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Insert image here Accelerating Growth by Building Foundations Ganesan R Ampalavanar Chief Executive Officer Nestlé Vietnam

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Page 1: Accelerating Growth by Building Insert image here …...Fish sauce Soya sauce Bouillon Oyster sauce Bouillon Oyster sauce Granule Bouillon Soya sauce Oyster sauce Soya sauce MAGGI:

Insert image here

AcceleratingGrowthby Building Foundations

Ganesan R AmpalavanarChief Executive OfficerNestlé Vietnam

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Population

91 Mio

24 MioHouseholds

GDP

2,162 USD/Capita

GDP

186 Billion USD

World’s 2nd

Largest coffee exporter

53% Population

< 29 years old

31 Mio> 90% penetration

68% living in rural areas

60% of VN GDP

Vietnam Today

79

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Our PortfolioKey Milestones

21%

43%

7%

29%

Others

About Nestlé Vietnam

Nestlé Vietnam Ltd1995

Dong Nai Factory1998

MILO RTD co-manufacturing2006

Binh An Factory2011

Tri An Factory2013

Tri An Decaf plant2015

Ground Breaking for Bong Sen Factory2016

Ground Breaking for New Distribution Center 2016

80

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Sales

2014 2015 Q1 2016

+21.4%+12.4% +15.4%

Our Growth in Vietnam

81

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Nestlé Investor Seminar 201682

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-

20'000

40'000

60'000

80'000

100'000

120'000

2011 2012 2013 2014 2015

MILO: The Vietnamese Consumer Insight Decoded

• A winning product adapted to local taste 60:40+

• The biggest brand in Nutritious Beverage

with 45% market share

• Long term commitment to Vietnam’s grass root

sports development in collaboration with Ministry

of Education

83

tons

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skewed to 3in1

consumed HOT(influenced by seasonality)

Tea Culture

LOWcoffee

consumption

LOWcoffee

consumption

NESCAFÉ: Understanding a Unique Coffee Culture

consumed COLDacross both

2in1 &3in1

84

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• 80% coffee consumption is iced. Local R&G is

the reference for authentic coffee

• Product developed with deep-rooted

Vietnamese consumer insight

• Delivering the traditional Vietnamese coffee

experience with the convenience of soluble 3in1

NESCAFÉ CAFÉ VIET: Adapting a Global Brand Locally

85

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v v

ON THE VIETNAMESE TABLE

Main dish/

Preparations

Category

Opportunity

IN THE VIETNAMESE KITCHEN

Soup (56%)

Stir Fry (30%)

Braised(25%)

Fry(29%)

Bouillon Fish sauce

Soya sauce

Dipping

Fish sauce Soya sauceBouillon

Oyster sauce

Bouillon

Oyster

sauce

Granule

Bouillon

Soya

sauce

Oyster

sauce

Soya

sauce

MAGGI: Appreciating the Vietnamese Epicurean

86

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• A dense distribution network of 113 distributors

• 22,000 outlets visited per day

• 1,000 person disciplined sales force working in

the Sales Factory

Growing Distribution by Going Deeper & Wider

87

100115

128143

2012 2013 2014 2015

Direct outlet coverage (in '000s)

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Urban32%

Rural68%

Urban Rural

Urban70%

Rural30%

Urban Rural

• Urban Vietnam defined by 89 cities

• More than 2/3 of Vietnam resides in the rural heartlands

• Go Rural provides Nestlé Vietnam with future pipeline of growth

The Geographical Expansion Opportunity

Vietnam’s Population Distribution Nestlé Vietnam’s Sales Contribution

88

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Nestlé Investor Seminar 201689

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• Vietnam’s biggest coffee buyer and biggest

4C coffee buyer

• Working closely with 20,000 farmers

• Help increase farmer income by 14% with

reduction in water & fertilizer usage

• Distributed 11 million high yielding plantlets

• Nestlé Vietnam co-chairs the

Public Private Partnership for Agriculture

Task Force with Minister of Agriculture

Creating Shared Value the Nestlé Vietnam Way

90

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1 CONSUMER INSIGHT EXCELLENCE Global inspiration, local insights

2BUILDING COMMERCIAL CAPACITY AND CAPABILITY

3RTM AND DISTRIBUTION EXPANSION Go Rural

4 WINNING AS A LOCAL MULTINATIONAL

91

4 Key Takeaways

ACCELERATING GROWTH THROUGH: