1

Financial Analysts’ Briefing 28th October 2014

Nine Months Results 2014

Nestlé Malaysia Bhd

2

Agenda

Introduction & overview

Financials

Questions & answers

3

This presentation contains forward looking statements

which reflect Management’s current views and

estimates. The forward looking statements involve

certain risks and uncertainties that could cause actual

results to differ materially from those contained in the

forward looking statements. Potential risks and

uncertainties include such factors as general

economic conditions, foreign exchange fluctuations,

competitive product and pricing pressures and

regulatory developments.

Disclaimer

4

FINANCIALS

5

Nestlé Model

Nestlé Model – every year

• 5%-6% organic growth

• Margin & EPS growth

• Improving capital efficiency

• Market leadership

6

SALES GROWTH

7

7

Rapid FMCG slow down in Malaysia

Almost half the growth in Food vs YAGO

Source: KANTAR WorldPanel. Consumers Insight 2014

8

Spending Power Squeezed

9

..resulted in much weakened consumer sentiment

Source : Nielsen Consumer Confidence Index

Survey

Consumer Confidence at four year low.

Almost 2/3 of shoppers think the country is

in recession and 80% think it will last one

year plus

MY Consumer Confidence Index

10

2.79 2.95

0.86 0.75

-1

1

3

5

9M 2013 9M 2014

Export sales

Domestic sales

Domestic Sales +5.8%

Export Sales -13.1% +1.4%

RM3.65 Bio RM3.70 Bio

Sales Evolution 9M 2014 vs 9M 2013

11

2.79 2.95

0.86 0.75

20%

40%

60%

80%

100%

9M 2013 9M 2014

Exp Dom

23.6%

76.4%

20.2%

79.8%

RM3.65 Bio RM3.70 Bio

Channel Sales

12

Sales by Product Categories

13

Innovation Drive 9M 2014

14

EBITDA MARGIN

15

18.8% 18.5%

16.6% 16.2%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

450

500

550

600

650

700

750

800

850

900

9M 2013 9M 2014

EBITDA EBITDA as % of Sales EBIT as % of Sales

Evolution of EBITDA

RM687

Mio RM684

Mio

16

17

Net Profit Evolution

12.6% 12.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

200

250

300

350

400

450

500

550

600

9M 2013 9M 2014

% of Sales

RM461

Mio RM452

Mio

18

49%

12%

39%

RM

PM

S&IM

Breakdown of Material & Services Consumed

Jan ‘14 – Sep ‘14

Total = RM 2.20 Bio.

19

COMMODITY UPDATES

20

Cocoa Bean

21

Cocoa Powder Ratio

22

Coffee bean

23

Milk Solids

24

Crude Palm Oil

25

Wheat

26

Sugar

0

5

10

15

20

25

30

Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14

Sugar

US cents/Pound

27

Crude Oil

0

20

40

60

80

100

120

Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14

Crude OilUSD/MT

28

NET PROFIT MARGIN

29

MY Trade Net Working Capital

11

.0%

9.3

%

7.3

%

6.6

%

3.7

%

3.6

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

200

9

201

0

201

1

201

2

201

3

9M

20

14

ATNWC

30

Cash Flow 9M 2014

RM (Mio)

9M 2014 9M 2013

Profit Before Tax adjusted for

depreciation & interest

(Increase) / Decrease in working capital (60) (44)

Income tax & others (104) (115)

Net cash from operating activities

Capital Investments (190) (65)

Others 2 5

Cash Flow after Investing activities 332 468

684 687

520 528

31

Thank You