Q4 2025 Nestle SA Earnings Call - Press Conference

February 19, 2026

Is Kristoff speaking. I'm joined by Philip naratil and on the months this morning I trust. You have all had a chance to watch the investor Q&A this morning at the presentation. So we will move straight into your questions. But before we begin, please take a moment to review the disclaimer on your screen.

Christoph: This is Christoph speaking. I'm joined by Philipp Navratil and Anna Manz this morning. I trust you have all had a chance to watch the investor Q&A this morning and the presentation. We will move straight into your questions. Before we begin, please take a moment to review the disclaimer on your screen. Thank you. Now, if you would like to ask a question, please raise your hand on your Zoom feature. When I call your name, you can unmute yourself and go ahead with your question. Once your question has been answered, you will be automatically put back on mute. To ensure that everyone has a chance to ask a question and to contribute to this session, please limit yourself to two questions at a time. Now, we're waiting for the first question to come in. First question is from Matthias Benz, the NZZ.

Christoph Meier: This is Christoph speaking. I'm joined by Philipp Navratil and Anna Manz this morning. I trust you have all had a chance to watch the investor Q&A this morning and the presentation. We will move straight into your questions. Before we begin, please take a moment to review the disclaimer on your screen. Thank you. Now, if you would like to ask a question, please raise your hand on your Zoom feature. When I call your name, you can unmute yourself and go ahead with your question. Once your question has been answered, you will be automatically put back on mute. To ensure that everyone has a chance to ask a question and to contribute to this session, please limit yourself to two questions at a time. Now, we're waiting for the first question to come in. First question is from Matthias Benz, the NZZ.

Thank you.

Now, if you would like to ask a question, please raise your hand on your Zoom feature.

When I call your name, you can unmute yourself and go ahead with your question.

And once your question has been answered, you will be automatically, put back on mute.

To ensure that everyone has a chance to ask a question. And to contribute to this session, please limit yourself to 2 questions at a time.

Now we're waiting for the first question to come in.

First question is from Matias Spence.

The answer set.

Good morning Matias. Please go ahead.

Can you hear me? Yes, perfectly

Right.

So thanks for your time. Um, I have a question on this preso

As a Nestle Health Sciences, uh, will disappear as a as a separate unit.

Christoph: Good morning, Matthias, please go ahead.

Christoph Meier: Good morning, Matthias, please go ahead.

Matthias Benz: Good morning. Can you hear me?

Christoph: Yes, perfectly.

Christoph Meier: Yes, perfectly.

Matthias Benz: Great. Thanks for your time. I have a question on Nespresso. As Nestlé Health Science will disappear as a separate unit, should that not also mean that Nespresso will actually disappear as a globally managed business, because it's integrated into the new coffee pillar? The second question would be, as you now focus more on these four pillars of product categories, will there be new heads for these four pillars? Thanks.

Uh, should that not also mean that this price? So we will actually disappear as a globally managed business, uh, because it's integrated into the new, uh, coffee pillar.

And uh, the section the second question would be uh, as you know, focus more on these 4 pillars of product categories. Will there be a new heads, uh, for these 4 pillars?

Thanks.

Philipp Navratil: Yeah. I'll take those, Matthias. Good, good to have you. Look, on Nespresso, and should that be folded in some way to coffee? Look, no, it's not the case. You know, Nespresso, if you look at it, Nespresso has a very distinct business model in that sense. Nespresso is a direct-to-consumer business. Since the very beginning, it's 40 years now, this year in Nespresso, and since the very beginning, it's a direct-to-consumer business. It is a business that is based on a system, and so there are many reasons to keep this business as a globally managed business.

Yeah, I'll take those, uh, Matias good. Good to have you. Um, look on on, uh, on espresso. Um, and and, and, and show that, uh, we folded in, in some way to Coffee. Um, look, no, it's, it's, it's not the case, um, you know, espresso, if, if, if you look at it in espresso, has a, a very distinct business model, uh, in that sense. So miss president is a direct to Consumer business, since the very beginning, its 40 years. Now, this year in espresso and, and since the very beginning, it's a diet to Consumer business. Um, it is a business that uh, is

Philipp Navratil: Also, if you look at it, how it is set up from the very beginning, all of the production is here in Switzerland. We drive a successful global, true global brand that looks the same in each and every market from Switzerland. For the time being, we don't see any reason to integrate that. There is anyway very good collaboration with coffee already. If you look at it, what we have launched, you know, in the Nespresso factories, it produce also the capsules that are branded on the Starbucks and on the Nescafé.

Matthias Benz: Sciences will disappear as a separate unit. Should that not also mean that Nespresso will actually disappear as a globally managed business, because it's integrated into the new coffee pillar? And the second question would be, as you now focus more on these four pillars of product categories, will there be new heads for these four pillars? Thanks.

Speaker #1: Science is, will disappear as a, a separate unit, should that not also mean that NESTPRESSO will, actually disappear as a globally managed business, because it's integrated into the new, coffee pillar?

Speaker #1: And, the section, the second question would be, as you now focus more on these four pillars of product categories, will there be, new heads, for these, four pillars?

Based on a system. And and, and so there's uh, there's many reasons to keep this business as a globally, managed business. Uh, also if you look at it, how it is set up from the very beginning, all of the production is, is here in Switzerland. Uh, and then, uh, we drive, uh, successful Global true Global brand, uh, that looks the same in in each and every Market, um, from Switzerland. So for the time being, we don't see any any reason to to integrate that. And then there is anyway, very good collaboration with coffee already. If you look at it, what we have launched, uh, you know, in the in the Nespresso Factory is a producer. Also the capsules that are branded on the Starbucks and on the NES Cafe. Uh, and so there is obviously already an overlap that we that we collaborate from the Nespresso, part with the broader coffee business. Um, to drive again, a category growth, not only the brand Nespresso but the category which is a portion coffee, uh, which we are by far the number 1. Uh, the number 1 company in espresso is the number.

Philipp Navratil: There is obviously already an overlap that we collaborate from the Nespresso part with the broader coffee business to drive, again, a category growth, not only the brand Nespresso, but the category, which is portion coffee, which we are by far the number one, the number one company, and Nespresso is the number one brand in this space. That's on Nespresso. Then the four pillars. Look, now the four pillars, they don't have a P&L responsibilities. The four pillars, you can look at them as strategic business units, as we have had up to now. There will be a head of the coffee strategic business unit.

number 1 brand in this in in this space uh so as soon as press and then the 4S

Look, know the 4S. They're they, they, they don't have. Um,

Speaker #1: Thanks.

Speaker #2: Yeah. I'll take those, Matthias could, good to have you. look, on, on, on NESTPRESSO, and, and, and should that, be, folded in, in some way to coffee, look, no, it's, it's, it's not the case.

Philipp Navratil: Yeah, I'll take those, Matthias, good, good to have you. Look, on Nespresso, and should that be folded in some way to coffee? Look, no, it's not the case. You know, Nespresso, if you look at it, Nespresso has a very distinct business model in that sense. So Nespresso is a direct-to-consumer business. Since the very beginning, it's 40 years now, this year in Nespresso, and since the very beginning, it's a direct-to-consumer business. It is a business that is based on a system and so there is many reasons to keep this business as a globally managed business.

A p&l responsibility. This is a 4 pillars. Uh, you can you can look at them as as strategic business units as we, as we have had, um, up to now. So there will be a head of the coffee strategic business unit. There is there, there's 1 person in, in, in place, that's the position that I have had, uh, in the past. Um, there is, uh, um, ahead of the screen.

Speaker #2: you know, NESTPRESSO, if, if, if you look at it, NESTPRESSO has a, a, a very distinct business model, in that sense. So NESTPRESSO is a direct-to-consumer business.

Speaker #2: Since the very beginning, it's 40 years now, this year, NESTPRESSO, and, and since the very beginning, it's a direct-to-consumer business. it is a, a business that, is, is based on a system and, and, and so there is, there is many reasons to keep this business, as a globally managed business.

Philipp Navratil: There is, there, there is one person in, in, in place, the position that I have had in the past. There is a head of the strategic business unit for pet food. There will be a head of the strategic business unit for the unified nutrition one, and then on food and snacks, each one of those has a head of the strategic business units. The head of all of that is David Rennie, who leads strategic business units and sales and marketing at Nestlé. It's not, not a, not a case to build a new, a new structure around this. It's, it's about driving clarity and focus for driving growth in the company.

Philipp Navratil: Also, if you look at it, how it is set up from the very beginning, all of the production is here in Switzerland. And then, we drive a successful global, true global brand, that looks the same in each and every market, from Switzerland. For the time being, we don't see any reason to integrate that. And then there is anyway, very good collaboration with coffee already. If you look at it, what we have launched, you know, in the Nespresso factories, we produce also the capsules that are branded on the Starbucks and on the Nescafé.

Speaker #2: Also, if you look at it, how it is set up from the very beginning, all of the production is here in Switzerland. And then, we drive a successful global, true global brand, that looks at the market from Switzerland.

Strategic business really for pet food. There will be uh ahead of the Strategic business unit for the unified nutrition 1 and then on food and snacks. In each 1 of those has a has a head office strategic business units and and the head of all of that is David Rennie uh, who leads strategic business units, and sales and and marketing at uh, at Nestle. So it's not not a, not a case, to build a new, a new structure around this. It's it's about driving Clarity and focus. Uh,

For for driving growth, uh, in in, in the company.

Thanks a lot. The next question is from Alexander, Morrow. Reuters, Alex Bri. Go ahead.

Speaker #2: So, for the time being, we don't see any, any reason to integrate that. And then there is, anyway, very good collaboration with Coffee already.

Speaker #2: If you look at it, what we have launched, you know, in the, in the NESTPRESSO factory, is we produce also, the capsules that are branded under Starbucks and under Nescafé.

Christoph: Thanks a lot. The next question is from Alexander Marrow, Reuters. Alex, please go ahead.

Christoph Meier: Thanks a lot. The next question is from Alexander Marrow, Reuters. Alex, please go ahead.

Take my question. It's just on the uh sale of the remaining ice cream, uh businesses. Um can you give an idea of how much how valuable these assets are that you're looking to sell? Um,

Speaker #2: and so there is obviously already an overlap that we, that we collaborate from the NESTPRESSO, part, with the broader coffee business, to drive, again, a category growth, not only the brand NESTPRESSO, but the category, which is, portion coffee, which we are, by far the number one, the number one company in NESTPRESSO is the, is the number one brand in this, in, in this space.

Philipp Navratil: And so there is obviously already an overlap that we collaborate from the Nespresso part with the broader coffee business to drive, again, a category growth, not only the brand Nespresso, but the category, which is portion coffee, which we are by far the number one, the number one company, and Nespresso is the number one brand in this space. So that's on Nespresso. And then the four pillars. The four pillars, they don't have a P&L responsibilities. The four pillars, you can look at them as strategic business units, as we have had up to now. So there will be a head of the coffee strategic business unit.

Alexander Marrow: Hi there. Thanks for taking my question. It's just on the sale of the remaining ice cream businesses. Can you give an idea of how valuable these assets are that you're looking to sell? Any more clarity on the sort of timing of a deal. Does this mean that you're not planning to exit the JV with Froneri, or are you doubling down on that? Thank you.

and any more clarity on the sort of timing of a deal um and does this mean that you're not planning to exit the JV with fur

Yeah, I can give you. I can give you some of those, uh, some of those numbers. Uh, look the ice cream business. We have said it's uh, it's in 6 markets.

Speaker #2: so that's the NESTPRESSO. And then the four pillars, look, no, the four pillars, they're, they're, they, they don't have, a P&L responsibility. So the four pillars, you can, you can look at them as, as strategic business units.

Speaker #2: As we, as we have had, up to now. So there will be, ahead of the coffee Strategic Business Unit, there is, there, there is one person in, in, in place that's the position that I have had, in the past.

Philipp Navratil: Yeah, I can give you, I can give you some of those, some of those numbers. Look, the ice cream business, we have said it's, it's in 6 markets. It's, it's a shy of CHF 1 billion in terms of, in terms of sales. We'll, we'll, we'll get that it's a staggered approach. Because it's 6 markets in, in, in, in, in different geographies, we will, we will get those integrated into, into Froneri during this year and the beginning of next year. This is, this is what, what the plan is. There is, there is, there is no, there is no plans to exit the JV with Froneri. We're really happy with the performance that Froneri is driving.

Philipp Navratil: There is one person in place, the position that I have had in the past. There is a head of the strategic business unit for pet food. There will be a head of the strategic business unit for the unified nutrition one, and then on food and snacks, and each one of those has a head of the strategic business units. And the head of all of that is David Rennie, who leads strategic business units, sales, and marketing at Nestlé. So there's not a case to build a new structure around this. It's about driving clarity and focus for driving growth in the company.

Speaker #2: There is, ahead of the strategic business unit for Pet Food, there will be, ahead of the strategic business unit for the Unified Nutrition one.

Speaker #2: And then on food and snacks, in each one of those has a, has ahead of the strategic business units. And, and the head of all of that is David Renney, who leads, strategic business units and sales and, and marketing at, at NESTLE.

Speaker #2: So there's not, not a, not a case to build a new, a new structure around this. It's, it's about driving clarity and focus for, for driving growth in, in, in the company.

Uh, it's, uh, this is shy of 1 billion Swiss Francs, in terms of, uh, in terms of sales. And and we'll, we'll, um, we'll get uh, that it's a staggered approach, so, because it's 6 markets in, in, in, in, in, in different geographies. Um, we will, we will get, uh, those, uh, integrated into into forreri during this year, in the beginning, of next year. Um, this is, this is what, uh, what the plan is and and there is there is there is no, there is no plans to exit the JW with fur. We're really happy with the performance uh that from here is driving and uh selling selling the ice, the remaining ice cream, business is of Nest into into. Fur is, is our strong belief that fur is the right owner for those businesses and and uh, will drive a better performance that we will do going forward. And, uh, and and we

Half of half of for an air and we're really happy with the the job they're doing so far.

Philipp Navratil: Selling the remaining ice cream business of Nestlé into Froneri is our strong belief that Froneri is the right owner for those businesses and will drive a better performance that we will do going forward. We own half of Froneri, and we are happy with the job they're doing so far.

Speaker #1: Thanks a lot. The next question is from Alexander Marrow, Reuters. Alex, please go ahead.

Operator: Thanks a lot. The next question is from Alexander Merro, Reuters. Alex, please go ahead.

Operator: Thanks a lot. The next question is from Alexander Marrow, Reuters. Alex, please go ahead.

Very good. The next question is from IU Finance, on that draft, Evo. Please go ahead.

Speaker #3: Hi there. Thanks for taking my question. It's just on the, sale of the remaining ice cream, businesses. can you, give an idea of how much, how valuable these assets are that you're looking to sell, and any more clarity on the sort of timing of a deal?

Alexander Marrow: Hi there. Thanks for taking my question. It's just on the sale of the remaining ice cream businesses. Can you give an idea of how much--how valuable these assets are that you're looking to sell? And any more clarity on the sort of timing of a deal. And does this mean that you're not planning to exit the JV with Froneri, or are you doubling down on that? Thank you.

Good morning everyone. Thank you.

So my question is Also regarding the, the new strategic pillars. Um,

Christoph: Very good. The next question is from Ivo Ruch, Finanz und Wirtschaft. Ivo, please go ahead.

Christoph Meier: Very good. The next question is from Ivo Ruch, Finanz und Wirtschaft. Ivo, please go ahead.

Speaker #3: And does this mean that you're not planning to exit the JV with Froneri? Or are you doubling down on that? Thank you.

Ivo Ruch: Good morning, everyone. Thank you. My question is also regarding the new strategic pillars. Can we assume now that your assessment of the portfolio is now kind of finished, or do you have further adjustments in mind, given there are still some weak businesses in your portfolio? Should we assume that, I mean, looking forward, you're constantly reviewing all of the businesses as you did in the past couple of weeks?

Speaker #2: Yeah, I can give you, I can give you some of those, some of those numbers. look, the ice cream business, we have said it's, it's in six markets.

Philipp Navratil: Yeah, I can give you some of those numbers. Look, the ice cream business, we have said it's in six markets. It's this is shy of CHF 1 billion in terms of sales, and we'll get... That is a staggered approach, so because it's six markets in different geographies, we will get those integrated into Froneri during this year and the beginning of next year. This is what the plan is. And there is no plans to exit the JV with Froneri. We're really happy with the performance that Froneri is driving.

can we assume now that that your assessment of the portfolio is now kind of finished or, or do you have further, adjustments in mind given there are some still, some weak businesses in in your portfolio, or should we assume that? I mean, looking forward to your constantly reviewing all of the of the of the businesses as you did in the past couple of weeks.

Speaker #2: It's, this is shy of 1 billion Swiss francs in terms of, in terms of sales. And, and we'll, we'll, we'll get that, it's a staggered approach.

Speaker #2: So because it's six markets in, in, in, in, in different geographies, we will, we will get, those, integrated into, into Froneri, during this year and the beginning of next year.

Philipp Navratil: Yeah, look, it's a, it's a good question. Look, it, it's, it's, it's never finished, is it? What we are doing, I mean, we're not, we're not constantly looking at it, but periodically, with Anna and the team and the board, we're looking obviously at the whole portfolio and look if we need to take action. What we are doing is, is quite substantial if you look at it, you know, ice cream, we have mainstream DMS that will move forward soon. Waters, we have announced that has now been launched. All of these processes, obviously, it's, it's quite a distraction for the company. For time being, there's nothing new to announce.

Speaker #2: this is, this is what, what the plan is. And, and there is, there is, there is no, there is no plans to exit the JV with Froneri.

Speaker #2: We're really happy with the performance, that, Froneri is driving. And, selling, selling the ice, the remaining ice cream businesses of NESTLE into, into Froneri is, is our strong belief that, Froneri is the right owner for those businesses and, and, will drive a better performance that we will do going forward.

Yeah, look, it's it's a good question. Look it, it's it's it's it's never finished is it? And, and, and um, what we are doing, I mean, we're not we're not constantly looking at it but periodically with Anna and the team and, and the board we're looking obviously, at the whole portfolio. And, and, and look, if, if, um, if we need to take action, what we are doing is, is quite substantial. If you look at it, uh, you know, ice cream, we have mainstream VMS that uh, that will move forward soon Waters, we have announced that that is is now has now been launched uh, and and all of these processes, obviously it's it's quite a distraction for the company. So, for time being, there's nothing new to announce. Uh, we

Philipp Navratil: Selling the remaining ice cream business of Nestlé into Froneri is our strong belief that Froneri is the right owner for those businesses, and we own half of Froneri, and we are happy with the job they're doing so far.

Speaker #2: And, and, and we own half of, half of Froneri, and we're, ha—we're happy with the job they're doing so far.

Will periodically review um our our portfolio and and and we will shape it um to to make sure we have uh the right, the right profile to deliver the growth. But the company is really what what we're focusing on at the moment is is, is truly on on growth

Philipp Navratil: We will periodically review our portfolio and we will shape it to make sure we have the right profile to deliver the growth. The company is really what we're focusing on at the moment is truly on growth, which we believe is the largest opportunity we have to drive shareholder value going forward. You know, each of those processes is a distraction, so we take them step by step. For time being, there's nothing new to announce, and we're periodically reviewing where we need to review, and we'll take the decisions quickly, without, you know, without a lot of, you know, with a data-based approach, if we need to action something.

Speaker #1: Very good. The next question is from Ivo Ruch, Finanz und Wirtschaft. Ivo, please go ahead.

Operator: Very good. The next question is from Ivo Ruch, Finanz und Wirtschaft. Ivo, please go ahead, Ivo.

Speaker #3: Good morning, everyone. Thank you. So, my question is also regarding the, the new strategic pillars. can we, assume now that, that your assessment of the portfolio is now kind of finished, or, or do you have, further, adjustments in mind, given there are some, still some weak businesses in, in your portfolio?

Matthias Benz: Good morning, everyone. Thank you. So my question is also regarding the new strategic pillars. Can we assume now that your assessment of the portfolio is now kind of finished, or do you have further adjustments in mind, given there are still some weak businesses in your portfolio? Or should we assume that, I mean, looking forward, you're constantly reviewing all of the businesses as you did in the past couple of weeks?

Ivo Ruch: Good morning, everyone. Thank you. So my question is also regarding the new strategic pillars. Can we assume now that your assessment of the portfolio is now kind of finished, or do you have further adjustments in mind, given there are still some weak businesses in your portfolio? Or should we assume that, I mean, looking forward, you're constantly reviewing all of the businesses as you did in the past couple of weeks?

Uh, which we believe is. The is, is the largest opportunity? We have to drive shareholder value going forward? And and, you know, each of those processes is, is a distraction. So we, we, we take them step by step, but for time being, there's nothing new, uh, to announce. And, and we're, we're periodically reviewing where we need to review. And we'll take the decisions, uh, quickly without, uh, you know, without, uh, a lot of, uh,

uh, you know, with with the data based approach, if we need to uh action something

Perfect, we'll be moving to CNN Hannah, CI from CNN.

Please hang up. Go ahead.

Hi there. Thanks, can you hear me?

Speaker #3: Or should we assume that, I mean, looking forward, you're constantly reviewing all of the, of the, of the businesses as you did in the past couple of weeks?

Christoph: Perfect. We're moving to CNN. Hanna Ziady from CNN. Please, Hanna, go ahead.

Christoph Meier: Perfect. We're moving to CNN. Hanna Ziady from CNN. Please, Hanna, go ahead.

Yes, sir. We we can hear you. Thank you, thank you. Um, I'm afraid I didn't I wasn't able to join the investor call this morning so apologies, if if this will be a repetition for you. But um, 2 questions if I may 1 is on ice cream, just whether the

Speaker #2: Yeah, look, it's, it's a good question. Look, it's, it's, it's, it's never finished, is it? And, and, and, what we are doing, I mean, we're not, we're not constantly looking at it, but periodically, with Anna and the team and, and the board, we're looking obviously at the whole portfolio and, and, and, and look if, if, if we need to take action.

Philipp Navratil: Yeah, look, it's a good question. Look, it's never finished, is it? And what we are doing, I mean, we're not constantly looking at it, but periodically with Anna and the team and the board, we're looking obviously at the whole portfolio and look if, if we need to take action. What we are doing is quite substantial if you look at it. You know, ice cream, we have mainstream VMS that will move forward soon. Waters, we have announced that that is now, has now been launched. And all of these processes, obviously, it's quite a distraction for the company. So for the time being, there's nothing new to announce.

Hanna Ziady: Hi there. Thanks. Can you hear me?

Philipp Navratil: Yes, ma'am.

Hanna Ziady: Great.

Philipp Navratil: We can hear you.

Hanna Ziady: Thanks. Thank you. I'm afraid I wasn't able to join the investor call this morning, so apologies if this will be a repetition for you. Two questions, if I may. One is on ice cream, just whether the sort of push by consumers towards, you know, healthier lifestyles and the rise of these GLP-1 drugs, does that have anything to do with the sale of this, or does the sort of sale process long predate that? Can you just comment on, you know, whether that's played any role in your thinking? Then just one question, if I may, on the infant formula recalls.

Speaker #2: What we are doing is, is quite substantial. If you look at it, you know, ice cream, we have mainstream VMS that will move forward soon.

Uh sort of pushed by consumers towards, you know, healthier Lifestyles and the rise of these GT1 drugs, um, has, does that have anything to do with the sale of this or does? Does the sort of sale process long predate that can you just comment on, you know, whether that's played any role in your thinking? And then just 1 question if I may on the, uh, infant formula recalls, I realized that

Speaker #2: Waters, we have announced that—that is, it is now, has now been launched. And all of these processes, obviously, it's quite a distraction for the company.

Speaker #2: So for the time being, there's nothing new to announce. we will periodically review, our, our portfolio and, and, and we will shape it, to, to make sure we have, the right, the right profile to deliver the growth.

Philipp Navratil: We will periodically review our portfolio and we will shape it to make sure we have the right profile to deliver the growth. But what the company is really focusing on at the moment is truly on growth, which we believe is the largest opportunity we have to drive shareholder value going forward. You know, each of those processes is a distraction, so we take them step by step. But for the time being, there's nothing new to announce, and we're periodically reviewing where we need to review, and we'll take the decisions quickly, without you know, without a lot of you know, with a data-based approach if we need to action something.

You know, there's an ongoing process there. Um at least in France which with French Health authorities investigating the deaths of 3, infants, who were believed to have consumed. Uh,

The, the record products.

Hanna Ziady: I realize that, you know, there's an ongoing process there, at least in France, which, with French health authorities investigating the deaths of 3 infants who were believed to have consumed the recalled product. Can you just speak to, you know, is Nestlé in contact with French health authorities? Is the company implicated, potentially? I realize there's no link yet been made, but was it Nestlé's products that are implicated or another company's products? Then just, just any, you know, any new developments with regard to the formula recall, and any ongoing investigations would be great. Thank you.

Speaker #2: But the company is really what, what we're focusing on at the moment is, is, is truly on, on growth, which we believe is the, is, is the largest opportunity we have to drive shareholder value going forward.

Speaker #2: And, and, you know, each of those processes is a distraction. So we take them step by step. But for the time being, there's nothing new to announce.

Speak to, you know, is nestled in contact with with French Health authorities, is the company implicated potentially. I realized there's no link yet been made but um was it nestled products that are implicated or another company's products? Um, and then just just any, you know, any new developments with regard to the

Speaker #2: And we're periodically reviewing where we need to review, and we'll take the decisions quickly without, you know, without a lot of, you know, with the data-based approach, if we need to action something.

Speaker #1: Perfect. We'll be moving to CNN. Hannah Siadi from CNN. Please, Hannah, go ahead.

Operator: Perfect. We'll be moving to CNN. Hannah Ziady from CNN. Please, Hannah, go ahead.

Operator: Perfect. We'll be moving to CNN. Hanna Ziady from CNN. Please, Hannah, go ahead.

Philipp Navratil: Yeah, good. Thanks. Thanks for the question, Hannah. Look, on ice cream, no, it has nothing to do with GLP-1. You know, interestingly enough, the ice cream category shows still, you know, mid-single-digit growth consistently. That category has not yet been affected. I believe, while GLP-1 patients, they, they, they might, you know, eat less ice cream, they will, they will, they will change how they, how they will eat it and how often. Froneri is focused on that category and will be the best owner. GLP has not been a thought for us. It's really we have six remaining businesses.

Speaker #4: Hi there. Thank you. Can you hear me?

Hanna Ziady: Hi there. Thanks. Can you hear me?

Speaker #1: Yes, we can hear you.

Philipp Navratil: Yes, ma'am.

Hanna Ziady: Great.

Philipp Navratil: We can hear you.

Speaker #4: Great, thanks. Thank you. I'm afraid I didn't—I wasn't able to join the investor call this morning, so apologies if this will be a repetition for you.

Hanna Ziady: Thanks. Thank you. I'm afraid I wasn't able to join the investor call this morning, so apologies if this will be a repetition for you. But two questions, if I may. One is on ice cream, just whether the sort of push by consumers towards, you know, healthier lifestyles and the rise of these GLP-1 drugs does that have anything to do with the sale of this, or does the sort of sale process long predate that? Can you just comment on, you know, whether that's played any role in your thinking? And then just one question, if I may, on the infant formula recalls.

Speaker #4: But, two questions, if I may. One is on ice cream—just whether the sort of push by consumers towards, you know, healthier lifestyles and the rise of these GLP-1 drugs, has—does that have anything to do with the sale of this, or does the sort of sale process predate that?

The formula recall, um, and any invest ongoing, investigations would be great. Thank you. Yeah, good, thanks. Thanks for the question. Hannah. Um, look, uh, on on ice cream. No. It has nothing to do with glp1. You know, interestingly enough, the the ice cream category, uh, shows, uh, still, you know, mid single digit, growth consistently. Um, so that category has not yet been, uh, been affected and and I believe, um, while gp1 patients they they they might uh, you know, eat less ice cream, they will, they will, they will change how they, how they will, uh, eat it. And, and how often and and for Neri is is uh, is focused on that category and will be the best owner. But glp has not been a thought for us. It's really, we have 6 remaining businesses, we have sold all the rest of for Neri and those 6, um, have been or are a distraction for us. If you look at the rest of our portfolio and that that was behind it. And we believe for now, we will be the, the, the the right company to drive the right focus in the drive, the right marketing to drive this uh, to to to grow.

Speaker #4: Can you just comment on, you know, whether that's played any role in your thinking? And then just one question, if I may, on the infant formula recalls.

Philipp Navratil: We have sold all the rest to Froneri, those six have been or are a distraction for us if you look at the rest of our portfolio, and that was behind it. We believe Froneri will be the right company to drive the right focus and drive the right marketing to drive this to growth. Not GLP-1 connected. Look, on your question on infant formula. Look, first of all, we obviously we're saddened by the news that, you know, three babies have died. There is no link today to any infant formula product, nor to Nestlé nor to anyone else's.

So not g glp1. Connected. Look on on the on your, your question on on infant formula.

look, um,

Speaker #4: I realize that, you know, there's an ongoing process there. At least in France, which, with French health authorities, is investigating the deaths of three infants, who were believed to have consumed the, the recalled products.

Hanna Ziady: I realize that, you know, there's an ongoing process there, at least in France, which with French health authorities investigating the deaths of three infants who were believed to have consumed the recalled product. Can you just speak to, you know, is Nestlé in contact with French health authorities? Is the company implicated potentially? I realize there's no link yet been made, but whether Nestlé's products that are implicated or another company's products, and then just any, you know, any new developments with regard to the formula recall, and any ongoing investigations would be great. Thank you.

Speaker #4: Can you just speak to, you know, is Nestlé in contact with, with French health authorities? Is the company implicated potentially? I realize there's no link yet been made, but is it Nestlé's products that are implicated, or another company's products?

Speaker #4: And then just, just any, you know, any new developments with regard to the formula recall, and any ongoing investigations would be great.

Philipp Navratil: There is an investigation ongoing, and we are, as far as we need, we have not been contacted by the authorities, and we'll obviously collaborate and inform as we go. Today there is no clear link, and Nestlé has not been implicated. As I have said before, our main focus is quality, safety, and the health of... Quality of our products and the health and safety of our consumers, and that has always been at the center of what we do. Also, during that recall, as we were the first in the industry to recall our products, and the industry followed suit almost a month, a month later. We were always guided by the principle of consumer safety at the center of everything we do.

Speaker #4: Thank you.

Speaker #2: Yeah, good. Thanks. Thanks for the questions, Hannah. look, on, on ice cream, no, it has nothing to do with GLP-1. You know, interestingly enough, the, the ice cream category, shows, still, you know, mid-single-digit growth consistently.

Philipp Navratil: Yeah, good. Thanks. Thanks for the question, Hannah. Look, on ice cream, no, it has nothing to do with GLP-1. You know, interestingly enough, the ice cream category shows still, you know, mid-single digit growth consistently. So that category has not yet been affected. And I believe, while GLP-1 patients, they might, you know, eat less ice cream, they will change how they will eat it and how often. And Froneri is focused on that category and will be the best owner. But GLP has not been a thought for us. It's really we have six remaining businesses.

First of all, we we, we obviously, uh, we're, we're saddened by the news that, uh, you know, 3 3 babies have, uh, have have died. There is no link. Uh, today, uh, to, uh, any infant formula product, no, nor to nestin or to anyone else's. There is an investigation ongoing and, uh, we are as far as we, we, we need, we have not been contacted by, by the authorities, and, and we'll obviously collaborate and, and, and inform as we go over today. There is no clear link and and Nestle has not been implicated. And, um, as I have said, before our um, main, um, focus is, uh, quality safety and the health of quality of our products, and the health, and safety of our consumers and that has always been at the center of what we do. Also during that the this recall, as we were the first, uh, in the industry to recall our products and and the industry followed suit almost a month, a month later. So we will always Guided by the principle of

Speaker #2: So, that category has not yet been, been affected. And, and I believe while GLP-1 patients, they, they, they might, you know, eat less ice cream, they will, they will, they will change how they, how they will eat it.

consumer safety at um, at the center of everything we do.

The next question is from Thomas Osment awp.

Good morning, Thomas.

Speaker #2: And, and how often. And, and Froneri is, is, is focused on that category and will be the best owner. But GLP has not been thought for us.

Thomas, you can unmute yourself.

Uh, yes. Good morning. Can you hear me?

Speaker #2: It's really that we have six remaining businesses. We have sold all the rest to Froneri. And those six have been, or are, a distraction for us, if you look at the rest of our portfolio.

Philipp Navratil: We have sold all the rest of Froneri, and those six have been or are a distraction for us, if you look at the rest of our portfolio, and that, that was behind it. We believe Froneri will be the right company to drive the right focus and drive the right marketing to drive this to growth. So not GLP-1 connected. Look, on your question on infant formula. Look, first of all, we obviously we're saddened by the news that you know three babies have died. There is no link today to any infant formula product, nor to Nestlé nor to anyone else's.

Christoph: The next question is from Thomas Oswald, AWP. Good morning, Thomas. Thomas, you can unmute yourself.

Christoph Meier: The next question is from Thomas Oswald, AWP. Good morning, Thomas. Thomas, you can unmute yourself.

Speaker #2: And that, that was behind it. And we believe Froneri will be the, the, the, the right company to drive the right focus and the drive, the right marketing to drive this, to, to, to growth.

Um, hello again, thanks for taking the question. I have a follow up to the um, infant formula recall. Uh, are you taking any legal action, against your supplier in China?

Speaker #2: So not GL, GLP-1, connected. Look on, on the, on your, your question on, on, infant formula. Look, first of all, we, we, we obviously, we're, we're saddened by the news that, you know, three, three babies have, have, have died.

Um, and maybe did you have you made any provisions for potentially legal cases?

Anna Manz: Yes, good morning.

Thomas Oswald: Yes, good morning.

Christoph: Good morning.

Christoph Meier: Good morning.

Anna Manz: Can you hear me? Hello again. Thanks for taking question. I have a follow-up to the infant formula recall. Are you taking any legal action against your supplier in China? Maybe, have you made any provisions for potential legal cases, which you're maybe facing?

Thomas Oswald: Can you hear me? Hello again. Thanks for taking question. I have a follow-up to the infant formula recall. Are you taking any legal action against your supplier in China? Maybe, have you made any provisions for potential legal cases, which you're maybe facing?

Um, put your maybe facing.

Speaker #2: There is no link today to any infant formula product—no, nor to Nestlé, nor to anyone else's. There is an investigation ongoing. And we are, as far as we— we need, we have not been contacted by the authorities.

Yeah, thank you. Uh, Thomas, look. We we will, we will obviously reserve the right to take legal actions. We have not done. We have not done that so far. Focus of the company is, uh, is has been on the recall and is now on replenishing, the stocks,

Philipp Navratil: There is an investigation ongoing, and as far as we know, we have not been contacted by the authorities, and we'll obviously collaborate and inform as we go. But today there is no clear link, and Nestlé has not been implicated. As I have said before, our main focus is quality, safety, and the health of... quality of our products and the health and safety of our consumers, and that has always been at the center of what we do. Also, during this recall, as we were the first in the industry to recall our products, and the industry followed suit almost a month later. So we were always guided by the principle of consumer safety at the center of everything we do.

Philipp Navratil: Yeah. Thank you, Thomas. Look, we, we will, we will obviously reserve the right to take legal actions. We have not done, we have not done that so far. Focus of the company has been on the recall and is now on replenishing the stocks. That is where we're focused on, and then we will, we will see what needs to be done on the legal side. We have not done any, any provision so far. We'll, we'll work that through as, as we need, but focus is really on, on getting the market restocked. That, that is where we're, we're, we're focused on at the, at the moment.

Speaker #2: And, and we'll obviously collaborate and, and, and inform as we go. But today, there is no clear link. And, and NESTLE has not been implicated.

Um, that is where we focused on. And then we will, we will see what needs to be done on the legal side and, um, and, and, and we have not done any any provisions so far. So we'll, we'll work that through as as we need. But focus is really on on, um, on getting the market restocked, um, that that is where we're we're, we're focused on at the moment.

Speaker #2: And, as I have said before, our, main, focus is, quality safety and the health of, quality of our products and the health and safety of our consumers.

An additional question from Madeline speed.

Financial Times. Good morning. My name is

Hi, good morning.

Speaker #2: And that has always been, at the center of what we do. Also, during that, the, this recall, as we were the first, in the industry to recall our products.

um,

I wanted to ask what the focusing on for businesses means.

In practice.

Speaker #2: And, and the industry followed suit, almost a month, a month later. So we will always guide it by the principle of consumer safety at, at the center of everything we do.

Christoph: An additional question from Madeline Speed, Financial Times. Good morning, Madeline.

Christoph Meier: An additional question from Madeline Speed, Financial Times. Good morning, Madeline.

Uh, what in concrete terms will that change?

and then,

Second question is on the Loreal stake, there's obviously a lot of questions from impatient investors about that.

Madeline Speed: Hi, morning. I wanted to ask what the focusing on four businesses means in practice? What in concrete terms will that change? The second question is on the L'Oréal stake. There's obviously a lot of questions from impatient investors about that. What's the rationale for staying in there? Thanks so much.

Speaker #1: The next question is from Thomas Oswald, AWP. Good morning, Thomas. Thomas, you can unmute yourself.

Operator: The next question is from Thomas Oswald, AWP. Good morning, Thomas. Thomas, you can unmute yourself.

What's the rationale for staying in there? Thanks so much.

Thomas Oswald: Yes, good morning.

Speaker #5: Yes, good morning. Can you hear me?

Thomas Oswald: Yes, good morning.

Philipp Navratil: Good morning.

Thomas Oswald: Can you hear me? Hello again. Thanks for taking the question. I have a follow-up to the infant formula recall. Are you taking any legal action against your supplier in China? And maybe have you made any provisions for potential legal cases, which you're maybe facing?

Speaker #1: Good morning.

Speaker #5: Hello again. Thanks for taking the question. I have a follow-up to the infant formula recall. Are you taking any legal action against your supplier in China?

Philipp Navratil: Yeah, thanks, Madeline. I'll talk to 4 business, and I'll have Anna talk to L'Oréal quickly. Look, the focus on 4, 4 businesses is truly that. It's focus for the company. It's focusing on coffee, pet care, nutrition, and food and snacks. This is where we play. And also what it drives is clarity of how we play then in the market. How we play, and I don't know if you had the chance to listen to our investors' presentation. There was 1 photograph in there where we showed a store in the Philippines, where all of those 4 categories or 4 businesses come together as 1 in 1 store, executed in 1 store.

Speaker #5: And maybe, did you—have you made any provisions for potential legal cases, which you're maybe facing?

Speaker #2: Yeah. Thank you, Thomas. Look, we, we will, we will obviously reserve the right to take legal actions. We have not done we have not done that so far.

Philipp Navratil: Yeah. Thank you, Thomas. Look, we will obviously reserve the right to take legal actions. We have not done that so far. Focus of the company is, has been on the recall and is now on replenishing the stocks. That is where we're focused on, and then we will see what needs to be done on the legal side. We have not done any provision so far. So we'll work that through as we need, but focus is really on getting the market restocked. That is where we're focused on at the moment.

Speaker #2: The focus of the company is, and has been, on the recall and is now on replenishing the stocks. That is where we're focused. And then we will see what needs to be done on the legal side.

Speaker #2: And, and, and, and we have not done any, any provisions so far. So we'll, we'll work that through as, as we need. But focus is really on, on, on getting the market restocked, that, that is where we're, we're, we're focused on at the, at the moment.

Philipp Navratil: What's very clear is that, you know, when you look at how we execute at Nestlé, the execution, the P&L ownership, the connection to consumers, customers is intrinsically located in the market, so it's owned by the market, close to the consumer. Anything that has to be global needs to be centrally driven from here. Look at brand stewardship, look at long-term brand strategy, ways of working, end-to-end workflows, science-based and technology-based innovation pipelines, et cetera, are globally driven through our strategic business units that are now managed under those four pillars.

Speaker #1: An additional question from Madeleine Speed. Financial Times. Good morning, Madeleine.

Operator 2: ... An additional question from Madeline Speed, Financial Times. Good morning, Madeline.

Operator: ... An additional question from Madeleine Speed, Financial Times. Good morning, Madeline.

Speaker #6: Hi. Morning. I wanted to ask what the focusing on businesses means in practice. What, in concrete terms, will that change? And then the second question is on the L'Oréal stake.

Madeleine Speed: Hi, good morning. I wanted to ask what the focusing on four businesses means in practice? What in concrete terms will that change? And then the second question is on the L'Oréal stake. There's obviously a lot of questions from impatient investors about that. What's the rationale for staying in there? Thanks so much.

Who listen to our to our um investors presentation. There was 1, uh, photograph in there where we showed a store in the Philippines where all of those 4 categories or 4, businesses, come together as 1 in in 1 store, executed in 1 store. And what's very clear is that, you know, when you look at how we execute, um, at Nestle, the the execution, the p&l ownership, the connection to Consumers customers is, um, intrinsically located in the market. So it's owned by the market, close to the consumer and anything that has to be Global needs to be centrally driven from here. Look at uh, Brands stewardship. Look at long-term brand strategy, ways of working end-to-end workflows, um, science-based and Technology based, uh, Innovation pipelines Etc. Are are are globally, driven through our strategic business units, that are now um, managed under those, uh, those 4 pillars and that list Clarity and focus to the

Speaker #6: There's obviously a lot of questions from impatient investors about that. What's the rationale for staying in there? Thanks so much.

To the company, uh, as a whole. And it's uh obviously in service to drive uh our our ambition uh to get the company to back uh to 4 plus organic growth, which should be really internal growth driven.

Philipp Navratil: That gives clarity and focus to the, to the company, as a whole, and it's obviously in service to drive our, our ambition to get the company to back to 4+ organic growth, which should be Real Internal Growth driven. On, on L'Oréal, Anna, if, if you, if you can give a bit of color to that one.

Speaker #2: Yeah. Thanks, Madeleine. I'll, I'll talk to for businesses and I'll, I'll, I'll have Anna talk to, to, L'Oreal quickly. Look, the, the focus on, on, on, on for, for businesses is, is truly that.

Philipp Navratil: Thanks, Madeline. I'll talk to four business, and I'll have Anna talk to L'Oréal quickly. Look, the focus on four businesses is truly that. So it's focus for the company. It's focusing on coffee, pet care, nutrition, and food and snacks. This is where we play. And also what it drives is clarity of how we play it in the market. And how we play, and I don't know if you had the chance to listen to our investors' presentation. There was one photograph in there where we showed a store in the Philippines, where all of those four categories or four businesses come together as one in one store, executed in one store.

Philipp Navratil: Thanks, Madeleine. I'll talk to four business, and I'll have Anna talk to L'Oréal quickly. Look, the focus on four businesses is truly that. So it's focus for the company. It's focusing on coffee, pet care, nutrition, and food and snacks. This is where we play. And also what it drives is clarity of how we play it in the market. And how we play, and I don't know if you had the chance to listen to our investors' presentation. There was one photograph in there where we showed a store in the Philippines, where all of those four categories or four businesses come together as one in one store, executed in one store.

And on on L'Oreal and if if you if you can give a bit of color to that 1. Yeah. Just quickly on that 1. Um and Lori I'll take is a financial stake and and we are very dispassionate about it. Um,

Speaker #2: So, it's focused for the company. It's focusing on coffee, pet care, nutrition, and food and snacks. This is where we play.

Speaker #2: And, and, and also what it, what it drives is, is clarity of, of how we play it, and in, in, in the market. And how we play. And I don't know if you had the chance to, to listen to our, to our investors' presentation.

Anna Manz: Yeah, just quickly on that one. Our L'Oréal stake is a financial stake, and we are very dispassionate about it. That said, it's performed very well for us in, over the years, and for our shareholders. From our perspective, it's not the biggest route to driving shareholder value right now, nor do we need to dispose of it to deleverage, as we're deleveraging irrespective. Our big focus right now is on the biggest driver of shareholder value, which is growth, and everything we're doing, is around accelerating growth.

That said it's performed very well for us over the years. Uh, and for our shareholders, from our perspective, it's not the biggest route to driving shareholder value right now. Uh, nor do we, uh, need to dispose of it to leverage as we're deleveraging irrespective. So our big Focus right now is on the biggest driver of shareholder value, which is growth.

And everything we're doing uh, is around accelerating growth.

Speaker #2: There was one photograph in there where we showed a store in the Philippines, where all of those four categories, or four businesses, come together as one in one store, executed in one store.

This.

Why?

Yes.

Speaker #2: And what's very clear is that, you know, when you look at how we execute at Nestlé, the execution, the P&L ownership, the connection to consumers, customers, is intrinsically located in the market.

I think we are. We continue with Benjamin Ryman, CH media.

Christoph: Thank you for this.

Christoph Meier: Thank you for this.

Anna Manz: Thanks.

Christoph: Yep. Madeline, yes? I think we are... We continue with Benjamin Weinmann, CH Media.

Christoph Meier: Yep. Madeline, yes? I think we are... We continue with Benjamin Weinmann, CH Media.

Speaker #2: So, it's owned by the market, close to the consumer. And anything that has to be global needs to be centrally driven from here. Look at brand stewardship.

Speaker #2: Look at long-term brand strategy, ways of working, end-to-end workflows—science-based and technology-based innovation pipelines, etc.—these are globally driven. Through our strategic business units that are now managed under those four pillars.

Benjamin Weinmann: Yes, good morning, everyone. I also have a question regarding the infant nutrition recall. During your presentation, you mentioned that obviously there's also learnings despite the standards of quality and safety. Can you, in simple terms, explain what are these learnings? What concrete measures are you taking to make sure this won't happen again? How also would you explain to nervous parents, how could this happen in the first place? Second question regarding the brand stewardship with the new four pillars that you mentioned, you gave the example of Nescafé, that it should look the same way, whether it's in Mexico or Switzerland. Would you say until today, there were too many liberties in the local markets being taken?

Yes, good morning everyone. Um, I also have a question regarding the infant nutrition recall, uh, during your presentation. You mentioned that obviously, there's also learning despite that I'm standards of quality and safety can you in simple terms explain what are these learnings? What concrete measures are you taking to make sure with this small tip and again and how also would you um, explain to nervous parents? How could this happen in the first place? And second question regarding the brand stewardship of the new 4 pillars that you mentioned. You gave the example of a Nesco.

Speaker #2: And that gives clarity and focus to the, to the company, as a whole. And it's, obviously in service to drive, our, our ambition, to get the company to back, to four-plus, organic growth, which, should be real internal growth-driven.

Philipp Navratil: And actually, it's clarity and focus to the, to the company as a whole, and it's obviously in service to drive our, our ambition to get the company back to 4+ organic growth, which should be real internal growth driven. And on L'Oréal, Anna, if, if you, if you can give a bit of color to that one.

Say, that it should look the same way and whether it's in Mexico or Switzerland. So would you say until today? There were too many Liberties in the local markets being taken.

Speaker #2: And on L'Oreal, Anna, if you can give a bit of color to that one.

Speaker #3: Yeah, just quickly on that one. Our L'Oréal stake is a financial stake, and we are very dispassionate about it. That said, it's performed very well for us over the years.

Anna Manz: Yeah, just quickly on that one. Our L'Oréal stake is a financial stake, and we are very dispassionate about it. That said, it's performed very well for us over the years, and for our shareholders. From our perspective, it's not the biggest route to driving shareholder value right now, nor do we need to dispose of it to deleverage, as we're deleveraging irrespective. So our big focus right now is on the biggest driver of shareholder value, which is growth, and everything we're doing is around accelerating growth.

Yeah, 2. Good questions. So look, I'll start with the infant formula recall. Look, the, the, the learnings I think are, are, are 2-fold? Uh, and, and it's very clear and it's, it's something we have. We have, um, consistently

Speaker #3: And for our shareholders. From our perspective, it's not the biggest route to driving shareholder value right now. Nor do we need to dispose of it to deleverage, as we're deleveraging irrespective.

Philipp Navratil: Two good questions. Look, I'll start with the infant formula recall. Look, the, the, the learnings, I think are, are, are twofold, and, and it's very clear, and it's, it's something we have, we have, consistently done in the past. But clearly, you know, when we look at, at, at our own facilities and, and everything that we do in, in, internally, we have very high quality standards everywhere, in every factory, each and every factory you go. Many times, and in, in many, many places, those standards are higher than would be required by the law or by any local regulation. Obviously, our, our, clear actions is that those same quality standards apply everywhere, that where we have suppliers or, or people, producing for us. And, and that is true.

Speaker #3: So our big focus right now is on the biggest driver of shareholder value, which is growth. And everything we're doing is around accelerating growth.

Speaker #1: Thank you for this.

Operator 2: Thank you for this.

Operator: Thank you for this.

Speaker #6: Thanks.

Anna Manz: Thanks.

Speaker #1: Yes, Madeleine. Yes. I think we are—let's continue with Benjamin Weinman, CH Media.

Operator 2: Yep. Madeline, yes? I think we are. We continue with Benjamin Weinmann, CH Media.

Operator: Yep. Madeline, yes? I think we are. We continue with Benjamin Weinmann, CH Media.

Done in the past. But but clearly, um, you know, when we look at at at our own facilities and and everything that we do in in internally, we are very high quality, standards everywhere, uh, in every Factory each and every Factory you go, um, many times, uh, and in in many, many, many places. Those standards are higher than would be required by the law, or by any local regulation. And obviously, our, our, um, clear actions is that, uh, those same quality standards apply everywhere, um, that where we have suppliers or, or people, uh, producing for us. And, and, and that is true in this particular, um, in this particular, uh, instance, uh, obviously this supplier that supplied this ingredient to us. Uh, this was not the case.

Speaker #4: Yes. Good morning, everyone. I also have a question regarding the infant nutrition recall. during your presentation, you mentioned that obviously there's also learnings, despite the high standards of quality and safety.

Benjamin Weinmann: Yes, good morning, everyone. I also have a question regarding the infant nutrition recall. During your presentation, you mentioned that obviously there's also learnings despite the standards of quality and safety. Can you, in simple terms, explain what are these learnings? What concrete measures are you taking to make sure this won't happen again? And how also would you explain to nervous parents, how could this happen in the first place? And second question, regarding the brand stewardship of the new four pillars that you mentioned, you gave the example of Nescafé, that it should look the same way, whether it's in Mexico or Switzerland. So would you say until today, there were too many liberties in the local markets being taken?

Philipp Navratil: In this particular, in this particular instance, obviously, this supplier that supplied this ingredient to us, this was not the case. It was also not the case because, you know, having sterolide in oil is a very rare occurrence, and, and, and that, that it was, that, that's why it was not, not on our radar and not on, on the industry's radar. We found this issue because of our good manufacturing practices and, and, and quality standards that go beyond good manufacturing practices, and we're the first in the industry to find, to find the issue. It was also, as you have seen, it was not something that was regulated by, by anyone.

Speaker #4: Can you, in simple terms, explain what these learnings are? What concrete measures are you taking to make sure this won't happen again? And how would you also explain to nervous parents how this could happen in the first place?

Speaker #4: And second question regarding the brand stewardship with the new four pillars that you mentioned. You gave the example of Nescafé, that it should look the same way whether it's in Mexico or Switzerland.

Speaker #4: So, would you say that, until today, there were too many liberties being taken in the local markets?

Speaker #2: Yeah. two good questions. So look, I'll start with the infant formula recall. Look, the, the, the learnings I think are, are, are twofold. and, and it's very clear.

Philipp Navratil: Yeah, two good questions. So look, I'll start with the infant formula recall. Look, the learnings, I think, are twofold. And it's very clear, and it's something we have consistently done in the past. But clearly, you know, when we look at our own facilities and everything that we do internally, we have very high quality standards everywhere, in every factory, each and every factory you go. Many times, and in many places, those standards are higher than would be required by the law or by any local regulation. And obviously, our clear actions is that those same quality standards apply everywhere, that where we have suppliers or people producing for us, and that is true.

Philipp Navratil: Has then been regulated by the European Union, and there is now a level that has been put in place from a regulatory point of view. It's something the learning there is, you know, these risks move, and we have to be one step ahead of identifying these risks. Obviously, I'm very clear, you know, sterol has nothing to do with infant formula, and this is not something that should happen. What I can assure you that Nestlé has always been and is laser-focused on the quality of its product and the safety and health of consumers, especially when it comes to infant formula.

Speaker #2: And it's, it's something we have, we have, consistently done in the past. But, but clearly, you know, when we look at, at, at our own facilities and, and everything that we do in, in internally, we are very high-quality standards everywhere.

Speaker #2: In every factory, each and every factory you go, many times, in many, many places, those standards are higher than would be required by the law or by any local regulation.

I can assure you that uh Nestle is is has always been. An is laser focused on the quality of its product and and the safety and and health of of consumers, especially when it comes to infant formula and uh you know, to to parents out there um,

Speaker #2: And obviously, our clear actions are that those same quality standards apply everywhere—that is, wherever we have suppliers or people producing for us.

Philipp Navratil: You know, to, to parents out there, I apologize for the inconvenience that this, this recall has caused, and, and, and, and we are, we are shipping a safe and, and, and, and, and utterly controlled product since the recall is done. And, and as, as I said, we have recalled one month earlier than any other company out there, and our product that is out there is safe to consume. And, and, and we will keep it that way.

Speaker #2: And, and, and that is true. In this particular, in this particular instance, obviously this supplier that supplied this ingredient to us, this was not the case.

Philipp Navratil: In this particular instance, obviously, this supplier that supplied this ingredient to us, this was not the case. And it was also not the case because, you know, having Cereulide in oil is a very rare occurrence, and that it was, that's why it was not on our radar and not on the industry's radar. We found this issue because of our good manufacturing practices and quality standards that go beyond good manufacturing practices, and we're the first in the industry to find the issue. And it was also, as you have seen, it was not something that was regulated by anyone.

I apologize for the inconvenience. That is this recall as calls? And and, and, and we are, we are shipping a safe and and, and, and, and utterly controlled product, uh, since the recall that done and and, and and as, as I said, we have recalled 1 month earlier than any other company out there. And our product, that is out, there is safe to consume and um, and and, and we will keep it that way.

Speaker #2: and, and it was also not the case because, you know, having Ceralite in oil is a very rare occurrence. And, and, and that, that it was, that, that's why it was, not, not on our radar and not on, on the industry's radar.

Speaker #2: We found this issue because of our good manufacturing practices and, and, and quality standards that go beyond good manufacturing practices. And we're the first in the industry to find, to find the issue.

Christoph: The Nescafé example.

Benjamin Weinmann: The Nescafé example.

Philipp Navratil: On Nescafé, you look, was there too much liberty out there? Yes, look, there, there was, because, and I can talk to this quite, quite well. When I took over the Nescafé strategic business unit, you know, you would look at Nescafé across the world, and it was Nescafé written, but it was not looking the same, it didn't have the same look and feel. What then, a centrally driven unit can do is to have one design that has now been rolled out across the world, and the Nescafé logo and the Nescafé design looks more or less the same everywhere, without obviously losing the local specificities. Might have, you know, freedom in the framework that local markets can still apply.

Speaker #2: And, and, and it was also, as you have seen, it was not something that was regulated by anyone. It has then been regulated by the European Union.

Philipp Navratil: Has then been regulated by the European Union, and there is now a level that has been put in place from a regulatory point of view. So it's something, the learning there is the, you know, these risks move, and we have to be one step ahead of identifying these risks. But obviously, I'm very clear, you know, Cereulide has nothing to do with infant formula, and this is not something that should happen. What I can assure you that Nestlé has always been and is laser focused on the quality of its product and the safety and health of consumers, especially when it comes to infant formula.

Speaker #2: And there is now a level that has been put in place from a regulatory point of view. So, it's something—the learning there is, you know, these risks move.

The next Cafe example, then, on next Cafe. You look, was there too much Liberty out there. Yes, look, there was because, um, and I can talk to this quite quite well, when, when I took over the escapists, Strategic business unit, you know, you would look at NES Cafe, uh, across the world and, and it it was Nescafe written, but it was not looking the same. It didn't have the same look and feel and what then, uh, essentially, uh, driven unit can do is to have 1 design. That has now been, um, rolled out across the world and the NCAA logo and the nesca for design looks more or less the same everywhere without obviously losing the local specificities. So we might have, you know, uh, freedom in the framework that the local markets can uh still apply um but a global brand, in my view has to show

Swap as a global brand.

Speaker #2: And we have to be one step ahead of identifying these risks. But obviously, I'm very clear—you know, Ceralite has nothing to do in infant formula.

Speaker #2: And, and, and, and this is not, not something that, that, that, that should happen. What I can assure you is that NESTLE is, is, has always been, and is laser-focused on the quality of its product and, and the safety and, and health of, of consumers, especially when it comes to infant formula.

Philipp Navratil: A, a global brand, in my view, has to show up as a global brand. The, the best ex- the best expression is Nespresso, that it looks the same across the world without any, any freedom in any framework. Then all other brands have some freedom in the framework to make it look local, but it should, it should be recognizable as a, as a Nescafé. These are the things that make a lot of sense to have at the global level, while local markets have the freedom to execute the brand, as, as they wish.

The the best, the best expression is an espresso that it looks the same across the world without any, any freedom in any framework. But in all other brands have some freedom in the framework to make it look local. But it should, it should be a recognizable as a uh, as an escapee. And these are the things that make a lot of sense to have at the global level. While local markets, have the freedom to execute the brand, um, as as they wish

The next question goes to Daniel hugley cash.

