#1Nestle Good food, Good life N PURINA 24 Fancy Feast CANS Seafood GRILLED COLLECTION Fancy Feat Fancy Fealt PURINA 12 Half-year results 2023#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 July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#3Nestle Good food, Good life Half-year results 2023 Mark Schneider, CEO 0 ESTRANGE A NESCAFE 雀巢咖啡 Sw 美式 醒醒旋风 30 3521 ET#4Key messages 4 ● ● ● ● ● - Strong broad-based organic sales growth of 8.7% Strong pricing of 9.5%, reflecting significant input cost inflation Resilient RIG of -0.8%, impacted by portfolio optimization and remaining capacity constraints Generating resources and investing for growth Gross margin up 110 basis points vs. the second half of 2022 Marketing investment up 50 basis points vs. the second half of 2022 Underlying trading operating profit margin up 20 bps to 17.1% Strong underlying earnings per share growth of 11.1% in constant currency Free cash flow increased by CHF 1.9 billion to CHF 3.4 billion, mainly reflecting lower inventory levels July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#5Eliminating deforestation from Nestlé's palm oil supply chains 95.6% assessed as deforestation-free Tracing palm oil back to plantation ● ● • Training smallholders on good agricultural practices ● Using satellite monitoring 5 Restoring forests and natural ecosystems July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#62023 guidance updated ● ● ● 6 Organic sales growth guidance increased to a range of 7% to 8% Underlying trading operating profit margin expected to be between 17.0% and 17.5% Underlying earnings per share in constant currency expected to increase between 6% and 10% July 27, 2023 Nestlé half-year results 2023 Nestle Good food, Good life#7Nestle Good food, Good life a NESCAFÉ Dolce Gusto neo A NOVA CAFETERIA DENTRO DE CASA NESCAFE 18 CAFE TORRADO MOIDO Lungo Dark Perfil Generoso & Picante Capsula com pape compostovel De origem 10x Imagem Austrativ PESO LÍQ. 70g Half-year results 2023 François-Xavier Roger, CFO NESCAN Dolce Gusto#8Half-year sales growth 8 45.6 HY-2022 sales CHF bn July 27, 2023 -0.8% RIG OG +8.7% Nestlé half-year results 2023 +9.5% -0.4% Reported sales growth +1.6% Pricing Net M&A -6.7% Foreign exchange 46.3 HY-2023 sales CHF bn Nestle Good food, Good life#9Strong growth across developed and emerging markets Sales (in CHF) % of Group sales RIG Pricing OG 9 July 27, 2023 Developed 26.8 bn 58% -1.4% 9.4% 8.0% Nestlé half-year results 2023 Emerging 19.5 bn 42% 0.0% 9.6% 9.6% Nestle Good food, Good life#10RIG expected to turn positive in second half of 2023 10 July 27, 2023 1.7% H1-22 -1.4% H2-22 Nestlé half-year results 2023 -0.8% H1-23 ● ● Drivers of RIG improvement in H2-23 Base of comparison Increased marketing investments Net effect of portfolio optimization turning positive Moderation of new pricing Nestle Good food, Good life#11Zone North America ● ● Sales Organic growth Real internal growth ● CHF 12.6 bn 10.0% -1.0% 21.6% Underlying TOP margin vs LY +280 bps Strong organic growth, driven by inflation-related pricing. RIG impacted by portfolio optimization and capacity constraints Favorable mix and continued momentum in e-commerce supported growth • Purina PetCare, beverages and Nestlé Professional were the key growth drivers Margin +280 bps mainly as a result of portfolio optimization, pricing and cost efficiencies July 27, 2023 Nestlé half-year results 2023 11 Coffee mate Nestle VANILLA FRENCH ITALIAN SWEET CREME Nestle mate CENFERT CLASS THE ORIGINAL Nestle. Coffee mate & HAZELNUT Coffee mate CHUBAD & Richt Nestle Good food, Good life#12Zone Europe ● ● Sales Organic growth Real internal growth ● Underlying TOP margin vs LY -70 bps Strong organic growth led by pricing. RIG impacted by capacity constraints and portfolio optimization • E-commerce momentum and out-of-home channels supported growth CHF 9.5 bn 8.9% -2.4% 16.6% Purina PetCare, confectionery and Nestlé Professional were the main growth contributors Margin -70 bps impacted by significant cost inflation 12 July 27, 2023 Nestlé half-year results 2023 Nestle eu TO N ✔ H K apie Nestle Good food, Good life#13Zone Asia, Oceania and Africa ● ● Sales Organic growth Real internal growth CHF 9.1 bn 9.3% 0.1% Underlying TOP margin 22.8% vs LY -70 bps Strong organic growth, supported by pricing and positive RIG ● Improved mix and continued momentum of out-of-home channels supported growth Infant nutrition, culinary and coffee were the key growth drivers Margin -70 bps reflecting input cost inflation, currency depreciation 13 July 27, 2023 Nestlé half-year results 2023 KARI Nestle Good food, Good life#14Zone Latin America ● ● Sales Organic growth Real internal growth Underlying TOP margin vs LY -130 bps Sustained double-digit organic growth based on pricing Strong operational execution and continued momentum of out-of-home channels supported growth CHF 6.1 bn 11.6% -0.9% 19.8% Confectionery, dairy and infant nutrition were the main growth contributors Margin -130 bps due to one-off items in the prior year and cost inflation 14 July 27, 2023 Nestlé half-year results 2023 NEW LOOK taste mismo sabor.same t Nestle Lechera La Original antic Le 0 Nestle Good food, Good life#15Zone Greater China ● Sales Organic growth Real internal growth Underlying TOP margin vs LY +160 bps Positive organic growth, led by both RIG and pricing ● Robust e-commerce momentum and a recovery of out- of-home channels supported growth CHF 2.5 bn 4.7% 1.3% 16.6% • Nestlé Professional, infant nutrition and confectionery were the key growth drivers Margin +160 bps driven by favorable mix and disciplined cost control 15 July 27, 2023 Nestlé half-year results 2023 烘烤糕点 番厚切 凤梨酥 1.6 80 10 wwww. FAR 高品质 值得厚切 Nestle Good food, Good life#16Nestlé Health Science ● ● ● Sales Organic growth Real internal growth Underlying TOP margin vs LY -70 bps Organic growth increasing sequentially, supported by post-COVID normalization Consumer Care saw negative growth, with growth in VMS turning positive in the second quarter CHF 3.3 bn 3.5% -1.9% 13.0% Medical nutrition recorded double-digit growth, led by acute medical care, pediatric and allergy products Margin -70 bps due to cost inflation 16 July 27, 2023 Nestlé half-year results 2023 NATURE'S BOUNT Sleep3) SOMMIES Nestle Good food, Good life#17Nespresso ● Underlying TOP margin vs LY Organic growth driven by pricing, with a return to positive RIG Sales Organic growth Real internal growth ● ● • Vertuo, strong demand in out-of-home channels and innovation supported growth CHF 3.1 bn 4.5% 0.8% 21.7% North America posted double-digit growth. Europe reported slightly positive growth 17 -260 bps Margin -260 bps impacted by coffee cost inflation and the appreciation of the Swiss Franc July 27, 2023 Nestlé half-year results 2023 NESPRESSO NESPRESSO Nestle Good food, Good life#18Broad-based growth across categories Organic sales growth % 18 8.7% Total Group July 27, 2023 7.2% 15.0% I Powdered and Liquid Beverages Nestlé half-year results 2023 PetCare 7.4% Nutrition and Health Science 5.8% Prepared dishes and cooking aids 7.5% Milk products and Ice cream 