Nestlé Press Releases

Nestlé opens new production facility in Konolfingen

Fri, 25 Apr 2008 07:47:04 GMT

Konolfingen, Switzerland April 25, 2008

Nestlé today inaugurated a Nestlé Nutrition facility in Konolfingen (Switzerland) in the presence of Swiss Economic Affairs Minister Doris Leuthard. The plant will produce new-generation probiotic infant formula under the NAN brand and enable Nestlé Nutrition to meet the growing needs of consumers in over 90 countries.

The inauguration marks the first stage in a series of investments totalling around CHF 180 million over the next three years, strengthening Konolfingen's position as a global manufacturing site for highly-specialised infant formula and healthcare nutrition. The new Nestlé Nutrition industrial site will benefit from synergies with Nestlé's Product Technology Centre, also based in Konolfingen.

The establishment of the new Nestlé Nutrition plant is a further sign that Nestlé sees the nutrition business as one of its key strategic areas with above-average growth and profit potential over the coming years. Nestlé Nutrition is today the world leader in specialised nutrition with sales of about CHF 11 billion in 2008.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé)Tel.: +41-21-924 3622

Further details are available in our Press Kit section.

Nestlé: very strong organic growth of 9.8% in first quarter of 2008. Full-year outlook confirmed

Mon, 21 Apr 2008 16:22:12 GMT

Vevey April 21, 2008

Sales of CHF 25.7bn, up CHF 1.5bn (+6%)
9.8% organic growth for the Group as a whole
9.8% organic growth for Food and Beverages
Continued strong real internal growth momentum: 4.5% (Group), 4.2% (Food and Beverages)
Nestlé Nutrition achieves 14.4% organic growth, 10.2% real internal growth
Full-year outlook: organic growth approaching 2007 level with improved EBIT margins in constant currencies

Paul Bulcke, CEO of Nestlé: "The strong start to the year reflects Nestlé's momentum as the world's leading nutrition, health and wellness company. On the basis of this high-quality growth, with a good balance between real internal growth and pricing, I am confident that we will achieve our 2008 targets: organic growth approaching the 2007 level together with improved EBIT margins in constant currencies."

In the first quarter of 2008, the Nestlé group reached consolidated Swiss franc sales of 25.7 billion, up CHF 1.5 billion or 6.0% over the same period last year. Reported sales benefited from a very strong organic growth of 9.8%, including 4.5% real internal growth. Food and Beverages also delivered 9.8% organic growth, of which 4.2% consisted of real internal growth. Acquisitions, net of divestitures, added another 3.2% to Group sales, primarily due to the acquisition of Gerber and Novartis Medical Nutrition in 2007. The net currency effect reduced reported group sales by 7% due to the strength of the Swiss franc compared to most other currencies.

Food and Beverages sales

In the first quarter of 2008, the organic growth of Nestlé's total Food and Beverages business (the Zones as well as globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, the Food and Beverages joint ventures) amounted to 6.1% in Europe, 10.9% in the Americas and 14.9% in Asia, Oceania and Africa.

Sales by management responsibilities and geographic areas
	Jan.-March 2008 Sales in CHF millions	Jan.-March 2007 Sales in CHF millions	Jan.-March 2008 Real Internal Growth (%)	Jan.-March 2008 Organic Growth (%)
Food & Beverages
- Zone Europe	6 690	6 497	2.9%	6.6%
- Zone Americas	7 457	7 393	3.7%	11.5%
- Zone Asia, Oceania and Africa	4 134	3 846	5.3%	14.0%
Nestlé Waters	2 164	2 322	-2.3%	-0.6%
Nestlé Nutrition	2 577	1 632	10.2%	14.4%
Other Food & Beverages(a)	922	805	21.5%	23.2%
Total Food & Beverages	23 944	22 495	4.2%	9.8%
Pharma	1 773	1 756	8.9%	8.5%
Group Total	25 717	24 251	4.5%	9.8%

(a) Mainly Joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Zone Europe: sales of CHF 6.7 billion, 6.6% organic growth, 2.9% real internal growth. A majority of the countries in the Zone enjoyed strong performances. Eastern Europe continued to experience double-digit organic growth. Western Europe also did very well, with Great Britain achieving near double-digit organic growth. By category, PetCare achieved strong growth led by premium brands such as Dog Chow. Soluble coffee did well, including the continued successful roll-out of Nescafé Dolce Gusto. An increased focus on Mövenpick of Switzerland helped ice cream sales in the low season.

Zone Americas: sales of CHF 7.5 billion, 11.5% organic growth, 3.7% real internal growth. Both North and Latin America achieved good organic growth. Pricing and other actions were applied across the Zone in response to continued input cost rises. The good performance of brands such as Nescafé, Nesquik, Nido, Coffeemate, Garoto and Dog Chow ensured strong organic growth in their respective product groups.

Zone Asia, Oceania and Africa: sales of CHF 4.1 billion, 14.0% organic growth, 5.3% real internal growth. The Zone's strong real internal growth was due to the strength of key brands such as Nescafé, Milo, Nido and Maggi, and it delivered double-digit organic growth in many product groups. Emerging markets did particularly well, especially South Asia, the Middle East, Indochina and the Philippines. Dairy products achieved positive real internal growth despite cost pressures over the past year.

Nestlé Waters: sales of CHF 2.2 billion, -0.6% organic growth, -2.3% real internal growth. These figures reflect the tough comparison with an excellent first quarter in 2007, as well as softer market conditions in the developed world. However, many developing markets enjoyed strong performances. Turkey, the Middle East and Latin America delivered double-digit organic growth. In terms of brands, Nestlé Pure Life maintained strong momentum with double-digit organic growth.

Nestlé Nutrition: sales of CHF 2.6 billion, 14.4% organic growth, real internal growth of 10.2%. This excellent performance was driven by near double-digit real internal growth in infant nutrition, mainly due to the continued roll-out of premium NAN starter formulas and infant cereals with branded active benefits. Jenny Craig achieved strong double-digit organic growth and its "improved health" campaign is proving a great success. The integration of Novartis Medical Nutrition and Gerber is almost complete and these businesses are performing in line with acquisition expectations.

