February21, Name of chairman

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Alfred Caldwell
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1 SPRING Nestlé Full PRESS Year Results CONFERENCE 2007 February21, 2008

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. 2 SPRING PRESS CONFERENCE 2008

3 Key Figures Sales of CHF 107.6bn, up CHF 9.1bn (+9.2%) Above-target Organic Growth of 7.4% EBIT CHF m, up 12.9%, to 14% of sales Net Profit CHF m, up 15.8% Dividend up 17.3% to CHF SPRING PRESS CONFERENCE 2008

4 4 SPRING PRESS CONFERENCE 2008

5 Continued strong growth Group and Food & Beverages Total Group CHF bn % total % OG % % RIG Pricing % % Acq./Div. Exchange Rates + CHF 9.1 bn 5 SPRING PRESS CONFERENCE 2008

6 Continued strong growth Group and Food & Beverages Total Group CHF bn Food & Beverages CHF bn % RIG % % total % OG % Pricing % % OG % total % Acq./Div % % Exchange Rates % + CHF 9.1 bn + CHF 8.5 bn 6 SPRING PRESS CONFERENCE 2008

7 2007 Highlights all metrics improve Delivering the Nestlé Model Improvements FY 07 v 06 FY 07 Total Sales total Organic growth +9.2 % % + CHF 9.1 bn CHF bn EBIT % + CHF 1.7 bn CHF 15.0 bn EBIT margin + 50 bps 14.0 % Net profit Net profit margin % + 60 bps + CHF 1.4 bn CHF 10.6 bn 9.9 % Working capital (% of sales) -10 bps 6.6 % Operating cash flow % + CHF 1.7 bn CHF 13.4 bn ROIC - before goodwill - after goodwill bps + 50 bps 22.2 % 12.2 % 7 SPRING PRESS CONFERENCE 2008

8 Food and Beverages All metrics improve CHF bn 7.1 % CHF 12.6 bn 12.6 % % Strong % on-going growth % + 40 bps 2006 CHF 91.8 bn 4.2 % 5.9 % CHF 11.2 bn 12.2 % Sales RIG OG EBIT EBIT margin 8 SPRING PRESS CONFERENCE 2008

9 Product groups RIG & organic growth % Growth % RIG % Organic growth Sales CHF bn Powdered & Liquid Beverages (ex-nestléwaters) Nestlé Waters Dairy (incl. Ice cream) Nestlé Nutrition Prepared dishes & cooking aids Confectionery PetCare Pharma Total Beverages (RIG 6.6 % OG 8.9 %) Total Milk, Nutrition & Ice cream(rig 2.8 % OG 8.3 %) 9 SPRING PRESS CONFERENCE 2008

10 14 Primary: RIG & Organic growth % Growth % RIG % Organic Growth Sales CHF bn Zone Europe 28.5 Zone Americas 32.9 Zone AOA 16.6 Nestlé Waters 10 SPRING PRESS CONFERENCE Nestlé Nutrition 8.4 Other F&B 3.5 Total F&B 100.3

11 F&B "Billionaire Brands" represent about 70 % of F&B sales 11 SPRING PRESS CONFERENCE 2008

12 Key Innovation & Renovation supporting our Billionaire Brands NIDO Nutrition System Age specific nutrition solution with probiotics (lactobacillus protectus) Superpremium Chocolate Launch of premium product range Dolce Gusto From 3 countries in 2006 to 11 in 2007 Dibs Low Temperature Freezing Chocolate & Malted Beverages 60/40+ (Actigen-E & Protomalt) NAN, BEBA, NIDINA, NIDAL with BABs strengthening and enhancing the infants immune system 12 SPRING PRESS CONFERENCE 2008

13 R&D Development Platforms will drive further Innovation Functional Quality Nutrition, Health & Wellness Quality & Technology Taste Packaging 60/40 Profiling Systems & Packaging 13 SPRING PRESS CONFERENCE 2008

14 2007 Full Year Results Key factors of margin improvement GROUP EBIT MARGIN + 50 bps (+ 60 constant currency) F&B EBIT MARGIN + 40 bps (+ 50 constant currency) 13.5 % + Operation Excellence + Mix - Input costs CHF spend bn Media % up with sales + Trade spend efficiencies + Volume growth + GNBS + Growth + Efficiencies + 20 Spend % 14.0 % EBIT % + CHF 1.7 bn EBIT COGS Distribution Marketing Administration R&D EBIT SPRING PRESS CONFERENCE 2008

15 Increased earnings per share, proposed dividend and payout ratio Dividend per share CHF Earnings per share (Full) CHF CHF 4.4 bn of shares bought back in 2007 on going % % SPRING PRESS CONFERENCE 2008

16 Improved management of working capital Working capital total (in % sales) bps improvement Working capital total includes Trade receivables, Inventories, Trade payables, Other receivables, Prepayments, Accruals, Current tax payables and Other short term payables. Calculation is based on year-end figures. 16 SPRING PRESS CONFERENCE 2008

17 Strong cash flow generation CHF billion OCF + CHF 1.76 bn FCF + CHF 1.21 bn Free cash flow (FCF) Operating cash flow (OCF) 17 SPRING PRESS CONFERENCE 2008

18 Return on invested capital improves 22.2 % bps 21.2 % 18.9 % 19.9 % 19.9 % 20.8 % 12.2 % 11.7 % + 50 bps 11.4 % 11.0 % 11.0 % 10.8 % including goodwill excluding goodwill 18 SPRING PRESS CONFERENCE 2008

