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5 June 2015

Update | Sector: Consumer

Nestle India
BSE Sensex
26,768

S&P CNX
8,115

CMP: INR5,997

TP: INR6,300 (+5%)

Neutral

Food safety concerns muddy the waters


Tangible (volume decline) + Intangible (Brand Equity) costs at stake
Stock Info
Bloomberg

NEST IN

Equity Shares (m)


52-Week Range (INR)

96.4
7500/4755

1, 6, 12 Rel. Per (%)

-9/1/17

M.Cap. (INR b)

578.2

M.Cap. (USD b)

9.1

AvgVal. INRm/Vol000

188/31

Free float (%)

37.2

Financial Snapshot (INR Billion)


Y/E Dec
2014E 2015E 2016E
Net Sales
98.1 109.0 123.6
EBITDA

20.6

25.1

29.1

Adj PAT

12.6

15.4

18.3

EPS (INR)

130.2 160.2 190.0

Growth (%)

6.8

23.0

18.6

BV/Sh. (INR)

294.3 327.7 366.8

RoE (%)

48.2

51.5

54.7

RoCE (%)

53.7

70.3

74.4

P/E (x)

46.0

37.4

31.6

P/BV (x)

20.4

18.3

16.3

Shareholding pattern (%)


As on
Mar-15 Dec-14 Mar-14
Promoter
62.8
62.8
62.8
DII

4.5

4.7

5.3

FII
12.5
13.8
13.7
Others
20.2
18.7
18.3
FII Includes depository receipts
Stock Performance (1-year)

The event: In the past few days, various state Food Safety authorities have
conducted quality tests on Maggi Noodles (Maggi) to ascertain whether
Lead and Monosodium Glutamate (MSG) levels are within permissible limits
or not. The controversy erupted when the Lucknow Food Safety and Drug
Administration found excess lead and MSG in Maggi after a few samples
were subjected to tests at Kolkatas referral laboratory. Several other state
governments have conducted tests on Maggi samples to check for any
violation of the food safety standards and banned the product temporarily
(Uttarakhand, Tamil Nadu, Kerala, Gujarat, Delhi, Madhya Pradesh, Bihar
and J&K have issued a notification to ban the manufacture, storage,
distribution and sale of Maggi). The controversy has reportedly hurt sales as
several retailers (such as WalMart, Big Bazaar, Reliance and Metro) have
pulled Maggi off the shelves; the company is also facing a backlash on social
media websites.
Nestle Indias initial response: Nestle India has defended itself and stated
that (press release appended in the note) as per internal tests conducted
on 1000 batches and independent lab test on 600 batches, Maggi is safe to
eat with lead levels well within the food safety limits specified by the Indian
authorities. However it has temporarily taken Maggi off the shelves till the
probe is over, citing consumer confusion around the product and
emphasized that the trust of the consumer and safety of the products
remains its top priority. At todays press conference, Nestles Global CEO
Paul Bulcke stated that the company maintains the same food safety and
quality assurance standards for Maggi across the world, and it is
deciphering the reason for discrepancies in the company test results and
those conducted by the government authorities.
Likely impact of the controversy: Even as we believe that Nestle will
eventually tide over the crisis by addressing additional requirements of the
authorities, we are of the view that the controversy around the product has
impacted the brands iconic status in the interim. Prepared Dishes &
Cooking Aids forms 29% of sales and Instant Noodles constitutes ~75-80%
of the segment revenues, in our view. Thus, we estimate that Maggi
Noodles contributes ~20% of revenues and ~25% of operating profit.
Besides the obvious impact on sales, the crisis could also hurt the operating
leverage of Nestle as Prepared Dishes & Cooking Aids was the only segment
during CY14 that was growing in volumes. However, we believe that the
impact on brand equity is more devastating because Maggi is widely
consumed by kids and restoring consumer trust could take time.

