Nestie Berhad STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Group Company 2019 2018 019 2018 Note RM'000 RM'000 RM'000 RM'000 Assets Property. plant and equipment 1,277,861 1,245,564 Right-of-use assets 254,184 261,567 Intangible assets 65,795 67.546 Investments in subsidiaries 188,022 188.022 Investment in an associate 5,367 5,084 3,000 3,000 Deferred tax assets 34,511 30,572 Trade and other receivables 15,807 21,533 Total non-current assets 1,653,525 1.631,866 191,022 191.022 Trade and other receivables 9 508,097 605.414 408,111 404.244 Inventories 651,827 530,378 Current tax assets 2,690 163 Cash and cash equivalents 11 10,399 7,011 1,073,013 1.142.966 408,111 404.244 Assets classified as held for sale 12 72.450 Total current assets 1,073,013 .215,416 408,111 404.244 Total assets 2,726,538 2.847,282 599,133 595,266 Equity Share capital 267,500 267.500 267,500 267.500 Reserves (931) 2.498 Retained earnings 398,355 384.335 329,647 325,994 Total equity attributable to owners of the Company 13 664,924 654.333 597,147 593494 Liabilities Lease liabilities 176,823 180.198 Employee benefits 91,444 95,282 Deferred tax liabilities 138,597 135,390 Total non-current liabilities 406,864 410.870 Loans and borrowings 14 257,431 180,304 Lease liabilities 28,753 26,778 Trade and other payables 16 1,321,407 1,527,276 1.858 1.691 Current tax liabilities 47,159 47.721 128 81 Total current liabilities 1,654,750 1,782,079 1,986 1,772 Total liabilities 2,061,614 2.192.949 1,986 1.772 2,847.282 599,133 595,266 48 Total equity and liabilities 2,726,538 The notes on pages 56 to 122 are an integral part of these financial statements.Nestie Berhad STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Group Company 2019 2018 019 2018 Note RM'000 RM'000 RM'000 RM'000 Assets Property. plant and equipment 1,277,861 1,245,564 Right-of-use assets 254,184 261,567 Intangible assets 65,795 67.546 Investments in subsidiaries 188,022 188.022 Investment in an associate 5,367 5,084 3,000 3,000 Deferred tax assets 34,511 30,572 Trade and other receivables 15,807 21,533 Total non-current assets 1,653,525 1.631,866 191,022 191.022 Trade and other receivables 9 508,097 605.414 408,111 404.244 Inventories 651,827 530,378 Current tax assets 2,690 163 Cash and cash equivalents 11 10,399 7,011 1,073,013 1.142.966 408,111 404.244 Assets classified as held for sale 12 72.450 Total current assets 1,073,013 .215,416 408,111 404.244 Total assets 2,726,538 2.847,282 599,133 595,266 Equity Share capital 267,500 267.500 267,500 267.500 Reserves (931) 2.498 Retained earnings 398,355 384.335 329,647 325,994 Total equity attributable to owners of the Company 13 664,924 654.333 597,147 593494 Liabilities Lease liabilities 176,823 180.198 Employee benefits 91,444 95,282 Deferred tax liabilities 138,597 135,390 Total non-current liabilities 406,864 410.870 Loans and borrowings 14 257,431 180,304 Lease liabilities 28,753 26,778 Trade and other payables 16 1,321,407 1,527,276 1.858 1.691 Current tax liabilities 47,159 47.721 128 81 Total current liabilities 1,654,750 1,782,079 1,986 1,772 Total liabilities 2,061,614 2.192.949 1,986 1.772 2,847.282 599,133 595,266 48 Total equity and liabilities 2,726,538 The notes on pages 56 to 122 are an integral part of these financial statements.STATEMENTS OF PROFIT OR LOSS AND Corporate Governance & Financial OTHER COMPREHENSIVE INCOME Report 2019 FOR THE YEAR ENDED 31 DECEMBER 2019 Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Revenue 5,518,076 5,519.045 662,050 657.020 Cost of sales (3,444,561) (3,381,380) Gross profit 2,073,515 2,137.665 662,050 657,020 Other income 20,960 16,819 Selling and distribution expenses (977,094) (1023,305) Administrative expenses (192,373) (177.990) (3,495) (3,432) Other expenses (13,015) (38,593) (14) (142) Results from operating activities 17 911,993 914.596 658,541 653,446 Finance income 3,662 3,622 2,465 2,568 