YEARS OF INCREDIBLE MOMENTS - malaysiastock.biz pemasaran bagi mewujudkan kesedaran mengenai sambutan seratus tahun kami telah menyumbang kepada jualan yang lebih tinggi dalam semua

SHARING

YEARS OF INCREDIBLE MOMENTS

2012ANNUAL REPORT

Dear Shareholder,Nestlé (Malaysia) Berhad’s 2012 Annual Reportcomprises the following:

• Corporate Report• Corporate Governance & Financial Report• Creating Shared Value Report (Summary)

The Bahasa Malaysia version of this 2012 report will be made available in CD-ROM format at the Company’s Annual General Meeting (AGM) on 2 MAY 2013.

For further information, please contactGroup Corporate Affairs Department (+603 7965 6000)or visit our website at www.nestle.com.my

www.nestle.com.my

Nestlé (Malaysia) Berhad (110925-W)

22-1, 22nd Floor, Menara Surian

No. 1, Jalan PJU 7/3

Mutiara Damansara

47810 Petaling Jaya

Selangor Darul Ehsan

Malaysia

Tel: (+603) 7965 6000

Fax: (+603) 7965 6767

Nestlé Consumer Services Free Phone: 1-800-88-3433

Facebook: http://www.facebook.com/NestleMalaysia

Nestlé has been by the side of Malaysians for the past 100 years. It is our promise that we will continue to do so for another 100 years and beyond, by continuously improving the quality and nutritional value of all our products, providing good and responsible communication to our consumers and ensuring product availability.

2012 merupakan tahun penting bagi Nestlé Malaysia kerana: kami

menyambut tahun ke-100 sejak bermulanya operasi kami di Pulau

Pinang pada 1912, dan kami juga telah mencatatkan satu lagi

pertumbuhan dua angka dengan peningkatan kadar keuntungan.

Selain itu, usaha kami dalam menjana nilai bersama untuk

masyarakat mendapat pengiktirafan sewajarnya dengan Anugerah

Platinum NACRA bagi laporan CSR terbaik, yang mencerminkan

ketelusan laporan Menjana Nilai Bersama kami, yang telah disahkan

dengan tahap A+, mengikuti piawaian Inisiatif Pelaporan Global

(GRI).

ULASAN PRESTASI

Ekonomi Malaysia kekal berdaya saing disamping ketidaktentuan

ekonomi di peringkat global. Pada masa yang sama, Kumpulan

berjaya mencatatkan perolehan sebanyak RM4.6 bilion, 7.3% lebih

tinggi berbanding tempoh yang sama tahun lalu, dan kebanyakannya

didorong oleh pertumbuhan pesat di peringkat domestik. Rangkaian

jenama dan produk Kumpulan yang kukuh, serta pelaburan

pemasaran bagi mewujudkan kesedaran mengenai sambutan

seratus tahun kami telah menyumbang kepada jualan yang lebih

tinggi dalam semua kategori produk - Konfeksi, Minuman Cecair,

Tenusu Dingin dan Ais Krim, berjaya mencatatkan pertumbuhan

dua digit yang teguh.

Kumpulan turut aktif membuat renovasi dan inovasi pada rangkaian

produk sedia adanya, termasuklah pelancaran NESCAFÉ 3dalam1

Brown and Creamy,varian campuran MILO (Milo Kurang Manis,

MILO Tinggi Serat, MILO Bijirin), MAGGI Mi Goreng baru dan dua

varian tambahan NESTUM 3dalam1 dengan herba Cina. Produk-

produk baru ini diterima dengan baik dalam pasaran dan ini telahpun

membantu kami menjana pertumbuhan dan imej jenama dengan

lebih baik lagi.

Bagaimanapun, situasi ekonomi global yang lebih lemah memberi

kesan ke atas permintaan eksport yang mencatatkan pertumbuhan

yang lebih perlahan selepas prestasi yang teguh pada 2011.

Dari segi kos input, harga bahan mentah utama yang digunakan oleh

Kumpulan tidak berubah begitu banyak pada tahun ini berbanding

2011, namun ianya kekal pada tahap tinggi dan terus memberi

tekanan pada margin kami. Inisiatif penjimatan kos dalaman di

bawah naungan program Kecemerlangan Berterusan Nestlé (NCE)

telah meringankan tekanan kos sepanjang tahun ini.

Jumlah jualan yang kukuh digandingkan dengan kecekapan dalam

operasi telah mendorong keuntungan sebelum cukai mencapai

RM637.7 juta, dengan peningkatan margin dasar sebanyak 80 mata

asas. Keuntungan bersih adalah sebanyak RM505.4 juta, dengan

peningkatan margin sebanyak 100 mata asas.

TADBIR URUS KORPORAT

Sepanjang tahun ulasan ini, Lembaga Pengarah telah menyemak

dan mengukuhkan pelbagai aspek Tadbir Urus Korporat. Sejajar

dengan saranan Bursa yang baru, kami akan memperkenalkan

proses pengundian dalam Mesyuarat Agong Tahunan kami yang

akan datang. Inisiatif syarikat kami yang digelar “We Make Nestlé”,

yang bermula pada 2011, bermatlamat untuk mengukuhkan nilai-

nilai korporat kami dan memastikan pematuhan sepenuhnya kepada

undang-undang dan peraturan luar serta piawaian dan garis panduan

dalaman. Dalam setiap unit, juara-juara Pematuhan menyokong

para pengurus dalam tugas mereka. Kami juga memperkenalkan

satu talian luaran sulit bagi memudahkan laporan untuk sebarang

isu ketidakpatuhan.

Mesej kepada para peMegang sahaM

SAMBUTAN SERATUS TAHUN

2012 menandakan tahun ke-100 kami beroperasi di Malaysia dan

bagi meraikan pencapaian ini, kami telah mengadakan pelbagai

acara sepanjang tahun ini bagi menghargai para pengguna kami dan

pihak berkepentingan lain atas sokongan mereka. Acara pelancaran

utama Sambutan 100 Tahun Nestlé kami diadakan di Dataran

Merdeka, Kuala Lumpur pada 18 Mac 2012. Acara ini diserikan

dengan kehadiran Duli Yang Maha Mulia Sultan Selangor, Sultan

Sharafuddin Idris Shah, yang merasmikan pelancaran bersama-

sama dengan Paul Bulcke, CEO Nestlé S.A., Nandu Nandkishore,

Naib Presiden Eksekutif Nestlé S.A. (yang bertanggungjawab ke

atas Zon Asia, Oceania, Afrika dan Timur Tengah) dan Ahli Lembaga

Pengarah Nestlé Malaysia.

Aktiviti-aktiviti lain yang diadakan termasuklah Pameran 100 Tahun

Nestlé di Muzium Negara dan Acara Nestlé Nourishing Malaysia

Showcase di Penang, serta juga aktiviti-akitivi promosi bagi para

pengguna kami. Selain itu, kami juga telah melancarkan beberapa

inisiatif Menjana Nilai Bersama (CSV) yang berkaitan dengan

pemakanan dan alam sekitar.

MENJANA NILAI BERSAMA

Falsafah perniagaan kami berasaskan konsep Menjana Nilai

Bersama (CSV), yang menyatakan bahawa untuk berjaya buat

masa jangka panjang, kami perlu menjana nilai bukan sahaja untuk

para pemegang saham malah juga untuk masyarakat di mana kami

beroperasi. Usaha kami ditumpukan kepada tiga bidang di mana

kami mampu menyumbang iaitu Pemakanan, Air dan Pembangunan

Luar Bandar.

Sepanjang tahun ini, kami terus mengukuhkan asas pemakanan

produk kami bagi mempromosikan pemakanan yang lebih baik

dan gaya hidup sihat di kalangan rakyat Malaysia, serta melibatkan

pihak berkepentingan utama bagi menangani isu Penyakit Tidak

Berjangkit (NCD) lalu menyokong agenda Kementerian Kesihatan

dalam menangani ancaman itu.

Untuk Pemakanan, kami baru melancarkan Program Cara Hidup

Sihat, yang dilaksanakan dengan kerjasama Kementerian Pelajaran

dan Universiti Putra Malaysia (UPM), yang bermatlamat untuk

meningkatkan pengetahuan dan amalan gaya hidup sihat di

kalangan pelajar sekolah dari 100 buah sekolah berasrama terpilih.

Kami juga turut meneruskan program Nestlé Healthy Kids, kami,

di mana 189 pelajar kini melalui tahun kedua dalam program tiga

tahun tersebut.

Untuk Air, kami berjaya menanam lebih daripada 100,000 batang

pokok di sepanjang Sungai Kinabatangan di Sabah, yang merupakan

sebahagian daripada Nestlé Project RiLeaf, yang bermatlamat

mewujudkan landskap di mana manusia, alam sekitar dan pertanian

dapat hidup secara harmoni dalam keperluan mereka terhadap air.

Untuk Pembangunan Luar Bandar, kami telah menubuhkan Kelab

Padi Nestlé (NPC) bagi mengurangkan kesan alam sekitar dalam

penanaman padi dan pada masa yang sama, menambahkan

pendapatan sebenar petani melalui peningkatan hasil.

Sesi Penglibatan Pihak Berkepentingan kami diadakan pada bulan

Jun tahun ini, menumpukan pada penentangan NCD, selain peranan

dan kerjasama antara sektor swasta, pihak kerajaan dan NGO.

Ringkasan daripada inisiatif CSV kami boleh didapati dalam Laporan

Ringkasan Menjana Nilai Bersama 2012 yang dilampirkan.

Sepanjang tahun ini, kami terus mengukuhkan asas pemakanan

produk kami bagi mempromosikan pemakanan yang lebih baik

dan gaya hidup sihat di kalangan rakyat Malaysia, serta melibatkan

pihak berkepentingan utama bagi menangani isu Penyakit Tidak

Berjangkit (NCD).

ANUGERAH DAN PENGHARGAAN

Komitmen kami bagi Menjana Nilai Bersama diperakui dan diiktiraf

oleh industri dan rakan sejawat kami dengan penganugerahan

pelbagai anugerah dan pengiktirafan. Pada tahun 2012, kami

memenangi Anugerah Platinum untuk Laporan CSR di Anugerah

NACRA bagi Laporan Menjana Nilai Bersama 2011 kami, yang

telah diperakui oleh Bureau Veritas Certification Sdn Bhd yang

mengesahkannya dengan tahap kadar A+ mengikuti piawaian

Inisiatif Pelaporan Global (GRI). Anugerah ini adalah bukti komitmen

kami bagi ketelusan dan urus tadbir, dan piawaian laporan tinggi

yang kami tetapkan untuk kami sendiri.


DIVIDEN

Berdasarkan prestasi teguh pada 2012, Lembaga Pengarah

mengesyorkan dividen bersih muktamad sebanyak RM1.55

sesaham, memberikan jumlah dividen bersih yang dicadangkan dan

diisytiharkan bagi tahun kewangan ini sebanyak RM2.10 sesaham,

peningkatan 16.7% dari dividen tahun sebelumnya.

