Nestlé (Malaysia) Berhad. January June Financial Analysts Briefing 14 th August 2015

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1 Nestlé (Malaysia) Berhad January June 2015 Financial Analysts Briefing 14 th August 2015

2 Disclaimer 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.

3 We were able to increase our Profit in a sustainable manner PAT as % of NNS 11.9% 370 bps 230 bps 20 bps 20 bps 12.9% PAT H Cost of sales Operating expenses Financing Taxes PAT H1 2015

4 Powerful I&R pipeline in 2015

5 Fertile opportunities: rich in excitement & exceptional value

6 Fertile opportunities: rich in excitement & exceptional value

7 Fertile opportunities: rich in excitement & exceptional value

8 Fertile opportunities: rich in excitement & exceptional value

9 Fertile opportunities: rich in excitement & exceptional value

10 Fertile opportunities: rich in excitement & exceptional value

11 Fertile opportunities: rich in excitement & exceptional value

12 Fertile opportunities: rich in excitement & exceptional value

13 Fertile opportunities: rich in excitement & exceptional value

14 The investments have resulted in MS gains MS development in Q MILO Powder MAGGI Noodles Culinary Solutions Liquid Drinks Milk powder Nescafe Confectionery

15 Malaysian consumer confidence dropped to a 6 year low in Quarter 1 CONSUMER CONFIDENCE INDEX MALAYSIA YTD MAR 2015 GST Source: Malaysian Institute of Economic Research s (MIER), YTD Mar 2015

16 FMCG SLOWDOWN SIGNIFICANT DECELERATION ACROSS ASIA, MALAYSIA WORST HIT Asia FMCG Value movement Q2 13 vs YA Q3 13 vs YA Q4 13 vs YA Q1 14 vs YA Q2 14 vs YA Q3 14 vs YA Q4 14 vs YA Q1 15 vs YA Q1 15 vs YA China (Urban) 9% 9% 7% 6% 6% 6% 5% 5% 5% Indonesia 10% 19% 17% 12% 12% 4% 1% Thailand 9% 9% 5% 5% 4% 1% 1% 3% 0% Urban Vietnam 8% 10% 9% 6% 5% 0% 4% 1% 2% Rural Vietnam 11% 13% 13% 12% 11% 8% 8% 10% 7% Taiwan 8% 2% 7% 1% 3% 0% 2% 4% 8% Malaysia 3% 0% -1% 1% 2% 2% -2% 0% -2% India (Urban) -4% 2% 7% 6% 8% 7% 4% 4% 5% Source: Kantar Worldpanel, YTD Jun 2015

17 FMCG SLOWDOWN MALAYSIA (IN HOME): Food most impacted Source: Kantar Worldpanel, YTD Jun 2015

18 all of this impacted our domestic Q2 Turnover 1,007 +4% 1,048 H1 NNS in MYR Mio Q1 NNS in MYR Mio 2,013-2% ,970 1,006-8% Q2 NNS in MYR Mio

19 Export has started to normalize Average: Export NNS in MYR Mio Q Q Q Q Q Q2 2015

20 1,273 Development of total Turnover +0.4% 1,278 H1 NNS in MYR Mio Q1 NNS in MYR Mio 2,543-5% ,270-10% 2,421 Q2 NNS in MYR Mio 1,

21 H % 3.7% 3.4% 7.3% 6.6% 9.3% 11.0% Working Capital is continuously improving 12.0% 10.0% ATNWC 8.0% 6.0% 4.0% 2.0% 0.0%

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