Nestlé investor update: Nestlé adopts IAS 19 Revised and IFRS 11 with effect from January 1st 2013 Freitag, 22. März 2013 - 07:21

Nestlé investor update: Nestlé adopts IAS 19 Revised and IFRS 11 with effect from January 1st 2013

The adoption of IAS 19 Revised (Pensions) and IFRS 11 (Joint Ventures) is mandatory as from January 1st 2013. As a result, 2012 numbers are restated to reflect what they would have been using the new/revised standards.

IAS 19 Revised Employee benefit costs recognized in the Group Income Statement increase, mainly due to the replacement of the expected return on plan assets and interest costs on the defined benefit obligation by a single net interest component. This net interest cost of pensions is presented together with the Group financing costs, while service cost continues to be included in operating expenses. As a result, restated trading operating profit and net profit are lower.

IFRS 11 The Group's main Joint Ventures (CPW, Galderma, DPA Chilled & Liquids, BPW) are consolidated using the equity method. This means that the Nestlé share (50%) of their sales and other Financial Statement line items is no longer consolidated, but the Nestlé share of their net profit is included in the Income Statement line "Share of results of associates and joint ventures". As a result, sales are lower but net profit and equity remain unchanged. On the balance sheet, net investments in joint ventures are presented together with investments in associates, on a single line.

Summary of restatements The estimated numbers presented during the February 14th 2013 Full Year 2012 results webcast are confirmed:

Sales: Reported CHF92.2 bn. Restated CHF89.7 bn. -CHF2.5 bn (JVs) Trading Operating Profit Margin: Reported 15.2%. Restated 15.0%. -20bps (Pensions/JVs) Profit for the Year: Reported CHF11.06 bn. Restated CHF10.68 bn. -0.38 (Pensions) Basic EPS: Reported CHF 3.33. Restated CHF 3.21. -0.12 CHF (Pensions) Free Cash Flow: Reported CHF9.9 bn. Restated CHF9.9 bn. No material impact on cash flow For full statement see PDF: http://www.nestle.com/asset-library/Documents/Library/Documents/Financial_Statements/Nestle-Group-Restatements-2012.pdf

Figures are also available in Excel: http://www.nestle.com/asset-library/Documents/Investors/Reports/Nestl%C3%A9-Group-Restatements-2012.xls

Nestlé Investor Relations Vevey, Switzerland Tel: +41 21 924 3509 Email: ir@nestle.com