Sales by product group

Sales by product group
	Jan.-March 2008 Sales in CHF millions	Jan.-March 2007 Sales in CHF millions	Jan.-March 2008 Real Internal Growth (%)	Jan.-March 2008 Organic Growth (%)
Powdered and liquid beverages	4 374	4 019	10.1%	14.7%
Nestlé Waters	2 164	2 322	-2.3%	-0.6%
Milk products and ice cream	4 629	4 340	4.6%	16.0%
Nestlé Nutrition	2 577	1 632	10.2%	14.4%
Prepared dishes and cooking aids	4 310	4 380	1.2%	5.1%
Confectionery	2 968	2 870	2.1%	7.3%
PetCare	2 922	2 932	3.9%	9.5%
Total Food & Beverages	23 944	22 495	4.2%	9.8%
Pharmaceutical Products	1 773	1 756	8.9%	8.5%
Group Total	25 717	24 251	4.5%	9.8%

All calculations based on non-rounded figures

Powdered and liquid beverages: sales of CHF 4.4 billion, 14.7% organic growth, 10.1% real internal growth. This outstanding performance again confirmed the strength of Nestlé's billionaire brands: Nescafé, Milo, Nesquik, Nestea and Nespresso. Furthermore, the continued success in rolling out Nescafé Dolce Gusto in Europe allowed Nestlé to increase its market share in the fast-growing portioned coffee segment there. The product group achieved double-digit organic growth in the Americas as well as Asia, Africa and Oceania.

Milk products and ice cream: sales of CHF 4.6 billion, 16.0% organic growth, 4.6% real internal growth. The very strong performance of milk products was the result of high single-digit real internal growth despite cost pressures both in 2007 and 2008. Strategic billionaire brands Nido and Coffeemate enjoyed strong performances, as did Nestlé EveryDay, the emerging tea creaming brand. Ice Cream had a good start to the year ahead of the summer season in Europe, in particular under the Mövenpick of Switzerland premium brand. The product group as a whole achieved double-digit organic growth in the Americas, as well as in Asia, Oceania and Africa.

Prepared dishes and cooking aids: sales of CHF 4.3 billion, 5.1% organic growth, 1.2% real internal growth. Maggi continued to deliver double-digit growth in Africa, Asia and Eastern Europe, as well as accelerated growth in Western Europe. In North America, frozen food was slower following recent price increases. Chilled food achieved strong organic growth in the US, mainly driven by Buitoni. The product group as a whole achieved double-digit organic growth in Asia, Oceania and Africa.

Confectionery: sales of CHF 3.0 billion, 7.3% organic growth, 2.1% real internal growth. The product group benefited from a successful Easter. KitKat had an excellent start to the year with strong trade acceptance in the UK for KitKat Senses and good growth in Europe after the re-launch of 4-finger KitKat in Germany and France. Overall, Latin America continued to be an excellent performer recording double-digit organic growth thanks to strong global and local chocolate and biscuit brands (Brazil with Nestlé assortment boxes, Chile with the Sahne Nuss and Super 8 brands and Venezuela with Toronto and Samba). Double-digit organic growth was also generated in the Middle East (with strong sales of KitKat and Quality Street), in Asian markets, as well as in Great Britain.

PetCare: sales of CHF 2.9 billion, 9.5% organic growth, 3.9% real internal growth. Organic growth continued to be driven by strategic brands, new product launches and product mix improvements. Both in Europe and the Americas, pricing and other actions were taken to offset continued increases in input costs. Several new product launches took place in the first quarter of 2008. Some examples in the US were Healthful Life from Purina Cat Chow, the innovative Tidy Cat Breeze litter system as well as the national rollout of Beneful prepared meals. Super premium wet cat offerings under the Fancy Feast, Gourmet Gold and Mon Petit brands performed well. The product group achieved strong organic growth in Europe and North America and double-digit organic growth in the rest of the world.

Pharmaceutical products: sales of CHF 1.8 billion, 8.5% organic growth, 8.9% real internal growth. Both Alcon and the joint ventures achieved strong organic growth.

Corporate developments

Nestlé's recently-announced agreement to sell a 24.85% share of Alcon to Novartis is further evidence of the Group's strategy of focusing on its recognized leadership in nutrition, health and wellness. The proceeds of the transaction, which is subject to regulatory approval and expected to be completed by the autumn, will be used to reduce debt as Nestlé pursues its on-going share buy-back programme.

At Nestlé's Annual General Meeting on 10 April 2008, shareholders approved the cancellation of 10,072,500 shares repurchased under the share buy-back programme launched on 24 August 2007, as well as a 1-for-10 share split to increase the liquidity and tradability of Nestlé shares. These measures will be completed by the end of June.

Outlook

The Group expects raw material cost pressures to abate somewhat in the course of 2008 and its reported pricing to come down in the second half of the year. However, in view of its strong start to the year, Nestlé foresees organic growth approaching the 2007 level for the full year, clearly above the company's long-term target, together with improved EBIT margins in constant currencies. 2008 will be another year of delivering the Nestlé model.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

You can follow the Investor Conference Call live at 08:30 CET on Monday April 21, 2008 or access the archived version after the event. Further details are available in our Events section.

Strong support for board proposals at Nestlé Annual General Meeting

Thu, 10 Apr 2008 14:10:04 GMT

Lausanne April 10, 2008

2 570 shareholders attended the Nestlé S.A. Annual General Meeting today in Lausanne. They represented 34.89 percent of the total capital and 53.28 percent of the shares entitled to vote. All proposals of the Board of Directors were voted with strong majorities. The annual report and the accounts were approved, and the shareholders agreed to the release of the Board of Directors and the Executive Board. Shareholders further approved the proposed dividend increase to CHF 12.20 per share, up 17.3 percent over last year. They also gave their assent to the reduction in the share capital by CHF 10 072 500 through the cancellation of a corresponding number of registered shares under the share buy-back programme launched on 24 August 2007. Shareholders further approved a 1-for-10 share split and respective increase of the number of shares.

Shareholders re-elected Messrs. Andreas Koopmann and Rolf Hänggi as members of the Board of Directors for a full 3-year term. Due to the age limit set forth in the Board Regulations, Mr. Peter Böckli did not stand for re-election. The Board wishes to extend its gratitude to Mr. Peter Böckli for his invaluable services as a member of the Board, the Audit Committee and chairman of the Compensation and Nomination Committee. The AGM further elected Messrs. Paul Bulcke and Beat W. Hess as new members of the Board. After the AGM, the Board appointed Mr. Paul Bulcke as "Administrateur délégué"/Chief Executive Officer of Nestlé, succeeding Mr. Peter Brabeck-Letmathe who stepped down after 11 years as CEO.

