Zone Americas. Luis Cantarell. Executive VP, Zone AMS. 11 November 2009

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1 Zone Americas Luis Cantarell Executive VP, Zone AMS November 009

2 Disclaimer 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. November 009 Investors Group Meeting - Zone AMS

3 Agenda Overview of Zone Americas Key growth drivers Questions & answers 3 November 009 Investors Group Meeting - Zone AMS

4 Zone Americas in summary A strong record of delivering profitable growth Organisation & portfolio is aligned Strong management with local expertise Performance is on track Continued potential for profitable growth 4 November 009 Investors Group Meeting - Zone AMS

5 Close to One Billion Consumers... North America: 338 million Consumers 008: 60% of Zone sales and projected to grow by 7% by 00 Latin America: 540 million Consumers 008: 40% of Zone sales 5 November 009 Investors Group Meeting - Zone AMS

6 Nestlé in the Americas: operating model Nestlé in the Americas Markets/countries Zone Americas American businesses GMBs Locallymanaged Regionallymanaged Globallymanaged Beverages Confectionery Culinary Ice Cream Other local businesses NPPC Nestlé Waters Nestlé Professional Nestlé Nutrition Nespresso Nestlé in the markets, GLOBE, GNBS 6 November 009 Investors Group Meeting - Zone AMS

7 Overview of Zone Americas Food & Beverages (FY 008) Nestlé Nestlé F&B F&B CHF CHF bn bn Nestlé in the Americas 43% Rest of the World 57% Other F&B 3% Nestlé Nutrition 0% Nestlé Nestlé in in the the Americas Americas CHF CHF bn bn Nestlé Waters % Zone Americas 76% Austral 5% Mexico 8% NPP % Caribbean % Bolivarian 6% Zone Zone Americas Americas CHF CHF bn bn Central % DPA % NUSA 35% Brazil 3% Canada 4% NPPC % 7 November 009 Investors Group Meeting - Zone AMS

8 Overview by product category (FY 008) Chilled Dairy % Culinary chilled% Sugar % RTD % Biscuits % Ambient Culinary 3% Powdered Bev. 4% Petcare 4% Sol. Coffee 6% Chocolate % Ice Cream 0% Ambient Dairy % Frozen Foods 4% 8 November 009 Investors Group Meeting - Zone AMS

9 Key businesses have leadership positions PRODUCTS USA BRA MEX VEN CHL CAN Petcare Ambient Dairy Frozen Ice Cream - Chocolate 3 Soluble Coffee Nestlé Waters Nestlé Infant Nutrition Nestlé Health-Care Nutr November 009 Investors Group Meeting - Zone AMS

10 Zone Americas 009 performance A strong first half EBIT performance EBIT January -June H % H % A good 9-month growth performance Sales RIG % OG % January -June January -Sept Continuous trend of of strong Organic Growth 0 November 009 Investors Group Meeting - Zone AMS

11 Agenda Overview of Zone Americas Key growth drivers Questions & answers November 009 Investors Group Meeting - Zone AMS

12 Our commitment is... To be the leading Nutrition, Health & Wellness company in the Americas To have and retain the best people Leveraging brands, products and communications Building proactive, collaborative relationships with customers & channels Anticipating new brand and business opportunities All driving financial performance November 009 Investors Group Meeting - Zone AMS

13 Strategic and Performance Framework The Nestlé Model 5% - 6% Organic Growth EBIT margin improvement Improving capital efficiency Our Ambition Be the recognized leading NHW company Be a reference for financial performance Trusted by all stakeholders Competitive Advantages Products & brands R&D capabilities Global presence People, culture and values Growth Drivers Nutrition, Health & Wellness (NHW) Emerging consumers (PPP) Out-of-home (OOH) Premiumisation Creating Shared Value Sustainability Compliance Operational Pillars Operational efficiency Innovation & Renovation Consumer communication Whenever, wherever, however Nestlé Culture, Values and Principles 3 November 009 Investors Group Meeting - Zone AMS

14 Consumer Trends to Growth Platforms Ready-to to-drink (RTD) Consumer Trends & Growth Platforms PPP Fluid Lives Drivers Wishing Up Evolving Roles Seeking Balance Individualism Working Patterns On the Move Accessibility Affluent consumers Ageing population Threatened Natural Resources Better Education Travel Risk Society Pleasure Principles Health Enhancement Fusion Premiumisation Source: Consumer Next 4 November 009 Investors Group Meeting - Zone AMS

15 Emerging consumers Great growth potential Identify and execute PPP initiatives leading to 5% Organic Growth of PPP portfolio. More than 00 initiatives implemented Hispanicconsumersin the US, sales growingat+5% New factory in Feira de Satana(Brazil) ~ 48'000 t Manufacturing of instant noodles and PPP size of Ideal (modified milk) and Nescafé Matagalpa factoryin Nicaragua, flexible manufacturingand PPPs Ecuador: new factory in construction including production of PPP (Guayaquil area) Reaching low-income consumers in Brazil using door to door sale channel. From 800 to 30'000 sales women by 0. From CHF 3 mioto 6 mio NPS by 0 Nutrimovilis a Mobile Nutritionale Unit which brings NHW advice to our low-income consumers in Latin America 5 November 009 Investors Group Meeting - Zone AMS

16 Our operational imperatives Do the basics better Nutrition, Health and Wellness Accelerate Innovation & Renovation Increase cost competitiveness Broaden distribution, increase brand competitiveness & customer focus Improve capabilities 6 November 009 Investors Group Meeting - Zone AMS

17 Zone Americas in summary A strong record of delivering profitable growth Organisation & portfolio is aligned Strong management with local expertise Performance is on track Continued potential for profitable growth 7 November 009 Investors Group Meeting - Zone AMS

18 Agenda Overview of Zone Americas Key growth drivers Questions & answers 8 November 009 Investors Group Meeting - Zone AMS

19 November 009