Nestle India Ltd. — Annual Report 2021

Feb 16, 2021

Nestle India Limited

(CIN : L 15202DL 1959PLC003786) Nestle House Jacaranda Marg 'M'Block, DLF City, Phase- II Gurugram - 122002, Haryana Phone 0124 - 3940000 E-mail: investor@IN.neslle.com Website www.nestle.in

BM:PKR: 05:21 16.02.2021

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai - 400 001 Scrip Code: 500790

• Subject 1 Regulation 33 of Listing Regulations : Audited Financial Results for 2020
• 2. Regulation 30 of Listing Regulations
  • Final Dividend for 2020 recommended Rs 65.00 per equity shares of Rs 10I• each.
  • 62nd Annual General Meeting on Friday, 7th May 2021 through Video Conferencing I Other Audio Visual Means (VCI OAVM).
• 3. Regulation 42 of Listing Regulations : 62nd Annual General Meeting ('62nd AGM') and Book Closure.

Dear Sir,

1. Audited Financial Results 2020

The Board of Directors at their meeting held today:-

• a) approved the audited financial results for the year ended 31 st December 2020. Enclosed are the audited financial results along with the Report of the Auditors thereon and the declaration in respect of Audit Reports with unmodified opinion for the Financial Year ended 31 st December 2020. The audited financial results shall be published in newspapers as required. Also, find enclosed Press Release relating to the results. The above are being uploaded on the Company's website ;
• b) approved the Financial Statements of the Company for the year 2020 including Balance Sheet as at 31 st December 2020 and Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date.

2. Final Dividend recommended

The Board of Directors recommended final dividend for the year 2020 of Rs. 65/- (Rupees sixty five only) per equity shares of Rs. 10/- each.

3. Annual General Meeting and Book Closure

At the Board Meeting held today, the Board of Directors also approved the convening of 62nd AGM of the Company on Friday, 7th May 2021 through Video Conferencing/ Other Audio Visual Means (VC/ OAVM).

The Register of Members and Share Transfer Books of the Company shall remain closed from 1st May 2021 to ?+Ji May 2021 (both days inclusive) for the purpose of Annual Closing and determining entitlement of the members to the final dividend for 2020. The final dividend, if approved by the shareholders at 62nd AGM, shall be paid on and from 20th May 2021. Intimation of Annual Book Closure is enclosed. Soft copy of the Annual Report and Notice of the 62nd AGM shall be sent in due course. The same shall also be uploaded on the Company's website.

The meeting of the Board of Directors commenced at 15.00 hours and above agenda items concluded at 17.00 hours.

Thanking you, Yours truly,

B. MURLI ~

GENERAL COUNSEL & COMPANY SECRETARY Encl.: as above

Regd. Office: 100 / 101, World Trade Centre, Barakhamba Lane, New Delhi - 11 O 001

Registered Office: 100 / 101, World Trade Centre, Barakhamba Lane, New Delhi - 110 001

STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 DECEMBER 2020

						~ Million)
	THREE MONTHS ENDED				ACCOUNTING YEAR ENDED
31.12.2020 (Audited as explained in Note 12)	30.9.2020 (Un-audited)	31.12.2019 (Audited as explained in Note 12) CRestatedl*		PARTICULARS	31.12.2020 (Audited)	31.12.2019 (Audited) (Restated)*
			A	INCOME
32,607.0	33,501.0	29,607.8		DOMESTIC SALES	126,427.7	116,567.9
1,568.2	1,753.1	1,699.6		EXPORT SALES	6,473.9	6,384.8
34,175.2	35,254.1	31,307.4		SALE OF PRODUCTS	132,901.6	122,952.7
150.6	162.9	185.5		OTHER OPERATING REVENUES	598.7	736.3
34,325.8	35,417.0	31,492.9	i	REVENUE FROM OPERATIONS	133,500.3	123,689.0
306.0	344.7	447.0	ii	OTHER INCOME	1,458.5	2,468.8
34,631.8	35,761.7	31,939.9		TOTAL INCOME	134,958.8	126,157.8
			B	EXPENSES
14,884.9	13,877.7	14,695.9	i	COST OF MATERIALS CONSUMED	55,542.4	51,503.0
455.8	316.9	567.3	ii	PURCHASES OF STOCK-IN-TRADE	1,890.0	2,178.1
(1,296.1)	648.0	(1,649.1)	iii	CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK-IN-TRADE	(693.3)	(1,441.9)
4,033.0	3,696.8	3,220.4	iv	EMPLOYEE BENEFITS EXPENSE	15,009.5	12,581.7
419.7	404.5	311.2	V	FINANCE COSTS (INCLUDING INTEREST COST ON EMPLOYEE BENEFIT PLANS)	1,641.8	1,291.2
9SS.0	911.1	935.6	vi	DEPRECIATION AND AMORTISATION	3,703.8	3,701.5
8,488.6 -	7,798.2 -	7,631.7 vii	- viii	OTHER EXPENSES IMPAIRMENT LOSS ON PROPERTY, PLANT AND EQUIPMENT	29,132.8	28,977.4
				NET PROVISION FOR CONTINGENCIES	-	-
(31.5)	99.6	(49.2) ix		- OPERATIONS	139.7	248.8
(164.8)	55.1	-	X	- OTHERS	-	-
185.5	88.8	135.1 xi		CORPORATE SOCIAL RESPONSIBILITY EXPENSE	464.2	383.1
27,930.1	27,896.7	25,798.9		TOTAL EXPENSES	106,830.9	99,422.9
6,701.7	7,865.0	6,141.0 C		PROFIT BEFORE TAX (A·B)	28,127.9	26,734.9
			D	TAX EXPENSE:
1,938.4	2,082.0	1,444.1		CURRENT TAX	7,634.2	7,470.0
(69.8)	(87.9)	(29.5) 4,726.4		DEFERRED TAX PROFIT FOR THE PERIOD (C-D)	(330.6	(419.5)
4,833.1	5,870.9		E F	OTHER COMPREHENSIVE INCOME	20,824.3	19,684.4
				a. (i) ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
292.6 -	(678.1) -	(427.4) (30.0)		- RE-MEASUREMENT OF RETIRAL DEFINED BENEFIT PLANS - CHANGES IN FAIR VALUE OF EQUITY INSTRUMENTS	(1,236.5) -	(2,036.7) (30.0)
(73.6)	170.6	107.5		(ii) INCOME TAXES RELATING TO ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS	311.2	523.3
6.6	1.7	12.7		b. (i) ITEMS THAT WILL BE RECLASSIFIED TO PROFIT OR LOSS - CHANGES IN FAIR VALUE OF CASH FLOW HEDGES	4.3	(8.0)
				(ii) INCOME TAXES RELATING TO ITEMS THAT WILL BE
(1.7)	(0.4)	(3.1)		RECLASSIFIED TO PROFIT OR LOSS	(1.1)	3.7
223.9	(506.2)	(340.3)		TOTAL OTHER COMPREHENSIVE INCOME (a+b)	(922.1)	(1,547.7)
5,057.0	5,364.7	4,386.1 G		TOTAL COMPREHENSIVE INCOME (E+F)	19,902.2	18,136.7
964.2	964.2	964.2	H	PAID UP EQUITY SHARE CAPITAL (FACE VALUE- ~10 PER SHARE) EARNINGS PER SHARE (EPS)	964.2	964.2
50.12	60.89	49.02	I	BASIC/ DILUTED EPS (~)	215.98	204.16
				ADDmONAL INFORMATION:
6,836.1	8,068.7	6,140.3		PROFIT FROM OPERATIONS [C - A(ii) + B(v)+B(x)+B(xi))	28,775.4	25,940.4

*Refer note on first time adoption of Ind AS 116 Leases.

STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2020

	PARTICULARS	As at 31.12.2020	(? Million) Asat 31.12.2019 (Restated)*
A	ASSETS	{Audited}	(Audited}
1	NON-CURRENT ASSETS
	(a) PROPERTY, PLANT & EQUIPMENT	19,680.0
	(b) CAPITAL WORK IN-PROGRESS	6,385.8	21,088.1
	(c) RIGHT OF USE ASSETS		1,433.0
	(d) FINANCIAL ASSETS	2,114.1	2,326.4
	(i) INVESTMENTS	7,408.3	7,436.0
	(ii) LOANS	465.5	469.8
	(e) DEFERRED TAX ASSET	199.2
	(f) OTHER NON-CURRENT ASSETS	893.6	804.4
	Sub-total - NON-CURRENT ASSETS	37,146.5	33,557.7
2	CURRENT ASSETS
	(a) INVENTORIES	14,164.8	12,830.7
	(b) FINANCIAL ASSETS
	(i) INVESTMENTS	7,229.4	10,074.5
	(ii) TRADE RECEIVABLES	1,649.3	1,243.3
	(iii) CASH AND CASH EQUIVALENTS	17,548.0	12,931.6
	(iv) BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS	150.7	148.9
	(v) LOANS	132.2	124.6
	(vi) OTHER FINANCIAL ASSETS	589.6	557.9
	(c) CURRENT TAX ASSETS (NET)	-
	(d) OTHER CURRENT ASSETS	386.8	260.2
	Sub-total - CURRENT ASSETS	41,850.8	38,171.7
	TOTAL- ASSETS	78,997.3	71,729.4
B	EQUITY AND UABILITIES
	EQUITY
	(a) EQUITY SHARE CAPITAL	964.2	964.2
	(b) OTHER EQUITY
		19,229.2	18,224.5
	Sub-total - EQUITY	20,193.4	19,188.7
	LIABILmES
1	NON-CURRENT LIABILmES
	(a) FINANCIAL LIABILITIES
	(i) BORROWINGS	317.2	531.4
	(ii) LEASE LIABILITIES	657.6	896.0
	(b) PROVISIONS	32,682.7	29,069.1
	(c) DEFERRED TAX LIABILITIES (NET)	-
	(d) OTHER NON-CURRENT LIABILITIES	220.9
	Sub- total - NON-CURRENT LIABILITIES	33,878.4
2	CURRENT LIABILITIES
	(a) FINANCIAL LIABILmES
	(i) BORROWINGS	31.2
	(ii) TRADE PAYABLES
	TOTAL OUTSTANDING DUES OF MICRO ENTERPRISES AND SMALL ENTERPRISES	937.6
	TOTAL OUTSTANDING DUES OF CREDITORS OTHER THAN MICRO ENTERPRISES AND SMALL	14,228.2
	ENTERPRISES		134.4 30,635.2 340.2 14,575.1
	(iii) LEASE UABILITES	468.9	462.0
	(iv) PAYABLES FOR CAPITAL EXPENDITURE TOTAL OUTSTANDING DUES OF MICRO ENTERPRISES AND SMALL ENTERPRISES	202.3
	TOTAL OUTSTANDING DUES OF CREDITORS OTHER THAN MICRO ENTERPRISES AND SMALL	2,722.0	888.5
	ENTERPRISES
	(v) OTHER FINANCIAL LIABILITIES	3,687.6	3,426.3
	(b) PROVISIONS	1,059.6	854.6
	(c) CURRENT TAX LIABILITIES (NET)	98.0	19.2
	(d) OTHER CURRENT LIABILmES Sub-total - CURRENT LIABILITIES	1,490.1 24,925.5	1,339.6 21,905.5

