Nestle S A : TRANSCRIPT 347KB

154th Annual

General Meeting

of Nestlé S.A.

Vevey,

15 April 2021

Speeches

Paul Bulcke

Chairman of the Board

U. Mark Schneider

Chief Executive Officer

Disclaimer

This speech might not reflect absolutely all exact words spoken.

This speech 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.

Address by Mr. Paul Bulcke

Chairman of the Board

Translation of the original French text. Check against delivery.

Ladies and Gentlemen, dear Shareholders,

2020 was a year that many of us will not forget. When I addressed you in April last year, I was looking forward to welcoming you in person again in 2021. Unfortunately, that it still not possible. That is why, once more, we are holding our Annual General Meeting virtually.

The COVID-19 pandemic is an unprecedented crisis. A global and transformative crisis that is not yet behind us.

I am profoundly impressed by the way Nestlé employees responded, immediately and selflessly... and continue to do so today. I called it the S.A.S. response:

• Firstly, S for safety. Keeping people safe. The health and wellbeing of our staff, of their families and of our partners around the world is our top priority.
• Secondly, A for action. Assuring the continued supply of essential food and beverages. That is why we exist; that is what we do best. It is therefore what we must do.
• Thirdly, S for solidarity. Showing, in these difficult times, true empathy with the communities where we work. Nestlé has helped out wherever it was able to, however it could. In various forms, it has offered its support in terms of finances and resources all over the world.

This response would not have been possible without the hard work and commitment of our 300 000 employees. I would like to thank them for everything they have done, both on my personal behalf and on behalf of the Board of Directors. They are the ones that give Nestlé its strength - their professionalism, their motivation, their dedication and their actions. I would like to extend a special thanks to our front-line employees, those who work in our factories, in our sales teams, along our supply chains. They are the ones that ensure business continuity on the ground. Last but not least, I would like to thank our management team for their ability to adapt and for their unrelenting

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efforts over this past year, so full of unexpected challenges. During my more than forty years at Nestlé, the year 2020 has certainly not been the easiest; but it is the one that has given me the greatest satisfaction, in view of how Nestlé has responded. I am proud of us and of our company.

Dear Shareholders,

Thanks to the hard work and commitment of so many people, I can confirm to you today that in 2020 Nestlé once again recorded an increase in its organic growth, its profitability and its return on investment. Over the course of this unprecedented year, Nestlé has remained as resilient and dependable as ever.

Today, our Board of Directors is pleased to be able to propose to you a dividend of 2.75 Swiss francs per share. If it is approved, this rise of 5 cents will be the Company's twenty-sixth consecutive annual dividend increase. Nestlé remains committed to its long-held practice of increasing the dividend in Swiss francs every year.

In addition, the Group repurchased CHF 6.8 billion of Nestlé shares as part of the three-year CHF 20 billion share buyback program that began in January 2020.

I therefore reiterate to you: in these times of great uncertainty, Nestlé continues to stand for resilience, dependability and consistency over time.

Ladies and Gentlemen,

Today I am delighted to propose the election of Professor Lindiwe Majele Sibanda, Director and Chairwoman of the African Research Universities Alliance Centre of Excellence in Sustainable Food Systems at the University of Pretoria in South Africa. Thanks to her hands-on farming experience coupled with her expertise in the field of environmental sustainability, public policy and sustainable food systems, she will provide invaluable perspective and guidance. Her extensive knowledge and experience across the African continent as well as across the globe will enrich the Board's worldwide insights.

I would like to extend my sincere thanks to Ursula Burns, who has served on the Nestlé Board of Directors since 2017. She has decided not to stand for reelection this year. Ursula has been a great asset to the Board of Directors,

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contributing her strong business acumen, expert advice and valuable perspectives. Thank you, Ursula.

With these changes, the Nestlé Board of Directors will now comprise 14 members, including 12 independent directors. In order to position the Company on the best possible course for the future, the Board of Directors can draw upon a vast wealth of relevant expertise and insights, thanks to its broad diversity in terms of geography, culture, gender, experience and expertise.

Ladies and Gentlemen,

Nestlé is the "Good food, Good life" company. We strongly believe in the power of food to enhance life.

With that in mind, we strive to make a difference so that food improves the lives of people and pets, protects and enhances the environment and generates significant value for our shareholders and other stakeholders alike.

In everything we want to accomplish we are guided by our strategic focus - "Nutrition, Health and Wellness". We bring affordable, safe and high-quality nutrition to everyone, regardless of income level, taking advantage of our longstanding presence around the world. We provide products that are healthy, delicious, convenient and aligned to consumers' modern lifestyles and their continually evolving needs and preferences. We are pioneers in the fields of nutritional science and culinary excellence. We offer a broad selection of plant- based foods and beverages. We strive to package and deliver our products in ways that are safe and protect the environment.

To achieve this, we maintain an unrelenting focus on innovation and investment as crucial drivers of sustainable performance. This means investing in our brands, investing in key growth platforms, investing in research and development. This means developing ecosystems and digital capabilities in all of our activities.

It also involves playing our part to find solutions to the social and environmental problems we are currently facing... Not only is this the right thing to do. We do this out of conviction because this approach is a strategic imperative for any company that wants to safeguard its future.

It is with this framing that Nestlé has developed its roadmap to achieve net zero greenhouse gas emissions by 2050. Published in December, as promised, and

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validated by the Science-Based Targets initiative, we were among the first to to share such a detailed, time-bound plan that will see the company halve its greenhouse gas emissions by 2030.

Nestlé is committed to being fully transparent about its plans, actions and progress. We believe that our shareholders should be a part of our journey and have a say on environmental, social and governance issues - ESG for short. Within this context, we welcome upcoming changes in Swiss legislation in this area. And in this spirit, the Board of Directors is seeking support from shareholders on its Climate Roadmap in an advisory vote today.

As already announced, Nestlé has also decided to split the Nomination and Sustainability Committee into two distinct entities: a separate Nomination Committee, and a focused Sustainability Committee. Going forward, all aspects of Nestlé's environmental, social and governance (ESG) agenda will be regularly reviewed ... including overseeing the Group's efforts on climate change, human rights and people management, specifically diversity and inclusion.

Ladies and Gentlemen, dear Shareholders,

In 2020, we updated and rearticulated our purpose and beliefs - the "why" we exist:

And I quote: at Nestlé, "We unlock the power of food to enhance quality of life for everyone, today and for generations to come".

This purpose describes the fundamental motivation that underlies each decision taken by our Company. It is the premise upon which Nestlé was founded more than 150 years ago.

It is intimately connected to the way in which Nestlé conducts its operations throughout the world: namely, Creating Shared Value.

Creating Shared Value is our operational approach, the "how" we do business. It comes from a deep conviction. To be successful over time, a company must create value - both for itself and for society at large.

COVID-19 has reminded us of the importance of societal wellbeing in the broader sense - heath, employment, equality, long-term prosperity. Nestlé recognized this long before and pursues ambitious goals and commitments

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