Nestlé Group 2015

In millions of CHF (except for data per share) 2015

Results

Sales 88 785

Trading operating profit 13 382

as % of sales 15.1%

Profit for the period attributable to shareholders of the parent (Net profit) 9 066

as % of sales 10.2%

Balance sheet and Cash flow statement

Equity attributable to shareholders of the parent 62 338

Net financial debt 15 425

Ratio of net financial debt to equity (gearing) 24.7%

Operating cash flow 14 302

as % of net financial debt 92.7%

Free cash flow (a) 9 945

Capital expenditure 3 872

as % of sales 4.4%

Key figures (consolidated)

Data per share

Weighted average number of shares outstanding (in millions of units) 3 129

Basic earnings per share CHF 2.90

Underlying earnings per share (b) CHF 3.31

Dividend as proposed by the Board of Directors of Nestlé S.A. CHF 2.25

Stock exchange prices (high/low) CHF 77.00/64.55

Yield (c) % 2.9/3.5

Market capitalisation, end December 229 947

(a) Operating cash flow less capital expenditure, expenditure on intangible assets, investments (net of divestments) in associates and joint ventures, and other investing cash flows.

(b) Profit per share for the year attributable to shareholders of the parent before impairments, restructuring costs, results on disposals and significant one-off items. The tax impact from the adjusted items is also adjusted for.

(c) Calculated on the basis of the dividend for the year concerned, which is paid in the following year, and on high/low stock prices.

Analysis of sales, trading operating profit and organic growth (OG)

By operating segment

In millions of CHF Sales

Trading operating

profit OG

Zone AMS 25 844 5 021 +5.5%

Zone EMENA 16 403 2 572 +3.7%

Zone AOA 14 338 2 632 +0.5%

Nestlé Waters 7 625 825 +6.7%

Nestlé Nutrition 10 461 2 361 +3.1%

Other businesses (a) 14 114 2 221 +5.3%

Unallocated items (b) (2 250)

Total Group 88 785 13 382 +4.2%

In millions of CHF Sales

Trading operating

profit OG

Powdered and Liquid Beverages 19 245 4 100 +5.4%

Water 7 112 796 +7.0%

Milk products and Ice cream 14 637 2 471 +1.7%

Nutrition and Health Science 14 854 2 909 +4.4%

Prepared dishes and cooking aids 12 579 1 724 +0.1%

Confectionery 8 870 1 246 +6.2%

PetCare 11 448 2 386 +5.9%

Unallocated items (b) (2 250)

Total Group 88 785 13 382 +4.2%

(a) Mainly Nespresso, Nestlé Professional, Nestlé Health Science and Nestlé Skin Health.(b) Mainly corporate expenses as well as research and development costs.

By product

Contact

www.nestle.com

MediaNestlé S.A.Corporate Media RelationsAvenue Nestlé 55 CH-1800 Vevey (Switzerland)Tel. +41 (0)21 924 22 00Fax +41 (0)21 922 63 34mediarelations@nestle.com

InvestorsNestlé S.A.Investor RelationsAvenue Nestlé 55 CH-1800 Vevey (Switzerland)Tel. +41 (0)21 924 35 09Fax +41 (0)21 924 48 00ir@nestle.com

ShareholdersShare register: registrations, transfers, dividends, etc.Nestlé S.A. Share Transfer OfficeZugerstrasse 8 CH-6330 Cham (Switzerland)Tel. +41 (0)41 785 20 20Fax +41 (0)41 785 20 24shareregister@nestle.com

Company profile

Nestlé has factories in 85 countries and sales in 189 countries around the world and 335 000 employees.

Employees by geographic area

Factories by geographic area

AMS 32.5% 161

EMENA(a) 34.7% 166

AOA 32.8% 109

(a) 10 885 employees in Switzerland in 2015.

The Nestlé Story – all the way to Nutrition, Health and Wellness

1866 Foundation of Anglo-Swiss Condensed Milk Co.

1867 Henri Nestlé’s Infant cereal developed

1905 Nestlé and Anglo-Swiss Condensed Milk Co. (new name after merger)

1929 Merger with Peter, Cailler, Kohler Chocolats Suisses S.A.

1934 Launch of Milo

1938 Launch of Nescafé

1947 Nestlé Alimentana S.A. (new name after merger with Maggi)

1948 Launch of Nestea and Nesquik

1969 Vittel (initially equity interest only)

1971 Merger with Ursina-Franck

1973 Stouffer (with Lean Cuisine)

1974 L’Oréal (associate)

1977 Nestlé S.A. (new name), Alcon (disposal in 2010)

1981 Galderma (joint venture with L’Oréal – full acquisition in 2014)

1985 Carnation (with Coffee-mate and Friskies)

1986 Creation of Nestlé Nespresso S.A. and Herta

1988 Buitoni-Perugina and Rowntree (with KitKat)

1990 Cereal Partners Worldwide (joint venture with General Mills)

1991 Beverage Partners Worldwide (joint venture with Coca-Cola)

1992 Perrier (with Poland Spring)

1993 Creation of Nestlé Sources Internationales (2002: Nestlé Waters)

1997 Creation of Nutrition Strategic Business Division (2006: Nestlé Nutrition)

1998 Sanpellegrino and Spillers Petfoods, Launch of Nestlé Pure Life

2000 PowerBar (disposal in 2014)

2001 Ralston Purina

2002 Schöller and Chef America

Dairy Partners Americas (joint venture with Fonterra – full acquisition in 2014)

Laboratoires innéov (joint venture with L’Oréal – liquidated in 2015)

2003 Mövenpick and Dreyer’s

2005 Wagner

2006 Creation of FoodServices Strategic Business Division (2009: Nestlé Professional)

Lactalis Nestlé Produits Frais (associate)

Jenny Craig (disposal in 2013), Uncle Tobys and Delta Ice Cream

2007 Novartis Medical Nutrition, Gerber and Henniez

2008 Ruzanna

2010 Kraft Food’s frozen pizza, Waggin’Train, Malher, Technocom and Vitaflo

2011 Creation of Nestlé Health Science and Nestlé Institute of Health Sciences

Prometheus, Yinlu and Hsu Fu Chi (partnerships)

2012 Wyeth Nutrition

2013 Pamlab

2014 Creation of Nestlé Skin Health

2015 Merrick PetCare (acquisition), Davigel (disposal)

Our ambition

With our Nutrition, Health and Wellness strategy we support people who want to live a

healthier lifestyle. We enhance lives with science-based nutrition and health solutions for

all stages of life, helping consumers care for themselves and their families. Industry-leading

Research and Development drives innovation and supports the constant renovation of our

food and beverage portfolio. In addition, our researchers are exploring the role of nutritional

therapies to maintain or improve health and investigating how we can help people look after

their skin.

We take pride in providing our consumers with products and services of the highest

quality, building trust with every consumer contact we make. By sharing our insights on

global Nutrition, Health and Wellness challenges, by building partnerships and by engaging

with policymakers, stakeholders and key opinion leaders, we strive to have a positive

impact on society. For our business to prosper over the long-term, we must deliver value

to the communities where we have a presence and to society as a whole, as well as to our

shareholders. This is what we call Creating Shared Value.

The Nestlé Strategic Roadmap

The Nestlé Strategic Roadmap

is our compass, driving

internal alignment behind our

goals. The roadmap shows

the strengths we leverage to

drive performance and deliver

competitive advantage.

Our strong culture, values

and principles, all based on

respect, unite us worldwide.

Com

plia

nce

– Su

stai

nabilit

y Creating Shared Valu

e

Nestlé culture, values and principles

Nutrition, Health and Wellness

Emerging markets and

Popularly Positioned Products

Out-of-home consumption

Premiumisation

Unmatchedproduct

and brandportfolio

Unmatched research and development

capabilityUnmatched geographic

presence

People, culture, values

and attitude

Consumerengagement

Operationalefficiency

Whenever,wherever, however

Innovation and renovation

Operational pillars

Growth drivers

Competitive advantages

Our objective is to be the leader in Nutrition, Health and Wellness, and the industry reference for financial performance, trusted by all stakeholders