Nestle Annual Report 2017

ANNUAL REVIEW 2017
Nestlé (Malaysia) Berhad Annual Review 2017
Key Highlights
Awards & Achievements
The Edge Billion Ringgit Malaysia’s 100 Leading Graduate Putra Brand
Club Awards 2017 Employers Award 2017 Awards 2017
Highest Return on Equity Most Popular Graduate Employer Six Nestlé Malaysia
Over the Past Three Years (FMCG) brands recognised
(Consumer Category)
Financial Performance
Turnover Operating Profit Net Profit
+ 3.9 %
+ 6.1 %
+ 1.4%
(million) (million) (million)
5,260
4,788
4,809
4.838
5,064
848
646
735
725
799
562
550
591
637
760
2013
2014
2015
2016
2013
2014
2015
2016
2013
2014
2015
2016
2017
2017
2017
Sustainability Performance
41 Recipes KIT KAT bars manufactured We reduced CO2 emissions by

certified with
at Nestlé Malaysia factory in
Chembong are made with
1,705 tonnes through
Healthier Choice Logo Project Double
100% sustainable cocoa
Nestlé (Malaysia) Berhad
Our Purpose Inside This

Report
Enhancing
quality of
life and p.4
contributing About This
Report
to a healthier FOR INDIVIDUALS AND
FAMILIES
future Enabling healthier and

happier lives
p.5
This is our purpose. This
is why we exist. This is Our Reporting
what inspires and drives Suite
us as individuals and as a
company. This is how we
contribute to society while
ensuring the long-term
success of our Company.
FOR OUR COMMUNITIES p.6
Helping develop thriving, Our Business
resilient communities • Our Presence
• Organisation Structure
• Fast Facts
p.12
Creating Shared Value
FOR THE PLANET
Stewarding resources for

future generations
To access more information,

log on to www.nestle.com.my
or scan the QR code.
Annual Review 2017
“ ”
We proactively implemented a comprehensive range of
internal and external efficiency and cost management
initiatives which enabled us to continue to deliver value to
our consumers.
p.68
Corporate Information
p.70
Corporate Directory
p.14 p.72
Message to Shareholders Notice of
Annual General Meeting
p.22 p.29
Our Strategy Business Review
• Proxy Form
p.23 p.50
Management Discussion Our Leadership
& Analysis • Board of Directors
• Profile of Directors and
Company Secretary
• Executive Leadership Team
p.28 • Profile of Executive
Leadership Team
Our Product Portfolio • Nestlé Leadership Team
04 Nestlé (Malaysia) Berhad
About This Report
About This Report
This success could not have been realised without the support
of our diverse stakeholders. We recognise and value the
Welcome to the contributions of these stakeholders and feel a deep sense of
duty to live up to our purpose of enhancing quality of life and
Nestlé Annual Review contributing to a healthier future in order to deliver our promise
of ‘GOOD FOOD, GOOD LIFE’. We seek also to communicate
2017 openly and transparently with them so that they understand the
processes that go into our manufacturing; the strategies that
drive our business; and the values that bind our business with
The success of Nestlé
our social and environmental obligations.
(Malaysia) Berhad over
We produce three reports at the end of every financial year
the last 105 years has to provide clarity on our economic, social and environmental
been driven by the strong objectives; the initiatives we embarked on to achieve our goals;
and how well we are doing in each domain. Our Annual Review
fundamentals in Malaysia focuses primarily on our economic performance. Through this
and our commitment Report, stakeholders are informed about the Company’s overall
business strategy, our targets and how we achieved them
to continue nourishing through operational, marketing and sales initiatives.
generations of Malaysians.
Our Chairman and Chief Executive Officer (CEO) provide
an overview of our performance for the year, while the
Management Discussion & Analysis talks about the progress
made via our FIT Strategy. In our Business Review, we indicate
changes in our product portfolio and highlight key campaigns
undertaken to maintain our leadership in the various food and
beverage categories.
This year, we also adopt some of the International Integrated

Reporting Council (IIRC) guidelines on linking the financial and
non-financial aspects of our business to provide a more coherent
picture of how we operate.
We have also familiarised ourselves with the Securities

Commission’s Malaysian Code on Corporate Governance 2017
and we adhere to the spirit of the new requirements.
The entire Report has been approved by the Board of Directors.

Annual Review 2017
Our Reporting Suite
05
Our Reporting
Suite
We produce a range of reports at the end of every financial year to cater to our
broad stakeholder base. Each annual report focuses on a specific aspect of our
operations and performance. These annual reports are complemented by various
other documents – such as our quarterly financial results, announcements to
Bursa Malaysia Securities Berhad and press releases – that are available on our
corporate website at www.nestle.com.my.
Report Reporting Framework Assurance
Annual Review
Our primary report for
communicating to our
Shareholders and other
stakeholders, providing an
overview of our overall strategy
as well as financial and
non-financial milestones
• Main Market Listing Requirements of • Internal controls and management

Bursa Malaysia Securities Berhad assurance
Corporate Governance • Companies Act 2016 • Compliance and internal audit reviews
& Financial Report
• Malaysian Code on Corporate • Board approval assisted by the Board
Catering specifically to Governance Committees
investors, this report provides
key information on our financial • International Integrated Reporting • External audit by KPMG PLT on ﬁnancial
performance and the governance Framework information
structures we have in place to
• Financial Reporting Standards (FRS) • External audit by
protect Shareholders’ interests
PricewaterhouseCoopers on our NiS
• Our Nestlé in Society (NiS) report Report
adheres to the Global Reporting
Initiative (GRI) guidelines.
• IIRC Guidelines
Nestlé in Society
Our main disclosure on efforts
to create value for Individuals
and Families, our Communities
and the Planet, based on our
Company’s Purpose and Values
Our Business - Our Presence
Our Business
Our Presence
1
Perlis
Nestlé Malaysia has
4 Kelantan
an extensive and 1
Kedah
Penang 2
growing presence
across the country. 1 Terengganu
7 Perak
Pahang 4
Selangor
4 1 9
1 1 Kuala Lumpur
With a head office located 2 5 Negeri Sembilan

in Selangor, we operate
seven manufacturing
2 Malacca
plants nationwide. We
have a network of 56 sales Johor
representative stations
9
throughout Peninsular Malaysia
and Borneo to facilitate our
NESTLÉ
reach to Malaysians across the
country.
MALAYSIA
Annual Review 2017
Our Business - Our Presence
07
Selangor
Headquartered in Switzerland Head Office
4 Factories
1 National Distribution Centre
9 Sales RS
Malaysia Kuala Lumpur

1 KIT KAT CHOCOLATORY
1 Sales RS
Negeri Sembilan
2 Factories
5 Sales RS
Pahang
4 Sales RS
Kelantan
4 Sales RS
Sabah
Terengganu
3 1 Sales RS
Perak
7 Sales RS
Penang
2 Sales RS
Perlis
1 Sales RS
Kedah
Sarawak
1 Sales RS
1 5
Malacca
2 Sales RS
Johor
9 Sales RS
Sarawak
1 Factory
Head Office 5 Sales RS
Factory
Sabah
Sales Representative Station
(RS) 3 Sales RS
National Distribution Centre
KIT KAT CHOCOLATORY

Our Business - Organisation Structure
Our Business
Organisation Structure
CHIEF EXECUTIVE OFFICER, NESTLÉ (MALAYSIA) BERHAD
Shared
Services
Chief Financial Officer Executive Director, Legal & Secretarial
Executive Director, Technical & Production Executive Director, Communications
Executive Director, Human Resources Executive Director, Corporate Affairs
Executive Director, Supply Chain Head of Innovation
Head of Nestlé Business Excellence &

Executive Director, Sales
Continuous Excellence
Annual Review 2017
Our Business - Organisation Structure
09
Locally Managed Globally and Regionally

Businesses Managed Businesses
Business Executive Officer Business Executive Officer
Ice Cream NESTLÉ PROFESSIONAL
Milks Nestlé Health Science
Confectionery Maternal & Infant Nutrition
Business Executive Officer Business Development Manager
Ready-to-Drink (RTD) NESPRESSO
Beverages * Cereal Partners (Malaysia) Sdn Bhd
Business Executive Officer

* Cereal Partners (Malaysia) Sdn Bhd is a joint venture between Nestlé and
Foods General Mills. The company specialises in the production and distribution of
breakfast cereal products. Its sales do not contribute to Nestlé Malaysia's
financial results.
MILO
Chilled Dairy
Our Business - Fast Facts
Our Business
Fast Facts
Nestlé Malaysia
Offers
11 categories
of products
Head office located in
Dairy Mutiara Damansara,
+ Selangor
Beverages
+
Foods
+
Ready-to-Drink
+
Infant and Maternal Nutrition
+
Healthcare Nutrition
Commercial operations
+
Breakfast Cereals in Malaysia
+
Chilled Dairy
since 1912
+
Ice Cream
+
Confectionery
+
Out-of-Home
Employs more than

5,300 people
Annual Review 2017
Our Business - Fast Facts
11
Turnover of
The biggest Halal producer
RM5.3 billion in the Nestlé world
in 2017
Produces over
500 halal products,
with locally made leading household brand names,
such as MILO, MAGGI and NESCAFÉ
Market capitalisation of
RM29 billion
as of 31 December 2017
We export our products to
50 countries
worldwide
7 Factories
and a National
Distribution Centre
100% Public listed

on Bursa Malaysia since 1989
of our manufacturing workforce are
Malaysian

Meeting Our Commitments
Looking to the future, Each day we touch billions of lives worldwide, from the individuals and families
who enjoy our products, to the communities where we live and work, and the
Creating Shared natural environment upon which we all depend. Our focus areas are firmly
embedded in our purpose. Individuals and Families, our Communities and the
Value (CSV) remains Planet as a whole are interconnected.
a fundamental guiding
Our purpose allows us to take Creating Shared Value a step further, while
principle for how adhering to our fundamental belief that our business will be successful in the
long term by creating value for both our Shareholders and for society as a whole.
we do business. The Our positive impact on society focuses on enabling healthier and happier lives
health of our Company for individuals and families, on helping the development of thriving and resilient
communities and, finally, on stewarding the planet’s natural resources for future
is intrinsically linked generations, with particular care for water.
to the health and As we move along, we will continue to evolve and strengthen our approach to
resilience of the society Creating Shared Value as the way we do business, ensuring that its thinking
continues to inform all our behaviours, policies and actions.
we operate in; this is
why our purpose is
The Nestlé in Society Pyramid
to enhance quality of
life and contribute to a
healthier future.
Creating
Shared Value
Nutrition,
Water & Environment,
Rural Development and
Our People
Sustainability
Protect the future
For further information on our CSV
initiatives, please refer to our Nestlé
in Society 2017: Creating Shared Value
and Meeting Our Commitments report,
which can be downloaded from our Compliance
corporate website:
Laws, business principles, codes of conduct
www.nestle.com.my.
Other CSV-related information can also
be obtained from www.nestle.com.my
Annual Review 2017
13
Our
Our Company’s Purpose
Contribution
to the Global Enhancing quality of life and contributing to a healthier future
Agenda
Our Ambitions
We have aligned our Creating Shared Value

agenda closely with the United Nations 2030
Agenda for Sustainable Development. Having
had the opportunity to participate in shaping the
17 Sustainable Development Goals (SDGs), the For Individuals For Our For The
private sector has also assumed responsibility and Families Communities Planet
towards delivering those goals. Enabling healthier and Helping develop thriving, Stewarding resources
happier lives resilient communities for future generations
We have integrated the SDGs into our CSV
approach, allowing us to identify those goals Our CSV Impact Areas
in which we can add most value. We have
Nutrition, Health and Rural Development Water
mapped our material issues globally against
Wellness
the SDGs to help us achieve this. We have Human Rights and Environmental
defined three overarching global ambitions to Compliance Sustainability
guide our work and have formulated a set of Our People
2030 commitments. These will support the
achievement of the SDGs. These ambitions are:
How We Make Impact
Offering tastier and Enhancing rural Caring for water

For Individuals and Families healthier choices livelihoods
Acting on climate
Help 50 million Inspiring people to lead Respecting and change
healthier lives promoting human rights
children to lead Safeguarding the
Building, sharing and Promoting decent environment
healthier lives applying nutrition employment and diversity
knowledge
For Our Communities
Through our ambitions, we are supporting the
Help to improve Sustainable Development Goals
30 million livelihoods
in communities
directly connected to
our business activities
For The Planet
Strive for zero

environmental impact
in our operations
Message to Shareholders
Annual Review 2017
21
Message to
Shareholders
“ ”
Dear Shareholders,
2017 was another challenging

year for us as we faced
hurdles in both the domestic
and global economic arena.
To an extent, we had largely
anticipated these market conditions
and had clear plans in place to
mitigate their impact on our
business. As a result, the Group
delivered a sustained growth
trajectory throughout the year and
we enter 2018 confident that we are
in a position to continue to build on
our success.
15
On behalf of the Board of Directors, it
therefore gives us great pleasure to present
the Company’s Annual Report for the financial
year ended 31 December 2017.
Throughout 2017, economic uncertainty prevailed both

at home and abroad. The weakening ringgit increased
Economic
the costs of our imported raw and packaging
Landscape
materials and the overall rise in commodity prices
negatively impacted our business. In addressing
these challenges, we proactively implemented
a comprehensive range of internal and external
efficiency and cost management initiatives which
enabled us to continue to deliver value to our
consumers. On top of this, Nestlé is an innovation
powerhouse. Our drive to innovate in order to steer
growth enabled us to continue delivering exciting
new products that are of high quality, offering greater
value to our consumers.
Our ongoing FIT operational strategy remains at the

Delivering heart of our success. FIT represents the three key pillars
Growth which power our growth – ‘Fuel to Grow’, ‘Innovate
through FIT to Grow’ and ‘Transform to Grow’. Our FIT strategy
has been pivotal in steering us through the challenges
throughout the year to deliver sustainable growth.
In 2017, we have been inspired by the launch of the