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

	PARTICULARS	As at 31.12.2020	Cf Million Asat 31.12.2019 <restated}< th=""></restated}<>
		(Audited)	(Audited)
A	CASH FLOWS FROM OPERATING ACTMTIES
	PROFIT BEFORE TAX	28,127.9	26,734.9
	ADJUSTMENTS FOR:
	DEPRECIATION AND AMORTISATION	3,703.8	3,701.5
	DEFICIT/ (SURPLUS) ON PROPERTY, PLANT AND EQUIPMENT SOLD/SCRAPPED/WRITTEN OFF (NET)	(49.0)	(15.6)
	OTHER INCOME	(1,458.5)	(2,468.8)
	INTEREST ON LEASE LIABILmES	180.4	16.9
	INTEREST ON BANK OVERDRAFT AND OTHERS	8S.0	92.9
	ALLOWANCE FOR I MPAIRMENT ON FINANCIAL ASSETS	6.0	18.3
	UNREALISED EXCHANGE DIFFERENCES	12.6	(31.1)
	OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES	30,608.2	28,049.0
	ADJUSTMENTS FOR WORKING CAPITAL CHANGES:
	DECREASE/(INCREASE) IN TRADE RECEIVABLES	(416.0)	(0.4)
	DECREASE/(INCREASE) IN INVENTORIES	(1,334.1)	(3,175.2)
	DECREASE/(INCREASE) IN LOANS, OTHER FINANCIAL ASSETS & OTHER ASSETS	(109.7)	(66.9)
	INCREASE/ (DECREASE) IN TRADE PAYABLE	225.6	2,533.3
	INCREASE/ (DECREASE) IN OTHER FINANCIAL LIABILmES & OTHER LIABILmES	412.0	676.0
	INCREASE/ (DECREASE) IN PROVISION FOR CONTINGENCIES	114.3	248.8
	INCREASE/(DECREASE) IN PROVISION FOR EMPLOYEE BENEFITS	2,073.4	1,416.4
	CASH GENERATED FROM OPERATIONS	31,573.7	29,681.0
	INCOME TAXES PAID (NET OF REFUNDS)	(7,028.9)	(6,728.5)
	NET CASH GENERATED FROM OPERATING ACTMTIES	24,544.8	22,9S2.S
B	CASH FLOWS FROM INVESTING ACTIVITIES
	PURCHASE OF PROPERTY, PLANT AND EQUIPMENT	(4,783.6)	(1,545.2)
	SALE OF PROPERTY, PLANT AND EQUIPMENT	42.4	23.2
	PURCHASE OF TAX-FREE LONG-TERM BONDS AND T-BI LLS	-	(158.6)
	DECREASE/ (INCREASE) IN LOANS TO EMPLOYEES	29.1	1.2
	INCOME FROM MUTUAL FUNDS	20.4	129.2
	LOANS GIVEN TO RELATED PARTIES	(350.0)	(150.0)
	LOANS REPAID BY RELATED PARTIES INTEREST RECEIVED ON BANK DEPOSITS, INVESTMENTS, TAX FREE BONDS, EMPLOYEE LOANS	350.0	150.0
	ETC.	1,477.1	2,380.1
	NET CASH GENERATED FROM I NVESTING ACTMTIES	(3,214.6)	829.9
C	CASH FLOWS FROM FINANCING ACTMTI ES
	INCREASE IN DEFERRED VAT LIABILmES UNDER STATE GOVERNMENT SCHEMES	30.8	180.0
	INTEREST ON BANK OVERDRAFT AND OTHERS	(5.4)	(16.9)
	INTEREST ON LEASE LIABILITIES	(85.0)	(92.9)
	PAYMENT OF LEASE LIABILITIES	(601.8)	(522.9)
	DIVIDENDS	(18,897.5)	(29,503.2)
	DIVIDEND DISTRIBlJTION TAX	-	(6,059.4)
	NET CASH USED IN FINANCING ACTIVITIES	(19,558.9)	(36,015.3)
	NET INCREASE IN CASH AND CASH EQUIVALENTS (A+ B+C)	1,771.3	(12,232.9)
	CASH AND CASH EQUIVALENTS	12,931.6	15,987.7
	CURRENT INVESTMENTS	10,074.5	19,251.3
	TOTAL CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (AS PER IND AS 7)	23,006.1	35,239.0
	CASH AND CASH EQUIVALENTS	17,548.0	12,931.6
	CURRENT INVESTMENTS	7,229.4	10,074.5
	TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (AS PER IND AS 7) NET INCREASE/ (DECREASE) IN CASH AND CASH EQUIVALENTS	24,777.4 1,771.3	23,006.1 (12,232.9)

¹* Refer note on First time adoption of Ind AS 116 Leases.

