History & Overview

Nestl is a Swiss Company First European condensed milk factory by Anglo-Swiss Condensed Milk Company in 1866 Henri Nestl, a German pharmacist, launched Farine lacte in 1867
Infant product Global company by 1872 Basis for todays corporate philosophy

ASCMC and Nestl merged in 1905 to form Nestl

History & Overview

Commenced as a trading company in Sri Lanka in 1906 over a century ago Became Publically Quoted in 1983 Home to best known brands

Positive impact on livelihoods

Direct employment: 1200 Distributors, Suppliers, Farmers & families: 23000

Timeline of Events
1906: 1950: 1980: 1980: 1981: 1983: 1984: 1986: 1993: 1998: 2004: Nestl arrives in Sri Lanka Nestl Products (Ceylon) Ltd Dairy development in Sri Lanka Joint venture International Dairy Products Ltd Nestl Lanka Limited (NLL) Nestl Lanka Ltd Public Offering Nestl Kurunegala Factory Eastern Food Specialities Ltd (EFSL) Dedicated Facility for Coconut Milk Powder Production UHT Plant in Polonnaruwa 100% ownership of IDPL

Timeline of Events
2005: Nestl Nutrition 2006: Merger of Nestl Lanka Limited with Subsidiaries 2007: Registration of Nestl Lanka PLC Relocation of Polonnaruwa Plant 2008: Nestl Professional 2009: Completion of LKR 125 million post-tsunami projects Nestl Nutrition Institute 2010: Nestl Health Science 2011: Launches LKR 10 billion investment plan in Sri Lanka Commissions Malt Beverage line in Kurunegala Factory 2012: Commissions Noodle Plant and UHT Plant in Kurunegala Factory

Brands
Renown brands:

In addition, global brands: Kit-Kat and Milkmaid Maggi Coconut Milk Powder the most preferred in the global market
(60 countries across 5 continents)

Brands
Modern Production Facility in Kurunegala manufactures 90%+ of Nestl products sold in Sri Lanka

Recent Brand awards:

Effie Awards 2012
Silver Effie - Maggi Devilled Noodles Bronze Effie - Nescaf

SLIM Nielsen Peoples Awards 2012/13

Hot Beverage of the Year - Nescaf Food Brand of the Year - Maggi Youth Food Brand of the Year - Maggi

Corporate Governance
Board of Directors
Antonio Helio Waszyk (Chairman)
Chairman and Managing Director of Nestl India Limited Director of Nestl Bangladesh Limited

Ganesan Ampalavanar
Managing Director of Nestl Lanka PLC

Syed Saiful Islam

Vice President - Finance & Control of Nestl Lanka

Pierre Schaufelberger
Zone Regional Manager

Mahen Dayananda (Independent Non-Executive Director) Ranjan Seevaratnam (Independent Non-Executive Director)

Corporate Governance
Shareholder breakdown (as at 31 December 2012)

List of 10 Major Shareholders

Financial Performance (2012)

Financial Performance
Additional statistics for 2012 (Rs.000s)
Profit for the year Total Assets Equity Total Liabilities = = = = 2,977,668 8,643,289 3,769,023 4,874,266

Share price variation 2013

Rural Development - Milk

In terms of value of products sold, Nestl is the worlds largest milk company The Milk District model
First used in the 1870s Farmers supply Nestl milk factories directly, and Nestl provides facilities and support to develop the local supply chain Includes local Collection, Storage and Chilling facilities Provides a reliable route to market and product quality assurance Nestl Agronomists and Vets provide technical advice & training to farmers Provide access to financial assistance

Rural Development - Milk

Uplifting the livelihood of Dairy Farmers
Promote good dairy farming practices such as cattle feeding and breeding, animal health and farm management Pioneered large scale fresh milk collection in NorthEastern districts at the end of the Civil War
Chilling centres opened by Nestl in Jaffna, Kilinochchi, Mallavi and Oddusudan

For Nestl: a regular supply of high-quality milk to meet consumer demand For farmers: more rewarding price, regular payment, a secure route to market and access to local facilities

Rural Development - Coconuts

Nestl Lanka is the largest exporter of Coconut Milk Powder in the world Two-fold approach to create Shared Value
Create Direct and Indirect employment Transfer of Technology, Knowledge and other development programmes

54 million coconuts procured a year

Positively impact 5,000 rural based Sri Lankan coconut farmers and their families

Rural Development Water & Env. Sustainability

Centred around the UN Global Compact (UNGC) CEO Water Mandate Active setting up of Nestl Clean Drinking Water projects
Facilities of highest hygiene and quality Drilling bore wells Using existing deep wells Installing water pumps & tanks Water education made part of curriculum, with every project

Awards & Recognition

Women in Management Award
For empowering private sector female leadership

Swarnadeepa Award
For its contribution to the Agricultural sector

Global Commerce Excellence Award

For supporting the national economy and activities prior, during and post Civil Conflict; as an overseas partner

Best Corporate Citizen Award

Highest Corporate Honour for a Sri Lankan business

NCE Export Award

Most Outstanding Sri Lankan Exporter Award in the Agri Bulk sector

Awards & Recognition

National Cleaner Production Award
Overall Bronze (only food processing company awarded)

Achiever Award
For its contributions towards commercial growth and creative thinking (only multinational awarded)

National Green Award

Recognizing the companys world-class initiatives to conserve the environment at its Kurunegala factory

CSV Award
A medal of appreciation for the companys contribution to the economic and social development of Sri Lanka

Swarna Lanka Award

For tremendous dedication in developing the country

Thank You