2000 Financial Statements en

2000 Financial statements
Consolidated accounts of the Nestlé Group

Annual report of Nestlé S.A.
5 Consolidated income statement for the year ended 31st December 2000
6 Consolidated balance sheet as at 31st December 2000
8 Consolidated cash flow statement for the year ended 31st December 2000
10 Consolidated statement of changes in equity
11 Annex
11 Accounting policies
13 Valuation methods and definitions
16 Changes in accounting policies and modification of the scope of consolidation
17 Notes
44 Principal exchange rates
45 Report of the Group auditors
46 Financial information – ten year review
48 Companies of the Nestlé Group
134th Annual report of Nestlé S.A.
54 Income statement for the year 2000

55 Balance sheet at 31st December 2000
56 Annex to the annual accounts of Nestlé S.A.
59 Notes to the annual accounts
67 Proposed appropriation of profit
68 Report of the statutory auditors
69 Agenda for the 134th Ordinary General Meeting of Nestlé S.A.
70 Important dates
71 Shareholder information
3
Consolidated income statement

for the year ended 31st December 2000
In millions of CHF Notes 2000 1999
Sales to customers 1 81 422 74 660

Cost of goods sold (38 121) (35 912)
Distribution expenses (5 884) (5 268)
Marketing and administration expenses (26 467) (23 887)
Research and development costs (1 038) (893)
Restructuring costs (312) (402)
Amortisation of goodwill (414) (384)
Trading profit 1 9 186 7 914

Net financing cost 2 (746) (998)
Net non-trading items 3 (99) (57)
Profit before taxes 4 8 341 6 859

Taxes 5 (2 761) (2 314)
Net profit of consolidated companies 5 580 4 545

Share of profit attributable to minority interests (212) (160)
Share of results of associated companies 6 395 339
Net profit for the year 5 763 4 724
As percentages of sales
Trading profit 11.3% 10.6%
Net profit for the year 7.1% 6.3%
Earnings per share

(in CHF)
Basic earnings per share 7 149.1 122.1
Fully diluted earnings per share 7 147.8 120.7
5
Consolidated balance sheet

as at 31st December 2000
before appropriations
Assets
Current assets
Liquid assets 8
Cash and cash equivalents 5 451 3 322
Other liquid assets 4 680 3 348
10 131 6 670
Trade and other receivables 9 12 685 12 443
Inventories 10 7 168 7 383
Prepayments and accrued income 763 673
Total current assets 30 747 27 169
Fixed assets
Tangible fixed assets 11
Gross value 43 519 44 014
Accumulated depreciation (24 894) (24 796)
18 625 19 218
Financial assets
Investments in associated companies 12 2 173 1 828
Deferred tax assets 21 2 569 2 293
Other financial assets 13 2 692 2 431
7 434 6 552
Goodwill 14 7 902 5 258
Intangible assets 15 816 742
Total fixed assets 34 777 31 770
Total assets 65 524 58 939
6
Liabilities and equity
Current liabilities
Trade and other payables 16 10 001 9 635
Financial liabilities 17 8 376 7 967
Tax payable 1 035 985
Accruals and deferred income 3 762 3 595
Total current liabilities 23 174 22 182
Medium and long term liabilities

Financial liabilities 18 4 768 4 905
Employee benefit liabilities 19 2 860 2 822
Deferred tax liabilities 21 1 550 1 327
Tax payable 53 72
Other payables 402 264
Provisions 22 2 204 2 289
Total medium and long term liabilities 11 837 11 679
Total liabilities 35 011 33 861
Minority interests 609 625
Equity
Share capital 23 404 404
Share premium and reserves
Share premium 5 926 5 926
Reserve for treasury shares 2 232 2 873
Translation reserve 571 839
Retained earnings 23 388 17 439
32 117 27 077
32 521 27 481
Less:
Treasury shares 24 (2 617) (3 028)
Total equity before appropriations 29 904 24 453
Total liabilities and equity 65 524 58 939
7
Consolidated cash flow statement

for the year ended 31st December 2000
Operating activities
Net profit of consolidated companies 5 580 4 545
Depreciation of tangible fixed assets 11 2 737 2 597
Impairment of tangible fixed assets 11 223 373
Amortisation of goodwill 14 414 384
Depreciation of intangible assets 15 179 92
Impairment of goodwill 14 230 212
Increase/(decrease) in provisions and deferred taxes (4) 101
Decrease/(increase) in working capital 25 (368) 235
Other movements (140) (352)
(a)
a)
Taxes paid amount Operating cash flow 8 851 8 187
to CHF 2714 million
(1999: CHF 2304 mil-
lion). Investing activities
Interest received/paid
Expenditure on tangible fixed assets 11 (3 305) (2 806)
does not differ materi-
ally from interest Expenditure on intangible assets 15 (188) (139)
shown under note 2
Sale of tangible fixed assets 355 363
“Net financing cost”.
Acquisitions 26 (2 846) (440)
Disposals 27 780 253
Income from associated companies 107 86
Other movements 39 (76)
Cash flow from investing activities (5 058) (2 759)
8
Financing activities
Dividend for the previous year (1 657) (1 469)
Purchase of treasury shares (net) 1 072 (2 311)
Premium on warrants issued 81 –
Movements with minority interests (221) (190)
Bonds issued 1 016 328
Bonds repaid (1 143) (400)
Increase/(decrease) in other medium/
long term financial liabilities (155) 500
Increase/(decrease) in short term financial liabilities 921 (3 488)
Decrease/(increase) in marketable securities and
other liquid assets (2 788) (355)
Decrease/(increase) in short term investments 1 452 12
Cash flow from financing activities (1 422) (7 373)
Translation differences on flows (175) 49
Increase/(decrease) in cash and cash equivalents 2 196 (1 896)
Cash and cash equivalents at beginning of year 3 322 4 984

Effects of exchange rate changes on opening balance (67) 234
Cash and cash equivalents retranslated at beginning of year 3 255 5 218
Cash and cash equivalents at end of year 8 5 451 3 322
9
Consolidated statement of changes in equity
Reserve for Less:

Share treasury Translation Retained Total Share Treasury Total
In millions of CHF premium shares reserve earnings reserves capital shares equity
Equity as at
31st December 1998 5 926 562 226 16 285 22 999 404 (588) 22 815
Currency retranslation 613 613 613

Net profit 4 724 4 724 4 724
Movement of treasury shares (net) 2 311 (2 311) — (2 311) (2 311)
Result on options and treasury
shares held for trading purposes 139 139 (129) 10
Dividend for the previous year (1 469) (1 469) (1 469)
Recovery of goodwill on
disposals charged to equity
prior to 1st January 1995 71 71 71
Equity as at
31st December 1999 5 926 2 873 839 17 439 27 077 404 (3 028) 24 453
Adjustment for the introduction

of IAS 37
– Provisions 132 132 132
– Related deferred taxes (21) (21) (21)
Equity restated as at
31st December 1999 5 926 2 873 839 17 550 27 188 404 (3 028) 24 564
Currency retranslation (268) (268) (268)

Net profit 5 763 5 763 5 763
Movement of treasury shares (net) (641) 641 — 641 641
Result on options and treasury
shares held for trading purposes 959 959 (230) 729
Premium on warrants issued 81 81 81
Dividend for the previous year (1 657) (1 657) (1 657)
Recovery of goodwill on
disposals charged to equity
prior to 1st January 1995 51 51 51
Equity as at
31st December 2000 5 926 2 232 571 23 388 32 117 404 (2 617) 29 904
10
Annex
Accounting policies Foreign currencies

In individual companies, transactions in foreign curren-
Accounting convention and accounting standards cies are recorded at the rate of exchange at the date of
The Consolidated accounts comply with International the transaction or, if hedged forward, at the rate of ex-
Accounting Standards (IAS) issued by the International change under the related hedge instrument. Assets and
Accounting Standards Committee (IASC) and with the liabilities in foreign currencies are translated at year end
Standing Interpretations issued by the Standing Interpre- rates. Any resulting exchange differences are taken to
tation Committee of the IASC (SIC). the income statement.
The accounts have been prepared under the historical On consolidation, assets and liabilities of Group com-
cost convention and on an accrual basis. All significant panies denominated in foreign currencies are translated
consolidated companies have a 31st December account- into Swiss francs at year end rates. Income and expense
ing year end. All disclosures required by the 4th and 7th items are translated into Swiss francs at the annual aver-
European Union company law directives are provided. age rates of exchange or, where known or determinable,
at the rate on the date of the transaction for significant
Scope of consolidation items.
The Consolidated accounts comprise those of Nestlé Differences arising from the retranslation of opening
S.A. and of its affiliated companies, including joint ven- net assets of Group companies, together with differ-
tures, and associated companies (the Group). The list of ences arising from the restatement of the net results for
the principal companies is given in section “Companies the year of Group companies from average or actual
of the Nestlé Group”. rates to year end rates, are taken to equity.
The balance sheet and net results of Group com-
Consolidated companies panies operating in hyperinflationary economies are
Companies in which the Group has a participation, usu- restated for the changes in the general purchasing
ally a majority, and where it is responsible for the man- power of the local currency, using official indices at the
agement, are fully consolidated. This applies irrespective balance sheet date, before translation into Swiss francs
of the percentage of the participation in the share at year end rates.
capital. Minority interests in equity, as well as in the net
results, are shown separately in the Consolidated
accounts. Hedging
Proportional consolidation is applied for companies Derivative financial instruments are used to manage
owned, controlled and managed jointly with partners. operational exposures to foreign exchange, interest rate
The individual assets, liabilities, income and expenditure and commodity price risks. They are entered into with
are consolidated in proportion to the Nestlé participation high credit quality financial institutions, consistent with
in the equity (usually 50%). specific approval, limit and monitoring procedures. The
Newly acquired companies are consolidated from the instruments used to hedge foreign currency flows and
effective date of acquisition, using the purchase method. positions mainly include forward foreign exchange con-
tracts, options and currency swaps. Foreign exchange
Associated companies gains and losses on hedging instruments are matched
Companies where the Group has a participation of 20% with foreign exchange gains and losses on the underlying
or more and a significant influence but does not exercise asset or liability. When an anticipated future transaction
management control are accounted for by the equity has been hedged and the underlying position has not
method. The net assets and results are recognised on the been recognised in the financial statements any change
basis of the associates’ own accounting policies, which in the fair value of the hedging instrument is not recog-
may differ from those of the Group. nised in the income statement for the period.
11
Where derivatives are held for the long term and are goodwill. Liabilities comprise trade and other payables,
used to manage interest rate risks, they are accounted accruals and deferred income. Eliminations represent
for on the cost basis (where the underlying asset or lia- inter-company balances between the different segments.
bility is accounted for on the cost basis) and payments Segment assets and liabilities by management re-
and receipts relating to the instruments are recognised sponsibilities and geographic area represent the situation
under net financing cost as they accrue. In other cases at the end of the year. Assets by product group represent
the instruments are carried at fair value and changes in the annual average as this provides a better indication of
the market value are taken to income. The instruments the level of invested capital.
used consist of interest rate swaps, interest rate options
and futures.
Commodity instruments are used to ensure the
Group’s access to raw materials at an appropriate price.
Outright purchase transactions are recorded at the
contracted rates. Changes in the fair value of open com-
modity instruments are not recognised until the actual
purchase transactions are recognised in the financial
statements.
Segmental information
Segmental information is based on two segment formats:
the primary format reflects the Group’s management
structure, whereas the secondary format is product
oriented.
The primary segment format – by management
responsibility and geographic area – represents the
Group’s management structure. The principal activity of
the Group is the food business, which is managed
through three geographic zones. The other activities,
mainly pharmaceutical products and water, are managed
on a worldwide basis. The secondary segment format
representing products is divided into five categories
(segments).
Segment results represent the contribution of the dif-
ferent segments to central overheads, research and de-
velopment costs and the profit of the Group. Unallocated
items comprise mainly corporate expenses, research
and development costs, amortisation of goodwill and, for
the product segments, restructuring and other costs.
Specific corporate and research and development
expenses are allocated to the corresponding segments.
Segment assets comprise tangible fixed assets, trade
and other receivables, inventories and prepayments and
accrued income. Unallocated items represent mainly cor-
porate and research and development assets, including
12
Valuation methods and definitions tion. Short term investments consist of bank deposits
and fixed term investments whose maturities are higher
Sales to customers than three months from the date of acquisition.
Sales to customers represent the sales of products and Marketable securities, which are held to maturity, are
services rendered to third parties, net of sales rebates valued at the lower of cost or market value, while those
and sales taxes. held for trading purposes are carried at market value.
Any resulting gains or losses are recognised in the in-
Net financing cost come statement.
This item includes the interest expense on borrowings
from third parties as well as the interest income earned Inventories
on funds invested outside the Group. Exchange differ- Raw materials and purchased finished goods are valued at
ences and the results of foreign exchange and interest purchase cost. Work in progress and manufactured fin-
hedge operations linked to external loans, intra-Group ished goods are valued at production cost. Production cost
short term loans and deposits in foreign currencies are includes direct production costs and an appropriate pro-
also included under this heading. portion of production overheads and factory depreciation.
For hyperinflationary economies, only the real net fi- Movements in raw materials inventories and pur-
nancing cost appears under this heading. chased finished goods are accounted for using the FIFO
(first in, first out) method. The weighted average cost
Taxes method is used for other inventories.
This includes current taxes on profit and other taxes A provision is established when the net realisable
such as taxes on capital. Also included are actual or po- value of any inventory item is lower than the value calcu-
tential withholding taxes on current and expected translated above.
fers of income from Group companies and tax adjust-
ments relating to prior years. Prepayments and accrued income
Deferred taxation is the tax attributable to the tempo- Prepayments and accrued income comprise payments
rary differences that appear when taxation authorities made in advance relating to the following year, and in-
recognise and measure assets and liabilities with rules come relating to the current year which will not be re-
that differ from those of the Consolidated accounts. ceived until after the balance sheet date.
Deferred taxes are calculated under the liability
method at the rates of tax expected to prevail when the Accruals and deferred income
temporary differences reverse. Any changes of the tax Accruals and deferred income comprise expenses relat-
rates are recognised to the income statement. Deferred ing to the current year which will not be paid until after
tax liabilities are recognised on all taxable temporary dif- the balance sheet date and income received in advance,
ferences excluding non deductible goodwill. Deferred tax relating to the following year.
assets are recognised on all deductible temporary differ-
ences provided that it is probable that future taxable in- Tangible fixed assets
come will be available. Tangible fixed assets are shown in the balance sheet at
their historical cost. Depreciation is provided on the
Liquid assets straight line method so as to amortise the initial cost
Liquid assets include cash at bank and in hand, cash over the estimated useful lives, which are as follows:
equivalents, marketable securities, other liquid funds
and short term investments. Cash equivalents consist of
bank deposits and fixed term investments whose maturi- Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . 25–50 years
ties are three months or less from the date of acquisi- Machinery and equipment . . . . . . . . . . . . . . 10–15 years
13
Tools, furniture, information technology Goodwill is amortised on a straight line basis over its
and sundry equipment . . . . . . . . . . . . . . . . 3–8 years anticipated useful life but not exceeding 20 years.
Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 years Goodwill is usually recorded in the currency of the
acquiring entity.
Financing costs incurred during the course of con-
struction are expensed. Land is not depreciated. Premi- Intangible assets
ums capitalised for leasehold land or buildings are amor- This heading includes separately purchased intangible
tised over the length of the lease. assets such as software, intellectual property rights and
Depreciation of tangible fixed assets is allocated to rights to carry on an activity (i.e. exclusive rights to sell
the appropriate headings of expenses by function in the products or to perform a supply activity). They are amor-
income statement. tised over their useful life, the depreciation being allo-
cated to the relevant headings in the income statement.
Leased assets Internally generated intangibles are recognised only
Assets acquired under long term finance leases are capi- under rare circumstances and provided that a given pro-
talised and depreciated in accordance with the Group’s ject and its cost are well identified. They consist mainly
policy on tangible fixed assets. The associated obliga- of data processing software.
tions are included in financial liabilities.
Rentals payable under operating leases are charged Research and development
to the income statement as incurred. Research and development costs are charged to the in-
come statement in the year in which they are incurred.
Other financial assets Development costs related to new products are not
Long term receivables are discounted to their net pres- capitalised because the availability of future economic
ent value at the date of inception. benefits is evident only once the products are on the
Other financial assets also include the discounted fu- market place.
ture economic benefits resulting from excess of assets
of funded defined benefit plans. Impairment of assets
Other investments primarily comprise participations Consideration is given at each balance sheet date to de-
of minor importance in various companies where the termine whether there is any indication of impairment of
Group does not exercise management control as well as the carrying amounts of the Group’s assets. If any indi-
some securities. cation exists, an asset’s recoverable amount is esti-
Other financial assets are carried at cost or valuation mated. An impairment loss is recognised whenever the
less any accumulated impairment losses. carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net
Goodwill selling price and value in use. In assessing value in use,
As from 1st January 1995, the excess of the cost of an the estimated future cash flows are discounted to their
acquisition over the fair value of the net tangible assets is present value based on the average borrowing rate of the
capitalised. Previously these amounts had been written country where the assets are located, adjusted for risks
off through equity. This value also includes those intangi- specific to the asset.
ble assets acquired that are not separately identifiable, in
particular trademarks and industrial property rights. Current liabilities
Gains on the disposal of businesses acquired prior to These include current or renewable liabilities due within
1st January 1995 are taken to equity to the extent of the a maximum period of one year.
goodwill previously written off. Any excess is taken to
the income statement.
14
Provisions nised only to the extent that it represents a future eco-