A very strong majority of 98.88 percent of the share capital represented at the meeting approved the proposed revised Articles of Association. The new Articles include abolishing the old attendance quorums and supermajority clauses; lowering the threshold for shareholders to put items on the Annual General Meeting agenda from 0.25% to 0.15% of total share capital; reducing Board members' term of office from five years to three; and increasing the maximum voting rights' percentage of any one shareholder from 3% to 5% of total share capital.

For the year to come, the different Committees of the Board are composed as follows:

Chairman's and Corporate Governance Committee:	Messrs. Brabeck-Letmathe, Bulcke, Koopmann, Hänggi, Lord George
Compensation Committee:	Messrs. Borel, Koopmann, Lord George, Fourtou
Nomination Committee:	Messrs.Villiger, Brabeck-Letmathe, Hänggi, Hoch
Audit Committee:	Messrs. Hänggi, Meyers, Villiger, Kudelski

The Chairman's address can be read in the Media Center.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Nestlé to Sell 24.85 % of Alcon Shares to Novartis

Mon, 07 Apr 2008 15:29:42 GMT

Vevey April 7, 2008

Nestlé has agreed to sell 24.85 percent of Alcon's issued and outstanding capital to Novartis for approximately USD 11 billion in cash.
From 2010 on, Novartis and Nestlé will have call and put option rights exercisable over Nestlé's remaining majority shareholding in Alcon.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé said: "Today's decision reflects Nestlé's commitment to ensure a strategically sound and financially attractive solution for Nestlé and Alcon. Nestlé has been able to take a further step in realizing shareholder value from its long-term Alcon investment. Alcon benefits from having a new minority shareholder whose activities are closely aligned with its own business and I am certain that this strategic decision will strengthen Alcon's leadership position in the very promising ophthalmic area."

Nestlé and Novartis have signed an agreement providing for the sale of 24.85 percent of Alcon's issued capital to Novartis. The cash transaction concerns 74 million Alcon shares at USD 143.1783 per share, with an aggregate value of approximately USD 11 billion. Nestlé will retain close to 52 percent of Alcon’s issued capital and continue to fully consolidate Alcon. There is no capital gains tax impact on Nestlé.

The proceeds of the transaction will be used by Nestlé to reduce debt as the company pursues its on-going share buy-back program. In addition, these proceeds will support opportunities for profitable growth in line with the Group's nutrition, health and wellness orientation. The transaction will have a positive effect on reported earnings per share (EPS) in 2008 and should be neutral on underlying EPS in 2008 and beyond. The transaction is subject to regulatory review and Nestlé expects the process to be completed before autumn of 2008.

In addition, Nestlé and Novartis have agreed put and call option rights on the remaining Alcon shares owned by Nestlé. From January 2010 till July 2011, Novartis will have a call option to acquire Nestlé's remaining majority shareholding in Alcon. This call option is at a fixed price of USD 181.- per share. During the same period, Nestlé will also have a put option to sell its remaining majority shareholding in Alcon to Novartis at the lower of either the call price of USD 181.- per share or the average share price during the week preceding the exercise plus a premium of 20.5 percent. The completion of the sale of Nestlé’s remaining shareholding in Alcon would also be subject to regulatory approval.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Nestlé Raises Organic Growth Outlook

Thu, 13 Mar 2008 19:00:46 GMT

Vevey March 13, 2008

Very strong organic growth projected for first quarter 2008
Full year 2008 organic growth to approach 2007 level
Expected EBIT margin improvement in constant currencies reconfirmed

Nestlé expects organic growth for the full year 2008 to be close to the previous year's level and clearly above the long-term trend target of between 5 and 6 percent.

During 2007 and in the current year, commodity markets have been characterized by sharp upward movements and increased volatility. This reflects strong global demand for food, accelerating usage of food raw materials for biofuels and the decisive presence in the market of non-traditional speculative players.

Consequently, the Group was forced to advance price increases for finished goods in order to partially absorb the higher input costs. Combined with the pricing effects in place at the end of last year, this accounts for a strong pricing element in organic growth for the first two months of 2008. At the same time, the Company accelerated its real internal growth momentum and had a successful early Easter season as well as an additional sales day in February. Together, these factors have resulted in an outstanding organic growth rate for the first two months, and this will be reflected in the first quarter sales which will be published on April 21, 2008.

The other elements influencing sales - foreign exchange as well as acquisitions and divestitures - are evolving as expected. Currencies, mainly as a result of the strength of the Swiss franc relative to the US dollar, but also to the Euro and other currencies, will weigh on consolidated sales, whereas acquisitions net of divestitures, mainly due to Novartis Medical Nutrition and Gerber, will boost sales growth.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, said: "The Group's organic growth is off to a very strong start in 2008. This demonstrates the benefits of Nestlé's strategic reorientation to Nutrition, Health and Wellness, reflected in the strong underlying momentum in our business, but also our strategy to respond immediately to exceptional cost evolutions in the commodity markets. We expect our raw material cost pressures to abate somewhat in the course of the year, and foresee price increases to trend lower in the second half of 2008, resulting in a full year organic growth rate close to the level reached in 2007, clearly above our long-term target. As for full year 2008 results, we maintain our commitment to the Nestlé model, delivering once again an improvement in the EBIT margin in constant currencies."

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé to open Chocolate Centre of Excellence

Mon, 10 Mar 2008 08:39:23 GMT

Vevey March 10, 2008

Nestlé today announced the establishment of the Chocolate Centre of Excellence, the company's first R&D facility entirely dedicated to the development of premium and luxury chocolate. The new Chocolate Centre of Excellence, located at Nestlé's chocolate factory in Broc (Switzerland), will be operational in the first half of 2009 and will bring together both internal and external know-how of international chocolate-making professionals such as top confiseurs, sensory experts and packaging designers. The project launch was attended by Roland Decorvet, market head of Nestlé Switzerland, and Beat Vonlanthen, Minister of Economic Affairs of the Canton of Fribourg. Petraea Heynike, Global Head of Nestlé's Chocolate Strategic Business Unit, and Klaus Zimmermann, Global Head of Nestlé's R&D and Product Technology Centers, also attended.

