Nestlé Purina in the Americas

Nestl? Purina in the Americas

Creating Shared Value Report 2016

ABOUT NESTL? PURINA IN THE AMERICAS

PET NUTRITION, HEALTH & WELLNESS

ENVIRONMENTAL SUSTAINABILITY

TABLE OF CONTENTS

4 Our Approach

5

About the Report

6 About Nestl? Purina in the Americas

8 Pet Nutrition, Health & Wellness

18 Environmental Sustainability 30 Our People 38 Pets and the Community 46 Global Commitments

OUR PEOPLE

PETS AND THE COMMUNITY

GLOBAL COMMITMENTS

2016 OUR YEAR IN REVIEW

Introduced new products targeting specific pet nutrition benefits for dogs and cats

26% of our factories in the Americas achieved zero waste to landfill status

100 percent score on Human Rights Campaign Corporate Equality Index in the U.S.

1.7 million pet adoptions enabled through Petfinder

2

Nestl? Purina in the Americas: Creating Shared Value Report 2016

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ABOUT NESTL? PURINA IN THE AMERICAS

PET NUTRITION, HEALTH & WELLNESS

ENVIRONMENTAL SUSTAINABILITY

OUR APPROACH: PURPOSE INSPIRING ACTION

Every day at Nestl? Purina we touch the lives of many - from the farmers who grow our ingredients, to the consumers, pets, professionals who love and take care of pets, our associates and the communities where we operate.

OUR PURPOSE: Enriching the lives of pets and the people who love them

OUR AMBITIONS: 4 Develop nutritious foods for pets 4 Create a lasting positive impact on communities and the people and professionals who love

and take care of pets 4 Sustain a healthy planet

We are guided in our actions by our five values, which are rooted in integrity, expertise, passion, performance and innovation, and driven by our three pursuits:

Pets Are Our Passion

Making our world and communities better for

pets and people

Safety Is Our Promise

Delivering the highest quality and safety

standards in the industry

Innovation Is Our Pledge

Relentlessly pursuing breakthrough innovations and nutrition that advance the lives of pets

4

OUR PEOPLE

PETS AND THE COMMUNITY

GLOBAL COMMITMENTS

Creating Shared Value is how we deliver a long-term positive impact for shareholders and society, through everything that we do as a company.

At the global level, Nestl? has made 42 commitments to support our long-term goal of Creating Shared Value. As part of the Nestl? family, Nestl? Purina in the Americas embraces these global commitments, and this report is organized to share progress in four key areas:

Pet Nutrition, Health & Wellness

Improving the lives of pets by providing

healthy foods backed by our leading science and nutritional expertise and produced using the highest standards in safety

and quality

Environmental Sustainability

Creating a better world by using

natural resources efficiently and responsibly to preserve our

environment and create positive

impacts to society

Our People

Investing in people through our dedication

to associate safety, health and wellbeing; recruitment of people who share our values; and commitment to diversity and

inclusion

Pets and the Community

Leveraging our expertise, scale and passion for pets to improve the quality of life for pets and

their owners

ABOUT THE REPORT

Unless otherwise stated, "Nestl? Purina" refers to Nestl? Purina in the Americas. All data in this report pertains to Nestl? Purina in the United States, Canada and/or Latin America between Jan. 1, 2016 through Dec. 31, 2016, unless otherwise noted. The digital version of this report can be accessed at CSV.

ACCOMPANYING REPORTS:

Nestl? in society Creating Shared Value and meeting our commitments 2016

Full report

Nestl? in Society: Creating Shared Value and meeting our commitments 2016

Includes materiality matrix and Global Reporting Initiative (GRI) indicators for the global Nestl? business

Nestl? in the United States

Creating Shared Value Report 2016

Nestl? in the United States 2016 Creating Shared Value Report

Includes materiality matrix and Global Reporting Initiative (GRI) indicators for Nestl? in the U.S.

Nestl? has begun integrating the United Nations Sustainable Development Goals (SDGs) into the global Creating Shared Value approach. To mirror the SDG timescale, Nestl? has introduced a set of overarching ambitions for 2030. Visit csv to learn more and to view the global commitments and ambitions.

