#1Nestle Good Food, Good Life Nutrition Winning with science, innovation and speed in the First 1 000 Days Thierry Philardeau Head of Nutrition SBU#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 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. Nestle 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. 2 May 7, 2019 Nestlé Investor Seminar 2019#3Infant nutrition, a growing and competitive category Category outlook 3.2% CAGR Regional growth Category 2018: CHF 70 bn CAGR 2016-2018:+6.7% Nestlé Competitive landscape 2018 market share CHF 82 bn CHF 70 bn 2018 2023 20.0% AOA 60%* Nestlé Others CAGR +8.6% 37.4% EMENA Danone 12.7% 23%* CAGR +4.4% Reckitt B. 8.5% Yili Abbott 7.5% AMS Mengniu Hipp Feihe 17%* CAGR +3.3% Kraft Heinz 2.4% 3.0% Friesland 3.3% * % of 2018 category retail sales Source: Euromonitor, 2016-18 based on current prices, 2018-23 based on constant prices 3 May 7, 2019 Nestlé Investor Seminar 2019#4Category will continue to grow and ample innovation opportunities still exist Scientifically proven innovation HM-0 Naturalization and new food beliefs Naturally healthy Nestle Late stage products beyond 1 000 days Human Milk Oligosaccharides (HMO) WA OPTIPRO. 4 May 7, 2019 Nestlé Investor Seminar 2019 Ancient grains ORGANIC#5Our business enjoys a unique competitive position A balanced geographic footprint Nestlé infant nutrition 2018 sales* 7 billionaire brands 86% of the business - Supported by unsurpassed nutrition & scientific expertise Nestle An engaged SBU-Zones-Markets organization EMENA 21% AMS 29% AOA 50% Nestle NAN illuma Nestle NIDO Wyeth' S-26 Nestle LACTOGEN 223 patents in past 5 years 33 on-going clinical studies 1 fundamental R&D center 4 Product technology centers 15 000 passionate employees 450 nutrition science & technology experts Gerber. * Includes infant formula, baby food; Excludes Gerber Life Insurance 5 May 7, 2019 Nestlé Investor Seminar 2019 Nestle Cerelac#6Re-organized to win with speed and agility Gained speed, agility and efficacy... having reduced structural costs in 12 months... and increased speed to market Nestle • • • 1 Strategic Business Unit with authority and embedded R&D 3 agile regions reporting to Zone leadership Markets timely and efficient execution and adaptation of the strategy -16% 2017 2018 * Refers to above-market structural costs only 6 May 7, 2019 Nestlé Investor Seminar 2019 -Nestle HM-0 NAN SUPREMEPRO S26 GOLD PROGRESS HMO illuma Growing Up Perde Mil P Muna 44 markets in 12 months#7Growth acceleration while maintaining strong margins Nestlé infant nutrition* Organic growth +320 bps 2017 2018 7 * Includes infant formula, baby food; Excludes Gerber Life Insurance May 7, 2019 Nestlé Investor Seminar 2019 Underlying TOP +40 bps 2017 2018 Nestle#8Our vision Become a recognized, trusted business and societal leader in infant and parenting nutritional solutions for the First 1 000 Days of Life • Breastfeeding is the ideal nutrition for babies Deliver cutting-edge innovation and services to all parents and babies • Every child has the right to the best possible first thousand days of life All mums should feel respected and at peace with their decision about how to feed their baby • Lead the industry in responsible marketing practices International Code of Marketing of Breast-milk Substitutes ACCESS TO NUTRITION INDEX™ 8 May 7, 2019 Nestlé Investor Seminar 2019 FTSE4Good World Health Organization Geneva Nestle#9Nestlé 'First 1 000 Days', together nurturing a healthier generation Leading products and brands Essential services for parents and healthcare professionals Maternal nutrition Breastfeeding is Best Nestle MOM 雀巢妈妈…… Nestle Pre NAN Human Milk Fortifier * but under some medical conditions needs to be supplemented Nestle Materna Premature Nestle Pre NAN 9 May 7, 2019 Nestlé Investor Seminar 2019 Infant formula & growing-up milks A Nestle illuma Nestle NAN