Press Release: Nestle: Nestlé reports full-year -4-

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, a widely accepted third-party tool, to work with our suppliers to

calculate their emissions. The specific, primary data it provides

enables us to group thousands of different supplier farms into clusters

based on similar characteristics, serving as the basis for defining

solutions and measuring their impact. And as more and more companies use

this tool, it enables consistency and comparability of data across the

industry.

Different farms, different solutions. In designing solutions, we look at

individual farms in their local context. We consider the geography and

soil of the farm, as well as whether cows can graze freely, are confined,

or a combination of both.

Together with the livestock farmers on the ground, we build

comprehensive, innovative tailored solutions that focus on several key

areas. We aim to reduce the methane produced by cows during digestion;

to use local, sustainably produced feed for livestock; to improve the

management of manure; to enhance grassland management; to optimize herd

structure and ensure animal health and welfare; and to expand the use of

renewable energy. We simulate different combinations of measures to see

which will have the greatest impact and make the most economic and

ecological sense.

Across the globe, efforts from our milk sourcing team to upgrade farms

have already led to a reduction of emissions. In China, for example, we

have helped thousands of smallholder farmers ramp up and modernize their

farms with training and technology through the Dairy Farming Institute,

established in Shuangcheng in 2014. This year, we will begin work on

nine new net zero pilot farms in all regions of the world to learn and

roll out best practices across dairy farms. In the U.S., for instance,

we are supporting the Net Zero Initiative to develop four net zero farms

across the U.S. to showcase the future of farming. In South Africa, we

will complement efforts to reduce farm emissions with measures to

improve soil health to make a first pilot farm net zero by the end of

2023.

Outlook

2021 outlook: continued increase in organic sales growth towards a mid

single-digit rate. Underlying trading operating profit margin with

continued moderate improvement. Underlying earnings per share in

constant currency and capital efficiency expected to increase.

Mid-term outlook: sustained mid single-digit organic sales growth.

Continued moderate underlying trading operating profit margin

improvement. Continued prudent capital allocation and capital efficiency

improvement.

Annex

Full-year sales and underlying trading operating profit (UTOP) overview

by operating segment

Other

Total Group Zone AMS Zone EMENA Zone AOA Businesses

Sales FY-2020

(CHF m) 84 343 34 010 20 226 20 730 9 377

Sales FY-2019

(CHF m)* 92 568 37 828 21 464 22 119 11 157

Real internal

growth (RIG) 3.2% 4.1% 3.3% 0.0% 7.3%

Pricing 0.4% 0.7% - 0.4% 0.5% 0.6%

Organic growth 3.6% 4.8% 2.9% 0.5% 7.9%

Net M&A - 4.6% - 5.0% - 2.1% - 0.1% - 17.6%

Foreign exchange - 7.9% - 9.9% - 6.6% - 6.7% - 6.3%

Reported sales

growth - 8.9% - 10.1% - 5.8% - 6.3% - 16.0%

FY-2020

Underlying TOP

(CHF m) 14 903 6 975 3 766 4 599 1 841

FY-2019

Underlying TOP

(CHF m)* 16 260 7 608 3 878 4 977 2 089

FY-2020

Underlying TOP

Margin 17.7% 20.5% 18.6% 22.2% 19.6%

FY-2019

Underlying TOP

Margin* 17.6% 20.1% 18.1% 22.5% 18.7%

Full-year sales and underlying trading operating profit (UTOP) overview

by product

Milk Prepared

Powdered products Nutrition dishes &

Total & liquid & ice & Health cooking

Group beverages Water cream Science aids Confec-tionery PetCare

Sales

FY-2020

(CHF m) 84 343 22 256 6 421 11 007 12 160 11 523 6 975 14 001

Sales

FY-2019

(CHF m) 92 568 23 221 7 391 13 268 14 990 12 188 7 888 13 622

Real

internal

growth

(RIG) 3.2% 2.8% - 5.5% 5.6% 1.2% 4.7% - 1.1% 9.7%

Pricing 0.4% 0.4% - 1.5% 2.3% 0.5% 0.0% - 0.4% 0.5%

Organic

growth 3.6% 3.2% - 7.0% 7.9% 1.7% 4.7% - 1.5% 10.2%

FY-2020

Underlying

TOP (CHF

m) 14 903 5 008 639 2 652 2 640 2 171 990 3 081

FY-2019

Underlying

TOP (CHF

m)* 16 260 5 197 914 2 706 3 314 2 170 1 332 2 919

FY-2020

Underlying

TOP

Margin 17.7% 22.5% 10.0% 24.1% 21.7% 18.8% 14.2% 22.0%

FY-2019

Underlying

TOP

Margin* 17.6% 22.4% 12.4% 20.4% 22.1% 17.8% 16.9% 21.4%

* 2019 figures restated following the decision to integrate the

Nestlé Waters business into the Group's three geographical Zones,

effective January 1, 2020.

Contacts:

Media:

Christoph Meier Tel.: +41 21 924 2200

mediarelations@nestle.com

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Investors:

Luca Borlini Tel.: +41 21 924 3820

ir@nestle.com

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February 18, 2021 01:15 ET (06:15 GMT)