Slide 1: Towards regenerative performance in Europe
CAGNY 2022 Towards regenerative performance in Europe Marco Settembri EVP & CEO Zone Europe
Slide 2: Our business in Zone EMENA
Our business in Zone EMENA Key 2021 figures Where we sell2 What we sell2 Europe, Powdered & PetCare Prepared dishes Middle East and Western Central Liquid Beverages & cooking aids Europe North Africa1 & Eastern 64% Europe 18% 24% 21% 15% CHF 25.8 bn Confectionery Water Nutrition Dairy Zone EMENA2 CH
Slide 3: Transformed to be a more focused, competitive and agile organization
Transformed to be a more focused, competitive and agile organization Creation of 7 category organization Federating smaller markets Major efficiencies in operations Coffee Nutrition & Dairy Petcare Nestlé professional >CHF 650 m Food cost savings 2018-2021 Waters Confectionery • Consumer focus & cat
Slide 4: Delivering strong operating performance
Delivering strong operating performance Accelerating organic growth Reducing structural costs Increasing margin % of Zone sales Underlying TOP margin 7.2% 2.9% 2.8% 20.7% 2.1% 1.9% 18.5% 1.4% 19.0% 17.3% 2016 2017 2018 2019 2020 2021 2016 2021 2016 2021 Creating value for our society and shareholder
Slide 5: Consumers more pro-active on environmental topics in Europe
Consumers more pro-active on environmental topics in Europe % of eco-active consumers Key concerns Implications for brands EUR World GER 47% Climate change 49% 42% >4x faster growth rate for eco-aligned brands UK 29% Plastic Waste 40% 34% >60% shoppers chose World 22% Water pollution 34% 36% an alte
Slide 6: Europe stepping up regulation to become carbon neutral
Europe stepping up regulation to become carbon neutral Climate law Farm to fork strategy 2030 biodiversity Circular economy action stragtegy plan • Setting legally binding net • Rewarding sustainable • Promoting value chains with • Prioritizing collection & zero targets agriculture positive impact r
Slide 7: Towards regenerative performance
Towards regenerative performance Our Purpose Our Promise Our Approach Unlocking the power of food to To advance regenerative food Commitments for People, Families & enhance quality of life for everyone, systems at scale. Pets. People in communities, People today and for generations to come. & Planet
Slide 8: Evolving the Virtuous Circle, our operating model
Evolving the Virtuous Circle, our operating model Structural cost control Consumer relevant innovation Sustainability investment Brands with Purpose CAPEX CO2e reduction Brand trust, corporate reputation Contributing to better diets Increased competitiveness Moderate underlying TOP Organic growth an
Slide 9: A clear path to regenerative performance
A clear path to regenerative performance Portfolio transformation Transforming Reducing environmental impact of our existing products our product portfolio Prioritizing Born-pure Sustainable Sourcing, Packaging Evolution, Renewable Energy, Logistics regenerative products growth Diagram for illustrat
Slide 10: Coffee category thrives on taste, pleasure and convenience
Coffee category thrives on taste, pleasure and convenience 1 Attractive market with high ability to win for Nestlé • CHF 23 BN market @ 7% value growth* • Premiumization as key driver • Sustainability increasingly relevant An industry facing challenges • Packaging impact • Long-term green coffee sou
Slide 11: Nestlé is building a regenerative future for coffee
Nestlé is building a regenerative future for coffee 1 Trusted by consumers Sustainability already Leading industry and embedded in our business consumers to regeneration Market leader Innovation Brand power 100% responsibly sourced Packaging designed for recycling green coffee (2022) Regenerative co
Slide 12: Driving growth of better impact products and services: petcare
Driving growth of better impact products and services: petcare 2 Purpose-driven UK social generation brand >30% growth • 100% natural & digital-born • Millennial consumer appeal • Certified B-corp 12 February 25, 2022 CAGNY
Slide 13: Transforming our product portfolio: plant-based
Transforming our product portfolio: plant-based 3 Fast-growing category Nestlé has all the capabilities to win 5 CHF bn by 2025 Market leader and gaining share @10-15% CAGR 60% 20% • Taste and nutritional advantage consumers household penetration willing to try growth annually • Brand equity, streng
Slide 14: Levers to evolve our business towards regenerative performance
Levers to evolve our business towards regenerative performance Organization and talent Brands with Purpose >100 sustainability dedicated employees* >10 carbon neutral brands by 2025 *Full time equivalents Premiumization Digitalization 34 % of sales in premium with 91% Starling monitored +28% e-comme
Slide 15: Key takeaways
Key takeaways • Delivering strong operating performance through a focused and agile organization • Sustainability is top of mind for European consumers • Integrating sustainability in every area of our business • Evolving to regenerative performance to unlock growth opportunities 15 February 25, 202