PROSPEK UNTUK 2013

Kami kekal optimistik untuk tahun 2013 memandangkan jangkaan

pertumbuhan KDNK sebanyak 5% untuk Malaysia oleh penganalisis.

Tambahan lagi, kami percaya bahawa pihak kerajaan akan terus

menyediakan sokongan melalui projek dan pembangunan projek,

yang akan terus merangsang pendapatan pengguna. Kami juga

menjangka bahawa harga komoditi akan stabil walaupun pada

tahap tinggi.

Bagaimanapun, kami perlu berwaspada dan terus mengawasi

ekonomi global dan kesannya pada kos dan pertumbuhan. Walaupun

pertumbuhan domestik bagi rantau ASEAN dijangka bergantung

pada kenaikan pasaran saham, ini menjadi petanda baik untuk

pasaran domestik dan eksport di rantau ini, malah kebimbangan

tetap kekal pada beberapa isu di beberapa bahagian lain di dunia.

Di peringkat dalaman, kami akan terus meningkatkan kecekapan

melalui program Kecemerlangan Berterusan Nestlé dan

memanfaatkan inovasi dan renovasi bagi produk-produk kami.

Sejajar dengan matlamat Kerajaan bagi membangunkan masyarakat

yang sihat dan produktif, kami akan mempromosikan lagi

pemakanan berkhasiat dan gaya hidup sihat selain melaksanakan

usaha berterusan kami bagi menyediakan produk yang lebih sihat

dan lebih lazat kepada pengguna.

Sambutan seratus tahun yang diadakan sepanjang 2012 adalah

suatu kejayaan hebat, kami dapat menjalin hubungan yang lebih

erat dengan para pengguna, pelanggan dan pihak berkepentingan

melalui aktiviti-aktiviti yang dijalankan. Ini menyediakan platform

untuk kami mara lebih jauh ke hadapan dan mengukuhkan

komitmen kami kepada negara untuk tahun-tahun akan datang.

PENGHARGAAN

Pada tahun ini, kami menyaksikan perubahan dalam pasukan

Lembaga Pengarah dan Pengurusan. Detlef Krost, Pengarah

Eksekutif Teknikal dan Pengeluaran dan ahli Lembaga Pengarah

sejak 2009, dinaikkan pangkat menjadi Ketua Teknikal Zon

Amerika bagi Kumpulan Nestlé. Kami mengambil peluang ini

untuk mengucapkan terima kasih kepada beliau atas sumbangan

cemerlang beliau kepada pertumbuhan dan pembangunan

Kumpulan sepanjang perkhidmatan beliau bersama kami.

Beliau diganti oleh Adnan Pawanteh, yang kini memegang jawatan

Pengarah Eksekutif, Teknikal & Pengeluaran pada 1 Jun 2012 dan

dilantik ke dalam Lembaga Pengarah berkuatkuasa pada 2 Julai

2012. Beliau kembali ke Nestlé Malaysia selepas berkhidmat

sebagai Pengarah Teknikal di Nestlé Turki selama dua tahun. Kami

mengalu-alukan kehadiran beliau dan kami yakin bahawa beliau

akan terus membangunkan kepakaran dan meningkatkan prestasi

Unit Teknikal.

Sebagai penutup, Lembaga Pengarah mengucapkan terima kasih

kepada pasukan pengurusan dan semua kakitangan atas komitmen

dan dedikasi mereka, kerana tanpa mereka, kecemerlangan

berterusan Kumpulan tidak mungkin dapat dicapai.

Kami juga berterima kasih pada rakan kongsi, pengedar dan

pelanggan kami kerana terus menyokong dan setia pada syarikat

dan jenama kami. Akhir sekali, kami mengucapkan berbanyak-

banyak terima kasih kepada jutaan pengguna Malaysia yang

membeli produk kami setiap hari dan menjadi sebab untuk kejayaan

syarikat kami.

Tan Sri Dato’ Seri Syed ZainolAnwar JamalullailPengerusi

Peter VogtPengarah Urusan


2012年是大马雀巢的里程碑年，因为在这一年，是本集团庆祝自1912年于槟城创业迄今的一百周年，同时业务也再次达到双位数增长率，盈利率亦更上一层楼。此外，获外界评定为A+GRI评级的雀巢创造共享价值报告荣获NACRA最佳企业社会责任报告白金奖，反映其透明度和全面性，也显示本集团在社会创造共享价值方面的致力备受认可。

业绩概览虽然全球经济局势持续变幻不定，马来西亚的经济依然坚韧，因此对本集团十分有利，集团营业额达到46亿令吉，比去年同期增加7.3%，其中最大因素为国内市场的强势增长。本集团的强大品牌和产品，加上一百周年纪念庆典的各种造势营销投资也促长各产品类别销量，其中糖果、液状饮料、冷藏乳制品和冰淇淋均取得出色的双位数增长率。

本集团也积极改革和创新现有产品系列，其中包括推出NESCAFÉ 三合一Brown and Creamy、新的MILO混合口味（低糖MILO、高纤维MILO、谷粮MILO）、新 MAGGI MI Goreng 以及两种含中药的 NESTUM 三合一。这些新产品在市面上均有不俗的反应，有助进一步推动增长和品牌形象。

另一方面，稍见疲软的环球经济局势冲击关联客户的需求量，导致出口增长率继2011年优秀表现之后有所放缓。

在投入成本方面，本集团使用的主要原料价格比 2011年波动较少但仍然持高，因此继续对赚幅造成压力。全年期间，雀巢持续优秀（Nestlé Continuous Excellence）计划下推行的内部节省成本举措有助集团舒缓成本压力。

在高销量和营运效率提升之下，本集团的税前盈利达到了6亿3千770万令吉，赚幅增加80 基点。净盈利为5亿540万令吉，赚幅则上升100基点。

企业治理在年度检讨期间，董事会已针对企业治理各方面加以检讨和增强。本集团也将配合马来西亚交易所的新建议，在即将来临的年度股东大会上推行投票表决制度。于2011年在全公司上下开始实行的“We Make Nestlé”计划宗旨在于巩固公司的企业价值观，并确保全面遵循所有外部法律、条规以及内部标准和准则。各单位有合规监察者辅助部门经理执行任务。本集团也推出了一项外界保密热线，方便报告任何不合规事宜。

一百周年庆典2012 年是雀巢在马来西亚营业的一百周年，为纪念这重大里程碑，本集团全年举办多项活动，以感谢顾客和其他权益相关方的支持。雀巢一百周年庆典的主要推介仪式于2012年3月18日在吉隆坡独立广场举行，并承蒙雪兰莪苏丹 Sultan Sharafuddin Idris Shah 殿下驾临，与雀巢集团首席执行员Paul Bulcke、主掌亚洲、大洋洲、非洲和中东区的雀巢集团执行副总裁 Nandu Nandkishore 以及大马雀巢董事会成员共同主持推介礼。

其他重要百年庆典活动包括在国家博物院的雀巢一百周年展览会、槟城的‘雀巢为大马提供营养’展览会，以及为顾客主办的各种促销活动。此外，本集团也发起多项与营养和环保有关的创造共享价值(CSV) 计划。

创造共享价值创造共享价值（CSV）概念是本集团营运哲理的根本，强调雀巢若要争取长远成就，就必须同时为股东以及营业范围的社会创造价值。本集团专注在能够作出最大贡献的三大领域，分别为营养、水和乡区发展。

本集团全年不断加强产品的营养基础，以鼓励大马人接受更良好的营养和健康生活方式。此外，本集团也支持卫生部解决非传染性疾病（NCD）威胁的计划，与主要权益相关方交流商讨以解决有关问题。

在营养方面，本集团最近推出一项与教育部和马来西亚博特拉大学（UPM）协同实行的“健康生活方式” （“Cara Hidup Sihat”）计划。此计划的目标是改善一百间特选寄宿学校的中学生对健康生活方式的知识和实践。此外，本集团也继续进行为期三年的雀巢健康儿童计划，参与的189 名学生如今已进入第二个年头。

至于水方面，本集团成功在沙巴州沿京那巴当岸河下游栽种超过十万棵树，这是属于雀巢RiLeaf计划的一部分，此重要环保计划的目的是打造一个环境，让人类、大自然和农业在用水需求方面可以和谐共处。

至于乡区发展，本集团创办了雀巢稻米社（Nestlé Paddy Club）以减少种稻的环境痕迹，同时改善产量来提升稻农的实际收入。

致股东们的讯息

本集团的传统权益相关方会议于今年6月举行，会议重点为防治非传染性疾病以及私人界、政府和非政府组织之间的合作和角色。随年度报告书附上的2012年创造共享价值概要报告书内有记载本集团的创造共享价值计划概要。

荣誉和奖项雀巢的创造共享价值承诺和备受业内同行致力认可，并获授予多项荣誉和奖项以示表扬。

雀巢的2011年创造共享价值报告书荣获2012年NACRA企业社会责任报告白金奖，此报告书也获得外界必维国际检验集团（Bureau Veritas Certification）私人有限公司评定为A+ GRI评级。此奖证明本集团致力于透明度和治理，以及集团自定的高报告水准。

股息由于2012年业绩表现出色，董事会因此建议派发每股1令吉55仙的终期净股息，使本财政年度的建议和宣布净股息总额达到每股2令吉10仙，比去年股息增加16.7%。

2013年展望据分析员预测，马来西亚的国内生产总值增长率为大约 5%，因此本集团对2013年的前景乐观。不仅如此，本集团亦认为政府将继续提供支持，并透过发展计划和奖励来提升消费者的可支配收入。本集团也预料原产品价格会呈高位稳定状态。

即使如此，本集团依然需要保持谨慎和不断监督环球经济趋势以及它对成本和增长的影响。一方面，东南亚区内增长率预料看涨，对国内市场和区域出口业务有利；另一方面，世界其余各区在多项问题上仍有隐忧。

本集团将通过雀巢持续优秀(Nestlé Continuous Excellence Programme) 计划继续提升内部效率，并充分利用产品的持续创新改革。为了响应政府打造健康和有效率社会的目标，本集团将在不断致力为消费者呈献更健康和更美味产品的同时，进一步推广营养饮食和健康生活方式。

本集团于2012年举办的一百周年纪念庆典，效果十分成功。本集团得以从众多活动之中与消费者、顾客和权益相关方建立更稳固的关系，借此迈进和加强雀巢对国家未来的承诺。

鸣谢本集团的董事会和管理团队在本年度经历一些变动。自2009 年起担任董事会成员兼技术和生产执行总监的 Detlef Krost 先生获擢升为雀巢集团的美洲区技术主管。本集团借此机会感谢他在任期间为集团发展所作的杰出贡献。

他的职位由 Adnan Pawanteh 先生取代，后者是于2012年6月1日上任技术和生产执行总监一职，并于2012年7月2日受委为董事会成员。Adnan Pawanteh 先生是在赴土耳其雀巢担任技术总监两年后重返大马雀巢。本集团热烈欢迎他，同时也相信他必定能够继续栽培技术单位的专长及提升其绩效。

最后，董事会欲向管理团队和全体职员致谢，因为集团得以持续成功，全归功于他们的尽心尽力奉献和付出。

本集团也欲感谢雀巢的合作伙伴、经销商和顾客对本集团和品牌的忠实支持。我们也向每日购买雀巢产品，也是本集团成功根源的千千万万马来西亚消费者深深表示谢意。

董事主席

丹斯里拿督斯里 Syed Zainol Anwar Jamalullail

董事经理

Peter Vogt

致股东们的讯息

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jd; ];uP jj;Njh nrup iraJ /i[dhy;

(Tan Sri Dato’ Seri Syed Zainolmd;tu; [khYy;yhapy; (Anwar Jamalullail)jiytu;

gPl;lu; Nthl; (Peter Vogt)epu;thf ,af;Fdu;

In the last 100 years, we have won the trust of Malaysians through the quality and integrity of our products by successfully delivering on our promise of ‘GOOD FOOD, GOOD LIFE’ to our consumers.

