)'(( REPORT :FM<I1 E\jkc_XjY\\e[\c`^_k`e^^\e\iXk`fej f]DXcXpj`XeZfejld\ijk_ifl^_`kj gif[lZkjXe[j\im`Z\j#j`eZ\`kY\^Xe `kjfg\iXk`fej_\i\`e(0()%8jk_\c\X[`e^ ]ff[Xe[Y\m\iX^\dXel]XZkli\i`e k_\Zflekip#E\jkc_XjZfek`elfljcp gifdfk\[=ff[#Elki`k`fe#?\Xck_Xe[ N\cce\jjXe[`kjYlj`e\jjg_`cfjfg_p f]:i\Xk`e^J_Xi\[MXcl\kfYfk_k_\ pfle^Xe[fc[%E\jkcn`ccZfek`el\kf [fjf]fik_\e\ok(''p\XijXe[Y\pfe[% Our Respect Our Commitment and Care for the to the Environment )' Community +' 8kE\jkc#n\Y\c`\m\k_Xk`efi[\i kfZi\Xk\cfe^$k\idmXcl\]fifli j_Xi\_fc[\ij#n\_Xm\kfZi\Xk\mXcl\ ]fijfZ`\kp#jlYjZi`Y`e^kfk_\m`\nk_Xk ZfigfiXk\jlZZ\jjXe[jfZ`Xc[\m\cfgd\ek ^f_Xe[`e_Xe[% Nestlé (Malaysia) Berhad 110925-W ( Our People Our Consumers -- and the Workplace // and the Marketplace @EJ@;< Message to Stakeholders ) Fast Facts , GOOD FOOD, GOOD LIFE - The Nest & The Nestlé Legacy - Organisation Structure . The Nestlé Creating Shared Value Strategy / Engaging Our Stakeholders (' Corporate Governance (+ Embedding Creating Shared Value (- Summary of Key Performance Data (/ Our Respect and Care for the Community )' Our Commitment to the Environment +' Our People and the Workplace -- Our Consumers and the Marketplace // Awards & Achievements ((' GRI Content Index (() Independent Assurance Report ()+ Nestlé Contact Details ()+ ) Nestlé (Malaysia) Berhad 110925-W D<JJ8><KFJK8B<?FC;<IJ Creating Shared Value (CSV) is a fundamental 9l`ckfek_\]fle[Xk`fef]Xjkife^ part of the Nestlé way of doing business and can be best reflected in the areas that Zfdgc`XeZ\Zlckli\Xe[Zfdd`kd\ek are core to our business strategy and vital to the welfare of the people and society. These areas are Nutrition, Water and Rural kfjljkX`eXY`c`kp#k_\E\jkc:i\Xk`e^ Development and all three are supporting our ambition to be the recognised leading Food, Nutrition, Health and Wellness J_Xi\[MXcl\ZfeZ\gkX`djkfZi\Xk\ company. Zfek`elfljj_Xi\[Y\e\Ôkj]fijfZ`\kp During the year under review, we have committed to further strengthen CSV in all aspects of our business. For the purpose Xe[flij_Xi\_fc[\ij% of this Report, we have reported our CSV initiatives in line with Bursa Malaysia’s requirements, grouped into four areas, demonstrating how Nestlé is Creating Shared Value while carrying out our business: The Chairman and Managing Director together with the Management Trainees packing Nestlé products which will help nourish one of the charity homes adopted by Nestlé. Nestlé (Malaysia) Berhad 110925-W * (% FLII<JG<:K8E;:8I< )% FLI:FDD@KD<EK Apart from the various training =FIK?<:FDDLE@KP KFK?<<EM@IFED<EK programmes, we also embarked on Our main focus is on Rural Development. We have continued to reduce our roadshows throughout the country to One of our most successful programmes environmental footprint along our value refresh our employees on the Nestlé has been our contract farming chain, meeting all our targets during the Corporate Business Principles and initiatives, which have given farmers year, i.e. Values. The roadshows are reported as a Case Study under the ‘Our People the opportunity to be part of the Nestlé UÊ ,i`ÕV}Ê>LÃÕÌiÊ>ÕÌÊvÊ ÀiVÌÊ and the Workplace’ section on page 80. supply chain, thus ensuring a steady Greenhouse Gases (Direct GHG) by income stream for them. In addition 1% to the ongoing chilli farming initiative +%FLI:FEJLD<IJ8E; UÊ ,i`ÕV}Ê>LÃÕÌiÊ>ÕÌÊvÊ-`Ê in Kelantan, which we first initiated in Waste by 2.5% K?<D8IB<KGC8:< 1995, we have also made strong efforts Our consumers are at the heart of all UÊ ,i`ÕV}Ê Ã«iVwVÊ 7>ÌiÀÊ 1Ã>}iÊ >ÌÊ in Sarawak with the traditional red rice that we do and we have continued to constant volume by 4% farmers. Furthermore, we are moving engage with them as part of our efforts UÊ ,i`ÕV}ÊëiVwVÊ iÀ}ÞÊ1Ã>}iÊ>ÌÊ ahead with the practice of semi-aerobic to improve their quality of life not only constant volume by 2% water-controlled farming with the through food and diet, but also through formation of the Nestlé Paddy Club communicating how to lead healthier Details of our initiatives and reductions (NPC) in Kedah where we help farmers lifestyles. to improve yields while ensuring a are reported in the section titled ‘Our Commitment to the Environment’ on supply of stable-priced, reliable, safe While we have made strides to improve page 42. and traceable rice for use in infant the nutritional quality of our products cereal manufacturing. The NPC is in its through product innovation and early stages, but already we have seen *% FLIG<FGC<8E; renovation, we have also introduced good progress especially in terms of K?