Name of chairman

Nestlé S.A.

Roddy Child-VilliersHead ofInvestor Relations

2 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

Disclaimer

This presentation 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.

3 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation3

Agenda

Update – the year to date

The road map to out-performance

The Nestlé Model

4 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation4

Key figures – 9 months 2008

Record first-half EBIT margin

8.9% organic growth for 9 months

USD 10.4 billion partial disposal of Alcon

"Gold standard" credit quality

Accelerated share buy-back

5 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

Four competitive advantages

Four growth areas

Four Pillar strategy

The Roadmap to Outperformance

6 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation6

Nestlé's Four Competitive Advantages

Product & brand portfolio

Industry-leadingresearch and development

Comprehensivegeographic presence

People, culture and values

7 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

People, mn

Sources: UN WIDER and World Bank (also for outlook on economic growth 2005-2015);

+ 355

+ 885+ 133

+ 230

+ 448

+ 199

1970 1653 1429

2153 26012354

710940 1825

389522

443175

235286

295

494

849

0

1'000

2'000

3'000

4'000

5'000

6'000

7'000

1995 2005 2015

> $28'000

$22'000-28'000

$13'000-22'000

$5'000-13'000

$1500-5000

< $1500

Moving up on the escalator: World population by income bracket – 1995-2005-2015

The Ideal Brands & Geographic Presence to Benefit from Growth in Incomes

8 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008Sources: UNIDO (value-added), WIDER and World Bank; Nestlé

US$ 1,500

Sustenance Pleasure anddiversity

Convenience

5,000 13,000 22,000

Per-capita income

28,000

"Premiumisation"Growth scenario (2005-15)

+ US$ 170bn5.9% p.a.

Growth scenario (2005-15)

+ US$ 70bn6.9% p.a.

PPP

Consumption of food manufacturing value-added

actual US$, per capita

Nutrition WellBeing

Nestlé per capita sales

PPP = Popularly PositionedProducts

Demographics: A $240 billion opportunity

The Ideal Brands & Geographic Presence to Benefit from Changing Demographics

9 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation9

Nestlé R&D Network

MarysvilleSolon

St. Louis

VittelAmiensLisieux

BeauvaisTours

YorkSingen

ShanghaiSingapore

SderotCasa BuitoniKonolfingenOrbeBev. Center Orbe

NRC Lausanne

Beijing

Queretaro

Minneapolis Fremont RzezsowOsthofen

10 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation10

Nestlé's Four Growth Drivers

Nutrition, Health & Wellness

Out-of-home

Premium and luxury

Emerging consumersPPP

11 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

Nutrition, Health & Wellness

60/40+

12 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 200812

PPPs – Vast and Diverse Markets

13 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation13

Maggi PPP in France

14 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation14

Nestlé Professional – Out-of-Home

15 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation15

Premiumisation

16 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation16

Nestlé's Four Pillars

Operational efficiency

Innovation & Renovation

Whenever, Wherever, However

Consumer communication

51.8%

41.9%

17 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

Consumer Communication

18 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation18

Operating EfficiencyNestlé Continuous Excellence

Leadership DevelopmentCoaching and Empowerment

Nestlé Integrated Management SystemQuality, Safety, Environment, Standards

Goal AlignmentOperational Masterplanning, Performance Measures, Operations Review, Problem Solving

Measure, Monitor, Organize

Customer Distribution Packaging Raw Material

LEAN Supply Chain

Manufacturing

TotalPerformanceManagement

TPM

Consumer

Audits, Self Assessment Tools

19 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008October 23, 2008 Press conference, CEO Presentation19

The Nestlé Model

Year after year:§ Organic growth 5 - 6%

§ Increased EBIT margin

§ Improved capital efficiency EBIT

Sales

Resulting in an industry outperforming, long-term total shareholder return

20 Name of chairmanMorgan Stanley Conference, November 18 - 20, 2008

Drive key growth opportunities• Nutrition, Health & Wellness, PPP,

Premium, Out-of-home

Build on the Competitive advantages• Brands, Global presence, People, R&D

Accelerate operational efficiency• Continuous Excellence, Leverage GLOBE, GNBS

"The Result" – enhanced financial performance• "The Nestlé Model" with greater capital efficiency

Building on Momentum to Drive Performance

Name of chairman

To make Nestlé the reference for Nutrition, Health & Wellness

Vision

and for Financial Performance21

Name of chairman

Nestlé S.A.