These include liabilities of uncertain timing or amounts nomic benefit which is actually available to the Group,
that arise from restructuring, environment, litigation and for example in the form of refunds from the plan or re-
other risks. Provisions are recognised when there exists ductions in future contributions to the plan. When such
a legal or constructive obligation stemming from a past an excess is not available or does not represent a future
event and when the future cash outflows can be reliably economic benefit, it is not recognised but is disclosed in
estimated. Obligations arising from restructuring plans the notes.
are recognised only upon their announcement. Actuarial gains and losses arise mainly from changes
in actuarial assumptions and differences between actuar-
Contingent assets and liabilities ial assumptions and what has actually occurred. They are
Contingent assets and liabilities arise from conditions or recognised in the income statement, over the remaining
situations, the outcome of which depends on future working lives of the employees, only to the extent that
events. They are disclosed in the notes to the accounts. their net cumulative amount exceeds 10% of the greater
of the present value of the obligation or of the fair value
Events occurring after the balance sheet date of plan assets. Unrecognised actuarial gains and losses
The values of assets and liabilities at the balance sheet are reflected in the balance sheet.
date are adjusted if there is evidence that subsequent For defined benefit plans the actuarial cost charged to
adjusting events warrant a modification of these values. the income statement consists of current service cost, in-
These adjustments are made up to the date of ap- terest cost, expected return on plan assets and past ser-
proval of the accounts by the Board of Directors. vice cost as well as actuarial gains or losses to the extent
Other non adjusting events are disclosed in the notes. that they are recognised. The past service cost for the en-
hancement of pension benefits is accounted for when
Employee benefits such benefits vest or become a constructive obligation.
Post employment benefits Some benefits are also provided by defined contribu-
The liabilities of the Group arising from defined benefit tion plans; contributions to such plans are charged to
obligations, and the related current service cost, are de- the income statement as incurred.
termined using the projected unit credit method. Valua-
tions are carried out annually for the largest plans and on Pensions and retirement benefits
a regular basis for other plans. Actuarial advice is pro- The majority of Group employees are eligible for retire-
vided both by external consultants and by actuaries em- ment benefits under defined benefit schemes based on
ployed by the Group. The actuarial assumptions used to pensionable remuneration and length of service, consist-
calculate the benefit obligations vary according to the ing mainly of final salary plans.
economic conditions of the country in which the plan is
located. Post retirement health care and other employee benefits
Such plans are either externally funded, with the Group companies, principally in North America, maintain
assets of the schemes held separately from those of the health care benefit plans which cover eligible retired em-
Group in independently administered funds, or unfunded ployees.
with the related liabilities carried in the balance sheet. The obligations for other employee benefits consist
For the funded defined benefit plans, the deficit or mainly of end of service indemnities, which do not have
excess of the fair value of plan assets over the present the character of pensions.
value of the defined benefit obligation is recognised as a
liability or an asset in the balance sheet, taking into ac- Equity compensation plans
count any unrecognised actuarial gains or losses and Members of the Group’s Management
past service cost. However, an excess of assets is recog- Members of the Group’s Management are entitled to par-
15
ticipate each year in a share option plan without pay- Changes in accounting policies and modification
ment. The benefits consist of the right to buy Nestlé of the scope of consolidation
shares at a pre-determined fixed price.
As from 1st January 1999, this plan has a rolling Changes in accounting policies
seven year duration and the rights are vested after three The Group has implemented the following standards as
years (previously five years and two years respectively). from 1st January 2000:
In order to hedge the related exposure, the Group • IAS 36 Impairment of Assets. Impairment losses are
buys the number of shares necessary to satisfy all poten- disclosed in the respective tables of movements of
tial outstanding obligations under the plan when the assets.
benefit is awarded and holds them until the maturity of • IAS 37 Provisions, Contingent Liabilities and Contin-
the plan or the exercise of the rights. No additional gent Assets. The effect of these changes is disclosed
shares are issued as a result of the equity compensation on the statement of changes in equity.
plan. • IAS 38 Intangible Assets. Intangible assets and good-
The Group is not exposed to any additional cost and will are now disclosed separately.
there is no dilution of the rights of the shareholders. • IAS 10 (revised 1999) Events after the Balance Sheet
Date.
Board of Directors
The annual remuneration of the Members of the Board of
Directors is partly paid in kind through the delivery to Modification of the scope of consolidation
them of warrants purchased on the market. The warrants The scope of consolidation has been affected by the
have a duration of five years and vest after two years. acquisitions and disposals made in 2000. The principal
They are issued by a financial institution and are businesses are detailed below.
quoted on the Stock Exchange.
The Group is not exposed to any additional cost and Fully consolidated
there is no dilution of the rights of the shareholders. Newly included:
Vending machines business of Ueshima Coffee Company
Dividends – UCC, Japan, 100% (March)
In accordance with Swiss law and the Company’s Arti- PowerBar, USA, 100% (April)
cles of Association, dividends are treated as an appropri- Summit Autonomous, USA, 100% (July)
ation of profit in the year in which they are ratified at the
Annual General Meeting and subsequently paid, rather
than as an appropriation of the profit in the year to which Disposal:
they relate. Findus frozen food business, Europe (February/March)
16
Notes
1. Segmental information
By management responsibility and geographic area
In millions of CHF 2000 1999 2000 1999
Sales Results
Zone Europe 26 285 27 098 2 753 2 671

Zone Americas 25 524 22 045 3 503 2 799
Zone Asia, Oceania and Africa 15 710 13 611 2 673 2 185
Other activities (a) 13 903 11 906 2 015 1 675 a)
Mainly Pharma-
ceutical products and
81 422 74 660 10 944 9 330
Water, managed on a
(b)
Unallocated items (1 758) (1 416) worldwide basis.
Trading profit 9 186 7 914 b)
Mainly corporate
expenses, research
and development costs
The analysis of sales by geographic area is stated by customer destination. Intersegment
as well as amortisation
sales are not significant. of goodwill.

Assets Liabilities
Zone Europe 12 913 14 333 5 279 5 398

Zone Americas 10 503 10 332 3 460 3 187
Zone Asia, Oceania and Africa 6 897 6 919 2 591 1 936
Other activities (a) 7 860 7 316 2 896 2 855
38 173 38 900 14 226 13 376
(c)
Unallocated items 10 635 7 454 386 491 c)
Corporate and
research and develop-
Eliminations (849) (637) (849) (637)
ment assets/liabilities,
47 959 45 717 13 763 13 230 including goodwill.

Capital Depreciation of
expenditure tangible fixed assets
Zone Europe 946 923 890 928

Zone Americas 766 718 767 697
Zone Asia, Oceania and Africa 550 381 481 421
Other activities (a) 949 665 519 477
3 211 2 687 2 657 2 523
(d)
Unallocated items 94 119 80 74 d)
Corporate and
research and develop-
3 305 2 806 2 737 2 597
ment fixed assets.
17
By product group
Sales Results
Beverages 23 044 20 859 4 318 3 764

Milk products, nutrition and ice cream 21 974 19 411 2 620 2 168
Prepared dishes, cooking aids
and petcare 20 632 20 185 1 948 1 850
Chocolate, confectionery and biscuits 10 974 10 195 1 166 882
Pharmaceutical products 4 798 4 010 1 212 1 077
81 422 74 660 11 264 9 741
(a)
a)
Mainly corporate Unallocated items (2 078) (1 827)
expenses, research
Trading profit 9 186 7 914
and development
costs, amortisation of
goodwill as well as
restructuring costs.
In millions of CHF 2000 1999
Assets
Beverages 10 654 10 104

Milk products, nutrition and ice cream 11 215 10 722
and petcare 8 980 9 940
Chocolate, confectionery and biscuits 6 685 6 007
Pharmaceutical products 2 589 2 198
40 123 38 971

Capital expenditure
Beverages 936 618

Milk products, nutrition and ice cream 530 366
and petcare 390 464
Chocolate, confectionery and biscuits 250 280
Pharmaceutical products 113 91
2 219 1 819
Administration, distribution, research
and development 1 086 987
3 305 2 806
18
2. Net financing cost

Interest income 614 474

Interest expense (1 360) (1 472)
(746) (998)
Interest income includes CHF 31 million (1999: CHF 22 million) of gains arising on securities
held for trading purposes.
3. Net non-trading items

