Investor Presentaiton

Nestlé 2023 Half-Year Results Thursday 27th July 2023 On palm oil overall, let me also comment on your research note from today. Obviously, the question wouldn't avoidance be better, shows you that there is no silver bullet in sustainability. We believe just walking away from it would not be the solution. I think some other outside organizations such as WWF also recognize that simply walking away from it is not the best solution. So we believe engaging with the industry and then getting to practices that are deforestation-free is the harder but probably the better way to go. And we outlined some of the ways in which we're doing this in our press release. And obviously, it's a very detailed work on the ground. When it comes to the palm oil side itself, I think the cost of that is pretty much in line with our original estimates. As you know, we've been at this for over a decade. Otherwise, we wouldn't be that close to 100%. So not a major amount of surprises there. When it comes to the Net Zero side of things, there obviously getting to the 2025 target levels and then also making it to the next segment in 2030 that is a major effort. That's where, over time, obviously, the easy pickings will be had and then each additional level of progress will come at a larger cost. But this is also one where, as you look at the climate situation around the world, I think the companies that are making a good contribution to it and that are improving their greenhouse gas footprint will, I think, increasingly find consumer acceptance. François-Xavier Roger, Nestlé SA, Chief Financial Officer: On the free cash flow, so as indicated in Barcelona, we expect this year to be around CHF 10 billion of free cash flow. Last year was a little bit unusual because of the high level of CapEx and because of our decision to increase temporarily our inventories. So this year, certainly around CHF 10 billion. And I think that very quickly by 2025 at the latest, we should be around CHF 12 billion, which means that we are well positioned in order to self-finance, without any impact on our debt level, both our dividend even going forward, as well as share buyback. The current share buyback program, we have already completed 2/3rds of it, and it's much more moderate at the level that is left for this year and next year. It will be probably less than CHF 2 billion for this year left and less than CHF 5 billion next year as well. In terms of leverage, we were at 2.5x net debt-to-EBITDA last year. which is in the middle of the range that we set for ourselves between 2 and 3, which is reasonable, especially taking into consideration some potential assets that we have in our balance sheet as well. 22 22

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