Enhancing quality of life and contributing to a healthier future

Enhancing quality of life and contributing to a healthier future www.nestle.ch

Nestlé in Switzerland April 2017

Nestlé at a glance in 2016 Turnover (in CHF million) 89 469 worldwide Employees 328 221 worldwide 1475 in Switzerland 87 994 rest of the world 10 046 in Switzerland 318 175 rest of the world Investments (in CHF million) 4010 worldwide Research and Development (in CHF million) 1736 worldwide 311 in Switzerland 3699 rest of the world 949 in Switzerland 787 rest of the world Nestlé in Switzerland 2016 Number of jobs directly or indirectly associated with the Nestlé Group in Switzerland approx. 38 000 Total compensation (including welfare expenses) CHF 2.09 billion Further training CHF 15 million Expenditure on raw materials and packaging materials in Switzerland CHF 1.086 billion Expenditure on third-party services in Switzerland CHF 956 million Investment in sustainability projects and environmental activities CHF 2.8 million Excluding associated companies and joint ventures

Nestlé in Switzerland the roots of our success More than 150 years ago, Henri Nestlé developed an innovative product in his laboratory in Vevey: an infant cereal that would save the lives of thousands of babies. Since its foundation, Nestlé has helped make the world a better place with its products and services. Millions of people are living better and healthier lives thanks to innovation at Nestlé. We are proud of what we have achieved and will continue along this path. We celebrated our landmark anniversary with all our employees in Switzerland. After all, although Nestlé s success is global, it has its roots in Switzerland. Nestlé creates thousands of jobs in Switzerland, buys millions of francs worth of raw materials from Swiss farmers and invests billions in operations as well as in research and development in Switzerland. The fact that Nestlé is celebrating a success story spanning more than 150 years owes a lot to Switzerland.

Enhancing quality of life and contributing to a healthier future We live in times of immense challenge, unprecedented change and extraordinary possibility. All over the world, people strive to enjoy healthy and fulfilling lives, sometimes in difficult situations. The use of natural resources puts stress on our environment and on the stability of communities. Yet human creativity, technology and a commitment to progress open up new possibilities every day to improve lives and help create a healthy and sustainable future for all. We at Nestlé touch billions of lives worldwide; from the farmers we work with to the individuals and families who enjoy our products, the communities where we live and work, and the natural environment upon which we all depend. Their challenges are our challenges. Their success is success in which we all share. Inspired by the scientific breakthrough of our founder, Henri Nestlé, guided by our values and with nutrition at our core, we work alongside partners to enhance quality of life and contribute to a healthier future.

This means: For individuals and families we offer products and services that enable healthier and happier lives. For our communities we help develop thriving and resilient communities and support better livelihoods for those we live and work with. For the planet we shape sustainable consumption and steward resources for future generations. This is how we contribute to society while ensuring the long-term success of our company.

Our contribution to the Swiss economy With a turnover of CHF 89.5 billion in 2016, Nestlé is one of the largest companies in the world. In Switzerland, the company posted turnover of CHF 1.475 billion. The Nestlé Group operates 418 factories in 86 countries throughout the world. Production for global export In 2016, 82 % of the products made at the 11 Swiss manufacturing sites were exported. High level of investment in Switzerland From 2007 to 2016, Nestlé invested CHF 3.8 billion in Switzerland. In 2016, Nestlé invested CHF 311 million in production and distribution infrastructure in Switzerland. Strong research location in Switzerland In 2016, Nestlé spent CHF 949 million on research and development in Switzerland, or 55 % of the global research budget. Swiss raw materials and services In 2016, Nestlé spent CHF 1.086 billion on agricultural commodities and packaging materials for production in Switzerland. It spent CHF 956 million on services in Switzerland. A major taxpayer Nestlé is one of the largest taxpayers in Switzerland, both directly through corporate tax and indirectly via the income tax and social insurance payments of its 10 046 employees in Switzerland.