Non-trading expenses
Loss on disposal of tangible fixed assets (19) (20)
Loss on disposal of activities (32) (21)
Provisions for litigation and other risks (205) (42)
Impairment of tangible fixed assets (223) (373)
Impairment of goodwill (230) (212)
Other (450) (255)
(1 159) (923)
Non-trading income
Profit on disposal of fixed assets 57 96
Profit on disposal of activities 546 60
Release of provisions for litigation and other risks 73 78
Other 384 632 (a) a)
of which CHF 433
million represents ex-
1 060 866
ceptional tax credits,
primarily in the USA.
Net non-trading items (99) (57)
4. Expenses by nature
The following items are allocated to the appropriate headings of expenses by function in the
income statement:
Depreciation of tangible fixed assets 2 737 2 597

Salaries and welfare expenses 12 774 12 224
Remuneration of the executive management and of the Directors 19 16
Auditors’ remuneration 26 28
Operating lease charges 362 113
Exchange differences (55) (22)
19
5. Taxes
Components of tax expense

Current tax 2 395 1 910
Deferred tax (44) (64)
Transfers (from)/to unrecognised tax assets 2 79
Changes in deferred tax rates (13) 10
Prior years tax 18 (36)
a)
Includes withholding Other tax (a) 403 415
tax levied on transfer
2 761 2 314
of income.
Deferred tax by types

Tangible fixed assets 20 (118)
Goodwill and intangible assets 33 71
Employee benefits liabilities (68) (34)
Inventories, receivables, payables and provisions (148) (40)
Unused tax losses and tax credits 44 39
Other 75 18
(44) (64)
Reconciliation of tax expense

Tax at the theoretical domestic rates applicable to profits
of taxable entities in the countries concerned 2 390 1 889
Tax effect on non-deductible amortisation of goodwill 165 146
Tax effect on non-allowable items (168) (125)
Transfers (from)/to unrecognised tax assets 2 79
Difference in tax rates (49) (54)
Other tax (a) 421 379
2 761 2 314
6. Share of results of associated companies

Share of profit before taxes 605 521

Less share of taxes (210) (182)
Share of profit after taxes 395 339
20
7. Earnings per share

2000 1999
Basic earnings per share in CHF 149.1 122.1

Net profit per income statement (in millions of CHF) 5 763 4 724
Weighted average number of shares outstanding 38 652 783 38 677 213
Fully diluted earnings per share in CHF 147.8 120.7

Theoretical net profit assuming the exercise
of all outstanding options and sale of all
treasury shares (in millions of CHF) 5 963 4 869
Number of shares 40 352 000 40 352 000
8. Liquid assets
Cash and cash equivalents

Cash at bank and in hand 1 778 1 724
Cash equivalents 3 673 1 598
5 451 3 322
Other liquid assets

Short term investments 326 1 782
Marketable securities and other 4 354 1 566
4 680 3 348
Liquid assets 10 131 6 670
Liquid assets are mainly denominated in CHF (27%), in USD (33%), in EUR (27%) and in
GBP (4%). Marketable securities held for trading purposes amount to CHF 655 million (1999:
CHF 626 million). The fair value of other liquid assets is not materially different from their
carrying amounts. Rates of annual interest on interest bearing instruments range from 2.8%
on CHF to 6.7% on USD.
21
9. Trade and other receivables

Trade receivables 10 361 10 148

Other receivables 2 324 2 295
12 685 12 443
After deduction of allowances for doubtful receivables of 515 503
Amounts included above which are due after more than one year 85 89
10. Inventories
Raw materials, work in progress and sundry supplies 2 806 2 893

Finished goods 4 556 4 667
Provisions (194) (177)
7 168 7 383
Inventories amounting to CHF 73 million (1999: CHF 65 million) are pledged as security for
financial liabilities.
11. Tangible fixed assets

Tools,
Machinery furniture
Land and and and other
buildings equipment equipment Vehicles Total Total
Gross value
At 1st January 12 232 25 032 5 869 881 44 014 40 321
Currency retranslation and

inflation adjustment (325) (820) (168) (33) (1 346) 2 942
Expenditure 674 1 743 769 119 3 305 2 806
Disposals (346) (958) (526) (132) (1 962) (1 926)
Modification of the scope
of consolidation (258) (736) 527 (25) (492) (36)
Other – – – – – (93)
At 31st December 11 977 24 261 6 471 810 43 519 44 014
22

Tools,
Machinery furniture
Land and and and other
buildings equipment equipment Vehicles Total Total
Accumulated depreciation
At 1st January (4 375) (15 798) (4 041) (582) (24 796) (21 895)
Currency retranslation and

inflation adjustment 124 606 134 21 885 (1 579)
Depreciation (365) (1 561) (701) (110) (2 737) (2 597)
Impairment (48) (159) (16) – (223) (413) (a) a) of which CHF 373
million recognised in
Disposals 214 765 468 109 1 556 1 526
the income statement
Modification of the scope and CHF 40 million
by reclassification of
of consolidation 158 589 (347) 21 421 50
the related provision.
Other – – – – – 112
At 31st December (4 292) (15 558) (4 503) (541) (24 894) (24 796)
Net at 31st December 7 685 8 703 1 968 269 18 625 19 218
At 31st December 2000, net tangible fixed assets include CHF 158 million (1999:
CHF 123 million) of assets under construction. Net tangible fixed assets held under finance
leases at 31st December 2000 amount to CHF 255 million (1999: CHF 80 million). Net
tangible fixed assets of CHF 147 million (1999: CHF 192 million) are pledged as security for
financial liabilities.
The fire risks, reasonably estimated, are insured in accordance with domestic requirements.
12. Investments in associated companies

This item primarily includes the Group's indirect (26,3%) participation in the equity of
L’Oréal, Paris for CHF 1986 million (1999: CHF 1683 million). Its market value at 31st
December 2000 amounts to CHF 24 689 million (1999: CHF 22 814 million).
23
13. Other financial assets

Medium and long term receivables 2 248 2 006

Excess of assets of defined benefit plans 306 272
Other investments 138 153
2 692 2 431
14. Goodwill
Gross value
At 1st January 6 472 6 071
Currency retranslation (126) 213

Goodwill from acquisitions 3 395 374
Other (67) (186)
At 31st December 9 674 6 472
Accumulated amortisation
At 1st January (1 214) (502)
Currency retranslation 19 (37)

Amortisation (414) (384)
a)
of which CHF 212 Impairment (230) (334) (a)
million recognised in
Other 67 43
the income statement
and CHF 122 million by At 31st December (1 772) (1 214)
reclassification of the
related provision.
Net at 31st December 7 902 5 258
24
15. Intangible assets

Intellectual Operating Data
property rights processing
rights and others software Total Total
Gross value
At 1st January 101 652 313 1 066 567
Currency retranslation (2) (1) (3) (6) 58

Expenditures 9 99 80 188 139
Disposals – (2) – (2) –
Modification of the scope of
consolidation (1) 61 (1) 59 (8)
Other – – – – 310
At 31st December 107 809 389 1 305 1 066
Accumulated depreciation
At 1st January (14) (170) (140) (324) (62)
Currency retranslation (3) (16) 2 (17) (5)

Depreciation (3) (103) (73) (179) (92)
Modification of the scope of
consolidation – 30 1 31 2
Other – – – – (167)
At 31st December (20) (259) (210) (489) (324)
Net at 31st December 87 550 179 816 742
16. Trade and other payables

Trade payables 6 170 5 815

Other payables 3 831 3 820
10 001 9 635
25
17. Current financial liabilities

Commercial paper 3 106 1 830

Line of credit facilities 1 751 1 263
Other short term financial liabilities 2 821 4 043
7 678 7 136
Current portion of medium and long term financial liabilities 698 831
8 376 7 967
Short term financial liabilities are mainly denominated in EUR (21%), in USD (34%) and in
GBP (5%). Rates of annual interest range from 5% on EUR to 15% on BRL.
18. Medium and long term financial liabilities

Loans from financial institutions 1 442 1 661

Bonds 3 783 3 994
Obligations under finance leases 241 81
5 466 5 736
Current portion of medium and long term financial liabilities (698) (831)
4 768 4 905
Loans from financial institutions are mainly denominated in USD (59%) and in EUR (20%).
Their annual interest rates range from 4 1⁄2% on EUR to 13% on ZAR. The majority of the loans
are at variable rates. Currencies and interest rates on bonds are disclosed below.
The above medium and long term financial liabilities are repayable as follows:
in the second year 575 657

in the third to fifth year inclusive 4 080 3 370
after the fifth year 113 878
4 768 4 905
26
Bonds in issue which are carried at face value, adjusted for any related currency hedge, are
as follows:
Face value and Interest Year of issue/
currency rate maturity
Bond Issues of Nestlé Holdings, Inc., USA

CHF 300 mio 6 3⁄4% 1992–2002 Subject to interest rate and currency
swaps that create a USD liability at
floating rates. 374 365
USD 250 mio 7 3⁄8% 1995–2005 Subject to an interest rate swaps that
create a liability at floating rates. 409 400
DEM 500 mio 5 1⁄8% 1996–2001 Subject to interest rate and currency
swaps that create a USD liability at
USD 300 mio 3% 1997–2002 Anticipated redemption. The bonds

were convertible into Nestlé S.A.
shares, but subject to an equity and
interest rate swap that hedged the
issuer against its equity exposure and
created a straight USD liability at
floating rates. – 480
USD 250 mio 5 5⁄8% 1998–2003 Subject to an interest rate swap that
creates a liability at floating rates. 410 400
USD 300 mio 3% 2000–2005 Stock Warrants and Applicable

Note Securities (SWANS).
The issue has attached warrants
which give the right to acquire
Nestlé S.A. shares.
The debt component (issue of the
notes) was recognised under bonds
for USD 249 mio at inception, while
the equity component (premium on
warrants issued) was recognised under
equity for USD 51 mio.
Partially subject to an interest rate
swap that creates a liability at floating
rates. 412 –
27

Bond Issues of Nestlé Finance-France S.A., France

ZAR 200 mio 14 3⁄4% 1997–2000 ZAR 100 mio were subject to an
interest rate and currency swap
that created a FRF liability at
floating rates.
ZAR 100 mio were swapped at
floating rate and were re-lent
to a South African affiliated
company. – 55
ZAR 100 mio 12 1⁄2% 2000–2005 Subject to an interest rate swap

that creates a liability at floating
rates. The proceeds have been
relent to a South African
affiliated company. 25 –
Bond Issues of Nestlé (UK) Ltd., United Kingdom

GBP 100 mio 6 3⁄4% 1997–2000 Was subject to an interest rate
swap that created a liability
at floating rates. – 258
USD 250 mio 5% 1998–2003 Subject to an interest rate and

currency swap that creates a
GBP liability at floating rates. 367 388
Bond Issues of Nestlé Australia Ltd., Australia

CHF 300 mio 3% 1996–2000 Was subject to interest rate
and currency swaps that
created an AUD liability at
floating rates. – 350
28

USD 250 mio 1 1⁄4% 1998–2005 Convertible into Nestlé S.A.

shares, but subject to an
equity and interest rate and
currency swap that hedges
the issuer against its equity
and currency exposures and
creates a straight AUD loan
at floating rates. 342 393
Bond Issue of Nestlé Capital Canada, Ltd., Canada

USD 200 mio 5 1⁄2% 1999–2004 Subject to an interest rate
and currency swap that
creates a CAD liability at
Bond Issue of Nestlé Japan, Ltd., Japan

EUR 350 mio 5 1⁄4% 2000-2004 Subject to an interest rate
and currency swap that
creates a JPY liability at
floating rates. 505 –
Other bonds 71 47
Total 3 783 3 994

Due within one year (545) (682)
Due after one year 3 238 3 312
The market value of the above bonds amounts to CHF 3768 million as at 31st December
2000 (1999: CHF 3999 million). This amount represents the market price of the bonds
of CHF 3750 million plus unrealised losses of CHF 18 million on the hedge instruments (see
note 31).
29
19. Employment benefit liabilities

Reconciliation of assets and liabilities recognised in the balance sheet
Post employment
Defined benefit medical benefits
retirement plans and other benefits Total Total
Present value of funded obligations 16 508 217 16 725 16 550

Fair value of plan assets (19 036) (165) (19 201) (20 008)
Excess of liabilities/(assets) of funded

obligations (2 528) 52 (2 476) (3 458)
Present value of unfunded obligations 1 106 679 1 785 1 880
Unrecognised past service cost
of non-vested benefits (2) (5) (7) (10)
Net unrecognised actuarial gains/(losses) 64 1 65 440
Unrecognised assets 2 566 — 2 566 3 291
Defined benefits net liabilities 1 206 727 1 933 2 143
Liabilities from defined contribution plans 621 407
Net liabilities 2 554 2 550
Reflected in the balance sheet as follows:

Other financial assets 306 272
Employee benefits liabilities 2 860 2 822
Net liabilities 2 554 2 550
The plan assets include 1500 Nestlé shares (market value of CHF 6 million), mainly held in
an SMI indexed portfolio (1999: 10 158 shares, market value CHF 30 million), as well as
property occupied by affiliated companies with a fair value of CHF 20 million (1999:
CHF 33 million).
The decrease of the excess of assets is mainly due to the lower effective return on assets as
well as the changes in discount rates.
30
Expenses recognised in the income statement

