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Nestl Annual Repor t 2011

The Nestl Roadmap toGood Food, Good Lie

Four competitive advantages

Nestls product and brand portolio

ranges rom global icons to local

avourites. It is supported by an

unmatched research and development

capability, with clear priorities, ocused

on driving innovation and renovation

that is relevant and attractive or

consumers. Our Company has an

unmatched geographic presence,

due to the number o countries where

we are present, but also due to the

depth o our roots in those countries.

We have operated in most o our

locations or generations. This has

created strong relationships between

our brands and their consumers as

well as an unrivalled understanding

o consumers. This enables us to

anticipate their needs and improve

the quality o their lives. Our people,

culture, values and attitude are our

greatest strength. The Nestl culture

binds our people together all over the

world with a shared set o behaviours

and values into a single way o doingbusiness. Our culture combines a

long-term mindset with short-term

action. It encompasses a passion or

quality in products, in relationships,

in everything we do. It is ocused on

competitiveness, calculated risk-taking

and an unswerving determination to

deliver our goals, while creating value

or society as a whole.

Four growth drivers

A Nutrition, Health and Wellnes

mindset means oering tastier a

healthier choices in all our categ

consumers throughout the day.

are also addressing specic nut

needs through Nestl Nutrition

pioneering ways to use nutrition

address critical illness through N

Health Science. The trust that

consumers place in Nestl is ref

in the hundreds o millions o pu

decisions that they make every

day when they choose Nestl

products. Many consumers with

lower incomes are consuming o

Popularly Positioned Products (P

mainly in emerging markets. We

the same nutritional know-how

to these consumers, the same b

promise and quality, and we stri

to add the extra plus such as

ortication targeted to specic

nutritional deciencies. With pre

products, consumers look to us

them an aordable, indulgent mo pleasure, an everyday reward

premiumisation strategy, incorp

systems and services, as well as

premium products, is enhancing

consumers lives, whilst creating

additional value per consumptio

moment: many consumers are n

looking to eat and drink more; th

looking to eat and drink better. T

ourth o our growth drivers is o

home consumption, a ast grow

o our industry. This covers leisurom roadside kiosks in Asia to

gourmet restaurants in the capit

the world, and institutional cate

rom schools to hospitals. Our o

on added-value branded ood an

beverage solutions and services

In recent years the Nestl4x4x4 Roadmap has helpedus build both a very strongalignment within ourCompany and a deepunderstanding o what wewant to achieve and howwe want to go about it.Our people are now betterable than ever to achieve

our ambition to be therecognised and trustedleader in Nutrition, Healthand Wellness, as wellas to deliver our nancialobjectives.We enhance lives by oeringtastier and healthier oodand beverage choices or allstages o lie and at any time

o the day. True to ourvalues and principles, we alsoenhance lives by CreatingShared Value throughsustainable growth, andour commitment toenvironmental sustainabilityand compliance along everystep o the value chain.Our commitment is

to provide Good Food,Good Lie.

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12 Nestl Annual Report 2012

Comp

lia

nce

-Sustaina

bility Creating

SharedV

alue

Nestl

culture,valuesandpr

incip

les

Our objective is to be the

recognised and trusted leaderin Nutrition, Health and Wellness,

and the industry reerenceor nancial perormance

Unmatched

product

and brand

portfolio

Nutrition,

Health and

Wellness

Innovation

and renovation

Unmatched

geographic

presence

Out-of-home

consumption

Whenever,

wherever,

however

Unmatched

research anddevelopment

capability

Emerging

markets and

Popularly

Positioned

Products

Operational

efciency

People,

culture, values

and attitude

PremiumisationConsumer

communication

Four operational pillars

We want to be the leader in innovation

and renovation, whether o products,

systems or processes. Some products

will be entirely new, some will have a

new, rereshing aspect. Regardless,

we take an invigorating point o view to

keep our consumers excited about ourbrands. But it is not enough just to be

the most innovative company. We also

need to have the most ecient supply

chain rom arm to ork to ensure

that we have the best raw materials,

Competitive advantages

Operational pillars Growth drive

the best processes and the reshest

products on our customers shelves.

Nestl Continuous Excellence is our

approach to operational eciency,

with its objectives o eliminating

waste, increasing eciency and

eectiveness, and improving quality

in all operations. It is not enough,however, just to make the most

innovative products in the most

ecient way; we also need to ensure

that our products are available

sustainably whenever, wherever

and however consumers want to buy

them. And, o course, we need to

communicate with our consumers in

a dynamic way both to keep them

abreast o all that is new and exciting,

but also to learn rom them, so that

we can bring their experiences to

bear on our upcoming innovationand renovation.

You will nd some o these aspects

brought to lie on the ollowing pages