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Nestlé in society Creating Shared Value and meeting our commitments 2015

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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />

Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Nutrition, health<br />

<strong>and</strong> wellness<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

Our<br />

people<br />

Innovative therapies<br />

We have worked to strengthen <strong>our</strong> nutrition, health <strong>and</strong> wellness strategy <strong>in</strong> recent years. Our strategy was<br />

re<strong>in</strong>forced by the creation of new bus<strong>in</strong>esses, dedicated to <strong>in</strong>novative therapies to support consumers throughout<br />

their lives: <strong>Nestlé</strong> Health Science (NHSc) <strong>and</strong> <strong>Nestlé</strong> Sk<strong>in</strong> Health. <strong>Nestlé</strong> Health Science is a health science<br />

company ‘where nutrition becomes therapy’, advanc<strong>in</strong>g the therapeutic role of nutrition <strong>and</strong> forg<strong>in</strong>g a greater,<br />

more central <strong>and</strong> <strong>in</strong>tegral role for nutrition <strong>in</strong> the management of health. <strong>Nestlé</strong> Sk<strong>in</strong> Health offers science-based<br />

solutions to care for the sk<strong>in</strong>, hair <strong>and</strong> nails. These new areas are built on the strength of <strong>our</strong> foods <strong>and</strong> beverages.<br />

<strong>Nestlé</strong> Health Science (NHSc)<br />

As part of <strong>our</strong> ambition to be a lead<strong>in</strong>g Nutrition, Health <strong>and</strong><br />

Wellness company, <strong>Nestlé</strong> offers a portfolio of nutrition<br />

solutions, diagnostics, devices <strong>and</strong> drugs through <strong>Nestlé</strong><br />

Health Science that target a number of health areas, such as<br />

<strong>in</strong>born errors of metabolism, pediatric <strong>and</strong> acute care, obesity<br />

care <strong>and</strong> healthy age<strong>in</strong>g, as well as gastro<strong>in</strong>test<strong>in</strong>al <strong>and</strong> bra<strong>in</strong><br />

health. Through <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>in</strong>novation <strong>and</strong> leverag<strong>in</strong>g lead<strong>in</strong>gedge<br />

science, <strong>Nestlé</strong> Health Science br<strong>in</strong>gs forward <strong>in</strong>novative<br />

nutritional therapies with cl<strong>in</strong>ical health, economic value <strong>and</strong><br />

quality of life benefits.<br />

<strong>Nestlé</strong> Health Science is a company engaged <strong>in</strong> advanc<strong>in</strong>g<br />

the role of nutritional therapy to change the c<strong>our</strong>se of health<br />

for consumers, patients <strong>and</strong> <strong>our</strong> partners <strong>in</strong> healthcare.<br />

Created <strong>in</strong> 2011, NHSc is supported by the <strong>Nestlé</strong> Institute of<br />

Health Sciences, which researches how nutrition can<br />

empower people to improve <strong>and</strong> ma<strong>in</strong>ta<strong>in</strong> their health, <strong>and</strong> <strong>our</strong><br />

R&D network, as well as through external partnerships. NHSc<br />

is organised <strong>in</strong>to three bus<strong>in</strong>ess areas:<br />

• Consumer Care addresses specific health conditions <strong>and</strong><br />

<strong>in</strong>cludes products that people pay for themselves <strong>in</strong> a<br />

pharmacy, retail outlet or onl<strong>in</strong>e;<br />

• Medical Nutrition, NHSc’s largest bus<strong>in</strong>ess, covers<br />

products recommended by healthcare professionals <strong>and</strong><br />

supplies hospitals <strong>and</strong> other healthcare facilities; <strong>and</strong><br />

• Novel Therapeutic Nutrition works on new nutritional<br />

therapies for specific diseases <strong>and</strong> conditions, focus<strong>in</strong>g<br />

on gastro<strong>in</strong>test<strong>in</strong>al <strong>and</strong> bra<strong>in</strong> health, adm<strong>in</strong>istered by a<br />

health professional.<br />

In <strong>2015</strong>, we made progress across all three areas.<br />

Consumer Care<br />

We launched products <strong>in</strong> Europe <strong>and</strong> the United States. In<br />

