COMPANY PROFILE

Nestl India is a subsidiary of Nestle S.A. of Switzerland. With seven factories and a large number of co-packers, Nestl India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledged amongst India's 'Most Respected Companies' and amongst the 'Top Wealth Creators of India'.

HISTORY

Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated b y Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys

transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Nestls relationship with India dates back to 1912, when it began trading as The Nestl AngloSwiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans. Nestl set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instil amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well. For more on Nestl Agricultural Services.

OPERATIONS
Nestl has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the Nestl Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices. Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita. Nestl India is a responsible organization and

facilitates initiatives that help to improve the quality of life in the communities where it operates.

PRESENCE IN INDIA
Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India has commissioned in 2006 its 7th factory at Pant Nagar in Uttarakhand.

BRANDS . MILK PRODUCTS AND NUTRITION

EVERYDAY DAIRY WHITENER EVERYDAY GHEE MILK SLIM MILK SILM MILK NEVISTA PRO-HEART MILK FRESH n NATURAL DAHI FREAH n NATURAL SLIM DAHI JEERA RAITA NESVITA DAHI MILKMAID FRUIT YOGHURT MILKMAID MILKMAID FUNSHAKES NIDO BEVERAGES NESCAFE CLASSIC SUNRISE PREMIUM SUNRISE SPECIAL CAPPUCCINO MILO SMART PLUS READY TO- DRINK ICED TEA WITH GREEN TEA NESTEA ICED TEA PREPARED DISHES AND COOKING AIDS MAGGI 2 MINUTE NOODLES VEG ATTA NOODLES RICE NOODLES MANIA CUPPA MANIA SAUCES PICHKOO

 PIZZA MAZZA MAGIC CUBES BHUNA MASALA COCONUT MILK POWDER HEALTHY SOUPS HEALTHY SOUP-SANJEEVNI CHOCOLATES AND CONFECTIONERY KIT-KAT KIT-KAT CHUNKY MUNCH MUNCH POP CHOC MILKYBAR MILKYBAR CHOO BAR-ONE MILK CHOCOLATE POLO ECLAIRS MILKYBAR ECLAIRS

NESTLE & COMMUNITY

Nestl India has always focused on long term, sustainable and profitable growth and helped communities around its factories to improve their quality of life in a similar manner. Nestl Agricultural Services has used the experience gained by Nestl across the world to set up a system of direct and efficient contact with the farmers. Company veterinarians and agronomists supervise the milk routes and advise farmers on various issues including proper feed for the herds. Milk storage facilities have been set up close to the farmers. Veterinary services are provided free, and medicines provided at wholesale cost. The company assists farmers in artificial insemination programs for their cattle, provides subsidy and helps them in procuring loans.

CHAPTER 4. COMPANY DATA AND ANALYSIS

Price History Price Mkt Cap Vol P/E P/CF EPS (TTM) Rs Rs m '000 X X Rs 5,010.0 483,064 1.7 44.0 35.9 113.7 No. of shares % ch % ch week % ch 1-mth % ch 12-mth 52 week H/L m % 96.42 -2.2

% -0.1 % -11.1 % 13.6 Rs 5,806.2/4,262.5

(As on Aug 16, 2013 (Close))

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Financials No. of Months Year Ending 12 Dec-08 12 Dec-09 12 Dec-10 12 Dec-11 12 5-Yr Chart Click to Dec-12 enlarge

* Results Consolidated

EQUITY SHARE DATA

High Low Sales per share (Unadj.) Earnings per share (Unadj.) Diluted earnings per share Cash flow per share (Unadj.) Dividends per share (Unadj.) Adj. dividends per share Dividend yield (eoy) Book value per share (Unadj.) Adj. book value per share Shares outstanding (eoy) Bonus/Rights/Conversions Price / Sales ratio Avg P/E ratio P/CF ratio (eoy) Price / Book Value ratio Dividend payout Avg Mkt Cap No. of employees Total wages/salary Avg. sales/employee Avg. wages/employee Avg. net profit/employee x x x x % Rs m `000 Rs m Rs Th Rs Th Rs Th Rs Rs Rs Rs Rs Rs Rs Rs % Rs Rs m 1,880 1,200 448.5 55.4 55.4 65.0 42.50 42.50 2.8 49.1 49.1 96.42 3.4 27.8 23.7 31.4 76.7 148,487 4.7 3,146 9,183.1 668.1 1,134.2 2,739 1,377 532.0 67.9 67.9 79.5 48.50 48.50 2.4 60.3 60.3 96.42 3.9 30.3 25.9 34.1 71.4 198,432 5.0 4,324 10,293.8 867.8 1,314.5 4,199 2,456 648.7 84.9 84.9 98.2 48.50 48.50 1.5 88.7 88.7 96.42 5.1 39.2 33.9 37.5 57.1 320,838 5.6 4,334 11,223.4 777.7 1,468.9 4,549 3,160 779.4 99.7 99.7 115.6 48.50 48.50 1.3 132.1 132.1 96.42 4.9 38.7 33.3 29.2 48.6 371,651 6.6 5,465 11,318.7 823.2 1,448.3 5,025 3,930 864.4 110.8 110.8 139.5 48.50 48.50 1.1 186.5 186.5 96.42 5.2 40.4 32.1 24.0 43.8 431,721 7.0 6,634 11,893.0 946.6 1,523.8

INCOME DATA
Net Sales Other income Total revenues Gross profit Rs m Rs m Rs m Rs m 43,243 339 43,582 8,637 51,294 378 51,672 10,345 62,548 427 62,975 12,497 75,145 272 75,417 15,764 83,346 310 83,656 18,581

Depreciation Interest Profit before tax Minority Interest Prior Period Items Extraordinary Inc (Exp) Tax Profit after tax Gross profit margin Effective tax rate Net profit margin