Jobs in Switzerland for Switzerland In Switzerland, around 10 000 people of more than 115 different nationalities work directly for the Nestlé Group. In 2016, total compensation expenses came to some CHF 2 billion. A major employer From 2007 to 2016, Nestlé created more than 4800 new jobs in Switzerland. For every worker directly employed by Nestlé, there are around three and a half indirectly employed workers in areas that are connected either directly or indirectly with the company. A popular employer Nestlé is one of the most attractive employers in Switzerland for students and professionals in business and economics. This is confirmed by numerous independent surveys. An employer that promotes continuous learning 2106 company employees from throughout the world took part in management seminars at the company s own training and conference center, Rive-Reine, in 2016. CHF 15 million was spent on internal and external training courses for employees in Switzerland. An employer that promotes young people Since 2014, within the framework of the initiative Nestlé Needs YOUth, Nestlé has employed 1354 young people under the age of 30 in Switzerland, trained 1152 apprentices and trainees and organised 360 events for more than 10 000 school pupils and students across Switzerland. With the Alliance4YOUth, Nestlé has been able to mobilise partner companies to help young people in Europe and Switzerland get a start in their professional life.

Research and development based in Switzerland Unrivalled R&D capabilities are at the heart of our efforts to enhance quality of life and contribute to a healthier future. Our science, research and technology expertise, coupled with our passion for consumer-focused innovation, helps us to anticipate and respond to ever-changing consumer and business needs. Driving global innovation A large proportion of our research is conducted in Switzerland, where Nestlé spends 55 % of its global research budget. 10 of our 40 R&D facilities worldwide are located in Switzerland. Core research is carried out in Lausanne, at the Nestlé Research Center (NRC) and at the Nestlé Institute of Health Sciences (NIHS). The NRC was Nestlé s very first research center. Inaugurated in 1987, it celebrates its 30th anniversary this year. Its role is to drive science and technology, from basic nutrition and health research, to applied research for product development and application. Today, the NRC employs about 600 people, including over 250 scientists from approximately 50 nationalities from nutritionists to biochemists, physicists, biologists, immunologists, pharmacists, computer specialists, mathematicians, sensory analysts, food scientists and technologists, packaging and design experts and many more. Building, sharing and applying knowledge Nestlé collaborates with the majority of universities and university hospitals in Switzerland and has close ties with the University of Lausanne (UNIL), the École polytechnique fédérale de Lausanne (EPFL) and the Swiss Federal Institute of Technology in Zurich (ETHZ). From hosting students at our research institutes to participating in joint research

projects, we collaborate widely. This helps us and our partners access different skills, build and transfer new technologies, and leverage insights that not only benefit our organisations, but also the society in which we live and work. The Nestlé Institute of Health Sciences, located on the EPFL campus in Lausanne, currently hosts nine PhD students (eight in collaboration with EPFL) while the Nestlé Research Center takes on around 40 masters students each year who contribute to its mission to be the trusted innovation partner for all Nestlé businesses.

At home in 10 cantons 2 10 5 6 1 3 5 4 7 2 1 9 11 3 4 6 1 5 3 4 1 2 2 3 7 Head office / administration 1 Vevey: Nestlé Global Headquarters 2 La Tour-de-Peilz: Nestlé Switzerland, Nestlé Nutrition, Nestlé Professional, Nestrade, Nestlé Capital Advisers and Nestlé International Travel Retail 3 Lausanne: Nestlé Purina Petcare Europe, Nestlé Nespresso and Nestlé Skin Health 4 Paudex: Nestlé Nespresso Switzerland 5 Epalinges: Nestlé Health Science 6 Bussigny-près-Lausanne: Nestlé Operational Services Worldwide 7 Henniez: Nestlé Waters Switzerland 8 Cham: Nestlé Share Register Research & Development 1 Lausanne Vers-chez-les-Blanc Nestlé Research Center and Clinical Development Unit; EPFL Nestlé Institute of Health Sciences 2 Broc: Chocolate Competence Center 3 Konolfingen: Product Technology Center Milk Products, Infant Nutriition and Healthcare Nutrition 4 Orbe: Product Technology Center Coffee and Beverages, Nestlé Professional Beverage Center and Nestlé System Technology Center 5 Egerkingen: Nestlé Skin Health Competence Center Locations of associated companies and joint ventures are not listed

4 8 8 Production Sites 1 Avenches: Coffee Nespresso 2 Basel, Culinary products Thomy, Le Parfait, Incarom 3 Broc: Chocolate Cailler, Nestlé, Nespresso chocolate 4 Konolfingen: Milk products Stalden; Infant nutrition BabyNes, NAN HA, Guigoz-Transit, Nestogen; Healthcare Nutrition Nutren, Peptamen 5 Orbe: Coffee Nescafé, Nespresso 6 Wangen bei Olten: Fresh dough Leisi, Buitoni 7 Saxon: Water Cristalp 8 Manno: Special oils Sofinol 9 Henniez: Water Henniez 10 Egerkingen: Skin Health Galderma 11 Romont: Coffee Nespresso Distribution Centers 1 Dagmersellen 2 Henniez 3 Schafisheim 4 Spreitenbach

