#1Nestle Good food, Good life NESCAFÉ ***** 241449 FE. 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 Nestlé NAN SUPREMEpro NUTRIT 3 TODDLER ilem Tecela#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 ● ● 4 ● • 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 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#6Good for You: continued progress on nutrition 6 February 16, 2023 Todo mundo vai querer descobrir o Segredo dos seus pr Dispensa here temper Grana 2 o sigudei a cek ve garar um Dla d carte r 9-5 Debor BERA 19 822 reces S Nestle Faz Bem RECEITAS www.R Co www.ma 27004 Todo mundo vai querer descobrir o Segredo dos seus prato Pepen Traviat Phi perse Me Segude CONT se's perspropark Set 4 pratic 2003 2013 P F rect.com Nestlé full-year results 2022 ● ● ● 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 8 Strategic ● Operational ● ● Accelerate portfolio optimization Drive faster, relevant, impactful innovation Lead on climate, sustainability and nutrition agendas ● Protect volume growth Drive cost efficiencies Step-up marketing investments Financial Restore gross margin and cash flow generation February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#9Accelerating portfolio optimization 9 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 Nestlē. Moca Doceria February 16, 2023 sabor chocolate cremoso SIRE THE Select dairy SKUs Brazil Nestlé full-year results 2022 NEW! NOUVEAU! DELISSIO GARLIC BREAD PIZZA PAIN À L'AIL DENNOT BEIN 4 CHEESE 4 FROMAGES Frozen food Canada Re-allocating resources toward high-growth, high-margin products 8999 ONE DIGESTIVE HEALTH FORMULA NATURALT NESCAFE CLASSIC the Coffee Pla 200 FRENCH VANITY Coffee mate DO Nestle TORUSTIK V VEGAN №₂ Vegan Nestle Good food, Good life#102023 guidance ● 10 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% February 16, 2023 Nestlé full-year results 2022 Nestle Good food, Good life#11Nestle Good food, Good life ut me Not 300g Nestle MORN GOLDEN Maize & Soya Protein Full-year results 2022 François-Xavier Roger, CFO#12Resilient financial performance 12 Sales (in CHF bn) 87.1 2021 February 16, 2023 +8.4% 94.4 2022 Nestlé full-year results 2022 Underlying TOP (in CHF bn) 15.1 2021 +6.5% 16.1 2022 Underlying EPS growth (in constant currency) CHF 4.42 2021 +9.4% CHF 4.84 2022 Total returns to shareholders (in CHF bn) 13.9 2021 +30.8% 18.2 2022 Nestle Good food, Good life#13Full-year sales growth 87.1 13 FY-2021 sales CHF bn +0.1% RIG OG +8.3% Nestlé full-year results 2022 +8.2% +1.1% Reported sales growth +8.4% Pricing Net M&A -0.9% RIG, pricing and organic growth figures exclude the Russia region, with a corresponding impact on the M&A and foreign exchange lines February 16, 2023 Foreign exchange 94.4 FY-2022 sales CHF bn Nestle Good food, Good life#14Strong growth across developed and emerging markets Sales (in CHF) % of Group sales RIG Pricing OG 14 February 16, 2023 Developed 55.1 bn 58% -0.8% 7.9% 7.1% Nestlé full-year results 2022 Emerging 39.3 bn 42% 1.4% 8.6% 10.0% Nestle Good food, Good life#15Resilient mix, volume and market share in 2022 Price Mix Volume 15 2018 February 16, 2023 0.5% 1.4% 1.1% 2019 Excludes water and Nestlé Health Science; Volume + Mix are equivalent to RIG Nestlé full-year results 2022 0.5% 1.7% 1.3% 2020 0.6% 2.2% 1.5% 2021 2.0% 1.4% 3.7% 2022 8.6% 1.6% -1.7% High base of comparison and supply constraints Close to 60% of business cells for billionaire brands gaining / holding share Nestle Good food, Good life#16Q4-2022 RIG impacted by additional transitory factors 16 Q4-2022 RIG and Pricing Price RIG February 16, 2023 10.1% -2.6% Nestlé full-year results 2022 ● ● Factors impacting Q4-2022 RIG decline Normalization of out-of-home growth Portfolio and SKU optimization Temporary capacity constraints in water Nestle Good food, Good life#17Zone North America ● ● ● Sales Organic growth Real internal growth Underlying TOP margin vs