Speaker #2: And, you know, to parents out there, I apologize for the inconvenience that this, this recall has caused. And, and, and, and we are, we are shipping safe and, and, and, and utterly controlled products, since the recall has done.

Philipp Navratil: You know, to parents out there, I apologize for the inconvenience that this recall has caused. We are shipping a safe and utterly controlled product since the recall is done. As I said, we have recalled one month earlier than any other company out there, and our product that is out there is safe to consume, and we will keep it that way.

Daniel, can you hear us?

Speaker #2: And, and, and, and as, as I said, we have recalled one month earlier than any other company out there. And our product that is out there is safe to consume.

Christoph: The next question goes to Daniela Hugli, cash.ch. Daniel, can you hear us? Doesn't seem to work. We will come back to you afterwards, and we move to Alan.

Christoph Meier: The next question goes to Daniela Hugli, cash.ch. Daniel, can you hear us? Doesn't seem to work. We will come back to you afterwards, and we move to Alan.

Speaker #2: And, and, and, and we will keep it that way.

Doesn't seem to work. We will come back to you afterwards and uh, we move to can hear me. Ah, yes, we can hear you. Sorry. I have some technical problems here. Good morning. Um, I have a follow-up question on the Loreal stick. I was not able to follow the in investor presentation either. It just saw some headlines saying,

Speaker #1: The Nescafé example.

Operator: The Nescafé example.

Speaker #2: Then on Nescafé, you look, was there too much liberty out there? Yes. Look, there was, because—and I can talk to this quite, quite well.

Philipp Navratil: Then on Nescafé, you look, was there too much liberty out there? Yes, look, there was, because, and I can talk to this quite, quite well. When I took over the Nescafé strategic business unit, you know, you would look at Nescafé across the world, and it was Nescafé written, but it was not looking the same. It didn't have the same look and feel. And what then a centrally driven unit can do is to have one design that has now been rolled out across the world, and the Nescafé logo and the Nescafé design looks more or less the same everywhere, without obviously losing the local specificities. So might have, you know, freedom in the framework that local markets can still apply.

[Analyst]: Can you hear me?

Daniel Hügli: Can you hear me?

Christoph: Ah, yes. We can hear you.

Christoph Meier: Ah, yes. We can hear you.

[Analyst]: Sorry, I have some technical problems here. Good morning. I have a follow-up question on the L'Oréal stake. I was not able to follow the investor presentation either. I just saw some headlines saying that the sale of L'Oréal stake doesn't have any priority. Can you give us a scenario where this sale of that stake has a priority?

Daniel Hügli: Sorry, I have some technical problems here. Good morning. I have a follow-up question on the L'Oréal stake. I was not able to follow the investor presentation either. I just saw some headlines saying that the sale of L'Oréal stake doesn't have any priority. Can you give us a scenario where this sale of that stake has a priority?

Speaker #2: When I took over the Nescafé strategic business unit, you know, you would look at Nescafé across the world, and it was Nescafé written, but it was not looking the same.

That the sale of Loreal stick doesn't have any priority. Can you give this a scenario where this sale of that stake has a priority?

We are very focused on delivering shareholder returns.

Speaker #2: It didn't have the same look and feel. And what, then, a centrally driven unit can do is to have one design that has now been rolled out across the world.

Speaker #2: And the Nescafé logo and the Nescafé design look more or less the same everywhere, without obviously losing the local specificities. So we might have, you know, freedom in the framework that local markets can still apply.

And we start from a perspective of what is the the fastest way that we improve returns for our shareholders. And so our, our number 1 priority is doing exactly that and therefore our Focus absolutely uniformly, across the group is around accelerating rig.

Anna Manz: We are very focused on delivering shareholder returns, and we start from a perspective of what is the, the fastest way that we improve returns for our shareholders. Our, our number one priority is doing exactly that, and therefore, our focus, absolutely uniformly across the group, is around accelerating RIG. Because that is, is what gets our products being eaten and drunk more globally. Accelerating RIG is what also drives margin, it drives cash flow, and it drives returns. What we said on the call was that was our number one focus.

Speaker #2: but a, a global brand, in my view, has to show up as a global brand. The, the best ex the best expression is Nespresso.

Philipp Navratil: But a global brand, in my view, has to show up as a global brand. The best expression is Nespresso, that it looks the same across the world without any freedom in any framework. But then all other brands have some freedom in the framework to make it look local, but it should be recognizable as a Nescafé. And these are the things that make a lot of sense to have at the global level, while local markets have the freedom to execute the brand, as they wish.

Because that is, is what gets our products being eaten, and drunk, more globally. And accelerating rig is what also drives margin. It drives cash flow, and it drives returns. So, what we said on the call was that was our number 1 Focus.

Speaker #2: That it looks the same across the world without any—any—freedom in any framework. But then, all other brands have some freedom in the framework to make it look local.

Very good.

Next question is from Anna.

Speaker #2: But it should, it should be recognizable as a Nescafé. And these are the things that make a lot of sense to have at the global level.

Hello.

Speaker #2: While local markets have the freedom to execute the brand as they wish.

Speaker #1: The next question goes to Daniel Hügle Cash. Daniel, can you hear us? 2,000 seems to work. We will come back to you afterwards. And we move to Ana.

Operator: The next question goes to Daniel Hugley, Cash. Daniel, can you hear us? Doesn't seem to work. We will come back to you afterwards, and we move to Alain.

Um, can you unmute yourself? Otherwise we will come back and go first with Fabian kelman, Bloomberg.

Christoph: Very good. Next question is from Alain-Sebastian Dettwiler, Vontobel. Alain, can you unmute yourself? Otherwise, we will come back and go first with Fabienne Kinzelmann, Bloomberg. Fabienne? Seems to be a technical issue. Fabienne, can you hear us?

Christoph Meier: Very good. Next question is from Alain-Sebastian Dettwiler, Vontobel. Alain, can you unmute yourself? Otherwise, we will come back and go first with Fabienne Kinzelmann, Bloomberg. Fabienne? Seems to be a technical issue. Fabienne, can you hear us?

Fabian.

Seems to be a technical issue.

Daniel Hügli: Can you hear me?

Operator: Ah, yes, we can hear you now.

Speaker #1: Yes, we can hear you now.

Speaker #3: Sorry, I have some technical problems here. Good morning. I have a follow-up question on the L'Oréal sticker. I was not able to follow the investor presentation either.

Speaker #3: I just saw some headlines saying that the sale of the L'Oréal stake doesn't have any priority. Can you give us a scenario where the sale of that stake would have a priority?

Fabienne Kinzelmann: Yeah, do you hear me now?

Christoph: Yes, yes.

Christoph Meier: Yes, yes.

Fabienne Kinzelmann: Okay. Yeah, good morning again. Regarding the ice cream business sale, and thanks for confirming the Bloomberg scoop. Did I get it right that the ownership structure of Froneri will not change and that you will keep it like it is today, or will the ownership structure change? The other question I have, I looked at a corporate governance report and saw, Philip, that your predecessor received no compensation upon termination other than his pro-rata base salary until September first. What I would like to know, is there still any legal issue to solve with him? Is there anything still has to be, which has to be settled?

Anna Manz: We are very focused on delivering shareholder returns, and we start from a perspective of: What is the fastest way that we improve returns for our shareholders? And so our number one priority is doing exactly that, and therefore, our focus, absolutely uniformly across the group, is around accelerating RIG, because that is what gets our products being eaten and drunk more globally. And accelerating RIG is what also drives margin, it drives cash flow, and it drives returns. So what we said on the call was that was our number one focus.

Speaker #4: We are very focused on delivering shareholder returns. And we start from a perspective of: what is the fastest way that we improve returns for our shareholders?

Fabian. Can you hear us? Yeah. Do you hear me now? Yes, yes. Okay. Um, yeah. Uh, good morning again. So, um, regarding the ice cream business sale, um, and thanks for confirming the Bloomberg scoop. So, um, did I get it right that? Um, the ownership structure of for ner will not change and that you will keep it like it is today or if, like, will the ownership structure change? And then the other question I have I looked at a corporate governance report and so, um, Philip that your predecessor received no compensation upon termination, other than his Pro, write up base salary until September 1st. So what I would like to know, is there still any legal issue to solve with him? Are there, is there anything still has to be? Which has to be settled.

Speaker #4: And so our number one priority is doing exactly that. And therefore, our focus absolutely uniformly across the group is around accelerating rig, because that is what gets our products being eaten and drunk more globally.

Speaker #4: And accelerating RIG is what also drives margin. It drives cash flow, and it drives returns. So what we said on the call was that was our number one focus.

JV as as as it is today and and we just uh transferred us uh 6 ice cream businesses, we sell that to freeze, so nothing, nothing will change.

Philipp Navratil: Yeah, thanks, Fabienne. Look, on ice cream, there is no, there's no change to ownership structure at the moment, nothing at all. Froneri will, will be a JV as it is today, and we just transferred those six ice cream businesses. We sell that to Froneri, nothing, nothing will change. On corporate governance question, look, I, I don't know about any, any, any legal action. It's, it's not honestly something I spend my time on.

Um on corporate governance. Question. Look I I don't know about any any any legal action? It's uh it's not honestly something I spend my time on

Speaker #1: Very good. Next question is from Anna Detra, 24h. Anna, can you unmute yourself? Otherwise, we will come back and go first with Fabienne Kinzelmann, Bloomberg.

Operator: Very good. Next question is from Alain Detra, 24 Heures. Alain, can you unmute yourself? Otherwise, we will come back and go first with Fabienne Kienzlmann, Bloomberg. Fabienne? Seems to be a technical issue. Fabienne, can you hear us?

And next question is from Natalie, Olive or AFP?

Natalie. Good morning.

Natalie, can you hear us and on YouTube yourself?

If not, we will come back and go to edish, burglar pants.

Christoph: Next question is from Nathalie Olof-Ors, AFP. Natalie, good morning. Natalie, can you hear us and unmute yourself? If not, we will come back and go to Erich Buerkle, Bilanz. Erich, please go ahead.

Christoph Meier: Next question is from Nathalie Olof-Ors, AFP. Natalie, good morning. Natalie, can you hear us and unmute yourself? If not, we will come back and go to Erich Buerkle, Bilanz. Erich, please go ahead.

Speaker #1: Fabienne? It seems there is a technical issue. Fabienne, can you hear us?

It is, please go ahead.

Good morning. Good morning morning.

Speaker #5: Yeah, do you hear me now? Oh, okay. Yeah, good morning again. So, regarding the ice cream business sale—and thanks for confirming the Bloomberg scoop.

Fabienne Kinzelmann: Yeah, do you hear me now?

Operator: Yes. Yes.

Fabienne Kinzelmann: Okay. Yeah, good morning again. Regarding the ice cream business sale, thanks for confirming the Bloomberg scoop. Did I get it right that the ownership structure of Froneri will not change, and that you will keep it like it is today? Will the ownership structure change? The other question I have, I looked at a corporate governance report and saw, Philippe, that your predecessor received no compensation upon termination, other than his pro-rata base salary until 1 September. What I would like to know, is there still any legal issue to solve with him? Is there anything that still has to be, which has to be settled?

Um, to the next level Water Business. Uh, you're looking for a partnership. What kind of partnership exactly is that also going to be a joint venture. Uh, is it also an option to sell the whole business? Um,

Speaker #5: So, did I get it right that the ownership structure of Froneri will not change and that you will keep it like it is today?

Erich Buerkle: Good morning.

Erich Gerbl: Good morning.

Philipp Navratil: Good morning.

Christoph: Good morning.

Christoph Meier: Good morning.

Erich Buerkle: To the Nestlé water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? Regarding the water brands, I think you still have around 30 water brands all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

Speaker #5: Or is, like, will the ownership structure change? And then the other question I have—I looked at a corporate governance report and saw, Philip, that your predecessor received no compensation upon termination other than his pro-rated base salary until September 1st.

Erich Gerbl: To the Nestlé water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? Regarding the water brands, I think you still have around 30 water brands all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

And regarding the water brands, I think you still have around 30 water brands. Um all over the world, will you drop some of them? Some of the local Brands, uh which 1 will you keep and bring into this uh uh, partnership? You are working on to establish?

Speaker #5: So, what I would like to know is, is there still any legal issue to solve with him? Is there anything that still has to be settled?

Speaker #2: Yeah. Thanks, Fabienne. Look, on ice cream, so there is no there is no change to ownership structure, at the moment. Nothing at all. so Froneri will, will, will be a JV as, as, as it is today.

Philipp Navratil: Yeah, thanks, Fabienne. Look, on ice cream, so there's no change to ownership structure at the moment, nothing at all. So for now, we'll be a JV as it is today, and we just transferred those six ice cream businesses. We sell that to Froneri, so nothing will change. On corporate governance question, look, I don't know about any legal action. It's not honestly something I spend my time on.

Philipp Navratil: Yeah, look, in terms of the partners, we said we initiated a process of a partnership. The partnership can take many forms, so it's not defined yet. We're looking for a partnership in some way. In terms of brands, it comprises all of the brands, and it's then, you know, to the new partner or owner to determine the future of any brands. It's the perimeter is all of the water brands, global and local.

Speaker #2: And, and we just, transfer those, six ice cream businesses. We sell that, to Froneri. So nothing, nothing will change. on corporate governance question, look, I, I don't know about any, any, any legal action.

Yeah. Look in, in terms of the partners, we said, we we, we, um, initiated the process of a partnership. The partnership can take many forms. Uh, so it's not not defined yet. Um, but we're looking for, for a partnership in, in, in some way, in terms of Brands, it's it, it, uh, comprises all of the brands, um, and, and it's then, uh, you know, to the new, uh, to the new, um, partner or owner to, uh, to determine the future of, of, of any Brands. But it's, uh, it's the perimeter is all of the all of the water brands, uh, Global and local.

Next question is from Claudia name. Talk is on tiger.

Speaker #2: It's—it's not, honestly, something I spend my time on.

I hope you can hear me. Yes, and

Operator: Next question is from Nathalie Olhoff-Orse, AFP. Nathalie, good morning. Nathalie, can you hear us and unmute yourself? If not, we will come back and go to Erich Buerkle, Bilanz. Erich, please go ahead.

Speaker #1: And next question is from Nathalie Olof-Ors, AFP. Nathalie, good morning. Nathalie, can you hear us? And unmute yourself? If not, we will come back and go to Erich Birkler, Bilanz.

That nesting has good manufacturing practices and, and above standard. I mean, this is

Christoph: Next question is from Claudia Gnehm, Tages-Anzeiger.

Christoph Meier: Next question is from Claudia Gnehm, Tages-Anzeiger.

Claudia Gnehm: Hello, I hope you can hear me?

Christoph: Yes.

Christoph Meier: Yes.

Claudia Gnehm: That Nestlé has good manufacturing practices and above standard, I mean, this has been written, and it's all over the place, right? Even higher safety standards. I still wonder, how come that a supplier did not have the same high standards as your own factories? How can consumers trust that this is not happening elsewhere in another factory, where you also have another standard. I mean, how can you assure consumers, and how do you explain that it didn't have the same standard?

Speaker #1: Erich, please go ahead.

Speaker #3: Good morning.

Erich Buerkle: Good morning.

Erich Bürgler: Good morning.

Speaker #1: Good morning.

Philipp Navratil: Good morning.

Speaker #2: Good morning.

Operator: Good morning.

Erich Buerkle: To the Nestlé Water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? Regarding the water brands, I think you still have around 30 water brands, all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

Speaker #3: To the Nestlé water business, you're looking for a partnership. What kind of partnership exactly? Is that also going to be a joint venture? Is it also an option to sell the whole business?

Erich Bürgler: To the Nestlé Water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? Regarding the water brands, I think you still have around 30 water brands, all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

This has been written and it's all over the place, right? Um, even more higher uh, safety standards. So I still wonder how come that A supplier did not have the same high standards as your own factories and how can consumers trust that? Um, I mean, this is not happening elsewhere in another Factory where you also have, um, another standard I mean,

How can yours sure consumers? And how do you explain that? They didn't have the same standard.

Speaker #3: And regarding the water brands, I think you still have around 30 water brands all over the world. Will you drop some of them? Some of the local brands?

Speaker #3: Which one will you keep and bring into this partnership you are working on to establish?

Speaker #2: Yeah. Look, in terms of the partners, we said we initiated a process of a partnership. The partnership can take many forms.

Philipp Navratil: ... Yeah, look, in terms of the partners, we said we initiated a process of a partnership. The partnership can take many forms, so it's not defined yet, but we're looking for a partnership in some way. In terms of brands, it comprises all of the brands, and it's then, you know, to the new partner or owner to determine the future of any brands. But it's the perimeter is all of the water brands, global and local.

Philipp Navratil: Yeah, look, it's, it's, it's a good question. I understand the anxiety around it. Look, obviously, all of our suppliers have to have the same standards as we have. In this particular case, as I have explained before, it was a, it was a not known risk that, you know, this particular toxin could be found in oil. It was new to us, it was new to the industry.

Speaker #2: so it's not, not defined yet. but we're looking for, for a partnership in, in, in some way. In terms of brands, it's, it, it, comprises all of the brands.

Speaker #2: And, and it's then, you know, to the new, to the new partner or owner to determine the future of, of, of any brands.

Philipp Navratil: Hence, you know, when we found out, due to our superior quality and safety practices in our factories, we immediately then went to recall the product, and we acted swiftly and were first to find out and work closely with authorities, healthcare professionals, and also industry associations to make sure, you know, this is known by the industry. Still then, you know, it took the industry, the rest of the industry, to recall almost a month after we did. That is not an excuse, and obviously, we will take these learnings and make sure this doesn't happen again.

Speaker #2: But it's, it's the perimeter, it's all of the water brands, global and local.

Speaker #1: Next question is from Claudia Gnehm, Tages-Anzeiger.

Operator: Next question is from Claudia Gnem, Tages-Anzeiger.

Operator: Next question is from Claudia Gnehm, Tages-Anzeiger.

Yeah, look, it's it's it's a good question. I understand the anxiety around it. Um, look, obviously all of our supplies have to have the same standards as, as we have. In this particular case as I have explained before, it was a, it was a not known risk. Um, that, uh, you know, this, uh, this particular toxin could be found in, uh, in oil, it was new to us, it was new to the industry. Um, and hence, uh, you know, when we found out, um, due to our superior quality and, and and safety practices in in our factories, we immediately then went, uh, to recall the product and we acted swiftly and were first to find out and and and and and worked closely with authorities Healthcare professionals and and also industry associations to make sure. Uh, you know, this this is known by the industry and and uh and still then you know, it took the industry, the rest of the industry to recall uh almost a month after we did. Uh, and that is not an excuse uh, and and and obviously we will take

Claudia Gnem: Hello, I hope you can hear me?

Claudia Gnehm: Hello, I hope you can hear me?

Speaker #6: Hello. I hope you can hear me.

Speaker #1: Yes.

Operator: Yes.

Speaker #6: And that Nestlé has good manufacturing practices, and above standard. I mean, this has been written and it's all over the place, right?

