/ (96% ) , . . (69% ) . ( 6.5%) . % . Traffic - Penetration (% of Canadians who Shop at Retailer) and TrafficTrips - Frequency (# of Shopping Trips / Year)Spend per Trip - Basket Size (Average $ Spent per Trip)Profit

2

$ Sales in millions 2012 National C&G ChannelSource: Nielsen MarketTrack Total National 52wk to Sept 2012-3%+10%0+4%+2%-5%+4%-7%+4%+10%+4%+4%+6%+1%-4%120.564.747.170.054.382.536.638.810.315.514.112.56.811.078.1 . 1.J & D Total confectionery = $246.8MM sales. Units drive trips, trips, trips!!3

.: Nielsen Homescan 2012 All Channels Total shopping universe above many other categories. Get fundamentals right have ability to influence everyone that walks through the door.

4

Source: Nielsen Homescan PanelSource: Nielsen Annual Market Review 2010; All Channels

. .

( 119): TNS Worldpanel, 52 w/e 17 May 09

92% (92% .)Expandability you can increase # of units someone is buying without impacting how quickly they return

6

.ShOptimizer Convenience, Total Survey !

( %)

( %) ( %)They eye it they buy itImpulsivity stat most likely to end up in a basket driven by an impulse purchase

How can Nestle work with retailer? Build eye-catching displays. DISPLAY

7 . (>50% ). .

: Nielsen Market Track, National GB+MM+Drug, L52wks p/e Dec 14, 2013. Everyday Chocolate % Sold on TPR = 46%

$1.75 ; 2

96%; 1 3.6kg119 1 ;

, ; 57%

: :

Source: NPD NET Canada; Statistics Canada Population Estimates; Euromonitor reported chocolate tonnage consumption per annum 1 67%

%Source: Ipsos FIVE Tl Food + Beverages Sept 2013 !

TI TI /

4 33%21%24%22%Source: GfK Canadian Usage & Attitudes Study Oct 2012 43% 57%Largest need states are enhancement and gratification, fastest growing need states are Sustainment and Permissibility.Chocolate is a go-to snack for Enhancement or Gratification, but it is less developed as a snack for Sustainment and PermissibilityChocolate under-developed in Sustainment & Permissibility (43% of Snacking, only 28% of Chocolate occasions).Gratification and Enhancement biggest driver 57% of Snacking overall, 72% of Chocolate1221%22%33%24% // / / Macro Snack Needs State Model Highest Category Development Shown Source: GfK U&A Study Oct 2012

.78% * 2-3

*50%Nestle In-store Shopper Research 2012

2-3

Heavy C-store shoppers GTA = 88%; Non-GTA = 68%14 () 55%54%49%44%Base: Purchasers (n=162)75%70%43%Nestle In-store Shopper Research 201214-24 65% () + . When the shoppers need states motivate them to want chocolate, flavour and brand are the top two factors they consider when selecting a product to buy. 46% of total shoppers say Nestle is their favourite brand. All other brands combined were mentioned by 74% of shoppers. Type of package was rated as among the top three factors in terms of importance by less than four percent of purchasers.

15On average, how long do you spend inside a Convenience Store? Over 90% spend 5 min or less per visit in the C-Channel

?Nielsen PanelViews Convenience & Gas Study 2012 .Display on the checkout counterNestle In-store Shopper Research 2012

Base: Total Shoppers Observed (n=748) 3/4 () . () .Nestle In-store Shopper Research 2012

Base: Total Shoppers N=196; % claimed to purchase product category from the front end weekly or more often*Base: Those who decided to purchase chocolate once in the store

* !82% 6 . ( ) . )

Base: Total Shoppers N=196; % claimed to purchase product category from the front end weekly or more oftenNestle In-store Shopper Research 2012

13.8 times per yearOpportunity of increasing trips by 1?Which brand has the highest frequency?Source: Cross-Outlet Facts, Period: 52 WEEKS ENDING 07/27/13 l Retailer: TOTAL OUTLETS l Market: TOTAL OUTLETS- CAN

19 4.4% .:

4.4%

265% .

80% 6

100% .: 2013 12 15

: 2013 10 15

Potential Actions

: 2014 5 19: 2014 6 1 ()Robust innovation plans for convenience 35% POS .

POS 10% .

POS .

.

POS

Chart1188.5186.9172.8165128.8116.3102.659.558.549.138.637.922.22216.8

Series 1

Sheet1Series 1CSDs188.5Energy Drinks186.9Milk172.8Snk Food165.0Chocolate128.8J&D116.3Water102.6Gum59.5Candy58.5Auto49.1Frz Confec38.6Meat37.9Lighters22.2Bread22Nuts & Seeds16.8

Chart197.49895.795.594.292.591.387.785.983.6

Series 1

Sheet1Series 1BREAD97.4Snack Food98CHOCOLATE95.7CHEESE95.5BATHROOM TISSUE94.2FROZEN DINNERS AND ENTREES92.5FLAVOURED SOFT DRINKS91.3DISHWASHING PRODUCTS87.7LAUNDRY DETERGENTS85.9FACIAL TISSUES83.6

Chart1349489296291267260

Unit Lift - Everyday Chocolate -

Sheet1PROMO CONDITION Unit Lift - Everyday Chocolate349489296291267260

Sheet1

Unit Lift - Everyday ChocolateSales Lift - Everyday Chocolate

Chart1277331693367356535653862396139614060425845554555455547534951495151495446544655455545564457436040633763377624

HotSpex

Sheet1HotSpexCoffee-out2773Soft drinks-pop3169Vitamins3367Cold medication3565Potato chips3565Pain relievers3862Ice cream3961Pre-paid mobile phone3961Coffee-instant4060Liquid dish detergent4258Mastercard credit card4555Stomach remedies4555Tooth paste4555Hand bar soap4753Cosmetics4951Household cleaning products4951Juice5149Airline tickets5446Frozen food (dinner & pizza)5446Gum5545Jam5545Baby bottles5644Fast food burger5743Vodka6040Beer6337Smartphones6337Premium Chocolate7624

Chart10.070.280.330.230.080.01

Duration of visits1 7%1-2 28%3-4 33%5 23%6-15 8%15 1%

Sheet1Duration of visitsLess than 1 minute7%1-2 minutes28%3-4 minutes33%5 minutes23%6-15 minutes8%Longer than 15 minutes1%To resize chart data range, drag lower right corner of range.

Chart10.670.510.240.22

Total Visited

Sheet1Total Visited 67%51% 24%/22%

Chart10.320.30.220.16

Drivers of Purchase 32% 30%22% 16%Longer than 15 minutes 1%

Sheet1Drivers of PurchaseNoticed Frt Cash32%Noticed Display30%Promo22%Good Price16%To resize chart data range, drag lower right corner of range.