Nestlé Group’s newly articulated Purpose, driving us
Our Purpose
towards ‘Enhancing quality of life and contributing to
and Values
a healthier future’ and guiding us by our Values, which
are rooted in Respect: Respect for ourselves, others,
diversity and for the future.
As we progress, it is important that we all continue to

embrace the same purpose and stand guided by the
same values that define how we will move forward as
an organisation.
16
The fundamental principles behind our purpose and values have led us to Annual Review 2017
21
achieve 105 years of success in Malaysia and they will continue to guide
us in the future. We at Nestlé are all responsible, both individually and
collectively, for incorporating Nestlé’s purpose and values into everything
we do, enabling us to bring greater value and impact to society.
“ ”
We accelerated our growth to 3.9%, lifted our
market share to 15.5% and increased our profit
before tax by 6.2%
Despite the strong headwinds coming from higher

commodity prices and a weakened ringgit, we
Financial
accelerated our growth to 3.9%, lifted our market share
Performance
to 15.5% and increased our profit before tax by 6.2%.
Our emphasis on investments in marketing and trade

activities to sustain value for money for our consumers
and our focus on innovation and continuous efficiency
increases were key determinants of our success which
will continue to sustain our turnover and profit growth in
the future.
Whilst we do not have an official dividend policy, we

are committed towards delivering the best value to our
Dividends Shareholders via consistent dividend payments. The
Board of Directors declared a final dividend of RM1.35
per share for the financial year ended 31 December 2017,
bringing total dividends for the year to RM2.75 per share.
17
Corporate
Governance
We place a high value on

corporate governance and our
corporate culture adopts the
strictest standards of compliance,
accountability and transparency in
everything we do. We understand
that sustaining good governance
ensures the trust of all our
stakeholders and is key to our
future success.
In 2017, we welcomed the

introduction of the Securities
Commission’s new Malaysian
Code on Corporate Governance.
We take this opportunity to further
enhance our corporate governance
provisions in line with this. For our commitment to employee
engagement, we were named
‘The Most Popular Graduate
Employer’ in the FMCG category
Awards & for the fifth consecutive year by
Recognitions Grad Malaysia; one of the top
three Most Attractive Employers
for the second year running at the
Randstad Award 2017; and for the
Throughout the year, we were second consecutive year as one of
again the proud recipient of the top 10 companies Malaysians
numerous prestigious awards. want to work for by JobStreet.com.
We were also recognised as the
In recognition of our strong ‘Healthiest Employer 2017’ under
sustained performance, we the Large Organisation category of
received the Gold accolade for the the inaugural Malaysia’s Healthiest
Highest Return on Equity over the Workplace survey organised by AIA
Past Three Years for the Consumer Vitality.
Products category at The Edge
Billion Ringgit Club Awards. We Our products also took home
were also recognised at the top accolades. Six of our brands
Minority Shareholder Watchdog received trophies at the 2017 Putra
Group (MSWG) ASEAN Corporate Brand Awards. Two of our key
Governance Award with the brands, MILO and MAGGI, won
Industry Excellence Award under Gold awards; NESCAFÉ and
the Consumer Product category KIT KAT took home Silver Awards
for our exemplary standards and NESTLÉ OMEGA PLUS as well
of corporate governance; and as Nestlé Breakfast Cereals were
received the Special Mention honoured in the Bronze category.
award at the PwC Building Trust The Putra Brand Awards is the
Awards 2017, topping the charts in only brand awards in the country
the Trust in Business Public Poll.
18
Annual Review 2017
21
Outlook
We have a robust plan for

sustainable growth in place and
we are confident that our FIT
strategy will enable us to meet
the challenges ahead. We will
continue to lift efficiency across
our entire value chain and reinvest
our realised improvements into
growing our business sustainably.
Moving forward, we will remain
guided by our purpose of
enhancing quality of life and
contributing to a healthier future
and continue to focus on delivering
high quality products at greater
value to all Malaysians.
endorsed by the Malaysian External

Trade Development Corporation
(MATRADE) and supported
by the Branding Association Appreciation
of Malaysia, the Malaysian
Advertisers Association and the
Media Specialists Association.
At the Product Innovation Award The strong performance of our
2017, hosted by the Malaysian Company throughout this year
Institute of Food Technology, Nestlé could not have been achieved
CERELAC NUTRIPUFFS and Nestlé without the dedication of our
BLISS PLUS received the Gold and Management Team and we thank
Silver awards respectively. them for their strong leadership.
We are extremely grateful to our
We are also delighted to announce valued employees and we would
that our reporting was honoured like to extend our appreciation to
this year. At the National Annual them for their support and loyalty;
Corporate Report Awards (NACRA) and we express our gratitude to
2017, we were privileged to take our consumers and all Malaysians
home the highest honour of who continue to place their trust in
Platinum for our 2016 Nestlé in Nestlé.
Society sustainability report. We
had also won the Gold accolade Working in partnership with all our
for the Food & Consumer customers, suppliers, business
Packaged Goods category at the partners and Shareholders, we look
Annual Report Competition (ARC) forward to the coming year with
International Awards, which is confidence.
one of the world’s premier annual
report competitions hosted in
New York.
19
Chairman
Y.A.M. Tan Sri Dato’ Seri
Syed Anwar Jamalullail
Chief Executive Officer

Alois Hofbauer
20
Annual Review 2017
21
Our Strategy
Our Strategy
Amidst the global and Nestlé’s strong presence in Malaysia for over a century is attributed to
its steadfast focus on long-term goals whilst delivering short-term gains.
domestic economic This strategy has enabled the Company to deliver on its commitment of
nourishing Malaysians with high quality products at great value through the
headwinds throughout years.
2017, Nestlé increased
The FIT strategy is the essence of Nestlé’s long-term plan for sustainable
its share of the FMCG growth and value creation for all stakeholders. ‘Fuel to Grow’, ‘Innovate to
Grow’ and ‘Transform to Grow’ will remain the key pillars across all levels
market in Malaysia to of our operations. We are confident that these pillars will enable us to
15.5%. address any challenges and maintain our leading position in the Malaysian
market.
Looking ahead, Nestlé will continue to strive for sustainable and capital
efficient growth and will take the necessary steps to ensure that progress
remains on track. We will endeavour to continuously challenge our
processes and seek opportunities for improvements to become more
agile and efficient in a rapidly changing business environment. There will
be continued emphasis on improving and upgrading products to better
suit consumers’ wants and needs, especially for more tasty and healthier
options. At the heart of our business, we will nurture high performing
teams, who are fundamental to our success.
At the heart of our business, we will nurture high performing teams, who are fundamental to our success.
Annual Review 2017
Management Discussion & Analysis
23
Management
Discussion & Analysis
“ ” Financial
Review
We are proud to bring Against the backdrop of an economically

challenging business environment, the
our Company purpose Group registered an improved turnover of
RM5.3 billion, reflecting a 3.9% increase
to life through our FIT compared to the previous year. The strong
Fuel to Grow
Make our products better
operational strategy. results were largely attributed to strong
& less costly to boost
export and domestic business, which
Without a doubt, we have grew by 3.0% and 4.1% respectively, in
competitiveness
spite of soft consumer sentiment. The

made incredible strides robust export performance was a result of
with FIT, and propelled solid growth from other Nestlé affiliated
countries, particularly in the ASEAN
by this strong strategy region. Cost of sales as a percentage of
the revenue increased in 2017, driven by
and focus, we once again higher commodity prices for raw materials
overcame a challenging including milk, coffee and cocoa as well as
the unfavourable ringgit currency exchange.
business climate to However these effects were partially offset
by higher efficiency and cost improvements Innovate to Grow
hold our leading market in our factories and the overall supply chain. Innovate beyond
position and deliver strong products
The Group posted a higher profit after tax of
growth for the year ended RM646 million, an increase of RM9 million
from the last financial year. This was
31 December 2017. achieved as a result of prudent cost
management and effective marketing and
trade investments. Higher efficiency and
cost improvements in our factories and the
overall supply chain as well as proactive
Chief Executive Officer cost management and higher effectiveness
Alois Hofbauer in our trade and marketing spending helped
to bolster operating profit which increased
by RM49 million or 6.1% from 2016 to 2017. Transform to Grow
Profit before tax rose by a solid RM48 million Focus on what matters,
or 6.2% from 2016 to 2017. invest in people, have a
great environment at work
The Group’s solid performance has been achieved on the back of strategic by our purpose of enhancing quality of life
investments in campaigns including the MILO Malaysia Breakfast Day which and contributing to a healthier future, the
inculcates good breakfast habits and active lifestyles, as well as the NESTLÉ Group focused on driving innovation to
OMEGA PLUS Stop The Count campaign that promotes better heart health provide meaningful solutions for Malaysian
awareness. consumers’ evolving needs and demands.
We had put in proactive plans to soften the

impact of increased raw material prices
and the weakening ringgit. The Group also
remained committed towards improving
operational efficiencies to ensure that costs
were kept manageable so as not to burden
our consumers.
Our revenue growth was therefore driven

mainly by an increase in the volume of
goods we sold and continued to offer a
strong value proposition, both in terms of
high product quality and affordability.
Global
Procurement
Hub
A key highlight of this year was the Group’s

decision to establish a Global Procurement
Hub in Malaysia. The country now hosts
MILO is a strong advocate of starting the day right with a nutritious breakfast. one of the Nestlé S.A. Group’s three Global
Procurement Hubs, known as Nestrade
S.A., which is an entirely separate entity
from the Nestlé Malaysia business. Despite
many alternative options, Malaysia was
Operational
chosen as the investment location of this
Review
hub for many reasons, including its strategic
geographical position, good infrastructure,
investor-friendliness and skilled workforce.
During the year, disposable income and out-of-pocket expenses were key The decision to bring the hub to Malaysia
themes and people were generally mindful of rising food prices and household is a clear vote of confidence in Malaysia’s
expenditure. Consequently, consumers were more discerning and sought high ability to provide the structure and services
quality products as well as value for money. conducive to the highest standards of
operational excellence.
From the Group’s perspective, the competitive landscape also evolved
throughout the year, with rising local, regional and global competitors The Global Procurement Hub marks an
contributing to the growth and complexity of the eco-system. Headwinds from evolution in the way Nestlé manages
rising raw material prices also persisted throughout the year. procurement on a global scale, adapting to a
rapidly changing business environment. The
The Group focused on its innovation drive, coupled with a strong trade and hub will provide a wide range of services,
marketing strategy to maintain solid growth momentum for the year. Driven including the management of global
Annual Review 2017
25
procurement for specific raw materials such

as cocoa and coffee, packaging materials,
services, as well as other procurement-
related support for all markets.
The Global Procurement Hub in Malaysia is

part of the Procurement Vision 2020, which
aims to increase value creation for the
Nestlé business. The hub in Malaysia will
help the Group to deliver sustainable value
to the business by focusing on efficiency,
quality, safety, availability and sustainability
in all our procurement activities.
[From left] Nestlé’s former Executive Director, Technical & Production, Adnan Pawanteh;
Deputy Minister, Ministry of Health, Datuk Seri Dr. Hilmi Yahaya; and Executive Director,
Business
Corporate Affairs, Nirmalah Thurai - Nestlé supporting the launch of the Healthier Choice
Review Logo in April 2017.
In 2017, Nestlé maintained its number one

position with a 15.5% market share, up from
15.2% in 2016. However, we remain vigilant
“ ”
to competition and to this end keep a close
We remain vigilant to competition and keep a close
eye on changing consumer preferences and eye on changing consumer preferences and tastes.
tastes. The Company spent RM4.2 million
on market research in 2017 and our strong
marketing and trade support continued To ensure that we are bringing consumers the most relevant products, we
to generate demand and strengthen our perform various market research initiatives to track consumer tastes and
leading market position for many product preferences, including product and concept testing, campaign tracking and
categories. surveys to gauge usage and awareness.
Innovation remains a key growth driver. In 2017, 40 of Nestlé’s products including MILO powder, products from its
Throughout the year, we successfully Nestlé Chilled Dairy and Milks portfolio including NESTLÉ BLISS PLUS and
launched a range of new products including NESTLÉ OMEGA PLUS received the Healthier Choice Logo (HCL) certification
MILO NUTRI UP RTD beverage; from the Ministry of Health (MoH). HCL is an initiative by the Ministry to help
MAT KOOL FRUITYBUG and MAT KOOL Malaysians make more informed product choices on healthier options.
PANDA ice creams; MAGGI HOT MEALZ;
and NESTUM Cereal with Milk beverage. We In order to receive approval, products have to fulfill the stringent nutrient
also relaunched NESCAFÉ Latte Hazelnut, criteria stipulated by MoH, and are deemed healthier choices compared to
which recorded a strong performance in other products in the same category.
2017. These product innovations further
contributed to the overall turnover. The HCL endorsement on Nestlé products is a testament to the Group’s
commitment to support Malaysian individuals and families with tastier and
Besides this, we also expanded some of our healthier food and beverage choices.
product ranges, including our Nestlé Chilled
Dairy portfolio of yogurt drinks which gained
from the addition of the value-up BLISS
PLUS.
Strategy and Innovate

Performance to Grow
Delivering Power Growth is our Operational Master Plan and Innovation is the lifeblood of Nestlé and our powerful
within this, FIT is our ongoing strategic approach to growth. innovations help the Company grow in spite of the tough
It encompasses both our Company operations as a whole environment. We constantly innovate and renovate our product
and the activities of our employees. ‘Fuel to Grow’, ‘Innovate portfolio in line with the evolving trends, habits and needs
to Grow’ and ‘Transform to Grow’ are our strategic pillars of our consumers and our commitment towards enhancing
that will enable us to achieve our ambitions. FIT is the Nestlé quality of life and contributing to a healthier future for
strategy in fueling sustainable growth for the Group. Malaysians. As the world changes, so do our consumers and
thus, to keep our business relevant to individuals and families,
we have intensified our innovation drive.
Fuel to As an innovation machine, one third of growth in the Nestlé