Claudia Gnem: That Nestlé has good manufacturing practices and above standard. I mean, this has been written, and it's all over the place, right? Even higher safety standards. So I still wonder, how come that a supplier did not have the same high standards as your own factories? And how can consumers trust that, I mean, this is not happening elsewhere in another factory, where you also have another standard. I mean, how can you assure consumers, and how do you explain that it didn't have the same standard?

Claudia Gnehm: That Nestlé has good manufacturing practices and above standard. I mean, this has been written, and it's all over the place, right? Even higher safety standards. So I still wonder, how come that a supplier did not have the same high standards as your own factories? And how can consumers trust that, I mean, this is not happening elsewhere in another factory, where you also have another standard. I mean, how can you assure consumers, and how do you explain that it didn't have the same standard?

Speaker #6: Even more higher safety standards. So I still wonder, how come that a supplier did not have the same high standards as your own factories?

These learnings and, and, and make sure this doesn't this, this doesn't happen again, uh, but it's important to, to understand that that also testing methods and, and these risks evolve. And, and we will, we will, uh, be 1 Step Ahead to make sure we identify this risks everywhere and, and, and apply those learnings, uh, everywhere. Uh, but, uh, you can be a short that our quality and, and, and

Philipp Navratil: It's important to, to understand that, that also testing methods and, and these risks evolve, and, and we will, we will be one step ahead to make sure we identify these risks everywhere and, and, and apply those learnings everywhere. You can be assured that our quality and, and, and safety practices are intact within our factories and within all of our suppliers we're sourcing products at the moment.

Speaker #6: And how can consumers trust that—I mean, this is not happening elsewhere, in another factory where you also have another standard? I mean, how can you assure consumers?

Safety practices are intact within our factories and within all of our suppliers. We're sourcing, uh, products at the moment.

Thank you. The next question is from Christian Cole.

Good morning, Christian.

Speaker #6: And how do you explain that it didn't have the same standard?

Speaker #2: Yeah. Look, it's, it's, it's a good question. I understand the anxiety around it. Look, obviously, all of our suppliers have to have the same standards as we have.

Philipp Navratil: Yeah, look, it's a good question. I understand the anxiety around it. Look, obviously, all of our suppliers have to have the same standards as we have. In this particular case, as I have explained before, it was a not known risk, that you know this particular toxin could be found in oil. It was new to us, and it's new to the industry.

Christoph: Thank you. The next question is from Christian Kolbe, Blick. Good morning, Christian.

Christoph Meier: Thank you. The next question is from Christian Kolbe, Blick. Good morning, Christian.

Speaker #2: In this particular case, as I have explained before, it was a it was a not-known risk, that, you know, this, this particular toxin could, be found in, in oil.

Christian Kolbe: Good morning. Sorry, I've got some technical issues to get into the call, but maybe I ask a question for the second time. The first question is, Nestlé says you are estimating about CHF 200 million impact of the baby formula issue. Other estimates say about CHF 500 million. Why are you so sure that the costs won't go up for Nestlé more than CHF 200 million? The second one, Michael Bauer, the Deputy Director of Bundesamt für Lebensmittelsicherheit und Veterinärwesen, says that he's not happy how the company, not only Nestlé, but all companies, reacted on the issue. My question is, why took it so long till it was clear that Switzerland was affected or not?

Speaker #2: It was new to us. It was new to the industry. and hence, you know, when we found out, due to our superior quality and, and, and safety practices in, in our factories, we immediately then went, to recall the product.

Philipp Navratil: And hence, you know, when we found out, due to our superior quality and safety practices in our factories, we immediately then went to recall the product, and we acted swiftly and were first to find out and worked closely with authorities, healthcare professionals, and also industry associations, to make sure, you know, this is known by the industry. And still then, you know, it took the industry, the rest of the industry, to recall almost a month after we did. And that is not an excuse, and obviously, we will take these learnings and make sure this doesn't happen again.

The million Swiss Francs and the second 1, the Michael, Bayer, the feature director of bonds matrices how it says that he's not happy, how the company is not only nested with all companies, reacted on the issue and Microsoft, why took it so many so long?

Speaker #2: And we acted swiftly and were first to find out and, and, and, and worked closely with authorities, healthcare professionals, and, and also industry, associations to make sure, you know, this, this is known by the industry.

Till it was clear that uh, Switzerland was affected or not.

I'll I'll leave the first part to Anna on on on the size of the recall and I'll take the other 1 on on. Um,

Speaker #2: And, and, and still then, you know, it took the rest of the industry to recall almost a month after we did. And that is not an excuse.

On the, on the speed of the recall.

Speaker #2: And, and, and obviously, we will take these learnings and, and, and make sure this doesn't, this, this doesn't happen again. But it's important to, to understand that, that also testing methods and, and these risks evolve.

So, on the first part, what what we said on the call this morning was there is a direct impact of the recall. So that is the cost of the recall it or the sales.

Philipp Navratil: I'll, I'll leave the first part to Anna on, on, on the size of the recall, and I'll take the other one on, on, on the, on the speed of the recall.

Philipp Navratil: But it's important to understand that also testing methods and these risks evolve, and we will be one step ahead to make sure we identify these risks everywhere and apply those learnings everywhere. But you can be assured that our quality and safety practices are intact within our factories and within all of our suppliers we're sourcing products at the moment.

Speaker #2: And, and we will, we will be one step ahead to make sure we identify these risks everywhere, and, and, and apply those learnings everywhere.

Anna Manz: On the first part, what we said on the call this morning was there is a direct impact of the recall. That is the cost of the recall, or the sales impacted by the recall itself, and the sales or the lost sales due to out of stocks of 20 basis points for the year. That was a very specific statement. We also said that the broader consumer impact was uncertain. We'll, we'll, you know, learn more as we go. That said, it's a, it's a sector that we know a lot about. We work very closely with doctors and also regulators.

Speaker #2: But, you can be assured that our quality and safety practices are intact within our factories, and within all of our suppliers. We're sourcing products at the moment.

Uh, impacted by the recall itself, and the sales or the Lost sales, due to out of stocks of of 20 basis points for the year. So that was a very specific statement. We also said that the broader consumer impact was uncertain, um, we we'll, we'll, you know, learn more as we go. That said, um, it's a

Speaker #1: Thank you. The next question is from Christian Kolbe Blick. Good morning, Christian.

Operator: Thank you. The next question is from Christian Kolbe, Blick. Good morning, Christian.

Christian Kolbe: Good morning. Sorry, I've got some technical issues to get in the call, but maybe I, I ask a question for the second time. But, the question, the first question is, Nestlé says you are estimating about, CHF 200 million impact of the baby formula issue. Other estimates say about CHF 500 million francs. Why are you so sure that, the costs won't go up for Nestlé more than the CHF 200 million Swiss francs? And the second one, Michael Baer, the Federal Director of Bundesamt für Lebensmittelsicherheit, says that he's not happy how the companies, not only Nestlé, but all companies, reacted on the issue. And my question is, why took it so long till it was clear that, Switzerland was affected or not?

Speaker #4: Good morning. Sorry, I've got some technical issues to get in the call. But maybe I, I ask, question for the second time. But, the question, the first question is, Nestlé says you are estimating about 200 million Swiss francs impact of the baby formula issue.

It's a factor that we know a lot about we um work very closely with doctors and um also regulators and so that's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4% uh organic growth.

Philipp Navratil: Mm-hmm.

Anna Manz: That's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4% organic growth.

Speaker #4: Other estimates say about 500 million francs. Why are you so sure that the costs won't go up for Nestlé more than the 200 million Swiss francs?

Anna Manz: That's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4% organic growth.

Speaker #4: And the second one, Michael Bayer, the pizza director of Bundesamt für Lebensmittelsicherheit, says that he's not happy with how the companies—not only Nestlé, but all companies—reacted on the issue.

Philipp Navratil: Good. Then, when it comes to the speed of the recall, look, I want to be very clear. We were very fast in recalling when we found out about the issue. We not only found out about the issue, we also informed authorities, and we informed healthcare professionals and industry associations to make sure, you know, this knowledge gets beyond Nestlé, because we knew that the supplier that we sourced this ingredient from was a supplier that would also source to other to other companies. That's another story. What we have done over the holidays, when we found out about the issue, we immediately worked together with authorities and recalled as fast as we could. That includes Switzerland.

Speaker #4: And my question is, why did it take so long until it was clear whether Switzerland was affected or not?

Speaker #2: Yeah. I'll, I'll leave the first part to Anna on, on, on the size of the recall. And I'll take the other one on, on, on the on the speed of the recall.

Philipp Navratil: I'll leave the first part to Anna on the size of the recall, and I'll take the other one on the speed of the recall.

Speaker #5: So, on the first part, what we said on the call this morning was there is a direct impact of the recall. So that is the cost of the recall, or the sales impacted by the recall itself.

Anna Manz: So on the first part, what we said on the call this morning was there is a direct impact of the recall, so that is the cost of the recall or the sales impacted by the recall itself, and the sales or the lost sales due to out of stocks of 20 basis points for the year. So that was a very specific statement. We also said that the broader consumer impact was uncertain. We'll, you know, learn more as we go. That said, it's a sector that we know a lot about. We work very closely with doctors and also regulators.

George and then, and then when it comes to, uh, the speed of the recall, look, I, I want to be very clear. Um, we were very fast in in, in recalling when we found out about the issue, uh, and we not only found out about the issue, we also informed uh authorities and we are informed Health Care Professionals and Industry associations to make sure you know this knowledge gets Beyond a Nestle. Because we knew that the supplier that we sourced, this ingredient from was a supplier, that would also uh, source to other, uh, to other companies. Um, but that's then that's another story. What we have done over the holidays, when we found out about, um, uh, the issue, we immediately, uh, worked together with authorities and recalled as fast as we could. Uh, so, uh, and that includes Switzerland. So there was not not, there was no delay. That I'm aware of that. Uh, that, you know, we have waited and, and, and seen when the issue was detected, we immediately recalled and we informed authorities to make sure these products are off shelf and consume.

Consumers are informed and uh are kept safe. Um, so we moved fast.

Speaker #5: And the sales, or the lost sales due to out-of-stocks, of 20 basis points for the year. So that was a very specific statement.

Philipp Navratil: There was no delay that I'm aware of that, that, you know, we have waited and seen. When the issue was detected, we immediately recalled, and we informed authorities to make sure these products are off shelf and consumers are informed and are kept safe. We moved fast, others didn't. And maybe the critique is in on that side. But Nestlé was really fast, and I'm proud of this, and I'm proud of how our team reacted to recall swiftly and, you know, always with the consumer's health at the center of everything we do.

Speaker #5: We also said that the broader consumer impact was uncertain. We'll, you know, learn more as we go. That said, it's a sector that we know a lot about.

Others didn't. Um and maybe the the the critique is is uh is is in in in on on on on on on that side. Uh but but Nestle was was really fast uh and and I'm proud of this.

And I'm proud of how our team reacted uh to recall swiftly and um, you know, always with the consumer's Health uh, at at at the center of everything we do.

Speaker #5: We work very closely with doctors and also regulators, and so that's what has given us confidence to wrap all of that potential impact together in the guidance that we're giving today.

we can take 3 short questions, uh, first class, Bona Noemi srf

Philipp Navratil: Mm-hmm.

Anna Manz: And so that's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4%, organic growth.

Class, please go ahead.

Speaker #5: Of around 3% to up to 4%, organic growth.

Claus.

Speaker #2: Good. And then, and then w- when it comes to the speed of the recall, look, I- I want to be very clear. We were very fast in- in- in recalling when we found out about the issue.

Philipp Navratil: Good. And then, when it comes to the speed of the recall... Look, I want to be very clear, we were very fast in recalling when we found out about the issue. And we not only found out about the issue, we also informed authorities, and we informed healthcare professionals and industry associations to make sure, you know, this knowledge gets beyond Nestlé. Because we knew that the supplier that we sourced this ingredient from was a supplier that would also source to other companies. But that's another story. What we have done over the holidays, when we found out about the issue, we immediately worked together with authorities and recalled as fast as we could, so, and that includes Switzerland.

Christoph: We can take three short questions. First, Klaus Bonanomi, SRF. Klaus, please go ahead. Klaus, we will get back to you. Looks like we have a technical issue. We are back to Matthias Benz, and then Hannah Cleaver, and then go back to Klaus, if he's around, and then we need to close. Matthias, please go ahead.

Christoph Meier: We can take three short questions. First, Klaus Bonanomi, SRF. Klaus, please go ahead. Klaus, we will get back to you. Looks like we have a technical issue. We are back to Matthias Benz, and then Hannah Cleaver, and then go back to Klaus, if he's around, and then we need to close. Matthias, please go ahead.

We will get back to you. Looks like we have a technical issue. Uh we are back to Matias Pence and then hanai and then

go back to Klaus if he's around and then we need to close Matias. Please go ahead.

Speaker #2: And we not only found out about the issue, we also informed authorities. And we informed healthcare professionals and industry associations to make sure, you know, this knowledge gets beyond Nestlé, because we knew that the supplier that we sourced this ingredient from was a supplier that would also source to other companies.

The question on the Chinese supplier of this R oil.

Why did you choose him in the first place? Was that for cost reasons?

Speaker #2: But that's—then that's another story. What we have done over the holidays, when we found out about the issue, we immediately worked together with authorities and recalled as fast as we could.

Matthias Benz: We have another question on the German supplier of this ARA oil. Why did you choose him in the first place? Was that for cost reasons? The second question would be, was it the only supplier you had, or, are there or were there different suppliers for that product? Thanks.

Speaker #2: So, and that includes Switzerland. So there was not, not—there was no delay that I'm aware of, that, you know, we have waited and, and, and seen when the issue was detected.

Philipp Navratil: So there was not—there was no delay that I'm aware of that, you know, we have waited and seen. When the issue was detected, we immediately recalled, and we informed authorities to make sure these products are off shelf and consumers are informed and are kept safe. So we moved fast, others didn't. And maybe the critique is on that side. But Nestlé was really fast, and I'm proud of this, and I'm proud of how our team reacted to recall swiftly and, you know, always with the consumer's health at the center of everything we do.

Speaker #2: We immediately recalled. And we informed authorities to make sure these products are off-shelf and consumers are informed, and are kept safe. So we moved fast.

Philipp Navratil: Yeah, thanks for the question. Look, they're linked because there was, in the past, only one supplier, which is a risk, obviously, in such an ingredient. We chose the supplier that then generated the issue to have a second supplier in place. The supplier was checked and audited, was vetted, and was cleared by our quality assurance. Obviously, what happened then, that they somehow in the process, didn't have the process in control. It was not about the cost reason at all. It was about making sure that we have, you know, that we can ensure supply of this important ingredient to produce infant formula.

And the second question would be, uh, was it the only supplier you had or, uh, are there were, there are different suppliers, uh, for that product, thanks. Yeah, thanks for the question look. And they're linked, um, uh, because there was in the past, only 1 supplier and, um, which is a risk, obviously, in, in such an ingredient. And, and, and we true, we chose, uh, the, the supplier, uh, that generated the issue, um, to have a second supplier in place. Uh, the supplier was, um, was checked and audited. And, and, and, and, and, and, and, and, and was uh, was vetted and was

Uh, was cleared by a quality assurance and and obviously what happened. Then that they

Speaker #2: Others didn't. And maybe the, the, the critique is, is, is, is in, in, in on, on, on that side. But, but Nestlé was, was really fast, and, and I'm proud of this.

Speaker #2: And I'm proud of how our team reacted, to recall swiftly and, you know, always with the consumers' health at the center of everything we do.

Speaker #1: We can take three short questions. First, Klaus Bonanomi, SRF. Klaus, please go ahead. Klaus? We will get back to you, looks like we have a technical issue.

Operator: We can take three short questions. First, Klaus Bonanomi, SRF. Klaus, please go ahead. Klaus, we will get back to you. Looks like we have a technical issue. We are back to Matthias Benz, and then Hannah Ciardi, and then go back to Klaus, if he's around, and then we need to close. Matthias, please go ahead.

Philipp Navratil: There are several suppliers, so now we have stopped sourcing from that concerned supplier, and we source from other suppliers. All of the ARA oil that comes into our factory is now tested. We test the oil before it goes into production, and we test during production, and we test when the product comes out of production. We are 100% sure that all of our products are 100% safe to be consumed by babies out there.

In the product comes out of production. So we are 100% sure that um, all of our products, uh, are are 100% safe uh, to be consumed by uh, by babies out there.

Speaker #1: We are back to Matthias Benz, and then Hanna Siardi. And then we'll go back to Klaus if he's around. And then we need to close.

We're going to take a question from Hannah seade.

CNN.

Speaker #1: Matthias, please go ahead.

Hi, thank you so much for coming back to me. Um,

Matthias Benz: We have a question on the German supplier of this ARA oil. Why did you choose him in the first place? Was that for cost reasons? And the second question would be, was it the only supplier you had or, or were there different suppliers, for that product? Thanks.

Speaker #6: Well, sorry. I have another question on the Chinese supplier of this ARA oil. Why did you choose him in the first place? Was that for cost reasons?

Speaker #6: And the second question would be, was it the only supplier you had? Or, are there or were there different suppliers for that product? Thanks.

Christoph: We're going to take a question from Hannah Cleaver, CNN.

Christoph Meier: We're going to take a question from Hannah Cleaver, CNN.

Hanna Ziady: Hi, thank you so much for coming back to me. Just to go back to ice cream, you mentioned that it was a distraction. Can you say just a little bit more on why it is that you're actually selling this business? Because, sort of echoes a little bit maybe the reasons that Unilever gave, you know, several years ago, which kind of came down to, I think, ice cream, as they called it, distinct characteristics. You know, it's season-dependent, the supply chain can be more complex because it needs to be able to support frozen goods. Is that? You know, or your reasons some of the same as that? Can you just sort of spell out a little bit more why sell ice cream?

Speaker #2: Yeah, thanks for the question. Look, they're linked, because in the past, there was only one supplier, which is a risk, obviously, in such an ingredient.

Philipp Navratil: Yeah, thanks for the question. Look, they're linked because there was, in the past, only one supplier, which is a risk, obviously, in such an ingredient. We chose the supplier that then generated the issue to have a second supplier in place. The supplier was checked and audited and was vetted and was cleared by our quality assurance. And obviously, what happened then that they somehow in the process didn't have the process in control, but it was not about the cost reason at all. It was about making sure that we have, you know, that we can ensure supply of this important ingredient to produce infant formula.

Speaker #2: And, and, and we cho—we chose, the, the, the supplier that then generated the issue, to have a second supplier in place. The supplier was, was checked and audited and, and, and, and, and, and, and was, was vetted and was, was cleared by quality assurance.