Corporate Report

2012

21 Oct 2011Nestlé 100 Years Media Launch

Carcosa Seri Negara, Kuala Lumpur

14 Jan 2012Nestlé 100 Years Musical Sponsorship

Dewan Filharmonik PETRONAS, Kuala Lumpur

18 Jan 2012Nestlé Walking Day

BU Park, Bandar Utama

7 Mar 2012Nestlé 100 Years Coffee Table Book Launch

Nestlé HOU, Surian Tower

18 Mar 2012 Nestlé 100 Years Museum Exhibition Launch

National Museum, Kuala Lumpur

14 April 2012Nestlé 100 Years Musical Sponsorship

Dewan Filharmonik PETRONAS, Kuala Lumpur

27 - 29 April 2012Nestlé Nourishing Malaysia

Straits Quay, Penang

15 - 17 June 2012Nestlé SuperMeet 2012

Bukit Jalil, Kuala Lumpur

15 July 2012Nestlé 100 Years Golf

Kuala Lumpur Golf & Country Club (KLGCC)

24 Nov 2012Nestlé 100 Years Gala Dinner

Kuala Lumpur Convention Centre

Sharing 100 years of incredible moments

18 March 2012 Nestlé 100 Years Celebration

Offi cial Launch

Dataran Merdeka, Kuala Lumpur

Nestlé Malaysia announced its 100th year of presence in the country. Themed “Nestlé di sisimu”, the yearlong celebration kicked off with a high profi le celebration event at Dataran Merdeka.

In conjunction with the 100 Years celebration, Nestlé Malaysia treated a few charity organisations and students from selected schools to a heartwarming musical called “Fairytales in Music”, by the Malaysian Philharmonic Orchestra.

The fi rst Nestlé Walking Day of 2012 saw 100 Nestlé employees walking 3,000 steps at Central Park in Bandar Utama to raise awareness on the importance of healthy living and wellness.

Nestlé Malaysia hosted an exclusive charity golf invitational event at KLGCC in aid of 10 orphanages, as part of its continuing centenary celebrations. It was also an opportunity for the Company to foster relations with its key corporate partners, customers, media, suppliers and associated government agencies.

Nestlé Malaysia employees enjoyed a night of splendour and glamour at its 100 years celebration gala dinner, which was held at the Kuala Lumpur Convention Centre. They were treated to performances by Malaysia’s very own diva, Sheila Majid, and also the multi-talented Zainal Abidin. Many went home happy after claiming great prizes from the lucky draw.

The limited edition of ‘100 Tahun Nestlé di sisimu’ coffee table book was produced and launched in conjunction with the Company’s 100 years celebration in Malaysia. The book narrates the story of Nestlé over a century of its operations through the people whose lives Nestlé has touched.

Held at Dataran Merdeka, the 100 years celebration was launched by HRH Sultan Sharafuddin Idris Shah Ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Alhaj, Sultan of Selangor, together with Paul Bulcke, Chief Executive Offi cer of Nestlé S.A, Nandu Nandkishore, Executive Vice President of Nestlé S.A., in charge of Zone Asia, Oceania, Africa and Middle East, Tan Sri Dato’ Seri Syed Zainol Anwar Jamalullail, Chairman of Nestlé Malaysia and Peter Vogt, Managing Director of Nestlé Malaysia.

The Nestlé 100 Years Museum Exhibition showcased the history of the Company’s incredible journey in Malaysia, which began 100 years ago when the Company started its operations in Penang as the Anglo-Swiss Condensed Milk Company.

Nestlé Malaysia treated selected charity homes and schools to two classic musical takes – “Peter and the Wolf & Babar the Elephant”, which was narrated by Malaysia’s premier stand-up comedian Harith Iskandar, and accompanied by the Malaysian Philharmonic Orchestra.

The 7th Nestlé Nourishing Malaysia Showcase was held in Penang. where the Company fi rst started its operations. The Showcase was uniquely different as it took visitors through the various scenarios in the everyday Malaysian’s life, whilst demonstrating health lifestyles and activities.

With the main objectives of strengthening camaraderie and teamwork, the 2012 Nestlé Supermeet saw the participation of employees from both Malaysia and Singapore markets. The team-building event was held at Majlis Sukan Negara in Bukit Jalil.

2 Performance at a Glance

6 Message to Shareholders

12 Business Review

22 What Creating Shared Value Means to Us

26 Corporate Information

27 Board of Directors

28 Profi le of Directors

32 Management Team

34 Profi le of Management Team

36 Notice of Annual General Meeting

Proxy Form

Inside

29th Annual General Meeting

Clarke Ballroom, Le Méridien Kuala Lumpur,

2, Jalan Stesen Sentral, Kuala Lumpur Sentral,

50470 Kuala Lumpur on Thursday, 2 May 2013 at 10.00 a.m.

Performance at a Glance

• Turnover of RM4.6 billion is 7.3% higher, up by RM310 million from 2011

• Profi t before tax up 14.1% to RM638 million with underlying margin improvement of 80bps

• Higher earnings per share, up by 18.3% to RM2.16

• Declared and proposed dividend increased

by 16.7% to RM2.10 per share

• Operating cash fl ow increased fromRM582 million to RM829 million

Operating Cash FlowNet ProfitIncrease in Turnover

+42.4%+18.3%+7.3%

Turnover (RM’000)

2008 2009 2010 2011 2012

3,87

7,06

8

3,74

4,23

3

4,02

6,31

9

4,24

6,74

4

4,55

6,42

3

As from 1 January 2012, certain allowances and discounts are disclosed as a deduction of sales in conformity with Nestlé S.A. Group policy and with the practice generally applied by consumer goods companies.

For comparative purpose, 2011 is adjusted to refl ect the new turnover defi nition.

2 Nestlé (Malaysia) Berhad 110925-W

Focus on Nutrition, Health and Wellness continued to bring enhanced benefi ts forconsumers and greater differentiation in the market place. Coupled with the marketing and promotional activities initiated in conjunction with Nestlé celebrating its 100 years in Malaysia, Domestic sales grew by 9.7%. After an exceptional strong performance in 2011, Export grew by 0.8% in 2012.

74.5%

25.5%

72.9%

27.1%2012 2011

Total Sales (%)

Domestic2012 Growth: 9.7% Export0.8%

3Nestlé (Malaysia) Berhad 110925-W

Kyle is grateful to

have a hot mug of

warm and delicious

MILO after getting

caught in the rain.

One day, it started to rain so heavily that I came home soaked from head to toe. I saw my mum waiting for me with a towel and hot mug of MILO. It was a sight I’ll never forget. A mother’s love is a blessing which I will always treasure.

Message to Shareholders

In 2012, we reinforced our company wide initiative called ‘We Make Nestlé’, which aims to strengthen our corporate values and ensure full compliance with all external laws, regulations as well as internal standards and guidelines.

2012 has been a milestone year for Nestlé Malaysia for several reasons: we celebrated our 100th year since starting operations in Penang in 1912, and we recorded another year of double digit growth with further profi tability rate improvement. Additionally, our efforts in Creating Shared Value for society have been duly recognised with the NACRA Platinum Award for best CSR reporting, refl ecting the transparency and comprehensiveness of our Creating Shared Value report, which was externally verifi ed with an A+ GRI rating.

Turnover of RM4.6 billion

7.3%higher than the same

period last year

PERFORMANCE OVERVIEW

Despite continuing economic uncertainties globally, the Malaysian economy continued to be resilient and the Group took full benefi t, registering a turnover of RM4.6 billion, 7.3% higher than the same period last year, largely due to the robust growth on the domestic front. The Group’s strong brands and products, as well as marketing investments to generate awareness of the centennial celebrations, resulted in higher sales in all product categories - with Confectionery, Liquid Drinks, Chilled Dairy and Ice Cream, recording strong double-digit growth.

The Group was also active in renovating and innovating its range of existing products, which included the launch of NESCAFÉ 3in1 Brown and Creamy, new MILO mixes variants (MILO Less Sweet, MILO Hi-Fibre, MILO Cereal), the new MAGGI Mi Goreng and two additional NESTUM 3in1 variants with Chinese herbs. The new products were well received by the market and will help us to further drive growth and brand image.

The weaker global economic climate, however, had an impact on the demand from our affi liate customers, with exports recording slower growth after the strong performance in 2011.

Net profi t of

RM505.4 million

with a margin

improvement of 100 bps


FROM RIGHT:

Tan Sri Dato’ Seri Syed

Zainol Anwar Jamalullail

Chairman

Peter Vogt

Managing Director

From an input cost perspective, the prices of major raw materials consumed by the Group were less volatile this year versus 2011, albeit remaining at high levels and continuing to put pressure on our margins. Throughout the year, internal cost savings initiatives under the umbrella of the Nestlé Continuous Excellence programme allowed us to mitigate these cost pressures.

The strong sales volumes combined with improved effi ciencies in our operations helped profi t before tax reach RM637.7 million with an underlying margin improvement of 80 bps. Net profi t stood at RM505.4 million, with a margin improvement of 100 bps.

CORPORATE GOVERNANCE

During the year under review the Board has reviewed and strengthened the various aspects of Corporate Governance. In line with the new Bursa recommendations, we will be introducing poll voting for our upcoming Annual General Meeting. Our company wide initiative called ‘We Make Nestlé’, which was started in 2011, aims to reinforce our corporate values and to ensure full compliance with all external laws, regulations as well as internal standards and guidelines. In each unit, the Compliance champions support line managers in their task. We have also introduced an external confi dential hot-line to facilitate reporting of any non-compliance issue.


Message to Shareholders

Throughout the year, we continued to strengthen the nutritional foundation of our products to promote better nutrition and healthy lifestyles among Malaysians, as well as engage with key stakeholders to address the issue of Non-Communicable Diseases (NCD).

CENTENNIAL CELEBRATIONS

2012 marked our 100th year of business operations in Malaysia and to commemorate this signifi cant milestone we carried out a number of events throughout the year to thank our consumers and the other stakeholders for their support. The main launch event of the Nestlé 100 Years Celebration was held at Dataran Merdeka, Kuala Lumpur on 18 March 2012. The event was graced by HRH Sultan Sharafuddin Idris Shah Ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Alhaj, Sultan of Selangor, who together with Paul Bulcke, CEO Nestlé S.A., Nandu Nandkishore, Executive Vice President of Nestlé S.A., in charge of Zone Asia, Oceania, Africa and Middle East, and members of the Board of Nestlé Malaysia, offi ciated the launch.