Post employment
Current service cost 650 42 692 633

Employees’ contributions (111) — (111) (108)
Interest cost 967 58 1 025 890
Expected return on plan assets (1 495) (12) (1 507) (1 227)
Net actuarial gains/(losses) recognised
in year (1) — (1) 2
Early retirements, curtailments,
settlements (4) (1) (5) 22
Past service cost 39 (18) 21 26
Transfer (from)/to unrecognised assets 322 — 322 249
Total defined benefit expenses 367 69 436 487
Total defined contribution expenses 281 230
The expenses for defined benefit and defined contribution plans are allocated to the appro-
priate headings of expenses by function.
Transfer to unrecognised assets represents excess of return of overfunded defined benefit

plans that cannot be recognised as assets as well as contributions paid to such plans in
excess of their annual cost.
Actual return on plan assets 134 3 125
31
Movement of defined benefits net liabilities recognised in the balance sheet

Post employment
At 1st January 1 411 732 2 143 1 975
Currency retranslation (77) (6) (83) 238

Expense recognised in the income statement 367 69 436 487
Contributions (308) – (308) (415)
Benefits paid (158) (37) (195) (144)
Modification of the scope of consolidation 37 (2) 35 2
Transfer from/(to) defined contribution plans (66) (29) (95) –
At 31st December 1 206 727 1 933 2 143
32
Principal actuarial assumptions

At 31st December 2000 1999
Discount rates
Europe 4–6.25% 4.25–6%
Americas 7–18.5% 7.25–18.5%
Asia, Oceania and Africa 3–14% 3–14%
Expected long term rates of return on plan assets

Europe 5.3–8% 5.3–8%
Americas 8–13.5% 8.25–19.7%
Asia, Oceania and Africa 4–14% 4–14%
Expected rates of salary increases

Europe 2–4.5% 1.5–4.5%
Americas 3.5–13% 3.5–17.4%
Asia, Oceania and Africa 0.5–11% 0.5–11%
Expected rates of pension adjustments

Europe 1.25–3.5% 1.25–3%
Americas 1–13% 1–15%
Asia, Oceania and Africa 0.5–9% 0.5–9%
Medical cost trend rates

Americas 4–5% 4–17.4%
Average remaining working life of employees in years

Europe 11–23 11–22
Americas 9–26 9–26
Asia, Oceania and Africa 11–27 12–24
33
20. Equity compensation plan

Following are the movements and expiry dates of the options held by members of the Group’s
Management:
Movement of options
Number Value of Number Value of
of options shares of options shares
Outstanding at 1st January 93 009 178 71 210 105
of which vested 47 478 40 419
a)
of which 164 related New rights 43 150 122 33 492 (a) 87
to prior years. (b)
b)
Average exercise
Rights exercised (41 403) (55) (11 693) (14)
price: CHF 1324.– Rights expired (825) (2) — —
(1999: CHF 1237.–).
Outstanding at 31st December 93 931 243 93 009 178
of which vested 17 922 47 478
The rights are exercised throughout the year in accordance with the rules of the plan.
Expiry dates of options

2000 1999
Exercise Exercise
Number price Number price
one year 70 CHF 1 261 17 327 CHF 1 182

two years 7 193 CHF 1 498 13 031 CHF 1 261
three years 10 659 CHF 2 303 17 120 CHF 1 498
four years — — 12 203 CHF 2 303
five years — — — —
six years 33 019 CHF 2 609 — —
seven years 42 990 CHF 2 819 33 328 CHF 2 609
Total 93 931 93 009
34
21. Deferred taxes

Tax assets by types of temporary differences

Tangible fixed assets 40 41
Intangible assets 190 230
Employee benefits 957 900
Inventories, receivables, payables and provisions 894 739
Unused tax losses and unused tax credits 71 120
Other 300 394
2 452 2 424
Tax liabilities by types of temporary differences

Employee benefits 105 94
Inventories, receivables, payables and provisions 130 126
Other 247 245
1 433 1 458
Net assets 1 019 966
Reflected in the balance sheet as follows:

Deferred tax assets 2 569 2 293
Deferred tax liabilities 1 550 1 327
Net assets 1 019 966
Temporary differences for which no deferred tax is recognised:

on investments in affiliated companies (taxable
on temporary difference) 5 815 4 776
on unused tax losses, tax credits and other items 1 118 820
Unused tax losses expire mainly within 2 to 5 years.
35
22. Provisions
Restructuring Environment Litigation Other Total Total
Introduction of IAS 37 (132)
Restated figures at 1st January 322 74 1 633 128 2 157
Currency retranslation (11) 2 3 5 (1)

Provisions made in the period 166 2 211 66 445
Modification of the scope
of consolidation — — 135 33 168
Amounts used (277) (2) (121) (56) (456)
Unused amounts reversed (6) (6) (64) (33) (109)
At 31st December 194 70 1 797 143 2 204 2 289
At 1st January 1999, this caption included provisions for impairment of assets as well as
certain other liabilities for a total of CHF 491 million. In 1999, this amount has been reclassi-
fied as a reduction of the carrying value of the related assets or shown as accrued liabilities.
23. Share capital of Nestlé S.A.

2000 1999
Number of registered shares of nominal value CHF 10.– each 40 352 000 40 352 000
Additional information is given in the annex to the annual accounts of Nestlé S.A., note 18.
The share capital includes the nominal value of treasury shares (see note 24).
24. Treasury shares

This item represents the book value of treasury shares of Nestlé S.A.:
– 785 262 freely available shares;
– 93 931 shares in order to allow the exercise of option rights by members of the Group’s man-
agement (see note 20);
– 129 419 shares in order to allow the exercise of the warrants issued with the SWANS bond
issue of Nestlé Holdings Inc., USA;
– 490 415 shares held for trading purposes.
The movement of these shares is described in the annex to the annual accounts of Nestlé
S.A., note 20.
36
25. Decrease/(increase) in working capital

Disregarding exchange differences and effect of acquisitions and disposals.
Inventories (165) (15)

Trade receivables (604) (622)
Trade payables 544 364
Other payables (270) 231
Net accruals and deferrals 40 475
Other 87 (198)
(368) 235
26. Acquisitions
Fair value of net assets acquired

Financial assets 93 29
Intangible assets 93 —
Minority interests (19) (68)
Purchase of minority interests in existing participations 49 7
Net working capital (76) 13
Financial liabilities (210) (27)
Employee benefits, deferred taxes and provisions (179) (21)
Liquid assets 37 39
147 109
Goodwill 3 395 374
Total acquisition cost 3 542 483
less:
Cash and cash equivalents acquired (37) (39)
Own shares remitted (298) —
Consideration payable (361) (4)
Cash outflow on acquisitions 2 846 440
37
27. Disposals
Net assets disposed of

Minority interests 7 (11)
Net working capital 247 76
Financial liabilities (147) (38)
Employee benefits, deferred tax and provisions (78) —
Liquid assets 5 —
467 156
Recovery of goodwill on disposals charged to equity
prior to 1st January 1995 51 71
Profit/(loss) on disposals 513 39
Total sale consideration 1 031 266
less:
Cash and cash equivalents disposed of (5) —
Consideration receivable (246) (13)
Cash inflow on disposals 780 253
28. Dividends
Dividends payable are not accounted for until they have been ratified at the Annual General
Meeting. At the meeting on 5th April 2001, the following dividend in respect of 2000 will
be proposed:
Dividend per share CHF 55.–

(a)
a)
Number of shares resulting in a total dividend of CHF 2 171 990 095.–
with right to dividend:
see Annual report of
Nestlé S.A. The accounts for the year ended 31st December 2000 do not reflect this proposed distribution,
which will be treated as an appropriation of profit in the year ending 31st December 2001.
38
29. Foreign exchange hedge instruments

Forward foreign currency sales
Contractual Contractual
or notional Unrealised Unrealised or notional Unrealised Unrealised
amounts gains losses amounts gains losses
Recognised transactions
Forward contracts
and swaps 7 926 169 1 7 869 — 292
Options purchased — — — 1 675 — 6
Options written 1 674 3 — 1 610 — 2
Anticipated future transactions

Forward contracts 615 3 7 647 5 13
Options purchased 37 1 — — — —
Options written — — — 80 — —
Recognised transactions relate to balance sheet positions resulting from liquid assets in
foreign currencies and, to a lesser extent, from export receivables, while anticipated future
transactions refer to expected export sales.
Due to the nature of the Group’s operations, most of the transactions have maturities of
less than one year. They are denominated mainly in USD, in GBP and in EUR.
Forward foreign currency purchases

Recognised transactions
Forward contracts
and swaps 2 988 6 84 2 564 51 7
Options purchased 1 712 — 6 — — —
Options written 1 548 — 8 65 — —
Anticipated future transactions

Forward contracts 1 101 28 7 1 026 — 20
Options purchased 225 1 1 127 2 1
Options written 285 1 1 372 1 —
Recognised transactions are related to balance sheet positions such as suppliers and finan-
cial liabilities, while anticipated future transactions refer to commitments for commodity
and machinery imports.
Due to the nature of the Group’s operations, most of the transactions have maturities of
less than one year. They are denominated mainly in USD, in EUR and in JPY.
39
30. Commodity hedge instruments

Futures 312 3 13 245 9 24

Options purchased 19 1 — 38 — 1
Options written 21 — 1 26 — 1
Commodity hedge instruments are designed to hedge the price risks on the anticipated
purchases of coffee, cocoa and other commodities used for the manufacture of finished
goods.
31. Interest rate instruments

Liquid assets
Interest exposures on liquid assets are hedged by using instruments which have the effect
of altering the average maturities and the interest rates on the underlying positions. The
notional amounts of these instruments and the unrealised gains and losses on revaluation at
market rates are given below:
Contractual or Contractual or
notional Unrealised Unrealised notional Unrealised Unrealised
Interest rate swaps 4 193 5 117 5 116 2 188

Interest rate futures 558 — 1 — — —
These instruments have maturity dates of three months to five years. The instruments
are denominated in CHF, in EUR and in USD with annual interest rates ranging from 2.5% on
CHF to 5.6% on USD.
40
Financial liabilities
The majority of interest rate swaps and interest rate and currency swaps modify the matu-
rities and the interest rates of long term bonds thus creating obligations in the reporting
currency of the issuer (see note 18), while other interest rate and currency swaps, forward
rate agreements and options hedge interest rate exposures of the affiliated companies. The
notional amounts of these instruments and the unrealised gains and losses on revaluation at
market rates are given below:
Contractual or Contractual or
notional Unrealised Unrealised notional Unrealised Unrealised
Interest rate swaps (a) 2 820 75 6 2 510 110 15 a)

Include equity
swaps.
Interest rate and
currency swaps 3 374 157 228 3 527 36 300
Forward rate agreements 1 211 — 1 1 892 57 41
Options purchased 272 1 1 341 — —
Options written 402 — 2 1 003 1 1
These instruments have maturity dates of one month to six years. They are denominated
mainly in USD, CAD, AUD, EUR, GBP and JPY. Their annual interest rates range from 0.5%
on JPY to 6.3% on AUD.
32. Guarantees
In the normal course of business, the Group has given guarantees totalling CHF 436 million
to third parties (1999: CHF 385 million).
33. Commitments for expenditure on tangible fixed assets

At 31st December 2000, the Group was committed to expenditure amounting to CHF 180
million (1999: CHF 137 million).
41
34. Lease commitments

The following charges arise from these commitments:
Operating leases
Minimum lease payments
Future value
within one year 346 280

in the second year 291 246
in the third to fifth year inclusive 648 521
after the fifth year 1 196 1 215
2 481 2 262
Finance leases
Minimum lease payments
Present Future Present Future
value value value value
within one year 22 24 33 35

in the second year 29 33 14 17
in the third to fifth year inclusive 157 177 11 13
after the fifth year 33 43 23 29
241 277 81 94
The difference between the future value of the minimum lease payments and their present
value represents the discount on the lease obligations.
35. Contingent assets and liabilities

The Group is exposed to contingent liabilities amounting to about CHF 400 million repre-
senting various potential litigation. An amount of about CHF 280 million could result in lia-
bilities.
Contingent assets for litigation claims in favour of the Group amount to about CHF 260 mil-
lion.
42
36. Events after the balance sheet date

Creation of a Major International Petcare Business
On 16th January 2001 Nestlé S.A. and Ralston Purina Company announced that they had
entered into a merger agreement. Nestlé will acquire all of the outstanding shares of
Ralston Purina for USD 10.3 billion. The transaction is expected to be completed at the lat-
est by the end of 2001. The agreement is subject to Ralston Purina shareholders' and to
regulatory approval.
At 22nd February 2001, date of the approval of the consolidated accounts by the Board of
Directors, the Group had no subsequent adjusting events that warrant a modification of the
values of assets and liabilities.
37. Transactions with related parties

The Group has not entered into any material transaction with related parties. Furthermore,
throughout 2000, no director had a personal interest in any transaction of significance for
the business of the Group.
38. Nestlé Group Companies