Grow group comes from innovation. The Group launched over 30
new products in 2017.
Embedding innovation into Nestlé’s DNA, the Group also

From the start, we knew that we needed to look at making extended our innovation strategy beyond products. We
our internal systems more efficient to deliver the savings innovate to grow not only through new products, but also
needed. In difficult economic times, it is important for us to through the way we capitalise on new business opportunities
service our consumers even better. We need to provide them like e-Commerce, reaching out to consumers via these new
with the best Nestlé quality products at the most competitive digital avenues.
prices and invest in new products as well as value-adding
consumer promotions. We work hard to reduce costs whilst
upholding the superior quality of our products.
Throughout 2017, our strategy under this pillar focused on

making our products better and less costly to boost our
competitiveness. We did this through our productivity-
improvement platform, called Nestlé Continuous Excellence
(NCE), which focuses on eliminating waste and delivering
continuous investment in productivity gains and incremental
improvements. Through this, we focused on reducing
unit costs, accelerating our savings and ensuring cost We capitalise on new digital avenues, including e-Commerce as part
optimisation whilst maintaining our commitment towards of innovating the business and extending our reach to Malaysians.
producing high quality products. This enabled us to harvest
savings of RM195 million in 2017, bringing the total savings to
To strengthen our position in the e-Commerce segment and
RM843 million since the inception of the FIT strategy in 2013.
meet the growing rise in digital trade, we introduced the
We reinvested these savings into growing our brands and
following initiatives:
improving our sales as well as our marketing and trade
• We appointed an e-Commerce business partner,
investments.
Rurutiki Sdn. Bhd., to further fuel our e-Commerce business.
• Today, we are on e-Commerce platforms such as Lazada,
11street, Shopee, Qoo10 and Lelong.
The move into e-Commerce has certainly made significant

contributions to our business. In 2017, we increased our
e-Commerce business by 250%, achieving sales of
Annual Review 2017
27
RM35.4 million. In one day alone, on 11 The key towards achieving this transformation is through employee
November 2017, a day known as ‘Double engagement, because Nestlé believes in the importance of involving our
11’ - an international e-Commerce shopping employees in the business at every step of the way.
festival that is becoming increasingly popular
in Malaysia, we successfully achieved sales of Throughout 2017, our focus under this pillar embraced continuing investment
RM1.1 million. in our capabilities and work environment. We introduced many improvements
based on feedback we received from our ‘Nestlé & I’ 2016 survey, an internal
We also capitalised on new business model survey which we conduct every two years to gauge our employees’ level of
opportunities, such as the establishment satisfaction with all aspects of their working environment. We also further
of the first KIT KAT CHOCOLATORY in expanded our Total Performance Management initiative to ensure the optimal
Southeast Asia, based in Malaysia, and operating condition of our manufacturing facilities.
our NESCAFÉ Youth Entrepreneurship
programme. Our current focus on providing
innovative solutions to convenience stores
is a strategy to expand our reach to today’s FIT for
busy, on-the-go consumers. You
In a drive to encourage more innovative

ideas from our employees and create new
ideas for growth, we once again hosted Our employees are our greatest asset and enable us to sustain our success.
our ‘Innovation Awards’ which first began To perform at their optimum level, we encourage our employees to adopt a fit
in 2016. This award, opened to our Nestlé and healthy lifestyle. The Company’s JOM FIT programme allows for a more
Malaysia and Singapore employees, rewards structured employee wellness focus, and better shapes our development of
new innovation ideas which are workable employee health and wellness initiatives. It comprises three pillars:
and will drive business growth. This time
around, we received over 1,170 ideas
submitted from over 1,000 employees. This
is almost triple the amount of submissions LEARN FEEL CHOOSE
received in 2016. To help employees To help employees To help employees
enhance their health access information develop and maintain
For the full year of 2017, innovation knowledge and become about, and take healthy lifestyles.
contributed 9% of our annual sales. Sales passionate Nutrition, ownership of, their
contribution from our product innovations Health and Wellness own health.
has grown significantly, amounting to over ambassadors.
RM353 million in 2017. Our focus on product
innovation enables us to expand market Throughout the year, our adherence to this programme included internal health
share in difficult times and drive growth for talks in conjunction with World Health Day and World Heart Day; our Weight
the Group. Wellness Challenge targeting employees who are keen to find ways to achieve
a more optimum weight; and financial planning sessions in partnership with the
Credit Counselling and Debt Management Agency. We also staged our inaugural
Wellness Day and continued offering our employees an annual basic health
Transform screening.
to Grow
Our health and wellness programmes have had a positive impact on our
employees. Participation rate in these programmes has increased over the
To stay ahead, we also need to create an years. For example, in 2017, employee participation in the Weight Wellness
organisation that drives growth. This means Challenge increased by 41% compared to the previous year.
making our processes and systems leaner
and more meaningful, efficient and effective. These initiatives helped Nestlé win the inaugural Malaysia’s Healthiest Employer
Workplace Award for the Large Company category in the Malaysia’s Healthiest
Workplace by AIA Vitality 2017 survey.
Our Product Portfolio
Our Product
Portfolio
Nestlé products have become household names in Malaysia, satisfying the needs
of Malaysians at every age without compromising great taste. From toddler food
to that steaming cup of freshly brewed coffee after a delicious meal, our wide
range of food and beverages adds quality to your life and the lives of everyone
you love.
®
Annual Review 2017
Business Review
29
Business Review
MILO
MILO is the leading
chocolate malt beverage
in the country and has
delighted Malaysians with
its delicious choco-malty
taste for almost 70 years.
Combining the natural
goodness of malt, milk
and cocoa, and enriched
with ACTIV-GO, a unique
blend of PROTOMALT
and essential vitamins
and minerals, MILO is
loved and trusted by
all generations. With
its nutritious blend of
ingredients, MILO is also
recognised as a strong
advocate of starting the
day right with a healthy
breakfast and has fueled
MILO combines the natural goodness of malt, milk and cocoa, and is enriched with
generations of Malaysian ACTIV-GO, a unique blend of essential vitamins and minerals.
sports champions.
To further drive awareness on the importance of breakfast

Malaysia as a vital source of nutrients and energy for both young and
Breakfast old, the MILO brand once again hosted the MILO Malaysia
Day 2017 Breakfast Day, now in its fifth year, calling on Malaysians to
adopt the breakfast habit for a healthier and more wholesome
lifestyle.
Business Review
In conjunction with this year’s campaign, this family event sporting competitions. Our MILO Champions include diver
took place in seven locations across the country – Kuantan, Nur Dhabitah Sabri, swimmer Welson Sim, paralympian
Kota Kinabalu, Johor, Kuching, Kota Bahru, Penang and sprinter Felicia Mikat and hockey player Joel Van Huizen who
Putrajaya – reaching 60,000 Malaysians. Additionally, during have grown with MILO through the MSSM games.
Ramadan, through the ‘Bersahur with MILO’ campaign, the
brand visited 40 schools across Malaysia to educate over
40,000 schoolchildren on the importance of breakfast to Kuala
sustain their day while they fast. Lumpur
2017
Malaysia hosted a major regional sporting event, the 29th

Southeast Asian (SEA) Games and the 9th ASEAN Para
Games this year, known as KL2017. Proud to be a part of this
historical event, MILO rallied behind our local athletes, many
of whom had grown their talents and sporting career through
our MSSM programme across the years.
As a proud silver sponsor of the Games, we took the

opportunity to highlight our MILO Champions who were
competing, across various marketing channels including TV
The MILO Malaysia Breakfast Day 2017 reached 60,000 Malaysians commercials, print and digital platforms - pulling Malaysians
across seven cities in Malaysia.
from all walks of life to #risetogether in the spirit of
sportsmanship.
Taking it a step further, in conjunction with this milestone,

MILO
we also launched the limited edition MILO Kaw. As its name
Champions
Clinic 2017 suggests, the MILO Kaw offered a stronger, more chocolatey
taste which enhances the MILO taste that Malaysians love.
Packed with energy and nutrients, and more chocolatey
Demonstrating the brand’s commitment and continuous malted goodness, the product represented the athletic
support for the nation’s grassroots sports development, the strength of our champions and the strength in unity of our
MILO Champions Clinic aims to encourage an active lifestyle Malaysian supporters.
amongst children by giving them the chance to learn or even
try out a sport for the first time. Aimed at children between
the ages of seven and 11, the MILO Champions Clinic is now
in its third year and offers a range of sports including futsal,
badminton, bowling, hockey, netball and basketball in a fun
environment under the guidance of certified sports coaches.
MILO
Champions
In addition to the brand presence in the sporting arena,

MILO partners with the Ministry of Education to drive the
Majlis Sukan Sekolah-Sekolah Malaysia (MSSM) which has
unearthed and developed many sporting talents, some of
whom have gone on to represent the nation at international The limited edition MILO Kaw tin came in four designs, each
featuring a different MILO Champion.
Annual Review 2017
Business Review
31
In line with the Games’ tagline ‘Rising Together’, even before At the Games itself, we set up the MILO Stadium Carnival,
the Games kicked off, MILO rallied together Malaysians’ a hospitality booth at the Bukit Jalil National Stadium,
support for our athletes via the #StrongerTogether, or where we engaged individuals and families from all walks
#BersatuKitaTeguh, social media campaign. By posting of life through an array of exciting games and activities.
messages of encouragement, the Malaysian public came #BersatuKitaTeguh or #StrongerTogether hashtags were
together as one to cheer on our athletes and spur them to promoted along with positive messages to motivate our
reach even greater heights. athletes throughout the Games. Wrapping up the event, in
celebration of the country’s spectacular performance, MILO
We also organised a special addition to the Torch Run at organised a special event to recognise the perseverance and
Mutiara Damansara, Selangor at which key personalities in dedication of our national athletes by handing out thousands
MILO’s sports-linked history and current Nestlé executives of free cups of MILO on Merdeka Day, 31 August.
took turns to complete a 500m stretch of the relay that had
wound itself across the nation.
The MILO Stadium Carnival was

set up at the Bukit Jalil National
Stadium in Kuala Lumpur
throughout the 29th Southeast
Asian Games where we engaged
individuals and families from all
walks of life.
Win for
MILO
Malaysia
2017 was made even more special for MILO Malaysia when after a long 10-year wait, the
Malaysia brand team brought home the Nestlé Group’s MILO-NESCAU Trophy, in recognition of
our outstanding achievements in 2016. The MILO-NESCAU Trophy compares the overall brand
efforts and performance of all the countries across the globe where MILO is marketed. To
bring the trophy home to Malaysia is a testament of the MILO Malaysia team’s consistency in
performance and its excellence in brand execution.
Business Review
FOODS
MAGGI
It has always been the core mission for MAGGI, a recognised global brand and an
established household name in Malaysia, to create good-food moments that bring
families closer together. With strong heritage in noodles and culinary solutions,
MAGGI has continuously responded to the ever evolving needs of meal providers by
putting the consumers at the heart of everything we do. Through its wide range of
products, MAGGI helps mothers prepare tasty homemade meals for their families
every day.
MAGGI HOT MEALZ noodles come in bowls with bigger portions, and is offered in four delicious flavours making an ideal light lunch option!
Annual Review 2017
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33
Over the years, we have established a culture of innovation, made from 51% whole grain oats and 49% wheat sourced
bringing newer experiences to Malaysian consumers. 2017 from Australia. The noodles have a lower fat level and a high
saw the launch of one of our most successful innovations in fibre content which helps provide 18% of the recommended
recent years, with the introduction of MAGGI HOT MEALZ daily fibre intake for adults.
in Kari Laksa Ayam and Kari Kari Kaw flavours. Sold in bowls
with popular local flavours, the noodles cater to young adults In addition to noodles, one of our rising stars has been our
who lead busy lifestyles, enabling them to prepare easy yet All-in-One Seasoning, MAGGI CUKUPRASA, the perfect
satisfying hot meals on-the-go, with just a simple addition cooking partner to enhance the taste of everyday dishes
of hot water. To further promote this product range which is from good to great, with granules made from a unique blend
ideal for light lunches, MAGGI launched two more flavours – of fresh onions, garlic, anchovies and spices. Through our
Tom Yam Kaw and Roasted Sesame Chicken – in August. partnership with Sheila Rusly, we aim to empower Malaysian
mothers to cook with confidence and enjoy experimenting
To reinforce and further grow Malaysians’ age-old favourite with new recipes for their families and aspiring to make a
MAGGI Kari noodles, we continued to highlight different difference in their lives.
ways of preparing them. MAGGI Kari Dua Cara was a
campaign launched to demonstrate how the noodles can
be served either in soup form or in a ‘mi goreng’ style.
Moreover, celebrity chefs Sheila Rusly, MAGGI’s official brand
ambassador, and popular food blogger Azie, from Azie Kitchen
were engaged to develop exciting recipes for ‘mi goreng’
with their own creative twists.
In line with MAGGI’s Simply Good Values of crafting products

with ingredients people know and love, we embarked on a
journey of highlighting how Malaysia’s favourite MAGGI Kari
noodles are made, beginning with a wheat sourcing story
highlighting our collaboration with Australian farmers to
source only the best quality wheat.
For the 21st year in 2017, we hosted the MAGGI Secondary Schools
Additionally, we continued to focus on growing MAGGI Cooking Competition aims to encourage home cooking and good
eating habits amongst youths, as well as guide them on preparing
OATMEE which is currently undergoing the approval in
balanced and nutritious meals.
achieving the Ministry of Health’s HCL. MAGGI OATMEE is
Consumption of MAGGI CUKUPRASA was boosted when a
million packs of the seasoning were sampled out, attached
to fresh vegetables with recipe sleeves. The idea was
to encourage Malaysians to use the seasoning to make
delicious home-cooked meals incorporating fresh vegetables.
In line with our wide product portfolio, we also provide a

strong service dimension to our consumers. This was the
21st year of collaboration with the Ministry of Education
for the MAGGI Secondary Schools Cooking Competition
(MSSCC) conducted across Malaysia.
This competition aims to encourage home cooking and

good eating habits amongst youths, as well as guide them
on preparing balanced and nutritious meals. More than
The ‘MAGGI Kari Dua Cara’ campaign was launched to demonstrate
how MAGGI Curry 2-Minute Noodles can be served either in 300,000 students have competed in the MSSCC since the
soup form or in a ‘mi goreng’ style, encouraging Malaysians to competition was introduced, and the challenging and exciting
experiment on new recipes of their own.
format continues to draw strong participation year after year.
Business Review
BEVERAGES
NESCAFÉ
Over the past 80 years, NESCAFÉ has grown thanks to an unwavering commitment
to deliver the best taste and convenience a great cup of coffee can offer. The brand
has been part of the daily routine of millions of individuals gaining their preferences
across time and cultures. The success of the brand has been built through
connections with new consumers, and by gaining and retaining their trust.
This year, the NESCAFÉ range was expanded with the

launch of NESCAFÉ Latte Hazelnut. Made with a blend of
high quality coffee beans, the delicious smooth beverage
tempts with its rich nutty aroma even before you take a
sip. NESCAFÉ Latte Hazelnut’s aromatic flavour has quickly
become a firm favourite with Malaysian consumers. The
new variant was warmly welcomed and since its launch in
July 2017, we have achieved sales of more than RM4 million.
The NESCAFÉ Youth Entrepreneurship Programme

accelerated in 2017 as part of the academic course structure
at six top universities in Malaysia. Through this programme
which aims to groom and empower youth, 500 students
have so far gained experience in ‘running their own
business’ by managing NESCAFÉ Pop Up Stores. Through
the programme, the youths involved have successfully
engaged more than half a million students, generating
RM500,000 in total sales.
NESCAFÉ Latte Hazelnut is made with a blend of high quality coffee

beans, offering a delicious smooth beverage with a rich nutty aroma.
The NESCAFÉ Youth Entrepreneurship Programme has engaged

500,000 students since its inception.
Annual Review 2017
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35
NESTLÉ CONFECTIONERY wafer and encased in smooth milk chocolate.

They are perfect for a rewarding break, an energy
Our chocolates are not only delicious, but boost or just as a simple indulgence, and can
be enjoyed anytime and anywhere. In its first 11
promote sustainable trade by using cocoa months in the market, a total of 3 million units of
produced by farmers in Cote d’Ivoire whom KIT KAT Mini packets were sold.
we support through the NESTLÉ COCOA All KIT KAT chocolate products are manufactured
PLAN. at the Nestlé factory in Chembong, Negeri
Sembilan, and are made of 100% sustainable
cocoa.
The Nestlé Group’s aim is to help improve the

lives of marginalised cocoa farmers. Currently we
provide technical and educational aid to farmers
in Cote d’Ivoire, imparting scientific knowledge
and good farming practices as well as quality
seeds that increase the yield and quality of their
cocoa plants. Nestlé is also building schools,
providing jobs for women and improving the
quality of water for the local communities through
sanitisation projects.
Since March 2016, all our KIT KAT products

carry the NESTLÉ COCOA PLAN message to
highlight our commitment to these farmers and
their communities as part of a greater agenda to
enhance social and economic equity in the world.
KIT KAT Mini is the snack-sized, individually-wrapped packet of chocolate

fingers that are Big on Taste.
Throughout the year, the NESTLÉ Confectionery delivered a strong

performance and remained the leading player in the chocolate
category.
In April 2017, Nestlé Confectionery saw its biggest product launch

of the year with the KIT KAT Mini. The snack-sized, individually-
wrapped chocolate fingers that are Big on Taste come in three
indulgent flavours – Caramel, Mocha and Cookies & Cream, and
consist of a luscious cream centre wrapped in layers of crispy
The NESTLÉ COCOA PLAN empowers women and
provides technical and educational aid to farmers
in Cote d’Ivoire to help them increase the yield and
quality of their cocoa plants.
Business Review
MILKS
NESTUM
NESTUM cereal was first

introduced to Malaysians in
the 1960s as a nutritious hot
cereal. Made of grains such as
whole wheat, rice and corn,
this AROMALICIOUS product
is packed with vitamins and
minerals, and serves as a
nutritious staple for the whole
family. NESTUM proved beyond
doubt that it is Malaysians’
preferred multi-grain cereal as
it continued to grow its market
NESTUM Cereal with Milk blends the goodness of brown rice, wheat, oats
share. and barley with calcium and protein.
In September, the brand launched the first-ever

blended cereal drink in Malaysia, the NESTUM
Cereal with Milk, which caters particularly to
young Malaysians who are always on-the-go.
NESTUM Cereal with Milk blends the goodness
of brown rice, wheat, oats and barley with calcium
and protein, making it ideal for a chilled mid-day
power boost. Within just three months of its
launch, the product had sold over a million bottles.
This year, NESTUM also leveraged on the

popularity of Empayar Kuih NESTUM held in 2016
by organising an even bigger campaign – the
Empayar Sajian NESTUM which encouraged
homemakers to share Raya recipes that
incorporate the cereal. This time around, the
participation rate tripled and we engaged more
than 40,000 consumers during the cooking
finale. To keep the excitement going, NESTUM
continued to provide recipes, baking tips and free
NESTUM workshops on a monthly basis even
after the finale.
Pn. Alisa Roslan (centre) was crowned champion at the cooking finale of
the Empayar Sajian NESTUM.
Annual Review 2017
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37
NESTLÉ OMEGA PLUS
NESTLÉ OMEGA PLUS milk contains ACTICOL, scientifically proven to lower

cholesterol by blocking bad cholesterol from the blood stream. Leveraging on the anti-
cholesterol property of ACTICOL, the product has been actively promoted alongside
educating Malaysians on their heart health and the need to adopt healthy lifestyles.
This year, NESTLÉ OMEGA PLUS launched

a #StopTheCount campaign to galvanise
Malaysians to adopt healthier habits and
make heart health a priority. The Heart Patrol
roadshows offered free cholesterol checks
and reached more than 50,000 Malaysians
nationwide. NESTLÉ OMEGA PLUS also
formalised its partnership with Institut
Jantung Negara (IJN) and its non-profit
charity arm, IJN Foundation, by organising
the Walk-A-Sunday campaign throughout
August and September. This encouraged
Malaysians to get together for walks on
Sundays, with the added benefit of being
able to have their cholesterol levels checked
for free by IJN experts. At a media briefing
to launch the programme, a panel of medical
professionals highlighted the urgency of
cholesterol management. NESTLÉ OMEGA PLUS has been scientifically proven to lower cholesterol by
blocking bad cholesterol from the blood stream.
This was followed by another Walk-A-Mile

event in September, the 16th year it has
been organised in collaboration with IJN
Foundation. The ‘Hearty Walk’ attracted
more than 3,000 participants.
These events contributed to NESTLÉ

OMEGA PLUS closing the year with an
increased overall market share compared to
2016. It also won its first Putra Brand Bronze
Award in the Dairy Beverage category,
based on over 6,000 household consumer
votes in Malaysia. This was followed by a
Bronze at the Malaysia Effie Awards 2017 in
recognition of strong integrated marketing
communication.
3,000 Malaysians walking to a healthier heart at the NESTLÉ OMEGA PLUS

Walk-A-Mile event.
Business Review
NESTLÉ EVERYDAY
Packed with 15 essential

nutrients and vitamins, NESTLÉ
EVERYDAY milk powder is
suitable for the whole family. It
helps Malaysians of all ages build
strong bones, healthy muscles
and good eyesight whilst
improving their alertness. The ‘Famili Sihat Ceria Bersama NESTLÉ EVERYDAY’ carnivals engaged
more than 200,000 people in a fun yet educational environment.
According to the 2013 Southeast Asian Nutrition

Survey, one in three Malaysian families consume
insufficient essential nutrients such as vitamin C,
calcium and iron. Just two servings of NESTLÉ
EVERYDAY milk provide 100% of the daily
recommended intake of vitamin C, calcium and
protein that four to six-year-old children need for
healthy growth, giving parents peace of mind
knowing that their child’s nutritional needs are
being met.
To continue to raise awareness of the importance

of milk consumption for the whole family,
starting from April, NESTLÉ EVERYDAY milk
once again organised more than 50 ‘Famili Sihat
Ceria Bersama NESTLÉ EVERYDAY’ carnivals
nationwide. Targeting Projek Perumahan Rakyat
(government housing schemes for lower-
income families), the carnivals engaged more
than 200,000 people in a fun yet educational
environment. At each session, amid the
excitement and activities, nutritional talks were
given in our very own mobile nutritional bus.
These strategic marketing initiatives contributed

to NESTLÉ EVERYDAY milk maintaining its
leadership in the affordable milk segment this
year.
NESTLÉ EVERYDAY milk powder helps Malaysians of all ages build strong
bones, healthy muscles and good eyesight whilst improving their alertness.
Annual Review 2017
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39
NESTLÉ JUST MILK In 2016, NESTLÉ JUST MILK was relaunched with a new packaging
that features a cleaner, more attractive design in eye-catching
colours that stand out among competitors on the shelf. The back
NESTLÉ JUST MILK comes in of pack communicates the journey of the product from farm to
shelf, including the gentle handling process that preserves the
full cream and low-fat variants, calcium, protein and other natural goodness of milk. Understanding
both made from 100% imported consumer perception towards imported milk, the labelling also
ingredients, providing Malaysians highlights the fact that NESTLÉ JUST MILK contains 100%
imported ingredients.
with their calcium and protein
needs. This year, the brand focused more intently on its route-to-market
to accelerate sales. As a result, a customised 6x1 litre pack was
introduced at the popular retail hypermarket chain, Giant, tapping
into the bulk buying behaviour of consumers when purchasing
liquid milk. The initiative helped NESTLÉ JUST MILK strengthen its
market share and register amplified sales growth.
NESTLÉ JUST MILK is made from 100% imported ingredients, providing Malaysians with their calcium and protein needs.
Business Review
READY-TO-DRINK
As Nestlé focuses on
consumers’ constantly
evolving lifestyles, the Ready-
to-Drink (RTD) business
reports strong growth and
Nestlé continues to innovate
its product line targeted at
busy consumers of all ages.
Nestlé’s Ready-to-Drink business is one of

its fastest growing categories and is driven
by two key brands, MILO and NESCAFÉ.
In 2017, RTD targeted active adults with the

relaunch of its PET bottles with MILO NUTRI
UP, enriched with high calcium and protein.
The beverage offers the benefits of milk,
minerals and vitamins and comes in a format
that supports today’s on-the-go lifestyle. Its
multi-channel marketing campaign targeted
platforms popular with millennials on-the-
go including digital, radio and roadshows
among others.
Beside this, launched towards the end of

2016 and in line with MILO’s ongoing drive
towards encouraging healthy breakfast,
the MILO UHT Pack to School Campaign
highlights MILO as the ideal convenient pack
of nutritious energy to equip children during
their busy school day. In 2017, MILO built on
the Pack to School Campaign by introducing
recess boxes as premiums customised to fit
a pack of MILO UHT 200ml, accompanying
these with recipes presented on digital
videos for healthy yet easy to prepare
dishes. The campaign’s digital videos were
MILO NUTRI UP is enriched with high calcium and protein, offering Malaysians the full
viewed more than 1.5 million times. benefits of milk, minerals and vitamins and comes in a format that supports today’s
on-the-go lifestyle.
Annual Review 2017
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41
MILO UHT Pack to School Campaign highlights MILO as the ideal convenient pack of
nutritious energy to equip children during their busy school day.
At the same time, the #MILOBentoBox Facebook contest was launched,

prompting mothers to share their food solutions that would go well with the
packed MILO UHT. The contest was a hit when it successfully attracted more
than the targeted number of entries. The campaign led us to end the year with
a significant improvement of in-home penetration.
Celebrating International Coffee Month in September, and following the

success of our 2016 video campaign, we had produced a short acapella-style
‘Kau Ilhamku’ music video featuring NESCAFÉ which garnered 6.5 million
views. Concurrently, we had also launched the all-new NESCAFÉ Black Ice
canned drink, a refreshing coffee with a cooling sensation, appealing to non-
traditional coffee drinkers. Similarly to the MILO NUTRI UP campaign, this
product too was marketed on various out-of-home channels to reach busy
youths including on the digital platform and key LED billboards among others.
The NESCAFÉ Black Ice canned drink offers

a refreshing coffee taste that leaves a cooling
sensation, appealing to non-traditional coffee
drinkers.
Business Review
NESTLÉ ICE CREAM and refreshing flavour, it has now become the bestselling LA
CREMERIA variant.
Our ice creams continue to
Besides this, Nestlé Ice Cream also introduced a pint-sized KIT
excite Malaysians with a variety KAT Cookies & Cream tub to further extend the KIT KAT ice cream
of frozen delights, ranging from range for take-home consumers.
refreshing fruity flavours to minty

indulgence.
2017 saw various new ice cream flavours and

formats launched to cater to a wider range of
consumers and their consumption patterns.
Building on the popularity of the MILO ice cream
stick in 2016, the team introduced an ice cream
cone version, enabling consumers to enjoy the
familiar great taste of MILO with a crunchy wafer.
MAT KOOL, the No. 1 kids’ brand in Malaysia,

launched the MAT KOOL PANDA, a vanilla and
chocolate ice cream on a stick, as well as the
MAT KOOL FRUITYBUG which combines
strawberry and pineapple flavours on twin sticks
that encourage children to share their ice cream.
Both launches contributed to a 36% growth in
sales for the MAT KOOL brand.
The LA CREMERIA stick range hits all the right

notes with its latest range of flavour, the LA
CREMERIA Classically Mint. Offering a full
sensory experience, Malaysians can enjoy the
creaminess of mint ice cream, made all the more
enticing with crunchy cookie inclusions and coated
with a decadent chocolate shell. Due to its tasty
The LA CREMERIA Classically Mint combines the creaminess of a delicious

mint ice cream with crunchy cookie inclusions, coated with a decadent
chocolate shell.
MAT KOOL FRUITYBUG combines strawberry and

pineapple flavours on twin sticks that encourage
children to share their ice cream.
Annual Review 2017
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43
NESTLÉ CHILLED DAIRY

