Innovation for the future. Nestlé s Research and Development in Switzerland
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1 Innovation for the future Nestlé s Research and Development in Switzerland 1 /R&D April 2008
2 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. 2 /R&D April 2008
3 R&D at Nestlé: an incomparable science & technology resource Worldwide 5,000 employees R&D investment CHF 1.9 billion p.a. Minneapolis Fremont Solon Marysville St. Louis Queretaro York Amiens Beauvais Lisieux Tours Vittel NRC Lausanne Osthofen Singen Rzezsow Konolfingen Beijing (2008) Orbe Bev. Centre Orbe Sderot Casa Buitoni Shanghai Singapore 1 Research Centre 23 Product Technology Centres and R&D Centres 280 User Groups 3 /R&D April 2008
4 140 years R&D in Switzerland Successful innovations for 140 years... Future with more than 1,400 Nestlé R&D employees in Switzerland and over CHF 350 million investments in R&D facilities in the last 20 years 4 /R&D April 2008
5 Nestlé s R&D presence in Switzerland Nestlé Product Technology Centre Orbe Nestlé Research Centre Lausanne Nestlé Product Technology Centre Konolfingen NESTLÉ PROFESSIONAL Beverage Centre, Orbe Chocolate Centre of Excellence, Broc 5 /R&D April 2008
6 Nestlé Research Centre opened in 1987; 700 employees Basic research, nutrition, health and quality. Over 250 scientific publications a year Health needs of consumers Research areas: Nutrition and health Food science Interactions between food and consumer Bioanalysis Allergy prophylaxis Protection Weight Management Weight management Growth & development Growth & Development Digestive Comfort Digestive comfort Beauty from within Skin Health & Beauty Healthy Recovery Reconvalescence Performance Performance Healthy Ageing Healthy ageing 6 /R&D April 2008
7 Product Technology Centre Orbe opened in 1959; 430 employees The leading centre for: Nescafé Nespresso Dolce Gusto Nesquik and Incarom Breakfast cereals and cereal bars Infant cereals 7 /R&D April 2008
8 NESTLÉ PROFESSIONAL Beverage Centre Orbe opened in 2007; 40 employees NESTLÉ PROFESSIONAL Beverage Centre, Orbe Nestlé Professional global centre for beverage system solutions: Products (coffee, coffee blends, cocoa beverages) Product systems and vending machines Product & packaging innovation Advanced powder technology Ergonomic design of equipment Food safety and hygiene Nutritional benefits 8 /R&D April 2008
9 Chocolate Centre of Excellence Broc (opening scheduled for 2009) Development of premium and luxury chocolate Partnership with the world s best confectioners Chocolate science, cocoa cultivation and quality Sensory expertise Product and packaging design 9 /R&D April 2008
10 Product Technology Centre Konolfingen opened in 1974; 250 employees Innovative solutions in the areas of: Milk products Baby food Clinical special products Dietetic specialities Coffee whiteners 10 /R&D April 2008
11 Product Technology Centre Konolfingen Areas of competence and extension Konolfingen s areas of competence: Nutritional solutions with scientifically documented consumer benefits Enzyme technology for better digestion and allergy prophylaxis Cutting-edge technology for conservative heat treatment and aseptic filling Process technology and hygienic design Extension of test facilities Investment: CHF 40 million Completion: March /R&D April 2008
12 From research to factory From idea to process: Development of revolutionary technology for drying Production process for probiotic cultures airv d* = 18 η Δρu 2 2πh i. i From process to industrial scale-up: State-of-the-art computer programs for the industrial scale-up of processes developed in the laboratory Interdisciplinary team of specialists from Research, Production, Quality Assurance and Nestlé Nutrition for development of the factory line Safe production in the factory: Highly developed process control systems with state-of-the-art simulation technology for efficient operation of the complex systems 12 /R&D April 2008
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