For individuals and families We offer products and services that enable healthier and happier lives. In Switzerland, we do this as follows: Since the end of 2014, all our products for children have to fulfil the most stringent internal standards that are based on the recommendations of the World Health Organisation and medical associations. We want to further reduce the salt, sugar and saturated fat content in our food and drink products. For example, our fruit yoghurts (Hirz and LC1) now contain 10 % less granulated sugar, Thomy mustard à l Ancienne 10 % less salt and Pralinato ice cream by Frisco 20 % less saturated fat. We prioritise three criteria for the ingredients: naturalness, certification by recognised labels and locally produced. With regard to the nutritional information for our products, we strive to be as comprehensive and transparent as possible. We support at least 500 000 families with advice and services for a healthy and balanced diet. Moreover, Nestlé supports the following initiatives: Nestlé has a partnership with fit4future, the largest health campaign for children in Switzerland in the fight against obesity and lack of exercise. A Nestlé foundation runs the Alimentarium, an interactive museum with nutrition-themed cookery workshops for young and old alike. Swiss chefs work on a voluntary basis with the United for Healthier Kids initiative launched by Nestlé. The programme teaches them how to cook and instils in them the joy of healthy eating.

Nestlé Waters Switzerland supports the project WET (Water Education for Teachers), which teaches children about healthy drinking and respect for water as a resource. With the nest center in Vevey, Nestlé provides visitors with a thrilling and hands-on journey of discovery spanning the 150 years of Nestlé.

For our communities We help develop thriving and resilient communities and support better livelihoods for those we live and work with. In Switzerland, we do this as follows: From 2014 to 2016, we provided 1354 jobs for young people under the age of 30 as well as 1152 traineeships and apprenticeships. We support sustainable milk production. From summer 2017, our milk producers in Gruyère district are certified by IP-Suisse and thus promote biodiversity. This means that around 10 % of the fresh milk processed by Nestlé in Switzerland is IP-Suisse certified. The eggs for the Thomy mayonnaise sold in Switzerland are all sourced from free-range chickens. We support the sustainable cultivation of agricultural products: 100 % of the cocoa beans that are processed at Cailler in Broc are UTZ certified and 100 % of the coffee for the factory in Orbe is 4C certified. By the end of 2020, we will be able to guarantee 100 % responsible procurement for 12 of the most important raw materials of Nestlé Switzerland. In addition, Nestlé supports the following initiatives: Nestlé supports the project Independent Living of Pro Infirmis, which helps young people over the age of 18 with minor to moderate learning difficulties to live independently and cope with the demands of daily life. Nestlé provides aid to Swiss mountain communities via Schweizer Berghilfe, thereby helping to improve the living conditions and existence of people in Swiss mountain regions.

Nestlé is a partner of the Theodora Foundation, which helps alleviate the suffering of sick children in hospital with its Giggle Doctors. Nestlé donates excess products to the shops of Caritas Switzerland. Nestlé supports cultural events at a local and national level, including the Montreux Jazz Festival and the Lucerne Festival as well as the Vevey Winter Festival 2019. In its role as a partner, Nestlé supports various museums in and around Vevey, including the Musée Jenisch in Vevey and the Chaplin s World Museum, which is dedicated to the great comedian Charlie Chaplin.

For the planet We shape sustainable consumption and steward resources for future generations. In Switzerland, we do this as follows: We are aiming to halve the CO 2 emissions from our production sites by the end of 2020. We are aiming to cut the water consumption at our production sites to one-third by the end of 2020. Some specific initiatives: Next to the Henniez bottling facilities, in 2016 Nestlé opened the largest agricultural biogas plant in Switzerland. The plant, which is financed and managed by the energy provider Groupe E Greenwatt, uses 23 000 tonnes of farmyard manure from just 30 farms per year and processes 3800 tonnes of organic waste from the production of Nespresso and Nescafé coffee into biogas. Nestlé uses some of the heat generated in its plant, which replaces energy from fossil fuel sources at Nestlé and other companies and prevents the emission of 1750 tonnes of CO 2 into the atmosphere each year. With the ECO-Broye programme, Nestlé promotes biodiversity, protects natural resources in the Henniez region and brings together farmers, authorities and other central stakeholders in joint projects. The mineral water that is produced for the Cristalp brand in Saxon is manufactured entirely without fossil fuels. The spring water has a natural temperature of 25 C and is used in a heat pump system together with a pellet heating system as a source of fully renewable energy. Thanks to solar panels on the roof of the factory, which are

