Nestle Annual Report

Annual Report 2012

Nutrition to enhance the quality of life

Annual Report 2012

Table of contents

2

Letter to our shareholders

38

8 8 10 11

Corporate Governance and Compliance Corporate Governance Board of Directors of Nestlé S.A. Compliance Executive Board of Nestlé S.A. The Nestlé Roadmap to Good Food, Good Life Four competitive advantages Four growth drivers Four operational pillars 2012 Highlights Global Nutrition, Health and Wellness Consumer engagement Unmatched geographic presence Building for the future

39 40 41 52 54 55

Financial review 2012 Business review Leading positions in dynamic categories Overview Principal key figures (illustrative) in CHF, USD, EUR Principal risks and uncertainties Geographical data: factories Shareholder information

14

16 20 24 28 32

Accompanying reports

Nestlé in society Creating Shared Value and meeting our commitments 2012

Nestlé in society

Corporate Governance Report 2012 2012 Financial Statements

Nestlé – Corporate Governance Report 2012 | 2012 Financial Statements

Nestlé in society

Creating Shared Value and meeting our commitments 2012

Corporate Governance Report 2012

including Compensation Report 2012

2012 Financial Statements

The brands in italics are registered trademarks of the Nestlé Group.

Key figures (consolidated)

In millions of CHF (except per share data) 2011 Sales Trading operating profit as % of sales Profit for the year attributable to shareholders of the parent (Net profit) as % of sales Capital expenditure as % of sales Equity attributable to shareholders of the parent before proposed appropriation of profit of Nestlé S.A. Market capitalisation, end December Operating cash flow (a) Free cash flow (b) Net financial debt Ratio of net financial debt to equity (gearing) Per share Total basic earnings per share Underlying (c) Dividend as proposed by the Board of Directors of Nestlé S.A. CHF CHF CHF 2.97 3.08 1.95 3.33 3.37 2.05 83 642 12 538 15.0%...