Letter from the Chairman

Dear fellow shareholders, 

In my first address to you as Chair of Nestlé’s Board of Directors, I want to express my deep commitment to this role and strong motivation to serve this company and its stakeholders. I do so with great respect and a profound sense of responsibility. Nestlé’s iconic brands, global reach and exceptional people have long inspired me. As a fully independent Chair who has served on Nestlé’s Board since 2018, I have a solid understanding of the company’s operations, but I also bring a fresh perspective from my years of experience as Chair and CEO of Inditex.

During my time at Inditex, I faced many of the same dynamics that Nestlé is currently facing: rapidly evolving consumer preferences, technological advances and complex supply chains. Finding ways to overcome these challenges and thrive has shaped my approach to leadership and transformation.

I recognize that Nestlé’s recent performance and share price development have raised concerns. Philipp, our CEO, and I, together with the Board of Directors and the Executive Board, are eager to lead this company into a new chapter and to reclaim Nestlé’s position as a clear industry leader. Philipp’s deep knowledge of Nestlé, analytical rigor, collaborative leadership and winning mindset are invaluable assets as we move forward. Together, we are committed to delivering sustainable, long-term value.

Strong corporate governance is the foundation of our company and its future success. Our goal is to continuously strengthen our effectiveness by regularly appointing new independent directors with diverse areas of expertise. Following a thorough review of its current practices and committee structure, the Board has decided to implement several changes, starting with the 2026 Annual General Meeting. To foster deeper engagement, we will introduce in-camera sessions between our regular Board meetings. We are also revising our committee structures and responsibilities to better leverage the diverse skillsets of our directors. These enhancements are designed to improve oversight, enrich decision-making, and ensure our governance remains robust and forward-looking. For further details, please refer to the Corporate Governance section.

The Board is also working closely with Philipp and the executive team to review the company’s operating model and refine our strategy. Our focus is on driving real internal growth, fostering a performance culture, and transforming the company to make it more efficient and digitally empowered. We are acting with a new sense of urgency and, through our efforts, are generating savings for reinvestment.

By earning the right to invest through improved performance, we can also uphold our sustainability commitments. We remain dedicated to achieving our targets, particularly concerning climate resilience and regenerative agriculture, which are vital for our long-term success.

Sound financial management underpins our ability to create value for you, our shareholders, and for all our stakeholders. We understand that many of you count on Nestlé’s dividend payments. To support this, we are committed to delivering free cash flow growth that outpaces dividend growth.

Throughout Nestlé’s history of nearly 160 years, resilience and adaptability have been hallmarks of our success. With the support of the Board, our executive leadership and all our colleagues, we will move decisively into Nestlé’s next phase and generate attractive returns through disciplined, sustainable growth. I look forward to engaging with many of you in the coming weeks and months, as we shape Nestlé’s future together.

Thank you for your trust and support.

Pablo Isla 
Chairman