priorities 12 ● Investing behind: Marketing Capex R&D ● Deploying capital for profitable growth ● Organic growth Sustainability Digitalization November 29, 2022 M&A ● Strategic, cultural and financial fit • Execution discipline • ROIC > WACC Returning capital to shareholders Dividend Practice of year-on- year dividend increase in CHF ● Share buybacks Use of excess cash 3 Nestlé investor seminar 2022#13Temporary increase in capex to meet higher demand Capex as % of sales Key projects 13 November 29, 2022 ONE LAMB & RICE FORMULA 4.5% 2016 2017 2018 2019 PetCare (dry) Eden, NC, U.S. PAN 5.8% 2020 2021 22 estimate PetCare (dry) Williamsburg, OH, U.S. CREAMER 2025 target ~5% sales Coffee & Beverages Glendale, AZ, U.S. Nespresso & Starbucks Romont, Switzerland 3 Nestlé investor seminar 2022#14Working capital temporarily impacted by supply constraints 14 8.5% Working capital as a % of sales calculated on a 5-quarter average *2017 restated, reflecting implementation of IFRS 15 and IFRS 16 November 29, 2022 2.2% 1.6%* 0.1%/ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 estimate 2025 target 0% of sales 3 Nestlé investor seminar 2022#15Sustaining strong cash flow generation 15 Free cash flow 10.4% 2017* 11.8% 2018 12.9% 2019 Cash generated from operations before changes in working capital and capex 2017 restated, reflecting implementation of IFRS 15 and IFRS 16 November 29, 2022 Cash flow as % sales 12.1% 2020 10.0% 2021 2022 estimate 2025 target Trending toward 12% of sales 3 Nestlé investor seminar 2022#16Pulling all levers to drive return on invested capital 16 11.2% 2016 11.4% 2017 12.1% 2018 ROIC after goodwill and intangible assets 13.1% 2019 14.7% 2020 14.2% 2021 2022 estimate ROIC restated to reflect implementation of IFRS 15 and IFRS 16 in 2017. Excludes impairments such as Nestlé Skin Health in 2017, Yinlu in 2019 and Wyeth in 2021 November 29, 2022 2025 target Trending toward 15% 3 Nestlé investor seminar 2022#17Efficient capital structure 17 Lower share count 30% fewer shares in issue vs. 2003 3.9 bn* 2003 ~ 2.7 bn 2022 estimate Net debt / EBITDA 2-3x range AA 1.2x 10 year avg. * Share count restated to reflect 1:10 share split which occurred in 2008 November 29, 2022 AA- ~ 2.4x 2022 estimate Cost of debt Low cost of net debt 2.5% 10 year avg. ~ 2.2% 2022 estimate Debt maturity Average debt maturity extended, securing liquidity 2.0 years 2016 ~ 6.9 years 3 2022 estimate Nestlé investor seminar 2022#18Active and disciplined portfolio management 2016 FAROE CEITORIA SWEET EARTH NATURAL FOODS FRONERI 18 BLUE BOTTLE COFFEE ATRIUM INNOVATIONS US CONTAN 100 GRAND CRUNCH Baby Ruth Buttertinger Confectionery Acquisitions Total transaction value of CHF 26 bn > CHF 50 bn of deal value reviewed but not pursued since 2017 Tails .com Based on deal value. Divestitures exclude L'Oréal transaction November 29, 2022 Gerber Life persona Nestlé Skin Health VITAL PROTEINS Zenpep aimmune freshly muun THERAPEUTICS Dreyers U.S Ice Cream Herta Divestitures Total transaction value of CHF 26 bn ՄՈԼURE + Poland Spring BORN IN MAINE 4 THE BOUNTIFUL Orgain. COMPANY North America Waters BETTER HEALTH company puravida 2022 Nestlé investor seminar 2022#19Creating significant value through portfolio management 19 Positive and material impact from M&A + 50 bps Average contribution to organic growth 2017-2021 From transactions between 2017-2021 November 29, 2022 ~ 1/3 of underlying TOP margin increase since 2017 Addressing underperforming businesses Examples Dairy Middle East & North Africa Removed commoditized dairy products from portfolio D2C Japan Discontinued 80% of SKUs to remove complexity Dairy Brazil Eliminated loss-making SKUs such as Moça Doceria 4 Nestlé investor seminar 2022#20Significant value creation through M&A 20 First 3 years Achieving or exceeding acquisition plan on top- and bottom-line VITAL PROTEINS Zenpep Our M&A scorecard reviewed on an annual basis X Palforzia Defatted powder of Arachis hypogaea L., semen (peanuts) THE BOUNTIFUL COMPANY + freshly Mid-term ROIC > WACC in 5 - 7 years ATRIUM INNOVATIONS For transactions > CHF 0.5 bn between 2018-2021 Value created calculated at lower multiples than at acquisition applied to 2022 EBITDA, plus tax savings and with conservative impairment scenario for Palforzia November 29, 2022 Outcome 83% of transactions by value achieving or exceeding acquisition plans CHF 7 - 9 bn of value created over acquisition price (11% -13% annual return) 4 Nestlé investor seminar 2022#21Our value creation model and 2025 targets 21 Sustainable organic sales growth mid single-digit Working capital 0% of sales Dividend Operating performance Underlying TOP margin 17.5 -18.5% maintain practice increase y-o-y in CHF Annual underlying EPS growth 6 - 10% Capital discipline Capex ~ 5% of sales Financial policy Net Debt / EBITDA 2.0-3.0x Organic growth may exceed the mid single-digit level if pricing is materially above the average level of the last 10 years Underlying EPS growth in constant currency. Underlying EPS growth and ROIC targets exclude any significant M&A activity Working capital calculated on a 5-quarter average November 29, 2022 Free Cash Flow trending toward 12% of sales ROIC trending toward 15% Value creation for both society and our shareholders Share buybacks return excess cash Nestlé investor seminar 2022