Finance costs (40,663) (43123) Net finance (costs)/income (37,001) (39,501) 2,465 2,568 Share of profit of an equity-accounted associate, net of tax 733 795 Profit before tax 875,725 875,890 661,006 656,014 Income tax expense 18 (202,812) (217,008) (753) (571) Profit for the year 672,913 658,882 660,253 655,443 Other comprehensive (expense)/ income, net of tax Item that is or may be reclassified subsequently to profit or loss Cash flow hedge (3,429) 11,670 Item that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit liability (2,293) (283) Other comprehensive (expense)/ income for the year, net of tax 19 (5,722) 11.387 Total comprehensive income for the year 667,191 670.269 660,253 655,443 Basic and diluted earnings per ordinary share (sen) 20 287 281 The notes on pages 56 to 122 are an integral part of these financial statements.STATEMENTS OF PROFIT OR LOSS AND Corporate Governance & Financial OTHER COMPREHENSIVE INCOME Report 2019 FOR THE YEAR ENDED 31 DECEMBER 2019 Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Revenue 5,518,076 5,519.045 662,050 657.020 Cost of sales (3,444,561) (3,381,380) Gross profit 2,073,515 2,137.665 662,050 657,020 Other income 20,960 16,819 Selling and distribution expenses (977,094) (1023,305) Administrative expenses (192,373) (177.990) (3,495) (3,432) Other expenses (13,015) (38,593) (14) (142) Results from operating activities 17 911,993 914.596 658,541 653,446 Finance income 3,662 3,622 2,465 2,568 Finance costs (40,663) (43123) Net finance (costs)/income (37,001) (39,501) 2,465 2,568 Share of profit of an equity-accounted associate, net of tax 733 795 Profit before tax 875,725 875,890 661,006 656,014 Income tax expense 18 (202,812) (217,008) (753) (571) Profit for the year 672,913 658,882 660,253 655,443 Other comprehensive (expense)/ income, net of tax Item that is or may be reclassified subsequently to profit or loss Cash flow hedge (3,429) 11,670 Item that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit liability (2,293) (283) Other comprehensive (expense)/ income for the year, net of tax 19 (5,722) 11.387 Total comprehensive income for the year 667,191 670.269 660,253 655,443 Basic and diluted earnings per ordinary share (sen) 20 287 281 The notes on pages 56 to 122 are an integral part of these financial statements.Nestle (Malaysia Berhad CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019 Attributable to owners of the Company Non-distributable Distributable Share Hedging Retained Total capital reserve earnings equity Group Note RM'000 RM'000 RM'000 RM'000 At 1 January 2018 267.500 (9.172) 370.611 628,939 Cash flow hedge 11.670 11,670 Remeasurement of defined benefit liability (283) 283) Other comprehensive income/ (expense) for the year 11.670 (283) 11,387 Profit for the year 658,882 658,882 Total comprehensive income for the year 11,670 658,599 670,269 Dividends to owners of the Company 21 (644,875) (644,875) Total transactions with owners of the Company (644.875) (644,875) At 31 December 2018/ 1 January 2019 267,500 2,498 384,335 654,333 Cash flow hedge (3,429) (3,429) Remeasurement of defined benefit liability (2,293) (2,293) Other comprehensive expense for the year (3,429) (2,293) (5,722) Profit for the year 672,913 672,913 Total comprehensive (expense)/ income for the year (3,429) 670,620 667,191 Dividends to owners of the Company 21 (656,600) (656,600) Total transactions with owners of the Company (656,600) (656,600) At 31 December 2019 267,500 (931) 398,355 664,924 Note 13 Note 13 50Nestle (Malaysia Berhad STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019 Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Cash flows from operating activities Profit before tax 875,725 875,890 661,006 656,014 Adjustments for: Amortisation of intangible assets 1,571 414 Depreciation of property, plant and equipment 133,506 135,328 Depreciation of right-of-use assets 32,411 29,612 