The list of companies appears in the section “Companies of the Nestlé Group”.
43
Principal exchange rates

CHF per 2000 1999 2000 1999
Year end rates Average annual rates
1 US Dollar USD 1.64 1.60 1.69 1.51

1 Euro EUR 1.52 1.61 1.56 1.60
100 French Francs FRF 23.20 24.50 23.70 24.40
100 Deutsche Marks DEM 77.70 82.30 79.50 81.70
1 Pound Sterling GBP 2.44 2.58 2.56 2.43
100 Italian Lira ITL 0.079 0.083 0.080 0.083
100 Brazilian Reais BRL 83.90 88.40 92.40 83.00
100 Spanish Pesetas ESP 0.91 0.97 0.94 0.96
100 Japanese Yen JPY 1.43 1.56 1.57 1.34
100 Mexican Pesos MXN 17.10 16.80 17.90 15.90
1 Canadian Dollar CAD 1.09 1.10 1.14 1.02
1 Australian Dollar AUD 0.91 1.04 0.98 0.97
100 Philippine Pesos PHP 3.27 3.98 3.82 3.85
44
Report of the Group auditors

to the General Meeting of Nestlé S.A
As Group auditors we have audited the Consolidated accounts (balance sheet, income state-
ment, cash flow statement, statement of changes in equity and annex) of the Nestlé Group
for the year ended 31st December 2000.
These Consolidated accounts are the responsibility of the Board of Directors. Our respon-
sibility is to express an opinion on these Consolidated accounts based on our audit. We
confirm that we meet the legal requirements concerning professional qualification and
independence.
Our audit was conducted in accordance with auditing standards promulgated by the
Swiss profession, and with International Standards on Auditing issued by the International
Federation of Accountants (IFAC), which require that an audit be planned and performed to
obtain reasonable assurance about whether the Consolidated accounts are free from material
misstatement. We have examined on a test basis evidence supporting the amounts and dis-
closures in the Consolidated accounts. We have also assessed the accounting principles
used, significant estimates made and the overall Consolidated accounts presentation. We be-
lieve that our audit provides a reasonable basis for our opinion.
In our opinion, the Consolidated accounts give a true and fair view of the financial posi-
tion, the net profit and cash flows and comply in all respects with International Accounting
Standards (IAS) and Swiss law.
We recommend that the Consolidated accounts submitted to you be approved.
Klynveld Peat Marwick Goerdeler SA
S.R. Cormack B.A. Mathers

Chartered accountant Chartered accountant
Auditors in charge
London and Zurich, 22nd February 2001
45
Financial information – ten year review
In millions of CHF (except for per share data) 2000 1999 (e) 1998
Results
Consolidated sales 81 422 74 660 71 747
Trading profit 9 186 7 914 7 081
as % of sales 11.3% 10.6% 9.9%
Taxes 2 761 2 314 2 000
Consolidated net profit 5 763 4 724 4 205
as % of sales 7.1% 6.3% 5.9%
as % of average equity 21.2% 20.0% 19.5%
Total amount of dividend 2 172 (a) 1 694 1 469
Depreciation of tangible fixed assets 2 737 2 597 2 609
as % of sales 3.4% 3.5% 3.6%
Amortisation of goodwill 414 384 301
Balance sheet
Current assets 30 747 27 169 26 467
of which liquid assets 10 131 6 670 7 963
Fixed assets 34 777 31 770 30 236
Total assets 65 524 58 939 56 703
Current liabilities 23 174 22 182 22 567
Medium and long term liabilities and minority interests 12 446 12 304 11 321
Equity 29 904 24 453 22 815
Expenditure on tangible fixed assets 3 305 2 806 3 061
as % of sales 4.1% 3.8% 4.3%
Data per share

Weighted average number of shares outstanding 38 652 783 38 677 213 39 293 665
Consolidated net profit (b) 149.1 122.1 107.0
Equity (b) 774 632 581
Dividend (b) 55.0 (d) 43.0 38.0
Pay-out ratio 36.9% (d) 35.2% 35.5%
Stock exchange prices (high/low) (b) 3893/2540 3107/2508 3498/2122
Yield (c) 1.4/2.2 (d) 1.4/1.7 1.1/1.8
Number of personnel 224 541 230 929 231 881
(a) (b) (d)

As proposed by the Board of Directors Figures prior to 1993 adjusted in order As proposed by the Board of Directors
of Nestlé S.A. This amount includes divi- to make comparable the data per share, of Nestlé S.A..
(e)
dends payable in respect of shares with following a rights issue in June 1993. Figures prior to 2000 have not been
(c)
right to dividend at the balance sheet date Calculated on the basis of the dividend restated following the first application of
(CHF 2137 million) as well as those poten- for the year concerned but which is paid IAS 37 “Provisions, Contingent Liabilities
tially payable on the shares covering out in the following year. and Contingent Assets”.
options and shares held for trading pur-
poses (CHF 35 million).
46
1997 (f) 1996 (g) 1995 1994 (h) 1993 1992 1991
69 998 60 490 56 484 56 894 57 486 54 500 50 486

7 057 6 053 5 658 5 628 5 591 5 384 4 783
10.1% 10.0% 10.0% 9.9% 9.7% 9.9% 9.5%
1 842 1 552 1 561 1 647 1 669 1 745 1 605
4 182 3 592 3 078 3 250 2 887 2 698 2 470
6.0% 5.9% 5.4% 5.7% 5.0% 5.0% 4.9%
21.9% 22.9% 23.3% 19.9% 19.5% 18.4% 17.2%
1 376 1 180 1 043 1 040 972 870 793
2 677 2 305 2 103 2 321 2 283 2 038 1 863
3.8% 3.8% 3.7% 4.1% 4.0% 3.7% 3.7%
140 102 42 – – – –
25 671 23 070 20 927 21 420 20 982 20 670 19 195

8 102 5 860 5 124 5 132 5 084 4 688 4 888
25 910 23 605 19 189 23 807 24 178 23 803 19 795
51 581 46 675 40 116 45 227 45 160 44 473 38 990
20 985 19 859 17 410 17 297 18 166 20 019 14 889
9 990 9 239 8 862 10 986 11 334 10 524 8 731
20 606 17 577 13 844 16 944 15 660 13 930 15 370
3 261 3 054 3 056 3 029 3 093 3 191 2 815
4.7% 5.0% 5.4% 5.3% 5.4% 5.9% 5.6%
39 331 126 39 363 637 39 220 756 38 838 376 37 759 826 36 938 374 36 800 050
106.3 91.3 78.5 83.7 76.5 72.2 66.4
524 557 459 436 415 373 413
35.0 30.0 26.5 26.5 25.0 23.2 21.3
32.9% 32.9% 33.8% 31.7% 32.7% 32.2% 32.0%
2192/1421 1487/1250 1298/1090 1437/1063 1294/1015 1162/857 876/651
1.6/2.5 2.0/2.4 2.0/2.4 1.8/2.5 1.9/2.5 2.0/2.7 2.4/3.3
225 808 221 144 220 172 212 687 209 755 218 005 201 139
(f) (h)
Figures prior to 1998 have not been Figures prior to 1995 have not been
restated following the first application restated to reflect the change from net
of IAS 19 (revised 1998) “Employee replacement values of tangible fixed
Benefits”. assets to historical cost accounting.
(g)
Figures prior to 1997 have not been
restated following the first application of
IAS 12 (revised 1996) “Income tax”.
47
Companies of the Nestlé Group
Operating companies las Commercial and Industrial S.A.* Maroussi 100% • Italy
Principal affiliated companies which operate in the Nestlé ltaliana S.p.A. Milano 99.9% • San Pellegrino S.p.A.
food and water sectors, with the exception of Milano 100% • Alcon Italia S.p.A.* Milano 100% • Friskies
those marked with an asterisk which are engaged Italia S.p.A. Castiglione delle Stiviere 100% • Hungary
in the pharmaceutical sector. Nestlé Hungaria Kft Budapest 100% • Kekkuti Asvanyviz Rt.
Kekkut 68.2% • Norway A/S Nestlé Norge Asker-Oslo 100%
Countries within the continents are listed according to the alphabetical • Netherlands Nestlé Nederland B.V. Amsterdam 100%
order of the French names.
• Alcon Nederland B.V.* Gorinchem 100% • Friskies Nether-
lands B.V. Amsterdam 100% • Poland Goplana S.A. Poznan
1. Affiliated companies for which full consolidation treat- 99.58% • Nestlé Polska S.A. Warsaw 100% • Naleczowianka
ment is applied (see “Scope of consolidation”). Spolka zo.o. Naleczov 33.3% • Winiary S.A. Kalisz 98.79%
• ESI Distribution N.V. Warsaw 50% • Portugal Nestlé Portu-
Europe gal S.A. Linda-a-Velha 100% • Longa Vida S.A. Matosinhos
Germany Nestlé Deutschland AG Frankfurt 97.34% • Blaue 100% • Sociedade das Aguas de Pisoes Moura S.A. Lisboa
Quellen Mineral- und Heilbrunnen AG Rhens am Rhein 100% • Alcon Portugal Produtos e Equipamentos Oftalmo-
90.6% • Trinks GmbH Goslar 90.6% • San Pellegrino logicos, Ltda.* Lisboa 100% • Republic of Ireland Nestlé
Deutschland GmbH Mainz 100% • Alcon Pharma GmbH* (lreland) Ltd Tallaght-Dublin 100% • Friskies Petcare (Ireland)
Freiburg/Breisgau 100% • Austria Nestlé Österreich GmbH Ltd Dublin 100% • Czech Republic Nestlé Food S.r.o. Praha
Wien 100% • Belgium Nestlé Belgilux S.A. Bruxelles 100% 100% • Nestlé Cokoladovny a.s. Praha 99.5% • Romania
• Perrier Vittel Belgilux S.A. Etalle 100% • Alcon-Couvreur Nestlé Romania S.R.L. Bucarest 100% • Joe I.B.C. S.R.L.
S.A.* Puurs 100% • S.A. Friskies Belgilux N.V. Bruxelles Timisoara 100% • United Kingdom Nestlé UK Ltd Croydon
100% • Bulgaria Nestlé Sofia A.D. Sofia 99.86% • Denmark 100% • Perrier Vittel UK Ltd Rickmansworth 100% • Buxton
Nestlé Danmark A/S København 100% • Friskies Danmark Mineral Water Company Ltd Rickmansworth 100% • Alcon
A/S København 100% • Spain Nestlé España S.A. Barcelona Laboratories (UK) Ltd* Herts 100% • Friskies Petcare (UK)
100% • Productos del Café S.A. Reus 100% • Davigel España Ltd New Malden 100% • Russia JSC Confectionery Union
S.A. Palma de Mallorca 100% • Pycasa – La Cocinera Torre- Rossiya Samara 97.6% • Nestlé Zhukovsky Ice Cream LLC
jon de Ardoz 100% • EYCAM Perrier S.A. Barcelona 100% Zhukovsky 87.5% • Nestlé Food LLC Moscow 100% • OJSC
• Alcon-Cusi S.A.* Barcelona 100% • Helados Miko S.A. Vito- Confectionery Firm Altai Barnaul 89.2% • OJSC Kamskaya
ria 100% • Compañía Avidesa S.A. Alzira 100% • Friskies Es- Perm 86.7% • JSC Khladoproduct Timashevsk 89.4% • Slo-
paña S.A. Espluguas de Llobregat 100% • Finland Suomen vakia Nestlé Food S.r.o. Prievidza 100% • Sweden Nestlé
Nestlé Oy Helsinki 100% • Friskies Finland Oy Helsinki 100% Sverige AB Helsingborg 100% • Zoegas Kaffe AB Helsing-
• France Nestlé France S.A. Noisiel 100% • Nestlé Grand borg 100% • Jede AB Mariestad 100% • Alcon Sverige AB*
Froid S.A. Noisiel 100% • Nestlé Clinical Nutrition S.A. Nois- Bromma 100% • Friskies Sverige AB Malmö 100% • Switzer-
iel 100% • Nestlé Produits Laitiers Frais Noisiel 99.9% land Société des Produits Nestlé S.A. Vevey 100% • Nestlé
• Herta S.A. Noisiel 100% • Davigel S.A. Martin-Eglise 100% Suisse S.A. Vevey 100% • Perrier Vittel Suisse S.A. Gland
• Food Ingredients Specialities France S.A. Noisiel 100% 100% • Alcon Pharmaceuticals Ltd* Hünenberg 100%
• Perrier Vittel France Paris 100% • S.A. des Eaux Minérales • Nestlé World Trade Corporation La Tour-de-Peilz 100%
de Ribeauvillé Ribeauvillé 99.5% • Société Conditionnement • Food Ingredients Specialities S.A. Villars-sur-Glâne 100%
et Industrie S.A. Bernay 77.9% • Eau Minérale Naturelle de • Nestlé Nespresso S.A. Paudex 100% • Nestlé International
Plancoët "Source Sassay” S.A. Plancoët 100% • Nespresso Travel Retail S.A. Châtel-St-Denis 100% • Turkey Nestlé Gida
France S.A. Paris 100% • Nestlé Clinical Nutrition S.A. Sanayi A.S. Istanbul 100% • Alcon Labaratuariani A.S.* Is-
Sèvres 100% • Laboratoires Alcon S.A.* Rueil-Malmaison tanbul 100% • Ukraine JSC Lviv Confectionery Firm Svitoch
100% • Friskies France Rueil-Malmaison 100% • Greece Lviv 91.61%.
Nestlé Hellas S.A. Maroussi 100% • Alcon Laboratories Hel-
48
Africa Waters of America, Inc. Wilmington (Delaware) 100%