run by Seic-Teledis, Saxon actually generates surplus power. Since 2017, Nestlé has only used electricity from certified renewable sources in all its operations and locations in Switzerland. In the Nescafé factory in Orbe, it has been possible to reduce water consumption by 32 % thanks to a closed water circulation system. At the end of 2016, Nestlé was granted permission to build a biogas plant at its site in Konolfingen. The biogas is turned into heat and used in the factory as process heating. It replaces fossil natural gas and reduces CO 2 emissions by 400 tonnes per year, which corresponds to the average emissions of 180 cars.

The brand world of Nestlé CLIENT: PROJECT: DATA: NESTLÉ NESQUIK Logos 12/10/2015 N COLOUR FOR PRINTING: Milano - Via Dell Aprica 2/A - 20158 Italia Tel. +39 02 2909831 ra - Fax +39 02 29098338 E-mail info@futurebrand.com 3 C M K The enclosed colour print is the final reference for matching colour, only for 4 colour process. It must always be used along with the artwork cd, otherwise we shall not take any responsibility for the result obtained in the final proof. For the Pantone colour reference, please use the original Pantone Guide. The artworks contained in the CD are made in Illustrator CS6 and Photoshop CS6. All the pictures or images are in 4 colour process and, if it is neccessary use Pantone colour, the reprohouse must modify the images to obtain the correct final result by referencing the enclosed colour print. The artworks do not include allowance for over printing and bleed between colours that must be considered along with the finalised technical drawing. FutureBrand require a final colour print or cromalin to give the final approval. For any questions, please call: +39 02 2909831 and ask the production manager. M 100 J 100 05_KITKAT_Master_Identity_CMYK.pdf This is just a selection of some of our brands. Are you interested in the history of Nestlé? 1 02/12/2016 14:53 P348 C6 M9 J 38

Nestlé s commitment is recognised worldwide Ranking in leading environmental and sustainability indices in 2016: Fortune Nestlé was ranked fifth in Fortune magazine s 2016 Change the World list, an annual ranking of 50 companies that are doing well by doing good. FTSE4Good Index Nestlé was the first breast-milk substitute manufacturer to be included in the FTSE4Good Index and has retained this place for the five years since then. The index measures the performance of companies that meet globally recognised corporate responsibility standards, including clear criteria for the marketing of breast-milk substitutes. Greenpeace In 2016, Greenpeace carried out a fact check on 14 large companies that are committed to fighting the destruction of the rainforests by the palm oil industry: Cutting Deforestation out of the Palm Oil Supply Chain. Nestlé is one of only two companies with a good ranking. Dow Jones Sustainability Index With an overall score of 92 out of 100, Nestlé received industry-best scores in all three dimensions (economic, environmental and social) of the 2016 Dow Jones Sustainability Index (DJSI). The DJSI is a globally recognised independent benchmark that measures the performance of the largest 2500 companies. CDP Climate Disclosure Leadership Index In November 2016, Nestlé achieved a score of 100A in the Climate Disclosure Leadership Index from environmental sustainability ratings agency CDP. CDP Water Programme The CDP Water Programme promotes sustainable corporate water stewardship. In October 2016, Nestlé received a Leadership score of A. Oxfam Nestlé ranked second on Oxfam s Behind the Brands scorecard in April 2016. The NGO ranks the world s Big 10 consumer food and beverage companies on policies and commitments to improve food security and sustainability. Access to Nutrition Index Nestlé was ranked 2nd out of 22 global food and beverage manufacturers in the 2016 Access to Nutrition Index (ATNI), which benchmarks the world s largest manufacturers on their nutrition-related commitments, practices and performance. WWF In 2016, WWF Switzerland carried out an environmental rating of the 15 Swiss food producers with the highest turnover. Nestlé is classified among the Ambitious : companies that in certain areas seek pioneering solutions for the future with partners.