FINANCIAL

STATEMENT
ANALYSIS
 HORIZONTAL ANALYSIS OF BALANCE SHEET
Nestle Group
Consolidated balance sheet
December 31

Increase or (decrease)
during 2018
Notes 2018 2017 AMOUNT PERCENT
ASSET

Current assets:

Cash & Cash equivalents 12/16 4 500 7 938 (3 438) (43.31%)

Short-term investments 12 5 801 655 5146 785.65%
Inventories 6 9 125 9 177 (52) (0.57%)
Trade & other receivable 7/12 11 167 12 036 (869) (7.22%)
Prepayments & accrued income 530 573 (43) (7.50%)
Derivative assets 12 183 231 (48) (20.78%)
Current income tax assets 869 917 (48) (5.23%)
Assets held for sale 2 8 828 357 8 471 2 372.83%
Total current assets: 41 003 31 884 9 119 28.6%
 Increase or (decrease)
during 2018
Notes 2018 2017 AMOUNT PERCENT
Non-current assets:

Property,Plant & equipment 8 29 956 30 777 (821) (2.67%)

Goodwill 9 31 702 29 746 1 956 (6.58%)
Intangible assets 9 18 634 20 615 (1 981) (9.61%
Investments in associates and joint ventures 14 10 792 11 628 (836) (7.19%)
Financial assets 12 2 567 6 003 (3436) (57.24%)
Employee benefits assets 10 487 392 95 (0.06%)
Current income tax assets 58 62 (4) (6.45%)
Deferred tax assets 13 1 816 2 103 (287) (13.65%)
Total non-current assets: 96 012 101 326 (5 314) (5.24%)
Total assets: 137 015 133 210 3 805 2.86%
Liabilities & equity:

Current Liabilities:

Financial debt 12 14 694 11 211 3 483 31.07%

Trade & other payables 7/12 17 800 18 864 (1 064) (5.64%)
 Increase or (decrease)
during 2018
Notes 2018 2017 AMOUNT PERCENT

Accruals and deferred income 4 075 4 299 (224) (5.21%)

Provisions 11 780 819 (39) (4.76%)
Derivative Liabilities 12 448 507 (59) (11.64%)
Current income tax liabilities 2 731 2 477 254 10.25%
Liabilities directly associated with 2 2 502 12 2 490 20 750%
assets held for sale
Total current liabilities: 43 030 38 189 4 841 12.68%
Non-current liabilities:

Financial debt 12 25 700 18 566 7 134 38.43%

Employee benefits liabilities 10 5 919 7 111 (1 192) (16.76%)
Provisions 11 1 033 1 147 (114) (9.94%)
Deferred tax liabilities 13 2 540 3 492 (952) (27.26%)
Other payables 12 390 2 476 (2 086) (84.25%)
Total non-current liabilities: 35 582 32 792 2 790 8.51%
Total Liabilities: 78 612 70 981 7 721 10.88%
 Increase or
(decrease) during
2018
Notes 2018 2017 AMOUNT PERCENT
Equity: 17
Share capital 306 311 (5) (1.61%)
Treasury shares (6 948) (4 537) 2 411 53.13%
Translation reserve (20 432) (19 436) 996 5.12%
Other reserves (183) 989 (806) (81.5%)
Retained earnings 84 620 83 629 991 1.18%
Total Equity attributable to 57 363 60 956 (3 593) 5.89%
shareholders of the parent:
Non-Controlling interests 1 040 1 273 (233) (18.3%)
Total Equity: 58 403 62 229 (3 826) (6.15%)
Total Liabilities and Equity: 137 015 133 210 3 805 (2.86%)
 VERTICAL ANALYSIS OF BALANCE SHEET
Nestle Group
Consolidated balance sheet
December 31

2018 2017
Notes Amount Percent Amount Percent
ASSET

Current assets:

Cash & Cash equivalents 12/16 4 500 3.28% 7 938 5.96%

Short-term investments 12 5 801 4.24% 655 0.49%
Inventories 6 9 125 6.66% 9 177 6.89%
Trade & other receivable 7/12 11 167 8.16% 12 036 9.04%
Prepayments & accrued income 530 0.39% 573 0.43%ss

Derivative assets 12 183 0.13% 231 0.17%

Current income tax assets 869 0.63% 917 0.69%
Assets held for sale 2 8 828 6.44% 357 0.27%s
Total current assets: 41 003 29.93% 31 884 23.94%
 2018 2017
Notes Amount Percent Amount Percent
Non-current assets:

Property,Plant & equipment 8 29 956 21.86% 30 777 23.10%

Goodwill 9 31 702 23.14% 29 746 22.33%
Intangible assets 9 18 634 13.60% 20 615 15.48%
Investments in associates and joint 14 10 792 7.88% 11 628 8.73%
ventures
Financial assets 12 2 567 1.87% 6 003 4.50%
Employee benefits assets 10 487 0.35% 392 0.29%
Current income tax assets 58 0.04% 62 0.04%
Deferred tax assets 13 1 816 1,.33% 2 103 1.58%
Total non-current assets: 96 012 70.07% 101 326 76.06%
Total assets: 137 015 100% 133 210 100%
Liabilities & equity:

Current Liabilities:

Financial debt 12 14 694 10.72% 11 211 8.42%

Trade & other payables 7/12 17 800 12.99% 18 864 14.16%
 2018 2017
Notes Amount Percent Amount Percent

Accruals and deferred income 4 075 2.97% 4 299 3.23%

Provisions 11 780 0.57% 819 0.61%

Derivative Liabilities 12 448 0.33% 507 0.3%

Current income tax liabilities 2 731 1.99% 2 477 1.86%

Liabilities directly associated with 2 2 502 1.83% 12 0.09%s

assets held for sale
Total current liabilities: 43 030 31.40% 38 189 28.67%

Non-current liabilities:

Financial debt 12 25 700 18.77% 18 566 13.94%

Employee benefits liabilities 10 5 919 4.32% 7 111 5.34%

Provisions 11 1 033 0.75% 1 147 0.86%

Deferred tax liabilities 13 2 540 1.85% 3 492 2.62%

Other payables 12 390 0.28% 2 476 1.86%

Total non-current liabilities: 35 582 25.97% 32 792 24.62%

Total Liabilities: 78 612 57.37% 70 981 53.29%

 2018 2017
Notes Amount Percent Amount Percent

Equity: 17
Share capital 306 0.22% 311 0.23%
Treasury shares (6 948) (5.07%) (4 537) (3.40%)
Translation reserve (20 432) (14.91%) (19 436) (14.59%)
Other reserves (183) (0.13%) 989 0.74%
Retained earnings 84 620 61.76% 83 629 62.78%
Total Equity attributable to 57 363 41.87% 60 956 45.76%
shareholders of the parent:
Non-Controlling interests 1 040 0.76% 1 273 0.96%
Total Equity: 58 403 42.63% 62 229 46.71%
Total Liabilities and Equity: 137 015 100% 133 210 100%
 Horizontal Analysis of Income Statement
Nestle Group
Consolidated Income Statement
December 31

Increase or (decrease)
during 2018
Notes 2018 2017 AMOUNT PERCENT

Sales 3 91 439 89 590 1849 2.1%

Other Revenue 311 332 (21) (6.3%)
COGS (46 070) (45 571) 499 1.1%
Distribution expenses (8 469) (8 023) 446 5.6%
Marketing & administration (20 003) (19 818) 185 9.3%
expenses

Research & development costs (1 687) (1 739) (52) (2.10%)

Other trading income 4 37 112 (75) (6.7%)

Other trading expenses 4 (1 769) (1 606) 163 10.1%
Trading operating profit: 3 13 789 13 227 512 3.9%
 Increase or (decrease)
during 2018
Notes 2018 2017 AMOUNT PERCENT
Other operating income 4 2 535 379 2156 568.9%
Other operating expenses 4 (2 572) (3 500) (928) (26.5%)
Operating profit: 13 752 10 156 3 596 35.4%
Financial income 5 247 152 95 62.5%
Financial expense 5 (1 008) (848) 160 18.9%
Profit before taxes, associates, & joint 12 991 9 460 3 531 37.3%
ventures:
Taxes 13 (3 439) (2 773) 666 24%
Income from associates and joint ventures 14 916 824 92 11.2%
Profit of the year: 10 468 7 511 2 957 39.4%
Of which attributable to non-controlling 333 355 (22) (6.2%)
interests
Of which attributable to shareholders of 10 135 7 156 2 979 41.6%
the parent( Net profit)
 Increase or (decrease) during
2018

Notes 2018 2017 AMOUNT PERCENT

As percentage of sales

Trading operating profit 15.1% 14.8%

Profit for the year attributable to 11.1% 8.0%
shareholders of the parent (Net profit)
Earnings per share ( in CHF)

Basic earnings per share 15 3.36 2.31 1.05 45.5%

Diluted earnings per share 15 3.36 2.31 1.05 45.5%
 Vertical Analysis of Income Statement
Nestle Group
Consolidated Income Statement
December 31

2018 2017
Notes Amount Percent Amount Percent

Sales 3 91 439 100% 89 590 100%

Other Revenue 311 2.26% 332 2.51%
COGS (46 070) (334.11%) (45 571) (344.53%)
Distribution expenses (8 469) (61.42%) (8 023) (60.66%)
Marketing & administration (20 003) (145.06%) (19 818) (149.83%)
expenses

Research & development costs (1 687) (12.23%) (1 739) (13.15%)

Other trading income 4 37 0.27% 112 0.85%

Other trading expenses 4 (1 769) (12.83%) (1 606) (12.14%)
Trading operating profit: 3 13 789 100.01% 13 227 100.38%
 2018 2017
Notes Amount Percent Amount Percent

