#1Nestle Good Food, Good Life Winning in PetCare Joe Sivewright CEO, PURINA Americas Nina Leigh Krueger President, North America Pet Food Nestlé PURINA.#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#3Global pet care category PURINA global business US pet care category PURINA US strategy Global pet care category is large and growing Category outlook 7% CAGR CHF Regional growth Category 2018: CHF 82.5 bn CAGR 2016-2018:+6% North America Nestle Competitive landscape 2018 market share 24.0% 118 bn 39%* 42.8% CAGR +5% CHF 82.5 bn EMENA 32%* 21.3% CAGR +4% LATAM 2.7% 4.4% 4.8% 11%* CAGR +13% AOA 18%* 2018 2023 CAGR +11% ■Mars ■ Purina ■ Colgate ■General Mills Smucker's Others *% of 2018 category sales Source: Euromonitor 2019 edition - Pet care includes only dog & cat food 3 May 7, 2019 Nestlé Investor Seminar 2019#4Global pet care category PURINA global business US pet care category PURINA US strategy And has strong drivers for continued growth Pet population* Pet ownership Emerging markets Nestle Total: 844 m % Household penetration Commercial coverage % ** 37% 471 m +4.4% 373 m +5.6% 4 May 7, 2019 Nestlé Investor Seminar 2019 34% 11% 18% Cats Dogs ■U.S. ■ China 76% Developed 32% Emerging * Pet population vs. 2017; Source: Euromonitor 2019 edition, 2018 ** Commercial coverage refers to % of overall pet nutrition derived from commercially prepared pet food#5Global pet care category PURINA global business US pet care category PURINA US strategy Younger generations are more valuable than ever Acquiring pets younger- 8 years earlier* 00 21 Already spend more on pet food/treats *** Stronger future intent to acquire pets* intend to EVER acquire another pet intend to acquire another pet in NEXT 12 MONTHS 54% 21% 42% 18% ** 5 May 7, 2019 Nestlé Investor Seminar 2019 Nestle MILLENNIALS NON-MILLENNIALS More likely to want to take pet everywhere **** $ MILLENNIALS NON-MILLENNIALS * Source: Wakefield research (2014) ** Pet attitude study (2017) **** Clear millennial study (2018) *** Directions millennial pet category behavior tracker (September, 2018)#6Global pet care category PURINA global business US pet care category PURINA US strategy Pet care is a highly attractive category Strong pet owning culture Pet ownership highly desirable and aspirational • Pets considered members of the family For retailers • High value shoppers • Top tier traffic driver • High basket value Above average retail margins For Nestlé · Highly aligned with Nestlé NHW principles · • • Strong category growth with above-average margins Pet parents highly brand loyal Unsurpassed nutritional science and R&D capabilities 6 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#7Global pet care category PURINA global business US pet care category PURINA US strategy PURINA PetCare has a global presence Key 2018 figures Where Sales CHF 12.8 bn Underlying TOP 21.6% What Nestle EMENA 27% Dry dog Wet cat Dry cat AOA 31% 30% 20% AMS 69% 4% Others* Wet dog 14% 5% 7 May 7, 2019 Nestlé Investor Seminar 2019 * Other refers to snacks, litter and therapeutic diets / supplements#8Global pet care category PURINA global business US pet care category PURINA US strategy Global billion dollar brands PURINA PURINA Friskies ONE PURINA felix 8 May 7, 2019 Nestlé Investor Seminar 2019 PURINA PURINA Fancy Feast PURINA DOG CHOW Always Crafted in the USA PURINA Nestle GOURMET PRO PLAN Source: Euromonitor 2018 edition#9Global pet care category PURINA global business US pet care category PURINA US strategy A critical contributor to Nestlé growth and profit % of Group total (2018) Organic growth Underlying TOP* Nestle 14.0% Sales UTOP 15.4% 3.0% 4.5% 21.6% 21.5% PURINA PetCare Nestlé Group 2017 2018 9 May 7, 2019 Nestlé