Marcelo Melchior. Head of Confectionery SBU. June Nestlé Investor Seminar

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1 Marcelo Melchior Head of Confectionery SBU Nestlé Investor Seminar June 2010

2 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. 2 2 June 2010

3 Nestlé position in the face of consolidation 3 rd parties acquisition rationale A growth category Leverage distribution Leverage scale Address portfolio mix Emerging markets 3 3 June 2010

4 Confectionery competitive landscape Confectionery global market share 16.0% Nestlé ConfectioneryGrowth v Category CAGR % 13.4% % % % 6.0% 5.0% 6.1% 8.1% % 2.0% 0.0% 2.8% 1.4% 0.0 Kraft / Cadbury Mars Nestlé Hershey Ferrero Perfetti Lindt World Established Emerging Confectionery Nestlé Source: Euromonitor Source: Euromonitor and internal records Nestlé is growing faster than the category 4 4 June 2010

5 Confectionery Chocolate faster growing than Sugar & Gum in emerging markets 120'000 Confectionery Category RSV 2009 CHF 100'000 80'000 60'000 40'000 20'000 Chocolate The biggest category overall and in the emerging markets 0 World Established Emerging Chocolate Sugar Gum 12.0% 10.0% CAGR % The fastest growing category in the emerging markets 8.0% 6.0% 4.0% 2.0% 5.3% 3.9% 5.8% 2.7% 2.1% 5.1% 5.8% 6.5% Nestlé well-positioned as the leader in chocolate in emerging markets 5 0.0% World Established Emerging Chocolate Sugar Gum Source: Euromonitor: RSV is Retail Sales Value 5 June 2010

6 Key trends in chocolate 6 6 June 2010

7 Creating Shared Value in Chocolate A holistic approach Nutrition, Health & Wellness What s in my food? Consumer preference Sustainable Sourcing Where does it come from? How was it made? Environmental Sustainability 7 7 June 2010

8 Chocolate competitive landscape 18.0 Chocolate global market share Nestlé Chocolate Growth v Category CAGR % 12.0% 10.0% 10.8% 13.1% % % 5.3% 6.0% % 2.0% 2.7% 1.8% % 0.0 Kraft / Cadbury Mars Nestlé Ferrero Hershey Lindt World Established Emerging Chocolate Nestlé Source: Euromonitor Source: Euromonitor and internal records Nestlé Chocolate growing faster than the category Chocolate is 80% of Nestlé Confectionery and has 44% of sales in Emerging Markets 8 8 June 2010

9 Nestlé: the leader in Chocolate in emerging markets 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% Chocolate market share in Emerging Markets 17.9% 15.5% 8.6% Emerging markets are 44% of our business High growth (13.1% CAGR versus category 10.8% in EMs) with above average profit margins No 1 or 2 positions in 24 emerging markets 4.0% 2.0% 0.0% Source: Euromonitor Nestlé Kraft / Cadbury Mars Lighter eating focus with wafer and extruded snacks plays to Nestlé strength Portfolio focus on affordability with CHF 700 million sales in PPP format Strong local brands Strong distribution Nestlé well positioned in emerging markets to benefit from economic growth 9 9 June 2010

10 Growing affluence & retail development will drive consumption in emerging markets At or approaching 1 kg per head At approx. 0.1 kg per head Nestlé well positioned in emerging markets to benefit from economic growth Chocolate consumption grows with purchasing power Affordable treat for emerging consumers June 2010

Light eating in India and China: MUNCH and Nestlé Shark Wafer Munch Sales growth Shark Sales growth 2001 2002 2003 2004 2005 2006 2007 2008 2009 Sales value CAGR 2001-09 18.

11 Light eating in India and China: MUNCH and Nestlé Shark Wafer Munch Sales growth Shark Sales growth Sales value CAGR % value increased 4x Munch Volume growth Sales value CAGR % value increased 4.7x SHARK Volume Volume CAGR % Volume increased 3x Volume CAGR % Volume increased 4.5x 11 June 2010

12 Strengthening position in established markets Profitability improved by 210bps in last 3 years June 2010

Strong consumer promotion programme Light eating unique positioning PPP formats launched

13 KIT KAT innovation driving growth of CHF1.4 billion brand BACK TO BASICS APPROACH AND LAUNCH OF SENSES Re-focused on core of the brand Strong consumer promotion programme Light eating unique positioning PPP formats launched 2009 CAGR : Volume +4% pa CAGR : Value +7.4% pa Growing market share year on year 13 Global No 2 Confectionery countline 13 June 2010

14 Significant improvement in profitability Nestlé Confectionery EBIT% 21.0% EBIT% Comparision 13.1% 13.6% 19.0% 11.2% 11.3% 11.5% 11.6% 17.0% 15.0% 13.0% 11.0% 9.0% 7.0% Kraft Cadburys Hershey's Lindt Nestlé Confectionery Driven by strong margin improvement in established markets ( bps) Our performance is favourably comparable to our competitors (Chart not adjusted for differences in accounting) June 2010

15 Nestlé strengths in the face of consolidation 3 rd parties acquisition rationale A growth category Leverage distribution Leverage scale Address portfolio mix Emerging markets June 2010

16 Nestlé strengths in the face of consolidation 3 rd parties acquisition rationale Nestlé s Position Today A growth category Nestlé is achieving above category growth Leverage distribution Nestlé already has global reach Leverage scale Address portfolio mix Emerging markets 16 Leveraging Nestlé in the Market (scale of total Nestlé F&B) Nestlé s balanced portfolio, countlines, tablets, gifting Nestlé has most global coverage & leadership in Emerging Markets 16 June 2010

17 Conclusion: Nestlé Confectionery Scale Sales of CHF 12 billion Access to emerging markets Established markets Growth 44% sales, above average EBIT Solid business with improving performance Faster than category especially in emerging markets 17 Well-positioned to drive market shares and continue to improve performance 17 June 2010

18 Marcelo Melchior Head of Confectionery SBU Nestlé Investor Seminar June 2010

Results. Telefônica Brasil S.A

Results. Telefônica Brasil S.A Results 4Q11 and 2011 02.16.2012 Disclaimer For comparative purposes, the 4Q10, YTD 2011 and 2010 figures were prepared on a combined basis. Thus, the quarterly and annual variations presented may differ