Dividend income (662,050) (657.020) Expenses related to defined benefit plans 15 5,897 5,161 Finance costs 40,663 43,123 Finance income (3,662) (3622) (2,465) (2.568) (Gain)/Loss on disposal of property. plant and equipment 17 (852) 195 Gain on disposal of leasehold land 17 (7410) Impairment loss on property, plant and equipment 9.812 Intangible assets written off UT W 180 Net gain on divestment 28 (20,960) (9.417) Net unrealised foreign exchange differences 17 3,329 (5,866) Property. plant and equipment `written off 17 5,704 1,534 Share-based payments 17 10.919 5,344 Share of profit of an equity-accounted associate, net of tax 7 (733) (795) Operating profit/(loss) before changes in working capital .093,510 1,069.491 (3,509) (3,574) Change in inventories (26,802) (63.994) Change in trade and other payables (228,884) 229,300 167 266 Change in trade and other receivables 106,152 (14.031) 1,133 835 Cash generated from/(used in) operations 943,976 1,220,766 (2,209) (2,473) Dividends received from subsidiaries 656,600 644.875 Retirement benefits paid 15 (12,752) 52 Income tax paid (204,926) (173,872) (706) (515) Net cash from operating activities 726,298 1046,894 653,685 641,887Nestle (Malaysia) Berhad STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2019 Cash and cash equivalents Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts: Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Cash and bank balances 11 10,399 7,011 Bank overdraft 14 (42,827) (64,454) (32,428) 57.443) Cash outflows for leases as a lessee Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Included in net cash from operating activities: Payment relating to short-term leases 17 42,065 42,376 Finance cost of lease liabilities 17 7,949 5,185 Included in net cash from financing activities: Payment of lease liabilities 26,243 31,360 Total cash outflows for leases 76,257 78,921Corporate Governance & Financial Report 2019 Group Company 2019 2018 2019 2018 Note RM'000 RM'000 RM'000 RM'000 Cash flows from investing activities Acquisition of intangible assets 5 (5,974) Acquisition of property, plant and equipment W (183,253) (145,671) Dividends received from associate 450 420 450 420 Finance income received 3,662 3,622 2,465 2,568 Net proceeds from divestment 28 99,005 10,480 Proceeds from disposal of leasehold land 12,827 Proceeds from disposal of property. plant and equipment 2,359 549 Net cash (used in)/from investing activities (77,777) (123,747) 2,915 2,988 Cash flows from financing activities Dividends paid to owners of the Company 21 (656,600) (644,875) (656,600) (644,875) Finance costs paid (40,663) (43,123) Payment of lease liabilities (26,243) (31,360) Proceeds from/(Repayment of) borrowings 100,000 (243,922) Net cash used in financing activities (623,506) (963,280) (656,600) (644,875) Net increase/(decrease) in cash and cash equivalents 25,015 (40,133) Cash and cash equivalents at 1 January (57,443) (17,310) Cash and cash equivalents at 31 December (32,428) (57.443)Corporate Governance & Financial Report 2019 Reconciliation of movements of liabilities to cash flows arising from financing activities Acquisition At 1 Net changes Foreign At 31 January from financing exchange new lease December 2018 cash flows movement (Note 4) 2018 Group RM'000 RM'000 RM'000 RM'000 RM'000 Loan from a related company 359,970 (243,922) (198) 115,850 Lease liabilities 63,871 (31,360) 174,465 206,976 Total liabilities from financing activities 423,841 (275,282) (198) 174,465 322,826 Acquisition and At 1 Net changes Foreign modification of At 31 January from financing exchange lease December 2019 cash flows movement (Note 4) 2019 Group RM'000 RM'000 RM'000 RM'000 RM'000 Loan from a related company 115,850 (1,246) 114,604 Revolving credit - unsecured 100,000 100,000 Lease liabilities 206,976 (26,243) 24,843 205,576 Total liabilities from financing activities 322,826 73,757 (1,246) 24,843 420,180