Investor Seminar 2019 2017 2018 * Underlying trading operating profit (UTOP) before unallocated items#10PURINA 725 R 10 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#11US pet care overview & PURINA strategy 666#12Global pet care category PURINA global business US pet care category US: The largest pet care market in the world Pet care category: USD 32 bn* Pet-owning households: 61% own a pet** Pet population: 178 m** High-value shoppers: High brand loyalty*** • Spend 31% more** **** #2 trip driver*** #2 highest spend per household (>USD 270/year)* **** PURINA US strategy Nestle * Source: Nielsen AOC+ Nielsen pet specialty POS (former GfK) +1010data E-Com (2018) Nielsen AOC=Grocery/Mass/Club/Dollar/Drug Nielsen homescan panel custom survey (2018) *** Nielsen category shopping fundamentals study (2017) **** Nielsen channel facts (2018) ** 12 May 7, 2019 Nestlé Investor Seminar 2019#13Global pet care category PURINA global business US pet care category PURINA US strategy Expected to deliver continued strong growth US pet care category forecast 6% CAGR Nestle Source: Based on Nielsen AOC; Nielsen pet specialty POS (former GfK); 1010data E-Commerce + internal estimates 13 May 7, 2019 Nestlé Investor Seminar 2019 USD 32 bn USD 42 bn 2018 2023 forecast#14Global pet care category PURINA global business US pet care category Consumer trends shaping the future of pet food category PURINA PURINA US strategy Nestle How we feed Human food ideologies inform choices for pets How we shop Omnichannel-savvy and informed How we engage Personalized digital 1st engagement 14 May 7, 2019 Nestlé Investor Seminar 2019#15Global pet care category PURINA global business US pet care category PURINA US strategy PURINA is uniquely well-positioned to win #1 Share • Dry dog PURINA Cat Friskies Seafood Sensations COMPLETE #1 in Pet Care* ONE PRO PLAN FOCUS Bekin REAL REA PRO PLAN Busy DOG CHOW Friskies Party ADULT TA Bella TRUE INSTINCT GRAIN-FREE Dentalife . Dry cat PURINA Beneful originals • Wet cat WITH REAL BELF natural t • Cat litter #2 Share • ⚫ Wet dog • • Dog treats Cat treats Bella whisker lickins ✓ PURINA Your Pet, Our Passion. Feeding more than 55 m dogs and 67 m cats** * Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen pet specialty POS (former GfK), 1010data E-Commerce) **Source: Nielsen homescan panel custom survey (2018) 15 May 7, 2019 Nestlé Investor Seminar 2019 ALPO Nestle#16Global pet care category PURINA global business US pet care category PURINA US strategy Realizing PURINA's growth potential 1 Accelerate innovation and premiumization 2 Win in high-growth channels 3 Transform through personalization and open innovation 16 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#17Global pet care category PURINA global business US pet care category PURINA US strategy Driving premiumization through innovation > 80% of pet care category growth from premiumization Organic / responsible ingredient sourcing Seperfand USDA ORGANIC CASTOR POLLUX ORGANIX grain free Enhanced functional benefits PURINA Dentalife ActivFresh Fight Bad Breath at Its Source Nestle Elevated feeding occasions XPURINA Bella Purely Fancy Feast Filets Neural ne ORGANIX grain free ORGANIC CHICKEN&SHEET POTATO RECIPE ORGANIX grain free ORGANIC SMALL BREED RECIPE ORGANIC CASCKEN & SWEET POTATO RE NON GMO Project VERIFIED CERTIFIED SUSTAINABLE SEAFOOD MSC www.msc.org Sara Second and B PRISTINE grain free PRISTINE grain free PRISTINE grain free 7 50LIGHT CERTIFIED HUMANE XPURINA TIDY Mirad FRESH KISSES clears teeth + freshens breath CATS RAISED & HANDLED LightWeight DOUBLE-BRUSH COCONUT BOTANICAL OILS GRAIN FREE Paté with vegetabl With Chicken, Carrots & & Potatoes in Savory Aricen WILD CATCH