Nestlé Chilled Dairy comprises drinkable and spoonable yogurt products mainly led by
Nestlé BLISS, the number one yogurt drink brand in Malaysia, loved by consumers for
its digestive health properties and great taste.
This year, Nestlé Chilled Dairy enhanced its The team also conducted its second Nestlé Natural Set Yogurt
portfolio of yogurt drinks with BLISS PLUS, national cooking contest in an effort to promote healthier cooking
a value-up range that offers the goodness of among Malaysians.
super fruit blends with the digestive benefits
of inulin, a prebiotic that promotes growth of
good gut bacteria, coupled with live cultures.
We also created exciting limited edition flavours
for Ramadan such as Kurma Gula Melaka and
Rose Bandung while adding to Christmas cheer
with a Gingerbread-flavoured drink. A refreshing
Watermelon Lychee mix was also launched in
conjunction with 2018 Chinese New Year.
Most Nestlé Chilled Dairy products, namely BLISS

and BLISS PLUS, Nestlé Natural Yogurt and Nestlé
Fat Free Yogurt, have been certified with HCL.
To drive awareness of HCL and how Malaysians
can use it to guide them in making healthier food
choices when shopping, Nestlé Chilled Dairy
organised educational roadshows nationwide.
Nestlé Natural Set Yogurt is an all natural low fat plain yogurt that is
versatile in usage and contains the goodness of live cultures.
Throughout the year, Nestlé Chilled Dairy created
exciting limited edition flavours of the Nestlé BLISS
in conjunction with Ramadan, Christmas and Chinese
New Year.
Business Review
NESTLÉ NUTRITION
Nestlé is dedicated to supporting the optimal growth and development of young
children through good nutrition. In line with this, Nestlé Nutrition continued to lead
with new product offerings aimed at giving children a great start in life.
In 2017, we focused on expanding the toddler

snacking category with the addition of savoury
variants to the CERELAC NUTRIPUFFS range
launched in 2016. Two new variants of the toddler
snacks were introduced – Tomato & Onion and
Spinach & Onion, which helped to grow our
toddler snacking category further, propelling
CERELAC NUTRIPUFFS to become a top three
toddler snacking brand less than a year after
entering the segment.
In addition, our formulated milk powders

continued to increase in popularity. LACTOKID
was the fastest-growing in the mass market,
recording impressive growth, and NANKID
OPTIPRO, one of the fastest-growing in the
premium segment. The robust performance of
these products was driven by strong science-
based education initiatives.
e-Commerce sales for Nestlé Nutrition grew

by 400% year-on-year, supported by strategic
partnerships with Lazada, Angelland and 11street
e-retailers. Strong consumer engagement through
digital platforms facilitated the acceleration in
e-Commerce growth, which will further intensify
in the coming years as online purchasing
continues to develop in Malaysia.
CERELAC NUTRIPUFFS toddler snacks were introduced in two new

savoury variants in 2017 - Tomato & Onion and Spinach & Onion, offering
parents more choices for their little ones.
LACTOKID GROWPLUS is a formulated milk powder

for one year olds and above.
Annual Review 2017
Business Review
45
NESTLÉ HEALTH SCIENCE

Nestlé Health Science is committed to being the trusted partner in shaping new
approaches to health management through nutritional therapy. A key focus is diabetes,
as about 3.5 million Malaysians have been diagnosed with the health condition.
To support those who need to manage their

blood sugar level, Nestlé Health Science offers
a tailor-made oral nutritional supplement called
NUTREN UNTUK DIABETIK (Nutren for Diabetics).
The product contains whey protein and a low
glycemic index and is formulated according to the
international diabetes guidelines. NUTREN UNTUK
DIABETIK can also be used to make a variety
of smoothies for breakfast to help people with
diabetes start their day right. Research indicates
that skipping breakfast contributes to insulin
resistance. Therefore, having a healthy breakfast
is particularly important for people who need to
control their blood sugar level.
To spread this message and educate more

Malaysians on how to manage diabetes
effectively, we organised the ‘Start Right, Stay
Right’ event on 4 November in conjunction with
World Diabetes Day 2017. The event attracted 175
participants, far exceeding the 118 people who
took part in 2016. Supporting the half-day event,
Nestlé conducted Healthy Breakfast Roadshows
in hospitals and a Roving Activation team toured
pharmacies. During the campaign, Nestlé handed
NUTREN UNTUK DIABETIK contains whey protein with low glycemic index
and is formulated in accordance to the International Diabetes Guidelines. out more than 10,000 healthy breakfast sets and
performed 800 free blood glucose checks.
We organised the ‘Start Right, Stay Right’ event in conjunction with World Sharing our knowledge and expertise in helping
Diabetes Day in November to spread awareness on the importance of Malaysians better manage their diabetes during the
managing blood sugar levels. ‘Start Right, Stay Right’ event.
Business Review
NESPRESSO NESPRESSO regularly innovates its range with new flavours.

In 2017, SELECTION VINTAGE 2014 was introduced in
Since its beginning in 1986, Malaysia. Made from fresh Arabica coffee sourced from high
altitudes in the Colombian highlands, SELECTION VINTAGE
NESPRESSO has redefined 2014 was harvested in 2014 and then meticulously aged to
and revolutionised the way create a complex taste with elegant woodiness, softened
fruity notes and a smooth velvet-like texture.
millions of people enjoy their
espresso coffee and has In 2017, NESPRESSO’s new advertising campaign showed
how its uncompromising choices to preserve the best
shaped the coffee culture
quality coffee bring benefit to the people who grow and
throughout the world. The nurture it. Launched 15 years ago in collaboration with
NESPRESSO story began the environmental non-governmental organisation the
Rainforest Alliance, the NESPRESSO AAA Sustainable Quality
with a simple idea: to enable Programme works with more than 70,000 farmers in 12
anyone to create the perfect countries to create sustainable coffee farming practices that
increase coffee quality, farmers’ productivity and the viability
cup of espresso coffee. of their farms.
NESPRESSO’s newest campaign highlights the programme’s

work in Jardin in Colombia where NESPRESSO has helped
NESPRESSO made its debut in Malaysia in a local cooperative build a community mill where farmers
2016, catering to the growing demand from can bring their coffee cherries to be transformed into coffee
Malaysian coffee lovers for a high quality beans. The community mill centralises processing, enabling
coffee experience and offers a selection farmers to save up to five hours a day - time which they can
of 24 premium Grand Cru coffees, each reinvest in their families, communities and personal passions.
with a distinct aroma profile to suit all
taste preferences. The hermetically sealed
aluminium capsule preserves the coffee
against damaging factors, such as light, air
and humidity and ensures that the aromas
are protected until they are extracted in the
consumers’ cups. The capsules are produced
in state-of-the-art production centres in
Switzerland.
NESPRESSO machines are specifically

developed to complement and enhance the
aroma, crema and flavour of NESPRESSO
Grand Cru coffee capsules and come
with a unique technology that delivers an
optimal equilibrium between the right water
temperature, quantity and speed, along
with the optimal extraction pressure, to
consistently create the perfect cup of coffee.
The NESPRESSO AAA Sustainable Quality Programme works with
more than 70,000 farmers in 12 countries to create sustainable
coffee farming practices that increase coffee quality, farmers’
productivity and the viability of their farms.
Annual Review 2017
Business Review
47
The Essenza Mini is a small machine for big coffee moments. It is NESPRESSO’s most
compact machine yet, with two programmable cup sizes and four colour choices to fit
your style and space.
SELECTION VINTAGE 2014 offers a complex taste

with elegant woodiness, softened fruity notes and a
smooth velvet-like texture.
Business Review
NESTLÉ PROFESSIONAL
NESTLÉ PROFESSIONAL focuses on delivering our famous brands such as MILO,
NESCAFÉ and MAGGI to Out-of-Home channels and we also support the industry
through culinary programmes, concept and recipe development, awards and
sponsorships among others.
NESTLÉ PROFESSIONAL has a strong relationship

with professional food-related organisations such
as the World Association of Chefs’ Societies.
Together with them, we once again celebrated
International Chefs’ Day with a ‘Foods for Healthy
Heroes’ event aimed at educating children about
the importance of healthy eating.
In September, we participated in two leading

exhibitions in the region, Culinaire Malaysia and
Food & Hotel Malaysia 2017, where we showcased
the latest we have to offer. This included exciting
innovations on mobile payment using our
automated vending machines, tantalising food
applications and new cold beverage systems as
well as mixology. A milestone for us was the first
NESTLÉ PROFESSIONAL made presence at the Food & Hotel Malaysia
formal introduction of NESCAFÉ Espresso Whole 2017 where 25,000 trade participants convened, showcasing the latest
Roasted Beans, our Roast & Ground coffee that we had to offer.
completes our coffee solutions portfolio.
In the streets channel we embarked on a

venture called My Own Business (MYOWBU)
to promote entrepreneurship amongst street
vendors delivering a delicious cup of MILO. Street
vendors recruited under the MYOWBU umbrella
are supported by NESTLÉ PROFESSIONAL
through training in hygiene, preparation, safety
and understanding of the basic skills of running a
business. In addition, they are provided branding
collaterals which help them – and the MILO brand
– gain visibility.
As we move into 2018, NESTLÉ PROFESSIONAL

aims to grow with exciting new concepts to
help our customers to continue delighting their
consumers. Through the My Own Business programme, NESTLÉ PROFESSIONAL
promotes entrepreneurship amongst street vendors, supporting them
through training in hygiene, preparation, safety and understanding of the
basic skills of running a business.
Annual Review 2017
Business Review
49
NESTLÉ PROFESSIONAL is dedicated to supporting the needs of our clientele

through our tasty and high quality brands and solutions.
Our Leadership - Board of Directors
Our Leadership 25%
Board of Directors Male
Female
Gender
The Nestlé Board of Directors is composed of a group of highly accomplished
and experienced individuals who bring a breadth and depth of business
acumen, knowledge and perspectives to the Nestlé Board.
75%
The Directors come from a diverse range of backgrounds and the Company
benefits from their strong leadership, vast experience and expertise.
Y.A.M. Tan Sri Dato’ Mohd. Rafik Toh Puan Dato’ Dato’ Frits van Dijk
Dato’ Seri Syed Bin Shah Mohamad Seri Hajjah
Anwar Jamalullail Dr. Aishah Ong
Annual Review 2017
Our Leadership - Board of Directors
51
25% 25% 37.5% 37.5% 12.5% 12.5%
50 - 60 Bumiputra 1 - 3 years
61 - 70 Chinese Board 4 - 6 years

Age Ethnicity
71 - 80 Others Tenure 7 - 10 years
25%
>10 years
50% 50%
25%
Tan Sri Datuk Alois Hofbauer Tan Sri Datuk (Dr.) Martin Peter Kruegel Tengku Ida Adura
Yong Poh Kon Rafiah Binti Salim Tengku Ismail
(Company Secretary)
Our Leadership - Profile of Directors and Company Secretary
Our Leadership
Profile of Directors and Company Secretary
Gender
Male
Age
66

Syed Anwar Jamalullail Nationality
Malaysian
Tan Sri Dato’ Seri Syed Anwar Jamalullail has was also previously the Chairman of Malakoff
been the Chairman of the Board of Directors Corporation Berhad, Pulau Indah Ventures Sdn.
since 16 April 2009. Having served the Board Bhd., Media Prima Berhad, MRCB Berhad,
for over nine years, Tan Sri Syed Anwar was DRB-Hicom Berhad, EON Bank Berhad, Uni
re-appointed as an Independent Director at the Asia Life Assurance Berhad and Uni Asia Position
33rd Annual General Meeting held last year. He General Insurance Berhad, as well as the Non-Independent
is also the Chairman of the Nomination and Executive Chairman of Realmild (M) Sdn. Bhd. Non-Executive
Compensation Committees and a member and Radicare (M) Sdn. Bhd. He was also an Director
of the Audit Committee. Tan Sri was first Independent Director of Maxis Communications Chairman of the
appointed to the Board on 25 February 2002 Berhad and Bangkok Bank Berhad. Board of Directors
as a Non-Independent Non-Executive Director,
representing Lembaga Tabung Haji. On 5 Currently, Tan Sri Syed Anwar is the Chairman
November 2004, he was redesignated as an of Cahya Mata Sarawak Berhad, Lembaga Zakat
Independent Non-Executive Director, when Selangor and Malaysia Airports Holding Berhad.
Lembaga Tabung Haji ceased to be a substantial He is also the Chancellor of SEGi University.
Shareholder of the Company. On 20 February Board Committee
2018, he has been redesignated to a Non- Tan Sri Syed Anwar holds a Bachelor of Arts in Chairman of the
Independant Director. Accounting from Macquarie University, Sydney, Nomination and
Australia, having qualified in 1974. He is also Compensation
Tan Sri Syed Anwar commenced his career with a Chartered Accountant, a Certified Practising Committee
Malaysian Airlines Systems Berhad in 1975 as a Accountant (Australia) and a member of the Member of the
Financial Accountant, before moving on to hold Malaysian Institute of Accountants. Audit Committee
executive senior positions in various companies.
His last position was as the Group Managing In the financial year ended 31 December 2017,
Director of Amanah Capital Partners Berhad. he attended all five meetings of the Board of
Tan Sri Syed Anwar is a former Chairman of Directors.*
the Lembaga Tabung Haji Investment Panel. He
Annual Review 2017
53
Gender
Male
Age
67
Dato’ Mohd. Rafik

Bin Shah Mohamad Nationality
Malaysian
Dato’ Mohd. Rafik Bin Shah Mohamad has AgriFood Corp. Bhd.) and Biotropics Malaysia
been a Director of the Company since 1 Berhad. He is also a Director of AgriFood
June 2007, first as a Non-Independent Non- Resources Holdings Sdn. Bhd. and Sanicare
Executive Director and from 7 August 2008 as Hygiene Services Sdn. Bhd. Biotropics Malaysia
an Independent Non-Executive Director. He is Berhad wholly owns Phytes Biotek Sdn. Bhd., Position
the Chairman of the Audit Committee and a which is one of the current suppliers of raw Independent
member of the Nomination and Compensation materials to a subsidiary of the Company. Non-Executive Director
Committee. Regardless of that, Phytes Biotek Sdn. Bhd.
carries on business with the subsidiary of the
Dato’ Mohd. Rafik commenced his career in Company on the same terms as other suppliers.
1973 as an Analyst with Esso Malaysia Bhd.
He joined Nestlé in 1981 and during a tenure Dato’ Mohd. Rafik is a qualified Chartered
spanning 25 years, held various significant Accountant from the Malaysian Institute of
management positions within the Nestlé group Accountants and a Fellow of the Association
Board Committee
of companies both locally and overseas until his of Chartered Certified Accountants, United
retirement in 2006. Previously, Dato’ Mohd. Rafik Kingdom. He had also attended the Executive Chairman of the
Audit Committee
was an Independent Non-Executive Director at Development Programme at the International
Member of the
Handal Resources Bhd., and a director of Felda Institute for Management Development (IMD) in
Nomination and
Global Ventures Holdings Sdn. Bhd. Lausanne, Switzerland.
Compensation
Committee
Dato’ Mohd. Rafik is currently the Chairman In the financial year ended 31 December 2017,
of Malaysian AgriFood Corp. Bhd., Cold Chain he attended all five meetings of the Board of
Network Sdn. Bhd. (a subsidiary of Malaysian Directors.*
Gender
Female
Age
70
Tan Sri Datuk (Dr.)