Speaker #2: And, and obviously, what happened then, that they somehow, in the process, didn’t have the process in, in, in control. But it was not about the cost, cost reason at all.

just to go back to ice cream. Um, you mentioned that it was a distraction. Uh, can you say it just a little bit more on on 1. It is that you actually setting this business because, um, sort of Echoes a little bit. Maybe the reasons that uni, lever gave, you know, several years ago which kind of came down to I think ice cream as they called it distinct characteristics. So, you know, it's seasoned dependent the supply chain can be more complex because it needs to be able to support Frozen Goods is that, you know, or your or your reason some of the same is that or can you just sort of spell out a little bit more? Why so ice cream? Yeah, sure. Look it it is a distraction when I say it's a distraction is is something that we're not focused on because we only have 6 scattered business across the world and and this is an ice cream business, as you said yourself. You know, it's seasonal. You it's it's frozen. Frozen supply chain. Uh, it is highly brand driven, uh, and you need, you need some scale to, to, to drive this

Philipp Navratil: Yeah, sure. Look, it, it is a distraction. When I say it's a distraction, it's, it's something that we're not focused on because we only have six scattered business across the world, and, and this is an ice cream business. As you said yourself, you know, it's seasonal, it's, it's frozen supply chain, it is highly brand driven, and you need, you need some scale to, to, to drive this. Froneri has exactly that. That was when, when in, you know, the in the first time when, when we set up the Froneri business, that was the idea. We, we held on to those six businesses because we thought we could, we could, drive, you know, growth. Looking at it now, we have these six businesses, which, you know, they, they don't have any global scale.

Speaker #2: It was about making sure that we have, you know, that we can ensure supply of this important ingredient to produce infant formula. And there are several suppliers.

Philipp Navratil: There are several suppliers, so now we have stopped sourcing from that concerned supplier, and we source from other suppliers. And all of the ARA oil that comes into our factory is now tested. So we test the oil before it goes into production, and we test during production, and we test when the product comes out of production. So we are 100% sure that all of our products are 100% safe to be consumed by babies out there.

Speaker #2: So now we have stopped sourcing from that concerned supplier, and we source from other suppliers. And all of the ara oil that comes into our factory is now tested.

And forrer has exactly that. And that was when, when in, you know, the in the first time and when we set up the funerary business, uh, that was the idea and we we held on to those 6 businesses because we thought we could, uh, we could, uh, Drive, uh, you know growth.

Speaker #2: So we test the oil before it goes into production and we test during production and we test when it comes when the when the product comes out of production.

Speaker #2: So we are 100% sure that all of our products are 100% safe to be consumed by babies out there.

Speaker #1: We're going to take a question from Hanna Siardi, CNN.

Operator: We're gonna take a question from Hannah Ciardi, CNN.

Operator: We're gonna take a question from Hanna Ziardy, CNN.

Philipp Navratil: We cannot, we cannot drive this the same way that Froneri can. That's why we think because all of that, Froneri has all of those capabilities. They know exactly how to drive a seasonal business. They have scale, they have the knowledge, and, and they have the brands, and they have shown this in all other markets where we have sold them our business, that they can drive great growth and success. The same should happen with those six businesses. That, that's what I mean with, with the distraction. We, we will, we will not, we will not, you know, invest more in those businesses where we don't have the capabilities and, and, and the scale that we need to be successful, and Froneri has.

Speaker #7: Hi, thank you so much for coming back to me. Just to go back to ice cream, you mentioned that it was a distraction. Can you say just a little bit more on why it is that you're actually selling this business?

Hanna Ziady: Hi, thank you so much for coming back to me. Just to go back to ice cream, you mentioned that it was a distraction. Can you say just a little bit more on, on why it is that you're actually selling this business? Because, sort of echoes a little bit, maybe the reasons that Unilever gave, you know, several years ago, which kind of came down to, I think ice cream, as they called it, distinct characteristics. So, you know, it's season dependent, the supply chain can be more complex 'cause it needs to be able to support frozen goods. Is that... You know, are your, are your reasons some of the same as that, or can you just sort of spell out a little bit more why sell ice cream?

Speaker #7: Because, it sort of echoes a little bit, maybe, the reasons that Unilever gave, you know, several years ago. Which kind of came down to, I think, ice cream, as they called it—distinct characteristics.

Speaker #7: So, you know, it's season-dependent. The supply chain can be more complex because it needs to be able to support frozen goods. Is that what I mean, or are your reasons some of the same?

And looking at it. Now we have these 6 businesses which, uh, you know, they don't have any global scale. Um, we cannot we cannot drive this, uh, the same way that fur can. And that's why we think because all of that fur has all of those capabilities, they know exactly how to drive, uh, seasonal business they have, uh, scale. They have the knowledge and, and they have the brands, and they have shown this in all other markets, where, um, we have sold them our business that they can drive, uh, great growth, uh, and success. And so the same should happen with those, uh, 6 businesses. So that, that's what I mean with the distractions. So we we will, we will not, we will not uh, you know, uh, invest more in those businesses where we don't have the capabilities and and and the scale that we need to be successful and from there it has. And and so they are the right owner for for those uh great 6 businesses because they're they're great 6 businesses and and they have a lot a lot of potential.

Thank you before we conclude let's try Claus bonanomi again.

Speaker #7: Is that, or can you just sort of spell out a little bit more why sell ice cream?

Whether we can connect.

Philipp Navratil: They are the right owner for those great 6 businesses, because they're great 6 businesses, and they have a lot of potential.

Speaker #2: Yeah. Sure. Look, it is—when I say it's a distraction, it is something that we're not focused on because we only have six scattered businesses across the world.

Philipp Navratil: They are the right owner for those great 6 businesses, because they're great 6 businesses, and they have a lot of potential.

Philipp Navratil: Yeah, sure. Look, it is a distraction. When I say it's a distraction, it's something that we're not focused on because we only have six scattered business across the world, and this is an ice cream business. As you said yourself, you know, it's seasonal, you know, it's frozen supply chain, it is highly brand driven, and you need some scale to drive this. And Froneri has exactly that. And that was when, in you know, the first time when we set up the Froneri business, that was the idea. And we held on to those six businesses because we thought we could drive you know, growth. And looking at it now, we have these six businesses, which you know, they don't have any global scale.

Claus.

Doesn't seem to be the case that seems to be a technical problem. Sorry for that.

Speaker #2: And, and this is an ice cream business, as you said yourself. You know, it's seasonal. It's a frozen supply chain. It is highly brand-driven.

Christoph: Thank you. Before we conclude, let's try Klaus Bonanomi again, whether we can connect. Klaus? Doesn't seem to be the case. There seems to be a technical problem. Sorry for that. Thank you so much for your participation this morning. Our lines are open. If you have any further questions, call our media relations number. We're happy to assist, and we wish you a great day. Thank you so much.

Christoph Meier: Thank you. Before we conclude, let's try Klaus Bonanomi again, whether we can connect. Klaus? Doesn't seem to be the case. There seems to be a technical problem. Sorry for that. Thank you so much for your participation this morning. Our lines are open. If you have any further questions, call our media relations number. We're happy to assist, and we wish you a great day. Thank you so much.

Speaker #2: and you need you need some scale to, to, to drive this. And Froneri has exactly that. And that was when, when in the, you know, the in the first time and w-when we set up the Froneri business, that was the idea.

Um, thank you so much, uh, for your participation this morning. Um, our lines are open. If you have any further questions, uh, call, our media relations number. We're happy to assist and we wish you a great day. Thank you so much.

Speaker #2: And we, we held on to those six businesses because we thought we could, you know, drive growth. And looking at it now, we have these six businesses which, you know, they, they don't have any global scale.

Philipp Navratil: We cannot drive this the same way that Froneri can. And that's why we think because all of that, Froneri has all of those capabilities. They know exactly how to drive a seasonal business. They have scale, they have the knowledge, and they have the brands, and they have shown this in all other markets where we have sold them our business, that they can drive great growth, and success. And so the same should happen with those 6 businesses. So that, that's what I mean with the distraction. So we will not, you know, invest more in those businesses where we don't have the capabilities and the scale that we need to be successful, and Froneri has.

Speaker #2: We cannot drive this the same way that Froneri can. And that's why we think, because of all that, Froneri has all of those capabilities. They know exactly how to drive seasonal business.

Speaker #2: They have scale. They have the knowledge, and they have the brands. And they have shown this in all other markets where we have sold them our business, that they can drive great growth.

Speaker #2: and success. And so the same should happen with those, six businesses. So that, that's what I mean wi-with the distraction. So we're, we will we will not we will not, you know, invest more in those businesses where we don't have the capabilities and, and, and the scale that we need to be successful.

Speaker #2: And Froneri has. And, and so they are the right owner for those great six businesses because they’re great six businesses. And, and they have a lot, a lot of potential.

Philipp Navratil: So they are the right owner for those great six businesses, because they're great six businesses, and they have a lot of potential.

Speaker #1: Thank you. Before we conclude, let's try Klaus Bonanomi again. Whether we can connect—Klaus? Doesn't seem to be the case. There seems to be a technical problem.

Operator: Thank you. Before we conclude, let's try Klaus Bonanomi again, whether we can connect. Klaus? Doesn't seem to be the case. There seems to be a technical problem. Sorry for that. Thank you so much for your participation this morning. Our lines are open. If you have any further questions, call our media relations number. We're happy to assist, and we wish you a great day. Thank you so much. Welcome to Our Media Q&A for Full Year Results of 2025. Thank you for joining us this morning. This is Christophe speaking. I'm joined by Philipp Navratil and Anna Manz this morning. I trust you have all had a chance to watch the investor Q&A this morning and the presentation, so we will move straight into your questions. But before we begin, please take a moment to review the disclaimer on your screen. Thank you.

Speaker #1: Sorry for that. Thank you so much for your participation this morning. Our lines are open. If you have any further questions, call our media relations number.

Speaker #1: Welcome to our media Q&A for full year results 2025 . Thank you for joining us this morning . This is Christoph speaking . I'm joined by Philipp Navratil and Ana .

Speaker #1: This morning, I trust you have all had a chance to watch the investor Q&A this morning, and the presentation. So we will move straight into your questions.

Speaker #1: But before we begin . Please take a moment to review the disclaimer on your screen Thank you Now , if you would like to ask a question , please raise your hand on your zoom feature When I call your name , you can unmute yourself and go ahead with your question And once your question has been answered , you will be automatically put back on mute to ensure that everyone has a chance to ask a question and to contribute to this session , please limit yourself to two questions at a time Now we're waiting for the first question to come in First question is from Matthias Bentz .

Operator: Now, if you would like to ask a question, please raise your hand on your Zoom feature. When I call your name, you can unmute yourself and go ahead with your question, and once your question has been answered, you will be automatically put back on mute. To ensure that everyone has a chance to ask a question and to contribute to this session, please limit yourself to two questions at a time. Now, we're waiting for the first question to come in. First question is from Matthias Benz, the NZZ. Good morning, Matthias, please go ahead.

Speaker #1: He answered, said, "Good morning, Matthias. Please go ahead."

Speaker #2: Good morning. Can you hear me?

Matthias Benz: Good morning. Can you hear me?

Speaker #1: Yes , perfectly

Operator: Yes, perfectly.

Speaker #2: Great . So thanks for your time . I have a question on this presser . As Nestlé Health Science will disappear as a separate unit , should that not also mean that Nespresso will actually disappear as a globally managed business ?

Matthias Benz: Great. So thanks for your time. I have a question on Nespresso. As Nestlé Health Sciences will disappear as a separate unit, should that not also mean that Nespresso will actually disappear as a globally managed business, because it's integrated into the new coffee pillar? And the second question would be, as you now focus more on these four pillars of product categories, will there be a new heads for these four pillars? Thanks.

Speaker #2: Because it's integrated into the new coffee pillars. And the second question would be: as you now focus more on these four pillars of product categories, will there be new heads for these four pillars?

Speaker #2: Thanks

Speaker #3: Yeah , I'll take those . Matthias . Good . Good to have you Look on on on espresso and should that be folded in in some way to coffee .

Philipp Navratil: Yeah. I'll take those, Matthias, good, good to have you. Look, on Nespresso, and should that be folded in some way to coffee? Look, no, it's not the case. You know, Nespresso, if you look at it, Nespresso has a very distinct business model in that sense. So Nespresso is a direct-to-consumer business. Since the very beginning, it's 40 years now, this year in Nespresso, and since the very beginning, it's a direct-to-consumer business. It is a business that is based on a system, and so there is, there's many reasons to keep this business as a globally managed business.

Speaker #3: Look . No , it's not the case . You know , Nespresso . If you look at it , Nespresso has a very distinct business model in that sense , Nespresso is a direct to consumer business .

Speaker #3: Since the very beginning . It's 40 years now . This year , Nespresso and and since the very beginning , it's a direct to consumer business .

Speaker #3: It is a business that is based on a system. And so, there are many reasons to keep this business as a globally managed business.

Speaker #3: Also, if you look at it, how it is set up from the very beginning, all of the production is here in Switzerland.

Philipp Navratil: Also, if you look at it, how it is set up from the very beginning, all of the production is here in Switzerland. And then we drive a successful global, true global brand that looks the same in each and every market from Switzerland. For the time being, we don't see any reason to integrate that. And then there is anyway very good collaboration with coffee already. If you look at it, what we have launched, you know, in the Nespresso factories, we produce also the capsules that are branded on the Starbucks and on the Nescafé.

Speaker #3: And then we drive a successful global , true global brand that looks the same in each and every market from Switzerland . So for the time being , we don't any , any reason to to integrate that .

Speaker #3: And then there is anyway very good collaboration with coffee already . If you look at it , what we have launched , you know , in the , in the Nespresso factories that produce also the capsules that are branded under Starbucks and under Nescafe .

Speaker #3: And so there is obviously already an overlap that we, that we collaborate from the Nespresso part with the coffee business to drive.

Philipp Navratil: And so there is obviously already an overlap that we collaborate from the Nespresso part with the broader coffee business to drive, again, a category growth, not only the brand Nespresso, but the category, which is portion coffee, which we are by far the number one, the number one company, and Nespresso is the number one brand in this space. So that's on Nespresso. And then the four pillars. Look, now the four pillars, they don't have a P&L responsibilities. The four pillars, you can look at them as strategic business units, as we have had up to now. So there will be a head of the coffee strategic business unit.

Speaker #3: Again , a category growth , not only the brand Nespresso , but the category which is portion coffee , which we are by far the number one .

Speaker #3: The number one company in is the is the number one brand in this in this space . So that's an espresso . And then the four pillars look now the four pillars there they they they don't have a PNL responsibility .

Speaker #3: So four pillars you can you can look at them as , as strategic business units . As we as we have had up to now .

Speaker #3: So, there will be a head of the Coffee Strategic Business Unit. There is one person in place; that's the position that I have had in the past.

Philipp Navratil: There is one person in place, the position that I have had in the past. There is a head of the strategic business unit for pet food. There will be a head of the strategic business unit for the unified nutrition one, and then on food and snacks, and each one of those has a head of the strategic business units. And the head of all of that is David Rennie, who leads strategic business units and sales and marketing at Nestlé. So it's not a case to build a new structure around this. It's about driving clarity and focus for driving growth in the company.

Speaker #3: There is a head of the Strategic Business Unit for pet food. There will be a head of the Strategic Business Unit for the Unified Nutrition one, and then on food and snacks, and each one of those has a head of Strategic Business Units.

Speaker #3: And the head of all of that is David Rennie, who leads Strategic Business Units, and Sales and Marketing at Nestlé.

Speaker #3: So there's not not a , not a case to build a new , a new structure around this . It's about driving clarity and focus for for driving growth in the company

Speaker #1: Thanks a lot. The next question is from Alexander Marro, Reuters. Alex, please go ahead.

Operator: Thanks a lot. The next question is from Alexander Marrow, Reuters. Alex, please go ahead.

Speaker #4: Hi there . Thanks for taking my question . Just on the sale of the remaining ice cream businesses , can you give an idea of how much how valuable these assets are that you're looking to sell ?

Alexander Marrow: Hi there. Thanks for taking my question. It's just on the sale of the remaining ice cream businesses. Can you give an idea of how much, how valuable these assets are that you're looking to sell? And any more clarity on the sort of timing of a deal. And does this mean that you're not planning to exit the JV with Froneri, or are you doubling down on that? Thank you.

Speaker #4: And any more clarity on the sort of timing of a deal? And does this mean that you're not planning to exit the JV with Froneri, or are you doubling down on that?

Speaker #4: Thank you

Speaker #3: Yeah , I can give you I can give you some of those some of those numbers . Look , the ice cream business we have said it's it's in six markets .

Philipp Navratil: Yeah, I can give you some of those numbers. Look, the ice cream business, we have said it's in six markets. It's shy of CHF 1 billion in terms of sales, and we'll get that. It's a staggered approach, so because it's six markets in different geographies, we will get those integrated into Froneri during this year and the beginning of next year. This is what the plan is. And there is no plans to exit the JV with Froneri. We're really happy with the performance that Froneri is driving.

Speaker #3: It's this is shy of 1 billion CHF in terms of , in terms of sales and will will , will get that . It's a staggered approach .

Speaker #3: So because it's six markets in different geographies , we will we will get those integrated into into Froneri during this year , in the beginning of next year .

Speaker #3: This is this is what what the plan is . And there is there is there is no there is no plans to exit the JV with Froneri .

Speaker #3: We're really happy with the performance that Fournier is driving and selling . Selling the ice , the remaining ice cream business of Nestlé into into Froneri is is our strong belief that Froneri is the right owner for those businesses and will drive a better performance that we will do going forward .

Philipp Navratil: And selling the remaining ice cream business of Nestlé into Froneri is our strong belief that Froneri is the right owner for those businesses, and we own half of Froneri, and we are happy with the job they're doing so far.

Speaker #3: And we own, have half of half of our area, and we're really happy with the job they're doing so far.

Speaker #1: Very good. The next question is from Financial Ivo. Please go ahead.

Operator: ... Very good. The next question is from Ivo Ruch, Finanz und Wirtschaft. Ivo, please go ahead, Ivo.

Speaker #5: Good morning everyone . Thank you . So my question is also regarding the the new strategic pillars . Can we assume now that that your assessment of the portfolio is now kind of finished or , or do you have a further adjustments in mind given there are some still some weak businesses in your portfolio , or should we assume that ?

Speaker #5: I mean , looking forward , you your constantly reviewing all of the of the of the businesses as you did in the past couple of weeks ?

Speaker #3: Yeah . Look , it's a good question . Look , it's , it's it's never finished . Is it . And what we are doing I mean , we're not we're not constantly looking at it .

Philipp Navratil: Yeah, look, it's a good question. Look, it's never finished, is it? What we are doing, I mean, we're not constantly looking at it, but periodically with Anna and the team and the board, we're looking obviously at the whole portfolio and look if we need to take action. What we are doing is quite substantial if you look at it, you know, ice cream, we have mainstream VMS that will move forward soon. Waters, we have announced that that has now been launched. All of these processes, obviously, it's quite a distraction for the company. So for the time being, there's nothing new to announce.

Speaker #3: But periodically with Anna and the team and the board , we're looking at the whole portfolio . And look if , if , if we need to take action , what we are doing is quite substantial .

Speaker #3: If we look at it , you know , ice cream , we have mainstream VMs that that will move forward soon . Waters .

Speaker #3: We have announced that that is now—has now been launched. And all of these processes—obviously, it's quite a distraction for the company.

Speaker #3: So for time being , there's nothing new to announce . We will periodically review our our portfolio and we will shape it to to make sure we have the right , the right profile to deliver the growth .

Philipp Navratil: We will periodically review our portfolio and we will shape it to make sure we have the right profile to deliver the growth. But the company is really what we are focusing on at the moment is truly on growth, which we believe is the largest opportunity we have to drive shareholder value going forward. And, you know, each of those processes is a distraction, so we take them step by step. But for time being, there's nothing new to announce, and we're periodically reviewing where we need to review, and we'll take the decisions quickly without, you know, without a lot of, you know, with a data-based approach, if we need to action something.