FREE RANGE CAGE FREE ENTS RECIPE Source: Based on Nielsen AOC, Nielsen pet specialty POS (former GfK), 1010data E-Commerce + internal estimates 17 May 7, 2019 Nestlé Investor Seminar 2019 Friskies WITH SHRIMP lil'soups NET WT1.201 (34) v.cat food omplem DOGFOOD NETINT 3500 1822781E4 DUNNETT COMPUNEM NE AN Natural ONE FILE Fancy Feast Appetizers oceanfish appetizer With a shrimp topper in a delicate broth SIRT ON COMPEMIST BETWTL11201.29)#18Driving premiumization through innovation Index in Price 250 Fancy Feast OCEAN WHITEFISH & TUNA FEAST CLASSIC PATE Fancy Feast naturals with led vitamins, minerals nutrients natural white meat in grovy chicken recipe Global pet care category PURINA global business US pet care category PURINA US strategy 100 Source: AOC+PS 12wk ending 12/29/18 (Nielsen AOC, Nielsen pet specialty POS (former GfK) 18 May 7, 2019 Nestlé Investor Seminar 2019 Fancy Feast Appetizers oceanfish appetizer with a shrimp topper in a delicate broth PURINA Fancy Feast Classic WITH TUNA SHRP &WHITERSH IN A DECADENT SUKY BROTH Broths FURINA Purely Fancy Feast Filets Natural Tuna Natural ONE FILET GOURMET CAT COMPLEMENT NET WT 0.95 02059 Nestle#19Global pet care category PURINA global business US pet care category PURINA US strategy Making natural accessible to all Natural attributes = 41% of pet food category with PURINA #1 Natural brands Elevated feeding occasions Affordable natural BACKCOUNT BACKCOUNTRY Merrick RAW INFUSED RAW INFUSED BACKED ENTRY EATPLAINS RED RE PUPPY RECIPE BACKCOUNTRY BACKED MYS Grain Free PUPPY SWEET POTATO RECIPE WHOLE-EARTH TARMB GRAIN FREE RECIPE Pet specialty exclusive Beyond Beyond PACIFIC TUNA'S ICELANDIC ARCTIC AOC focused Feast naturals natural white meat in gravy chicken recipe Outcome-based nutrition PURINA Kitten NATURALS PURINA Cat NATURAIS ORIGINAL mom 44 NATURAL PURINA ONE TRUE INSTINCT GRAIN FREE ONE SMARTBLEND TRUE INSTINCT GRAIN-FREE Beneful Superfood Beneful Superfood PURINA Beneful Superfood BLEND nell n Beneful Superfood with natural salmen Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen pet specialty POS (former GfK), 1010data E-Commerce; AOC-Grocery/Mass/Club/Dollar/Drug) May 7, 2019 19 Nestlé Investor Seminar 2019 Nestle#20Global pet care category PURINA global business US pet care category PURINA US strategy Elevating science-based nutrition Outcome-based = 23% of pet food category with PURINA #2 and leading growth Advancing pet health science PURINA Institute Veterinary diets Outcome-based nutrition Nestle EXTENDING A HEALTHY LIFE PURINA Institute XPURINA Institute intermittent Caloric Restriction (IC) Canine Epilepsy as a novel weight management appre Scientific Overw PURINA PRO PLAN VETERINARY DIETS EN GASTROENTERIC PURINA PROPLAN VETERINARY DIETS HA HYDROLYZED NET WIPODS NEWCONT NEC 165 (8 748 k PURINA PROPLAN VETERINARY SUPPLEMENTS Calming Care C CONTENTS 159 45-46 Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen Pet Specialty POS (former GfK), 1010data E-Commerce) 20 May 7, 2019 Nestlé Investor Seminar 2019 PURINA PROPLAN BRIGHT MIND ADULT 3+ PURINA ONE SMARTBLEND USA SENSITIVE SYSTEMS FORMULA NOURISHES PURINA PROPLAN PRIME PLUS PURINA ONE PURPOSEFLA NUTRITION TENDER SELECTS BLEND NATURAL NATURAL SA#21Global pet care category PURINA global business US pet care category PURINA US strategy Increasing relevancy of core business Core 23% of pet food category with PURINA #1 Renovate to meet evolving consumer needs I make DOG CHOW MITH REAL LAMB IN SAVORY GRAVY PURINA DOG CHOW Since 1926 PURINA OG CHOW Always Crafted in the US *MADE WITH AMERICAN-RAISED * REAL High PROTEIN MPLETE ADUS WITH REAL CHICKEN 409 NO ✓ PURINA Friskies Indoor Delights Flavors of Chicken, Salman, Cheese & Garden