South Africa Nestlé (South Africa) (Pty) Ltd Randburg-Jo- • Nestlé Puerto Rico, Inc. San Juan (Puerto Rico) 100%
hannesburg 100% • Friskies Petcare (Pty) Ltd Pretoria 100% • Alcon Laboratories, Inc.* Fort Worth (Texas) 100% • Alcon
• Valvita (Pty) Ltd Gauteng 100% • Alcon Laboratories (South (Puerto Rico), Inc.* San Juan (Puerto Rico) 100% •
Africa) Pty Ltd* Randburg 100% • Cameroon Nestlé Camer- Guatemala Nestlé Guatemala S.A. Guatemala 100% • Hon-
oun Douala 99.6% • Ivory Coast Nestlé Côte d’Ivoire Abi- duras Nestlé Hondureña S.A. Tegucigalpa 100% • Jamaica
djan 85.4% • Egypt Nestlé Egypt S.A.E. Cairo 100% • Dolce Nestlé-JMP Jamaica Ltd Kingston 100% • Cremo Ltd
S.A.E. Cairo 100% • Industrie du Froid S.A.E. Kaliub-Cairo Kingston 100% • Mexico Nestlé Mexico S.A. de C.V. México
100% • Société des eaux minérales Vittor S.A.E. Cairo 98.6% 100% • Manantiales La Asuncion, S.A. de C.V. México 100%
• Gabon Nestlé Gabon Libreville 90% • Ghana Nestlé Ghana • Alcon Laboratorios S.A. de C.V.* México 100% • Nicaragua
Ltd Tema-Accra 51% • Guinea Nestlé Guinée Conakry 99% Productos Nestlé (Nicaragua) S.A. Managua 100% • Panama
• Kenya Nestlé Foods Kenya Ltd Nairobi 100% • Mauritius Nestlé Panamá S.A. Panamá City 100% • Nestlé Caribbean,
Nestlé’s Products (Mauritius) Ltd Port Louis 100% • Moroc- Inc. Panamá City 100% • Paraguay Nestlé Paraguay S.A.
co Nestlé Maroc S.A. El Jadida 94.5% • Nigeria Nestlé Nige- Asunción 100% • Peru Nestlé Perú S.A. Lima 93.1% • Do-
ria PLC Ilupeju-Lagos 57% • Senegal Nestlé Sénégal Dakar minican Republic Nestlé Dominicana S.A. Santo Domingo
100% • Tunisia Nestlé Tunisie Tunis 59.2% • Zimbabwe 97% • Trinidad and Tobago Nestlé Trinidad and Tobago Ltd
Nestlé Zimbabwe (Pvt) Ltd Harare 100%. Port of Spain 100% • Uruguay Nestlé del Uruguay S.A. Mon-
tevideo 100% • Venezuela Nestlé Venezuela S.A. Caracas
Americas 100% • Caramelos Royal C.A. Barquisimeto 100%.
Argentina Nestlé Argentina S.A. Buenos Aires 100% • Eco
de Los Andes S.A. Buenos Aires 50.9% • Alcon Laboratorios Asia
Argentina S.A.* Buenos Aires 100% • Bolivia Nestlé Bolivia Saudi Arabia Saudi Food Industries Co. Ltd Jeddah 51%
S.r.l. La Paz 100% • Brazil Nestlé Brasil Ltda. São Paulo • Bangladesh Nestlé Bangladesh Ltd Dhaka 100% • Cambo-
100% • Industrias Alimenticias Itacolomy S/A Montes Claros dia Nestlé Dairy (Cambodia) Ltd Phnom Penh 80% • United
100% • Companhia Produtora de Alimentos Itabuna 100% Arab Emirates Nestlé Middle East FZE Dubai 100% • India
• Perrier Vittel do Brasil Ltda. Rio de Janeiro 100% • Alcon Nestlé India Ltd New Delhi 51.2% • Indonesia P.T. Nestlé In-
Laboratorios do Brasil S.A.* São Paulo 100% • Canada donesia Jakarta 86.9% • P.T. Nestlé Beverages Indonesia
Nestlé Canada, Inc. North York-Toronto (Ontario) 100% • Mid- Jakarta 70% • Israel OSEM Investments Ltd Petach-Tikva
west Food Products, Inc. Toronto (Ontario) 50% • The Perrier 50.1% • Japan Nestlé Japan Ltd Kobe 100% • Nestlé Mack-
Group of Canada Ltd Toronto (Ontario) 100% • Alcon Canada, intosh K.K. Kobe 100% • Alcon Japan Ltd* Tokyo 100% • Jor-
Inc.* Mississauga (Ontario) 100% • Chile Nestlé Chile S.A. dan Nestlé Jordan Trading Co. Ltd Amman 49% • Kuwait
Santiago de Chile 99.5% • Alcon Laboratorios Chile Limitada* Nestlé Kuwait General Trading Co. W.L.L. Kuwait 49%
Santiago 100% • Colombia Nestlé de Colombia S.A. Bogotá • Lebanon Société pour l’Exportation des Produits Nestlé
100% • Cicolac Ltda. Bogotá 100% • Laboratorios Alcon de S.A. Beyrouth 100% • SOHAT Distribution S.A.L. Hazmieh
Colombia S.A.* Santafé de Bogotá 100% • Costa Rica Nestlé 49% • Malaysia Nestlé (Malaysia) Bhd. Petaling Jaya 59.2%
Costa Rica S.A. San José 100% • Cuba Los Portales S.A. • Nestlé Foods (Malaysia) Sdn. Bhd. Petaling Jaya 59.2%
Guane 50% • El Salvador Nestlé El Salvador S.A. San Sal- • Nestlé Products Sdn. Bhd. Petaling Jaya 59.2% • Nestlé
vador 100% • Ecuador Nestlé Ecuador S.A. Quito 74.7% Asean (Malaysia) Sdn. Bhd. Petaling Jaya 56.2% • Nestlé
• Neslandina S.A. Quito 74.7% • United States Nestlé USA, Cold Storage (Malaysia) Sdn. Bhd. Petaling Jaya 59.2% •
Inc. Los Angeles (California) 100% • Nestlé USA - Food Pakistan Milkpak Ltd Lahore 59.1% • Philippines Nestlé
Group, Inc. Solon (Ohio) 100% • Nestlé USA - Beverage Divi- Philippines, Inc. Cabuyao 100% • Hidden Springs & Perrier,
sion, Inc. Los Angeles (California) 100% • FIS - North Ameri- Inc. Makati City 100% • Alcon Laboratories (Philippines) Inc.*
ca, Inc. Wilmington (Delaware) 100% • The Perrier Group of Manila 100% • Republic of Korea Nestlé Korea Ltd
America, Inc. Greenwich (Connecticut) 100% • Great Spring Cheongju 100% • Alcon Korea Ltd* Seoul 100% • People’s
49
Republic of China Nestlé Shuangcheng Ltd Shuangcheng 2. Affiliated companies for which the method of propor-
97% • Nestlé Dongguan Ltd Dongguan 100% • Maggi Dong- tionate consolidation is used (see "Scope of consolida-
guan Ltd Dongguan 100% • Nestlé Tianjin Ltd Tianjin 100% tion”).
• Nestlé Qingdao Ltd Qingdao 100% • Nestlé Shanghai Ltd
Shanghai 95% • Nestlé Dairy Farm Tianjin Ltd Tianjin 100% • Europe
Nestlé Dairy Farm Qingdao Ltd Qingdao 100% • Nestlé Dairy Germany C.P.D. Cereal Partners Deutschland GmbH & Co.
Farm Guangzhou Ltd Guangzhou 94% • Guangzhou Refriger- OHG Frankfurt 50% • Galderma Laboratorium GmbH*
ated Foods Ltd Guangzhou 90% • Shanghai Fuller Foods Co. Freiburg/Breisgau 50% • Spain Cereal Partners España AEIE
Ltd Shanghai 100% • Shanghai Nestlé Product Services Ltd Esplugas de Llobregat 50% • Laboratorios Galderma S.A.*
Shanghai 97% • Shanghai Totole Flavouring Food Co. Ltd Madrid 50% • France Cereal Partners France SNC Noisiel
Shanghai 80% • Shanghai Jiale Flavouring Food Sales Co. 50% • Laboratoires Galderma S.A.* Levallois-Perret 50%
Ltd Shanghai 100% • Nestlé Source Shanghai Ltd Shanghai • Italy Galderma Italia S.p.A.* Milano 50% • Poland Torun-
100% • Nestlé Hong Kong Ltd Hong Kong 100% • Nestlé Pacific Cereal Partners Poland Sp. zo.o. Torun 50% • Portu-
Dairy Farm Hong Kong Ltd Hong Kong 100% • Alcon (China) gal Cereal Associados Portugal AEIE Oeiras 50% • Sweden
Ophthalmic Product Co., Ltd* Beijing 100% • Alcon Hong Galderma Svenska AB* Bromma 50% • United Kingdom
Kong Ltd* Hong Kong 100% • Singapore Nestlé Singapore Cereal Partners UK Welwyn Garden City 50% • Galderma
(Pte) Ltd Singapore 100% • Alcon Pte. Ltd* Singapore 100% (U.K.) Ltd* Amersham 50% • Switzerland CCNR Europe S.A.
• Sri Lanka Nestlé Lanka Ltd Colombo 90.8% • Syria Nestlé Brüttisellen 50%.
Syria S.A. Damascus 75% • Taiwan Nestlé Taiwan Ltd Taipei
100% • Alcon Pharmaceuticals Ltd* Taipei 100% • Thailand Africa
Nestlé Products (Thailand), Inc. Bangkok 100% • Nestlé South Africa Dairymaid-Nestlé (Pty) Ltd Johannesburg 50%.
Asean (Thailand) Ltd Bangkok 80.1% • Quality Coffee Prod-
ucts Ltd Bangkok 49% • Nestlé Foods (Thailand) Ltd Bangkok Americas
100% • Nestlé Trading (Thailand) Ltd Bangkok 49% • Nestlé Argentina Galderma Argentina S.A.* Buenos Aires 50%
Manufacturing (Thailand) Ltd Bangkok 100% • Nestlé Ice • Brazil Galderma Brasil Ltda* São Paulo 50% • Canada Gal-
Cream (Thailand) Ltd Bangkok 69% • Nestlé Dairy (Thailand) derma Canada Inc.* Markham 50% • Chile Cereales CPW
Ltd Bangkok 55.4% • Alcon Laboratories (Thailand) Ltd* Chile Ltda Santiago de Chile 50% • United States Coca-Cola
Bangkok 100% • Vietnam Nestlé Vietnam Ltd Bien Hoa Nestlé Refreshments Company, USA Atlanta (Georgia) 50%
100% • Long An Mineral Water Joint Venture Company Tan • Ice Cream Partners USA, LLC Wilmington (Delaware) 50%
An 65%. • Galderma Laboratories, Inc.* Fort Worth (Texas) 50%
• Mexico CPW México S.A. de C.V. México 50% • Galderma
Oceania Mexico S.A. de C.V.* México 50%.
Australia Nestlé Australia Ltd Sydney 100% • Petersville
Australia Ltd Melbourne 100% • Nestlé Echuca Pty Ltd Mel- Asia
bourne 100% • FIS Australia Pty Ltd Sydney 100% • Alcon People’s Republic of China Coca-Cola Nestlé Refresh-
Laboratories (Australia) Pty Ltd* Frenchs Forests (NSW) ments Pacific Hong Kong 50% • Republic of Korea Coca-
100% • Fiji Nestlé (Fiji) Ltd Ba 74% • New Caledonia Nestlé Cola Nestlé Refreshments Korea Seoul 50% • Thailand
Nouvelle-Calédonie S.A. Nouméa 100% • New Zealand Coca-Cola Nestlé Beverages Thailand Ltd Bangkok 33.7% .
Nestlé New Zealand Ltd Auckland 100% • Papua-New
Guinea Nestlé (PNG) Ltd Lae 100% • French Polynesia
Nestlé Polynesia S.A. Papeete 100%. Principal associated companies which operate in the
food and water sectors, with the exception of those
marked with an asterisk which are engaged in the cos-
metics and dermatology sectors.
50
For which the equity method is used – see "Scope of its subsidiary companies. The companies and units
consolidation”. involved are:
Europe Research centres