Other key activities to celebrate our centennial included the Nestlé 100 Years Exhibition at the National Museum and the Nestlé Nourishing Malaysia Showcase in Penang, as well as numerous promotional activities for our consumers. In addition, we started several CSV initiatives related to nutrition and the environment.

CREATING SHARED VALUE (CSV)

Our business philosophy is based on the concept of CSV, which states that in order to be successful in the long term, we have to create value not only for our shareholders but also for the society in which we operate. Our efforts are focused in three areas where we believe we can contribute the most: Nutrition, Water and Rural Development.

Throughout the year, we continued to strengthen the nutritional foundation of our products to promote better nutrition and healthy lifestyles amongst Malaysians, as well as engage with key stakeholders to address the issue of Non-Communicable Diseases (NCD), in support of the Ministry of Health’s agenda to address the threat.

Under the Nutrition pillar, we recently launched the ‘Program Cara Hidup Sihat’, implemented in collaboration with the Ministry of Education and Universiti Putra Malaysia, aimed at improving knowledge and the practice of healthy lifestyles amongst secondary school students from selected 100 day boarding schools.

We have also continued with our Nestlé Healthy Kids programme, with 189 students who are in the second year of this three-year programme.

In the area of Water, we have successfully planted more than 100,000 trees along the lower Kinabatangan River in Sabah, through the Nestlé Project RiLeaf, a key environmental initiative aimed at creating a landscape where people, nature and agriculture can co-exist harmoniously in their need of water.

Under Rural Development, we initiated the Nestlé Paddy Club to reduce the rice farming environmental footprint and at the same time, increase the farmers’ real income through yield improvement.

In June this year, our traditional Stakeholder Convening Session focused on the battle against NCDs as well as the role and cooperation between the private sector, the government and NGOs. A summary of our CSV initiatives can be found in the accompanying Creating Shared Value 2012 Summary Report.

RECOGNITION AND AWARDS

Our commitment to CSV has been duly recognised and acknowledged by the industry and our peers with the honour of various accolades and awards.

In 2012 we won the Platinum Award for CSR Reporting under the NACRA Awards for our 2011 Creating Shared Value Report, which was externally assured by Bureau Veritas Certifi cation Sdn Bhd with an A+ GRI rating. The award is a testament to our commitment towards transparency and governance, and the high reporting standards we have set for ourselves.


DIVIDENDS

In view of the strong performance in 2012, the Board has recommended a fi nal net dividend of RM1.55 per share, giving a total net dividend proposed and declared for the fi nancial year of RM2.10 per share, which represents a 16.7% increase from the previous year’s dividends.

PROSPECTS FOR 2013

We remain optimistic on the outlook for 2013 as analysts are forecasting GDP growth of about 5% for Malaysia. Furthermore, we believe the government will continue to provide support through development projects and incentives, which will continue to boost consumer disposable income. We also expect commodity prices to stabilise albeit at high levels.

Nevertheless, we need to be vigilant and continuously monitor the global economy and its impact on costs and growth. While domestic growth for the ASEAN region is expected to be bullish, which augurs well for the domestic market and exports to the region, concerns remain on several issues in other parts of the world.

Internally, we will continue to increase effi ciencies through the Nestlé Continuous Excellence programme and capitalise on the continued innovation and renovation of our products. In line with the Government’s goal of creating a healthy

and productive society, we will further promote nutritional diets and healthy lifestyles in addition to our ongoing efforts to deliver healthier and tastier products to consumers.

APPRECIATION

During the year we saw changes on the Board and Management team. Detlef Krost, the Technical and Production Executive Director and a member of the Board since 2009, was promoted to Zone Americas Technical Head for the Nestlé Group. We would like to take this opportunity to thank him for his excellent contribution to the growth and development of the Group during his tenure with us.

Replacing him is Adnan Pawanteh, who took up his position as Executive Director, Technical & Production on 1st June 2012 and was appointed to the Board effective 2nd July 2012. He has returned to Nestlé Malaysia after serving as Technical Director at Nestlé Turkey for two years. We extend him a warm welcome and are confi dent that he will continue to build the expertise and enhance the performance of the Technical Unit.

In closing, the Board would like to thank the Management Team and all staff for their commitment and dedication, without which the continued success of the Group could not have been possible.

Our thanks also go to our partners, distributors and customers for their continued support and loyalty towards our company and our brands. Finally, we want to express a very big thank you to the millions of Malaysian consumers who buy our products every day and who are the reason for the success of our company.

Tan Sri Dato’ Seri Syed Zainol

Anwar Jamalullail

Chairman

Peter Vogt

Managing Director

Total Net dividend of

RM2.10per share up 16.7%

Continued

innovation &

renovation will

stimulate growth for

the coming year.


Growing up, we had a hard life as I had a big family to look after. But my mum made sure that she always packed MAGGI for me when I had to sail for many months out in the ocean as a ship engineer. MAGGI reminds me of home and my family.

Billy enjoys fi shing

with his younger brother,

along with a MAGGI hot cup

packed by their mother.

Business Review

Group turnover of

RM4.6 billion up by 7.3%.

Nestlé Malaysia marked its centennial in Malaysia with another year of solid fi nancial performance, underlined by consecutive good quarterly growth. This was driven by strong domestic sales with several of the product categories recording impressive double-digit growth.

Amid the challenging global economic conditions, the Malaysian economy remained resilient. The rising disposable income and the people friendly assistance such as the BR1M scheme helped consumer sentiments to stay positive and provide a boost in domestic demand.

In conjunction with the 100 years celebration, there was a notable increase in marketing and promotional activities to generate awareness as well as to express the Group’s appreciation to our Malaysian consumers. The market reaction was very positive, which resulted in higher demand for most of Nestlé’s products.

Continuous product innovation and renovation also resulted in the healthy demand for new variants, while promoting nutritional diets and healthy lifestyles in line with the government’s goal of creating a healthy and productive society.

Meanwhile, exports, which accounted for almost 25 per cent of the Group’s turnover, saw slower growth in 2012 as the weak global economic climate affected the demand from some affi liate customers.

Fortunately, strong domestic demand continued to spearhead the growth, compensating the softness in exports. For the year under review the Group turnover grew by 7.3%.

To support the increasing domestic and export based demand for Nestlé’s high quality products, investments were made to enhance effi ciency and boost production levels.

In the 2012 Business Solution Awards by the Nestlé Group, Nestlé Malaysia won 2nd prize for ‘A Perfect Flow with Zero Waste to Deliver What Consumers Value’. It recognised excellent turnaround of the Nestlé Ice Cream Business, which was enabled by GLOBE as well as Nestlé Continuous Excellence tools and methodology. Focusing on delighting their consumers and customers with quality products and services, Nestlé Ice Cream started its Lean Value Stream journey

in 2009 by eliminating non value adding activities and waste from its procurement, production, supply chain, distribution and retail value streams.

In 2012, training on Brand Building the Nestlé Way, a methodology and tools to help marketing teams develop strong and impactful brand campaigns was accelerated. The market conducted more than 100 trainings and workshops to all the marketing and sales teams where many successful campaigns such as MILO ‘Play More, Learn More’, NESCAFÉ ‘Let’s see what develops’ and MAGGI ‘Happiness is Homemade’, were developed. This was refl ected in improved brand health, accelerated sales growth and enhanced brands equity.

Additionally, the Sales Teams focused on ‘Being Brilliant at the Basics’. This involved improving customer and shopper understanding, looking at ways to tap growth in alternate trade channels, strengthening performance with both our Modern and General Trade customers, and improving distribution and in-store execution through initiatives such as GPS coding of all outlets, creation of a retail lab and development of a perfect store concept. The implementation of a new Ullage Policy for Distributors in 2012 resulted in better freshness in the trade, improved stock levels and a reduction of goods to be destructed.

27 Corporate in-house training programmes covered

1,589 people through a total of 94 sessions.

Nestlé ranked

23 in the country among the 100 most popular graduate employers 2012.


Nestlé Malaysia marked its centennial with a solid fi nancial performance driven by strong domestic sales and impressive double-digit growth from several of the product categories. The 100 years celebration saw a notable increase in marketing and promotional activities to generate awareness and to express the Group’s appreciation to Malaysian consumers.

Complementing this, the Supply Chain performance improved in 2012 with service levels to our customers rising signifi cantly. This was achieved while maintaining tight control of our inventories. The physical logistics side also showed signifi cant progress with the Group increasing the utilisation of trucks in West Malaysia and containers moving products to East Malaysia. This lowered the variable distribution expenses and reduced our impact on the environment in terms of kilometer travelled per tonne of product.

The Group also continued with its people programme. A total of 27 Corporate in-house training courses were offered to employees which covered 1,589 people through a total of 94 sessions. The Group further engaged with employees by gathering their views through the ‘Nestlé & I’ employee survey, which saw a strong participation rate of 98%.

From the feedback, areas that required improvement were identifi ed and action plans have been established. One of the agreed action plans from the survey was to introduce a People Management Course for all our line managers. The

course helped 218 line managers to better apply Nestlé’s Management and Leadership Principles to effectively lead their teams to higher levels of performance. After a duration of three to six months, a training checkpoint survey was conducted for all participants to validate the outcomes of behavior change.

Thanks to the increased activities in promoting Nestlé as the Employer of Choice in universities, the Group also made good progress in improving its employer image in Malaysia. It ranked 23rd in the country among the 100 most popular graduate employers in 2012. Nestlé participated in 18 career fairs in various universities across Malaysia, and engaged with campus communities and undergraduates who were given a clear insight of the company, as well as the vast career and development opportunities within it. Additionally, as a result of greater brand visibility in key publications specially targeted at graduates, the Group managed to recruit best-fi t young talents for its core programmes such as the ‘Internship for Undergraduates’ and ‘Management Trainee for Fresh Graduates’.


COFFEE & BEVERAGESMILO

It has been an exciting year for MILO, which started off with the launch of a nutrition campaign, aimed at educating mothers on the benefi ts of MILO. Key highlights of the campaign include the 10,000 pledges from mothers supporting this campaign and 10,000 breakfast giveaways by MILO to selected rural schools. The campaign was well received by parents and gain strong presence in the media.

MILO continues to advocate learning life values via sports through the MILO ‘Play More, Learn More Campaign’. A total of 12 camps - reaching out to more than 45,000 children – were carried out nationwide, with the support from the communities through the respective local resident associations.

MILO Malaysia also introduced a new range of MILO mixes range – MILO Cereal (packed with cereal fl akes), MILO Hi-Fibre (with a dietary fi bre to help maintain the digestive system) and MILO Less Sweet (with all the goodness of MILO and 47% less sucrose compared to other chocolate malt mixes) - which provide added benefi ts catering to young working adults who are health conscious and looking for healthy options in their daily diet.

To provide consumers with even more value, MILO Sejuk was introduced in a value pack of 25 sticks.

