Marching Together - Nestlé

1 Nestl India Limited | Annual Report - 2020 Marching Together #AsAForceForGoodMs. Roopa KudvaNon Executive DirectorNestl India Limited | Annual Report - 2020 The Board of Directors ofNestl India LimitedMs. Rama BijapurkarNon Executive DirectorMr. R. V. KanoriaNon Executive DirectorMr. David S. McDanielExecutive Director Finance& Control and CFODr. Swati A. PiramalNon Executive DirectorMr. Matthias C. LohnerExecutive Director - TechnicalMr. P. R. RameshNon Executive DirectorMr. B. MurliGeneral Counsel andCompany SecretaryMr.

2 Suresh NarayananChairman & Managing Director'Physically Distant But Together On Purpose'MarchingTogether92. Annexure 1: Report on Corporate Governance107. Annexure 2: Annual Report on (CSR) Activities 115. Annexure 3: Business Responsibility Report124. Annexure 4: Secretarial Audit Report127. Annexure 5: Report on Conservation of Energy Annexure 6: Information Regarding Employees and Related DisclosuresAnnexures to the Board s ReportIndex01. Message to Shareholders03. Purpose06. Planet09. Partnerships12.

3 People15. Performance18. Corporate Information19. 10 - Year Financial Highlights20. Board's Report36. Auditor s Report43. Annual Accounts131. Dividend Distribution PolicySuresh NarayananChairman & Managing Director2020 has redefined the way in which we all think and live. The magnitude and volatility of the COVID-19 pandemic has shaped the contours of a New Normal where the 5Ps - PURPOSE, PLANET, PARTNERSHIPS, PEOPLE and PERFORMANCE will form the cornerstone of successful organisations.

4 Our PURPOSE has helped us stay strong despite challenges in the external environment Your Company is strongly committed to its global Purpose We unlock the power of food to enhance quality of life for every one, today and for generations to come . We committed ourselves to the nation s fight against COVID-19 by giving every possible support to the communities, authorities and frontline workers, touching over Million people across the nation. We supported feeding programs and distribution of essential groceries for vulnerable communities by partnering with leading NGOs and state authorities.

5 We have also aided the purchase of medical equipments. Our employees had voluntarily donated a part of their salary, which has been topped up with an equivalent contribution from Nestl India, and given to the Indian Red Cross Society, for relief efforts. We contributed ready-to-drink beverages and confectionery to the frontline warriors across the country, as a recognition of their efforts for keeping the nation safe. In collaboration with NGO partners, we also brought about sustained innovations in our ongoing community initiatives to adapt to the rapidly evolving external are committed to the PLANET through the sustainable use of resourcesClimate change is one of the biggest challenges currently facing mankind.

6 The next decade will see the introduction of products with lower carbon footprint, and a move to sustainable packaging. The power to accelerate this change will require a multi-stakeholder approach, bringing industry, government, multilateral agencies and local community to collaborate and monitor progress, laying the foundation for a better world. Your Company has been accelerating its actions to reach net zero greenhouse emissions by 2050 while ensuring high levels of productivity.

7 We have strengthened our PARTNERSHIPS during these unprecedented times Your Company recognized the difficulties the suppliers are going through, and we have ensured continuity in timely payments which is inherent to our values. We ensured that every drop of milk which was offered to us was bought to ensure that our farmers do not lose out. We also announced the launch of MAGGI DESH KE LIYE 2 MINUTE Ek Chhoti Si Koshish , a set of year-long initiatives, across the country to contribute towards societal needs.

8 Under the aegis of Nestl s global youth initiative, Nestl Needs YOUth , we launched the Nestl Entrepreneurship for YOUth platform to nurture budding entrepreneurs and create job opportunities through a kiosk business model, helping the youth of the country cope with these challenging times. We have witnessed ordinary PEOPLE do extraordinary acts A defining moment for us in 2020 has been witnessing ordinary people do extraordinary acts. Mustafa Hossain, our dedicated distributor s salesman in Gangtok, walked 14 kilometers each day for 3 days through the mountainous terrain to get necessary permissions from the local authorities so that much needed products of Your Company were available to the consumers during lockdown.

9 Similarly, our sales executive M Balaji, went beyond his call of duty, by supporting our distributor, Ramakrishnan in Hosur. Since Ramakrishnan s team could not report to work because of the lockdown, M Balaji, took orders, loaded the stocks in Ramakrishnan s car, and Together they delivered the products to the supermarkets and grocery stores, working tirelessly. Swapan Kumar Roy, is another one of our distributors in Kolkata, who serviced 300 retailers alone with the help of just one staff member, and personally delivered stocks.

10 We delivered a strong PERFORMANCE and are committed to Make in India and Made in India Your Company is proud of its 108-year long association with the nation and as a vindication of this confidence and trust, we plan to invest ` 26 Billion over the next three to four years. Further, resonating with consumer needs during evolving times, we introduced a range of product and marketing innovations in line with new ahead in the new normalThe three attributes that will shape successful organisations in the days to come are resilience, authenticity and compassion.