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Corporate Profile

Nestl Pakistan Ltd is a subsidiary of Nestl S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took over management in 1992. For ten years in a row, the company has won a place among the top 25 companies of the Karachi Stock Exchange. Headquartered in Lahore, the Company operates four production facilities. Two of its factories in Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in Karachi produce bottled water. Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers whenever, wherever and however. Nestl Pakistan operates in many ways but people, products and brands are the main flag bearers of the Companys image, and we continue to enhance the quality of life of people. Nestl Pakistan now operates the biggest milk collection operation in Pakistan, Currently, Nestl Pakistan collects milk from an estimated 190,000 farmers spread over 145,000 sq Km's in the province of Punjab and Sindh. Our Vision Nestls global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestl Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan. In particular, we envision to;

Lead a dynamic, passionate and professional workforce proud of our heritage and positive about the future. Meet the nutrition needs of consumers of all ages from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. Deliver shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan. Our Mission To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our CSV activities.

Our Ambition To be the leading Nutrition, Health and Wellness Company in Pakistan.

Board of Directors

Mr. Syed Yawar Ali Chairman 308-Upper Mall, Lahore, Pakistan

Mr. Magdi BATATO Managing Director 308-Upper Mall, Lahore, Pakistan

Mr. John. M. Davis Director 308-Upper Mall, Lahore, Pakistan

Mr. Naveed Ahmad Khan Director 308-Upper Mall, Lahore, Pakistan

Mr. Pierre Schaufelberger Director Avenue Nestl 55 1800 Vevey Switzerland

Mr. Syed Babar Ali Director Packages Limited, Shahrah-e-Roomi, Lahore, Pakistan

Mr. Syed Hyder Ali Director Packages Limited, Shahrah-e-Roomi, Lahore, Pakistan

Mr. Faal Krichane 2, Chemin de Paudille CH 1803 Chardonne - Switzerland

Mr. Osman Khalid Waheed

Ferozsons Laboratories Limited, 5 km, Sunder Raiwind Road, Raiwind, Lahore, Pakistan

Supply Chain
Nestl Pakistan's supply chain makes sure that Nestl products are available, no matter where you are in Pakistan. We integrate processes from the farm to markets, and ensure products are delivered to you at the right time, the right cost and in the right quantities. In the first quarter of 2006 alone, we delivered an astonishing 136 million kg of Nestl products in Pakistan. Supply chain was established as a separate department in 2001. Since then, we've achieved a number of milestones, including a cold-chain in 2002, centralised demand and supply planning in 2003, and implementation of GLOBE in 2005. We were selected for a Best in Class repository study, and three of our best practices were subsequently incorporated into the Best Practices Library. Our mission is to: Optimise and consolidate resources and processes for a low- cost but efficient execution Develop and manage simplified and effective supply network to achieve a high level of service Create a continuous improvement culture driven by performance measures and reward