Rafiah Binti Salim Nationality
Malaysian
Tan Sri Datuk (Dr.) Rafiah Binti Salim has been Berhad and is the Chairman of the Board for
a Director of the Company since 17 April 2009. Malaysian Genomics Resource Centre Berhad.
She is a member of the Audit Committee and She is also the President of Malay Girls’ College/
the Nomination and Compensation Committee. Tunku Kurshiah College Old Girls’ Association.
Position
Tan Sri Rafiah has excellent service records Tan Sri Rafiah holds a Masters and a Bachelors Independent
within the domestic public and private sectors, degree in Law from Queen’s University, Belfast, Non-Executive
as well as at international level. She has United Kingdom and was awarded an honorary Director
served as a lecturer, Deputy Dean and Dean Doctorate by the same university in 2002. She
of the Law Faculty of University of Malaya, was called to the Malaysian Bar in 1988.
Assistant Governor of the Central Bank of
Malaysia, Human Resources General Manager In the financial year ended 31 December 2017,
of Malayan Banking Berhad and the Assistant she attended all five meetings of the Board of
Secretary General for United Nations Human Directors.*
Board Committee
Resources Management in New York. Tan Sri
Rafiah was previously an Executive Director Member of the
Audit Committee
of the International Centre for Leadership in
Member of the
Finance; and in 2006, was appointed as the first
Nomination and
female Vice-Chancellor in Malaysia posted to the
Compensation
University of Malaya. Committee
Tan Sri Rafiah is currently a Director of public

listed companies, Minda Global Berhad, Allianz
Malaysia Berhad, Lotte Chemical Titan Holding
Annual Review 2017
55
Gender
Male
Age
70
Dato’ Frits van Dijk

Nationality
Dutch
Dato’ Frits van Dijk has been a Director of the Dato’ van Dijk holds a Bachelors degree in
Company since 26 April 2006, first as a Non- Economics from the School of Economics,
Independent Non-Executive Director, and then Rotterdam in the Netherlands, and has attended
redesignated as an Independent Non-Executive the Executive Development Programme at IMD
Director as of 19 November 2013. He is a in Lausanne, Switzerland. Position
member of the Nomination and Compensation Independent
Committee. In the financial year ended 31 December 2017, Non-Executive Director
he attended all five meetings of the Board of
He has served the Nestlé group of companies Directors.*
for 41 years, beginning in 1970 as a Sales
Representative at Nestlé UK. Moving up the
ranks, he has held various senior positions
within the Nestlé group of companies in
countries such as India, the Philippines, Sri
Board Committee
Lanka, China and Japan. Dato’ van Dijk was
the Chief Operating Officer and subsequently Member of the
Nomination and
the Market Head of the Company from 1987
Compensation
until 1995. He has also served as the Market
Committee
Head of Nestlé Japan, the Chairman and Chief
Executive Officer of Nestlé Waters, and the
Executive Vice President and Head of Zone
Asia, Oceania, Africa and Middle East of Nestlé
S.A., Switzerland, before retiring at the end of
September 2011.
Gender
Male
Age
72
Tan Sri Datuk

Yong Poh Kon Nationality
Malaysian
Tan Sri Datuk Yong Poh Kon has been a Director Tan Sri Yong is currently Chairman of Royal
of the Company since 25 April 2011. He is a Selangor International Sdn. Bhd. and Ayer
member of the Nomination and Compensation Holdings Berhad, and a Director of RAM
Committee. Holdings Berhad. He is a Fellow of the Academy
of Sciences and the Malaysian Institute of Position
Tan Sri Yong has served as a Board member Management. He is also a past President of the Independent
of the Malaysian Productivity Corporation, Federation of Malaysian Manufacturers (FMM). Non-Executive
Malaysian Industrial Development Authority Director
and Bank Negara Malaysia. He was also a Tan Sri Yong graduated with First Class Honours
member of the National Economic Consultative in Mechanical Engineering from the University
Council (MAPEN I and II), the Malaysian of Adelaide, Australia in 1968.
Communications and Multimedia Commission
and the Advisory Board of the Malaysian Anti- In the financial year ended 31 December 2017,
Corruption Commission. Together with the Chief he attended all five meetings of the Board of
Board Committee
Secretary of Malaysia, he was appointed as Directors.*
Co-Chair of PEMUDAH, the Special Task Force Member of the
Nomination and
to Facilitate Business, from 2007 to 2013. In
Compensation
2013, he was appointed as a member of the
Committee
Economic Council of the Prime Minister’s office.
Annual Review 2017
57
Gender
Female
Age
73
Toh Puan Dato’ Seri Hajjah

Dr. Aishah Ong Nationality
Malaysian
Toh Puan Dato’ Seri Hajjah Dr. Aishah Ong Foundation of Malaysia, the National Stroke
has been a Director of the Company since 28 Association of Malaysia, Wanita Pertubuhan
November 2013. Kebajikan Islam Malaysia Wilayah Persekutuan
and the Mental Health Association of
Toh Puan Aishah is the Pro-Chancellor of Malaysia. Toh Puan Aishah also currently sits Position
University of Malaya, having previously served on the Board of the Malaysian Philharmonic Independent
for many years as the Chairman of University Orchestra. Non-Executive Director
Malaya Medical Centre (formerly known as
University Hospital). She is also the Chairman Toh Puan Aishah qualified as a medical doctor
of Institut Jantung Negara Foundation, Cancer from the University of London in 1969 and is
Research Malaysia and the Charity Welfare an active social worker.
Sub-committee of Badan Kebajikan Isteri-isteri
Menteri. She completed two terms as the first In the financial year ended 31 December 2017,
Chairman of the Health Promotion Board of the she attended all five meetings of the Board of
Board Committee
Ministry of Health. Directors.*
-
Toh Puan Aishah is a Founding Trustee of the

Alzheimer’s Disease Foundation of Malaysia as
well as a Trustee of MERCY Malaysia, the Tun
Abdul Razak Foundation, the National Council
of Women’s Organisations, the Women’s Aid
Organisation, Dewan Filharmonik Petronas
and Media Prima Humanitarian Fund. She is
also the Patron of Cancerlink, the Arthritis
Gender
Male
Age
52
Alois Hofbauer
Nationality
Austrian
Alois Hofbauer assumed the position of CEO of 2010, he was appointed the Managing Director
Nestlé Malaysia on 22 February 2013. He was a of Nestlé Sri Lanka, a position he held until his
member of the Compensation Committee until move to Malaysia.
20 February 2018.
He presently serves on the Council of the FMM. Position
He has served with the Nestlé group of Executive Director
companies since December 1990 and over the Alois Hofbauer is a graduate of the Swiss Chief Executive
years, has developed a strong leadership track Business School, International Institute for Officer
record with a thorough understanding of the Management Development in Lausanne,
individual countries in which Nestlé operates. Switzerland and the University of Innsbruck,
Alois Hofbauer began his career as a Sales Austria.
and Marketing Trainee with Nestlé Austria. In
1995, he was transferred to Hong Kong in the In the financial year ended 31 December 2017,
first of several assignments in the Greater he attended all five meetings of the Board of
Board Committee
China Region (GCR) where he had served the Directors.*
-
next 15 years. In 1998, he moved to Mainland
China, first as Sales Manager, next as Group
Brand Manager, Coffee and Beverages, and
finally as Business Development Manager for
Milks. In 2001, he was appointed Head of the
Confectionery business for GCR, before taking
up his first general management role in 2004
as the Managing Director of Nestlé Taiwan. In
Annual Review 2017
59
Gender
Male
Age
50
Martin Peter Kruegel

Nationality
German
Martin Peter Kruegel has been a Director of the He holds a Master of Science in Economics
Company since 1 October 2014 and is the Chief from University Erlangen, Germany.
Financial Officer (CFO) of the Company.
In the financial year ended 31 December 2017,
He joined Nestlé Germany in 1995, where he he attended all five meetings of the Board of Position
held various positions in Supply Chain, Finance, Directors.* Executive Director
Accounting and Controlling. In 2000, he was Chief Financial Officer
promoted to Finance Manager in Maitre Paul
B.V. Netherlands, a subsidiary of Nestlé. From
2004 to 2006, he was the Finance Manager of
Cereal Partners Germany, following which he
was transferred to Nestlé Nordics as Finance
Manager, Cereal Partners. In 2008, he was
promoted to Head of Finance & Control in
Board Committee
Nestlé Nigeria, where he played a strong
-
co-pilot role in operational and strategic
business decisions, and implemented a very
structured platform for communication to
institutional and retail shareholders.
Gender
Female
Age
45
Tengku Ida Adura

Tengku Ismail Nationality
Malaysian
Tengku Ida Adura Tengku Ismail has been the She holds a Bachelor of Laws (Hons) from the
Company Secretary of the Group since 2013. University of Nottingham, United Kingdom
She is a certified Company Secretary, being and was admitted as a Barrister-at-Law of the
a member of the Malaysian Association of Honourable Society of Lincoln’s Inn, London.
Company Secretaries. She was also called to the Malaysian Bar. Position
Company Secretary
After being called to the Malaysian Bar, she She presently serves as Vice Chairman of Executive Director,
commenced her career in private legal practice the International Chamber of Commerce Legal & Secretarial
and prior to joining the Company, Tengku Ida Malaysia (ICC) and chairs the ICC Corporate
was a Legal Manager with Kumpulan Guthrie Responsibility & Anti-Corruption Working
Berhad (now known as Sime Darby Berhad). Committee. She is also the Malaysian Trustee
She joined the Company in 2005 as Legal representative for the ASEAN CSR Network
Counsel and in 2010, she was expatriated to and a Committee Member of the FMM
Nestlé S.A., Switzerland as Legal Counsel Business Ethics Committee.
Board Committee
for Zone Asia, Oceania, Africa and Middle
-
East. Upon her return in 2013, she assumed Tengku Ida was in attendance at all five
the position of Executive Director, Legal & meetings of the Board of Directors for the
Secretarial, responsible for all legal, secretarial financial year ended 31 December 2017.
and compliance matters for the Group,
and was made a member of the Executive
Leadership Team of the Company in 2017.
Annual Review 2017
61
* Additional information on the Board of

Directors:
i. Except for Dato’ Frits van Dijk, who holds 8,000 ordinary
shares in Nestlé (Malaysia) Berhad, none of the other
Directors own any shares in the Group.
ii. None of the Directors have any family relationship with

any other Director and/or major Shareholder of the Group.
iii. None of the Directors have any conflict of interest or any

personal interest in any business arrangement involving
the Group.
iv. None of the Directors have been convicted of any offence

within the past 10 years, other than traffic offences, if any.
Our Leadership - Executive Leadership Team
Our Leadership
Executive Leadership Team
from left to right
Nirmalah Thurai
Executive Director, Corporate Affairs
Alois Hofbauer
Chief Executive Officer
Tengku Ida Adura Tengku Ismail

Executive Director, Legal & Secretarial
from left to right
Kumaran Nowuram
Business Executive Officer, Ready-to-Drink
Chew Soi Ping

Executive Director, Sales
from left to right
Martin Peter Kruegel

Chief Financial Officer
Salman Nazir
Executive Director, Supply Chain
from left to right
Shahzad Umar
Executive Director, Human Resources
Alessandro Monica
Executive Director, Technical & Production
Annual Review 2017
Our Leadership - Profile of Executive Leadership Team
63
Our Leadership
Profile of Executive Leadership Team
Alois Hofbauer Martin Peter Kruegel Alessandro Monica

Chief Executive Officer Chief Financial Officer Executive Director, Technical & Production
Nationality Age Gender Nationality Age Gender Nationality Age Gender