NESCAFÉ

2012 is a year of innovation and continuous stimulation for NESCAFÉ with the start of a new communication campaign and launches of new products for the coffee shop specialty segment.

The NESCAFÉ mixes portfolio was expanded with the introduction of new NESCAFÉ Brown & Creamy, with brown sugar which gives it a creamy and caramel-like taste that appeals to young adults who are new to coffee.

Strengthening the growing white coffee segment was the launch of NESCAFÉ Ipoh White Coffee Hazelnut and NESCAFÉ Ipoh White Coffee Brown Sugar, along with the relaunch of an improved NESCAFÉ Ipoh White Coffee Original.

MILO has always been a strong supporter of sports and in 2012, through MILO ‘Play More, Learn More Campaign’, it encouraged the sports culture, reaching out to more than 45,000 children nationwide.


The Liquid Drinks business achieved strong topline growth, higher profi tability and gained signifi cant market shares in 2012. This was attributed to product renovation with the relaunch of MILO UHT and the launch of new NESCAFÉ UHT to recruit more young consumers.

With an improved recipe, MILO UHT is now tastier, creamier and more chocolaty to delight 7-12 year old children. Meanwhile NESCAFÉ UHT in 200ml packs aims to delight new coffee drinkers who prefer the comforting goodness of milk with a light touch of coffee and has gained signifi cant market shares from the competition.

In the digital social sphere, youths were engaged to discover the extraordinary in them through the new NESCAFÉ on the Life Campaign, while the MILO Cans Next Games Campaign engaged and tapped their creativity by inviting them to redefi ne the future of sports.

Meanwhile, MILO UHT for the third year, continued to raise the awareness on the importance of paper carton recycling amongst Malaysians by collaborating with Tetra Pak, schools, retailers, charity organisations and other stakeholders.

2012 is a year of innovation and continuous stimulation for NESCAFÉ with the start of a new communication campaign and launches of new products for the coffee shop specialty segment.

NESTLÉ LIQUID DRINKS

NESCAFÉ Dolce Gusto meanwhile launched its new machines – Genio and Circolo Automatic – while doubling the range of café-style beverages with Grande Intenso, an indulgent Chococino, refreshing Cappuccino Ice as well as the exotic, spicy Chai Tea Latte. The machines, beverages and accessories can now all be bought from Nestlé Malaysia’s fi rst online shop at www.dolce-gusto.com.my.

The Liquid Drinks business achieved strong growth and higher profi tability, with the relaunch of MILO UHT and the launch of new NESCAFÉ UHT to recruit more young consumers.


The Food Business continued to sustain strong growth driven by its core categories within noodles, stocks, seasoning and sauces, supported by investments in consumer engagements and renovations.

The Me and My Maggi Campaign promoted tasty and balanced preparation of MAGGI noodles with fresh eggs, meat and vegetables, which was supported by the launch of a new packaging with noodle recipe suggestions. Consumers were also encouraged to share their unique recipes through a digital campaign.

Another highlight of the noodles campaign was the successful introduction of MAGGI Mi Goreng Kari Ori - a delightful fusion of MAGGI’s well-loved curry fl avour into a convenient dry noodle format – while the MAGGI Mi Goreng range was launched in a cup format. These initiatives resulted in increased consumer loyalty for MAGGI, which enabled the brand to maintain market leadership.

FOOD BUSINESS

The Food Business continued to sustain strong growth supported by its core categories supported by investments in consumer engagements and renovations.

MAGGI’s big idea - Happiness is Homemade - was further strengthened via continuous communication behind key culinary solution categories such as MAGGI Cukup Rasa all-in-one seasoning, bouillon stocks, Chili Sauce and Oyster Sauce. MAGGI Cukuprasa registered double-digit growth and increased market share as penetration increased with the launch of the 1 Ringgit Pack. Media communications, sampling and cooking events were also intensifi ed promoting the goodness of home cooking among women, as well as the youth.


Nestlé Professional acknowledged and thanked coffee-shop operators by hosting ‘A Tribute to Malaysian coffee-shop, the Nation’s heritage’ ceremony. The coffee-shop operators unyielding support towards NESCAFÉ and MILO has made both beverages staples in Malaysia. Nestlé Professional also advocates healthier lifestyle and healthier choice through the ‘MILO Kosong Campaign’.

NESTLÉ PROFESSIONAL

CHILLED DAIRY

In the Food business, the new MAGGI® Abalone Sauce launch was well received by Chinese restaurant operators in Malaysia. NESTUM was also launched in coffee-shops, to grow the out-of-home consumption for this nutritious drink, as well as for restaurants, as a key ingredient in their menu creations.

Nestlé continues to be the best in the yogurt category due to its effective communications and engagements with the consumers.

The communication for the Nestlé BLISS ‘Looking Good From Within Campaign’, which focused on the product’s superior taste and product benefi ts, was effective in gaining new customers. Nestlé Natural Set yogurt generated higher brand awareness and usage through cooking demonstrations in store and recipe suggestions.

Chilled Dairy delivered another year of accelerated growth with a double-digit rise in both yogurt and yogurt drinks. Impactful brand communications and shopper engagement successfully led category growth and reinforced Nestlé’s number one position in the yogurt category.

The 5th Nestlé Golden Chef Hat Award helps uplift the culinary standards amongst young professionals as evident from the past winners of the competition who have become great names in the industry.


CONFECTIONERY

ICE CREAM

Domestic and direct export businesses brought about strong double-digit growth in 2012 for Confectionery.

Confectionery maintained strong double-digit growth in 2012 driven by both the domestic business and direct exports. KIT KAT strengthened market leadership in the count lines segment and continues to be the main growth driver.

KIT KAT remains successful with its digital communication programs and in-store activities while NESTLÉ Wafer, which is targeted at the mass market, stays driven by strong marketing support and distribution extension.

First-in-the-market breakthrough innovations continued to delight consumers by creating excitement for the overall Ice Cream category.

The year under review was a great year for the Ice Cream segment – driven by breakthrough innovations – which expanded the share of the Impulse segment.

Key highlights of the year included the successful launch of MAT KOOL Spiro and DRUMSTICK Rockin’ Hazelnut. These breakthrough innovations were the fi rst in the market and delivered our commitment to delight our consumers by creating excitement for the overall Ice Cream category.


The encouraging growth of NESTLÉ OMEGA PLUS continued through collaborations with retail partners to drive higher heart health awareness. A more convenient way to manage cholesterol level was also introduced with the launch of NESTLÉ OMEGA PLUS One.

NESTLÉ OMEGA PLUS continue to grow through collaborations with retail partners and the introduction of a more convenient way to manage cholesterol with NESTLÉ OMEGA PLUS ONE.

MILKS & CEREALS

INFANT NUTRITIONIn conjunction with the Nestlé centennial celebration, the NESTLÉ Start Well Stay Well Educational Programme was undertaken to educate Malaysian healthcare professionals and consumers on the importance of nutrition in the fi rst 1,500 days of life.

A symposium on breastfeeding was also organised by the Nestlé Nutrition Institute to share knowledge and exchange best practices amongst healthcare professionals in evolving and encouraging breastfeeding.

The NESTLÉ Start Well Stay Well Educational Programme educated Malaysian healthcare professionals and consumers on the importance of nutrition in the fi rst 1,500 days of a life.

The Hot Cereals portfolio was reorganised under the NESTUM brand (for both All Family Cereals and 3in1 mixes) and the label was relaunched with a more contemporary design. A new value-added 3in1 range now offers the balanced goodness of NESTUM cereals and the renowned goodness of Traditional Asian Medicine (TAM) – NESTUM 3in1 with American Ginseng and Dang Gui – in collaboration with Eu Yan Sang, which is recognised for its TAM expertise.

Strong double-digit growth was achieved leveraging the Diabetes and Critical Care product platforms. NUTREN untuk Diabetik is the biggest contributor to the business while PEPTAMEN is the fi rst choice nutritional formula for Intensive Care Unit patients.

HealthCare Nutrition will continue to pioneer science-based nutritional solutions to deliver improved personalised health care for people with medical conditions.

HEALTHCARE NUTRITION


The company of

good friends is made

even better with NESCAFÉ.

What I remember most whilst growing up at my hometown was listening to the radio every Sunday morning for the Pujaan 10 NESCAFÉ singing contest. Today my best friends and I reminisce those moments when we get together.

What Creating Shared Value Means to Us

Creating Shared Value (CSV) is our approach to Corporate Social Responsibility, built on the premise that for our business to be successful in the long run, it must consider the needs of two primary stakeholders at the same time: the communities in the countries where we operate and our shareholders. The Nestlé journey started when the Company was founded on the principle of social responsibility, after our founder Henri Nestlé developed a product for an infant who could not feed on the mother’s breast milk.

Today, the same values remain a fundamental part of our way of doing business, focusing on specifi c areas of the Company’s core business activities. This approach goes beyond compliance and sustainability. Through CSV, we aim to improve the lives of the societies and communities we touch, as our progress is dependent on their success.

Nestlé integrated the Search Engine Optimisation (SEO) process to drive more traffi c to the Nestlé Healthy Kids website and this has lead to the increase in

number of page views –

182,896

The Nestlé Creating Shared Value Model

CREATING

SHARED VALUE

Nutrition, Water,

Rural Development

SUSTAINABILITY

Environmental Stewardship: Acting today

in a way that protects the earth for the future

COMPLIANCE

Laws, Business Principles, Code of Management Conduct

Creating Shared Value is the foundation to our culture and values, as well as a motivating principle for our employees. Its relevance to our corporate initiatives, products and brands urges us to embed this strategy further across our value chain and throughout our business operations.


CSV is the pillar to our culture, values and a motivating principle for our employees. Its relevance to our corporate initiatives, products and brands urges us to embed this strategy further across our value chain and throughout our business operations.

OUR THREE FOCUS AREAS IN CSV

We continue to focus on the three areas of greatest potential for joint value optimisation with the society as outlined in our Annual Report last year, which are Nutrition, Water and Rural Development. These areas, besides being key societal challenges, are also the core to our global business strategy and operations, the basis of our competitive advantage as well as fundamental to our overall business goal – “To become the recognised leader in Food, Nutrition, Health and Wellness, trusted by all stakeholders.”

Nutrition: because food and nutrition are the basis of health, our raison d’être, our expertise and is core to our business.

Water: because the ongoing quality and availability of water is critical to life, to the production of food and to our operations. The deterioration of water quality and availability threatens the very fabric of life and is one of the key environmental issues today.

Rural Development: because the overall wellbeing of the farmers, rural communities, workers, small entrepreneurs and suppliers are essential to the sustainability of our business.

By fi rmly incorporating CSV into our business, we are able to venture into results-oriented initiatives that will create long-term benefi ts to the society.

We are looking at creating a thriving and sustainable society, from addressing health-related issues including under-nutrition, over-nutrition and malnutrition, sedentary or inactive lifestyles, aging populations and elevating health costs; to agriculture and rural poverty; water, energy and climate change.

