Corporate Governance Report 2021
Compensation Report 2021
Financial Statements 2021

Contents
1
3
4
6
21
25
26
27
28
29
30
31
33
53
55
65
67
69
70
71
72
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75
77
154
171
180
183
185
186
187
196
198
Corporate Governance Report 2021
Group structure and shareholders 
Capital structure
Board of Directors 
Executive Board
Compensation, shareholdings and loans 
Shareholders’ participation rights 
Change of control and defence measures 
Auditors
Information policy
Close Periods
General Organization of Nestlé S.A.
Compensation Report 2021
Report of the statutory auditor on the compensation report
Articles of Association of Nestlé S.A.
Financial Statements 2021
Consolidated Financial Statements of the Nestlé Group 2021
Principal exchange rates
Consolidated income statement for the year ended December 31, 2021
Consolidated statement of comprehensive income for the year ended December 31, 2021 
Consolidated balance sheet as at December 31, 2021
Consolidated cash ﬂow statement for the year ended December 31, 2021 
Consolidated statement of changes in equity for the year ended December 31, 2021 
Notes
Companies of the Nestlé Group, joint arrangements and associates
Statutory auditor’s report on the audit of the consolidated ﬁnancial statements 
Financial information – 5 year review
155th Financial Statements of Nestlé S.A.
Income statement for the year ended December 31, 2021 
Balance sheet as at December 31, 2021
Notes to the annual accounts 
Proposed appropriation of proﬁt
Report of the statutory auditor on the ﬁnancial statements
Front cover
KitKat V
Still oﬀering the perfect balance between the 
crispy wafer and smooth chocolate that people 
know and love, KitKat V is certiﬁed vegan and 
made from 100% certiﬁed or veriﬁed cocoa 
sourced through the Nestlé Cocoa Plan.

Corporate Governance Report 2021
1
Corporate Governance  
Report 2021

Corporate Governance Report 2021
2
Situation at December 31, 2021
1. 
Group structure and shareholders
1.1
Group structure
1.2
Signiﬁcant shareholders
1.3 Cross-shareholdings
2.
Capital structure
2.1
Capital
2.2
Conditional capital
2.3 Changes in capital
2.4
Shares and participation certiﬁcates
2.5
Dividend-right certiﬁcates
2.6
Limitations on transferability
and nominee registrations
2.7 Convertible bonds and options
3. 
Board of Directors (1)
3.1 Members of the Board of Directors
3.2  Professional background and other
activities and functions
3.3  Mandates outside Nestlé
3.4 Elections and terms of oﬃce
3.5 Internal organizational structure
3.6 Deﬁnition of areas of responsibility
3.7  Information and control instruments
vis-à-vis the Executive Board (2)
4. 
Executive Board (2)
4.1 Members of the Executive Board
4.2  Professional background and other
activities and functions
4.3 Mandates outside Nestlé
4.4 Management contracts
3
4
6
21
25
26
27
28
29
30
31
33
55
(1)  The full Board of Directors Regulations and Committee 
Charters are published on www.nestle.com/investors/
corporate-governance/boardcommittees.
(2)  The term Executive Committee, as used in the SIX 
Directive, is replaced by Executive Board throughout 
this document.
5.
Compensation, shareholdings 
and loans 
6.
Shareholders’ participation rights
6.1  Voting rights restrictions
and representation
6.2  Quorums required by the Articles
of Association
6.3  Convocation of the General Meeting
of shareholders
6.4 Inclusion of items on the agenda
6.5 Entries in the share register
7.
Change of control and
defence measures
7.1 Duty to make an oﬀer
7.2 Clauses on change of control
8. 
Auditors
8.1  Duration of the mandate and term
of oﬃce of the lead auditor
8.2
Auditing fees
8.3 Additional fees
8.4 Information instruments pertaining 
to the external audit
9. 
Information policy
10. Close Periods
General Organization of Nestlé S.A.
Compensation Report 2021
Articles of Association of Nestlé S.A.