<NFIBGC8:< initiatives to stress on the importance environmental impact with less water Our people are our main assets and of healthy diets and lifestyles daily, usage and reduction in methane, a extensive training based on Everyday such as the Nestlé Walking Days. We major greenhouse gas. Coaching on the job has been our key addressed the issues of obesity and focus. We also continue to improve non-communicable diseases through workplace conditions and employee talks on diabetes and a forum on benefits, introducing a Flexible Benefits obesity. Plan, additional employee training programmes and strengthening our Additionally, we also engaged with Safety & Health initiatives. our suppliers and external partners to provide them with clear guidelines to conform with the Nestlé Supplier Code and our expectations on their contributions to CSV. + Nestlé (Malaysia) Berhad 110925-W D<JJ8><KFJK8B<?FC;<IJ We are pleased to inform you that we The information contained in our sixth stand-alone CSV Report demonstrates have succeeded in our objective to achieve the operations of Nestlé (Malaysia) Berhad (‘the Company’ and all its the highest-level rating for the 2011 CSV subsidiaries (“the Group”)) for the year ended 31 December 2011 unless Report (A+ rating in accordance with the otherwise stated. The report covers the CSV activities and initiatives GRI 3.0 standards for the Food Processing as embedded in the operations of the Group and its subsidiaries. More Sector, audited by Bureau Veritas) and specifically, the Report focusses on activities and initiatives of the Group’s are committed to maintaining this level of two main subsidiaries – Nestlé Products Sdn. Bhd. and Nestlé Manufacturing assurance for future reports. Sdn. Bhd. This CSV Report accompanies the Nestlé In geographical terms, the Report covers all of our manufacturing facilities Corporate and Financial Reports, which and sales offices in Peninsular and East Malaysia, as well as our National together, make up the 2011 Annual Report Distribution Centre and Head Office1. for the Group. We know that creating a better and healthier society is a complex Our previous report (dated 31 December 2010) achieved a Level C+ rating topic and we do not have all the answers. in accordance with the Global Reporting Initiative (GRI) standards and was We therefore very much encourage and assured by PricewaterhouseCoopers (PwC) based on the internationally welcome your feedback and comments. recognised standard ISAE3000 issued by the International Auditing and You can find our contact details at the end Assurance Standards Board (“IAASB”). of the Report. As we continue to strengthen our CSV initiatives and strive to improve our reporting process, we engaged Bureau Veritas Certification to provide independent assurance for our CSV Report this year. Assurance performed Tan Sri Dato’ Seri Syed Zainol by Bureau Veritas is in accordance with the GRI 3.0 standards for the Food Anwar Jamalullail Processing Sector and based on the internationally recognised AA1000 Chairman of the Board of Directors Assurance Standard, set by AccountAbility. AA1000 is a generally applicable standard for assessing, attesting to and strengthening the credibility and Peter Vogt quality of an organisation’s sustainability reporting and their underlying Managing Director processes and competencies. It provides guidance on key elements of the assurance process. 1 Manufacturing facilities in Shah Alam, Petaling Jaya, Batu Tiga, Chembong and Kuching; Sales Offices for the Central, Northern, Southern, East Coast regions, Sabah and Sarawak; National Distribution Centre in Bukit Raja, Selangor and Head Office in Mutiara Damansara, Selangor. Nestlé (Malaysia) Berhad 110925-W , =8JK=8:KJ K?<E<JKCy>IFLG U Founded in 1866 by U Employs over 328,000 U 30 R&D Centres Henri Nestlé people worldwide worldwide U World’s largest food U 440 factories worldwide U RM6 billion global manufacturer, with U Around 1 billion investment in R&D headquarters in Vevey, products sold every day annually Switzerland U World’s largest private U Present in almost every nutrition research country in the world capability based in Switzerland E<JKCyD8C8PJ@8 :Xk\^fi`\jf]Gif[lZkj `eDXcXpj`X U Established in Malaysia since 1912 U Coffee and Beverages Biggest halal producer in the Nestlé world and the U U Culinary Aids / Prepared Foods Halal Centre of Excellence for the Nestlé Group U Milks U Employs more than 5,000 people U Liquid Drinks U Produces over 500 halal products U Junior Foods U RM4.7 billion in turnover in 2011 U Breakfast Cereals U Chilled Dairy U Public listed on Bursa Malaysia since 1989 U Ice Cream U Head Office in Mutiara Damansara, Selangor U Chocolate and Confectionery U 7 factories U HealthCare Nutrition U 1 National Distribution Centre U Performance Nutrition U Nestlé Professional - Nestlé (Malaysia) Berhad 110925-W >FF;=FF;#>FF;C@=< K?<D<8E@E>F= >FF;=FF;#>FF;C@=< Insufficient access to good food could result in nutritional deficiencies, malnutrition and other complex issues, which is why Nestlé believes that Good Food is the foundation of Good Life.