Associated Companies
Sr.No. Name of Associated Company Weblink 1 Nestl S.A. www.nestle.com 2 H. Y. Enterprises 3 Wazir Ali Industries Ltd. www.wazirali.com.pk 4 I.G.I. Insurance Ltd. www.igiinsurenace.com.pk 5 Alpha Insurance Co. Ltd. www.alphainsurance.com.pk 6 Safe Mix Concrete Products (Pvt.) Ltd. www.safemixlimited.com 7 Pakistan Dairy Association. www.pddc.com.pk 8 National Fertilizer Corporation of Pakistan Ltd. www.nfc.gov.pk 9 Dairy & Rural Development Foundation 10 India -Pakistan Chamber of Commerce & Industry 11 Ali Institute of Education (I.T.E.I) www.aie.edu.pk 12 Sanofi-Aventis Pakistan Ltd. www.sanofi-aventis.com.pk 13 Babar Ali Foundation www.baf.org.pk 14 Coca-Cola Beverages (Pak) Ltd. www.ccbt.com.pk 15 IGI Investment Bank Ltd. www.igiinvestment.com.pk 16 Acumen Fund www.acumenfund.org 17 National Management Foundation 18 Siemens Pakistan Engineering Co. Ltd. www.siemens.com.pk 19 Gurmani Foundation 20 Tetra Pak Pakistan Ltd. www.tetrapak.com 21 Tri-Pak Films Ltd. www.tripack.com.pk 22 Industrial Technical & Educational Institute 23 Syed Maratib Ali Religious & Charitable Trust Society 24 Bayer CropScience Pakistan (Pvt.) Ltd. www.bayercropscience.com.pk 25 Lahore University of Management Sciences (LUMS) www.lums.edu.pk 26 Packages Limited www.packages.com.pk 27 International Steel Limited www.isl.com.pk 28 Bulleh Shah Paper Mills (Pvt.) Ltd. 29 WWF-Pakistan www.wwfpak.org 30 Ali Institute of Education 31 Pacakges Lanka Pvt. Ltd., Sri Lanka 32 International Chamber of Commerce (ICC) Pakistan www.iccpakistan.com.pk 33 Ferozsons Laboratories Limited www.ferozsons-labs.com 34 BF Biosciences Limited 35 KFW Factors (Pvt.) Limited 36 Murree Brewery Company Limited www.murreebrewery.com 37 DGS (Pvt.) Limited 38 Pakistan Pharma Forum (A section 42 company, limited by guarantee) 39 Overseas Investors Chamber of Commerce and Industries www.oicci.org

Our Factories Our products are manufactured in five facilities scattered around the country, from Islamabad in the north, to Karachi in the south. Two state-of-the-art multipurpose factories are located in the agricultural heartland of the Punjab, and the remaining three are dedicated to producing our trusted brands of bottled water. As citizens of Pakistan, we consider it our duty to make sure that our manufacturing processes are clean, hygienic and safe. We are constantly working to reduce emissions at our factories, reducing and treating wastewater, and making our packaging environmentally friendly.

Regular audits have confirmed that our factories' environmental management meets the Nestl international standard. As is the Nestl policy around the world, we care for our people. We uphold the principles of the UN Global Compact and encourage women to participate.

Sheikhupura Factory At the very heart of the Punjab's major milk district stands our Sheikhupura factory, a vast state-of-the-art operation that produces many of our most popular products such as MILKPAK UHT milk, low-fat highcalcium NESVITA products, NESTL PURE LIFE water, CERELAC and yogurt. The factory commenced operations as part of Milkpak Ltd in 1981. At the time it produced only UHT milk, but by 1988 had expanded to produce butter, cream and ghee, as well as fruit drinks. In 1988, it became part of the joint Milkpak venture, and, soon after, NIDO milk powder started being produced here. As the needs of Pakistani consumers grew, we added the capacity to manufacture new products. In 1998 we started supplying dairy mixes to McDonald's. A plant to produce the popular Nestl NESTL PURE LIFE bottled water was also commissioned. In recent years, the plant's capacity has been enhanced to

produce fruit yoghurt, tea whitener, cream and raita, as well as low-fat, high-calcium dairy products, sold under theNESVITA brand.

Kabirwala Factory In 1990, Milkpak acquired the Kabirwala factory, located in Khanewal district of the Punjab, as a subsidiary. By 1997 it was a fully owned unit of Nestl Pakistan Ltd. Soon after it was acquired, we began upgrading its capacity. In 1992 we added a MAGGI Noodles plant was added and 1996 saw an additional of a milk powder. Over the years, the Kabirwala factory was constantly enhanced. EVERYDAY tea whitening powder was introduced in 2002 and revolutionised tea and coffee drinking in homes and offices around the country. In 2005, the factory continued to make notable achievements. 2006 has seen the commencement of Kabirwala Extension Project that would be completed in April 2007 at a cost of about Rs. 4.0 billion. The project has seen expansion of milk processing capacity to triple its current size, both for powder and liquid. The factory Is also currently producing Nido (started in 1998) and Milkpak UHT (started in 2006).