The establishment of the new Chocolate Centre of Excellence is a further sign that Nestlé sees luxury and premium products as one of its key strategic areas with above-average growth and profit potential over the coming years. In confectionery, the strong growth of dark and premium chocolate is the most visible sign of "premiumisation", as witnessed by strong brands such as Cailler, Perugina, Baci and Nestlé Noir. It also explains Nestlé's partnership with Belgian luxury chocolatier Pierre Marcolini who will provide inspiration to the team in Broc for some of the company's future chocolate ranges.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Nestlé's positive environmental and social impact: CO2 emissions down 16% over past ten years, water withdrawal down 28%

Mon, 03 Mar 2008 11:11:00 GMT

Vevey March 3, 2008

At a joint Nestlé-UN Global Compact event in New York, Peter Brabeck-Letmathe, Chairman and CEO of Nestlé, today presented the company's first Creating Shared Value report, including new figures on the impact of its business activities on the environment and society across the world. In 2007, Nestlé reduced its direct greenhouse gas emissions by 16% compared to ten years ago, and its overall water withdrawal by 28%, while at the same time increasing the total volume of goods produced by 76%. In 2007, Nestlé invested over CHF 100 million in environment-related industrial improvements, as well as around CHF 170 million in new production facilities in Brazil, Pakistan and China. The company also continued to provide free technical assistance to over 600,000 farmers in the developing world, including CHF 30 million in micro-credits.

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "Creating Shared Value means thinking long term while at the same time delivering strong annual results. One of the fundamental Nestlé Corporate Business Principles is that we will not sacrifice long-term development for short-term gain. This enables us to deliver the Nestlé model – 5-6% organic growth together with an EBIT margin improvement in constant currencies – year after year, while at the same time improving our environmental and social performance, thereby having a positive impact on millions of people across the world."

The report, which was reviewed for accuracy by Bureau Veritas, is an integral part of Nestlé's business reporting. It contains a number of detailed figures which have become available as a result of the continued development of GLOBE, Nestlé's worldwide management information system, and are now made public for the first time. Indeed, GLOBE will supply increasing amounts of information about Nestlé over the coming years, allowing the company to provide progressively more quantitative information about its activities in local communities everywhere. The full text of the report in English, French, German and Spanish, as well as supporting video material, is available at www.nestle.com/csv.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

2007 milestone year for Nestlé: Sales reach CHF 107.6bn, EBIT margin 14%

Thu, 21 Feb 2008 18:52:59 GMT

Vevey February 21, 2008

Sales of CHF 107.6bn, up CHF 9.1bn (+9.2%), Food and Beverages sales reach CHF 100.3bn
Above-target organic growth of 7.4%, 4.4% real internal growth
EBIT of CHF 15bn (+12.9%), margin of 14%, +50 basis points
Food and Beverages: 7.1% organic growth, EBIT margin +40 basis points
Net profit of CHF 10.6bn (+15.8%), earnings per share CHF 27.81 (+16.4%)
Discipline in capital management: return on invested capital (ROIC) up +100 basis points

Proposed dividend CHF 12.20 per share, up 17.3% from CHF 10.40 for 2006

Peter Brabeck-Letmathe, Chairman and CEO of Nestlé: "This milestone performance was achieved in a difficult external environment and, for the twelfth year in a row, has demonstrated the power of the Nestlé model: organic growth of at least 5-6% coupled with a sustainable EBIT margin improvement, irrespective of prevailing economic conditions. Nestlé is now uniquely positioned as the world's foremost nutrition, health and wellness company with leading brands, global geographic spread and an exceptional management team. Indeed, Nestlé has ventured far beyond the traditional food industry: our success is now driven more by our capacity to innovate and use our R&D pipeline to launch new, added-value products and services, than by raw material prices or the economic climate. Combined with our strong emphasis on excellence in execution and discipline in capital management, we have, over time, created powerful momentum which will deliver profitable growth for years to come."


				Margins
	Jan.-Dec. 2007	Changes vs. Jan.-Dec. 2006		Jan.-Dec. 2007	vs. Jan.-Dec. 2006
Sales	CHF 107 552m	+ 9.2%	+ CHF 9 094m
EBIT	CHF 15 024m	+ 12.9%	+ CHF 1 722m	14.0%	+50 bps
Net profit	CHF 10 649m	+ 15.8%	+ CHF 1 452m	9.9%	+60 bps
Total EPS	CHF 27.81	+ 16.4%
Real internal growth Organic growth	4.4% 7.4%

All calculations based on non-rounded figures

Group sales, profitability and financial position

Vevey, 21 February 2008 - In 2007, consolidated sales of the Nestlé Group amounted to CHF 107.6 billion, an increase of 9.2% over the same period last year. This was driven by organic growth of 7.4%, consisting of real internal growth of 4.4% and price increases of 3.0%. Acquisitions net of divestitures, primarily driven by the acquisition of Novartis Medical Nutrition and Gerber, contributed another 1.4% of growth while exchange rate fluctuations added another 0.4%. The Group's Food and Beverages business, with sales of CHF 100.3 billion, was the main contributor to growth, achieving organic growth of 7.1%, consisting of real internal growth of 4.0% and price increases of 3.1%.

The Group's EBIT grew by 12.9% to CHF 15 billion, resulting in an EBIT margin of 14%, a 50 basis point improvement over 2006. Food and Beverages' EBIT grew by 12.7% to CHF 12.6 billion, resulting in a margin improvement of 40 basis points. These performances were achieved in spite of a negative 10 basis point currency impact. Timely pricing actions, scale efficiencies, cost reduction initiatives, as well as the ongoing strategic transformation process allowed the Food and Beverages business to more than offset higher raw material and energy costs in 2007.

Net profit grew by 15.8% to CHF 10.6 billion, resulting in a net margin of 9.9%, up 60 basis points. Earnings per share once again grew at a double-digit rate, by 16.4% to CHF 27.81.

The Group’s operating cash flow increased by 15.1%, from CHF 11.7 billion to CHF 13.4 billion, while free cash flow increased from CHF 7 billion to CHF 8.2 billion. Tight capital management was demonstrated by continued efficiencies in working capital and the launch of a third share buyback programme. The return on invested capital (ROIC), excluding goodwill, improved by 100 basis points, to 22.2%; including goodwill, it was up 50 basis points, to 12.2%. The Group’s net debt rose to CHF 21.2 billion, mainly due to the acquisition of Novartis Medical Nutrition and Gerber, as well as the buyback of shares amounting to CHF 4.4 billion in 2007.

Group Food and Beverages sales

In 2007, the organic growth of Nestlé's total Food and Beverages business (including globally-managed businesses such as Nestlé Waters, Nestlé Nutrition, Nespresso, the Food and Beverages joint ventures, as well as the Zones) amounted to 4.2% in Europe, 8.6% in the Americas and 9.6% in Asia, Oceania and Africa.