Gautam Duggad (Gautam.Duggad@MotilalOswal.com); +91 22 3982 5404


Manish Poddar (Manish.Poddar@MotilalOswal.com); +91 22 3027 8029
Investors are advised to refer through disclosures made at the end of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Nestle India

FSSAI order: FSSAI has ordered Nestle to take the following steps: a)
Withdraw and recall all the nine approved variants of Maggi Instant
Noodles from the market and stop further production, processing, import,
distribution and sale of the product with immediate effect; b) remove No
added MSG label from the existing packaging; c) withdraw and recall
Maggi Oats Masala Noodles with Tastemaker for which risk/safety
assessment has not been undertaken and product approval has not been
granted; d) withdraw with immediate effect any other Nestle food product
from market for which risk assessment has not been undertaken; e) submit
a compliance report within three days and furnish progress reports on the
recall process on a daily basis thereafter till the process is completed.
Valuation and View: We await Nestles response to FSSAI order and keep
our estimates unchanged at this stage. We understand this issue could also
impact the performance of other products in the prepared dishes portfolio
for Nestle in the near term (Pasta, Soup, Ketchup, etc). Have valuations
reached a stage where great franchise going through crisis and should be
bought thesis can be applied? We believe valuations havent corrected
adequately yet (despite the ~20% correction from recent peak) to make the
risk/reward favorable. The Stock trades at 37x CY15E and 32x CY16E EPS.
We will await better entry points to turn more constructive on the stock.
Recent operating performance has been sluggish (three-year volume CAGR
of 0.7%). Maintain Neutral with a revised target price of INR6300 (33x CY16
EPS; we reduce our target P/E from 38x to 33x to keeping in mind the
uncertainty). We note that our estimates can change materially depending
on the outcome of this case and Nestles decision on timelines to keep the
product off the shelves.

Exhibit 1: Change in EPS assuming 25% volume decline for Prepared Foods and Dishes segment in CY15E
Existing EPS

2010

2011

2012

2013

2014

2015E

86.8

105.7

114.1

121.9

130.2

160.2

EPS if Prepared Dishes volumes decline 25%

140.9

Change in EPS (%)

(12.0)

Note: Cadbury revenues declined by 30% due to worms controversy in 2003

5 June 2015

Source: Company, MOSL

Nestle India

Key takeaways from todays press conference of Nestles CEO


Paul Bulcke

Maggi Noodles are safe to eat. No MSG is added during manufacturing.


Taken Maggi off the shelves temporarily, until current situation is clarified. Trust
of consumers and safety of products is the top priority.
Internal tests and independent tests conducted by the company indicate that
the product is safe and well within the food safety limits specified by the Indian
authorities.
Nestle is undertaking additional tests to ensure there is no problem.
No sharing of the test reports formally yet. Open to any kind of facility check
that the government wants to undertake.
Same food safety and quality assurance standards maintained for Maggi across
the world.
Been in India for more than 100 years. India is important for Nestle. Not taking
Maggi off from shelves in other countries.
Will come out with new packaging without the No added MSG label.

Highlights from statement of India Food Safety and Standards


Authority (FSSAI)
FSSAI has directed to Nestle for the following course of action given their findings:
Withdraw and recall all the nine approved variants of Maggi Instant Noodles
from the market and stop further production, processing, import, distribution
and sale of the product with immediate effect.
Remove of the No added MSG label from the existing packaging to comply
with the related labelling regulations.
Withdraw and recall Maggi Oats Masala Noodles with Tastemaker for which
risk/safety assessment has not been undertaken and product approval has not
been granted.
Withdraw with immediate effect any other Nestle food product from the market
for which risk assessment has not been undertaken.
Ssubmit a compliance report within three days and furnish progress reports on
the recall process on a daily basis thereafter till the process is completed.

Key Takeaways from ConCall with Mr. Chandra Bushan, Centre


for Science and Environment (CSE)
We recently hosted Mr Chandra Bushan, Deputy Director General of Center for
Science and Environment, to discuss more on the Ongoing probe of Harmful
substances in Packaged Foods. Following are the key takeaways:
Four categories that food safety covers: a) Processed foods, b) agro chemicals
(pesticides in raw food commodities like rice, vegetables), c) proprietary foods
(energy drinks, energy boosters, malt beverages), and d) organic foods.
Indian regulatory regime not updated for processed foods. Maggi tests done on
standards that are 15 years old.

5 June 2015

Nestle India

UP case: Lead content found in Maggi, so the case should go to a logical


conclusion and Maggi should pay fine. This case could impact the brand image
of Maggi. Delhi has banned Maggi in schools.
Controversy like Maggi is just a beginning; regulators are looking for stricter
rules. Expect standards to come in for different products categories that claim
use of a certain product results in increase in height (malted beverages
segment).
Wholesale changes to be made in the next five years in domestic as well as
imported processed foods categories.
Bottled water standards in India are currently the best in the world.

