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					          Nestlé Purina PetCare

            Quimperlé (France) Update
                        NECIC May 15th, 2007




Nestlé Purina PetCare
               QUIMPERLE : CONTEXT OF THE PROJECT


•   To remove multiserve can capacity in France as the market continues to
    decline (circa 9.5% decrease / year from 1999 – France Grocery)
•   Quimperlé Wet is quite more expensive than the other plants, even at the
    same level of utilisation.
•   With the volume declining (20 KTons to produce in 2007 compared to 100 KT
    in 2001), the conversion costs 2007 are double vs 2005
•   Quimperlé Dry is the smallest dry plant of NPPE which makes simple dog
    products in simple packaging
•   Quimperle Dry is more expensive than Marconnelle even at the same level of
    utilisation (+ 31%)




     Nestlé Purina PetCare
                 QUIMPERLE : SUMMARY OF KEY EVENTS

•   Nov 2005: NPP announced its project to sell Quimperlé (wet and dry facilities).
•   2006: the Central Works Council (CWC) developed its project to avoid the sale.
•   In Dec 2006, NPP explained the reasons why it cannot accept the CWC’s project and
    invited twice the Unions to discuss the future of the Quimperlé site. Unions refused the
    invitation twice.
•   CWC meeting called for 21 March 2007 to discuss NPP’s project for the Quimperlé site.
    Proposed agenda:
        •   Development of Dry facility with an investment of 12 millions €
        •   The canning production will be transferred to Aubigny (France), Castiglione
            (Italy) and Ijmuiden (Netherland)
        •   Social measures with some pre-retirement plan, internal mobility and voluntary
            leavers options.
    During this meeting, the CWC agreed a timetable of 3 informal meetings to find an
    agreement on the solution.
•   End of April, these meetings resulted in an agreement signed by all Unions and the
    CWC



     Nestlé Purina PetCare
                        MAIN POINTS OF THE AGREEMENT


•      End of canning production 30 June 2007, and transfer in other NPPE
       locations ;
•      Transfer of employees from wet to dry activity on 1st July 2007 ;
•      7 days working in Dry through a formal agreement ;
•      138 jobs in Dry (including 5 Europeans) ;
•      Pre-retirement program at age 52 and beyond, 31 December 2007 (70
       employees) ;
•      Voluntary leavers and potential redundancies : improved conditions ;
•      Timetable of the consultation : all meetings during the month of May


    With all these measures, the potential number of redundancies is expected to be
    very limited.



        Nestlé Purina PetCare
                          THE INDUSTRIAL PROJECT

•       Quimperlé site stays within Nestlé ;
•       Transfer of the canning production to other NPPE sites.
•       Quimperlé site will be developed as a dry facility, supported by an
        investment of 12 millions € ;
•       Production will increase from 31 Ktons / year (current) to 95 Ktons / year (7
        days working). SNC technology will be installed
•       The steps, following end of the consultation process (end of May):
    –     1st month : order of a large bag packing line
    –     5th month : detailed project finalised for the second line investment
    –     8th month : 7 days working on current production line (with the additional
          packing line), full year expected capacity circa 50 kt
    –     23rd month : 7 days working 2 production lines, full year expected capacity
          circa 95 kt


         Nestlé Purina PetCare
   THE CANNING RESOURCING PLAN
                                     Tons (OP 2007 figures)
                        Aubigny    Castiglione                Ijmuiden   Total
Export
> 400 gr                              583                       440      1 022
= 400 gr                             1 378                      157      1 534
Total                     0          1 960                      597      2557
France
> 400 gr                             5 765                       0       5 765
= 400 gr                 2 311       7 676                       0       9 987
Total                    2 311       13 441                      0       15 572

Export + France
> 400 gr                  0          6 348                      440      6 788
= 400 gr                 2 311       9 053                      157      11 521
Total                    2 311       15 401                     597      18 309




           Nestlé Purina PetCare

				
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