LY +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 CHF 26.3 bn 10.3% -1.3% 21.0% 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 17 February 16, 2023 Nestlé full-year results 2022 Mint Truffle NATURAL FLAVOR natural bliss ALL NATURAL COFFEE COLAN ALL NATURAL Real Milk & Cream MADE WITH CONS HOT TOCATED 40DT NORMO W Nestle Good food, Good life#18Zone Europe ● ● ● Sales Organic growth Real internal growth ● Underlying TOP margin vs LY -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 CHF 19.1 bn 7.2% 0.9% 16.4% 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 18 February 16, 2023 Nestlé full-year results 2022 Tails .com simply Delicious Beef Tails .com Simply Irresistible Chicken Bella bones & thech Healthy skin & com Serve 4 scoops on setting per day Tails .com" There's a recipe for every dog at tails.com Tails .com HAND-BAKED Salmon biscuits AKED scuits Nestle Good food, Good life#19Zone Asia, Oceania and Africa CHF 18.5 bn 8.2% 0.1% Underlying TOP margin 22.9% vs LY -110 bps • Strong organic growth, reflecting pricing execution across all geographies and categories Sales Organic growth Real internal growth • Further recovery of out-of-home channels and innovation supported growth ● ● 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 Magic Sarap Nestle Good food, Good life#20Zone Latin America ● ● ● Sales Organic growth Real internal growth CHF 11.8 bn 13.1% 1.5% Underlying TOP margin 21.2% vs LY -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 J08844 Nestle NINHO Fortit N Jestle NINHO Forti+ Ne ACENVERS N Nestlé NINHO Fortit KROTAS STE RECEITAS Necha Nestle Good food, Good life#21Zone Greater China ● Sales Organic growth Real internal growth Underlying TOP margin vs LY +260 bps • Solid organic growth, with positive pricing and RIG, despite the impact of movement restrictions ● ● 21 CHF 5.4 bn 3.5% 1.0% 16.1% 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 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 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 CHF 6.6 bn 4.0% 0.6% 13.6% 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 ASED PRO Orgain Organic Protein 50 SUPERFOODS PROTEIN POWDER 219 Nestle Good food, Good life#23Nespresso ● Sales Organic growth Real internal growth ● Underlying TOP margin vs LY -150 bps 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 CHF 6.4 bn 3.5% -1.7% 21.5% 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 23 February 16, 2023 Nestlé full-year results 2022 N PERU ORGANIC A ORIGINAL PAPER-BASED CAPSULE Реки NESPRESSO Nestle Good food, Good life#24Broad-based growth across categories Organic sales growth % 24 8.3% Total Group February 16, 2023 8.0% Powdered and Liquid Beverages Nestlé full-year results 2022 14.5% PetCare 7.4% Nutrition and Health Science 3.1% Prepared dishes & cooking aids 5.4% Milk products and Ice cream 9.4% Confectionery 11.0% Water Nestle Good food, Good life#25Underlying trading operating profit margin by category In % of sales Change in bps vs FY-2021 17.1% 25 -30 Total Group* * Includes unallocated items February 16, 2023 22.2% -130 Powdered and Liquid Beverages Nestlé full-year results 2022 20.5% 1 -60 PetCare 19.1% +160 Nutrition and Health Science 16.3% -50 Prepared dishes and cooking aids 22.7% -260 Milk products and Ice cream 16.8% +80 Confectionery 7.8% -120 Water Nestle Good food, Good life#26Inflation more than offset pricing, growth leverage and efficiencies 17.4% 26 Underlying TOP FY-2021 * Gross margin = Sales - cost of goods sold February 16, 2023 -260 bps Margin -30 bps on a reported basis and -40 bps in constant currency Gross margin* +20 bps Nestlé full-year results 2022 +210 bps Distribution Administration, marketing, R&D 17.1% 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 17.1% 14.0% 9.8% 2022 vs 2021 -30 bps +10 bps +20 bps Flat Flat -40 bps -30 bps -880 bps -10 bps -960 bps Nestle Good food, Good life#28Strong