Exhibit 2: Press Statement issued by Nestle India stating that Maggi Noodles is safe but still deciding to take the product off
th
the shelves citing trust of consumer and safety and quality of products being the foremost priority (dated 5 June 2015)

Source: Company, MOSL

5 June 2015

Nestle India
Exhibit 3: Press Statement issued by Nestle India stating extensive test results do not reveal excess lead in Maggi Noodles
th
(dated 1 June 2015)

Source: Company, MOSL

Exhibit 4: Nestle Indias Webpage providing further details on Maggi

Source: Company, MOSL

5 June 2015

Nestle India

Story in charts
Exhibit 5: Overall sales growth lowest since CY04; led by
price/mix
Price Growth (%)
30.0
14.5
6.6

10.0

Sales Growth (%)

Volume Growth (%)

23.922.6
22.120.3
16.8
11.8
11.411.4
9.3

11.4
4.1

16.9

16.0
12.2
8.0

13.8
10.2

14.9

17.0

8.3

6.8

5.1 4.9

0.8 1.9

0.0

(0.6)

Source: Company, MOSL

CY13

CY12

CY11

CY10

CY09

CY08

CY07

CY06

CY05

CY04

CY03

CY02

CY01

CY14

CY13

CY12

CY11

CY10

CY09

CY08

CY07

CY06

CY05

CY04

CY03

CY02

CY01

-10.0

CY14

20.0

Exhibit 6: Volume growth lowest in last 14 years

Source: Company, MOSL

Exhibit 7: Volume growth CAGR muted over the last three years
CAGR (%)
Volume
Pricing
Sales

2004-14
8.3
6.8
15.6

Exhibit 8: Increased volume contribution from Prepared


Dishes
Milk Products/ Nutrition
Prepared Dishes

Beverages
Chocolate & Conf.

2009-14
5.0
8.7
14.2

Exhibit 9: Sales contribution of Milk products increased in


CY14
Milk Products/ Nutrition
Prepared Dishes

12.4

12.8

11.8

10.6

10.2

9.0

43.6

46.3

49.1

52.6

53.5

55.8

6.5

6.3

6.0

5.6

6.0

5.4

37.6

34.6

33.2

31.2

30.3

29.7

CY09

CY10

CY11

CY12

CY13

CY14

Beverages
Chocolate & Conf.

14.8

15.3

14.3

13.6

13.7

12.4

25.6

27.1

28.1

28.3

28.8

29.2

15.4

14.1

13.9

13.1

14.1

13.2

44.3

43.5

43.7

45.0

43.4

45.2

CY09

CY10

CY11

CY12

CY13

CY14

Source: Company, MOSL

Exhibit 10: Gross margin contracted 70bp YoY..


Gross Margin (%) 54.3

Source: Company, MOSL

Exhibit 11: ..while EBITDA margins were down 90bp YoY


EBITDA Margin (%)

54.3

22.0

53.6
53.0
51.8

52.1
51.2

51.8
19.2

51.0

CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14


Source: Company, MOSL

5 June 2015

2011-14
0.7
8.9
9.7
Source: Company, MOSL

19.9

20.0

20.2

20.7

21.9
21.0

20.0

CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14


Source: Company, MOSL

Nestle India
Exhibit 12: Nestles segment-wise performance
2004
Volume
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total
Volume Growth
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total
Price
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total
Price Growth
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total
Sales (INR m)
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total
Sales Growth
Milk Products
Beverages
Prepared Dishes & Cooking Aids
Chocolate & Confectionery
Total

5 June 2015

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

96,750 99,371 102,243 107,736 118,651 134,142 144,397 147,984 140,386 138,772 135,591
24,994 24,606 22,342 24,107 24,114 23,369 26,458 26,692 25,353 27,717 24,673
60,463 65,603 78,706 98,259 127,835 155,555 193,494 219,041 236,554 245,443 254,553
23,575 26,246 30,402 35,752 40,200 44,116 53,483 52,678 47,745 46,718 41,080
205,782 215,826 233,693 265,854 310,800 357,182 417,832 446,395 450,038 458,650 455,897
7.4%
-4.0%
3.8%
9.9%
5.1%