10.8% Confectionery 4.2% Water Nestle Good food, Good life#19Underlying trading operating profit margin by category In % of sales Change in bps Vs. H1-2022 17.1% 19 +20 Total Group* * Includes unallocated items July 27, 2023 21.1% 20.9% ||| +190 Flat -250 Powdered and Liquid Beverages Nestlé half-year results 2023 PetCare 19.5% Nutrition and Health Science 23.3% +140 Milk products and Ice cream 16.7% +80 Prepared dishes and cooking aids 14.5% +70 Confectionery 11.0% +130 Water Nestle Good food, Good life#20Pricing, growth leverage and efficiencies mostly offset inflation 16.9% 20 Underlying TOP HY-2022 * Gross margin = Sales - cost of goods sold July 27, 2023 - Nestlé half-year results 2023 40 bps Gross margin* + 50 bps + 10 bps Margin +20 bps on a reported basis Margin +30 bps in constant currency Distribution Administration, marketing and advertising, R&D 17.1% Underlying TOP HY-2023 Nestle Good food, Good life#21Starting to restore gross margin Gross margin as % of sales 21 July 27, 2023 46.0% H1-2022 Nestlé half-year results 2023 44.5% H2-2022 45.6% H1-2023 Nestle Good food, Good life#22Stepping up investments in advertising and marketing Advertising and marketing expenses as a % of sales 22 July 27, 2023 7.1% H1-2022 Nestlé half-year results 2023 6.6% H2-2022 7.1% H1-2023 Nestle Good food, Good life#23Net profit Underlying trading operating profit Restructuring Impairment of assets Onerous contracts, litigations and other operating income / expenses Trading operating profit Gain/loss on disposals Net financing costs Taxes Income from associates / joint ventures Others Net profit 23 July 27, 2023 Nestlé half-year results 2023 % of sales 17.1% 15.9% 12.2% H1-23 vs H1-22 +20 bps -40 bps +130 bps +10 bps +120 bps +10 bps -60 bps Flat Flat Flat +70 bps Nestle Good food, Good life#24Increasing free cash flow generation Free cash flow as a % of sales 24 July 27, 2023 6.8% H1-2021 Nestlé half-year results 2023 3.2% H1-2022 7.4% H1-2023 Nestle Good food, Good life#25Inventory levels starting to normalize Inventories as a % of sales 25 13.6% Inventories as a % of annualized (12-month) sales July 27, 2023 H1-2021 Nestlé half-year results 2023 16.5% H1-2022 15.6% H1-2023 Nestle Good food, Good life#26Underlying earnings per share CHF 2.33 26 UEPS HY-2022 9.9% July 27, 2023 Operating performance 1.4% * Includes M&A and income from associates and joint ventures Evolution in constant currency +11.1% Evolution on reported basis +4.1% Nestlé half-year results 2023 Share Buyback -1.4% 1.2% Net finance costs Others* & tax CHF 2.59 UEPS HY-2023 in constant currency -7.0% FX impact CHF 2.43 UEPS HY-2023 Nestle Good food, Good life#27Q&A 27 July 27, 2023 Nestlé half-year results 2023 NEW Garden SENSATIONAL CRISPY MINI FILET MADE WITH PLANT-BASED NEREDENTS 1864 4 DELICIOUS & JUICY A BR 2 Nestle Good food, Good life#28Supporting slides 28 July 27, 2023 Nestlé half-year results 2023 NESCAFE. Nestle Good food, Good life#29HY-2023 Operating segments - topline summary Zone North America Zone Europe Zone AOA Zone Latin America Zone Greater China Nestlé Health Science Nespresso Other Businesses Total Group 29 July 27, 2023 Sales (CHF m) 12 553 9 467 9 060 6 082 2 548 3 318 3 128 137 46 293 Nestlé half-year results 2023 RIG % -1.0 -2.4 0.1 -0.9 1.3 -1.9 0.8 8.3 -0.8 Pricing % 11.0 11.3 9.2 12.5 3.4 5.3 3.7 1.3 9.5 HY-2023 sales OG % 10.0 8.9 9.3 11.6 4.7 3.5 4.5 9.6 8.7 Net M&A % -2.1 -0.9 -0.1 0.1 0.0 6.0 -0.8 0.0 -0.4 F/X % -4.4 -6.0 -12.1 -4.3 -9.5 -4.8 -5.6 -4.3 -6.7 Reported sales growth % 3.4 2.0 -2.9 7.5 -4.8 4.7 -1.9 5.3 1.6 Nestle