For further information on our CSV initiatives, please refer to our Creating Shared Value Report 2012, which can be downloaded from our corporate website: www.nestle.com.my. More information on CSV can also be obtained from:

• www.nestle.com

• www.creatingsharedvalue.org

• www.community.nestle.com

Nestlé Paddy Club (NPC) has

289 farmers cultivating over 784 hectares, with a an average yield of 6.8 metric tonne per hectare.

In 2012, Nestlé Malaysia successfully planted more than

100,000 trees along the Lower Kinabatangan River in Sabah,

as part of the Nestlé Project RiLeaf.


Back when I was in college, a guy had left me a KIT KAT and inside it was a note that read “I hope our friendship will turn out to be as sweet and that it will last forever…”

Shahira happily reads the note tucked

in the Kit Kat left by an admirer.

BOARD OF DIRECTORS

Tan Sri Dato’ Seri Syed Zainol Anwar JamalullailIndependent, Non-Executive DirectorChairman of the Board of DirectorsChairman of the Audit CommitteeChairman of the Nomination Committee

Dato’ Mohd. Rafi k Bin Shah MohamadIndependent, Non-Executive DirectorMember of the Audit CommitteeChairman of the Compensation Committee

Tan Sri Datuk [Dr.] Rafi ah Binti SalimIndependent, Non-Executive DirectorMember of the Audit CommitteeMember of the Compensation Committee

Tan Sri Datuk Yong Poh KonIndependent, Non-Executive DirectorMember of the Nomination Committee

Dato’ Frits van DijkNon-Independent, Non-Executive DirectorMember of the Nomination CommitteeMember of the Compensation Committee

Peter VogtManaging DirectorAlternate Director to Marc Seiler[Resigned on 21 February 2013]

Alois HofbauerManaging DirectorAlternate Director to Marc Seiler[Appointed on 22 February 2013]

Marc SeilerExecutive DirectorAlternate Director to Peter Vogt[until 21 February 2013]Alternate Director to Alois Hofbauer[from 22 February 2013]

Detlef KrostAlternate Director to Dato’ Frits van Dijk[until 29 June 2012]

Adnan PawantehAlternate Director to Dato’ Frits van Dijk[Appointed on 30 June 2012]

AUDIT COMMITTEE

Tan Sri Dato’ Seri Syed Zainol Anwar JamalullailChairman

Dato’ Mohd. Rafi k Bin Shah MohamadMember

Tan Sri Datuk [Dr.] Rafi ah Binti SalimMember

NOMINATION COMMITTEE

Tan Sri Dato’ Seri Syed Zainol Anwar JamalullailChairman

Tan Sri Datuk Yong Poh KonMember

Dato’ Frits van DijkMember

COMPENSATION COMMITTEE

Dato’ Mohd. Rafi k Bin Shah MohamadChairman

Tan Sri Datuk [Dr.] Rafi ah Binti SalimMember

Dato’ Frits van DijkMember

COMPANY SECRETARY

Mohd. Shah Bin Hashim [LS 0006824]

Tel : +603 7965 6000Fax : +603 7962 7213E-mail : [email protected]

REGISTERED OFFICE

22-1, 22nd Floor, Menara SurianNo.1, Jalan PJU 7/3Mutiara Damansara47810 Petaling JayaSelangor Darul Ehsan

COMPANY WEBSITE

www.nestle.com.my

SHARE REGISTRAR

Tricor Investor Services Sdn. Bhd. [118401-V]

Level 17, The Gardens North TowerMid Valley City, Lingkaran Syed Putra59200 Kuala LumpurTel : +603 2264 3883Fax : +603 2282 1886

AUDITORS

KPMG [Firm No. AF 0758]

Chartered AccountantsLevel 10, KPMG Tower8, First Avenue, Bandar Utama 47800 Petaling Jaya Selangor Darul EhsanTel : +603 7721 3388Fax : +603 7721 3399

PRINCIPAL BANKERS

HSBC Bank Malaysia Berhad [127776-K]

STOCK EXCHANGE LISTING

Main MarketBursa Malaysia Securities Berhad[635998-W]

Corporate Information

[Note to Shareholders: The Corporate Governance Statement, the Statement on Risk Management and Internal Control, the Audit Committee Report and the Terms of Reference of the Audit Committee are contained in a separete booklet in this Annual Report, under the title “Corporate Governance and Financial Report 2012”.]


Board of Directors

TOP: Tan Sri Dato’ Seri Syed Zainol Anwar Jamalullail • Peter Vogt • Alois Hofbauer•

CENTRE: Tan Sri Datuk Yong Poh Kon • Tan Sri Datuk [Dr.] Rafi ah Binti Salim • Dato’ Frits van Dijk•

BOTTOM: Dato’ Mohd. Rafi k Bin Shah Mohamad • Marc Seiler • Adnan Pawanteh


Profi le of Directors

Tan Sri Dato’ Seri Syed Zainol Anwar Jamalullail

Independent, Non-Executive DirectorChairman of the Board of DirectorsChairman of the Audit CommitteeChairman of the Nomination CommitteeMalaysian Citizen, age 61 years

Tan Sri Dato’ Seri Syed Zainol Anwar Jamalullail was appointed as a Non-Independent, Non-Executive Director on 25 February 2002, representing Lembaga Tabung Haji. Subsequently, when Lembaga Tabung Haji ceased to be a substantial shareholder, he was re-classifi ed as an Independent, Non-Executive Director on 5 November 2004, and was later appointed as Chairman of the Board of Directors on 16 April 2009. Tan Sri is also the Chairman of Cahya Mata Sarawak Berhad, Lembaga Zakat Selangor and Pulau Indah Ventures Sdn. Bhd. He is also the Chancellor of SEGi University.

He does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Tan Sri Dato’ Seri Syed Zainol Anwar Jamalullail has attended all 4 [four] meetings of the Board of Directors in the fi nancial year ended 31 December 2012.

Dato’ Mohd. Rafik Bin Shah Mohamad

Independent, Non-Executive DirectorMember of the Audit CommitteeChairman of the Compensation CommitteeMalaysian Citizen, age 62 years

Dato’ Mohd. Rafi k Bin Shah Mohamad was appointed as a director of the Company on 1 June 2007. He is also a member of the Audit Committee and the Chairman of the Compensation Committee. In addition, he is a Chairman of Malaysian AgriFood Corp. Berhad, Cold Chain Network Sdn. Bhd. [a subsidiary of Malaysian AgriFood Corp. Berhad] and the Chairman of Biotropics Malaysia Berhad. Biotropics Malaysia Berhad wholly owns Phytes Biotek Sdn. Bhd., which is one of the current suppliers of raw materials to a subsidiary of the Company. Be that as it may, Phytes Biotek Sdn. Bhd. carries on business with the subsidiary of the Company on the same terms as other suppliers.

He does not own any shares in Nestlé [Malaysia] Berhad, and has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Dato’ Mohd. Rafi k Bin Shah Mohamad has attended all 4 [four] meetings of the Board of Directors in the fi nancial year ended 31 December 2012.


Tan Sri Datuk [Dr.] Rafi ah Binti Salim was appointed as a director of the Company on 17 April 2009. She is also a member of the Audit Committee and the Compensation Committee. In addition, she is a Director of Perbadanan Usahawan Nasional Berhad, Director of the NAM Institute for the Empowerment of Women Malaysia, and Chairperson for Malaysian Genomics Resource Centre Berhad. Tan Sri Datuk [Dr.] Rafi ah is also a Director of Allianz Malaysia Bhd., Allianz Life Insurance Malaysia Bhd., and Allianz General Insurance Company [Malaysia] Bhd.

She does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Tan Sri Datuk [Dr.] Rafi ah Binti Salim has attended all 4 [four] meetings of the Board of Directors in the fi nancial year ended 31 December 2012.

Tan Sri Datuk [Dr.] Rafiah Binti Salim

Independent, Non-Executive DirectorMember of the Audit CommitteeMember of the Compensation CommitteeMalaysian Citizen, age 66 years

Dato’ Frits van Dijk

Non-Independent, Non-Executive DirectorMember of the Nomination CommitteeMember of Compensation CommitteeDutch National, age 65 years

Dato’ Frits van Dijk was appointed as a director of the Company on 26 April 2006. He is also a member of the Nomination Committee and the Compensation Committee. He has served the Nestlé group of companies and held many senior positions in other Nestlé Markets over the last 40 years prior to his retirement from the Nestlé Group at the end of September 2011.

He holds 8,000 ordinary shares in Nestlé [Malaysia] Berhad. He has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Dato’ Frits van Dijk has attended 2 [two] out of the 4 [four] meetings of the Board of Directors in the fi nancial year ended 31 December 2012.


Tan Sri Datuk Yong Poh Kon

Independent, Non-Executive DirectorMember of the Nomination CommitteeMalaysian Citizen, age 67 years

Tan Sri Datuk Yong Poh Kon was appointed as a director of the Company on 25 April 2011. He is also a member of the Nomination Committee. He is currently the Managing Director of Royal Selangor International Sdn. Bhd., manufacturer and exporter of pewter products, and is a Fellow of the Academy of Sciences and the Malaysian Institute of Management.

He does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Tan Sri Datuk Yong Poh Kon has attended all 4 [four] meetings of the Board of Directors held since his appointment in the fi nancial year ended 31 December 2012.

Peter Vogt

Managing Director[Resigned on 21 February 2013] Swiss National, age 58 years

Peter Vogt, the Managing Director of the Company, was appointed as a director of the Company on 16 September 2009. He has served the Nestlé group of companies worldwide for over 30 years. He has held various senior positions in other Nestlé Markets, prior to his current appointment in Malaysia.

He does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Peter Vogt has attended all 4 [four] meetings of the Board of Directors for the fi nancial year ended 31 December 2012.

Profi le of Directors


Alois Hofbauer succeeded Peter Vogt as the Managing Director of the Company and was appointed as a Director of the Company on 22 February 2013. He has served the Nestlé group of companies worldwide for more than 20 years and held various senior positions in other Nestlé Markets, prior to his current appointment in Malaysia.

He does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any.

Alois Hofbauer

Managing Director[Appointed on 22 February 2013]Austrian National, age 47 years

Marc Seiler

Executive Director[Responsible for Finance & Control]French National, age 48 years

Marc Seiler, the Executive Director, Finance & Control of the Company, was appointed as a director of the Company on 1 December 2008. He joined the Nestlé group of companies in 1990 and held various senior positions in other Nestlé Markets. Currently, he is also Treasurer of the Swiss Malaysian Business Association.

He does not own any shares in Nestlé [Malaysia] Berhad, has no confl ict of interest with the Group, does not have any personal interest in any business arrangement involving the Group, has no family relationship with any other director and/or major shareholder of the Group and has not been convicted of any offence within the past 10 years other than traffi c offences, if any. Marc Seiler has attended all 4 [four] meetings of the Board of Directors for the fi nancial year ended 31 December 2012.