Rs m Rs m Rs m Rs m Rs m Rs m Rs m Rs m % % %

924 16 8,036 0 0 -308 2,387 5,341 20.0 29.7 12.4

1,113 14 9,596 0 0 -426 2,620 6,550 20.2 27.3 12.8

1,278 11 11,635 0 0 -184 3,265 8,186 20.0 28.1 13.1

1,533 51 14,452 0 0 -573 4,264 9,615 21.0 29.5 12.8

2,772 266 15,853 0 0 -327 4,847 10,679 22.3 30.6 12.8

BALANCE SHEET DATA

Current assets Current liabilities Net working cap to sales Current ratio Inventory Turnover Debtors Turnover Net fixed assets Share capital "Free" reserves Net worth Long term debt Total assets Interest coverage Debt to equity ratio Sales to assets ratio Return on assets Return on equity Return on capital Exports to sales Imports to sales Exports (fob) Imports (cif) Fx inflow Fx outflow Rs m Rs m % x Days Days Rs m Rs m Rs m Rs m Rs m Rs m x x x % % % % % Rs m Rs m Rs m Rs m 7,980 11,848 -8.9 0.7 37 4 8,622 964 3,764 4,733 0 16,950 503.3 0 2.6 31.6 112.8 163.6 7.8 4.5 3,374 1,940 3,374 6,040 8,566 14,224 -11.0 0.6 35 5 9,758 964 4,843 5,813 0 20,356 686.4 0 2.5 32.2 112.7 158.0 6.4 5.0 3,262 2,587 3,262 7,886 10,460 16,696 -10.0 0.6 34 4 13,616 964 7,582 8,554 0 25,583 1,058.7 0 2.4 32.0 95.7 134.0 5.6 6.1 3,505 3,843 3,505 9,718 12,903 14,675 -2.4 0.9 36 6 29,475 964 11,767 12,740 7,250 44,018 284.4 0.6 1.7 22.0 75.5 69.7 5.2 13.4 3,902 10,046 3,902 16,718 14,901 11,284 4.3 1.3 33 4 35,484 964 17,012 17,984 10,500 51,639 60.6 0.6 1.6 21.2 59.4 55.4 5.1 5.2 4,232 4,351 4,232 11,981

Net fx

Rs m

-2,666

-4,624

-6,213

-12,816

-7,749

CASH FLOW
From Operations From Investments From Financial Activity Net Cashflow
* Results Consolidated

Rs m Rs m Rs m Rs m

7,219 -2,519 -3,736 964

9,279 -2,552 -5,424 1,303

10,368 -4,459 -5,438 471

11,582 -15,285 3,232 -471

16,934 -9,408 -5,132 2,394

Source: Company Annual Reports, Regulatory Filings, Equitymaster

Historical quarterly results for nestle india limited

Raw Materials Data ITEM Coffee Milk Others Sugar Share Holding Indian Promoters Foreign collaborators Indian inst/Mut Fund FIIs ADR/GDR Free float Shareholders Pledged promoter(s) holding : : : : : : : :

Rs m 3,257.4 9,214.9 16,729.6 2,067.2

% To R.M.C. 10.4 29.5 53.5 6.6 Company Information

Top % To SALES 3.8 10.7 19.4 2.4 Top WEB: FAX: www.nestle.in (011) 2341 5130

0.0% 62.8% 6.7% 11.9% 0.0% 18.7% 59,928 0.0%

REGD OFF: E-MAIL:

M-5A, Connaught Circus, New Delhi - 110 001 investor@in.nestle.com

TELEPHONE: (011) 2341 8891 SECTOR: TR AGENT: AUDITOR: BEVERAGES, FOOD & TOBACCO

GROUP: M N C

Alankit Assignments, 2E/21, Jhandewalan Extension, New Delhi-55 A. F. Ferguson & Co.

CHM: Antonio Helio

Waszyk (MD)

COMP SEC: B. YEAR OF Murli (SVP Legal) INC: 1959

BSE CODE: 500790

FV (Rs): 10

YIELD (%): 1.0

REVENUE
CHF 109.9 Billion (2008)

OPERATING INCOME
CHF 15.68 Billion (2008)

Nestl India still waiting for volume growth to rebound

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0 Comments, Be the first to comment + COMMENT
MONEYLIFE DIGITAL TEAM | 14/05/2013 04:07 PM |

While the long-term picture for Nestle India is still intact, near-term growth concerns will weigh the companys stock down, says Nomura Equity Research Nestl India's revenues and adjusted net profit growth of less than 10% during the March quarter continue to be underwhelming feels Nomura Equity Research. More important is the fact that volume growth trajectory continues to lag in low single digits, which remains a cause for concern for the company and the shareholders alike, the brokerage said. Nomura said, We believe these results show that a turnaround in volume growth trajectory is still some way off, which should hold back stock price performance from current levels.

Nomura has also pointed out the favourable aspect in the companys performance. Exports are up 51%, which have pushed the consolidated net sales up. However, domestic business reported growth of just 7.7% (primarily lead by price increases), which was 2% below Nomuras estimates. Domestic sales were on the lower base of last year where growth was just 13.7%. The companys performance is given in the table below:

We continue to maintain a Neutral stance and believe that while the long-term picture is still intact, near-term growth concerns will weigh the stock down. The market price of the company's share is likely to fall up to about Rs4,516. Investors are advised to await the volume growth rebound, Nomura concluded.
(FROM MONEY LIFE MAGAZINE) OR http://www.moneylife.in/

PROFIT
CHF 18.04 Billion (2008)

The informations stated above are subject to change , so to keep your selfupdated please the official website of the company: www.nestle.in

Sources:
www.nestle.in www.nestle.com www.wikipedia.org www.financialexpress.com