Austrian 52 Male German 50 Male Italian 47 Male
Alois Hofbauer is the CEO of the Martin Peter Kruegel is the CFO of the Alessandro Monica assumed his current
Company. A graduate of the Swiss Company. He joined Nestlé Germany in position as Executive Director, Technical
Business School, International Institute 1995, where he held various positions in & Production on 1 August 2017. He
for Management Development and the Supply Chain, Finance, Accounting and began his career with Nestlé Italy in 1998
University of Innsbruck, Austria, Alois Controlling. In 2000, he was promoted where he held various roles including
Hofbauer’s career with Nestlé began to Finance Manager in Maitre Paul B.V. Head of Engineering for Ice Cream and
over 20 years ago when he joined Nestlé Netherlands, a subsidiary of Nestlé. From Frozen Food; Market Safety, Health
Austria as a Sales and Marketing Trainee. 2004 to 2006, he was Finance Manager and Environment Officer; and Factory
He has a strong leadership track record of Cereal Partners Germany. In 2008, Manager for Ice Cream, Culinary, Chilled
in delivering growth as a result of his he was promoted to Head of Finance and Nutrition. In 2011, he was transferred
experience and knowledge of the business & Control in Nestlé Nigeria, where he to Nestlé Switzerland as Operations
landscape in the Asian region. Over the played a strong co-pilot role in operational Manager for the Ice Cream Strategic
last 20 years, he has held various Senior and strategic business decisions and Business Unit. He was instrumental in the
Management positions in the region implemented a very structured platform implementation of competitive operations
before becoming the Managing Director of for communication to institutional and improvement strategies along the value
Nestlé Taiwan in 2004, subsequently the retail shareholders. Martin Kruegel holds chain and he contributed to the step
Managing Director of Nestlé Sri Lanka in a Master of Science in Economics from change in managing trade assets total cost
2010 and since 2013, the CEO of Nestlé University of Erlangen, Germany. competitiveness. He also tightened the
Malaysia. cold chain standards and rolled out internal
and external best practices across the
value chain for the Ice Cream Business.
Alessandro Monica holds a degree in
Mechanical Engineering.
* Alessandro Monica replaces former Executive

Director, Technical & Production, Adnan Pawanteh
as of 1 August 2017.
Nirmalah Thurai Chew Soi Ping Salman Nazir

Executive Officer, Corporate Affairs Executive Director, Sales Executive Director, Supply Chain

Malaysian 61 Female Malaysian 58 Male Pakistani 55 Male
Nirmalah Thurai is the Executive Chew Soi Ping is the Executive Director, Salman Nazir assumed his current
Director, Corporate Affairs of the Sales of the Company. He started position as Executive Director, Supply
Company. She joined the Company in his career in the Company in 1988 as Chain on 1 February 2018. He joined
1981 before moving to Nestlé United a Management Trainee, where he first Nestlé in 1993 as a Management Trainee
Kingdom for two years in 1987. During gained experience in Sales and Brand at Nestlé Pakistan. In almost 25 years
her tenure spanning 30 years with Nestlé Management. Since then, he has fulfilled in Pakistan, his responsibilities included
Malaysia, she has held diverse portfolios, a range of responsibilities including Factory Controlling, Project Management,
which include overseeing Consumer Executive Director of the Ice Cream IT, Procurement and Supply Chain
Insights, NESCAFÉ, Chilled Dairy and business in 2008 before transitioning Management. He was a Procurement
Nestlé Health Sciences businesses, to the role of Executive Director, Nestlé Specialist at Nestec S.A., Switzerland
as well as Sales. Prior to her current Continuous Excellence. This was followed from 2002 to 2004. He then returned to
role, Nirmalah Thurai headed the Nestlé by an expatriation to the Philippines as Nestlé Pakistan and assumed the roles
Breakfast Cereal business as the Business Senior Vice President, Ice Cream in 2013, of Corporate Procurement Manager and
Executive Officer for Cereal Partners a position he held until August 2015. later, Head of Supply Chain in 2006.
Malaysia for 12 years, overseeing the Chew Soi Ping holds a Master in Business Salman Nazir then spent three years as
Malaysia and Singapore markets. She Administration from the University of Supply Chain Director at Nestlé South
holds a Bachelor’s degree in Arts from Central Arkansas, USA and a Bachelor Africa before he was appointed to his
Universiti Sains Malaysia. of Science in Marketing (Hons) from the current position at Nestlé Malaysia. He
University of Ozarks, Arkansas, USA. holds a Bachelor of Science degree from
Punjab University Lahore, Pakistan and
has also completed the Programme
for Executive Development from IMD
Business School in Lausanne, Switzerland
and in Organisational Leadership at London
Business School.
* Salman Nazir replaces former Executive

Director, Supply Chain, Gavin Schwarzenbach as
of 1 February 2018.
Annual Review 2017
65
Kumaran Nowuram Tengku Ida Adura Tengku Shahzad Umar

Business Executive Officer, Ready-to-Drink Ismail Executive Director, Human Resources
Executive Director, Legal & Secretarial

Malaysian 47 Male Malaysian 45 Female Pakistani 39 Male
Kumaran Nowuram is the Business Tengku Ida is the Executive Director, Shahzad Umar is the Executive
Executive Officer, Ready-to-Drink of Legal & Secretarial and the Company Director, Group Human Resources of
the Company. He began his career with Secretary for the Group. She joined the Company. He started his career as a
Nestlé Malaysia in 1994 as a Management Nestlé Malaysia in 2005 as a Legal Management Trainee with Nestlé Pakistan
Trainee. In 2002, he became Group Brand Counsel and was expatriated to Nestlé in 2001, where he held various managerial
Manager for the Dairy business before he S.A., Switzerland as the Legal Counsel posts in Human Resources. He was then
was expatriated to Nestlé Middle East in for Zone Asia, Oceania, Africa and Middle expatriated to Malaysia in April 2009 as
2003 to head the Dairy business for the East in 2010. Upon her return in 2013, the Group Human Resources Manager
region, stationed in Dubai. In 2009, he she assumed the position of Executive for Organisational Development. In June
took up the role of Business Executive Director, Legal & Secretarial, responsible 2012, Shahzad Umar returned to Pakistan
Manager, Dairy based in India, before for the legal, secretarial and compliance to head the Human Resources Division
returning to Malaysia as the Executive functions of the Group. She graduated of Nestlé Pakistan for more than three
Director, Sales and later assuming his with a Bachelor of Laws (Hons) from the years. He holds a Master of Business
current role. He holds a Bachelor’s degree University of Nottingham, United Kingdom Administration from the University of
in Social Sciences (Economics) from and was admitted as a Barrister-at-Law Nottingham, Malaysia Campus and a
Universiti Sains Malaysia and has also of the Honourable Society of Lincoln’s degree in Mechanical Engineering from the
attended the Programme for Executive Inn, London. She was also called to the University of Engineering and Technology,
Development at the International Institute Malaysian Bar. Lahore.
for Management Development in
Lausanne, Switzerland.
Our Leadership - Nestlé Leadership Team
Our Leadership
Nestlé Leadership Team
14
7 10 12 13
9
8 11
2 3
1
Front row, from left to right
1 Philomena Tan
2 Alois Hofbauer
3 Yit Woon Lai
Back row, from left to right
7 Eugene Chan 9 Wong Eu Khean 12 Martin Peter Kruegel
8 Emilyn Loo 10 Shahzad Umar 13 Sachin Goel
11 Nirmalah Thurai 14 Jan-Willem Boezelman

Annual Review 2017
Our Leadership - Nestlé Leadership Team
67
15 17 18 21 23
16 19 22
20
4 6
5
Front row, from left to right
4 Ng Su Yen
5 Tengku Ida Adura Tengku Ismail
6 Alessandro Monica
Back row, from left to right
15 Christophe Baey 18 Othman Chraibi 21 Salman Nazir
16 Kumaran Nowuram 19 Fiona Tan 22 Chew Soi Ping
17 Geoffrey Dalziel 20 Geetha K. Balakrishna 23 Teo Heng Keat


Non-Independent
Non-Executive Director
Chairman of the
Dato’ Mohd. Board of Directors Toh Puan Dato’
Rafik Bin Shah Seri Hajjah Dr.
Mohamad Aishah Ong
Independent Independent
Non-Executive Non-Executive
Director Director
Alois Hofbauer
Tan Sri Datuk
(Dr.) Rafiah
B OA R D O F Executive Director
Binti Salim
DIRECTORS (Alternate Director to
Martin Peter Kruegel)
Independent Chief Executive Officer
Non-Executive
Director
Tan Sri Datuk Martin Peter

Yong Poh Kon Kruegel
Independent Executive Director

Non-Executive (Alternate Director to
Dato’ Frits van Alois Hofbauer)
Director
Dijk Chief Financial
Officer
Independent
Non-Executive
Director
Annual Review 2017
69
COMPANY SECRETARY AUDITOR
BOARD COMMIT TEES Tengku Ida Adura Tengku Ismail KPMG PLT (Firm No. AF 0758)
(MACS 01686) Chartered Accountants
Tel : +603 7965 6000 Level 10, KPMG Tower
Fax : +603 7962 7213 8, First Avenue, Bandar Utama
Audit E-mail : TengkuIdaAdura.TengkuIsmail 47800 Petaling Jaya
Committee @my.nestle.com Selangor Darul Ehsan
Tel : +603 7721 3388
Fax : +603 7721 3399
Chairman
Dato’ Mohd. Rafik Bin Shah
Mohamad
REGISTERED OFFICE PRINCIPAL BANKERS
Member
Y.A.M. Tan Sri Dato’ Seri 22-1, 22nd Floor, Menara Surian HSBC Bank Malaysia Berhad
Syed Anwar Jamalullail No. 1, Jalan PJU 7/3 (127776-V)
Mutiara Damansara
Tan Sri Datuk (Dr.) Rafiah Binti 47810 Petaling Jaya Malayan Banking Berhad
Salim
Selangor Darul Ehsan (3813-K)
Tel : +603 7965 6000
Fax : +603 7965 6767
COMPANY WEBSITE STOCK EXCHANGE LISTING
www.nestle.com.my Main Market

Bursa Malaysia Securities Berhad
Nomination &
(635998-W)
Compensation
Committee
Chairman
Y.A.M. Tan Sri Dato’ Seri SHARE REGISTRAR
Tricor Investor & Issuing House
Member Services Sdn. Bhd.
Dato’ Mohd. Rafik Bin Shah (11324-H)
Mohamad Unit 32-01, Level 32, Tower A
Tan Sri Datuk (Dr.) Rafiah Binti Salim Vertical Business Suite
Avenue 3, Bangsar South
Dato’ Frits van Dijk No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Tan Sri Datuk Yong Poh Kon Tel : +603 2783 9299
Fax : +603 2783 9222
Corporate Directory
Corporate Directory
HEAD OFFICE FAC T O R I E S
NESTLÉ (MALAYSIA) BERHAD (110925-W) PETALING JAYA

22-1, 22nd Floor, Menara Surian NESTLÉ MANUFACTURING (MALAYSIA) SDN. BHD. (315081-K)
No. 1, Jalan PJU 7/3 25, Jalan Tandang
Mutiara Damansara 46050 Petaling Jaya
47810 Petaling Jaya Selangor Darul Ehsan
Selangor Darul Ehsan Tel : +603 7787 7400
Tel : +603 7965 6000 Fax : +603 7787 7599
Fax : +603 7965 6767
BATU TIGA
CONSUMER SERVICES NESTLÉ MANUFACTURING (MALAYSIA) SDN. BHD. (315081-K)
1 800 88 3433 Lot 3, Jalan Playar 15/1
Kawasan Perindustrian Shah Alam
40700 Shah Alam
WEBSITE Selangor Darul Ehsan
www.nestle.com.my Tel : +603 5522 5600
Fax : +603 5510 6263
FACEBOOK
http://www.facebook.com/Nestle.Malaysia SHAH ALAM COMPLEX
NESTLÉ MANUFACTURING (MALAYSIA) SDN. BHD. (315081-K)
Lot 5, Jalan Playar 15/1
40700 Shah Alam
Selangor Darul Ehsan
Tel : +603 5522 5600
Fax : +603 5522 5999
SRI MUDA
Lot 75 & 76, Jalan Playar 15/1
40700 Shah Alam
Tel : +603 5520 6400
Fax : +603 5520 6500
Annual Review 2017
Corporate Directory
71
CHEMBONG NATIONAL DISTRIBUTION CENTRE

NESTLÉ MANUFACTURING (MALAYSIA) SDN. BHD. (315081-K) NESTLÉ PRODUCTS SDN. BHD. (45229-H)
Lot 691, Jalan Perusahaan Utama Lot 1, Persiaran Waja
Kawasan Perindustrian Chembong Kawasan Perindustrian Bukit Raja
71300 Rembau 41050 Klang
Negeri Sembilan Selangor Darul Ehsan
Tel : +606 686 3900 Tel : +603 3361 7800
Fax : +606 686 4080 Fax : +603 3361 7801
CHEMBONG (ICE CREAM)

Lot 3857 – 3862
Jalan Perusahaan
Kawasan Perindustrian Chembong
71300 Rembau
Negeri Sembilan
Tel : +606 686 3900
Fax : +606 686 4095
KUCHING
Lot 844, Block 7
Muara Tebas Land District
Sejingkat Industrial Estate
93714 Kuching
Sarawak
Tel : +6082 472 800
Fax : +6082 472 999
Notice of Annual General Meeting
Notice of
Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the 34 th Annual General Meeting of the Company will be held
at Ballroom B & C, Hilton Kuala Lumpur, 3 Jalan Stesen Sentral, 50470 Kuala Lumpur on
Thursday, 26 April 2018 at 10.00 a.m. for the transaction of the following business:
AGENDA
As Ordinary Business
1. TO RECEIVE the statutory financial statements for the financial year ended 31 December 2017 and
the Directors’ and Auditors’ reports thereon.

