1. HALAL – A KEY COMPONENT OF NESTLE’S BUSINESS MODEL 5th INTERNATIONAL HALAL MARKET CONFERENCE: BRUNEI DARUSSALAM 5 June, 2010 Peter R. Vogt Region Head for Nestlé Malaysia / Singapore / Brunei

2. AGENDA 1. Introduction to Nestlé 2. The Nestle HALAL Assurance System 3. HALAL – an Excellent Growth Opportunity

3. ... captures the very essence of Nestlé and the promise we commit ourselves to everyday, everywhere as the leading Nutrition, Health and Wellness Company

6. 1. Product and Brand Portfolio

7. 2. The industry's leading R&D capability

8. R&D Global Network – 2009 Minneapolis Solon St. Louis + NRC St. Joseph Marysville Vittel Amiens Lisieux Beauvais Tours York Singen Shanghai Singapore Sderot Casa Buitoni Konolfingen Orbe Bev. Centre Orbe NRC Lausanne Beijing + NRC Queretaro Fremont Rzezsow CPW - Welwyn Garden City 1 Science & Research Centre 27 PTC and R&D Centres 280 Application Groups CPW – Rutherglen Abidjan Broc CCE NRC Tokyo

9. 3. Global Presence 

10. 4. People, Culture, Values, Attitude

12. OUR MISSION

13. Our Business Strategy Creating Shared Value Creating Shared Value Nutrition | Water | Rural Development Compliance Sustainability

14. Our Focus - Consumers

15. Our vision of Nutrition, Health and Wellness Pleasure Balance Understanding

17. Pillars for Effective HALAL Implementation POLICY & STANDARDS COMMITMENT & DISCIPLINE CONTROLS & MONITORING

18. Nestlé Malaysia HALAL Policy As a responsible corporate citizen of Malaysia, we are mindful of our obligations to the country and its consumers. Nestlé Malaysia manufactures, imports and distributes only products which have been Certified “HALAL” by authorized certification bodies.

22. The key messages: Halal Integrity: No compromise Halal is hygiene & food safety A great demand Good for everyone Social responsibility Nestlé Internal Controls Monitor Strict Compliance of HALAL

23. Nestlé Business in the main Islamic countries Number of factories 50 Companies/representative offices 62 Turnover 2008 in billion USD 5.2 Number of people 31,305 Gross fixed assets in billion USD 1.7

24. 85 Halal-certified factories worldwide majority are in Asia-Oceania-Africa :

25. 85 Halal-certified factories worldwide: 19 factories are certified in Europe

26. Strong Market Position in Asia, Oceania, Africa & the Middle East

27. Nestlé Worldwide … an extensive range of Halal products Popularly sought for as “Halal certified Food”: Culinary products Halal certification extends into Other Food and Beverage Categories Increase awareness

29. The European HALAL food industry is worth USD 66.5 billion The biggest markets are France, Germany and the UK Halal range is sold through: Specialised wholesalers Small ethnic shops Modern trade - Carrefour, Tesco & Auchan Nestlé business is CHF 55 million Growing at 12 % per annum Reaching 10,000 shops with 150 products

30. HALAL Makes Good Business Sense Opportunities: 1. Wins consumer trust & confidence 2. Appreciated by non-Muslims for quality & safety 3. Export potential as Nestlé Malaysia continues to expand its export business to over 50 countries worldwide with export sales of RM689 million in 2009 4. Improves innovation in product development 5. Gives a competitive advantage over competitors who are not Halal certified (Halal certification is voluntary, not mandatory)

31. Challenges to Promote HALAL Challenges: 1. Harmonization of global Halal standards to ensure consistency and build trust among the global Muslim population 2. Establish global accreditation of Halal logo to enhance credibility and recognition among consumers 3. Surveillance and enforcement to weed out products displaying unauthorized Halal logos 4. Encourage SMEs in the food industry to be strictly Halal compliant to produce more and tap the global food market 5. Improve positive communication on HALAL practices for better understanding of its benefits, particularly on quality and safety.

32. THE END Contact Nestlé Malaysia at: www.nestle.com.my TERIMA KASIH