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  • Sales increased by 0.4% on a reported basis to CHF 21.0 billion (3M-2016: CHF 20.9 billion)
  • Organic growth was solid at 2.3%, with 1.3% of real internal growth (RIG) and pricing of 1.0%
  • Sales were reduced by foreign exchange (-0.4%) and net divestments (-1.5%)
  • Organic growth was 0.8% for developed markets and 4.3% for emerging markets
  • Full-year guidance for 2017 confirmed

Effective as from 1 January 2017, Nestlé Professional is reported as a regionally managed business included
in the zones. Effective same date, Venezuela is excluded from RIG, pricing and organic growth to better reflect the
underlying business performance.

Mark Schneider, Nestlé CEO: “Organic growth of 2.3% this quarter is within our full-year guidance range. The leap year comparison and other seasonal effects made the start of this year particularly challenging. We were encouraged by the growth in Asia and the resilience of consumer spending in Europe. Consumer demand in the Americas remained soft. Our pricing improved moderately. We confirm our 2017 guidance and have made good progress with our growth and efficiency projects to position our company for enhanced value creation.”

Zone Americas (AMS)

  • 0.4% organic growth: -1.4% RIG; 1.8% pricing
  • Sales in North America declined slightly on an organic basis due to negative RIG
  • Latin America achieved low single-digit organic growth driven by pricing, RIG was slightly negative

Reported sales in zone AMS increased by 2.6% to CHF 6.4 billion. Organic growth was subdued at 0.4% owing to a decline
in RIG of 1.4%. Pricing of 1.8% mainly came from Latin America, although North America also saw slightly positive pricing.
Net divestments reduced reported sales by 0.8% and foreign exchange was a 3.0% benefit.

North America faced an environment of soft consumer demand. In the US coffee creamers and frozen food maintained good
momentum but confectionery and petcare declined. Brazil had a difficult quarter with subdued Easter trading and fragile
economic conditions resulting in negative RIG and organic growth. Mexico’s growth remained positive but decelerated,
reflecting difficult comparables and weaker consumer confidence. Petcare saw good growth across Latin America.

Zone Europe, Middle-East and North Africa (EMENA)

  • 1.7% organic growth: 1.7% RIG; 0% pricing
  • Western Europe grew slightly on an organic basis with positive RIG but slightly negative pricing
  • Central and Eastern Europe achieved mid single-digit organic growth, with both positive RIG and pricing
  • The sub-region Middle East and North Africa saw mid single-digit organic growth

Reported sales in zone EMENA declined by 6.9% to CHF 4.0 billion. Organic growth was solid at 1.7%, based on resilient
RIG of 1.7% and flat pricing. Net divestments reduced reported sales by 5.9%, mainly due to the transfer of ice cream to
the Froneri joint venture. Foreign exchange headwinds reduced reported sales by a further 2.7%.

Pricing improved, mainly from increases taken in Nescafé throughout the zone. Pricing actions had a moderate impact on
RIG. Petcare saw strong growth across the zone, particularly in Russia. Turkey and North Africa performed well, while the
Middle East declined as political instability and deflation persisted.

Zone Asia, Oceania and sub-Saharan Africa (AOA)

  • 4.5% organic growth: 3.0% RIG; 1.5% pricing
  • South-East Asia saw good organic growth and was the largest contributor to the zone’s RIG
  • China had negative organic growth due to Yinlu and the earlier timing of Chinese New Year
  • India and sub-Saharan Africa posted strong growth
  • Oceania and Japan had solid organic growth with good RIG, partially offset by negative pricing

Reported sales in zone AOA increased by 1.0% to CHF 4.0 billion. Organic growth was strong at 4.5%, comprised of 3.0%
RIG and 1.5% pricing. Net divestments lowered reported sales by 0.5% and foreign exchange also had a negative impact,
reducing sales by 3.0%.

The zone’s growth accelerated for a fourth consecutive quarter, driven by robust performances in South-East Asia, India
and sub-Saharan Africa. The zone gained momentum despite a decline in China which was impacted by the earlier timing of
Chinese New Year, particularly in confectionery. Yinlu continued to weigh on growth, although the pace of decline has

Nestlé Waters

  • 3.1% organic growth: 2.6% RIG; 0.5% pricing
  • The US delivered low single-digit organic growth with negative pricing
  • Europe achieved solid RIG and organic growth with slightly negative pricing
  • The Middle East, Turkey and China slowed but South-East Asia and Latin America had good growth

Sales in Nestlé Waters increased on a reported basis by 1.1% to CHF 1.8 billion. Organic growth decelerated but remained
solid at 3.1%, with 2.6% RIG and 0.5% pricing. Net divestments and foreign exchange reduced reported sales by 0.2% and 1.8%

Nestlé Waters continued to grow in all regions although there was some deceleration, partly owing to challenging
comparables. The US and Europe had solid organic growth, although intense competition in both regions led to deflationary
pricing. Among emerging markets the Middle East, China and Turkey declined but South-East Asia saw good growth and Latin
America delivered double-digit organic growth.

Nestlé Nutrition

  • 1.1% organic growth: -0.4% RIG; 1.5% pricing
  • In China organic growth recovered as category momentum gradually improved
  • Price increases in the US, Brazil and Mexico weighed on RIG in these markets
  • Organic growth in South-East Asia was strong

Reported sales in Nestlé Nutrition increased by 0.2% to CHF 2.6 billion. Organic growth was 1.1%, comprised of -0.4% RIG
and 1.5% pricing. Net divestments and foreign exchange reduced reported sales by 0.4% and 0.5% respectively.

Price increases had a mild adverse effect on RIG in the short-term. Growth in China improved moderately, helped by
increased demand for first stage products and strong momentum of illuma in the super premium segment. Our NAN Optipro
roll-out continued to deliver good growth across Asia.

Other Businesses

  • 5.8% organic growth: 6.4% RIG; -0.6% pricing
  • Nespresso achieved mid single-digit organic growth, fuelled by double-digit growth in North America
  • Nestlé Health Science maintained mid single-digit organic growth driven entirely by RIG
  • Nestlé Skin Health saw double-digit organic growth with a strong RIG contribution

Reported sales in Other Businesses increased by 7.6% to CHF 2.3 billion. Organic growth improved to 5.8% as RIG of 6.4%
was partially offset by 0.6% of deflationary pricing. Net acquisitions increased reported sales by 1.6%, and a tailwind
from foreign exchange added a further 0.2%.

Nespresso’s growth was solid as it continued to gain traction in North America. Nestlé Health Science maintained mid
single-digit growth, reflecting good growth in Medical Nutrition. Nestlé Skin Health saw strong growth benefiting from low
prior year comparables and several new product launches.


We confirm our full-year guidance for 2017 and expect organic growth between 2% and 4%. In order to drive future
profitability, we plan to increase restructuring costs considerably in 2017. As a result, the trading operating profit
margin in constant currency is expected to be stable. Underlying earnings per share in constant currency and capital
efficiency are expected to increase.


Three-month sales overview by operating segment

Three-month sales overview by product


Media: Robin Tickle Tel.: +41 21 924 2200
Investors: Steffen Kindler Tel.: +41 21 924 3509


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