Investor Presentaiton

Nestlé 2023 Half-Year Results Thursday 27th July 2023 Obviously, to do that, we need to buy less raw material, less packaging material. And in the very short term, it has a negative impact on payables. So we are absolutely comfortable with that. And it should start to disappear anyway in H2 as we resume a normal level of buying. On the gross margin, as I said earlier, we are fully committed to be back to where we were around 50% over time. But the timing of it, I mean, I don't want to commit on anything at this stage, I think that if you start thinking of '24 it might be a little bit early in my opinion, but much depends on external factors as well. What will happen as far as inflation is concerned, input cost inflation. So it's very difficult for me to give you a timing for the time being. But directionally, we are moving in the right direction. Luca Borlini, Nestlé S.A, Head of Investor Relations: Next question is from Guillaume Delmas at UBS. Questions on: RIG in Europe Nestlé Health Science Margin target Guillaume Delmas, UBS: Two questions for me, please. The first one on Europe, on Zone Europe, because your RIG was a bit soft in the second quarter, I think around - 4%, which would probably mean a volume decline of mid- to high single digit. So I appreciate this includes some portfolio optimization actions, Perrier constraints, but this was already the case in previous quarters and RIG proved more resilient. So maybe could you shed some light on what you saw in Zone Europe? And if this weakness is evidence of growing price elasticity, maybe some share losses, maybe in Coffee or overall a deteriorating consumer environment? And then my second question is on Nestlé Health science, operating margin contracted by 70 basis points to 13% in the first half. But back in November in Barcelona, you were guiding for an operating margin in excess of 18% by 2025. So even assuming a marked improvement in the second half of this year that leaves quite a lot for 2024 and 2025. So my question here would be do you still feel confident about this 18% plus by 2025 target? And is it predicated on the cost synergies, the gross margin recovery? Or do you also require a nice pickup in category growth. François-Xavier Roger, Nestlé SA, Chief Financial Officer: Let me take the first question. I think Mark will take the second one. On Europe, you're right that we have seen negative RIG development in the second quarter. which we expected because as you know, we have a relatively limited window in terms of pricing in Europe. And 19

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