1

Financial Analysts’ Briefing 18th April 2014

First Quarter Results 2014

Nestlé Malaysia Bhd

2

Agenda

Introduction & overview

Financials

Questions & answers

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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

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FINANCIALS

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Financial

Operational

Strategic

Focus on 7 value drivers

VALUE DRIVERS

1. SALES GROWTH

2. PROFIT MARGIN

3. WORKING CAPITAL INTENSITY

4. FIXED CAPITAL INTENSITY

5. INCOME TAX RATE

6. COST OF CAPITAL

7. VALUE GROWTH DURATION

6

SALES GROWTH

7

0.92 1.01

0.31 0.26

0

2

Q1 2013 Q1 2014

Export sales

Domestic sales

Domestic Sales +9.2%

Export Sales -12.8% +3.7%

RM1.23 Bio RM1.27 Bio

Sales Evolution Q1 2014 vs Q1 2013

8

0.88 1.01

0.260.26

0

2

Q4 2013 Q1 2014

Export sales

Domestic sales

Domestic Sales +15.1%

Export Sales +0.9% +11.8%

RM1.14 Bio RM1.27 Bio

Sales Evolution Q1 2014 vs Q4 2013

9

0.92 1.01

0.31 0.26

20%

40%

60%

80%

100%

Q1 2013 Q1 2014

Exp Dom

24.9%

75.1%

20.9%

79.1%

RM1.23 Bio RM1.27 Bio

Channel Sales

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Sales by Product Categories

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List of New Products

Q1'14

Products

Ice Cream Goreng Chocolate Jan'14

Ice Cream Goreng Vanilla Jan'14

MAT KOOL Popz Jan'14

Nestle Dolce Gusto Espresso Intenso Jan'14

Nestle Dolce Gusto Milo Mar'14

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EBITDA MARGIN

13

22.3% 21.3%

20.1% 19.1%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

24.0%

27.0%

0

50

100

150

200

250

300

350

400

450

500

Q1 2013 Q1 2014

EBITDA EBITDA as % of Sales EBIT as % of Sales

Evolution of EBITDA

RM274 Mio RM271 Mio

14

52%

12%

36%

RM

PM

S&IM

Breakdown of Material & Services Consumed

Jan ‘14 – Mar‘14

Total = RM 0.69 Bio.

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COMMODITY UPDATES

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Cocoa Bean

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Cocoa Powder Ratio

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Coffee bean

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Milk Solids

20

Crude Palm Oil

BMD CPO Price

21

Wheat

22

Sugar

23

Crude Oil

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NET PROFIT MARGIN

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Net Profit Evolution

15.0% 14.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

250

300

Q1 2013 Q1 2014

% of Sales

RM184 Mio RM184 Mio

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NESTLÉ MALAYSIA BERHAD

KEY FIGURES

Amounts in RM mio Q1 2014 Q1 2013 % Change

Sales 1,273 1,227 3.7

Domestic 1,006 922 9.2

Export 266 306 (12.8)

Operating Profit/(Loss) 243 247 (1.5)

% of Sales 19.1 20.1

Net Profit 184 184 (0.5)

% of Sales 14.4 15.0

Operating Expenses 230 201 14.7

Current Assets 1,112 1,028 8.2

Inventories 394 384 2.8

Inv (Days) 14 14

Trade Receivable 239 216 10.8

TR (Days) 15 13

Capital Expenditure 28 9 195.1

27

MY Trade Net Working Capital

11

.0%

9.3

%

7.3

%

6.6

%

3.7

%

3.5

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%2

00

9

201

0

201

1

201

2

201

3

Qtr

1 '1

4

ATNWC

TNWC

(quarter end)

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Cash Flow Q1 2014

RM (Mio)

Q1 2014 Q1 2013

Profit Before Tax adjusted for

depreciation & interest

(Increase) / Decrease in working capital (104) (81)

Income tax & others (37) (35)

Net cash from operating activities

Capital Investments (28) (9)

Others 2 1

Cash Flow after Investing activities 104 150

271 274

130 158

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Thank You