Investor Presentaiton

Nestlé 2023 Half-Year Results Thursday 27th July 2023 RIG was -0.8%, impacted by capacity constraints and the effect of portfolio optimization initiatives. Overall, demand elasticity and consumer downtrading remained limited in the context of pricing actions. Net divestitures decreased sales by 0.4%, largely related to the divestiture of Freshly as well as the disposal of the Gerber Good Start infant formula brand in the United States. Foreign exchange had a negative impact of 6.7% on sales growth, following the broad-based depreciation of currencies versus the Swiss franc. Total reported sales for the first six months were CHF 46.3 billion. Slide: Strong growth across developed and emerging markets Turning to the distribution of growth between developed and emerging markets. Organic growth in developed markets was 8.0%, driven by pricing with negative RIG. Growth in emerging markets was 9.6%, based on pricing with flat RIG. Slide: RIG expected to turn positive in second half of 2023 RIG for the first half of 2023 was slightly negative at -0.8%, in line with what we previously communicated. RIG was at a similar level in the first and second quarters when adjusted for the number of trading days. RIG continued to be impacted by remaining capacity constraints, particularly for PetCare and Water. RIG was also impacted by portfolio optimization actions which had a negative effect of around 60 basis points in the first half. This included the impact of the fast winding down of the Frozen meals and Pizza business in Canada in the second quarter. At the same time, we are starting to see the benefits of our portfolio optimization actions, with a material and progressive improvement in service levels for high rotation products in the first half. This improvement will support RIG development in the second half. We are confident that Group RIG should turn positive in the second half. Beyond the lower base of comparison, the RIG improvement should be driven by the step-up in marketing investments, the net effect of portfolio optimization and the moderation of new pricing. Just as a reminder, the third quarter will have one less trading day. Slide: Zone North America 5

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