2.7%
-1.6%
8.5%
11.3%
4.9%

2.9%
-9.2%
20.0%
15.8%
8.3%

5.4%
7.9%
24.8%
17.6%
13.8%

10.1%
0.0%
30.1%
12.4%
16.9%

13.1%
-3.1%
21.7%
9.7%
14.9%

7.6%
13.2%
24.4%
21.2%
17.0%

2.5%
0.9%
13.2%
-1.5%
6.8%

-5.1%
-5.0%
8.0%
-9.4%
0.8%

-1.1%
9.3%
3.8%
-2.2%
1.9%

-2.3%
-11.0%
3.7%
-12.1%
-0.6%

111
118
126
146
163
172
192
226
275
293
337
211
237
271
299
332
344
340
400
443
478
543
70
76
76
79
82
86
89
98
103
110
116
147
147
150
159
169
175
182
209
245
275
305
115,307 122,501 125,986 137,187 143,857 146,212 152,611 171,901 190,692 204,510 222,188
1.6%
0.8%
-1.0%
-6.3%
-0.9%

6.1%
12.1%
9.9%
-0.3%
6.2%

6.3%
14.4%
-0.7%
2.3%
2.8%

16.3%
10.6%
4.6%
6.1%
8.9%

11.7%
10.9%
3.5%
6.3%
4.9%

5.4%
3.6%
4.3%
3.5%
1.6%

11.6%
-1.2%
3.9%
4.3%
4.4%

17.8%
17.8%
10.3%
14.4%
12.6%

21.4%
10.6%
4.4%
17.3%
10.9%

6.7%
7.9%
7.0%
12.4%
7.2%

15.0%
13.7%
5.8%
10.8%
8.6%

10,781
5,274
4,206
3,465
23,728

11,752
5,822
5,017
3,845
26,439

12,857
6,048
5,980
4,557
29,442

15,756
7,219
7,811
5,686
36,472

19,388
8,009
10,519
6,795
44,711

23,113
8,042
13,350
7,719
52,224

27,763
8,994
17,250
9,759
63,766

33,510
10,684
21,545
10,997
76,736

38,594
11,227
24,302
11,696
85,819

40,712 45,752
13,241 13,398
26,982 29,613
12,864 12,532
93,799 101,295

9.1%
-3.2%
2.7%
2.9%
4.1%

9.0%
10.4%
19.3%
11.0%
11.4%

9.4%
3.9%
19.2%
18.5%
11.4%

22.6%
19.4%
30.6%
24.8%
23.9%

23.0%
10.9%
34.7%
19.5%
22.6%

19.2%
0.4%
26.9%
13.6%
16.8%

20.1%
11.8%
29.2%
26.4%
22.1%

20.7%
18.8%
24.9%
12.7%
20.3%

15.2%
5.5% 12.4%
5.1% 17.9%
1.2%
12.8% 11.0%
9.7%
6.4% 10.0%
-2.6%
11.8%
9.3%
8.0%
Source: Company, MOSL

Nestle India

Exhibit 13: Financial Overview of Nestle India


CY09
Total Revenues
Raw Material Consumed
Milk/SMP
Raw coffee/Green Coffee
Sugar
Wheat flour
Vegetable Oils
Packaging Material
Others
Gross Profit
Employee Benefit Expense
Other Expenses
Power and Fuel
Repairs
Advertising & Sales Promotion
Freight and Transport
Royalty
Others
EBITDA
Less: Interest Expense
Less: Depreciation
Add: Other Income
Profit before Tax (PBT)
Tax
Profit after Tax (PAT)

5 June 2015

CY10

CY11

CY12

CY13

CY14

51,294

100.0 62,547

100.0 74,908

100.0 83,023

100.0 90,619

100.0 98,063

100.0

8,675
2,152
1,428
1,934
1,662
3,838
4,796
26,810
4,489

16.8 10,830
4.2 2,277
2.8 2,062
3.8 2,613
3.2 2,003
7.5 4,827
9.3 5,942
52.1 31,992
8.7 4,585

17.3 9,044
3.6 3,091
3.3 1,863
4.2 3,106
3.2 3,235
7.7 5,907
9.5 9,705
51.0 38,957
7.3 5,717

12.0 9,215
4.1 3,257
2.5 2,067
4.1 3,698
4.3 3,261
7.9 6,300
12.9 9,964
51.8 45,259
7.6 6,877

