Nestlé (NESN) 9 Months Sales Presentation summary

Nine-month performance and outlook

• Total sales CHF 82.8bn, up 6.1%; Food & Beverages sales CHF 77.0bn, up 5.7%.

• Organic growth for both total sales and Food & Beverages was unchanged from H1; broad-based performance across geographies and product groups.

• Guidance unchanged: organic growth of ~5%, combined with improved EBIT margin in constant currencies; economic conditions mixed and outlook unclear.

Geographic and product breadth

• Positive real internal and organic growth in all regions; developed markets grew in the Americas and Europe, while AOA emerging markets grew at double-digit rates.

• All product groups contributed to growth, spanning beverages, water, milk products and ice cream, nutrition, prepared dishes, confectionery, PetCare and pharma.

• Strategic growth drivers included emerging markets and popularly positioned products, Nutrition, Health and Wellness, premiumization, out-of-home consumption and consumer communication.

Strategy and U.S. business

• Strategic objective: lead in Nutrition, Health and Wellness and serve as an industry reference for financial performance; roadmap emphasizes innovation, efficiency, sustainability and compliance.

• U.S. sales reached $25.4bn in 2009, 25.6% of total sales; U.S. operations had 78 factories, 51,000 employees and nine billionaire brands.

• U.S. portfolio priorities included food prepared at home, beverages, and indulgence and snacking; 12 brands representing 70% of sales held #1 or #2 market positions.