Sales and EBIT margins by management responsibilities and geographic areas
	Jan.-Dec. 2007 Sales in CHF millions	Jan.-Dec. 2007 Organic Growth (%)	EBIT Margins
	Jan.-Dec. 2007 Sales in CHF millions	Jan.-Dec. 2007 Organic Growth (%)	Jan.-Dec. 2007	Change vs. Jan.-Dec. 2006 (a)
Food & Beverages
- Zone Europe	28 464	+ 3.0	12.0%	+30 bps
- Zone Americas	32 917	+ 8.1	16.3%	+50 bps
- Zone Asia, Oceania and Africa	16 556	+ 8.8	16.3%	-30 bps
Nestlé Waters	10 404	+ 6.6	8.2%	-50 bps
Nestlé Nutrition	8 434	+ 9.7	17.2%	+30 bps
Other Food & Beverages (b)	3 458	+ 23.2	15.8%	+220 bps
Total Food & Beverages	100 233	+ 7.1	12.6%	+40 bps
Pharma	7 319	+ 11.0	33.3%	+140 bps
Group Total	107 552	+ 7.4	14.0%	+50 bps

(a) 2006 comparatives have been restated to reflect internal changes in management responsibility as of 1 January 2007
(b) mainly joint ventures managed on a worldwide basis and Nespresso
All calculations based on non-rounded figures

Zone Europe: sales of CHF 28.5 billion, 2% real internal growth and 3% organic growth. The Zone experienced double-digit growth in eastern Europe, mainly in Russia and Poland, and positive growth trends in key western European markets, such as Germany, France and Great Britain. The Zone's 30 basis points improvement in EBIT margin was mainly driven by higher operational performance and was achieved in spite of investments in premium segment initiatives. Mövenpick of Switzerland did particularly well as a pan-European super-premium ice cream brand. Nescafé Dolce Gusto had strong first year sales, driven both by continued success in the initial launch markets and successful introductions in a further six markets. Chocolate did well due to a renewed focus on strategic brands, particularly in Great Britain, as did soluble coffee and the pet care business.

Zone Americas: sales of CHF 32.9 billion, 3.3% real internal growth and 8.1% organic growth. Real internal growth remained strong across the Zone, with good contributions from fast-growing Popularly Positioned Products and direct sales distribution initiatives in Latin America. EBIT margins increased by 50 basis points led by timely pricing, operational improvements and successful innovative product launches such as Nescafé Protect, Panini Lean Cuisine or Cat Chow Natural. Key product categories such as ice cream and beverages improved their EBIT margin supported by a stronger focus on more value-added products.

Zone Asia, Oceania and Africa: sales of CHF 16.6 billion, 4.4% real internal growth and 8.8% organic growth. The Zone's EBIT margin slipped 30 basis points to 16.3% as a result of two one-off factors in 2007: Nestlé Japan was the Group's last market to move to a demand-driven, just-in-time business model and, in Australia, Nestlé was affected by the specific situation of a key customer. The Zone's emerging markets continued to deliver double-digit growth with all categories contributing. While these markets were particularly exposed to exceptionally high milk prices, timely pricing, together with efficiency initiatives and successful new launches such as Nido growing up milks enriched with probiotics in several Asian markets were sufficient to protect EBIT margins in emerging markets.

Nestlé Waters: sales of CHF 10.4 billion, 5% real internal growth and 6.6% organic growth. Following a very promising first half, the second half of the year was somewhat softer, mostly due to unfavourable weather conditions in Europe. This slow growth, together with continued weakness in the European home and office delivery (HOD) business as well as higher packaging and distribution costs, caused the EBIT margin to fall by 50 basis points. In North America and emerging markets, double-digit sales growth was achieved. With over 30% organic growth, Nestlé Pure Life maintained its momentum and the brand is now a key growth driver in over 20 countries. Overall market shares continued to improve in most countries.

Nestlé Nutrition: sales of CHF 8.4 billion, real internal growth of 6.5% and 9.7% organic growth. As a result of the acquisition and successful integration of Jenny Craig in 2006 as well as Novartis Medical Nutrition and Gerber in 2007, Nestlé Nutrition reinforced its undisputed world leadership in specialised nutrition, with annualised sales of around CHF 11 billion. In parallel with the integration of these acquisitions, thanks to a highly productive R&D pipeline, Nestlé Nutrition continued to experience strong sales and profit growth in its established businesses, mainly driven by new launches of premium NAN starter formulas and infant cereals. Even though recent acquisitions had an anticipated initial dilutive impact, Nestlé Nutrition's EBIT margin increased by 30 basis points.

Nestlé Professional: sales of CHF 7.2 billion, 2.5% real internal growth and 5.5% organic growth. The transformation of Nestlé's FoodServices Strategic Business Division into Nestlé Professional, a globally-managed business unit dedicated to the out-of-home food and beverage market, was the main priority in 2007, including the build-up of a new management team. The opening of Nestlé's first R&D facility entirely dedicated to the out-of-home beverage business in Orbe, Switzerland last November constituted a milestone in this process. Nestlé Professional will have worldwide profit and loss responsibility as of 1 January 2009.

Sales and EBIT margins by product group
	Jan.-Dec. 2007 Sales in CHF millions	Jan.-Dec. 2007 Organic Growth (%)	EBIT Margins
	Jan.-Dec. 2007 Sales in CHF millions	Jan.-Dec. 2007 Organic Growth (%)	Jan.-Dec. 2007	Change vs. Jan.-Dec. 2006
Nestlé Nutrition	8 434	+ 9.7	17.2%	+30 bps
Powdered and liquid beverages	17 841	+ 10.3	22.4%	0 bps
Prepared dishes and cooking aids	18 504	+ 4.0	13.0%	-20 bps
Milk products and ice cream	20 672	+ 7.8	11.1%	+90 bps
Nestlé Waters	10 404	+ 6.6	8.2%	-50 bps
Confectionery	12 248	+ 5.3	11.6%	+10 bps
PetCare	12 130	+ 7.0	15.5%	+40 bps
Total Food & Beverages	100 233	+ 7.1	12.6%	+40 bps
Pharmaceutical products	7 319	+ 11.0	33.3%	+140 bps
Group Total	107 552	+ 7.4	14.0%	+50 bps

All calculations based on non-rounded figures

Powdered and liquid beverages: sales of CHF 17.8 billion, 7.6% real internal growth and 10.3% organic growth. This excellent performance was driven by the core brands of the product group. Nescafé experienced strong growth due to the continued success of the coffee mixes, freeze dried soluble coffee and the successful launch of Nescafé Dolce Gusto. Nespresso had another outstanding year with over 40% organic growth. Double-digit growth was also recorded by two other billionaire brands - Milo, helped by its Actigen-E Branded Active Benefit, and Nestea, which enjoyed strong performances in Asia, Africa and central and eastern Europe. EBIT margins remained unchanged at 22.4% in spite of the substantial investment in the launch of Nescafé Dolce Gusto.