Speaker #3: But the company is really what what we're focusing on at the moment is truly on on growth , which we believe is , is is the largest opportunity we have to drive shareholder value going forward .

Speaker #3: And , you know , each of those processes is a distraction . So we , we we take them step by step . But for the time being , there's nothing new to announce .

Speaker #3: And we're we're periodically reviewing where we need to review . And we'll take the decisions quickly without , you know , without a lot of , you know , with , with the data based approach , if we need to action something

Speaker #1: Perfect , we're moving to CNN . Hannah from CNN , please , Hannah . Go ahead .

Operator: Perfect. We're moving to CNN. Hannah Ciardi from CNN. Please, Hannah, go ahead.

Speaker #6: Hi there. Thanks. Can you hear me?

Hanna Ziady: Hi there. Thanks. Can you hear me?

Speaker #1: Yes, sir. I can hear you.

Operator: Yes, ma'am, we-

Hanna Ziady: Great.

Operator: We can hear you.

Speaker #6: Thanks . Thank you . I'm afraid I didn't . I wasn't able to join the investor call this morning , so apologies if if this will be a repetition for you , but two questions , if I may .

Hanna Ziady: Thanks. Thank you. I'm afraid I didn't... I wasn't able to join the investor call this morning, so apologies if, if this will be a repetition for you. But, two questions, if I may. One is on ice cream, just whether the sort of push by consumers towards, you know, healthier lifestyles and the rise of these GLP-1 drugs, has- does that have anything to do with the sale of this, or does the sort of sale process long predate that? Can you just comment on, you know, whether that's played any role in your thinking? And then just one question, if I may, on the infant formula recalls.

Speaker #6: One is on ice cream. Just whether the sort of push by consumers towards healthier lifestyles and the rise of these GLP-1 drugs has...

Speaker #6: Does that have anything to do with the sale of this, or does this sort of sale process long predate that? Can you just comment on whether that's played any role in your thinking?

Speaker #6: And then just one question , if I may , on the infant formula recalls , I realize that , you know , there's an ongoing process there , at least in France , which with French health authorities investigating the deaths of three infants who were believed to have consumed the recalled products .

Hanna Ziady: I realize that, you know, there's an ongoing process there, at least in France, which with French health authorities investigating the deaths of three infants who were believed to have consumed the recalled product. Can you just speak to, you know, is Nestlé in contact with French health authorities? Is the company implicated, potentially? I realize there's no link yet been made, but was it Nestlé's products that are implicated or another company's products? And then just any, you know, any new developments with regard to the formula recall, and any ongoing investigations would be great. Thank you.

Speaker #6: Can you just speak to , you know , is Nestlé in contact with with French health authorities ? Is the company implicated ? Potentially ?

Speaker #6: I realized there's no link yet been made , but is it Nestlé's products that are implicated or another company's products ? And then just just any , you know , any new developments with regard to the the formula recall and any ongoing investigations would be great .

Speaker #6: Thank you .

Speaker #3: Yeah . Good . Thanks . Thanks for the question , Hannah . Look on on ice cream . No , it has nothing to do with GLP one .

Philipp Navratil: Yeah, good. Thanks. Thanks for the question, Hannah. Look, on ice cream, no, it has nothing to do with GLP-1. You know, interestingly enough, the ice cream category shows still, you know, mid-single digit growth consistently. So that category has not yet been affected. And I believe, while GLP-1 patients, they might, you know, eat less ice cream, they will change how they will eat it and how often. And Froneri is focused on that category and will be the best owner. But GLP has not been a thought for us. It's really we have six remaining businesses.

Philipp Navratil: Yeah, good. Thanks. Thanks for the question, Hanna. Look, on ice cream, no, it has nothing to do with GLP-1. You know, interestingly enough, the ice cream category shows still, you know, mid-single digit growth consistently. So that category has not yet been affected. And I believe, while GLP-1 patients, they might, you know, eat less ice cream, they will change how they will eat it and how often. And Froneri is focused on that category and will be the best owner. But GLP has not been a thought for us. It's really we have six remaining businesses.

Speaker #3: You know , interestingly enough , the the ice cream category shows still , you know , mid-single digit growth consistently so that category has not yet been been affected .

Speaker #3: And I believe while GLP one patients , they they they might , you know , eat less ice cream , they will they will they will change how they , how they will eat it and how often and froneri is , is , is focused on that category and will be the best owner .

Speaker #3: But GLP has not been a thought for us. It's really, we have six remaining businesses. We have sold all the rest to Froneri, and those six have been, or are, a distraction for us.

Philipp Navratil: We have sold all the rest to Froneri, and those six have been or are a distraction for us, if you look at the rest of our portfolio, and that, that was behind it. And we believe Froneri will be the right company to drive the right focus and the drive, the right marketing to drive this to growth. So not GL, GLP-1 connected. Look, on the... On your question on infant formula. Look, first of all, we obviously we're saddened by the news that, you know, three babies have died. There is no link today to any infant formula product, nor to Nestlé nor to anyone else's.

Speaker #3: If you look at the rest of our portfolio and that that was behind it, and we believe Froneri will be the right company to drive the right focus and drive the right marketing to drive this to, to, to growth.

Speaker #3: So not GLP one connected . Look on on the on your your question on on infant formula . Look first of all we we we obviously we're saddened by the news that you know three three babies have have have died .

Speaker #3: There is no link today to any infant formula product, nor to Nestlé nor to anyone else's. There is an investigation ongoing and we are as far as we, we, we need.

Philipp Navratil: There is an investigation ongoing, and as far as we know, we have not been contacted by the authorities, and we will obviously collaborate and inform as we go. But today there is no clear link, and Nestlé has not been implicated. And as I have said before, our main focus is quality, safety, and the quality of our products and the health and safety of our consumers, and that has always been at the center of what we do. Also, during this recall, as we were the first in the industry to recall our products, and the industry followed suit almost a month later. So we were always guided by the principle of consumer safety at the center of everything we do.

Speaker #3: We have not been contacted by the authorities and will obviously collaborate and inform as we go. But today there is no clear link and Nestlé has not been implicated.

Speaker #3: And as I have said before, our main focus is quality, safety, and the health and quality of our products, and the health and safety of our consumers.

Speaker #3: And that has always been at the center of what we do . Also during that , this recall , as we were the first in the industry to recall our products and the industry followed suit almost a month , a month later .

Speaker #3: So we will always be guided by the principle of consumer safety at the center of everything we do.

Speaker #1: The next question is from Thomas Oswald , AWP . Good morning , Thomas Thomas , you can unmute yourself .

Operator: The next question is from Thomas Oswald, AWP. Good morning, Thomas... Thomas, you can unmute yourself.

Speaker #7: Yes . Good morning . Can you hear me ? Hello again . Thanks for taking the question . I have a follow up to the infant formula .

Thomas Oswald: Yes, good morning.

Operator: Yeah, good morning.

Thomas Oswald: Can you hear me? Hello again. Thanks for taking the question. I have a follow-up to the infant formula recall. Are you taking any legal action against your supplier in China? And maybe, have you made any provisions for potential legal cases, which you're maybe facing?

Speaker #7: Recall. Are you taking any legal action against your supplier in China, and maybe have you made any provisions for potential legal cases which you might be facing?

Speaker #3: Yeah . Thank you . Thomas . Look , we we will we will obviously reserve the right to take legal actions . We have not done .

Philipp Navratil: Yeah. Thank you, Thomas. Look, we will obviously reserve the right to take legal actions. We have not done that so far. Focus of the company has been on the recall, and is now on replenishing the stocks. That is where we're focused on, and then we will see what needs to be done on the legal side. We have not done any provision so far. So we'll work that through as we need, but focus is really on getting the market restocked. That is where we're focused on at the moment.

Speaker #3: We have not done that so far. The focus of the company is, and has been, on the recall and is now on replenishing the stocks.

Speaker #3: That is where we're focused on . And then we will we will see what needs to be done on the legal side and and we have not done any , any provisions so far .

Speaker #3: So we'll we'll work that through as , as we need . But focus is really on , on , on getting the market restocked .

Speaker #3: That—that is where we're, we're focused on at the moment.

Speaker #1: An additional question from Madeline Speed, Financial Times. Good morning, Madeline.

Operator: An additional question from Madeline Speed, Financial Times. Good morning, Madeline.

Speaker #8: Hi . Morning . I wanted to ask what the focusing on for businesses means in practice . What in concrete terms will that change ?

Madeleine Speed: Hi, morning. I wanted to ask what the focusing on four businesses means in practice? What in concrete terms will that change? And then the second question is on the L'Oréal stake. There's obviously a lot of questions from impatient investors about that. What's the rationale for staying in there? Thanks so much.

Speaker #8: And then, second question is on the L'Oréal stake. There's obviously a lot of questions from impatient investors about that. What's the rationale for staying in there?

Speaker #8: Thanks so much .

Speaker #3: Thanks , Madeleine . I'll talk to your business and I'll , I'll I'll have to talk to to L'Oreal quickly . Look , the focus on on on on for for businesses is truly that so it's it's focused for the company .

Philipp Navratil: Yeah, thanks, Madeline. I'll talk to four business, and I'll have Anna talk to L'Oréal quickly. Look, the focus on four businesses is truly that. So it's focus for the company. It's focusing on coffee, pet care, nutrition, and food and snacks. This is where we play. And also what it drives is clarity of how we play then in the market. And how we play, and I don't know if you had the chance to listen to our investors' presentation. There was one photograph in there where we showed a store in the Philippines, where all of those four categories or four businesses come together as one in one store, executed in one store.

Speaker #3: It's focusing on coffee pet care , nutrition and food and snacks . This is this is where we play . And and also what it what it drives is , is clarity of of how we play it .

Speaker #3: And in the market and how we play . And I don't know if you had the chance to to listen to our to our investors presentation .

Speaker #3: There was one photograph in there where we showed a store in the Philippines where all of those four categories , or four businesses come together as 1 in 1 store , executed in one store , and what's very clear is that , you know , when you look at how we execute at Nestlé , the the execution , the personnel ownership , the connection to consumers , customers is intrinsically located in the market .

Philipp Navratil: And what's very clear is that, you know, when you look at how we execute at Nestlé, the execution, the P&L ownership, the connection to consumers, customers is intrinsically located in the market. So it's owned by the market, close to the consumer. And anything that has to be global needs to be centrally driven from here. Look at brand stewardship, look at long-term brand strategy, ways of working, end-to-end workflows, science-based and technology-based innovation pipelines, et cetera, are globally driven through our strategic business units that are now managed under those four pillars.

Speaker #3: So it's owned by the market close to the consumer. And anything that has to be global needs to be centrally driven from here. Look at brand stewardship.

Speaker #3: Look at long term brand strategy , ways of working , end to end workflows , science based and technology based innovation pipelines , etc.

Speaker #3: are , are are globally driven through our strategic business units that are now managed under those those four pillars . And that least clarity and focus to the to the company as a whole .

Philipp Navratil: And that gives clarity and focus to the company as a whole, and it's obviously in service to drive our ambition to get the company back to 4+ organic growth, which should be real internal growth driven. And on L'Oréal, Anna, if you can give a bit of color to that one.

Speaker #3: And it's obviously in service to drive our ambition to get the company back to four plus percent organic growth, which should be real internal growth driven, and on L'Oréal.

Speaker #3: Anna, if you can give a bit of color to that one.

Speaker #9: Yeah . Just quickly on that one . Steak is a financial stake and we are very dispassionate about it . That said , it's performed very well for us over the years and for our shareholders .

Speaker #9: From our perspective, it's not the biggest route to driving shareholder value right now, nor do we need to dispose of it to deleverage, as we're deleveraging irrespective.

Speaker #9: So our big focus right now is on the biggest driver of shareholder value, which is growth, and everything we're doing is around accelerating growth.

Speaker #1: Thank you for this. Thank you. Yes, Marlaine. Yes, I think we are—we continue with Benjamin Weinman, media.

Operator: Thank you for this.

Anna Manz: Thanks.

Operator: Yep. Madeline, yes? I think we are... We continue with Benjamin Weinmann, CH Media.

Speaker #10: Yes. Good morning, everyone. And I also have a question regarding the infant nutrition recall during your presentation. You mentioned that obviously there's also learnings, despite the high standards of quality and safety.

Benjamin Weinmann: Yes, good morning, everyone. I also have a question regarding the infant nutrition recall. During your presentation, you mentioned that obviously there's also learnings, despite the standards of quality and safety. Can you, in simple terms, explain what are these learnings? What concrete measures are you taking to make sure this won't happen again? And how also would you explain to nervous parents, how could this happen in the first place? And second question regarding the brand stewardship with the new four pillars that you mentioned. You gave the example of Nescafé, that it should look the same way, whether it's in Mexico or Switzerland. So would you say until today, there were too many liberties in the local markets being taken?

Speaker #10: Can you, in simple terms, explain what these learnings are? What concrete measures are you taking to make sure this won't happen again?

Speaker #10: And how also , would you explain to nervous parents ? How could this happen in the first place ? And second question regarding the brand stewardship with the new four pillars that you mentioned , you gave the example of Nescafé that it should look the same way , whether it's in Mexico or Switzerland .

Speaker #10: So would you say, until today, there were too many liberties being taken in the local markets?

Speaker #3: Yeah , two good questions . So look , I'll start with the infant formula . Recall . Look , the learnings I think are twofold .

Speaker #3: And it's very clear and it's something we have we have consistently done in the past . But but clearly you know when we look at , at our own facilities and everything that we do internally , we are very high quality standards everywhere in every factory , each and every factory .

Speaker #3: You go many times and many, many places. Those standards are higher than would be required by the law or by any local regulation.

Speaker #3: And obviously our our clear actions is that those same quality standards apply everywhere where we have suppliers or people producing for us . And that is true in this particular in this particular instance .

Philipp Navratil: In this particular instance, obviously, this supplier that supplied this ingredient to us, this was not the case. And it was also not the case because, you know, having cereulide in oil is a very rare occurrence, and that it was, that's why it was not on our radar and not on the industry's radar. We found this issue because of our good manufacturing practices and quality standards that go beyond good manufacturing practices, and we're the first in the industry to find the issue. And it was also, as you have seen, it was not something that was regulated by anyone.

Speaker #3: Also , this supplier that supplied this ingredient to us , this was not the case and it was also not the case because , you know , having ceralyte in oil is a very rare occurrence .

Speaker #3: And that that it was that's why it was not not on our radar and not on , on the industry's radar . We found this issue because of our good manufacturing practices and , and , and quality standards that go beyond good manufacturing practices and were the first in industry to find to find the issue .

Speaker #3: And and it was also , as you have seen , it was not something that was regulated by , by anyone has then been regulated by the European Union .

Philipp Navratil: Has then been regulated by the European Union, and there is now a level that has been put in place from a regulatory point of view. So it's something; the learning there is, you know, these risks move, and we have to be one step ahead of identifying these risks. But obviously, I'm very clear, you know, Cereulide has nothing to do with infant formula, and this is not something that should happen. What I can assure you is that Nestlé has always been and is laser-focused on the quality of its product and the safety and health of consumers, especially when it comes to infant formula.

Speaker #3: And there is now a level that has been put in place from a regulatory point of view . So it's something the learning there is , you know , these risks move and we have to be one step ahead of of identifying these risks .

Speaker #3: But obviously I'm very clear . You know , it has nothing to to do an infant formula . And and this is not not something that that that should happen .

Speaker #3: What I can assure you that Nestlé is , is has always been and is laser focused on the quality of its product and the safety and health of of consumers , especially when it comes to infant formula .

Speaker #3: And , you know , to to parents out there . I apologize for the inconvenience that this this recall has caused . And we are we are shipping safe and utterly controlled product since the recall has done and as as I said , we have recalled one month earlier than any other company out there .

Philipp Navratil: And, you know, to parents out there, I apologize for the inconvenience that this recall has caused, and we are shipping a safe and utterly controlled product since the recall is done. And, as I said, we have recalled one month earlier than any other company out there, and our product that is out there is safe to consume, and we will keep it that way.

Speaker #3: And our product that is out there is safe to consume, and we will keep it that way.

Speaker #1: The Nescafé .

Operator: The Nescafé example.

Speaker #3: Example then on Nescafé , you look , was there too much liberty out there ? Yes . Look , there was because and I can talk to this quite , quite well when , when I took over the Nescafé strategic business unit , you know , you would look at Nescafé across the world and it was Nescafe written , but it was not looking the same .

Philipp Navratil: Then on Nescafé, you look, was there too much liberty out there? Yes, look, there was, because and I can talk to this quite, quite well. When I took over the Nescafé strategic business unit, you know, you would look at Nescafé across the world, and it was Nescafé written, but it was not looking the same; it didn't have the same look and feel. And what then a centrally driven unit can do is to have one design that has now been rolled out across the world. And the Nescafé logo and the Nescafé design looks more or less the same everywhere, without obviously losing the local specificities. So might have, you know, freedom in the framework that local markets can still apply.

Speaker #3: It didn't have the same look and feel . And what then a centrally driven unit can do is to have one design that has now been rolled out across the world , and the Nescafé logo and the Nescafe design looks more or less the same everywhere , without obviously losing the local specificities .

Speaker #3: So it might have , you know , in a framework that local markets can still apply , but a global brand , in my view , has to show up as a global brand .

Speaker #3: The best, the best expression is Nespresso, that it looks the same across the world without any, any freedom in any framework.

Speaker #3: But then all other brands have some freedom in the framework to make it look local , but it should . It should be a recognizable as a as a Nescafé .

Speaker #3: And these are the things that make a lot of sense to have at the global level. Why local markets have the freedom to execute the brand as they wish.

Speaker #1: The next question goes to Daniel Hugli. Cash Daniel, can you hear us? Doesn't seem to work. We will come back to you afterwards and we move to...

Operator: The next question goes to Daniel Hügli, Cash. Daniel, can you hear us? Doesn't seem to work. We will come back to you afterwards, and we move to-

Speaker #1: Can you hear me? Yes, we can hear you.

Daniel Hügli: Can you hear me?

Operator: Ah, yes, we can hear you now.

Speaker #11: Sorry . I have some technical problems here . Good morning . I have a follow up question on the L'Oreal stick . I was not able to follow the investor presentation either .

Speaker #11: I just saw some headlines saying that the sale of L'Oréal stake doesn't have any priority. Can you give us a scenario where the sale of that stake has a priority?

Speaker #3: Okay .

Anna Manz: We are very focused on delivering shareholder returns, and we start from a perspective of what is the fastest way that we improve returns for our shareholders. So our number one priority is doing exactly that, and therefore, our focus, absolutely uniformly across the group, is around accelerating RIG. Because that is what gets our products being eaten and drunk more globally. And accelerating RIG is what also drives margin, it drives cash flow, and it drives returns. So what we said on the call was that was our number one focus.

Speaker #9: We are very focused on delivering shareholder returns, and we start from a perspective of what is the fastest way that we improve returns for our shareholders.

Speaker #9: And so our number one priority is doing exactly that . And therefore our focus . Absolutely uniformly across the group is around accelerating rig , because that is is what gets our products being eaten and drunk more globally .

Speaker #9: And accelerating RIG is what also drives margin. It drives cash flow, and it drives returns. So what we said on the call was that was our number one focus.