Groens Chow Nurture 25 ESSENTIAL PURINA Cat Chow Complete CORNERSTONES OF HUTRITION CHICKEN Helps Promote Healthy Weight 25 ESSENTIAL 4 PURINA Kitten Source: AOC+PS+E-Com 52wk ending 2/23/19 (Nielsen AOC, Nielsen Pet Specialty POS (former GfK), 1010data E-Commerce) 21 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#22Global pet care category PURINA global business US pet care category PURINA US strategy Win in high-growth channels 2018 U.S. pet care category sales by channel -0.6% Pet Specialty 32% Mass/Dollar/ E-commerce +57% 13% Club 36% +3.4% Grocery 19% +1.6% Source: Nielsen AOC, Nielsen pet specialty POS (former GfK), 1010data E-Commerce - 52wk ending 12/29/18 22 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#23Global pet care category PURINA global business US pet care category PURINA US strategy PURINA leads growth in e-commerce channel Category: E-commerce pet care in USD Nestle PURINA PetCare USD Sales: E-commerce Pure play 90% Store based 10% E-commerce share of total category 25% 13% 2% 4% 2014 2015 2018 2022 Forecast Source: 1010data E-Commerce - 52wk ending 12/29/18 and internal estimate for 2022 23 May 7, 2019 Nestlé Investor Seminar 2019 . 0.1 bn 2015 0.8 bn 2018 #1 market share in e-commerce • Fastest growing manufacturer in 2017 and 2018#24Global pet care category PURINA global business US pet care category PURINA US strategy Critical pillars for future growth in e-commerce Pure play Store-based 24 24 chewy.com amazon Walmart Pickup-Grocery Kroger ClickList Order Online... PICK UP at Store. Win the digital shelf May 7, 2019 Nestlé Investor Seminar 2019 instacart Direct-to-consumer Nestle PURINA PRO PLAN VetDirect NUTRITION. DELIVERED. P4P PURINA for Professionals™ PURINA STORE Drive adoption & win early Drive loyalty#25Global pet care category PURINA global business US pet care category PURINA US strategy Transform through personalization petfinder Barkley Is your home puppy proated? No, help! Barkley's First Year 10 WEEKS OLD PREPARE FOR BARKLEY potfinder Digital solutions JUST Applying insights from other regions Wamiz Wamiz W Nestle Wamiz Rum DIMANCHE 31 MARS 2017 BUE DE VINCENIES ES Les plekid av Guidecet can calic por voc ana JUST RIGHT by PURINA KATIE'S BLEND RIGHT Customized pet food solutions Tails .com 25 May 7, 2019 Nestlé Investor Seminar 2019#26Global pet care category PURINA global business US pet care category PURINA US strategy Transform through open innovation 26 May 7, 2019 Nestlé Investor Seminar 2019 SQUARE VENTURES Pet Care Nestlé Ventures Innovation PRIZE powered by PURINA Nestle#27Global pet care category PURINA global business US pet care category PURINA US strategy Sustainability and creating shared value for individuals & families Enabling healthier and happier lives PURINA Institute Advancing Science for Pet Health petfinder for our communities Helping develop thriving, resilient communities PURINA PURPLE LEASH RedRover PROJECT Helping Domestic Abuse Victims & Pets for the planet Stewarding resources for future generations The Nature Conservancy DUCKS UNLIMITED 27 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#28Key takeaways Global pet care category PURINA global business US pet care category PURINA US strategy • Portfolio of leading brands, built on deep consumer insights, and delivering relevancy and personalization ● Unsurpassed knowledge of pet nutrition. • World-class R&D driving unrelenting innovation • Commitment to profitable growth • • Creating shared value for all stakeholders, pets and their owners A passionate, globally focused team 28 May 7, 2019 Nestlé Investor Seminar 2019 Nestle#29Nestle H PURINA We will lead, others will follow. 29 May 7, 2019 Nestlé Investor Seminar 2019