Notes:

Financial results have been presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Ind-AS and Schedule III (Division II) to the Companies Act, 2013.

For better understanding of the financial performance, the Company has chosen to present Profit from Operations as an additional information in the Statement of Profit and Loss. Profit from Operations is derived from Profit before Tax less Other Income and adding back Finance Costs (Including Interest Cost on Employee Benefit Plans), Net Provision For Contingencies (Others) and Corporate Social Responsibility Expense.

First time adoption of Ind AS 116 Leases

The Company has adopted Ind AS 116 Leases w.e.f. 1 January 2020 with a transition date of 1 January 2019, replacing the existing standard Ind AS 17 Leases. The Company adopted this standard using the full retrospective method, accordingly previous periods figures have been restated to make them comparable.

Reconciliation of Profit reported for previous periods to Restated Profit after adoption of Ind AS 116 Leases is as under:

		~ MIiiion)
PARTICULARS	THREE MONTHS ENDED	Accounting Year ended 31.12.2019
	31.12.2019
Profit for the period as reported in accordance with Ind AS 17	4,730.2	19,695.5
a) Recognition of depreciation on ROU assets	(139.9)	(537.9)
b) Recognition of finance cost on lease liabilities	(27.4)	(92.9)
c) De-recognition of operating lease expenses	162.2	615.8
Tax Impact on above	1.3	3.9
Restated Profit for the period in accordance with Ind AS 116	4,726.4	19,684.4
Restated Profit from Operations in accordance with Ind AS 116	6,140.3	25,940.4

Reconciliation of Equity reported for previous periods to Restated Equity after adoption of Ind AS 116 Leases is as under:

PARTICULARS	Accounting Year ended 31.12.2019
Equity reported in accordance with Ind AS 17	19,322.6
a) Recognition of ROU assets (excluding reclassifications from Property, Plant & Equipment)	1,147.4
b) Recognition of short term and long-term lease liabilities	(1,326.4}
Tax Impact on above	45.1
Restated Equity in accordance with Ind AS 116	19,188.7

Effect on the Statement of cash Flows for the year ended 31 December 2019 is as under:

			~ Million)
PARTICULARS	Pre- implementation of Ind AS 116	Implementation Adjustments	Post implementation of Ind AS 116
Profit Before Tax	26,749.9	( 15.0)	26,734.9
Depreciation and Amortisation	3,163.6	537.9	3,701.5
Interest on lease liabilities	-	92.9	92.9
Others	(7,576.8)	-	(7,576.8)
Net cash generated from operating activities	22,336.7	615.8	22,952.5
Net cash generated from investing activities	829.9	-	829.9
Interest on lease liabilities	-	(92.9)	(92.9)
Principal payment on lease liabilities	-	(522.9)	(522.9)
Others	(35,399.5)	-	(35,399.5)
Net cash used in financing activities	(35,399.5)	(615.8)	(36,015.3)
Net decrease in cash and cash equivalents	(12,232.9)	-	(12,232.9)
Total cash and cash equivalents at the beginning of the year	35,239.0	-	35,239.0
Total cash and cash equivalents at the end of the year	23,006.1	-	23,006.1

Impact of restatement on Earnings per share (EPS) for the year ended 31 December 2019 is not significant.

