Affordable Milk

Tactically Priced Local Brands

Affordable Dairy Based Nutrition

A Global Strategic Platform

Transform our Business

FROMTACTICAL

TOSTRATEGIC

Strictly confidential for internal use only

Mexico

Argentina

CWAR

Morocco

Pakistan

Malaysia

Bangladesh

Philippines

Indonesia

Colombia

NEARCentral Am

Srilanka

Chile

Ecuador

Brazil

Algeria

Caribbean Reg

Other Brands

Thailand

Venezuela

EAR

NIDO Brand

USA

ME

Strictly confidential for internal use only

5%10%51%

Sale

s C

on

trib

uti

on

%

ValueBrand Proposition / Price

DifferentiationRight balance of functional and emotional benefits

CommodityBasic proposition

PriceTactical Pricing

Competition

Current Nestlé

Portfolio

4

Destination

Same Global strategy through local brands

Aligned brand properties

Local Adaptation and Execution

1

2

3

18% NNS

Best Practice

51% NNS

16% NNS

5% NNS

10% NNS

5

• Value added products and brands are

increasing penetration

• Consumers are becoming more health-

conscious.

Getting sick is not an option

• Rely on brands as they give more confidence

of what they are buying

Key Trends

“ Everyday I fight to keep my family on course for a better life, I fear we will fail if

I don’t make the right decisions “

• Mother of several young children determined to have a better life, who perseveres despite her family’s day to day struggle.

• She believes she can make the difference and understands the value of everyday victories.

7

Target Consumer - Life fighter mom

Mother of young children determined to have a better life, who perseveres despite her family’s day today struggle.

She believes she can make the differencein her children’s life and understands the

value of everyday life victories.

Product / Service Attributes

• Tasty Healthy Dairy Based Solutions enriched with essential micronutrients that are proven to

help solve key nutritional gaps in children.

• Accessible nutrition on a daily basis

• Nestlé Quality – Assurance

• CSV - Nutrition education

Brand Benefits

Emotional

• Empowers me to make a difference for my family’s better life.

Functional

• Filling nutritional gaps that gives my family the strength tokeep moving forward day by day.

Brand Personality

• Reassuring, knowledgeable, caring partner

CORE ESSENCE

Strengthening families for a better life

Strength that counts everyday

Your strength is what gets you out of bed in the morning to face the day.

It is so big it extends to those you love most – Your family.

Although it isn't always easy, you trust in this strength, you trust in their potential. It keeps you and your family going to make things right each and everyday.

Helping you move together, step-by-step, the essential nutrition of Nestlé Ideal, gives you and your loved ones the support day-by-day to be healthier and stronger.

So together you have the strength to move forward, to go further and live a better life.

Nestlé Ideal. Strength that counts everyday

9

Brand Logo

From Nestlé

Differentiated Colour Code

Strength Device

a

b

c

d

10

• This is the new logo for our PPP Brands, to be implemented with your local Brand.

• It consists of the shield + Nestlé + brand name + sun ray and needs to be used always under a blue background.

• The logo shape will be registered but needs local follow-up.

• The brand Logo should be used in all visual communications.

Pantone 3125 C

CMYK

83%0%21%0%

RGB

0181204

Why this blue?• Unique• Recognizable on Shelf• Related to Dairy Category• Proven to differentiate (PH case)

The Strength Device is a clear and simple reflection of key benefit, universally understood.

a

c d

• Reassurance is key for our target consumers therefore using endorsement from the corporate brand in order to leverage NESTLÉ’s food quality and trust.

• The corporate brand endorsement must appear in all communications.

• Peel Away following NIM

b

Appetite Appeal:Helps to visually explain the product and generate attraction.

Banner:Connects the product with the family and lists main Micronutrients. The prefix NUTRI is used in all product variants.

Logo:The brand name can be adapted by market. Logotype guidelines need to be followed.

Family Image:Parents or just mother with children using the strength pose to reiterate the product benefit. Picture is just for reference to be adapted with local consumers.

GUMS Affordable Milk Dairy Based Beverage Cereal Beverage NutriPack

Children driven All Family

(Affordable Nutritious dairy based)

Junior

(Affordable Gums)1 3 12

Accessible daily nutrition, to keep

the child and family strong for

a healthy life.

(Dairy-based Beverage. Formulation compliant to enriched beverages).

NUTRI DRINK

Accessible daily nutrition for my little ones, that

strengthens them since the beginning

to have a healthy life.

NUTRI JUNIOR

Accessible daily nutrition, to keep

the child and family strong for

a healthy life.(Formulation compliant to PPP milk guidelines).

NUTRI MAX

Accessible enhanced nutrition in a small serving

which can be consumed on its own or added to

food.

NUTRI PACK

Accessible daily nutrition to keep the family strong

through Flavours + a cereals beverages.

NUTRICEREAL DRINK

Strictly confidential for internal use only

Current Transition Destination

Indicative transition examples

PPP needed to improve micronutrients deficiency across the world

Vit. A

IodineIron

Zinc

4 micronutrients deficiency in the world

Health Economic Study: A new business model to engage with the consumers, communities and stakeholders

Improved Nutrition

Fortified Milk

Iron, VitC, Zinc Anaemia Reduction

by 50%

Literature Review

Partner with KOL

in H. E. studies & CTs to fight micronutrient deficiency &

childhood illness

Improved Performance

Reduced Illness

Productivity gain 5-17%

Reduction in Cost of Illness

Cost Effective Willingness to

pay

Higher Incomes

GDP gain 0.2% ($0.35 bio)

4.5% Reduction in health cost

Malnutrition

Micro Nutrient Deficiency

36% of children

Burden of disease $ 0.5 bio

Philippines Example

Low Energy

LowImmunity

Absence

Strictly confidential for internal use only

Health Economics Study enables Bear brand contribute to Nation building by strengthening Filipino children against

MND

Partnership with gov’t/NGO nutrition

programs

KeyMessage

Reason to Believe

Communication

HE Approach/Step

Otheropportunities

Effectiveness of Fortification

BEAR BRAND helps in nation building

Phase 4-52018-onwards

FNRI-NESTLE collaborative study

BEAR BRAND is proven effective to help fight

micronutrient deficiency

Current 2013 – Q1 2014

• Iron deficiency leads to fatigue among children•Zinc/Vitamin C increase

body resistance

•FNRI recommended MN •High source: Iron, Zinc,

100% Vitamin C•Molar ratio: (Iron:Vitamin C)•Health Economics: COI Study

BEAR BRAND is made more effective to help fight MND

Phase 22014-2015

•New MN cocktail•Cost impact of MND

Project Trump: Part 1Improved MN cocktail

FNRI-NESTLE Clinical Trial

Clinically proven BEAR BRAND

Phase 32016 – 2017

•Reduce childhood common illness by half• Improve school

performance

Project Trump: Part 2Bioavailable Iron

Cost of Illness (COI) Study

Cost Effectiveness: Effectiveness, COI, WTP

I & R

New Business Model/CSV Program

Strictly confidential for internal use only

Using the Health Economics Study to engage with consumers

BEAR BRANDFight Micro Nutrient deficiency

Campaign

Non-branded TV

Press Conference with KOL

TV & Radio Segment Buys with KOL

Trade displays

Unbranded School Nutrition Education program

Press releases

Branded TVC

Print AdBranded TVC