Speaker #1: Very good. Next question is from Alain Detra. Venkat, hello, can you unmute yourself? Otherwise, we will come back and go first with Fabian Blumberg.

Operator: Very good. Next question is from Alain Detra, 24 Heures. Alain? Can you unmute yourself? Otherwise, we will come back and go first with Fabienne Kinchelman, Bloomberg. Fabienne? Seems to be a technical issue. Fabienne, can you hear us?

Speaker #1: Fabian, there seems to be a technical issue. Fabian, can you hear us?

Speaker #12: Yeah. Do you hear me now?

Fabienne Kinzelmann: Yeah, do you hear me now?

Speaker #1: Yes , yes .

Operator: Yes. Yes.

Speaker #12: Okay . Yeah . Good morning again . So , regarding the ice cream business sale . And thanks for confirming the Bloomberg Scoop .

Fabienne Kinzelmann: Okay. Good morning again. Regarding the ice cream business sale, and thanks for confirming the Bloomberg scoop. Did I get it right, that the ownership structure of Froneri will not change and that you will keep it like it is today, or if like, will the ownership structure change? And then the other question I have, I looked at a corporate governance report and saw, Philipp, that your predecessor received no compensation upon termination other than his pro-rata base salary until 1 September. What I would like to know, is there still any legal issue to solve with him? Is there anything still has to be, which has to be settled?

Speaker #12: So , did I get it right that the ownership structure of Froneri will not change , and that you will keep it like it is today or is like , will the ownership structure change ?

Speaker #12: And then the other question I have, I looked at a corporate governance report and saw Philip, that your predecessor received no compensation upon termination other than his pro rata base salary until September 1.

Speaker #12: So, what I would like to know is, is there still any legal issue to solve with him? Is there anything that still has to be, which has to be settled?

Speaker #3: Yeah . Thanks , Fabian . Look on ice cream . So there is no there is no change to ownership structure at the moment .

Philipp Navratil: Yeah, thanks, Fabienne. Look, on ice cream, so there is no change to ownership structure at the moment, nothing at all. So Froneri will be a JV as it is today, and we just transferred those six ice cream businesses. We sell that to Froneri, so nothing will change. On corporate governance question, look, I don't know about any legal action. It's not honestly something I spend my time on.

Speaker #3: Nothing at all . So for now , we'll we'll will be a JV as , as as it is today . And we just transfer those six ice cream businesses .

Speaker #3: We sell that to foreign area . So nothing nothing will change . On corporate governance . Question . Look , I don't know about any , any , any legal action .

Speaker #3: It's not honestly something I spend my time on.

Speaker #1: Then next question is from Nathalie Orlov . Or AFP . Natalie , good morning Natalie , can you hear us ? And unmute yourself ?

Operator: Next question is from Natalie Oluff-Ors, AFP. Natalie, good morning. Natalie, can you hear us and unmute yourself? If not, we will come back and go to Erich Burgler, Bilanz. Erich, please go ahead.

Speaker #1: If not, we will come back and go to Eric. Burglar, pylons. Eric, please go ahead.

Speaker #13: Good morning .

Erich Buerkle: Good morning.

Erich Bürgler: Good morning.

Speaker #1: Good morning , good .

Operator: Good morning.

Speaker #3: Morning

Philipp Navratil: Good morning.

Erich Buerkle: To the Nestlé water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? And regarding the water brands, I think you still have around 30 water brands, all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

Speaker #13: To the Nestlé water business. You're looking for a partnership. What kind of partnership exactly is that? Also, is it going to be a joint venture?

Erich Bürgler: To the Nestlé water business, you're looking for a partnership. What kind of partnership exactly? Is that also gonna be a joint venture? Is it also an option to sell the whole business? And regarding the water brands, I think you still have around 30 water brands, all over the world. Will you drop some of them, some of the local brands? Which one will you keep and bring into this partnership you are working on to establish?

Speaker #13: Is it also an option to sell the whole business? And regarding the water brands, I think you still have around 30 water brands.

Speaker #13: All over the world . Will you drop some of them ? Some of the local brands ? Which one will you keep and bring into this partnership you're working on to establish ?

Speaker #3: Yeah , look , in terms of the partners , we said we we , we initiated a process of a partnership . The partnership can take many forms .

Philipp Navratil: Yeah, look, in terms of the partners, we said we initiated a process of a partnership. The partnership can take many forms, so it's not defined yet. But we're looking for a partnership in some way. In terms of brands, it's it comprises all of the brands, and it's then, you know, to the new partner or owner to determine the future of any brands. But it's the perimeter is all of the water brands, global and local.

Speaker #3: So it's not not defined yet , but we're looking for for a partnership in some way in terms of brands . It comprises all of the brands .

Speaker #3: And it's then , you know to the new to the new partner or owner to , to determine the future of , of , of any brands .

Speaker #3: But it's, it's the perimeter, it's all of the water brands, global and local.

Speaker #1: Next question is from Claudia Ganim on Tiger.

Operator: Next question is from Claudia Gneim, Tages-Anzeiger.

Speaker #14: Oh , I hope you can hear me . Yes . And That Nestlé has good manufacturing practices And above standard . I mean , this is this has been written and it's all over the place , right .

Claudia Gnem: Hello, I hope you can hear me?

Claudia Gnehm: Hello, I hope you can hear me?

Operator: Yes.

Claudia Gnem: that Nestlé has good manufacturing practices and above standard. I mean, this has been written, and it's all over the place, right? Even higher safety standards. So I still wonder, how come that a supplier did not have the same high standards as your own factories? And how can consumers trust that, and this is not happening elsewhere in another factory, where you also have another standard? I mean, how can you assure consumers, and how do you explain that it didn't have the same standard?

Claudia Gnehm: that Nestlé has good manufacturing practices and above standard. I mean, this has been written, and it's all over the place, right? Even higher safety standards. So I still wonder, how come that a supplier did not have the same high standards as your own factories? And how can consumers trust that, and this is not happening elsewhere in another factory, where you also have another standard? I mean, how can you assure consumers, and how do you explain that it didn't have the same standard?

Speaker #14: Even higher safety standards. So I still wonder, how come a supplier did not have the same high standards as your own factories?

Speaker #14: And how can consumers trust that? I mean, this is not happening elsewhere in another factory where you also have another standard.

Speaker #14: I mean, how can you assure consumers, and how do you explain that it didn't have the same standards?

Speaker #3: Yeah . Look , it's a good question . I understand the anxiety around it . Look , obviously all of our suppliers have to have the same standards as we have in this particular case .

Philipp Navratil: Yeah, look, it's a good question. I understand the anxiety around it. Look, obviously, all of our suppliers have to have the same standards as we have. In this particular case, as I have explained before, it was a not known risk, that you know, this particular toxin could be found in oil. It was new to us, it was new to the industry.

Speaker #3: As I have explained before , it was a it was a not known risk that , you know , this this particular toxin could be found in in oil .

Speaker #3: It was new to us . It was new to the industry and hence , you know , when we found out due to our superior quality and , and safety practices in our factories , we immediately then went to recall the product and we acted swiftly and were first to find out and , and work closely with authorities , healthcare , and also industry associations to make sure you know this .

Philipp Navratil: And hence, you know, when we found out, due to our superior quality and safety practices in our factories, we immediately then went to recall the product, and we acted swiftly and were first to find out and worked closely with authorities, healthcare professionals, and also industry associations to make sure, you know, this is known by the industry. And still then, you know, it took the industry, the rest of the industry to recall almost a month after we did. And that is not an excuse, and obviously, we will take these learnings and make sure this doesn't happen again.

Speaker #3: This is known by the industry . And and still then , you know , it took the industry the rest of the industry to recall almost a month after we did .

Speaker #3: And that is not an excuse. And obviously, we will take these learnings and make sure this doesn't—this doesn't happen again.

Speaker #3: But it's important to to understand that that also testing methods and these risks evolve . And we will we will be one step ahead to make sure we identify these risks everywhere .

Speaker #3: And apply those learnings everywhere. But you can be assured that our quality and safety practices are intact within our factories, and within all of our suppliers.

Speaker #3: We're sourcing products at the moment.

Speaker #1: Thank you . The next question is from Christiane Kolbe . Blick . Good morning , Christian .

Operator: Thank you. The next question is from Christian Kolbe, Blick. Good morning, Christian.

Speaker #2: Good morning . Sorry , I've got some text issues to get into , Paul , but maybe I'll ask a question for the second time .

Christian Kolbe: Good morning. Sorry, I've got some technical issues to get into the call, but maybe I, I ask a question for the second time. But the question, the first question is, Nestlé says you are estimating about CHF 200 million impact of the baby formula issue. Other estimates say about CHF 500 million. Why are you so sure that the costs won't go up for Nestlé more than the CHF 200 million? And the second one, Michael Baer, the director of Bundesamt für Lebensmittelsicherheit, says that he's not happy how the companies, not only Nestlé, but all companies, reacted on the issue. And my question is: Why took it so long till it was clear that Switzerland was affected or not?

Speaker #2: But the question, the first question is: you are estimating about 200 million CHF. The impact of the baby formula issue, or estimates, say about 500 million francs.

Speaker #2: Why are you so sure that the costs won't go up for Nestlé ? More than the 200 million CHF , and the second one , Michael Bayer , the director of Buddhism , Lebensmittel Sicherheit , says that he is not happy how the company is .

Speaker #2: Not only Nestlé, but all companies reacted to the issue, and my question is: Why did it take so many, so long, until it was clear whether Switzerland was affected or not?

Speaker #11: Yeah .

Speaker #3: I'll leave the first part to Anna on on on the size of the recall and I'll take the other one on , on on the , on the speed of the recall .

Philipp Navratil: I'll leave the first part to Anna on the size of the recall, and I'll take the other one on the speed of the recall.

Speaker #9: So on the first part , what we said on the call this morning was there is a direct impact of the recall . So that is the cost of the recall or the sales impacted by the recall itself and the sales or the lost sales due to out of stocks of of 20 basis points for the year .

Anna Manz: So on the first part, what we said on the call this morning was there is a direct impact of the recall. So that is the cost of the recall or the sales impacted by the recall itself, and the sales or the lost sales due to out of stocks of 20 basis points for the year. So that was a very specific statement. We also said that the broader consumer impact was uncertain. We'll you know, learn more as we go. That said, it's a sector that we know a lot about. We work very closely with doctors and also regulators.

Speaker #9: So that was a very specific statement. We also said that the broader consumer impact was uncertain. We'll, we'll, you learn more as we go.

Speaker #9: That said , it's a it's a sector that we know a lot about . We work very closely with doctors and also regulators .

Speaker #9: And so that's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4% organic growth.

Philipp Navratil: Mm-hmm.

Anna Manz: And so that's what has given us confidence to wrap all of that potential impact together in a guidance that we're giving today of around 3% to up to 4%, organic growth.

Speaker #3: Good . And then and then when it comes to the speed of the recall , look , I want to be very clear , we were very fast in in in recalling when we found out about the issue .

Philipp Navratil: ... Good. And then, when it comes to the speed of the recall, look, I want to be very clear, we were very fast in recalling when we found out about the issue. And we not only found out about the issue, we also informed authorities, and we informed healthcare professionals and industry associations to make sure, you know, this knowledge gets beyond Nestlé, because we knew that the supplier that we sourced this ingredient from was a supplier that would also source to other companies. But that's then, that's another story. What we have done over the holidays when we found out about the issue, we immediately worked together with authorities and recalled as fast as we could. So, and that includes Switzerland.

Speaker #3: And we not only found out about the issue , we also informed authorities and we are informed healthcare professionals and industry associations to make sure you know this knowledge gets beyond Nestlé because we knew that the supplier that we sourced this ingredient from was a supplier that would also source to other to other companies .

Speaker #3: But that's then that's another story . What we have done over the holidays , when we found out about the issue , we immediately worked together with authorities and recalled as fast as we could .

Speaker #3: So and that includes Switzerland . So there was not not there was no delay that I'm aware of that , that , you know , we have waited and seen when the issue was detected , we immediately recalled and we informed authorities to make sure these products are off shelf and consumers are informed and are kept safe .

Philipp Navratil: So there was no delay that I'm aware of, you know, we have waited and seen. When the issue was detected, we immediately recalled, and we informed authorities to make sure these products are off shelf and consumers are informed and are kept safe. So we moved fast. Others didn't. And maybe the critique is on that side. But Nestlé was really fast, and I'm proud of this, and I'm proud of how our team reacted to recall swiftly and, you know, always with the consumer's health at the center of everything we do.

Speaker #3: So we moved fast . Others didn't . And maybe the critique is , is is is in in on on on that side .

Speaker #3: But but Nestlé was was really fast and I'm proud of this and I'm proud of how our team reacted to recall swiftly . And you know , always with the consumers health at the center of everything we do .

Speaker #1: We can take three short questions . First , Klaus Nomi , SRF Klaus , please go ahead Klaus . We will get back to you .

Speaker #1: Looks like we have a technical issue. We are back to Mathias Bentz, and then Hannah, and then go back to Klaus.

Speaker #1: If he's around—and then we need to close. Matthias, please go ahead.

Matthias Benz: We have a question on the German supplier of this ARA oil. Why did you choose him in the first place? Was that for cost reasons? And the second question would be, was it the only supplier you had, or, are there or were there different suppliers, for that product? Thanks.

Speaker #15: Another question on the Chinese supplier of this oil. Why did you choose him in the first place? Was that for cost reasons?

Speaker #15: And the second question would be, was it the only supplier you had, or are there or were there different suppliers for that product?

Speaker #15: Thanks .

Speaker #3: Yeah , thanks for the question . Look . And they're linked because there was in the past only one supplier and which is a risk in such an ingredient .

Philipp Navratil: Yeah, thanks for the question. Look, they're linked, because there was in the past only one supplier, and which is a risk, obviously, in such an ingredient. And we chose the supplier that then generated the issue to have a second supplier in place. The supplier was checked and audited and was vetted and was cleared by our quality assurance. And obviously, what happened then, that they somehow in the process didn't have the process in control. But it was not about the cost, cost reason at all. It was about making sure that we have, you know, that we can ensure supply of this important ingredient to produce infant formula.

Speaker #3: And, and, and we, we chose the supplier that generated the issue to have a second supplier in place. The supplier was, was checked and audited, and was, was vetted, and was, was cleared by quality assurance.

Speaker #3: And obviously what happened then was that they somehow, in the process, didn't have the process in control, but it was not about the cost.

Speaker #3: Cost wasn’t a reason at all. It was about making sure that we have, you know, that we can ensure supply of this important ingredient to produce infant formula.

Speaker #3: And there are several suppliers . So now we have stopped sourcing from that concerned supplier . And we source from other suppliers . And all of the oil that comes into our factory is now tested .

Speaker #3: So we test the oil before it goes into production and we test during production and we test when it comes when the when the product comes out of production .

Speaker #3: So we are 100% sure that all of our products are 100% safe to be consumed by babies out there.

Speaker #1: Can I take a question from Hannah Shehadi, CNN?

Operator: We're going to take a question from Hannah Ciardi, CNN.

Speaker #6: Hi. Thank you so much for coming back to me. Just to go back to ice cream, you mentioned that it was a distraction.

Hanna Ziady: Hi, thank you so much for coming back to me. Just to go back to ice cream, you mentioned that it was a distraction. Can you say just a little bit more on why it is that you're actually selling this business? Because, sort of echoes a little bit, maybe the reasons that Unilever gave, you know, several years ago, which kind of came down to, I think, ice cream, as they called it, distinct characteristics. So, you know, it's season dependent, the supply chain can be more complex because it needs to be able to support frozen goods. Is that... You know, are your reasons some of the same as that, or can you just sort of spell out a little bit more why sell ice cream?

Speaker #6: Can you say just a little bit more on on why it is that you're actually selling this business ? Because sort of echoes a little bit , maybe the reasons that Unilever gave , you know , several years ago , which kind of came down to , I think ice cream's they called it distinct characteristics .

Speaker #6: So , you know , it's season dependent . The supply chain can be more complex because it needs to be able to support frozen goods .

Speaker #6: Is that , you know , are your are your reasons some of the same as that , or can you just sort of spell out a little bit more ?

Speaker #6: Why sell ice cream ?

Speaker #3: Yeah , sure . Look , it is a distraction when I say it's a distraction is something that we're not focused on because we only have six scattered businesses across the world , and this is an ice cream business , as you said yourself , you know , it's seasonal .

Philipp Navratil: Yeah, sure. Look, it is a distraction. When I say it's a distraction, it's something that we're not focused on because we only have six scattered business across the world, and this is an ice cream business. As you said yourself, you know, it's seasonal, it's frozen supply chain, it is highly brand driven, and you need some scale to drive this. And Froneri has exactly that. And that was when, you know, the first time when we set up the Froneri business, that was the idea. And we held on to those six businesses because we thought we could drive, you know, growth. And looking at it now, we have these six businesses, which, you know, they don't have any global scale.

Speaker #3: It's it's frozen . Frozen supply chain . It is highly brand driven . And you need you need some scale to , to to drive this and Froneri has exactly that .

Speaker #3: And that was when , when you know in the first time when we set up the funerary business , that was the idea .

Speaker #3: And we , we held on to those six businesses because we thought we could , we could drive , you know , growth .

Speaker #3: And looking at it now , we have these six businesses which , you know , they don't have any global scale . We cannot we cannot drive this .

Philipp Navratil: We cannot, we cannot drive this the same way that Froneri can. And that's why we think, because all of that, Froneri has all of those capabilities. They know exactly how to drive seasonal business. They have scale, they have the knowledge, and, and they have the brands, and they have shown this in all other markets where we have sold them our business, that they can drive great growth, and success. And so the same should happen with those six businesses. So that, that's what I mean with, with the distraction. So we're, we will, we will not, we will not, you know, invest more in those businesses where we don't have the capabilities and, and, and the scale that we need to be successful, and Froneri has.

Speaker #3: The same way that Froneri can. And that's why we think, because all of that has all of those capabilities, they know exactly how to drive seasonal business.

Speaker #3: They have scale, they have the knowledge, and they have the brands, and they have shown this in all other markets where we have sold them.

Speaker #3: Our business , that they can drive great growth and success . And so the same should happen with those six businesses . So that that's what I mean with the distraction .

Speaker #3: So we will we will not we will not , you know , invest more in those businesses where we don't have the capabilities and the scale that we need to be successful and Froneri has .

Speaker #3: And so they are the right owner for , for those great six businesses , because they're they're great six businesses and they have a lot , a lot of potential

Philipp Navratil: So they are the right owner for those great six businesses, because they're great six businesses, and they have a lot of potential.

Speaker #1: Thank you. Before we conclude, let's try Klaus Nomi again. Whether we can connect Klaus doesn't seem to be the case.

Operator: ...Thank you. Before we conclude, let's try Klaus Bonanomi again, whether we can connect. Klaus? Doesn't seem to be the case. There seems to be a technical problem. Sorry for that. Thank you so much for your participation this morning. Our lines are open. If you have any further questions, call our media relations number. We're happy to assist, and we wish you a great day. Thank you so much.

Speaker #1: There seems to be a technical problem . Sorry for that . Thank you so much . For your participation this morning . Our lines are open .

Speaker #1: If you have any further questions, call our media relations number. We're happy to assist, and we wish you a great day.

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