LACTOGEN Nestle Cerelac INFANT CEREALS WITH WE Infant cereals Nestle Nestum Nestle Mucilon CEREALS Meals & drinks Nestle Baby&me Lactation Gerber NNI Nestlé Nutrition Institute First 2 years Nestle Wyet S26 Nestle NIDO Nestle INIAN CEREALS Nestle NaturNes Organic Gerber:#104 key strategic priorities Continue to build our leadership in Greater China Region (GCR) 2 Strengthen infant formula leadership globally 3 Turnaround GERBER US Realize CERELAC full potential 10 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#11The Chinese market is pivotal to category leadership receptive to innovation with new business Large & growing... and premiumization... models... Nestle and a uniquely competitive landscape 1/8 OF BIRTHS 1/3 OF CATEGORY SALES 1/2+ OF 2018-21 GROWTH Cutting-edge science Lutein A phospholipid from whey protein Sphingomyelin Choline 11 May 7, 2019 Nestlé Investor Seminar 2019 Innovative baby stores Nutrition market shares % Nestlé 14.3% 250+ brands from non top Advanced e-commerce JD. 京东 .COM 8.5% 10 players 7.7% 天猫 THALLCOM 37.5% Predominant component of retina of the eye WeChat微信 Unique cross-border Supports overall mental functioning Important building DHA block for brain and eyes development 考拉海购 KAOLA.COM FTZ 6.0% 3.3% 5.8% 3.5% 4.3% 4.5% 4.7% daigous 020 Source: Euromonitor#121 Seize new opportunities to strengthen our leadership Lead in innovation to strengthen our 3 large brands Execute tailor-made strategy in 3rd/4th tier cities Accelerate domestic and cross-border e-commerce Nestle Expand in baby food with organic га 3 +255 23:33 Luxad7-10-3rd 3 S26 S-26 GOLD ULTIMA PROGRESS PROGRESS NAN.. NAN 超启能恩 瑞铂能恩 3 3 PERSIS 配方奶粉(12-36月龄:3段) (配方奶粉(12-38月齡:3段) 3 2017 birth rate 6.22 2017 # of births 05 10 1.5 12 May 7, 2019 Nestlé Investor Seminar 2019 Orignar Partner with reference players, category captainship bad 天猫 THALLCO 京东 JD.COM Accelerate launch of innovation via cross-border Nestle illuma NAN OPTIPro Organic Yogurt Melts Ferries Dedicate cross-border e-commerce organization Source: National Bureau of Statistics Gerber ** 有机 無味营养米粉 225 初 Gerber Gerber Gerber SUCKERE 368#132 Strengthen further our infant formula global leadership Balanced geographic footprint Strong market position (Euromonitor data) Nestlé infant formula 2018 sales Nestlé sales Nestlé rank Nestle Delivering profitable growth Organic growth +470 bps GCR EMENA 3% # 4 and beyond 15% # 3 AOA 22% excl. GCR #2 59% AMS # 1 13 May 7, 2019 Nestlé Investor Seminar 2019 2018 2017 2018 Underlying TOP +60 bps 2017 2018#142 Lead innovation to create further gap With cutting-edge nutrition, clinically proven With organic and new With the latest innovation 'naturality' for specific baby conditions Nestle With age adapted nutrition through the 1 000 days and beyond Nestle NAN SUPREMEPTO Wyeth S-26 ULTIMA RAHOLICH FOR HM-O 3 S-26 # 1 in HMOs Organic PROGRESS 44 markets Happy healthy growth 5 markets Nesta LACTOGROW 3 -Nestlé NAN OPTIpro 3 NAN, protein expert 70 markets 14 May 7, 2019 Nestlé Investor Seminar 2019 CPMOF INSPIRED IN LATE Nestle NAN OPTI pro Organic sma TO3 YEARS GOLF ME K ORGAN C Organic formula 24 markets -Nestle NAN OPTI pro A2 BY Nestle NAN EXPERT Pro HA NESIVE NIDO My first steps Nutribd Clear leader in Hypoallergenic Motor skills Nestle NIDO My first friends Nestle NAN EXPERT Pro SENSITIVE Nestle NAN EXPERT pro LIFELONG Nestle NAN EXPERT pro A.R. N NIDO My first wins Nutribos Comprehensive suite for a variety of baby conditions Autonomy Social skills#153 Turnaround GERBER US Relaunch executed Restaged the core • Impactful new design . Pouch acceleration . Variety and on-trend ingredients Accelerated organic Gerber hart Fo plantsYUM! Organic Veggie Crisps Orange Harvest 5 Organic Organic Gerber. Smart Flow Smart Flow? Strong Strong Oatmeal & Barley Apple Cinnamon Toddler ATHEADSTONE ROV Gerber. Organic Oatmeal Dedicated line Innovation