History & Overview

• Nestlé is a Swiss Company• First European condensed milk factory by Anglo-Swiss

Condensed Milk Company in 1866• Henri Nestlé, a German pharmacist, launched Farine

lactée in 1867– Infant product– Global company by 1872– Basis for today’s corporate

philosophy

• ASCMC and Nestlé merged in 1905 to form Nestlé

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

Timeline of Events

• 2005: Nestlé Nutrition• 2006: Merger of Nestlé Lanka Limited with Subsidiaries• 2007: Registration of Nestlé Lanka PLC

Relocation of Polonnaruwa Plant• 2008: Nestlé Professional• 2009: Completion of LKR 125 million post-tsunami projects

Nestlé Nutrition Institute• 2010: Nestlé 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 Nestlé products sold in Sri Lanka

• Recent Brand awards:– Effie Awards 2012• Silver Effie - Maggi Devilled Noodles• Bronze Effie - Nescafé

– SLIM Nielsen Peoples Awards 2012/13• ‘Hot Beverage of the Year’ - Nescafé • ‘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 Nestlé India Limited• Director of Nestlé Bangladesh Limited

– Ganesan Ampalavanar• Managing Director of Nestlé Lanka PLC

– Syed Saiful Islam• Vice President - Finance & Control of Nestlé 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.000’s)– Profit for the year = 2,977,668– Total Assets = 8,643,289– Equity = 3,769,023– Total Liabilities = 4,874,266

• Share price variation – 2013

Rural Development - Milk

• In terms of value of products sold, Nestlé is the world’s largest milk company

• The ‘Milk District’ model– First used in the 1870’s– Farmers supply Nestlé milk factories directly, and Nestlé

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– Nestlé 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 North-Eastern districts at the end of the Civil War• Chilling centres opened by Nestlé in Jaffna, Kilinochchi, Mallavi and

Oddusudan

• For Nestlé: 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

• Nestlé 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 ‘Nestlé 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 company’s world-class initiatives to conserve the

environment at its Kurunegala factory• CSV Award– A medal of appreciation for the company’s contribution to the

economic and social development of Sri Lanka• Swarna Lanka Award– For tremendous dedication in developing the country

Thank You…