Comparisons with reference to full year ended 31.12.2019 unless otherwise specified:

• 1. Total Sales and Domestic Sales for the year increased by 8.1% and 8.5% respectively. Domestic Sales growth is largely driven by volume & mix and is broad based. Demand in Out of Home channel was impacted throughout the year due to COVID. Export Sales growth at 1.4% impacted by lower coffee exports.
• 1. Total Sales and Domestic Sales for the quarter increased by 9.2% and 10.1 % respectively. Domestic Sales growth is broad based largely driven by volume & mix. Demand in Out of Home channel further improved in the quarter but continues to be impacted by COVID. Export Sales were lower by 7.7% due to lower coffee exports.
• 1. Other Income decreased due to lower yields and average liquidities. Other Income for the quarter was impacted by lower yields.
• 1. Cost of materials consumed [B(i)+B(ii)+B(iii)] for the quarter has decreased due to lower commodity prices, particularly milk and its derivatives.
• 1. Employee Benefits Expense for the quarter and year increased mainly due to higher incentives in view of COVID. The current quarter was further impacted due to finalisation of long-term compensation arrangements for most factory employees in line with industry practice.
• 1. Other Expenses are positively influenced by reduction in overheads due to restricted operations.
• 1. Net Provision for Contingencies is mainly for matters related to litigations/related disputes and other uncertainties requiring management judgement. Provisions for Contingencies/Contingent Liabilities are recognised/disclosed after a careful evaluation of the facts and legal aspects of the matters involved, in line with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets and Ind AS 12 Income Taxes.
• 1. Re-Measurement of Retiral Defined Benefit Plans represents actuarial gains/losses on defined benefit plans.
• 1. The Board of Directors have recommended a final dividend of< 65.00 per equity share amounting to~ 6,267.0 million for the year 2020. The total dividend for 2020 aggregates to ~ 200.00 per equity share which includes one interim dividend of< 135.00 per equity share paid on 20 November 2020. The final dividend is subject to approval by the shareholders at the ensuing Annual General Meeting of the Company and therefore has not been recognised as a liability as at the balance sheet date in line with Ind AS 10 on "Events after the Reporting Period".
• 1. Based on the guiding principles given in Ind AS 108 Operating Segments, the Company's business activity falls within a single operating segment, namely Food. The disclosure requirements of Ind AS 108 are not applicable.
• 1. Legal proceedings in the MAGGI Noodles case are currently before the Honourable Supreme Court. The issue has been adequately explained in the Annual Report 2015 and in the press releases in 2015 available on the Company's website www.nestle.in.
• 1. Figures of last quarter are the balancing figures between audited figures in respect of the full year and the un-audited published figures up to the period ended 30 September.

BS R & Co. LLP

Chartered Accountants

Building No. 10. 12th Floor. Tower-B DLF Cyber City, Phase - II Gurugram - 122 002. India

Telephone: +91124 719 1000 Fax: +91124 235 8613

INDEPENDENT AUDITOR'S REPORT

TO THE BOARD OF DIRECTORS OF NESTLE INDIA LIMITED

Report on the audit of the Annual Financial Results

Opinion

We have audited the accompanying annua l financial results ofNestle India Limited (hereinafter referred to as the · 'Company") for the year ended 31 December 2020, attached herewith, being submitted by the Company pursuant to the requirement of Regulation JJ of the SEBI (Listing Obligations and Disclostu-e Requirements) Regulations, 2015. as amended ('Listing Regulations·).

ln our opinion and to the best of our infonnation and according to the explanations given to us, the aforesaid annual financial results:

• a. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• b. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards, and other accounting principles generally accepted in India, of the net profit and other comprehensive income and other financial information for the year ended 31 December 2020.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing ("SAs'') specified under section 143(10) of the Companies Act, 2013 ("the Act"). Our responsibilities under those SAs are further described in the Auditor's Responsibilities.for the Audit of the Annual Financial Results section of our report. We are independent of the Company, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our opinion on the annual financial results.

