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HALAAL A KEY COMPONENT OF NESTLESBUSINESS MODEL

Baboo DajeeCorporate Compliance Manager Southern African Region

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AGENDA

1. Introduction to Nestl

2. The Nestle HALAAL Assurance System

3. HALAAL an Excellent Growth Opportunity

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... captures the very essenceof Nestl and the promisewe commit ourselves toeveryday, everywhereas the leading Nutrition, Healthand Wellness Company

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Introduction: Nestl Group

Founded in 1866 by Henri Nestl

Employs over 339,000 peopleworldwide

468 factories in 86 countries

Sales of approx. USD 100 bn in2012

Worlds largest foodmanufacturer, headquartered inSwitzerland

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Nestl Group

Competitive Advantages

1. Products & brands

2. R&D capabilities

3. Global presence

4. People, culture and values

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Product and Brand Portfolio

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The industry's leadingR&D capability

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R&D Global Network 2010

MinneapolisSolon

St. Louis + NRCSt. JosephMarysville

VittelAmiensLisieux

BeauvaisTours

York

Singen

ShanghaiSingapore

SderotCasa BuitoniKonolfingenOrbeBev. Centre Orbe

NRC Lausanne

Beijing + NRC

Queretaro

Fremont Rzezsow

CPW - WelwynGarden City

1 Science & Research Centre27 PTC and R&D Centres

280 Application Groups

CPW Rutherglen

Abidjan

Broc CCENRC Tokyo

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Global Presence

ABCDEF

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People, Culture, Values, Attitude

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Our Focus - Consumers

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Our vision of Nutrition, Health and Wellness

Pleasure Balance

Understanding

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Pillars for Effective HALAAL Implementation

POLICY& STANDARDS

COMMITMENT& DISCIPLINE

CONTROLS &MONITORING

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Our Internal Controls to MonitorStrict Compliance of HALAAL

HALAAL Implementation & Monitoring of: raw materials/ingredients suppliers abattoirs equipment & utensils HACCP quality management sanitation & hygiene storage

transporters vending machines packaging materials business practices

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85 Halaal-certified factories worldwide majorityare in Asia-Oceania-Africa :

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85 Halaal-certified factories worldwide:19 factories are certified in Europe

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Nestl Worldwide an extensive range of Halaal products

Popularly sought for as Halaal

certified Food: Culinary products

Halaal certification extends

into Other Food and BeverageCategories

Increaseawareness

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HALAAL Makes Good Business Sense

Opportunities:

1. Wins consumer trust & confidence

2. Appreciated by non-Muslims for quality & safety

3. Export potential

4. Improves innovation in product development

5. Gives a competitive advantage over competitors whoare not Halaal certified (Halaal certification is voluntary,

not mandatory)6. Products aligned for Halaal Tourism

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Challenges to Promote HALAAL

Challenges:

1. Harmonization of global Halaal standards to ensure consistencyand build trust among the global Muslim population

2. Establish global accreditation of Halaal logo to enhancecredibility and recognition among consumers

3. Surveillance and enforcement to weed out products displayingunauthorized Halaal logos

4. Encourage SMEs in the food industry to be strictly Halaal

compliant to produce more and tap the global food market5. Improve positive communication on HALAAL practices for

better understanding of its benefits, particularly on qualityand safety.

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Source: AMPS 2010