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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