Prepared dishes and cooking aids: sales of CHF 18.5 billion, 3.2% real internal growth and 4.0% organic growth, including an acceleration over the second half of the year. Double-digit performance was realized by culinary products in emerging markets, especially under the Maggi brand, as well as by Lean Cuisine and Buitoni in North America, where the business continued to benefit from strong innovation focused on health and wellness. Maggi achieved market share improvements in western Europe. Despite this acceleration, EBIT margins declined by 20 basis points in 2007, reflecting investments in distribution networks in developing countries as well as the tough competitive environment in some lower value-added activities, such as dried pasta in Europe.

Milk products and ice cream: sales of CHF 20.7 billion, 1.7% real internal growth and 7.8% organic growth. Nestlé's strong brand portfolio in shelf-stable milk products allowed the Group to take the necessary actions to compensate for an exceptional milk cost increase while at the same time achieving volume growth. The growing-up milk segment was led by Nido and innovations in Branded Active Benefits. Coffeemate experienced impressive volume growth, especially in the US and Asia. Ice cream sales performed well in Latin America, Asia and eastern Europe. Volumes in western Europe and the US were weaker as a result of a greater focus on profitability. Chilled dairy substantially improved its profit performance. Overall the category's EBIT margin improved by 90 basis points, a notable achievement in view of prevailing high input costs.

Confectionery: sales of CHF 12.2 billion, 2.3% real internal growth and 5.3% organic growth. All three categories - chocolate, sugar and biscuits - grew, led by emerging markets in Latin America and Asia. Kit Kat had a strong year, particularly in Oceania, South Asia and most markets in Europe. Double-digit growth was seen in the tablet segment, driven by premium dark chocolate products such as Perugina Nero in Italy. Increased focus on core strategic and strong local brands resulted in an EBIT margin improvement of 10 basis points overall.

PetCare: sales of CHF 12.1 billion, 3.8% real internal growth and 7.0% organic growth. This was driven by strategic brands, new product launches and continued product mix improvements across the world. Brands in the super-premium and high premium segments performed particularly well. These included Fancy Feast, Pro Plan, One, Gourmet Gold and Beneful. Core premium brands such as Dog Chow and Cat Chow also generated appreciable growth. The excellent result was achieved despite increased pricing. The business' EBIT margin improved by 40 basis points, to 15.5%. This increased profitability was the result of continued growth of value-added strategic brands together with price increases which offset significantly higher input costs.

Pharmaceutical products: sales of CHF 7.3 billion, 10.2% real internal growth and 11.0% organic growth was the result of double-digit growth by both Alcon and the joint ventures. The EBIT margin increased 140 basis points to 33.3%, mainly due to operational efficiencies and a positive product mix at Alcon.

Board proposals to the Annual General Meeting

The strong performance in 2007 and the positive outlook for 2008 will enable the Board to propose to shareholders a dividend increase of 17.3% from CHF 10.40 per share to CHF 12.20 per share.

The ongoing share buy-back programme has so far resulted in the purchase of 10,196,000 shares between 24 August 2007 and 5 February 2008. The Board will propose the cancellation of 10,072,500 shares amounting to CHF 5.3 billion. Furthermore, in order to increase the liquidity and tradability of Nestlé shares, the Board will propose a 1-for-10 share split. Should this proposal be accepted, the Board would then divide ADRs by 2.5 to achieve value parity with ordinary shares.

The mandate of Mr. Peter Böckli, who first joined the Board in 1993, expires in April 2008. The Board wishes to express its gratitude to Mr. Böckli for his highly-appreciated services over the years, not only as one of its members, but also as member of the Audit Committee and chairman of the Compensation and Nomination Committee.

The Board will propose the re-election of Messrs. Andreas Koopman and Rolf Hänggi, 1st and 2nd Vice Chairman of the Board, respectively. Furthermore, the Board will propose the election of Mr. Beat W. Hess, Group Legal Director and member of the Group Executive Committee of Royal Dutch Shell. Mr. Hess has over 20 years' experience in complex business and management issues in large global companies, particularly in the area of corporate governance.

The Board will also propose the election of Mr. Paul Bulcke, until recently Executive Vice President in charge of Zone Americas, as one of its members with the intention of immediately confirming his appointment as Administrateur délégué (CEO) once he is elected. As previously announced, Mr. Peter Brabeck-Letmathe will stand down as CEO, but will remain Chairman of the Board.

Finally, the Board will submit a proposal for new Articles of Association to shareholders for approval at the forthcoming Annual General Meeting. Individual elements of this proposal include abolishing the old attendance quorums and supermajority clauses; lowering the threshold for shareholders to put items on the Annual General Meeting agenda from 0.25% to 0.15% of total share capital; reducing Board members' term of office from five years to three; and increasing the maximum voting rights' percentage of any one shareholder from 3% to 5% of total share capital. The Board is convinced that its proposal is well balanced, taking into account the views of different shareholder groups, and is in the company's best interest.

Outlook

Nestlé is confident that the momentum built up over time and once again demonstrated by the 2007 results will be maintained over the coming years. The company's strategic re-orientation and the related structural adjustments have largely been completed and the Group's leadership position in nutrition, health and wellness is now deeply rooted. Nestlé's rich R&D pipeline promises many new, innovative product launches over the coming years. Operational efficiency and capital discipline will remain high on the agenda. Within Nestlé's excellent prospects overall, four key strategic areas have been identifed as having above-average growth and profit potential in 2008 and beyond.

Nestlé Nutrition has annualised sales of around CHF 11 billion. The integration of Novartis Medical Nutrition and Gerber was achieved in record time and the two businesses' performance is already exceeding expectations. For years to come, Nestlé's strong R&D pipeline will continue to drive growth of all Nestlé Nutrition businesses, and will also fuel the performance of mainstream products enriched with Branded Active Benefits (BABs), which grew by over 16% to reach CHF 4.4 billion in sales in 2007.