Good food, Good life#30HY-2023 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 30 July 27, 2023 Nestlé half-year results 2023 Sales (CHF m) 12 339 1 706 5 418 7 832 5 931 3 694 9 373 46 293 HY-2023 sales RIG % -0.6 -6.3 -3.8 -0.5 -4.2 2.6 2.9 -0.8 Pricing % 7.8 10.5 11.3 7.8 10.0 8.2 12.1 9.5 OG % 7.2 4.2 7.5 7.4 5.8 10.8 15.0 8.7 Nestle Good food, Good life#31HY-2023 historical eight quarters Period Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 31 July 27, 2023 Nestlé half-year results 2023 RIG% 4.4 4.0 2.4 0.9 -0.2 -2.6 -0.5 -1.1 Pricing % 2.1 3.1 5.2 7.7 9.5 10.1 9.8 9.1 OG % 6.5 7.2 7.6 8.7 9.3 7.5 9.3 8.0 Nestle Good food, Good life#32HY-2023 Operating segments - revenue and results In CHF m Zone North America Zone Europe Zone AOA Zone Latin America Zone Greater China Nestlé Health Science Nespresso Other businesses Unallocated items Total Group 32 July 27, 2023 Sales 12 553 9 467 9 060 6 082 2 548 3 318 3 128 137 46 293 Nestlé half-year results 2023 Underlying Trading Operating Profit 2713 1 570 2 068 1 202 422 432 678 (17) (1 164) 7 904 Trading Operating Profit 2 632 1 373 1 985 1 101 418 372 672 (17) (1 185) 7 351 Net other trading income/ (expense) (81) (197) (83) (101) (4) (60) (6) (-21) (553) Of which impairment of property, plant and equipment (29) (5) (49) (4) (2) (11) (9) (1) (110) Of which restructuring costs (44) (140) (16) (21) (2) (31) (1) (7) (262) Depreciation and amortization (337) (414) (259) (192) (83) (152) (135) (19) (131) (1 722) Nestle Good food, Good life#33HY-2023 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 33 July 27, 2023 Nestlé half-year results 2023 Sales 12 339 1 706 5 418 7 832 5 931 3 694 9 373 46 293 Underlying Trading Operating Profit 2 607 187 1 261 1 529 989 536 1 959 (1 164) 7 904 Trading Operating Profit 2 506 57 1 227 1 416 924 467 1 939 (1 185) 7 351 In CHF m Net other trading income/ (expense) (101) (130) (34) (113) (65) (69) (20) (21) (553) Of which impairment of property, plant and equipment (50) (6) (10) (34) (3) (3) (4) (110) Of which restructuring costs (32) (94) (15) (40) (52) (11) (11) (7) (262) Nestle Good food, Good life#34HY-2023 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) 34 July 27, 2023 Nestlé half-year results 2023 In CHF m H1-2022 5 247 87 741 52 184 82 (16) (13) 6 364 2 729 2.33 H1-2023 5 649 262 181 8 191 127 43 (12) 6 449 2 657 2.43 Nestle Good food, Good life#35HY-2023 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) 35 July 27, 2023 Nestlé half-year results 2023 In CHF m H1-2022 7 683 (434) (1 515) 798 (168) 6 364 2 729 2.33 H1-2023 7 904 (697) (1 486) 877 (149) 6 449 2 657 2.43 Nestle Good food, Good life#36HY-2023 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 36 July 27, 2023 Nestlé half-year results 2023 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 HY-2023 HY-2022 0.945 1.032 14.568 18.723 1.813 1.226 4.649 0.744 0.766 0.680 1.239 0.911 0.986 13.164 17.974 1.649 1.124 5.014 0.676 0.674 0.616 1.109 Variation in % -3.6 -4.5 -9.6 -4.0 -9.0 -8.3 7.9 -9.0 -12.0 -9.4 -10.5 Nestle Good food, Good life#37Free cash flow In CHF billion 37 1.5 Free cash flow HY-2022 July 27, 2023 0.2 Adjusted EBITDA Nestlé half-year results 2023 1.2 Working capital -0.5 CAPEX and expenditure on intangible assets 1.0 Others 3.4 Free cash flow HY-2023 Nestle Good food, Good life#38Abbreviations • OG • RIG AOA LATAM GC • EPS ● • COGS • FCF TOP UTOP ● ● ● ● ● • Structural costs • Adjusted EBITDA 38 July 27, 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 half-year results 2023 Nestle Good food, Good life