Letter to our shareholders

Nutrition, Health and Wellness is our past, present and future, and within that frame we continue to set new priorities. Our innovation capabilities enable us to consistently meet the rising expectations of a growing population. Portfolio optimization over the past years allows us to focus our efforts on our proven brands. Our operational excellence enables us to dependably deliver sustainable, profitable growth. And we continue to do business in a way that creates shared value for both our shareholders and society.

Encouraging balanced diets

Foods and beverages are major drivers of long-term health, and consumers increasingly recognize this. We will continue to develop nutritious products that support people's well-being, and we believe that such products will see increased demand in the years to come.

In fact, in 2023, we reconfirmed our ambition to prioritize the development of our more nutritious products. This entails launching new products and renovating existing ones. It involves expanding micronutrient fortification, growing our affordable offerings, reducing sugar and salt content, and increasing our use of plant-based ingredients in our recipes.

Additionally, we are actively guiding people towards a more balanced diet by making the nutritional value of our portfolio more transparent. We are strengthening our responsible marketing of indulgent products, providing clear front-of-pack portion guidance, and engaging with and informing consumers through our various online communities around the world.

Supporting healthy aging

Nestlé's food and beverage portfolio caters to people at each stage of their life. It starts with the first 1000 days and continues into adulthood and old age. With a rapidly aging global population, we see an opportunity to provide products that can support the nutrition, health and wellness of older people. We can help boost their energy levels, enhance their cognitive health, support their mobility, and improve their general physical and mental health.

We already offer several Nestlé Health Science and dairy products that are specifically targeted to seniors. Take, for example, successful brands like Boost, Pure Encapsulations or Molico. With our capabilities, we believe that we can leverage this trend across all of our categories to further grow.

Investing in innovation

We are investing in our future through innovation and entrepreneurship. Through our main research center in Switzerland and 23 sites globally, and with an industry-leading R&D budget, we develop products tailored to the diverse needs of people and pets while reducing our environmental footprint. Experts at our newly inaugurated Institute of Agricultural Sciences, for example, develop solutions in the areas of plant science, agricultural systems and dairy livestock. This is in addition to our four other research institutes looking at health sciences, food sciences, food safety and packaging.

Digital technologies, including artificial intelligence (AI), are supporting sharper decision-making and increased speed across the entire company. From procurement to e-commerce, digital analytics facilitate efficiency and effectiveness. Data science and AI increasingly support us with innovation by revealing and predicting consumer demands, while also helping us bring new products to market faster.

Creating Shared Value

Creating Shared Value is how we do business at Nestlé, generating value not only for our shareholders but also for society. Nestlé's long-term success is supported by this approach.

An example of this is Nestlé's efforts to advance regenerative food production by helping protect, renew and restore natural resources. To that end, we are supporting farmers and strengthening their communities. We are delivering on our commitments in a way that appeals to consumers' increased expectations.

Remaining dedicated and dependable

Every year, our people show us how much can be achieved when we steadfastly pursue opportunities. We know that we do not have all the answers, but with our global mindset combined with our expert knowledge of local consumers and markets, we are confident we can deliver on our ambition and our commitments.

People all over the world rely on Nestlé for good food and beverages. Our proven value creation model allows us to invest, innovate and grow even in challenging times, and makes us dependable for our shareholders and other stakeholders. We are grateful for the support of our employees, business partners, consumers and communities. And we thank you, our shareholders, for your continued trust.