Please refer to Explanatory Note 1

2. TO RE-ELECT the following Directors retiring in accordance with Article 97.1 of the Constitution of the
Company:

2.1 Dato’ Mohd. Rafik Bin Shah Mohamad Resolution 1
2.2 Tan Sri Datuk (Dr.) Rafiah Binti Salim Resolution 2
2.3 Martin Peter Kruegel Resolution 3


3. TO RE-APPOINT KPMG PLT (Firm No. AF 0758) as Auditors of the Company and to authorise the
Directors to fix their remuneration. Resolution 4
As Special Business
TO CONSIDER AND IF THOUGHT FIT, to pass the following as Ordinary Resolutions:
4. TO APPROVE the payment of a final dividend of 135 sen per share, under a single-tier system, in
respect of the financial year ended 31 December 2017. Resolution 5
5. TO APPROVE the following payments to Directors:

5.1 Fees of RM1,080,000.00 for the financial year ended 31 December 2017. Resolution 6
5.2 Benefits of RM250,000.00 for the financial period from 1 July 2018 to 30 June 2019. Resolution 7
6. Proposed Renewal of Shareholders’ Mandate and New Shareholders’ Mandate for Recurrent
Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3(a) of the
Circular to Shareholders dated 28 March 2018.
“THAT approval be hereby given for the renewal of the mandate granted by the Shareholders of the
Company on 27 April 2017 and new Shareholders’ mandate pursuant to paragraph 10.09 of the Main
Annual Review 2017
73
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 2.3(a) of the Circular to Shareholders dated 28 March 2018 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.

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 340(2) of the Companies Act 2016 (but must not
extend to such extension as may be allowed pursuant to Section 340(4) of the Companies Act
2016); 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

7. Retention of Independent Directors

THAT the following Independent Directors who have served for a cumulative term of more than nine
years be and are hereby retained as Independent Directors of the Company until the conclusion of the
next AGM, in accordance with the Malaysian Code on Corporate Governance (“MCCG 2017”):-
7.1 Dato’ Mohd. Rafik Bin Shah Mohamad Resolution 9

7.2 Tan Sri Datuk (Dr.) Rafiah Binti Salim Resolution 10
TO CONSIDER AND IF THOUGHT FIT, to pass the following as Special Resolution:
8. Proposed Amendments to the Company’s Constitution

“THAT the alterations, modifications, additions or deletions to the Company’s Constitution as set out
in Part B of the Circular to Shareholders dated 28 March 2018 accompanying the Company’s Annual
Report for the financial year ended 31 December 2017 be and are hereby approved.” Resolution 11

9. TO TRANSACT any other business of which due notice shall have been given.
NOTICE IS ALSO HEREBY GIVEN THAT, subject to the approval of the Shareholders at the 34th AGM of the Company, a final
dividend of 135 sen per share, under a single-tier system in respect of the financial year ended 31 December 2017 will be paid to
the Shareholders on 31 May 2018. The entitlement date for the said dividend shall be 15 May 2018.
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 15 May 2018 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
TENGKU IDA ADURA TENGKU ISMAIL

Company Secretary (MACS 01686)
Petaling Jaya
28 March 2018
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 in his place. A proxy
may, but need not be, a member of the Company.

(ii) The instrument appointing a proxy shall be in writing under the hand of the appointer 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 officer or attorney duly authorised.

(iii) Where a member of the Company is an authorised nominee as defined under the Central Depositories Act, he may appoint not more than
two proxies in respect of each Securities Account he 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
beneficial owners in one 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 authorised nominee appoints two proxies, or where an exempt authorised nominee appoints two or more proxies, the proportion
of shareholdings to be represented by each proxy must be specified in the instrument appointing the proxies.

(iv) An authorised nominee or an exempt authorised nominee with more than 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 certified copy
of such power or authority shall be deposited at the office of the Share Registrar of the Company, Tricor Investor & Issuing House Services
Sdn. Bhd. (Company No. 11324-H), at Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi,
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. The Share Registrar will also provide a box for drop-in of proxy
forms at Customer Service Counter, Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala
Lumpur, Malaysia.

(vi) In respect of deposited securities, only members whose names appear in the Record of Depositors on 18 April 2018 shall be entitled to
attend, speak and vote at the general meeting.

Annual Review 2017
75
Explanatory Notes on Ordinary Business:
1. Audited Financial Statements
This item of the Agenda is meant for discussion only. The provisions of Section 340(1) of the Companies Act 2016 require that the audited
financial statements and the Reports of the Directors and Auditors thereon be laid before the Company at its Annual General Meeting. As
such this Agenda item is not a business which requires a resolution to be put to vote by Shareholders.

2. Re-election of Retiring Directors
Dato’ Mohd. Rafik Bin Shah Mohamad, Tan Sri Datuk (Dr.) Rafiah Binti Salim and Martin Peter Kruegel are standing for re-election as
Directors of the Company and being eligible, have offered themselves for re-election.

3. Re-appointment of KPMG PLT (Firm No. AF 0758) as Auditors of the Company

The Board had at its meeting held on 20 February 2018 approved the recommendation by the Audit Committee on the re-appointment of
KPMG PLT (Firm No. AF 0758) as Auditors of the Company. The Board and Audit Committee collectively agreed that KPMG PLT (Firm No.
AF 0758) has met the relevant criteria prescribed by Paragraph 15.21 of the Main Market Listing Requirements of Bursa Malaysia Securities
Berhad.

Explanatory Notes on Special Business:-
4. Recurrent Related Party Transactions

The proposed resolution is to seek a renewal of Shareholders’ mandate and new Shareholders’ mandate to allow the Company and/or its
subsidiaries to enter into recurrent related party transactions of a revenue or trading nature. For further information, please refer to the
Circular to Shareholders dated 28 March 2018 accompanying the Company’s Annual Report for the financial year ended 31 December 2017.
5. Retention of Independent Directors

Dato’ Mohd. Rafik Bin Shah Mohamad
The proposed resolution is to seek the Shareholders’ approval to retain Dato’ Mohd. Rafik Bin Shah Mohamad as an Independent Non-
Executive Director. He has been a director of the Company since 1 June 2007. He was initially appointed as a Non-Independent Non-
Executive Director before redesignated as an Independent Non-Executive Director in 7 August 2008. His position as an Independent
Non-Executive Director has been assessed pursuant to Practice 4.2 of the MCCG 2017 and it has been agreed to retain Dato’ Mohd. Rafik
Bin Shah Mohamad as an Independent Non-Executive Director of the Board of Directors and as Chairman of the Audit Committee. The
recommendation to re-elect and retain Dato’ Mohd. Rafik Bin Shah Mohamad as an Independent Director is supported by his 25 years
of experience in the Company and his vast experience in the financial arena. Dato’ is a qualified Chartered Accountant from the Malaysia
Institute of Accountants and a fellow of the Association of Chartered Certified Accountants, United Kingdom. He is currently the Chairman
of Malaysian AgriFood Corp. Bhd., Cold Chain Network Sdn. Bhd. (a subsidiary of Malaysian AgriFood Corp. Bhd.) and Biotropics Malaysia
Berhad. With his knowledge and experience, he provides valuable guidance and analytical input in financial matters and the operations of
the Company. Dato’ is also able to share his valuable experience and knowledge of the business and the industry with the Board.

Tan Sri Datuk (Dr.) Rafiah Binti Salim
The recommendation to re-elect and retain Tan Sri Rafiah Salim as an Independent Non-Executive Director is based on her vast excellent
service records within the domestic public and private sectors, as well as at international level. She has been a Director of the Company
since 17 April 2009. She has extensive knowledge and experience in legal and human resources from various organisations. Her international
experience as Assistant Secretary General for Human Resources Management of United Nations in New York is a valuable asset to the
Board of Directors and the Company. She was the first female Vice-Chancellor of Universiti Malaya. She brings diversity to the Board and
the Company believes that she would be able to provide a distinctive outlook and unique perspective in diverse corporate matters. Tan Sri
Datuk (Dr.) Rafiah Binti Salim holds a number of directorships in public listed companies. She is currently a Director of Minda Global Berhad,
Allianz Malaysia Berhad, Lotte Chemical Titan Holding Berhad and is the Chairman of the Board of Malaysian Genomics Resource Centre
Berhad. With her knowledge and experience, she will be able to provide valuable guidance and input on human resource matters and the
operations of the Company as a whole.
6. Proposed Amendments to the Company’s Constitution

The proposed amendments will bring the Company’s Constitution in line with the Companies Act 2016, the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad and MCCG 2017, to enhance administrative efficiency.
Please refer to the Circular to Shareholders dated 28 March 2018 accompanying the Company’s Annual Report for the financial year ended
31 December 2017, for the details of the proposed amendments to the Constitution.
This page has been intentionally left blank.
PROXY Nestlé (Malaysia) Berhad (110925-W)
(Incorporated in Malaysia)
FOR M 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 34th Annual General Meeting of the Company to be held at the Ballroom B &
C, Hilton Kuala Lumpur, 3 Jalan Stesen Sentral, 50470 Kuala Lumpur on Thursday, 26 April 2018 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 specific direction as to voting is given, the proxy will vote or abstain from voting at
his discretion.
No. Resolutions For Against
1. To re-elect Dato' Mohd. Rafik Bin Shah Mohamad as a Director of the Company.
2. To re-elect Tan Sri Datuk (Dr.) Rafiah Binti Salim as a Director of the Company.
3. To re-elect Martin Peter Kruegel as a Director of the Company.
To re-appoint Messrs. KPMG PLT (Firm No. AF 0758) as Auditors of the Company and to authorise
4.
the Directors to fix their remuneration.
To approve the payment of a final dividend of 135 sen per share, under a single-tier system, in
5.
respect of the financial year ended 31 December 2017.
To approve the payment of Directors’ fees of RM1,080,000.00 for the financial year ended 31
6.
December 2017.
To approve the payment of Directors’ benefits of RM250,000.00 for the financial period from 1 July
7.
2018 to 30 June 2019.
Proposed Renewal of Shareholders’ Mandate and New Shareholders’ Mandate for Recurrent
8. Related Party Transactions of a Revenue or Trading Nature as set out under Section 2.3(a) of the
Circular to Shareholders dated 28 March 2018.
9. Retention of Dato' Mohd. Rafik Bin Shah Mohamad as an Independent Director.
10. Retention of Tan Sri Datuk (Dr.) Rafiah Binti Salim as an Independent Director.
11. Proposed Amendments to the Company’s Constitution.
Dated this ________________________ day of ______________________ 2018

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.
(ii) The instrument appointing a proxy shall be in writing under the hand of the appointer 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 officer or attorney duly authorised.
(iii) Where a member of the Company is an authorised nominee as defined under the Central Depositories Act, he may appoint not more than two proxies in respect
of each Securities Account he 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 beneficial owners in one 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 authorised nominee appoints two proxies, or where an exempt authorised nominee appoints two or more proxies, the proportion of shareholdings to
be represented by each proxy must be specified in the instrument appointing the proxies.
(iv) An authorised nominee or an exempt authorised nominee with more than 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 certified copy of such power or
authority shall be deposited at the office of the Share Registrar of the Company, Tricor Investor & Issuing House Services Sdn. Bhd. (Company No. 11324-H), at
Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 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. The Share Registrar
will also provide a box for drop-in of proxy forms at Customer Service Counter, Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan
Kerinchi, 59200 Kuala Lumpur, Malaysia.
(vi) In respect of deposited securities, only members whose names appear in the Record of Depositors on 18 April 2018 shall be entitled to attend, speak and vote
at the general meeting.
Please fold here to seal
Affix postage
stamp
Tricor Investor & Issuing House Services Sdn. Bhd.
(Company No. 11324-H)
Unit 32-01, Level 32, Tower A
Vetical Business Suite, Avenue 3
Bangsar South, No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Tel: (03) 2783 9299 Fax: (03) 2783 9222
Please fold here to seal

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
Malaysia
Tel (+603) 7965 6000

Fax (+603) 7965 6767
Nestlé Consumer Services Free Phone: 1-800-88-3433

Facebook: http://www.facebook.com/Nestle.Malaysia
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ANNUAL REVIEW 2017

Nestlé (Malaysia) Berhad Annual Review 2017

Awards & Achievements

41 Recipes KIT KAT bars manufactured We reduced CO2 emissions by

Our Purpose Inside This

future Enabling healthier and

FOR THE PLANET

Stewarding resources for

To access more information,

About This Report

This year, we also adopt some of the International Integrated

We have also familiarised ourselves with the Securities

The entire Report has been approved by the Board of Directors.

Report Reporting Framework Assurance

• Main Market Listing Requirements of • Internal controls and management

With a head office located 2 5 Negeri Sembilan

Malaysia Kuala Lumpur

KIT KAT CHOCOLATORY

CHIEF EXECUTIVE OFFICER, NESTLÉ (MALAYSIA) BERHAD

Chief Financial Officer Executive Director, Legal & Secretarial

Executive Director, Technical & Production Executive Director, Communications

Executive Director, Human Resources Executive Director, Corporate Affairs

Executive Director, Supply Chain Head of Innovation

Head of Nestlé Business Excellence &

Locally Managed Globally and Regionally

Business Executive Officer Business Executive Officer

Ice Cream NESTLÉ PROFESSIONAL

Business Executive Officer Business Executive Officer

Milks Nestlé Health Science

Business Executive Officer Business Executive Officer

Confectionery Maternal & Infant Nutrition

Business Executive Officer Business Development Manager

Ready-to-Drink (RTD) NESPRESSO

Business Executive Officer Business Executive Officer

Beverages * Cereal Partners (Malaysia) Sdn Bhd

Business Executive Officer

Business Executive Officer

Business Executive Officer

Employs more than

We export our products to

100% Public listed

Creating Shared Value

We have aligned our Creating Shared Value

Offering tastier and Enhancing rural Caring for water

For The Planet

Strive for zero

2017 was another challenging

Throughout 2017, economic uncertainty prevailed both

Our ongoing FIT operational strategy remains at the

In 2017, we have been inspired by the launch of the

As we progress, it is important that we all continue to

Despite the strong headwinds coming from higher

Our emphasis on investments in marketing and trade

Whilst we do not have an official dividend policy, we

We place a high value on

In 2017, we welcomed the

We have a robust plan for

endorsed by the Malaysian External

Chief Executive Officer

We are proud to bring Against the backdrop of an economically