Other operating income 4 2 535 18.43% 379 3.73%

Other operating expenses 4 (2 572) (18.70%) (3 500) (34.46%)
Operating profit: 13 752 99.74% 10 156 69.65%
Financial income 5 247 1.90% 152 1.61%
Financial expense 5 (1 008) (7.76%) (848) (8.96%)
Profit before taxes, associates, & joint 12 991 93.88% 9 460 62.3%
ventures:
Taxes 13 (3 439) (32.85%) (2 773) (36.92%)
Income from associates and joint ventures 14 916 8.75% 824 10.97%
Profit of the year: 10 468 69.78% 7 511 36.35%
Of which attributable to non-controlling 333 355
interests
Of which attributable to shareholders of 10 135 7 156
the parent( Net profit)
 2018 2017
Amount Percent Amount Percent

Notes

As percentage of sales 14.8%

Trading operating profit 15.1% 8.0%
Profit for the year attributable to 11.1%
shareholders of the parent (Net profit)
Earnings per share ( in CHF) 2.31
Basic earnings per share 15 3.36 2.31
Diluted earnings per share 15 3.36 14.8%
 RATIO
ANALYSIS
Liquidity Ratios:
Current Ratio= Current Assets/Current Liabilities
(2017)
Current Ratio= 110 035/43 030
Current Ratio=2.5571 or 2.56

(2018)
Current Ratio= 31834/38189
Current Ratio= 0.8335 or 0.83
Profitability Ratios:
Gross Profit Ratio=Gross Profit/ Net Sales
Gross Profit Ratio=10 468/13 789
Gross Profit Ratio=0.759155848 or 0.76
Solvency/Stability Ratios:
(2018) (2017)
Current Assets:110 035 Current Assets: 31 834
Non-Current Assets:96 012 Non-Current Assets: 101 236
(2018) (2017)
Current Liabilities:43 030 Current Liabilities: 38 189
Non-Current Liabilities:35 582 Non-Current Liabilities: 32 792
Total Assets:137 015 Total Assets: 137 015
Total Liabilities:78 612 Total Liabilities: 78 612
2018
Debts to Assets Ratio= Liabilities/Assets
Debts to Assets Ratio= 78 612/137 015
Debts to Assets Ratio=0.5737
2019
Debts to Assets Ratio= Liabilities/Assets
Debts to Assets Ratio= 70 981/133 210
Debts to Assets Ratio= 0.5328
Inventory Ratio

2018 # of days in inventory

Cost of sales=46070 2018
Average Inventory=9125
365/5.0488=72.2772
2017
2017
Cost of Sales=45571
Average Inventory=9177
365/4.9658=73.4406
2018
Inventory Turnover
2018=5.0488
2017=4.9658
 Consolidated Statement of Comprehensive Income for the year ended
December 31,2018

Notes 2018 2017

Profit for the year recognized in the income 10 468 7 511
statement
Currency retranslations, net of taxes 17 (1 004) (561)
Fair value changes on available-for-sale financial 17 - (10)
instruments, net of taxes
Fair value changes on debt instruments, net of 17 (39) -
taxes
Fair value changes on cash flow hedges, net of 46 (55)
taxes
Share of other comprehensive income of 14/17 (21) (240)
associates and joint ventures
Items that are or may be reclassified (1 018) (866)
subsequently to the income statement:
 Notes 2018 2017

Remeasurement of defined benefit plans, net of 10/17 600 1 063

taxes
Fair value changes on equity instruments, net of 17 4 -
taxes
Share of other comprehensive income 14/17 117 52
associates and joint ventures
Items that will never be reclassified to the 721 1 115
income statement
Others comprehensive income for the year 17 (297) 249

Total comprehensive income for the year 10 171 7 760

Of which attributable to non-controlling 218 328

interests
Of which attributable to shareholders of the 9 953 7 432
parent
 Share Treasury Translation Other Retained Total equity attributable to Non-controlling Total Equity
Capital shares reserve reserves earnings shareholders of the parent interests
Equity as at Dec. 31, 2016 as originally 311 (990) (18 799) 1 198 82 870 64 590 1 391 65 981
published
First application of IFRS 15 - - - - (268) (268) - (268)

First application of IFRS 16 - - - - (189) (189) - (189)

Other - - - - (61) (61) - (61)

Equity restated as at Jan. 1, 2017 311 (990) (18 799) 1 198 82 352 64 072 1 391 65 463
Profit of the year - - - - 7 156 7 156 355 7 511
Other comprehensive income of the - - (637) (209) 1 122 276 (27) 249
year
Total comprehensive income of - - (637) (209) 8 278 7 432 328 7 760
the year
Dividends - - - - (7 126) (7 126) (342) (7 468)
Movement of treasury shares - ( 3719) - - 113 (3 606) - (3 606)
Equity compensation plans - 172 - - (11) 161 - 161
Changes in non-controlling - - - - 93 93 (104) (11)
interests. (a)
Total transactions with owners - (3 547) - - (6 391) (10 478) (446) (10 924)
Other movements - - - - (70) (70) - (70)

Equity restated at Dec. 31, 2017 311 (4 537) (19 436) 989 83 629 60 956 1 273 62 229