Europe, we launched new varieties of powder <strong>and</strong> pre-mixed<br />

dr<strong>in</strong>ks to support healthy age<strong>in</strong>g, <strong>in</strong>clud<strong>in</strong>g Meritene® Mobilis, a<br />

dr<strong>in</strong>k high <strong>in</strong> whey prote<strong>in</strong>, leuc<strong>in</strong>e, calcium <strong>and</strong> vitam<strong>in</strong>s,<br />

target<strong>in</strong>g bone, muscle <strong>and</strong> jo<strong>in</strong>t health; Meritene® Vitachoco (a<br />

multivitam<strong>in</strong> supplement <strong>in</strong> chocolate flav<strong>our</strong>); <strong>and</strong> Meritene®<br />

Regenervis (a supplement of potassium <strong>and</strong> magnesium, with<br />

antioxidant vitam<strong>in</strong>s <strong>and</strong> m<strong>in</strong>erals). In the United States, we<br />

launched Boost® nutritional dr<strong>in</strong>ks <strong>in</strong> compact sizes, such as<br />

Boost Calorie Smart®, a 100-calorie balanced nutritional dr<strong>in</strong>k,<br />

<strong>and</strong> Boost® Compact, a complete nutritional dr<strong>in</strong>k. Consum<strong>in</strong>g<br />

a nutritional dr<strong>in</strong>k such as the new Boost® dr<strong>in</strong>ks can help<br />

older adults get the nutrition they need every day.<br />

Our support for nutritional solutions to health conditions<br />

was reflected <strong>in</strong> <strong>our</strong> sponsorship of the <strong>in</strong>augural Gastrodiet<br />

conference held <strong>in</strong> Italy <strong>in</strong> November <strong>2015</strong>, where worldlead<strong>in</strong>g<br />

experts explored new scientific approaches to address<br />

irritable bowel syndrome.<br />

Medical Nutrition<br />

One key area for Medical Nutrition is provid<strong>in</strong>g acute care with<br />

a range of nutrition solutions for critically ill people <strong>and</strong> for<br />

older people suffer<strong>in</strong>g from malnutrition or difficulty<br />

swallow<strong>in</strong>g. In <strong>2015</strong>, we launched the Compat Ella® feed<strong>in</strong>g<br />

pump, which connects to patient data systems to ensure that<br />

feed<strong>in</strong>g rates are easily adjusted to patient needs, thereby<br />

improv<strong>in</strong>g cl<strong>in</strong>ical outcomes <strong>and</strong> reduc<strong>in</strong>g care costs. We also<br />

announced a new cooperation with GE Healthcare to develop<br />

<strong>in</strong>tegrated nutritional management systems.<br />

In the food allergy <strong>and</strong> <strong>in</strong>tolerances space, another of <strong>our</strong><br />

key focus areas, <strong>our</strong> unrestricted grant helped experts develop<br />

CoMiSS® (Cow’s Milk-related Symptom Score), an awareness<br />

tool to help primary healthcare professionals assess the<br />

likelihood of cow’s milk prote<strong>in</strong> allergy, a condition estimated<br />

to occur <strong>in</strong> 2% to 3% of <strong>in</strong>fants. The tool, which has a<br />

predictive rate of 80% <strong>and</strong> can be used by primary healthcare<br />

professionals, can lead to earlier nutrition <strong>in</strong>tervention by<br />

several months.<br />

We announced <strong>our</strong> <strong>in</strong>vestment of USD 70 million<br />

(CHF 69.3 million) to create a <strong>Nestlé</strong> Product Technology<br />

Centre (NPTC) <strong>in</strong> New Jersey, USA, open<strong>in</strong>g <strong>in</strong> 2016. It will be<br />

dedicated to develop<strong>in</strong>g <strong>in</strong>novative nutritional solutions,<br />

focus<strong>in</strong>g on applied research <strong>and</strong> product development,<br />

sensory perception, eng<strong>in</strong>eer<strong>in</strong>g <strong>and</strong> technological expertise <strong>in</strong><br />

packag<strong>in</strong>g.<br />

In Ch<strong>in</strong>a, we announced the <strong>in</strong>vestment <strong>in</strong> a new<br />

manufactur<strong>in</strong>g facility to be built <strong>in</strong> Ch<strong>in</strong>a Medical City, Taizhou.<br />

The new Taizhou manufactur<strong>in</strong>g site will be the first FSMP<br />

(food for special medical purpose) factory.<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 57

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