Management's and Board of Directors' Responsibilities for the Annual Financial Results

These annual financial results have been prepared on the basis of the annual financial statements. The Company·s Management and the Board of Directors are responsible for the preparation and presentation of these annual financial results that give a true and fair view of the net profit/ loss and other comprehensive income and other financial infom1ation in accordance with the recognition and measurement principles laid down in Indian Accounting Standards prescribed under Section 133 of the

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BS R & Co. LLP

• Evaluate the overall presentation, structure and content of the annual financial results, including the disclosures, and whether the annual financial results represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence. and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

The annual financial results include the results for the quarter ended 31 December 2020 being the balancing figure between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year which were subject to limited review by us.

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Place: Delhi Date: 16 February 2021

Nestle India Limited

Website: www.nesUe.tn

(CIN: L 15202DL 1959PLC003786) Nestle House Jacaranda Marg 'M' Block, DLF City, PHASE - II GURUGRAM -122002, HARYANA Phone 0124 • 3940000 E•mail: corporate@IN.nestle.com

FEBRUARY 16, 2021

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Fort, Mumbai - 400 001

Scrip Code - 500790

Subject Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Declaration in respect of Audit Reports with unmodified opinion for the Financial Year ended on 31 December 2020

Dear Sir,

Pursuant to SEBI Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016; this is hereby declared that the Auditors of the Company, Mis. BS R & Co. LLP, Chartered Accountants, has issued the Audit Reports for Financial Statements as prepared under the Companies Act, 2013 and Financial Results as prepared under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the Financial Year ended on 31 December 2020 with unmodified opinion.

Nestle India Limited

David McDaniel Executive Director - Finance & Control and CFO

Nestle India Limited

(GIN: L 15202DL 1959PLC003786) Nestle House Jacaranda Marg 'M'Block, DLF City, Phase - II Gurugram - 122002, Haryana Phone 0124 - 3940000 E-mail: investor@IN.neslle.com Website www.nestle.in

Phiroze Jeejeebhoy Towers

4E/2 Jhandewalan Extension New Delhi - 110 055

Dalal Street, Fort, Mumbai - 400 001

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BM: PKR: 06:21	16.02.2021

• 1. National Securities Depository Limited Trade World, 4th Floor Kamala Mills Compound Senapati Bapat Marg, Lower Parel, Mumbai - 400 013
• 1. Central Depository Services (India) Limited Phiroze Jeejeebhoy Towers 16th Floor, Dalal Street Mumbai - 400 001 ISIN: INE239A01016

BSE Scrip Code: 500790

1. Alan kit Assignments Ltd.

Subject: Annual Closing and dates for determining entitlement of the shareholders to the final dividend for the year 2020.

Dear Sir,

Furnished below is the Book Closure details for the purpose of Annual Closing and dates of determining entitlement of the shareholders to final dividend for the year 2020:

Name of the Company Nestle India Limited

SECURITY CODE	TYPE OF SECURITY AND PAID UP VALUE	BOOK CLOSURE	PURPOSE
500 790	EQUITY SHARES Rs. 964,1 57, 160/- (Rs. 10/- per equity share)	From 1st May 2021 to 7th May 2021 ( both days inclusive)	Annual Closing for determining and entitlement of the shareholders to the final dividend for the year 2020.

Thanking you,

Yours truly,

Nw ~IMITED

B. MURLI / GENERAL COUNSEL & COMPANY SECRET ARY

Press Release

Nestlé House, 16th February 2021

Nestlé India Shows Resilience Despite COVID-19 Pandemic, Delivers Robust Performance

Nestlé India - Full Year, 2020:

• Total Sales of INR 13,290 Crore
• Domestic Sales Growth at 8.5%
• Profit from Operations at 21.7% of Sales
• Net Profit of INR 2,082 Crore
• CSR Spend INR 46.42 Crore
• Enables contribution to exchequer of INR 3,531 Crore
• Net Cash generated from Operating Activities at INR 2,454 Crore
• Earnings Per Share of INR 215.98
• Final Dividend recommended INR 65.00 per equity share
• Total Dividend including final dividend INR 200.00 per equity share

Key Highlights:

• Strong domestic sales growth, broad based and largely driven by volume and mix.
• Nearly two thirds of our key products, boosted by in home consumption, posted double digit growth.
• Innovation and Renovation pipeline continues to be a thrust area.
• Demand in Out of Home channels continues to improve.
• E-Commerce grew by 111% and now contributes 3.7% of domestic sales.