Corporate Governance Report 2021
3
Group structure and shareholders
Preliminary remarks
The Nestlé Corporate Governance Report 2021 follows the 
SIX Swiss Exchange Directive on Information relating to 
Corporate Governance. Additional information can be found 
in the Compensation Report. Nestlé S.A. complies with the 
recommendations of the Swiss Code of Best Practice for 
Corporate Governance, as in force at December 31, 2021. 
To avoid duplication of information, cross-references to 
other reports are made in some sections, namely to the 
Annual Review 2021, the Financial Statements 2021, which 
comprise the Consolidated Financial Statements of the 
Nestlé Group and the Financial Statements of Nestlé S.A.,  
as well as the Articles of Association of Nestlé S.A., whose 
full text can be consulted in this report (page 55) or on:  
www.nestle.com/investors/corporate-governance/articles.
The Consolidated Financial Statements of the Nestlé 
Group 2021 comply with the International Financial Reporting 
Standards (IFRS) issued by the International Accounting 
Standards Board (IASB) and with Swiss law. Where necessary, 
these disclosures have been extended to comply with the 
requirements of the SIX Swiss Exchange Directive on 
Financial Reporting.
1. 
Group structure and shareholders
1.1
Group structure
Please refer to the Annual Review 2021, page 68, for the 
overview of Directors and Oﬃcers.
1.1.1 
Description of Nestlé’s operational group structure
For the general organization chart of Nestlé S.A., refer  
to page 31 of this document. The Group’s Management 
structure is represented in the analysis by operating 
segments (refer to Note 3 of the Consolidated Financial 
Statements of the Nestlé Group 2021, page 87).
1.1.2 All listed companies belonging to the Nestlé Group
The registered oﬃces of Nestlé S.A. are in Vevey and Cham 
(Switzerland). Nestlé S.A. shares are listed on the SIX Swiss 
Exchange in Switzerland (ISIN code: CH0038863350). At 
December 31, 2021, the market capitalization of Nestlé S.A. 
was CHF 351 682 442 600. For further information see also 
page 73 of the Annual Review 2021 and visit our website on 
www.nestle.com/investors.
Please refer to the Consolidated Financial Statements  
of the Nestlé Group 2021, page 154, for the list of publicly 
listed companies of the Nestlé Group, with an indication of 
the company name, registered oﬃce, share capital, place  
of listing, securities’ ISIN number, their market capitalization 
and the Company’s participation.
1.1.3 The non-listed companies belonging 
to the Nestlé Group
Please refer to the Consolidated Financial Statements of  
the Nestlé Group 2021, page 154, for the enumeration  
of companies of the Nestlé Group, joint arrangements and 
associates, with an indication of the company name, 
registered oﬃce, share capital and the Company’s 
participation.