increase in underlying earnings per share CHF 4.42 28 UEPS FY-2021 6.0% February 16, 2023 Operating performance 1.8% * Includes M&A and income from associates and joint ventures Evolution in constant currency +9.4% Evolution on reported basis +8.4% Nestlé full-year results 2022 Share buyback -0.6% 2.2% Net finance costs & tax Others* CHF 4.84 UEPS FY-2022 in constant currency -1.0% FX impact CHF 4.80 UEPS FY-2022 Nestle Good food, Good life#29Sustaining strong operating cash flow generation Cash generated from operations 29 Free cash flow 20.1% February 16, 2023 10.4% 2017 20.1% Nestlé full-year results 2022 11.8% 2018 Cash flow as % sales 20.1% 12.9% 2019 20.0% 12.1% 2020 19.3% Cash generated from operations before changes in working capital; 2017 restated, reflecting implementation of IFRS 15 and IFRS 16 10.0% 2021 19.5% 7.0% 2022 Impacted by decision to temporarily increase inventories and high capex level Nestle Good food, Good life#30Return on invested capital Before goodwill and intangible assets* 30 30.6% After goodwill and intangible assets* 11.4% 9.1% 2017* 33.9% February 16, 2023 12.1% 2018 38.8% Nestlé full-year results 2022 13.1% 12.3% 2019 41.1% * 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 14.7% 2020 41.7% 14.2% 12.2% 2021 39.4% 14.3% 12.2% 2022 Excludes major impairments (predominantly relating to businesses sold) As reported ** Nestle Good food, Good life#31Net debt In CHF bn 32.9 31 Net debt Jan 1, 2022 Net debt / Adjusted EBITDA: 1.77x CHF 18.2 bn returned to shareholders February 16, 2023 +10.5 Share buyback * M&A line incl. associates/ joint ventures and non-controlling interests +7.6 Nestlé full-year results 2022 Dividends +3.1 Net debt increased by CHF 15.3 bn +0.7 M&A** Others -6.6 Impacted by temporary increase in inventories Free cash flow 48.2 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 F 18G PORTION 4x SOURCE OF FIBRE DELICIOUS & JUICY OVECAN Nestle Good food, Good life#33Thank you! 33 February 16, 2023 SUCIETY Nestlé full-year results 2022 Chocolatory IBRAZIL C 1/4S #CREATE Nestle Good food, Good life#34FY-2022 Operating segments - quarterly summary Zone North America Zone Europe Zone AOA Zone Latin America Zone Greater China Nespresso Nestlé Health Science Other Businesses Total Group 34 February 16, 2023 Nestlé full-year results 2022 Sales (CHF m) 7 235 5 160 4 585 3 171 1 508 1774 1 791 68 25 292 Q4-2022 sales RIG % -4.9 -0.8 -2.8 -1.3 -1.6 -1.2 -2.9 17.7 -2.6 Pricing % 12.8 8.3 11.2 14.8 2.2 5.8 5.6 3.7 10.1 OG % 7.8 7.5 8.4 13.5 0.6 4.6 2.7 21.4 7.5 Nestle Good food, Good life#35FY-2022 Operating segments - topline summary Zone North America Zone Europe Zone AOA Zone Latin America Zone Greater China Nespresso Nestlé Health Science Other Businesses Total Group 35 February 16, 2023 Sales (CHF m) 26 328 19 128 18 484 11 819 5 351 6 448 6 602 264 94 424 Nestlé full-year results 2022 RIG % -1.3 0.9 0.1 1.5 1.0 -1.7 0.6 25.2 0.1 Pricing % 11.6 6.4 8.1 11.6 2.5 5.2 3.4 3.2 8.2 FY-2022 sales OG % 10.3 7.2 8.2 13.1 3.5 3.5 4.0 28.4 8.3 Net M&A % -3.8 2.1 -0.1 0.1 0.0 -0.3 31.5 0.0 1.1 F/X % 4.7 -7.6 -4.9 4.0 -0.1 -2.7 1.5 -0.1 -0.9 Reported sales growth % 11.1 1.8 3.3 17.2 3.4 0.5 36.9 28.3 8.4 Nestle Good food, Good life#36FY-2022 Products - topline summary Powdered and liquid beverages Water Milk products and Ice cream Nutrition and Health Science Prepared dishes and cooking aids Confectionery Petcare Total group 36 February 16, 2023 Nestlé full-year results 2022 Sales (CHF m) 25 218 3 536 11 289 15 678 12 484 8 118 18 101 94 424 FY-2022 sales RIG % 0.2 2.2 -4.3 1.7 -6.9 4.8 4.3 0.1 Pricing % 7.8 8.9 9.6 5.7 10.0 4.7 10.2 8.2 OG % 8.0 11.0 5.4 7.4 3.1 9.4 14.5 8.3 Nestle Good food, Good life#37FY-2022 historical eight quarters Period Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 37 February 16, 2023 Nestlé full-year results 2022 RIG% 6.4 7.3 4.4 4.0 2.4 0.9 -0.2 -2.6 Pricing % 1.2 1.3 2.1 