Foreword

Message from Philippe Vossen, Chair of the Pension Board

For the first time, the annual report of the Nestlé Pension Fund (hereinafter the “Fund”) is being published in a fully digital format. This has a number of benefits compared with previous publications: in particular, information can be accessed more easily and the Fund’s data is made available in an immediate and transparent way. For example, the digital format means that you can quickly find the most relevant information regarding the Fund’s financial position, or explore specific sections that interest you in greater depth.

As you know, the financial markets are one of the key factors that influence the Fund’s performance. 2024 was a particularly good year in those markets, following on from positive performance in late 2023. There were significant gains for equities, driven by the start of central-bank rate cuts and optimism regarding a soft landing in the world economy, despite an unstable political and geopolitical context. The Fund benefited from those gains, achieving an encouraging return of 9% in 2024. This took its funded status to 119.4% as at 31 December 2024.

Given the Fund’s very good performance in 2024 and its solid financial position at the end of the year, the Pension Board has decided to grant additional interest of 3.75% on top of the minimum interest rate of 1.25%. This additional interest has been credited to the retirement savings capital of all active members insured with the Fund on 31 December 2024. Total interest was therefore 5% for 2024.The Pension Board has also decided to pay a special, one-off lump sum equal to half a monthly pension to the Fund’s pensioners, and that payment was made in January 2025.

However, the current period of relative prosperity and strong financial markets depends on a fragile balance that is increasingly being threatened by developments on various fronts: political, with the instability of governments in Europe; geopolitical, in relation to armed conflicts; and economic, particularly with the new customs tariffs initiated by the United States. This latter factor is likely to cause an economic slowdown or possibly a recession, which has caused financial markets to be highly volatile in 2025. It is therefore reassuring that the Fund ended 2024 with a funded status of close to 120%, and therefore an almost fully constituted investment fluctuation reserve, which should enable it to absorb potential losses arising from any new financial crisis.

To conclude this foreword, I would like to mention the digital developments that the Fund is planning. As well as the digital reporting and communication resources already in place – such as the Fund’s website, the online simulator and the secure space in which active members’ personal documents are stored – a new portal is currently being finalised. The new portal will enable active members to access their personal occupational benefits information at any time using a variety of communication methods, including their smartphones. Eventually, we also want to open the portal up to pensioners so that they can access services related to the payment of their pensions in particular.

I hope you enjoy reading our digital annual report for 2024.

 Philippe Vossen

 Chair of the Pension Board