Management Team


FRONT ROW, FROM LEFT:

Peter Vogt • Marc Seiler • Alois Hofbauer • Yap Yin Kee

BACK ROW, FROM LEFT:

Adnan Pawanteh • Victor Seah • Detlef Krost • Zainun Nur Abdul Rauf • Mohamad Abu Bakar • Donald Howat • Chew Soi Ping • Ho Hau Chieh • Patrick Hartless


PETER VOGTManaging Director [Transferred to Nestlé S.A. effective 21 February 2013]

Peter Vogt, a Swiss national, has been the Managing Director of Nestlé [Malaysia] Berhad and Regional Head of Nestlé Malaysia/Singapore since 2009. A graduate in Accounting & Finance of Switzerland’s University St. Gallen, Peter Vogt has over 30 years of management experience with Nestlé worldwide. He was Head of the Sales and Marketing Division of Nestlé Malaysia from 1990 to 1994. From 1996 to 2005, he headed various European Nestlé operations in Switzerland, Scandinavia and Germany before returning to Asia as CEO of Nestlé Indonesia from 2005 to 2009. He was the President of the Malaysian International Chamber of Commerce and Industry [“MICCI”], a member of the Swiss Malaysian Business Association and sat on the Federation of Malaysian Manufacturers [“FMM”] Council. On 21 February 2013, he left Nestlé Malaysia for Nestlé S.A., to assume the position of Deputy Executive Vice President, Head of Human Resources of the Group and Centre Administration.

ALOIS HOFBAUERManaging Director [Appointed on 1 February 2013]

Alois Hofbauer, an Austrian national, succeeded Peter Vogt as the Managing Director of Nestlé [Malaysia] Berhad and Regional Head of Nestlé Malaysia/Singapore effective 1 February 2013. He was appointed as a member of the Board of Directors on 22 February 2013.A graduate of the Swiss Business School IMD and the University of Innsbruck, Austria, Alois Hofbauer’s career with Nestlé began over 20 years ago when he joined Nestlé Austria as a Sales and Marketing Trainee. Hofbauer has an immensely strong leadership track record in country management and a deep

understanding of business in Asia. In the last 20 years he has held various Senior Management positions in the region before becoming the Managing Director of Nestlé Taiwan in 2004 and subsequently the Managing Director of Nestlé Sri Lanka in 2010.

MARC SEILERExecutive Director, Finance & Control

Marc Seiler, a French national, is the Executive Director, Finance & Control of the Company. He was appointed as a director of the Company on 1 December 2008. Marc Seiler graduated from Ecole Superieure de Commerce de Paris, France with a Masters of Science in Management and an Accounting & Finance Diploma [Diplome d’Etudes Superieure Comptables et Financieres]. Prior to joining Nestlé, Marc Seiler was an external auditor with Coopers and Lybrand. He joined Nestlé group of companies in 1990 in the Finance division of Nestlé Waters in Paris. Thereafter, he was transferred to Nestlé Waters, North America where he held several senior positions in the United States and Canada prior joining the Company. Marc Seiler is currently the Treasurer of the Swiss Malaysian Business Association.

ZAINUN NUR ABDUL RAUFExecutive Director, Human Resource& Group Corporate Affairs [until 31 December 2012)

Zainun Nur has been the Executive Director, Human Resource and Group Corporate Affairs of the Company since 1 June 2010. She joined the Company in 1998 as Group Brand Manager for Nestlé Breakfast Cereals. Thereafter, she moved to the Food Services business unit [now known as Nestlé Professional], followed by a stint in Consumer Services Division. In 2005, she moved back to Nestlé Professional as Country Business

Manager for Malaysia and Singapore managing the out-of-home food and beverage market. Zainun Nur holds a Masters in Business Administration from the Institute of Marketing, United Kingdom. As of 1 January 2013, she assumed the position of Executive Director of Group Corporate Affairs.

MOHAMAD ABU BAKARExecutive Director of Human Resource [From 1 January 2013]

Mohamad Abu Bakar is the Executive Director of Human Resource of the Company from 1 January 2013. Mohamad has over 30 years of experience in Human Resource related functions and services. He previously held the position of Human Resource Director for Diethelm Holding [Malaysia] Bhd. and Pfi zer ([Malaysia] Sdn. Bhd./Pfi zer Private Limited [Singapore], and Senior Management positions at other multinationals and fi nancial institutions, where he successfully implemented a start-up and several HR and organizational change management initiatives. Mohamad was awarded the inaugural National Human Resource Manager Excellence Award in 2000.

CHEW SOI PINGExecutive Director, NCE Market Champion

Chew Soi Ping is the Executive Director of the NCE Market Champion for Malaysia/Singapore. Prior to this, he was the Executive Director of the Ice Cream Business Unit. He joined the Company in 1988 and from 1996 to 1998 was posted on an expatriation to Switzerland as the Zone Asia, Oceania, Africa and Middle East Regional Assistant. Chew Soi Ping holds a Masters in Business Administration from University of Central Arkansas, USA and Bachelor of Science in Marketing [Honours] from University of Ozarks, Arkansas, USA.

Profi le of Management Team


PATRICK HARTLESSExecutive Director, Supply Chain

Patrick Hartless has been with Nestlé for seven years and is currently the Executive Director for Supply Chain. Prior to arriving in Malaysia, Patrick Hartless was with Nestlé UK where he was Head of Supply Chain for the Food & Beverage Division. Patrick Hartless holds a Bachelor in Engineering from Loughborough University, United Kingdom as well as a Masters in Science from Cranfi eld University, United Kingdom.

YAP YIN KEEExecutive Director, Nestlé Professional

Yap Yin Kee has been the Executive Director of Nestlé Professional, Malaysia and Singapore since 2010. He joined the Company in 1994, in the Nestlé Professional Business Unit. In 2002 he was appointed as the Vending Manager and thereafter became the Beverage Business Manager in 2008. Yap Yin Kee has also been involved in various overseas assignments for Nestlé Professional in Taiwan, France and Oceania [Australia & New Zealand]. Yap Yin Kee graduated with a Bachelors of Business Administration [First Class Honours] degree from Universiti Kebangsaan Malaysia.

DETLEF KROSTExecutive Director, Technical & Production (until 31 May 2012)

Detlef Krost was the Executive Director, Technical & Production from 2009 and was also appointed to the Company’s Board on the same year. A Food Technologist with an Engineering degree, he started his career with Nestlé Germany in 1984 and in 1992 joined the Nestlé Productivity Team in Switzerland. In 1996 he became the Factory Manager in Germany and later

became the GLOBE Business Excellence Manager for Technical, Production and R&D in Switzerland. He was appointed as the Technical Manager for Nestlé Waters in Europe in 2003, and in 2007 became the Technical Manager of the Chocolate, Confectionery & Biscuit Strategic Business Unit. In June 2012, Detlef Krost left Nestlé Malaysia for Nestec Ltd, Switzerlandassuming the position of Zone AMS Technical Manager.

ADNAN PAWANTEHExecutive Director, Technical & Production (from 1 June 2012)

Adnan Pawanteh was appointed theExecutive Director, Technical & Productionon 1 June 2012 to succeed Detlef Krost. As an Engineering degree holder with an MBA in Management, he began as a Trainee Engineer in Nestlé Malaysia in 1984 and over the subsequent17 years, held various positions in theTechnical area. He was posted to NestléAustralia in 2001 where he assumed thepost of Assistant Factory Manager beforereturning to Malaysia in 2002 as theFactory Manager of the Nestlé Shah AlamComplex. In 2010, Adnan was transferredto Nestlé Turkey as Technical Director, a position he held until the end of May 2012.

VICTOR SEAHExecutive Director, Sales

Victor Seah is the Executive Director, Sales since 2008 and has been with the Company for 6 years. Prior to joining the Company, he has had more than 10 years of experience in FMCG, Retail and Consultancy Services in the USA and the Asia Pacifi c region. Victor Seah spent one year in Singapore as the Country Business Manager for Food Services business [now known as Nestlé Professional]. Victor Seah holds a First Class Honours degree in Finance from the Southern Illinois University, USA.

DONALD HOWATExecutive Director, Coffee & Beverages

Donald Howat, a British National, is the Executive Director of the Coffee & Beverages Business Unit. A graduate of Business from Manchester Metropolitan University, Donald Howat has been with Nestlé for over 20 years. From 2001 to 2004 he was the Commercial Director in the Coffee & Beverage Strategic Business Unit working with the developing markets in Asia, Eastern Europe and Latin America. From 2005 to 2007 he was responsible for the Coffee & Beverage Business in Russia.

HO HAU CHIEHExecutive Director, Milks

Ho Hau Chieh has been the Executive Director for Milks Business Unit since 2009. He joined the Company in 1999 as Brand Manager for Confectionery and thereafter was promoted to become Sales Operation Manager, Confectionery in 2001. In 2003, he was transferred to the Milks Business Unit as the Group Brand Manager. In 2005 he became the Business Manager of Nestlé Liquid Drinks. Ho Hau Chieh graduated from the University of Malaya with a Bachelor of Economics majoring in Business Administration.


Notice of Annual General Meeting

AGENDA

As Ordinary Business

1. To receive the statutory fi nancial statements for the fi nancial year ended 31 December 2012 and the directors’ and auditors’ reports thereon. Resolution 1

2. To approve the payment of a fi nal dividend of 155 sen per share, under a single-tier system, in respect of the fi nancial year ended 31 December 2012. Resolution 2

3. To approve the payment of directors’ fees for the fi nancial year ended 31 December 2012. Resolution 3

4. To re-elect the following directors retiring in accordance with the Company’s Articles of Association:

4.1 Under Article 90.1

[i] Dato’ Mohd. Rafi k Bin Shah Mohamad Resolution 4

[ii] Tan Sri Datuk [Dr.] Rafi ah Binti Salim Resolution 5

4.2 Under Article 97

Alois Hofbauer Resolution 6

NOTICE IS HEREBY GIVEN THAT the 29th [Twenty-Ninth]

Annual General Meeting of the Company will be held at

the Clarke Ballroom, Le Méridien Kuala Lumpur,

2, Jalan Stesen Sentral, Kuala Lumpur Sentral,

50470 Kuala Lumpur on Thursday, 2 May 2013 at 10.00 a.m.

for the transaction of the following business:

5. To re-appoint Messrs KPMG [Firm No. AF 0758] as auditors of the Company and to authorise the directors to fi x their remuneration. Resolution 7

As Special Business

To consider and if thought fi t, to pass the following as Ordinary Resolutions:

6. Proposed Renewal of Shareholders’

Mandate for Recurrent Related

Party Transactions of a Revenue

or Trading Nature as set out under

Section 2.3A[a] of the Circular to

Shareholders dated 9 April 2013.

“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[a] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations

and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.

That the authority conferred by such mandate shall commence upon the passing of this resolution and continue to be in force until:-

[i] the conclusion of the next Annual General Meeting [“AGM”] of the Company following the forthcoming AGM at which such mandate is approved, at which time it will lapse, unless by a resolution passed at the next AGM, the mandate is renewed;

[ii] the expiration of the period within which the next AGM of the Company after the forthcoming AGM is required to be held pursuant to Section 143[1] of the Companies Act 1965 [but must not extend to such extension as may be allowed pursuant to Section 143[2] of the Companies Act 1965]; or

[iii] revoked or varied by resolution passed by the shareholders in a general meeting;

whichever is earlier;


That the directors be and are hereby authorised to complete and do all such acts and things [including executing such documents as may be required] to give effect to the transactions contemplated and/or authorised by this resolution.” Resolution 8





Section 2.3A[b] of the Circular to


“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[b] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.