Germany Mineralbrunnen Überkingen-Teinach AG Bad France Nestlé Research Centre Plant Science Tours
Überkingen 30.11% • France L’Oréal S.A.* Paris 26.3% • Switzerland Nestlé Research Centre Lausanne.
• Houdebine S.A. Noyal-Pontivy 50% • S.B.E.C.M. Société de
Bouchages Emballages Conditionnement Moderne S.à.r.l. Product Technology Centres and Research & Devel-
Lavardac 50%. opment centres
Germany Nestlé R&D Center Lebensmittelforschung GmbH
Americas Weiding • Ivory Coast Centre R&D Nestlé Abidjan • United
United States Floridian Groves, Inc. Tampa (Florida) 40%. States Nestlé Product Technology Center New Milford (Con-
necticut) • Nestlé R&D Center, Inc. Marysville (Ohio) • Nestlé
Asia R&D Center, Inc. Solon (Ohio) • Friskies Product Technology
Malaysia Premier Milk (Malaysia) Sdn. Bhd. Kuala Lumpur Center St. Joseph (Missouri) • Alcon Research Ltd* Forth
25%. Worth (Texas ) • Galderma R&D Inc.* Cranbury (New Jersey)
• France Nestlé Product Technology Centre Beauvais
Sub-holding, financial and property companies • Nestlé Product Technology Centre Lisieux • Centre R&D
Bahamas Nestlé’s Holdings Ltd Nassau 100% • Food Prod- Friskies S.A. Amiens • Galderma R&D S.n.c.* Sophia Antipolis
ucts (Holdings) Ltd Nassau 100% • United States Nestlé • United Kingdom Nestlé Product Technology Centre York
Holdings, Inc. Stamford (Connecticut) 100% • Nestlé Capital • Singapore Nestlé R&D Center (Pte) Ltd Singapore
Corporation Stamford (Connecticut) 100% • France Nestlé • Switzerland Nestlé Product Technology Centre Kemptthal
Entreprises S.A. Noisiel 100% • Nestlé Finance France S.A. • Nestlé Product Technology Centre Konolfingen • Nestlé
Noisiel 100% • Perrier Vittel S.A. Paris 100% • Société Immo- Product Technology Centre Orbe.
bilière de Noisiel Noisiel 100% • Panama Unilac, Inc.
Panamá City 100% • Portugal Nestlé Portugal SGPS, Lda.
Linda-a-Velha 100% • United Kingdom Nestlé Holdings
(U.K.) PLC Croydon 100% • Friskies Holding (UK) Ltd Croydon
100% • Switzerland Entreprises Maggi S.A. Kemptthal
100% • Nestlé Finance S.A. Cham 100% • Rive-Reine S.A. La
Tour-de-Peilz 100% • S.I. En Bergère Vevey S.A. Vevey 100%
• Alcon Universal S.A.* Hünenberg 100% • Galderma Pharma
S.A.* Lausanne 50%.
Technical assistance, research and development

companies
Nestec Ltd., Vevey (Switzerland)
Technical, scientifc, commercial and business assistance
company whose units, specialised in all areas of the
business, supply permanent know-how and assistance to
operating companies in the Group within the framework
of licence and equivalent contracts. It is also responsible
for all scientific research and technological development,
which it undertakes itself or has done on its behalf by
51
54 Income statement for the year 2000

55 Balance sheet at 31st December 2000
56 Annex to the annual accounts of Nestlé S.A.
59 Notes to the annual accounts
67 Proposed appropriation of profit
68 Report of the statutory auditors
69 Agenda for the 134th Ordinary General Meeting of Nestlé S.A.
70 Important dates
71 Shareholder information
Income statement for the year 2000
Income
Income from Group companies 1 4 761 3 771
Interest income 2 550 123
Profit on disposal of fixed assets 3 1 460 97
Other income 22 16
Total income 6 793 4 007
Expenses
Investment write downs 4 887 558
Administration and other expenses 5 135 126
Interest expense 6 26 22
Provision for uninsured risks – 15
Total expenses before taxes 1 048 721
Profit before taxes 5 745 3 286

Taxes 7 380 294
Profit for the year 19 5 365 2 992
54
Balance sheet at 31st December 2000

before appropriations
Assets
Current assets
Liquid assets 8 2 523 2 845
Receivables 9 3 237 3 988
Prepayments and accrued income 66 44
Total current assets 5 826 6 877
Fixed assets
Financial assets 10 16 426 11 798
Intangible assets 13 – –
Tangible fixed assets 14 – –
Total fixed assets 16 426 11 798
Total assets 22 252 18 675
Liabilities and equity
Liabilities
Short term payables 15 213 196
Accruals and deferred income 233 249
Long term payables 16 256 271
Provisions 17 873 990
Total liabilities 1 575 1 706
Equity
Share capital 18/19 404 404
Legal reserves 19 6 392 6 392
Special reserve 19 8 512 7 180
Retained earnings 19 5 369 2 993
Total equity 19 20 677 16 969
Total liabilities and equity 22 252 18 675
55
Annex to the annual accounts of Nestlé S.A.
Accounting policies Income statement

Income due at the balance sheet date, but not currently
General transferable is recognised only upon receipt. Dividends
Nestlé S.A. (the Company) is the ultimate holding com- paid out of pre-acquisition profits are not included under
pany of the Nestlé Group which comprises subsidiaries, income from Group companies; instead they are credited
associated companies and joint ventures throughout the against the carrying value of the participation.
world. The accounts are prepared in accordance with ac- In accordance with Swiss law and the Company’s ar-
counting principles required by Swiss law. They are also ticles of association, dividends are treated as an appro-
prepared under the historical cost convention and on the priation of profit in the year in which they are ratified at
accruals basis. There have been no changes in account- the Annual General Meeting and subsequently paid,
ing policies during the year. rather than as an appropriation of profit in the year to
which they relate.
Foreign currency translation
Transactions in foreign currencies are recorded at the Taxes
rate of exchange at the date of the transaction or, if This caption includes taxes on profit, capital and with-
hedged forward, at the rate of exchange under the relat- holding taxes on transfers from Group companies.
ed forward contract. Assets and liabilities in foreign cur-
rencies are translated at year end rates. Any resulting ex- Financial assets
change differences are included in the respective income The carrying value of participations and loans comprises
statement captions depending upon the nature of the the cost of investment, excluding the incidental costs of
underlying transactions. The aggregate unrealised ex- acquisition, less any write downs.
change difference is calculated by reference to original Participations located in countries where the politi-
transaction date exchange rates and includes hedging cal, economic or monetary situation might be considered
transactions. Where this gives rise to a net loss, it is to carry a greater than normal level of risk are carried at
charged to the income statement whilst a net gain is de- a nominal value of one franc.
ferred. Participations and loans are written down on a con-
servative basis, taking into account the profitability of
Hedging the company concerned.
The Company uses forward foreign exchange contracts, Marketable securities are valued at the lower of cost
options, financial futures and currency swaps to hedge and market value.
foreign currency flows and positions. Unrealised foreign
exchange differences on hedging instruments are Intangible assets
matched and accounted for with those on the underlying Trademarks and other industrial property rights are writ-
asset or liability. Long term loans, in foreign currencies, ten off on acquisition or exceptionally over a longer peri-
used to finance investments in participations are gener- od. In the consolidated accounts of the Group this item
ally not hedged. has a different treatment.
The Company also uses interest rate swaps to man-
age interest rate risk. The swaps are accounted for at fair Tangible fixed assets
value at each balance sheet date and changes in the The Company owns land and buildings which have been
market value are recorded in the income statement. depreciated in the past to one franc. Office furniture and
equipment is fully depreciated on acquisition.
56
Provisions Prepayments and accrued income

Provisions recognise contingencies which may arise and Prepayments and accrued income comprise payments
which have been prudently provided. A provision for made in advance relating to the following year, and in-
uninsured risks is constituted to cover general risks not come relating to the current year which will not be re-
insured with third parties, such as consequential loss. ceived until after the balance sheet date (such as interest
Provision for Swiss taxes is made on the basis of the receivable on loans or deposits). Revaluation gains on
Company’s taxable capital, reserves and profit for the open forward exchange contracts at year end rates, as
year. A general provision is maintained to cover possible well as the result of the valuation of interest rate swaps,
foreign taxes liabilities. are also included in this caption.
Employee benefits Accruals and deferred income

Employees are eligible for retirement benefits under a Accruals and deferred income comprise expenses relat-
defined benefit plan provided through separate funds. ing to the current year which will not be paid until after
the balance sheet date and income received in advance,
relating to the following year. Revaluation losses on open
forward exchange contracts at year end rates, as well as
the result of the valuation of interest rate swaps, are also
included in this caption.
57
Notes to the annual accounts
1. Income from Group companies

This represents dividends of the current and prior years and other net income from Group
companies.
2. Interest income
Net result on loans to Group companies 456 107

Other 94 16
550 123
The improvement is mainly due to the favourable evolution of foreign exchange and interest
rate hedge instruments as compared with last year. Income received in 2000, both on the
loans and on investments, have also increased.
3. Profit on disposal of fixed assets

This represents mainly the net gains realised on the sale of participations to Group compa-
nies as part of reorganisation programmes, as well as on the sale of trademarks and other
industrial property rights previously written down.
4. Investment write downs

Participations and loans 664 500

Trademarks and other industrial property rights 223 58
887 558
The write downs of participations and loans in 2000 derive from a conservative policy of
valuation, based on the political, economic and monetary situation of the countries where
the participations are located, as well as on the profitability of the companies concerned.
The write downs of trademarks and other industrial property rights in 2000 refer mainly to
trademarks acquired from Group companies.
59
5. Administration and other expenses

Salaries and welfare expenses 41 54

Other expenses 94 72
135 126
6. Interest expense
Interest on long term debenture 17 15

Other interest 9 7
26 22
7. Taxes
Includes withholding taxes on income from foreign sources, as well as Swiss taxes for
which adequate provisions have been established.
8. Liquid assets
Cash and cash equivalents 1 331 751

Short term investments – 1 511
Marketable securities 1 192 583
2 523 2 845
60
9. Receivables
Amounts owed by Group companies

Short-term treasury loans 2 832 3 607
Current accounts 374 370
Provision for amounts not currently transferable – –
3 206 3 977
Other receivables (including withholding tax) 31 11
3 237 3 988
Short-term treasury loans are advanced to Group companies with the intention of investing
liquid funds at competitive rates, thus replacing external borrowings. The amount owed to
the Company in respect of Swiss withholding tax was received after the year-end.
10. Financial assets

Participations in Group companies (see note 11) 10 900 7 373

Finance loans to Group companies (see note 12) 4 282 4 247
Own shares 1 029 178
Other investments 215 –
16 426 11 798
Own shares of the Company are:

– held in order to allow the exercise of option rights by members of the Group’s Manage-
ment (93 931 options were outstanding at the close of 2000, of which 17 922 may be
exercised in the year 2001);
– earmarked to cover warrants attached to a bond issue of an affiliated company (129 419
shares);
– acquired for trading purposes (130 611 shares).
61
11. Participations in Group companies


Increase 4 191 761
Write downs (664) (500)
The increase in participations represents in particular:

– additional funding, through capital increases, of a number of Group companies mainly in
Belgium and People’s Republic of China;
– the purchase, on the stock exchange or from third parties, of shares of some of our affil-
iated companies, to increase the participations already held, mainly in Indonesia, Poland,
Turkey and Malaysia;
– the purchase from affiliated companies of certain existing participations.
The carrying value of participations continues to represent a conservative valuation having

regard to both the income received by the Company and the net assets of the Group com-
panies concerned.
A list of the most important companies held, either directly by Nestlé S.A. or indirectly
through other Group companies, with the percentage of the capital controlled, is given in
the section “Consolidated accounts of the Nestlé Group”.
A Canadian affiliate has been granted options to purchase shares in certain Group compa-
nies situated outside Continental Europe.
12. Finance loans to Group companies


New loans 1 413 1 405
Repayments and write downs (1 178) (543)
Realised exchange differences 38 22
Unrealised exchange differences (238) 251
Finance loans are usually for the long term and finance investments in participations.
62
13. Intangible assets

All intangible assets have been fully written off.
14. Tangible fixed assets

These are principally the land and buildings at Cham and at La Tour-de-Peilz. Nestlé Suisse
S.A., the principal operating company in the Swiss market, is the tenant of the building at
La Tour-de-Peilz. The “En Bergère” head office building in Vevey is held by a property com-
pany, which is wholly owned by Nestlé S.A.
The fire insurance value of buildings, furniture and office equipment amounted to CHF 22
million at 31st December 2000 and 1999.
15. Short term payables

Amounts owed to Group companies 183 188

Other payables 30 8
213 196
16. Long term payables

Amounts owed to Group companies 256 271

Other payables – –
256 271
Amounts owed to Group companies represent a long-term bond issued in 1989, whose car-
rying value decreased by CHF 15 million to CHF 256 million as a result of an unrealised
exchange difference arising in 2000.
63
17. Provisions
Provision for uninsured risks 475 475

Provision for exchange risks 162 327
Provision for Swiss and foreign taxes 203 156
Other provisions 33 32
873 990
In the consolidated accounts of the Group the provisions are recognised in accordance with
International Accounting Standards (IAS).
The provision for exchange risks includes the unrealised net exchange gains on the revalua-
tion of foreign exchange positions and any associated forward cover at the year-end.
18. Share capital