11.1 8,281
3.9 3,714
2.5 1,961
4.4 4,306
3.9 3,373
7.6 7,034
12.0 12,556
54.3 49,396
8.3 7,672

9.1 11,202
4.1 3,783
2.2 1,778
4.7 4,468
3.7 3,509
7.7 7,582
13.8 12,918
54.3 52,823
8.4 8,577

11.4
3.8
1.8
4.5
3.6
7.7
13.1
53.6
8.7

1,589
578
2,675
2,404
2,033
2,698
10,345
14
1,113
378
9,596
2,620
6,976

3.1 2,192
1.1
712
5.2 3,026
4.7 2,996
3.9 2,491
5.2 3,493
20.1 12,497
11
1,278
427
18.6 11,635
3,264
13.5 8,370

3.5 2,958
1.1
754
4.8 3,226
4.8 3,525
4.0 2,832
5.6 4,416
19.9 15,528
51
1,533
509
18.5 14,452
4,264
13.3 10,189

3.9 3,709
1.0
930
4.3 3,559
4.7 3,842
3.8 3,173
5.9 4,912
20.7 18,257
266
2,772
633
19.2 15,852
4,847
13.6 11,006

4.5 3,854
1.1
962
4.3 3,955
4.6 4,374
3.8 3,396
5.9 5,379
21.9 19,804
365
3,300
1,222
19.0 17,362
5,609
13.2 11,753

4.2 3,843
3.9
1.1 1,031
1.0
4.3 4,455
4.5
4.8 4,795
4.9
3.7 3,863
3.9
5.9 5,647
5.7
21.8 20,612
21.0
142
3,375
1,359
19.1 18,454
18.7
5,897
12.9 12,557
12.7
Source: Company, MOSL

Nestle India

Financials and valuations


Income Statement
Y/E December
Net Sales
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Ch.
Other Inc.- Rec.
PBT
Change (%)
Margin (%)
Tax
Tax
Deferred Tax
Tax Rate (%)
Adjusted PAT
Change (%)
Margin (%)
Non-rec. (Exp)/Inc.
Reported PAT
Balance Sheet
Y/E December
Share Capital
Reserves
Net Worth
Loans
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Investments
Current
Non-current
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Curr. Assets
Def. Tax Liability
Appl. of Funds
E: MOSL Estimates
5 June 2015

2010
62,547
21.9

20.9%
2011
74,908
19.8

2012
83,023
10.8

2013
90,619
9.1

2014
98,063
8.2

2015E
109,015
11.2

(INR Million)
2016E
123,614
13.4

50,051
12,497
20.8
20.0
1,278
11
427
11,635
21.2
18.6
3,264
3,252
13
28.1
8,370
20.0
13.4
184
8,187

59,381
15,528
24.3
20.7
1,533
51
509
14,452
24.2
19.3
4,264
4,161
102
29.5
10,189
21.7
13.6
573
9,616

64,766
18,257
17.6
22.0
2,772
266
633
15,852
9.7
19.1
4,847
3,728
1,119
30.6
11,006
8.0
13.3
327
10,679

70,815
19,804
8.5
21.9
3,300
365
1,222
17,362
9.5
19.2
5,609
5,075
534
32.3
11,753
6.8
13.0
582
11,171

77,450
20,612
4.1
21.0
3,375
142
1,359
18,454
6.3
18.8
5,897
5,824
73
32.0
12,557
6.8
12.8
710
11,847

83,928
25,087
21.7
23.0
3719
44
1,558
22,883
24.0
21.0
7,437
7,214
223
32.5
15,446
23.0
14.2
764
14,682

94,498
29,117
16.1
23.6
3,794
61
1,871
27,134
18.6
22.0
8,818
8,554
265
32.5
18,315
18.6
14.8
841
17,475

2015E
964
30,633
31,597
600
32,197
51,788
22,042
29,746
2,448
10,056
6,342
3,714
26,939
9,488
1,388
13,472
2,590
34,542
7,720
4,505
22,318
-7,603
-2,450
32,197

(INR Million)
2016E
964
34,404
35,368
500
35,868
53,597
25,836
27,761
2,448
12,459
7,928
4,532
35,767
10,620
1,749
20,078
3,320
39,852
8,786
5,108
25,959
-4,085
-2,715
35,868