Nestl? Purina in the Americas: Creating Shared Value Report 2016

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ABOUT NESTL? PURINA IN THE AMERICAS

PET NUTRITION, HEALTH & WELLNESS

ENVIRONMENTAL SUSTAINABILITY

About Nestl? Purina in the Americas

Nestl? Purina was founded in 1894 in St. Louis and is a premiere global manufacturer of high-quality pet products. Part of Swiss-based Nestl? S.A., the world's largest food company, Nestl? Purina makes some of the most popular and trusted pet care brands, spanning dog and cat food, snacks and litter. Our nearly 12,000 associates in the Americas are passionate about our mission to enrich the lives of pets and the people who love them.

Honored to be a

BEST PLACE TO WORK IN THE U.S.

by

#1

PET CARE

COMPANY

in the U.S. in terms of sales volume and

market share

13th consecutive year of improved sales growth and profit

$8.7 $

BILLION

SALES IN THE AMERICAS

67 brands in 30 countries

11,990ASSOCIATES

8,200 (U.S.) | 490 (CANADA) 3,300 (LATIN AMERICA

& CARIBBEAN)

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OUR PEOPLE

OUR KEY LOCATIONS

PETS AND THE COMMUNITY

GLOBAL COMMITMENTS

27 MANUFACTURING PLANTS

NORTH AMERICA

2 HEADQUARTERS St. Louis, Missouri U.S. and Latin America & Caribbean region Headquarters operations Mississauga, Ontario Canadian Headquarters operations

20 UNITED STATES FACTORIES PURINA FARMS (GRAY SUMMIT, MISSOURI) A family-friendly attraction for pet lovers of all ages

1 CANADIAN FACTORY

LATIN AMERICA & CARIBBEAN

6 FACTORIES

OUR VALUE CHAIN

Nestl? Purina's range of activities that generate value:

INNOVATIONS

? Research and development

? Branding

PRODUCT PROCUREMENT & MANUFACTURING

? Sourcing ingredients and packaging materials

PRODUCT LOGISTICS

? Transportation and storage

$

PRODUCT MARKETING AND SALES

? Advertising and sales

CONSUMER USE OF PRODUCTS

? Shipping

? Product consumption

? Product and packaging disposal

Nestl? Purina in the Americas: Creating Shared Value Report 2016

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ABOUT NESTL? PURINA IN THE AMERICAS

PET NUTRITION, HEALTH & WELLNESS

ENVIRONMENTAL SUSTAINABILITY

OUR PEOPLE

PETS AND THE COMMUNITY

GLOBAL COMMITMENTS

PET NUTRITION, HEALTH & WELLNESS

Improving the lives of pets by providing healthy foods backed by our leading science and nutritional expertise and produced using the highest standards in safety and quality.

HIGHLIGHTS:

NEW

products targeting specific pet nutrition benefits

10

patents granted in the area of pet nutrition, supporting our aim to discover and develop innovative solutions

100

PERCENT

compliant with new Food Safety Modernization Act standards

100

PERCENT

of factories certified by FSSC 22000, the global, gold-standard framework for food quality

TOPIC AREAS: ? Advancing Pet Nutrition ? Building and Sharing our Knowledge in Pet Nutrition ? Promoting Healthy Diets and Lifestyles for Pets ? Ensuring a High-Quality Product

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Nestl? Purina is committed to being a trusted leader in pet nutrition and health. Imagining the impossible and unleashing the power of nutrition to help pets live better, longer lives are a few of the ways we strive to Create Shared Value.

We imagine a world where pets live longer, better lives and even the most challenging health issues can be effectively managed through nutrition. Driven by this vision and an unwavering passion for pets, we apply our deep scientific expertise in pet nutrition, physiology and behavior to make new discoveries and push boundaries, creating nutritional solutions that make a profound difference.

This philosophy impacts the decisions we make and the beliefs that guide us each and every day:

? Excellent nutrition should be available to all dogs and cats.

? Nutrition starts with understanding nutrients, not just ingredients.

? Innovation should be pursued relentlessly, always focusing on the pet's nutritional needs, safety and wellbeing.

? Feeding experiences should be enjoyable, all the while delivering optimal nutrition.

? Nutritional needs of pets are unique (e.g. dogs are different from cats, today's pets are different from their ancestors and pets are different from humans).

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