19 Acquisitions Acquisition of Novartis Medical Nutrition Acquisition of Gerber Acquisition of Henniez water in Switzerland Strategic partnership with Belgian luxury chocolate maker Pierre Marcolini Acquisition of Ruzskaya Confectionery Factory in Russia 19 SPRING PRESS CONFERENCE 2008

Divestitures Schöller Private Label ice cream business in Germany Liquid milk businesses in Thailand, Malaysia,

ice-cream and frozen food in Germany Other disposals: Margarine & Fat business in Chile, Negro confectionery business

20 Divestitures Schöller Private Label ice cream business in Germany Liquid milk businesses in Thailand, Malaysia, Singapore and Brunei Disposal of all Nestlé Canada Roast & Ground brands such as CLUB COFFEE, GOOD HOST, ANTHOS COFFEE, SANTOS COFFEE and MARTICAN Disposal of Turtle confectionery brand in USA. Kept brand in Canada Disposal of canned and powdered milk category in Canada Disposal of home delivery service for ice-cream and frozen food in Germany Other disposals: Margarine & Fat business in Chile, Negro confectionery business in Hungary, Jam s culinary products (sauces and others) in Czeck/Slovak,... Nestlé broadens strategic co-operation with Barry Callebaut in Europe 20 SPRING PRESS CONFERENCE 2008

21 2007 Summarised 9.2 % sales growth; 7.4 % organic growth EBIT margin up 50 bps to 14 % Nestlé generated an additional - CHF 9.1 billion of sales - CHF 1.7 billion of EBIT - CHF 1.4 billion of net profit - CHF 1.7 billion of operating cash flow Well placed for further improvement in another year of delivering the Nestlé Model -Strong EPS & share buyback contribute to outperforming long-term shareholder value creation 21 SPRING PRESS CONFERENCE 2008

22 22 SPRING PRESS CONFERENCE 2008

23 Consistent Top-Line Organic Growth for the past 11 Years % Growth 15% 11 years average 10% 5% 2.5% 2.2% 3.7% Acquisitions OG 5.9% 0% -1.5% Divestitures -1.2% Forex -5% OG: Organic Growth -10% RIG Pricing & Other Acquisitions Divestitures FX Impact 23 SPRING PRESS CONFERENCE 2008

24 Sales and Bottom Line Growth over 12 Years Sales in mio CHF EBIT in mio CHF Net Profit in mio CHF m + 78% m m + 144% 6 155m + 213% m 3 401m SPRING PRESS CONFERENCE 2008

25 Sales and Bottom Line Growth over 12 Years Sales in mio $ EBIT in mio $ Net Profit in mio $ m m + 153% 8 904m + 84% + 225% m 4 964m 2 743m SPRING PRESS CONFERENCE 2008

26 Demographics Focusing on the Low and High Ends Consumption of food manufacturing value-added actual US$, per capita $240 billion opportunity PREMIUMIZATION Sustenance Growth scenario ( ) + US$ 70bn 6.9% p.a. Convenience Pleasure and diversity Nestlé per capita sales Growth scenario ( ) + US$ 170bn 5.9% p.a. PPP Per-capita income (PPP) US$ 1,500 5,000 13,000 22,000 Sources: UNIDO (value-added), WIDER and World Bank; Nestlé F&C; analysis EIR 28, SPRING PRESS CONFERENCE 2008

27 The Nestlé Fleet Strategy 27 SPRING PRESS CONFERENCE 2008

28 GLOBE leverage our size as a strength unite/align the Group internally to be more competitive externally exploit the power of e-technology 28 SPRING PRESS CONFERENCE 2008

29 Total Shareholder Return over 12 Years 29 SPRING PRESS CONFERENCE 2008

30 Nestlé Rated 7 TH in Barron s Survey: Most Respected Companies 30 SPRING PRESS CONFERENCE 2008

31 Articles of Association Quorum, Majority OLD: attendance quorum, super majority NEW: twothirdmajorityof shares representedat AGM 31 SPRING PRESS CONFERENCE 2008

32 Articles of Association Right of Proposal on AGM Agenda OLD: one million shares (~ 0.25% of capital) NEW: 0.15% of sharecapital 32 SPRING PRESS CONFERENCE 2008

33 Articles of Association Terms of Office for Board Members OLD: 5 years NEW: 3 years 33 SPRING PRESS CONFERENCE 2008

34 Articles of Association Voting Limitations OLD: 3 percent NEW: 5 percent 34 SPRING PRESS CONFERENCE 2008

35 35 SPRING PRESS CONFERENCE 2008

36 Outlook 2008 The Nestlé Model Organic Growth 5 6 % Further improvement of EBIT margins in constant currencies Further capital efficiencyimprovement 36 SPRING PRESS CONFERENCE 2008

37 37 SPRING PRESS CONFERENCE 2008

38 Next Media Events 10 April 2008 Annual General Meeting 21 April 2008 First Quarter Sales 7 August 2008 Half-Year Results 23 October 2008 Autumn Press Conference 38 SPRING PRESS CONFERENCE 2008

2007 full year conference call

2007 full year conference call 2007 full year conference call - 21 February 2008 Disclaimer 2 2007 full year conference call - 21 February 2008 This presentation contains forward looking statements which