[i] the conclusion of the next AGM of the Company following the forthcoming AGM at which such mandate is approved, at which time it will lapse, unless by a resolution passed at the next AGM, the mandate is renewed;









Section 2.3A[c] of the Circular to


“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[c] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.






whichever is earlier; That the directors be and are hereby

authorised to complete and do all such acts and things [including executing such documents as may be required] to give effect to the transactions contemplated and/or authorised by this resolution.” Resolution 10





Section 2.3A[d] of the Circular to


“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[d] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.













Section 2.3A[e] of the Circular to


“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[e] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.











Section 2.3A[f] of the Circular to


“That the mandate granted by the shareholders of the Company on 26 April 2012 pursuant to paragraph 10.09 of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad, authorising the Company and/or its subsidiaries to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[f] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders, be and is hereby renewed.




[ii] the expiration of the period within which the next AGM of the Company after the forthcoming AGM is required to be held pursuant to Section 143[1] of the Companies Act 1965 [but must not extend to such extension as may be allowed pursuant to Section 143[2] of the Companies Act 1965); or





12. Proposed New Shareholders’




Section 2.3A[g] of the Circular to


“That the Company and/or its subsidiaries shall be mandated to enter into the recurrent related party transactions of a revenue or trading nature as set out in Section 2.3A[g] of the Circular to Shareholders dated 9 April 2013 with the related parties mentioned therein which are necessary, for the Company and/or its subsidiaries’ day-to-day operations and which are carried out in the ordinary course of business on terms which are not more favourable to the related parties than those generally available to the public and are not to the detriment of minority shareholders.








13. Proposed Amendments to the Company’s Articles of Association

“THAT the following alterations, modifi cations, additions or deletions to the Company’s Articles of Association be and are hereby approved:-

No. Existing Articles No. Proposed Articles

54 All general meetings shall be held at such time, day and place as the Directors shall determine. Every notice of an annual general meeting shall specify the meeting as such and every meeting convened for passing a special resolution shall state the intention to propose such resolution as a special resolution.

54 All general meetings shall be held at such time, day and place as the Directors shall determine. Every notice of an annual general meeting shall specify the meeting as such and every meeting convened for passing a special resolution shall state the intention to propose such resolution as a special resolution. Such meeting of its members

may be held within Malaysia

at more than one venue using

any technology that allows all

members a reasonable opportunity

to participate.

72 If a poll is duly demanded it shall be taken in such manner as the Chairman may direct [including the use of a ballot or voting papers or tickets] and the result of the poll shall be the resolution of the meeting at which the poll was demanded. The Chairman may [and if so directed by the meeting shall] appoint scrutineers for the purposes of the poll, and may adjourn the meeting to some place and time fi xed by him for the purpose of declaring the results of the poll.

72 If a poll is duly demanded it shall be taken in such manner as the Chairman may direct [including the use of a ballot or voting papers or tickets or electronically using various

forms of electronic voting devices] and the result of the poll shall be the resolution of the meeting at which the poll was demanded. The Chairman may [and if so directed by the meeting shall] appoint scrutineers to verify the votes

which shall be counted by the poll

administrators for the purposes of the poll, and may adjourn the meeting to some place and time fi xed by him for the purpose of declaring the results of the poll.

Resolution 15


NOTICE IS ALSO HEREBY GIVEN THAT, subject to the approval of the shareholders at the 29th [Twenty- Ninth] Annual General Meeting of the Company, a fi nal dividend of 155 sen per share, under a single-tier system in respect of the fi nancial year ended 31 December 2012 will be paid to the shareholders on 13 June 2013. The entitlement date for the said dividend shall be 23 May 2013.

FURTHER NOTICE IS HEREBY GIVEN THAT a depositor shall qualify for entitlement only in respect of:

A. Shares transferred into the Depositors’ Securities Account before 4.00 p.m. on 23 May 2013 in respect of ordinary transfers; and

B. Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of the Bursa Malaysia Securities Berhad.

BY ORDER OF THE BOARD

MOHD. SHAH BIN HASHIM

Company Secretary [LS 0006824]

Petaling Jaya 9 April 2013



NOTES:

[i] A member of the Company entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him. A proxy may, but need not be, a member of the Company and the provision of Section 149[1][b] of the Companies Act 1965, shall not apply to the Company.

[ii] The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or if the appointor is a corporation either under the corporation’s seal or under the hand of an offi cer or attorney duly authorised.

[iii] Where a member of the Company is an authorised nominee as defi ned under the Central Depositories Act, it may appoint not more than two [2] proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple benefi cial owners in one [1] securities account [“omnibus account”], there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.

Where an authorized nominee appoints two [2] proxies, or where an exempt authorized nominee appoints two [2] or more proxies, the proportion of shareholdings to be represented by each proxy must be specifi ed in the instrument appointing the proxies

[iv] An authorised nominee or an exempt authorised nominee with more than 1 [one] securities account must submit a separate instrument of proxy for each securities account.

[v] The instrument appointing a proxy and the power of attorney or other authority [if any] under which it is signed or a notarially certifi ed copy of such power or authority shall be deposited at the Share Registrar of the Company at Tricor Investor Services Sdn. Bhd. [Company No. 118401-V] Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia, not less than 48 hours before the time appointed for holding the meeting or adjourned meeting at which the person named in the instrument proposed to vote, or in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll, and in default the instrument of proxy shall not be treated as valid.

[vi] In respect of deposited securities, only members whose names appear in the Record of Depositors on 24 April 2013 shall be entitled to attend, speak and vote at the general meeting.

Explanatory Notes on Special Business:-

Recurrent Related Party Transactions

For further information, please refer to the Circular to Shareholders dated 9 April 2013 accompanying the Company’s Annual Report for the fi nancial year ended 31 December 2012.

Proposed Amendments to the Company’s Articles of Association

The proposed amendments will allow the Company to hold its general meetings in more than one venue using electronic technology and to allow the conduct of poll(s) via electronic means.


NESTLÉ (MALAYSIA) BERHAD (110925-W) (Incorporated in Malaysia)

No. of shares held

CDS Account No.

I / We NRIC No: [New] [Old]

of

being a member of Nestlé [Malaysia] Berhad, hereby appoint *the Chairman of the meeting or

NRIC No: [New] [Old]

of

or failing him/her, NRIC No: [New] [Old]

of

as my/our proxy to vote for me/us on my/our behalf at the 29th [Twenty-Ninth] Annual General Meeting of the Company to be held at the Clarke Ballroom, Le Méridien Kuala Lumpur, 2, Jalan Stesen Sentral, Kuala Lumpur Sentral, 50470 Kuala Lumpur on Thursday, 2 May 2013 at 10.00 a.m. and at any adjournment thereof. * Delete if not applicable

My/Our proxy is to vote as indicated with an “X” below. If no specifi c direction as to voting is given, the proxy will vote or abstain from voting at his discretion.

No. Resolutions For Against

1. To receive the statutory fi nancial statements for the fi nancial year ended 31 December 2012 and the directors’ and auditors’ reports thereon.

2. To approve the payment of a fi nal dividend of 155 sen per share, under a single-tier system, in respect of the fi nancial year ended 31 December 2012.

3. To approve the payment of directors’ fees for the fi nancial year ended 31 December 2012.

4. To re-elect Dato’ Mohd. Rafi k Bin Shah Mohamad as a director of the Company.

5. To re-elect Tan Sri Datuk [Dr.] Rafi ah Binti Salim as a director of the Company.

6. To re-elect Alois Hofbauer as a director of the Company.

7. To re-appoint Messrs KPMG [Firm No. AF 0758] as auditors of the Company and to authorise the directors to fi x their remuneration.

8. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[a] of the Circular to Shareholders dated 9 April 2013.

9. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[b] of the Circular to Shareholders dated 9 April 2013.

10. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[c] of the Circular to Shareholders dated 9 April 2013.

11. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[d] of the Circular to Shareholders dated 9 April 2013.

12. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[e] of the Circular to Shareholders dated 9 April 2013.

13. Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[f] of the Circular to Shareholders dated 9 April 2013.

14. Proposed New Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3A[g] of the Circular to Shareholders dated 9 April 2013.

15. Proposed Amendments to the Company’s Articles of Association

Dated this day of 2013

Witnessed by:

Signature:

Address:

Company Stamp:

Occupation: Signature of Shareholder or Common Seal

Notes:

[i] A member of the Company entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of him. A proxy may, but need not be, a member of the Company and the provision of Section 149[1][b] of the Companies Act 1965, shall not apply to the Company.

[ii] Where a member of the Company is an authorised nominee as defi ned under the Central Depositories Act, it may appoint not more than two [2] proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple benefi cial owners in one [1] securities account [“omnibus account”], there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. Where an authorized nominee appoints two [2] proxies, or where an exempt authorized nominee appoints two [2] or more proxies, the proportion of shareholdings to be represented by each proxy must be specifi ed in the instrument appointing the proxies.

[iii] Where a member of the Company is an authorised nominee as defi ned under the Central Depositories Act, it may appoint not more than two [2] proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. Where a member of the Company is an exempt authorised nominee which holds

ordinary shares in the Company for multiple benefi cial owners in one [1] securities account [“omnibus account”], there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. Where an authorized nominee appoints two [2] proxies, or where an exempt authorized nominee appoints two [2] or more proxies, the proportion of shareholdings to be represented by each proxy must be specifi ed in the instrument appointing the proxies.

[iv] An authorised nominee or an exempt authorised nominee with more than 1 [one] securities account must submit a separate instrument of proxy for each securities account.

[v] The instrument appointing a proxy and the power of attorney or other authority [if any] under which it is signed or a notarially certifi ed copy of such power or authority shall be deposited at the Share Registrar of the Company at Tricor Investor Services Sdn. Bhd. [Company No. 118401-V] Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Malaysia, not less than 48 hours before the time appointed for holding the meeting or adjourned meeting at which the person named in the instrument proposed to vote, or in the case of a poll, not less than 24 hours before the time appointed for the taking of the poll, and in default the instrument of proxy shall not be treated as valid.

[vi] In respect of deposited securities, only members whose names appear in the Record of Depositors on 24 April 2013 shall be entitled to attend, speak and vote at the general meeting.

Proxy Form

Tricor Investor Services Sdn. Bhd. [Company No. 118401-V]

Level 17, The Gardens North Tower Mid Valley City, Lingkaran Syed Putra

59200 Kuala Lumpur

Affi x postage

stamp

Please fold here to seal

Please fold here to seal

www.nestle.com.my

Nestlé [Malaysia] Berhad [110925-W]

22-1, 22nd Floor, Menara SurianNo. 1, Jalan PJU 7/3Mutiara Damansara47810 Petaling JayaSelangor Darul EhsanMalaysia

Tel: [+603] 7965 6000Fax: [+603] 7965 6767Nestlé Consumer Services Free Phone: 1-800-88-3433Facebook: http://www.facebook.com/NestleMalaysia

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