Islamabad Factory In 2001 we acquired the AVA water factory in Islamabad. It became a fully owned unit in 2003, and we immediately instituted a programme of major improvement to bring the facility on par with international standards. Over the years, better and more efficient machinery has been introduced. This has helped us speed up production, and provide our consumers with their favourite brands of bottled water in convenient package sizes. We are proud that the Islamabad factory has made efforts to bring Pakistani women into the workforce, by providing a comfortable and enabling work environment. Indeed, we were amongst the first to employ female operators working alongside men in our production department.

Companies offices and Factories

Registered & Corporate Office
Nestl Pakistan Limited 308 Upper Mall, Lahore - 54000, Pakistan. PABX: (042) 111 637 853 Fax: (042) 35789303-4 Email: info@pk.nestle.com Corporate Office Annex: 304, 309 Upper Mall, Lahore, Pakistan.

Factories Sheikhupura
29-Kilometer, Lahore-Sheikhupura Road, Sheikhupura, Punjab, Pakistan. Phone: (056) 3406615-29 Fax: (056) 3406639

10-Kilometer, Khanewal-Kabirwala Road, Khanewal, Pakistan. Phone: (065) 111 637 853 Fax: (065) 2411432

Plot No. 32, Street No. 3, Sector 1-10/3, Industrial Area, Islamabad, Pakistan. Phone: (051) 4445991-3 Fax: (051) 4445997

Plot No. A23, Northwestern, Industrial Zone, Port Qasim, Karachi, Pakistan. Phone: (021) 34720151-4

Regional Sales Offices South Zone Karachi

8th Floor Clifton Diamond, Plot # BC-10, Block-4 Clifton, Karachi.

63-B-D, Chaman Housing Scheme, Opp. Askari Park, Quetta. Phone: 081-2834887, 2821243, 2823946 Fax: 081-2847797

House No. 178, Block C, Unit 2, Latifabad, Hyderabad. Phone: 022-3860403 Fax: 022-3863202

Center Zone Lahore

3-K, Commercial Plaza, Model Town Extension, Lahore. Phone: 042-35916650-2 Fax: 042-35916752

Habib Bank Plaza, 1st Floor Satellite Town, Gujranwala. Phone: 055-3733415, 3733243 Fax: 055-3733379

Ground Floor, Al-Haq Plaza 271-A, Small D Ground, Peoples Colony I, Faisalabad. Phone: 041-8716937, 8555607 Fax: 041-8716823

Al-Syed House, Street No. 2, Iqbal Park, Sabzazar Colony. Bosan Road, Multan. Phone: 061-6212901 , 6512900 Fax: 061-6212901

North Zone Islamabad

Plot No. 395/396, Sector I-9/3, Industrial Area, Islamabad. Phone: 051-4859300, 4859301, 4859302 Fax: 051-4859303

House No. 5/155 Sabir Road, Jhelum Cantt, Jhelum. Phone: 0544-720004 Fax: 0544-629126

42-D Jalala House, Old Jamrud Road, University Town, Pehsawar. Phone: 091-5700859 Fax: 091-5854454

Corporate & Legal

Nestl Pakistan Ltd is a subsidiary of Nestl SA, headquartered in Vevey, Switzerland. We are a standard-bearer of Nestl SA's global performance; listed on the Karachi and Lahore stock exchanges, for the past five years we have been declared one of the top 25 companies on the Karachi Stock Exchange. Headquartered in Lahore, we serve both Pakistan and Afghanistan. Of our four production facilities, two manufacture a wide range of products. The remaining three produce NESTL PURE LIFE.

Corporate Governance Principles

We are dedicated to following the best practices laid down by our parent company, Nestl SA. We have implemented the Corporate Governance Principles established by Nestl SA, covering four core areas:

Rights and responsibilities of shareholders Equitable treatment of shareholders Duties and responsibilities of the board of directors Disclosure and transparency
Corporate Internal Audit

Recognising the need to maintain transparency and verify the application of corporate standards, Nestl Pakistan has established an internal audit department that monitors administrative and operational functions throughout the company. Thanks to its operations, we can be assured that adequate internal controls are in place, management information is reliable, resources are used effectively, and company assets are safeguarded.