Nestlé in the USA &

Frozen Meals Performance

February 23, 2017

Jeff Hamilton

President

Nestlé Food Division

Nestlé USA

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.

February 23, 2017 CAGNY 20172

Petcare

Waters

Frozen Food (ex-Pizza)

Frozen Pizza

Infant Formula & Baby Food

Ice Cream

Coffee Creamers

Confectionary

All Other

(% of Nestlé USA)

27%

15%

9%

5%

8%

7%

6%

5%

17%

USA is a key contributor to Nestlé Global

3

Group Sales

Nestlé USA

30%

Nestlé

Global

Total Nestlé USA: USD 27 bn

Source: Nestle internal data

We operate in a broad range of categories with leading brands

$3.7bn

$8.4bn

$10.9bn

$8.4bn

$17.4bn

$20.2bn

$26.6bn

Coffee & Creamers

Nutrition

Ice Cream

Waters

Frozen Food

Confections

Petcare

#1 (Baby Food)

4 Source: Nielsen Scanning, xAOC for all categories except Confections, Waters, Ice Cream and RTD Milk which reflect xAOC+C

#1

#4

#1

#1

#1

#1

Nestlé Prepared Foods Sales ($2.6B)

5

STOUFFER'S60%

LEAN CUISINE30%

BUITONI10%

STOUFFER'S LEAN CUISINE BUITONI

SINGLE-SERVE50%

MULTI-SERVE50%

SINGLE-SERVE MULTI-SERVE

2016 Nestle Retail $ Value

Source: Nielsen RMS, xAOC, 52WE 12/31/16

US Frozen Meals Category was in steady decline

6 Source: Nielsen RMS, xAOC, 2010 - 2014

$7'919 $7'959 $7'683

$7'340 $7'107

$0

$1'000

$2'000

$3'000

$4'000

$5'000

$6'000

$7'000

$8'000

$9'000

2010 2011 2012 2013 2014

Mill

ions

Category Value 2010-2014 (CAGR –2.7%)

FROZEN PREPARED MEALS

7

Fundamental Change to Return the Business to Growth

Better reflect changing consumer

trends in our brands

Drive clean label recipes

across the portfolio

Extend brand reach to

attractive new territories

Leverage digital and social media to

communicate more effectivelyTake a Total Market Approach

to communication

Stouffer’s has Evolved

8

Help America enjoy a Real Dinner every night

FROM TO

Focus on simple,

high quality

ingredients

Reach new

Consumers

America’s Favorite

Comfort Food

Fit Kitchen for consumers

with an ‘Active Lifestyle’

TOMATO PUREE (WATER, TOMATO PASTE), BLANCHED LASAGNA (WATER,

SEMOLINA), WATER, COOKED BEEF, LOW-MOISTURE PART-SKIM MOZZARELLA

CHEESE (PASTEURIZED PART-SKIM MILK, CHEESE CULTURES, SALT, ENZYMES),

PART-SKIM MOZZARELLA CHEESE AND MODIFIED CORNSTARCH (PART-SKIM

MOZZARELLA CHEESE [PASTEURIZED MILK, SALT, CULTURES, ENZYMES],

MODIFIED CORNSTARCH NONFAT MILK, FLAVORS), DRY CURD COTTAGE

CHEESE (CULTURED SKIM MILK, ENZYMES), MODIFIED CORNSTARCH, SALT,

BLEACHED WHEAT FLOUR, DEHYDRATED ONIONS, SUGAR, PARMESAN CHEESE

(CULTURED MILK, SALT, ENZYMES), SPICES, SEASONING (SOY SAUCE [WATER

SOYBEAN, WHEAT, SALT], AUTOLYZED YEAST EXTRACT, DEXTROSE, SOYBEAN

OIL), YEAST EXTRACT, DEHYDRATED GARLIC

MEAT SAUCE: WATER, BEEF, MODIFIED CORNSTARCH, TOMATO

PASTE, SALT, WHEAT FLOUR, DEHYDRATED ONIONS, DEHYDRATED

GARLIC, SUGAR, SPICES, SOY SAUCE [WATER, SOYBEAN, WHEAT

SALT], PASTA: WATER, SEMOLINA, CHEESE: SKIM MILK, MODIFIED

CORNSTARCH, SALT, CULTURES, ENZYMES, FLAVORS

83 Words* 35 Words*

* Stouffer’s Meat & Sauce Lasagna

Stouffer’s Fit Kitchen Communication

9

Lean Cuisine successfully repositioned

10

Feeding your Phenomenal

FROM TO

Range

Segmentation

New Health

Benefits

Modern Culinary

Recipes

Lean Cuisine Communication

11

Frozen Meals Category has stabilized

12 Source: Nielsen RMS, xAOC, 2012 – 2016

$7'919 $7'959 $7'683

$7'340 $7'107 $7'019 $7'019

$0

$1'000

$2'000

$3'000

$4'000

$5'000

$6'000

$7'000

$8'000

$9'000

2010 2011 2012 2013 2014 2015 2016

Mill

ions

Category Value 2010-2016

FROZEN PREPARED MEALS

Nestlé has Pulled the Category Back to Growth

13

-5.2%

-2.5%

-5.1%

-7.2%-7.9%

-8.6%

-5.2%

3.5%3.1%

2.5%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

FH 2012 BH 2012 FH 2013 BH 2013 FH 2014 BH 2014 FH 2015 BH 2015 FH 2016 BH 2016

$ % Chg vs YA

NESTLE FROZEN PREPARED MEALS

Source: Nielsen RMS, xAOC, 2012 – 2016

Category growth has improved with Nestlé consistently above the category since relaunch

14

85.0

90.0

95.0

100.0

105.0

110.0

Dollar Index vs Year AgoTotal Frozen Prepared Meals

Category Nestlé

Pre period: Category -2.8%, Nestlé -7.3% Post period: Category -0.2%, Nestlé +2.8%

Source: Nielsen RMS, Rolling 12 weeks, Total XAOC - Frozen Prep Foods Databases data through 01/28/17

15

Provides simple management

of portion control

Perfect preservation –

frozen at the peak of

freshness

Frozen delivers on fundamental consumer needs…

Supports controlled

intake of sodium

and calories

Increases

convenience and

eases hectic

lifestylesReduces

food

waste

Helps consumers understand

and ensure nutritional balance

And is an attractive business

16

Category is large and

profitable

High growth segments

yet to be fully penetrated

Improving category trends as

offerings become more relevant

Supplier investment and retailer

commitment have returned

Nascent opportunity

in eCommerce

$17 B

Virtuous

Circle

How to Sustain the Performance

17

Evolve core business in line

with consumer trends

Increase participation in high growth

segments and channels

Drive cost efficiencies to improve

ROIC and invest for growth

Expect to achieve sustainable low-

to-mid single digit growth