Popularly Positioned Products (PPPs). Products aimed at lower income consumers in the developing world will continue to grow strongly in 2008 and beyond. Nestlé PPPs, which mostly consist of dairy products, Nescafé and Maggi culinary products, grew by over 25% to reach around CHF 6 billion in sales in 2007. The overall market for such products in Asia, Africa and Latin America is estimated at over CHF 80 billion.

Out-of-home. In the US and other mature markets, consumers spend more on out-of-home food and beverages than on home consumption, a trend which is set to continue. With sales of over CHF 7.2 billion and 10,000 employees in 97 countries, Nestlé is already uncontested world leader in this highly fragmented market. With the on-going transformation of Nestlé's FoodServices Strategic Business Division into Nestlé Professional, the company is well poised to take advantage of a business opportunity over coming years estimated at around CHF 400 billion in total.

Luxury and premium products. With growth of well over 40% in 2007, Nespresso is set to reach the CHF 2 billion sales mark in 2008. Mövenpick of Switzerland, which was relaunched as a pan-European super-premium ice cream brand in 2007, should continue growing fast in 2008, as should Häagen-Dazs in North America and Antica Gelateria del Corso in Europe. In confectionery, the strong growth of darker, premium chocolate is another visible sign of "premiumisation" and explains Nestlé's partnership with Belgian luxury chocolatier Pierre Marcolini, as well as the acquisition of Ruzskaya Confectionery Factory (RCF), producer of Russia's leading premium chocolate brands Comilfo and Ruzanna. The "premiumisation" of mainstream Nestlé products, as witnessed for instance by the recent launch of Nido Excella Gold in Asia and Latin America, will pick up further speed over years to come.

In summary, the Group is confident of achieving the Nestlé model in 2008:

organic growth of between 5 and 6%;
a further EBIT margin improvement in constant currencies;
a further capital efficiency improvement.

The Nestlé model, combined with the ongoing ambitious share buyback programme, will deliver strong earnings per share growth, resulting in industry-outperforming, long-term shareholder value creation.

Date of the next General Meeting

The General Meeting of Nestlé S.A. will take place on 10 April 2008 at 14:30 at the Palais de Beaulieu in Lausanne. The management report will be available from 14 March 2008, whereas the fully-audited financial statements are now posted on the Nestlé Corporate Website (www.nestle.com). The dividend will be payable from 16 April 2008.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Management changes at Henniez

Thu, 07 Feb 2008 16:53:24 GMT

Vevey, Switzerland February 7, 2008

Nestlé Suisse S.A., which holds 99.63% of the shares of Sources Minérales Henniez S.A., today announced the following changes to the Executive Committee of Henniez.

From 1 April 2008, Michel Beneventi, a Swiss national (37 years old), will take over the company’s general management, becoming Chief Executive Officer. He will be assisted by David Karlik, an Austrian national (34 years old), as Financial Director.

Nicolas Rouge, a Swiss national (43 years old), up to now Chief Executive Officer, will in turn be made Chairman of the Board.

This change in company management is in line with accomplishing the ongoing integration phase of Sources Minérales Henniez S.A.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé enters into strategic partnership with Belgian luxury chocolate maker Pierre Marcolini

Thu, 13 Dec 2007 16:49:16 GMT

Vevey, Switzerland December 13, 2007

Nestlé today announced a strategic partnership with Brussels-based luxury chocolate maker Pierre Marcolini. The partnership will allow Nestlé to benefit from the know-how and artistic talent of one of the world's leading luxury chocolate makers, while Pierre Marcolini will gain access to Nestlé's global experience. Pierre Marcolini will provide inspiration for future Nestlé chocolate ranges, while Nestlé will help Pierre Marcolini expand his network of boutiques across the world. Pierre Marcolini will continue to lead his company as an independent and autonomous operation, and Nestlé will join its board. The parties have agreed not to reveal the financial details of the new partnership.

The move further underlines Nestlé's commitment to the premium and luxury chocolate market. Nestlé is strong in the premium chocolate segment with brands such as Perugina, Baci, Nestlé Noir and Cailler. Nestlé is also the world's largest buyer of fine cocoa beans with local operations in key countries such as Ecuador and Venezuela, which account for over half of the world's production of fine beans.

Contacts:: Media: François-Xavier Perroud (Nestlé) Tel.: +41-21-924 2596; Anja Goemaere (Pierre Marcolini) Tel.: +32-2-247 99 81; Investors: Roddy Child-Villiers (Nestlé) Tel.: +41-21-924 3622

Press photographs are available in our Media Center

Nestlé Holds 99.63% of Henniez

Fri, 30 Nov 2007 14:55:38 GMT

Vevey, Switzerland November 30, 2007

As of the end of the additional acceptance period on 29 November 2007, Nestlé Suisse S.A. holds 39,851 Sources Minérales Henniez S.A. (SMH) shares amounting to 99.63% of the share capital and the voting rights of Henniez.

Until the expiry of the additional acceptance period, Nestlé obtained 15,188 SMH shares tendered into the offer. This corresponds to 99.03% of the publicly held 15,337 SMH shares at the time of the publication of the offer. Together with the 24,663 SMH shares acquired from the Rouge family, Nestlé holds a total of 39,851 SMH shares, which corresponds to 99.63% of the share capital and the voting rights of SMH. The offer price per SMH share amounts to CHF 5,303 net in cash and will be paid, for the SMH shares validly tendered during the additional acceptance period, with value date of 13 December 2007.
As indicated previously, Nestlé intends to delist the SMH shares and to apply for the cancellation of the remaining SMH shares, in accordance with art. 33 of the Swiss Federal Act on Stock Exchanges and Securities Trading.

Nestlé will publish the final result of the public offer on 5 December 2007 in German in the Neue Zürcher Zeitung and in French in l'AGEFI.


Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé strengthens its leadership in the Russian chocolate market

Mon, 26 Nov 2007 08:28:40 GMT

Vevey, Switzerland November 26, 2007

Nestlé Rossiya, the leading food and beverage company in Russia, today announced the acquisition of Ruzskaya Confectionery Factory (RKF). This company offers consumers a wide range of chocolate products under the Сomilfo and Ruzanna brands. The acquisition price was not disclosed. Completion of the transaction is subject to the usual regulatory approvals by the Russian Federation authorities.