2000 1999
Number of registered shares of nominal value CHF 10 each 40 352 000 40 352 000
According to article 6 of the Company’s articles of association, no natural person or legal

entity can be registered as a shareholder with voting rights for shares held directly or indi-
rectly for more than 3% of the share capital. In addition, article 14 provides that, on exercis-
ing the voting rights, no shareholder, through shares owned or represented, may aggregate,
directly or indirectly, more than 3% of the total share capital.
At 31st December 2000, the Share Register showed 161 827 registered shareholders. If
unprocessed applications for registration and the indirect holders of shares under American
depositary receipts are also taken into account, the total number of shareholders probably
exceeds 250 000. The Company was not aware of any shareholder holding, directly or indi-
rectly, 3% or more of the share capital.
Conditional increase in share capital

According to the articles of association, the share capital can be increased, by the exercise
of conversion or option rights, by a maximum of CHF 10 000 000 through the issue of a
maximum of 1 000 000 registered shares with a nominal value of CHF 10.– each, fully paid-
up. Thus the Board of Directors has at its disposal a flexible instrument enabling it, if neces-
sary, to finance the activities of the Company through convertible or option loans.
64
19. Changes in equity

In millions of CHF
Reserve
Share General for own Special Retained
(a)
capital reserve shares (a)(b) reserve earnings Total (a)
The general reserve
and the reserve for
own shares constitute
At 1st January 2000 404 3 519 2 873 7 180 2 993 16 969 the legal reserves.
Appropriation of profit to (b)
See note 20
special reserve 1 295 (1 295)
Profit for the year 5 365 5 365
Dividend for 1999 (1 657) (1 657)
Movement of own shares 641 (641)
Dividend on own shares held
on the payment date of
dividend 1999 36 (36)
Dividend on own shares in
respect of which the
corresponding option rights
were not exercised by the
payment date of 1999 dividend 1 (1)
At 31st December 2000 404 4 160 2 232 8 512 5 369 20 677
65
20. Reserve for own shares

At 31st December 1999, the reserve for own shares amounting to CHF 2 873 million, repre-
sented the cost of 928 940 freely available shares acquired by a Group company, as well as
93 009 shares reserved to cover option rights in favour of members of the Group’s
Management and 923 345 shares held for trading purposes.
During the year, a total of 355 622 shares have been acquired at a cost of CHF 1 208 million
and 700 566 shares have been sold for a total amount of CHF 2 268 million (of which, 41 403
shares for the options that have been exercised during the year). Moreover, 101 323 shares
(CHF 298 million) have been used in relation to the PowerBar acquisition.
At 31st December 2000, the shareholding of a Group company was 785 262 freely available
shares (at an acquisition cost of CHF 31.7 million). These shares are available to be used in
any way which, in the opinion of the Board of Directors, would be in the best interests of
the Company and its shareholders. As long as these shares are held by the Group company,
they will be recorded in the Share Register as being without voting rights and will not rank
for dividends. In addition, 490 415 shares were held for trading purposes, 93 931 shares
were reserved to cover option rights in favour of members of the Group’s Management and
129 419 shares were earmarked to cover warrants attached to a bond issue of an affiliated
company. As long as the options and warrants are not exercised, or the shares sold, these
shares are also recorded in the Share Register as being without voting rights and do not
rank for dividends.
The total of 1 499 027 own shares held at 31st December 2000 represents 3.7% of Nestlé
S.A. share capital.
21. Contingencies
At 31st December 2000 and 1999, the total of the guarantees for credit facilities granted to
Group companies, together with the buy-back agreements relating to notes issued, amount-
ed to CHF 5 031 million and CHF 3 835 million, respectively.
66
Proposed appropriation of profit
In CHF 2000 1999
Retained earnings
Balance brought forward 4 188 706 658 341
Profit for the year 5 365 160 086 2 992 288 841
5 369 348 792 2 992 947 182
We propose the following appropriations:

Allocation to the special reserve 3 195 000 000 1 295 000 000
Dividend for 2000, CHF 55.– per share

on 38 852 973 shares (1999: CHF 43.–
on 38 406 706 shares) 2 136 913 515 1 651 488 358
Dividend for 2000, CHF 55.– per share on
17 922 shares reserved for the option
rights which may be exercised in the
year 2001, on 129 419 shares to cover
warrants attached to a bond issue and on
490 415 shares held for trading purposes (a) (a)
The dividends on
(b) those shares for which
(1999: CHF 43.– on 983 026 shares) 35 076 580 42 270 118
the option rights will
5 366 990 095 2 988 758 476 not have been exer-
cised by the date of
the dividend payment
Balance to be carried forward 2 358 697 4 188 706 will be transferred to
the special reserve.
Dividends on shares
held for trading pur-
poses and to cover
warrants issued, and
which are still held at
the date of the divi-
dend payment will also
be transferred to the
special reserve.
(b)
Of the total of
CHF 42 270 118,
CHF 5 584 238 were
actually paid as divi-
dends, whilst the
balance of
CHF 36 685 880 has
been transferred to the
special reserve.
If you accept this proposal, the gross dividend will amount to CHF 55.– per share. After
deduction of the federal withholding tax of 35%, a net amount of CHF 35.75 per share will be
payable as from Wednesday, 11th April 2001 by bank transfer to the shareholder’s account or
by cheque, in accordance with instructions received from the shareholder.
Cham and Vevey, 22nd February 2001

The Board of Directors
67
Report of the statutory auditors

to the General Meeting of Nestlé S.A.
As statutory auditors, we have audited the accounting records and the financial statements
(balance sheet, income statement and annex) of Nestlé S.A. for the year ended 31st December
2000.
These financial statements are the responsibility of the Board of Directors. Our responsibil-
ity is to express an opinion on these financial statements based on our audit. We confirm that
we meet the legal requirements concerning professional qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the Swiss
profession, which require that an audit be planned and performed to obtain reasonable assur-
ance about whether the financial statements are free from material misstatement. We have ex-
amined on a test basis evidence supporting the amounts and disclosures in the financial state-
ments. We have also assessed the accounting principles used, significant estimates made and
the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the accounting records, financial statements and the proposed appropria-
tion of retained earnings comply with the Swiss law and the company’s articles of incorpora-
tion.
We recommend that the financial statements submitted to you be approved.
Klynveld Peat Marwick Goerdeler SA
S.R. Cormack B.A. Mathers

Chartered accountant Chartered accountant
Auditors in charge
London and Zurich, 22nd February 2001
68
Agenda for the

134th Ordinary General Meeting of Nestlé S.A.
Thursday 5th April 2001

at 3.00 p.m. at the “Palais de Beaulieu”, Lausanne
1 Annual report, report of the auditors

1a 2000 annual report and accounts of Nestlé S.A.;
report of the auditors
1b 2000 consolidated accounts of the Nestlé Group;
report of the Nestlé Group auditors
2 Release of the Board of Directors

and of the Management
3 Decision on the appropriation of profits resulting

from the balance sheet of Nestlé S.A.
4 Elections to the Board of Directors

Rainer E. Gut (term of office for 4 years)
Jean-Pierre Meyers (term of office for 5 years)
Nobuyuki Idei (term of office for 5 years)
André Kudelski (term of office for 5 years)
5 Modifications of the Articles of Association

5a Change in the capital structure
5b Editorial modification of Art. 5bis Elections to the Board of Directors
5c Modification of Art. 35 At the General Meeting of 5th April 2001, the terms as
directors of Messrs Rainer E. Gut, Fritz Gerber,
Jean-Pierre Meyers and Reto F. Domeniconi will expire.
Having reached the age limit, Mr. F. Gerber will not stand
for a new term. Mr. R.F. Domeniconi has expressed the
wish to leave the Board. The two other directors are
eligible and present themselves for re-election. In accor-
dance with the provisions of the Board’s regulations con-
cerning the age limit, Mr. R.E. Gut will stand for a four-
year term. Mr. J.-P. Meyers is standing for a five-year
term.
Furthermore, the Board of Directors is recommend-
ing that the General Meeting elect as new directors, also
for five-year terms, Mr. Nobuyuki Idei, Chairman and
Chief Executive Officer of Sony Corporation, Tokyo,
Next Ordinary General Meeting: Japan, and Mr. André Kudelski, President and Chief
Thursday 11th April 2002 Executive Officer of Kudelski Group, Cheseaux-sur-Lau-
at the “Palais de Beaulieu”, Lausanne sanne, Switzerland.
69
Important dates
5th April 2001 134th Ordinary General Meeting, "Palais de Beaulieu”, Lausanne
11th April 2001 Payment of the dividend
26th April 2001 Announcement of first quarter 2001 sales figures
22nd August 2001 Publication of the half-yearly report January/June 2001
19th October 2001 Announcement of first nine months 2001 sales figures;
Autumn meeting with the press (Zurich)
28th February 2002 Announcement of 2001 sales figures and results;
Press conference (Vevey)
10th April 2002 Announcement of first quarter 2002 sales figures
11th April 2002 135th Ordinary General Meeting, “Palais de Beaulieu”, Lausanne
70
Shareholder information
Stock exchange listings Further information

As of 31st December 2000, the registered shares of For any additional information about the management
Nestlé S.A. were listed on the exchanges of Zurich, report, please contact
Brussels, Frankfurt, London, Paris, Tokyo and Vienna. Nestlé S.A., Investor Relations, avenue Nestlé 55,
In November 2000, Nestlé S.A. announced the delist- CH-1800 Vevey (Switzerland), tel. (021) 924 27 42,
ing of its shares from the exchanges of Amsterdam, fax (021) 924 28 13.
Brussels, Tokyo and Vienna. The shares were delisted
from the exchange of Amsterdam on 29th December E-mail: investor.relations@nestle.com
2000.
American Depositary Receipts (ADRs) representing As to information concerning the share register
Nestlé S.A. shares are offered in the USA by Morgan (registrations, transfers, address changes, dividends,
Guaranty Trust Company of New York. etc.), please contact Nestlé S.A., Share Transfer
Office, Zugerstrasse 8, CH-6330 Cham (Switzerland),
tel. (041) 785 20 20, fax (041) 785 20 24.
Registered Offices
Nestlé S.A., avenue Nestlé 55, CH-1800 Vevey (Switzer- The Company offers the possibility of depositing
land), tel. (021) 924 21 11. free of charge Nestlé S.A. shares traded at the Swiss
Exchange at its Share Transfer Office in Cham.
Nestlé S.A. (Share Transfer Office), Zugerstrasse 8,
CH-6330 Cham (Switzerland), tel. (041) 785 20 20. Nestlé URL: http://www.nestle.com
© 2001, Nestlé S.A., Cham and Vevey (Switzerland)

Concept and design: Nestec Ltd., Vevey (Switzerland)
Printed in Switzerland 3.2001
71

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2000 Financial statements

Consolidated accounts of the Nestlé Group

134th Annual report of Nestlé S.A.

54 Income statement for the year 2000

Consolidated income statement

In millions of CHF Notes 2000 1999

Sales to customers 1 81 422 74 660

Trading profit 1 9 186 7 914

Profit before taxes 4 8 341 6 859

Net profit of consolidated companies 5 580 4 545

Net profit for the year 5 763 4 724

Earnings per share

Consolidated balance sheet

In millions of CHF Notes 2000 1999

Total assets 65 524 58 939

In millions of CHF Notes 2000 1999

Liabilities and equity

Medium and long term liabilities

Total liabilities 35 011 33 861

Minority interests 609 625

Total liabilities and equity 65 524 58 939

Consolidated cash flow statement

In millions of CHF Notes 2000 1999

Cash flow from investing activities (5 058) (2 759)

In millions of CHF Notes 2000 1999

Cash flow from financing activities (1 422) (7 373)

Translation differences on flows (175) 49

Increase/(decrease) in cash and cash equivalents 2 196 (1 896)

Cash and cash equivalents at beginning of year 3 322 4 984

Cash and cash equivalents at end of year 8 5 451 3 322

Consolidated statement of changes in equity

Reserve for Less:

Currency retranslation 613 613 613

Adjustment for the introduction

Currency retranslation (268) (268) (268)

Accounting policies Foreign currencies

Provisions nised only to the extent that it represents a future eco-

Zone Europe 26 285 27 098 2 753 2 671

In millions of CHF 2000 1999 2000 1999

Zone Europe 12 913 14 333 5 279 5 398

In millions of CHF 2000 1999 2000 1999

Zone Europe 946 923 890 928

Beverages 23 044 20 859 4 318 3 764

Beverages 10 654 10 104

In millions of CHF 2000 1999

Beverages 936 618

2. Net financing cost

Interest income 614 474

3. Net non-trading items

Depreciation of tangible fixed assets 2 737 2 597

Components of tax expense

Deferred tax by types

Reconciliation of tax expense

6. Share of results of associated companies

Share of profit before taxes 605 521

7. Earnings per share

Basic earnings per share in CHF 149.1 122.1

Fully diluted earnings per share in CHF 147.8 120.7

Cash and cash equivalents