3.1 5.2 7.7 9.5 10.1 OG % 7.7 8.6 6.5 7.2 7.6 8.7 9.3 7.5 Nestle Good food, Good life#38FY-2022 Operating segments - revenue and results In CHF m Zone North America Zone Europe Zone AOA Zone Latin America Zone Greater China Nespresso Nestlé Health Science Other businesses Unallocated items Total Group 38 February 16, 2023 Sales 26 328 19 128 18 484 11 819 5 351 6 448 6 602 264 94 424 Nestlé full-year results 2022 Underlying Trading Operating Profit 5 528 3 138 4 237 2 501 862 1 388 899 (17) (2 433) 16 103 Trading Operating Profit 4 904 2719 4 133 2 401 840 1 309 (596) (19) (2 496) 13 195 Net other trading income/ (expense) (624) (419) (104) (100) (22) (79) (1 495) (2) (63) (2 908) Of which impairment of property, plant and equipment (82) (199) (26) (16) (12) (24) (41) (4) 1 (403) Of which restructuring costs (43) (92) (44) (11) (15) (7) (42) (19) (273) Depreciation and amortization (713) (829) (566) (366) (179) (290) (287) (38) (273) (3 541) Nestle Good food, Good life#39FY-2022 Products - revenue and results Powdered and Liquid Beverages Water Milk products and Ice cream Nutrition and Health Science Prepared dishes and cooking aids Confectionery PetCare Unallocated items Total Group 39 February 16, 2023 Nestlé full-year results 2022 Sales 25 218 3 536 11 289 15 678 12 484 8 118 18 101 94 424 Underlying Trading Operating Profit 5 593 277 2 568 2 990 2 038 1 364 3 706 (2 433) 16 103 Trading Operating Profit 5 358 241 2 508 1 323 1 508 1 259 3 494 (2 496) 13 195 In CHF m Net other trading income/ (expense) (235) (36) (60) (1 667) (530) (105) (212) (63) (2 908) Of which impairment of property, plant and equipment (63) (8) (17) (62) (101) (42) (111) 1 (403) Of which restructuring costs (47) (21) (16) (68) (57) (14) (31) (19) (273) Nestle Good food, Good life#40FY-2022 EPS reconciliation (1 of 2) From net profit to underlying net profit 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) 40 February 16, 2023 Nestlé full-year results 2022 In CHF m FY-2021 16 905 311 2614 (235) 750 (7 270) (684) (57) 12 334 2 788 4.42 FY-2022 9 270 273 2 726 79 699 391 (418) (32) 12 988 2 707 4.80 Nestle Good food, Good life#41FY-2022 EPS reconciliation (2 of 2) From underlying trading operating profit to underlying net profit 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) 41 February 16, 2023 Nestlé full-year results 2022 In CHF m FY-2021 15 119 (873) (2 945) 1 381 (348) 12 334 2 788 4.42 FY-2022 16 103 (1 040) (3 148) 1 431 (358) 12 988 2 707 4.80 Nestle Good food, Good life#42FY-2022 Currency overview US Dollar Euro Chinese Yuan Renminbi Brazilian Real Philippine Peso UK Pound Sterling Mexican Peso Canadian Dollar Japanese Yen Australian Dollar Indian Rupee 42 February 16, 2023 Nestlé full-year results 2022 1 1 100 100 100 1 100 1 100 1 100 USD EUR CNY BRL PHP GBP MXN CAD JPY AUD INR Weighted average rate FY-2021 0.915 1.081 14.179 16.988 1.855 1.257 4.505 0.730 0.831 0.686 1.236 FY-2022 Variation in % +4.5% -7.1% -0.2% +9.2% -5.5% -6.5% +5.4% +0.6% -12.7% -3.5% -1.6% 0.956 1.004 14.148 18.555 1.752 1.175 4.750 0.735 0.725 0.663 1.216 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% 43 2017 1.4% * 2017 restated to reflect IFRS 15 and IFRS 16 February 16, 2023 2018 Nestlé full-year results 2022 0.6% 2019 0.0% 2020 0.1% 2021 1.9% 2022 Nestle Good food, Good life#44Free cash flow impacted by temporary items In CHF billion 44 8.7 Free cash flow FY-2021 February 16, 2023 1.1 Adjusted EBITDA Nestlé full-year results 2022 -3.0 Temporary increase in the context of supply constraints and the energy crisis in Europe Working capital -0.4 Tax 0.2 Others 6.6 Free cash flow FY-2022 Nestle Good food, Good life#45Abbreviations • OG ● • RIG • AOA • LATAM • GC ● • EPS • COGS • FCF • TOP • UTOP • Structural costs ● • Adjusted EBITDA ● 45 February 16, 2023 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) Nestlé full-year results 2022 Nestle Good food, Good life