2010
964
7,590
8,554
0
8,554
18,547
8,420
10,127
3,489
1,507
1,507
0
10,460
5,760
633
2,553
1,514
16,696
7,454
167
9,075
-6,236
-333
8,554

2011
964
11,775
12,740
9,709
22,448
25,522
9,765
15,758
13,718
1,344
1,344
0
13,199
7,340
1,154
2,272
2,432
21,067
4,808
5,287
10,972
-7,869
-502
22,448

2012
964
17,020
17,984
10,502
28,486
44,276
12,233
32,043
3,441
3,649
3,649
0
12,507
7,456
876
2,370
1,806
21,532
5,394
5,580
10,558
-9,025
-1,621
28,486

2013
964
22,723
23,687
11,895
35,582
49,032
15,339
33,693
2,947
8,511
6,270
2,241
17,992
7,359
843
7,494
2,296
25,406
6,330
5,003
14,073
-7,414
-2,155
35,582

2014
964
27,408
28,372
196
28,568
50,090
18,323
31,766
2,448
8,118
5,074
3,045
15,863
8,441
991
4,458
1,972
27,400
7,287
4,096
16,017
-11,537
-2,227
28,568

Nestle India

Financials and valuations


Ratios
Y/E December
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)

2010

2011

2012

2013

2014

2015E

2016E

86.8
100.1
88.7
48.5
55.9

105.7
121.6
132.1
48.5
45.9

114.1
142.9
186.5
48.5
42.5

121.9
156.1
245.7
48.5
39.8

130.2
165.2
294.3
63.0
48.4

160.2
198.8
327.7
102.0
63.7

190.0
229.3
366.8
122.0
64.2

Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)

69.1
59.9
9.2
45.9
67.6
0.8

56.8
49.3
7.8
37.6
45.4
0.8

52.5
42.0
7.0
31.9
32.2
0.8

49.2
38.4
6.3
29.0
24.4
0.8

46.0
36.3
5.8
27.5
20.4
1.1

37.4
30.2
5.1
22.1
18.3
1.7

31.6
26.2
4.4
18.8
16.3
2.0

Return Ratios (%)


RoE
RoCE

116.5
156.1

95.7
90.3

71.6
60.8

56.4
51.5

48.2
53.7

51.5
70.3

54.7
74.4

Working Capital Ratios


Debtor (Days)
Asset Turnover (x)

3.6
8.4

5.5
4.7

3.7
3.1

3.3
2.7

3.6
2.9

4.5
3.3

5.0
3.4

Leverage Ratio
Debt/Equity (x)

0.0

0.8

0.6

0.5

0.0

0.0

0.0

Cash Flow Statement


Y/E December
OP/(loss) before Tax
Int./Div. Received
Depn. and Amort.
Interest Paid
Direct Taxes Paid
Incr in WC
CF from Operations

2010
11,219
427
974
11
3,252
-1,397
10,754

2011
13,994
509
1,345
51
4,161
-882
12,518

2012
15,485
633
2,468
266
3,728
-996
15,588

2013
16,505
1,222
3,106
365
5,075
-2,892
18,285

2014
17,237
1,359
2,985
142
5,824
-474
16,089

2015E
21,369
1,558
3,719
44
7,214
-4,316
23,704

(INR Million)
2016E
25,323
1,871
3,794
61
8,554
-2,246
24,620

Incr in FA
Free Cash Flow
Pur of Investments
CF from Invest.

4,832
5,922
-526
-4,306

17,204
-4,686
-163
-17,041

8,476
7,112
2,305
-10,781

4,262
14,022
4,862
-9,125

559
15,530
-393
-166

1,698
22,005
1,938
-3,636

1,809
22,811
2,403
-4,212

Incr in Debt
Dividend Paid
Others
CF from Fin. Activity

-6
5,448
3
-5,451

9,709
5,435
-32
4,242

793
5,435
-68
-4,710

1,393
5,471
42
-4,036

-11,699
7,106
-152
-18,958

404
11,457
0
-11,053

-100
13,704
0
-13,804

997
1,556
2,553

-281
2,553
2,272

97
2,272
2,369

5,124
2,370
7,494

-3,035
7,494
4,458

9,014
4,458
13,473

6,605
13,472
20,077

Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
5 June 2015

10

Nestle India

NOTES

5 June 2015

11

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12