The Board of Directors of Nestlé India today approved the results for the fourth quarter and full year 2020. Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "The year gone by has truly demonstrated the unwavering commitment to stay the course on our purpose and values. Our employees, partners, suppliers,stakeholdersindeed our entire eco system went beyond the call of duty and made extraordinary efforts in an exceptionally challenging year. I will always remain grateful for their efforts and sacrifices in these unusual times and our results are tribute to their determination.

Under these circumstances, I am pleased to share that we delivered strong domestic sales growth. Nearly two thirds of our key brands like MAGGI Noodles, KITKAT and NESCAFÉ Classic posted double digit growth last year. This was backed by a step up in marketing spends, especially in the last quarter. Our innovation and renovation pipeline continued to be a thrust area across categories like Foods, Breakfast Cereals and Nestlé Health Sciences. E-commerce continued to grow, surge ahead and now contributes 3.7% of domestic sales. We embraced the consumers digital journey with numerous innovative initiatives across brands and launched Ask Nestlé in Hindi.

As a Company, we built resilience in the milk suppliers and small businesses who deal with us by ensuring timely payments and in some cases buying beyond our needs. We had a number of initiatives, for the community, public health and the youth to help combat the COVID-19 pandemic.

After initial challenges due to the pandemic, the demand in Out of Home channels has continued to improve, sequentially over quarters and we remain confident of its recovery. Looking forward, protecting and preserving our planet is woven into the purpose of our organization, and at Nestlé India we have been accelerating our actions towards reducing greenhouse gas emissions across our value chain. Our ambition is to achieve 100% recyclable or reusable packaging by 2025. We are working towards shaping a waste-free future and driving new behaviour."

Highlights for the quarter and year ended 31 December 2020:

• 1. Total Sales and Domestic Sales for the year increased by 8.1% and 8.5% respectively. Domestic Sales growth is largely driven by volume & mix and is broad based. Demand in Out of Home channel was impacted throughout the year due to COVID. Export Sales growth at 1.4% impacted by lower coffee exports.
• 1. Total Sales and Domestic Sales for the quarter increased by 9.2% and 10.1% respectively. Domestic Sales growth is broad based largely driven by volume & mix. Demand in Out of Home channel further improved in the quarter but continues to be impacted by COVID. Export Sales were lower by 7.7% due to lower coffee exports.

Dividend:

The Board of Directors have recommended a final dividend of INR 65.00 per equity share amounting to INR 6,267.0 million for the year 2020. The total dividend for 2020 aggregates to INR 200.00 per equity share which includes one interim dividend of INR 135.00 per equity share paid on 20 November 2020. The final dividend is subject to approval by the shareholders at the ensuing Annual General Meeting of the Company and therefore has not been recognised as a liability as at the balance sheet date in line with Ind AS 10 on "Events after the Reporting Period".

For more information:

Ambereen Ali Shah, Nestlé India, +91 9717022731

Shashank Kumar Nair, Nestlé India, + 91 9818077775

Nestlé India Limited, Head Office: Nestlé House, Jacaranda Marg, M Block, DLF City Phase – II, Gurugram 122 002 (Haryana) Phone: +91-124-3321824, Fax: +91-124-2389381

Registered Office: 100 / 101, World Trade Centre, Barakhamba Lane, New Delhi – 110001

Corporate Identity Number: L15202DL1959PLC003786

Email ID: ambereen.shah@in.nestle.com / shashank.nair@in.nestle.com (with a CC to media.india@in.nestle.com);

investor@in.nestle.com

Website: www.nestle.in