Nestlé in society Creating Shared Value and meeting our commitments 2015

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Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people Novel Therapeutic Nutrition We invested in Seres Therapeutics, a leader in developing a new class of biological drugs designed to treat diseases by restoring gut function. One development that our investment supports is phase III trials of SER-109, for the prevention of recurrent Clostridium difficile infection (CDI) in adults – a condition that affects 85 000 to 110 000 patients in the United States alone and is caused by antibiotic disruption of the gut microbiome. The FDA designated SER-109 an orphan drug and a breakthrough therapy in 2015. In January 2016, Nestlé Health Science signed an exclusive agreement outside the United States and Canada for Seres Therapeutics’ novel class of microbiome therapeutics (Ecobiotics®) in the fields of Clostridium difficile infections (CDI, such as SER-109 and SER-262) and inflammatory bowel disease (IBD; such as SER-287 and SER-301). The agreement follows Nestlé Health Science’s initial equity investments in US-based Seres Therapeutics announced in January and July 2015. • Nutrition Science Partners, a joint venture exploring the potential of botanical-based nutrients for gastrointestinal disorders; • Accera, which supports nutritional therapy trials for Alzheimer’s sufferers (in which Nestlé has a minority stake); • Seres Therapeutics, developing microbiome therapeutics focused on IBD and C. diff (a GI infectious disease) – are all interacting with the gut microbiota; • Lipid Therapeutics, developing a novel barrier function therapy for patients with mild-to-moderate ulcerative colitis; and • Pronutria Biosciences (announced on 23 February 2016), developing amino acid biologics, Pronutreins TM , targeting irregularities in amino acids, increasingly known to have underlying associations with a range of conditions. Nestlé Skin Health Supporting new therapies More than 1 million people worldwide are estimated to suffer from ulcerative colitis, a chronic and debilitating inflammatory condition of the large intestine. It is estimated that 40% of patients that receive the most common treatment, Mesalazine, still suffer ongoing symptoms of the disease. NHSc has entered into a licence agreement with Lipid Therapeutics for exclusive rights worldwide (except for Europe and Australia) to LT-02, a novel barrier function therapy for patients with mild-to-moderate ulcerative colitis. LT-02 can not only help heal ulcers but also restore the lining of the colon wall, preventing further occurrences. NHSc plans to start phase III clinical trials in the United States in 2016. We hope to advance patient outcomes for those who suffer from ulcerative colitis. Through investment, innovation and geographic expansion, we are accelerating the growth and development of our established Consumer Care and Medical Nutrition business areas. Both are operating in growing markets driven by mega trends – ageing population, cost pressure, self-care, scientific and clinical advances and geographic development. We are gearing to bring forward breakthrough innovations in Novel Therapeutic Nutrition – building a portfolio of clinically proven nutritionally based innovations with a more direct therapeutic impact and known mode of action. We aim to address unmet needs. Since its creation, NHSc has made acquisitions and forged a number of partnerships since 2011. These include: • Vitaflo, specialists in treating genetically inherited metabolic disorders; • Prometheus Laboratories, a provider of diagnostics and pharmaceuticals in gastroenterology and oncology; • Pamlab, a producer of medical foods for brain and metabolic disorders; Through Nestlé Skin Health, we enhance the quality of life by delivering science-based solutions for the health of skin, hair and nails over the course of people’s lives. An estimated 3000 skin diseases are known to exist, more than for any other organ of the body, and approximately 70% of people are affected by these conditions at some point in (if not for all of) their lives. Our innovative products and solutions are designed to protect, nourish and enhance, as well as treat, correct and restore. Nestlé Skin Health was founded in June 2014, growing out of Galderma, a leading dermatology company dating back to 1961. It employs approximately 6000 people worldwide. Nestlé Skin Health provides both the healthcare community and the consumer with an ongoing progression of innovative technologies and products to protect, serve and enhance skin health. It achieves this through Galderma, its medical solutions business, and Consumer Skin Health, through which it aims to bring science-based innovation to the broader market. Much of Nestlé Skin Health’s work depends on product research and development, and our dedicated Skin Health R&D division employs more than 700 people for the purpose. Since the company’s inception, more than 2000 scientific publications have been issued and more than 6000 patent applications have been filed. In 2015, we filed 57 new applications and conducted more than 200 clinical studies involving subjects from around the world. Expanding borders: skin health and ageing Advances in healthcare and technology are resulting in longer lives. As people live longer, their needs and expectations change. We want to help people keep healthy skin as they age. Nestlé Skin Health works closely with academia and institutions to find improved methods for preserving, restoring and maintaining healthy skin. By partnering with healthcare professionals and institutions around the world, we strive to build and sustain a strong and long-lasting dermatology community. Nestlé in society – Creating Shared Value and meeting our commitments 2015 58
Nestlé in society: Creating Shared Value Nutrition, health and wellness Rural development Water Environmental sustainability Human rights and compliance Our people One initiative that supports dermatology activities that have a positive social impact is the SKIN PACT programme. Initiated by Galderma, with the support of the International League of Dermatological Societies, SKIN PACT aims to inspire dermatologists and other doctors to develop and help implement voluntary projects that support a sustainable dermatology community. At the 2015 SKIN PACT Awards ceremony, which had the double theme of ‘Community Leadership’ and ‘Excellence in Education’, four projects were selected out of an initial 100. The winning projects, which each received or are due to receive a USD 15 000 (CHF 14 850) grant, came from Taiwan, Germany, Colombia and Italy. Building the SHIELD network around the globe In response to the expected rise in skin health needs in a rapidly growing ageing population, Nestlé Skin Health has started to establish a global network of innovation hubs to advance the next generation of skin health. Known as Nestlé Skin Health Investigation, Education and Longevity Development (SHIELD) centres, this global innovation network will be built to foster breakthroughs and collaboration in skin health through medical investigation, education and applications related to the convergence of technologies and bioinformatics. The first SHIELD centre, in New York, USA, will be opened in early 2016. With a view to supporting China’s elderly population – predicted to form at least 17% of its population by 2020 – Nestlé Skin Health also announced in 2015 that it will open a SHIELD centre in Shanghai, establishing China as a key pillar of Nestlé Skin Health’s global initiative. New York and Shanghai will be followed by other location across the world in the future. The SHIELD initiative is aligned with the needs identified by the 2014 Manchester Summit on Active Ageing and Healthy Skin, which called for action and innovation in skin health as a path to wellness, social value and economic growth. Nestlé in society – Creating Shared Value and meeting our commitments 2015 59
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Nestlé in society Creating Shared Value and meeting our commitments 2015

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