With sales of about USD 51 million in 2006 and an estimated 40% organic growth rate for 2007, RKF is a leading premium chocolate producer in Russia. Once the acquisition is completed, about 1,000 RKF employees, with their specific know-how, will join Nestlé Rossiya. Nestlé plans to extend the production capacity of RKF, which is located in the Ruza district near Moscow. With its strong supply and distribution network, Nestlé will bolster the presence of the acquired brands in Russian regions outside Moscow and Saint Petersburg.

The high-quality image of the Сomilfo and Ruzanna brands ideally complements Nestlé's chocolate brand portfolio in Russia, and will boost Nestlé's presence in the fastest growing segment of the Russian chocolate market, the premium category. Indeed, the move is a further testimony to Nestlé's commitment to the premium chocolate market across the world.

Over the past 13 years, Nestlé has built up a strong presence in Russia with over 10,000 employees and 13 factories. With double-digit growth rates and sales of more than CHF 1.6 billion in 2006, Nestlé is market leader in Russia in coffee, chocolate, culinary products and infant nutrition, and is making good progress in pet food and ice cream.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé opens first R+D facility entirely dedicated to its out-of-home beverage business

Wed, 21 Nov 2007 11:33:55 GMT

Orbe (Switzerland) November 21, 2007

Nestlé today opened the new Nestlé Professional Beverage Centre, the company's first R&D facility entirely dedicated to its out-of-home beverage business. The new Beverage Centre, located at Nestlé's worldwide centre of expertise for coffee and cereals in Orbe, will benefit from R&D synergies of an industrial site which already employs over 1,100 people. The new facility was inaugurated by Peter Brabeck-Letmathe, Nestlé's Chairman and CEO, and Jean-Claude Mermoud, Economic Affairs Minister of the Swiss Canton of Vaud, together with Marc Caira, Head of Nestlé Professional, and Claude Recordon, Mayor of Orbe.

The establishment of the new Beverage Centre comes in the wake of the announcement on 18 October 2007 that Nestlé is upgrading its existing FoodServices Strategic Business Division into Nestlé Professional, a globally-managed business unit dedicated to the out-of-home food and beverage market. This huge business opportunity has been identified as one of Nestlé's three axes for higher growth in the future. With sales exceeding CHF 6 billion per year and 10,000 employees in 97 countries, Nestlé is already world leader in the food services market. Nevertheless, the Group feels that the overall market opportunity will better be seized with a dedicated, segment-specific organisation, including the R&D facility inaugurated in Orbe today. Nestlé Professional will have full operational responsibility from 2008 and full financial responsibility from 2009.

Contacts:: Media: François-Xavier Perroud Tel.: +41-21-924 2596; Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Provisional Interim Result regarding the Public Tender Offer for Henniez

Fri, 16 Nov 2007 16:04:08 GMT

Vevey, Switzerland November 16, 2007

Nestlé announces the provisional interim result regarding the public tender offer of Nestlé Suisse for Henniez. As of the end of the offer period on 12 November 2007, Nestlé Suisse holds 39’441 Henniez shares which corresponds to 98.60% of the share capital and the voting rights of Henniez.

On 16 October 2007, Nestlé Suisse SA (“Nestlé Suisse”) launched the public tender offer (“the Offer”) for all publicly held registered shares (“SMH Shares”) of Sources Minérales Henniez SA (SMH). The offer period started on 16 October 2007 and expired on 12 November 2007, 4pm (CET) (“the Offer Period”).The offer price per SMH share amounts to CHF 5’303 net in cash (less the gross amount of any dilution effects, which become effective prior to the completion of the offer).

Provisional interim result
Until the expiry of the offer period, 14’778 SMH shares were tendered into the offer made by Nestlé Suisse. This corresponds to 96.36% of the issued, and at the time of the publication of the offer publicly held, 15’337 SMH shares.
Together with the 24’663 SMH shares acquired directly and indirectly through the purchase agreement with Mrs. Françoise Rouge and Messrs. Pascal and Nicolas Rouge, Nestlé Suisse holds in total 39’441 SMH shares, which corresponds to 98.60% of the share capital and the voting rights of SMH.

Satisfaction of the conditions
The offer is subject to the following condition:
No court and no other authority has passed a judgment or issued an order which prohibits or declares this offer or the execution of this offer unlawful.
Nestlé Suisse waives this condition and declares the offer successful.

Additional acceptance period
An additional acceptance period of ten trading days will run from 16 November 2007 to 29 November 2007 at 4pm (CET) in order for those holders of SMH shares who have not yet tendered them to be able to tender them into the offer.

Information and registration
Shareholders whose shares are deposited in a bank
Those shareholders of SMH who have deposited their shares in a bank in Switzerland and have not yet tendered into the offer will be informed by their bank and are invited to follow its instructions.

Shareholders who keep their shares at their place of residence
Those shareholders of SMH who keep their shares at their place of residence or in a bank safe and who have not yet tendered their shares into the offer will be informed by the share register and will be invited to follow its instructions.

Payment of the offer price
The payment for SMH shares validly tendered during the offer period will be made with value date 16 November 2007 (first execution date). For SMH shares validly tendered during the additional acceptance period the payment of the offer price will be made with value date 13 December 2007 (second execution date).

Delisting and cancellation of the shares
As outlined in section E.2 of the offer prospectus, Nestlé Suisse intends to delist the SMH shares and to apply for the cancellation of the non tendered SMH shares, in accordance with article 33 of the Swiss Federal Act on Stock Exchanges and Securities Trading.

Restrictions of the offer
Notably in the United States of America and United Kingdom. The exact wording can be found in the offer prospectus.

Mandated bank: CREDIT SUISSE

Sources Minérales Henniez SA
Shares with a nominal value of CHF 125.-
Value Number: 234 525
ISIN: CH 000 234525 1
Ticker Symbol: HIZN

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622

Nestlé controls 98.6% of Henniez

Tue, 13 Nov 2007 16:41:57 GMT

Vevey, Switzerland November 13, 2007 Nestlé states that by November 12, 2007 a total of 14,778 publicly held shares of Sources Minérales Henniez (SMH) were tendered. Combined with the 24,663 shares acquired from the Rouge family, Nestlé now controls 98.6% of the Henniez share capital. An additional acceptance period from November 16 till November 29, 2007, will run to allow for tendering the shares that are still outstanding; the offer price amounts to CHF 5,303.

Contacts:
Media: François-Xavier Perroud Tel.: +41-21-924 2596
Investors: Roddy Child-Villiers Tel.: +41-21-924 3622