across segments 15 May 7, 2019 Nestlé Investor Seminar 2019 Needs further acceleration Gaining momentum in organic 16.5% GERBER Market share in organic 2017 Need to reinvent the core 17.1% 2018 Nestle Market share, rank 27% +10.8% 29% 17.1%, #3 Baby food market growth 74.4%, #1 73% 71% ■ Organic ▼-2.7% ■ Core 2017 2018 Source: Euromonitor, Nielsen#163 Execute a profound transformation of our business Bring 'naturality' to the core range Further deepen our organic offer Win in growing channels Nestle Lead with best-in-class personalized services ION-GMO-Gerber- NON-GMO Gerber Natural V Apple with Vitamin Gerber Sitter 2nd Foods Clean labels Stringent farming practices 20 launches Q2 2019 Gerber Organic for Baby Organic Popped Crisps with Green and Gerber. Organic FRUITS & VEGGIEST Fruit & Veggie Bar Date & Carrot OMO Organic SALLY WRAPPED BARS NET WT 42012 Toddler 11-manth Organic Teethers 21 launches Q2 2019 16 May 7, 2019 Nestlé Investor Seminar 2019 Walmart amazon WHOLE FOODS MARKET Kroger instacart DOTTI PERSONAL BY EXPERT BABY • 10 000 personalized interactions / month • 24/7 service • Real advice from Infant Nutritionists#174 CERELAC: fully realize the potential of infant cereals Clear leadership in weaning food... Global market share in infant cereals Nestlé 26% 36% Nestlé Main competitor 29% 9% Other identified competitors Unnamed competition and still ample growth opportunities Geographic expansion Consumption (kg/baby*) 11.3 0.7 1.5 Sub-Saharan Africa China Brazil Nestlé market share in top 10 markets (72% global market) Consumption occasions 88% State of the art nutrition 76% 74% 82% 64% 49% 55% 24% China Brazil India #1 #1 #1 #1 #1 26% 24% Nigeria Saudi Vietnam Russia Arabia #2 #2 US Indonesia Pakistan #1 #1 #1 * Estimated as number of annual births 17 May 7, 2019 Nestlé Investor Seminar 2019 Source: Euromonitor, Nielsen, internal market data Nestle#184 Realize CERELAC full potential Rollout no-added sugar and zero sucrose Drive new 'cereals' ideology Drive affordability to conquer new markets Nestle Expand consumption to snacking and meals Cerelac From 6 Months Nestle Cerelac INFANT CEREALS WITH MILK No added sugars Cerelac NATURE'S SELECTION Organic 6 Organic SET KUT Wheat & banana 20 markets tukest Apple Ancient grains 18 | May 7, 2019 Nestlé Investor Seminar 2019 SELECTION &&& Mucilon NATURE'S SELECTION Super Grain 11 markets Nestle NIDO Choose QUALITY, Choose NESTLE MILD NIDO NIDO Ideal Nestle Cerelac NutriPuffs NESCAFE Bonson&Orange Nestle Cerelac NutriPuffs Tomato & Onion Nest Nestle Cerelac Cerelac Cerelac Designed for your dy Healthy snacks 18 markets Nestle Cerelac Rice Chicken Stew July pro 12 markets Savory meals#19Leading the industry in responsible marketing International Code of Marketing of Breast milk Substitutes Feb. 1982 First set of instructions implementing the WHO Code Sept. 1982 Revised instructions in consultation with WHO and UNICEF Nest Policy and instruction of the WHO international Codul Mihoong of Bam Sumne Nesta FTSE4Good B Po ACCESS TO NUTRITION INDEX™ • • Manity Protacion Policy 19 May 7, 2019 1996, 2004 Subsequent revisions of the Nestlé policy 2011 Change in the policy FTSE4Good inclusion criteria 2017-19 Stakeholders convening in London Industry-leading policies to market breast milk substitutes responsibly External and internal auditing • FTSE4Good • ATNI • Internal audits Nestle • 28 internal and external audits 11 employees dismissed after due process • Progressive Maternity Protection Policy 425 breastfeeding rooms at Nestlé 5 437 external breastfeeding rooms • Nestlé Investor Seminar 2019#20We are well positioned to continue to win • 7 trusted brands • Innovation based on unsurpassed early life nutrition science Advantaged geographical footprint • A complete portfolio of nutritional solutions for the 'First 1 000 Days' 20 20 May 7, 2019 Nestlé Investor Seminar 2019 Nestle