Corporate Governance Report 2021
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Capital structure
Group structure and shareholders
1.2 
Signiﬁcant shareholders
BlackRock, Inc., New York, announced most recently on 
December 28, 2021, holding, directly or indirectly, 4.998%  
of Nestlé S.A.’s share capital, and The Capital Group 
Companies, Inc., Los Angeles, announced on October 30, 2017, 
holding, directly or indirectly, 3.55% of Nestlé S.A.’s share 
capital. Apart from the foregoing, Nestlé S.A. is not aware  
of any other shareholder holding, as at December 31, 2021, 
Nestlé S.A. shares in excess of 3% of the share capital.
During 2021, the Company published on the electronic 
publication platform of the SIX Swiss Exchange six disclosure 
notiﬁcations pertaining to the holding of Nestlé S.A. shares 
by BlackRock, Inc., New York (the latest one relating to the 
announcement mentioned above) and two disclosure 
notiﬁcations concerning the holding of its own shares. The 
details of these disclosure notiﬁcations can be accessed on 
the publication platform of the SIX Swiss Exchange following 
this link: www.ser-ag.com/en/resources/notiﬁcations-market-
participants/signiﬁcant-shareholders.html#.
With respect to nominees, Chase Nominees Ltd, London, 
was a registered Nominee N (refer to point 2.6.3. below)  
of 314 095 057 shares, i.e. 11.16% of the shares of the 
Company as at December 31, 2021. At the same date, 
Citibank N.A., London, as depositary for the shares 
represented by  American Depositary Receipts, was the 
registered holder of 208 925 492 shares, i.e. 7.42% of  
the shares of the Company. Also on December 31, 2021, 
Nortrust Nominees Ltd, London, was a registered 
Nominee N of 118 776 116 shares of the Company, 
representing 4.22% of the shares. 
1.3 
Cross-shareholdings
The Company is not aware of cross-shareholdings exceeding 
5% of the capital or voting rights on both sides.
2. 
Capital structure
2.1
Capital
The ordinary share capital of Nestlé S.A. is CHF 281 500 000. 
The conditional share capital is CHF 10 000 000. Nestlé S.A. 
does not have any authorized share capital.
2.2 
Conditional capital
The share capital may be increased (without time limitation) 
in an amount not to exceed CHF 10 000 000 by issuing up  
to 100 000 000  registered shares with a nominal value of 
CHF 0.10 each (representing 3.55% of the currently issued 
share capital) through the exercise of conversion rights  
and/or option rights granted in connection with the issuance 
by Nestlé or one of its subsidiaries of newly or already issued 
convertible debentures, debentures with option rights or 
other ﬁnancial market instruments. Thus, the Board of 
Directors has at its disposal a ﬂexible instrument enabling it, 
if necessary, to ﬁnance the activities of the Company through 
convertible debentures.
For a description of the group of beneﬁciaries and of the 
terms and conditions of the issuance of conditional capital, 
refer to art. 3bis of the Articles of Association of Nestlé S.A.(*)
2.3 
Changes in capital
The share capital was reduced three times in the last three 
ﬁnancial years as a consequence of a share buyback 
program of CHF 20 billion, launched on July 4, 2017, and 
completed on December 30, 2019, and the share buyback 
program of up to CHF 20 billion, launched on January 3, 2020 
and terminated on December 30, 2021. The resulting 
cancellations of shares were approved at the 2019, 2020  
and 2021 Annual General Meetings.
On April 11, 2019, the Annual General Meeting resolved  
to cancel 87 000 000 shares resulting in a reduction of the 
share capital to CHF 297 600 000.
On April 23, 2020, the Annual General Meeting resolved 
to cancel 95 000 000 shares leading to a reduction of the 
share capital to CHF 288 100 000.
On April 15, 2021, the Annual General Meeting resolved to 
cancel 66 000 000 shares leading to a reduction of the share 
capital to the present CHF 281 500 000.
For the breakdown of capital (“equity”) for 2021, 2020  
and 2019 see the consolidated statement of changes in 
equity in the Consolidated Financial Statements of the  
Nestlé Group 2021, page 75, and 2020, page 73  
(www.nestle.com/sites/default/ﬁles/2022-02/2021-ﬁnancial-
statements-en.pdf).
(*) Nestlé S.A.’s Articles of Association can be found on page 55 and on www.nestle.com/investors/corporate-governance/articles

Corporate Governance Report 2021
5
Capital structure
2.4 
Shares and participation certiﬁcates
Nestlé S.A.’s capital is composed of registered shares only. 
The number of registered shares with a nominal value of 
CHF 0.10 each, fully paid up, was 2 815 000 000 at 
December 31, 2021. 
According to art. 11 par. 1 of the Articles of Association, 
each share recorded in the share register as a share with 
voting rights confers the right to one vote to its holder.  
See also point 2.6.1 below. 
Shareholders have the right to receive dividends. There 
are no participation certiﬁcates.
2.5 
Dividend-right certiﬁcates
There are no dividend-right certiﬁcates.
2.6 
Limitations on transferability and nominee 
registrations
2.6.1 Limitations on transferability along with an indication 
of group clauses in the Articles of Association and 
rules for granting exceptions 
According to art. 5 par. 5 of the Articles of Association, no 
person or entity shall be registered with voting rights for 
more than 5% of the share capital as recorded in the 
commercial register. This limitation on registration also 
applies to persons who hold some or all their shares through 
nominees pursuant to that article. Legal entities that are 
linked to one another through capital, voting rights, 
management or in any other manner, as well as all natural 
persons or legal entities achieving an understanding or 
forming a syndicate or otherwise acting in concert to 
circumvent the regulations concerning the limitation on 
registration or the nominees, shall be counted as one person 
or nominee (art. 5 par. 7 of the Articles of Association). The 
limitation on registration also applies to shares acquired or 
subscribed by the exercise of subscription, option or 
conversion rights (art. 5 par. 10 of the Articles of Association). 
See also art. 5 par. 6 and par. 9 of the Articles of Association 
and point 2.6.3 below.
2.6.2 Reasons for granting exceptions in the year 
under review
Please refer to points 2.6.3 and 6.1.3 below.
2.6.3 Admissibility of nominee registrations, indication 
of percent clauses and registration conditions 
Pursuant to art. 5 par. 6 and par. 9 of the Articles of 
Association, the Board of Directors has issued regulations 
concerning the application of art. 5 of the Articles of 
Association. The regulations on nominees set forth rules for 
the entry of nominees as shareholders in the share register. 
They allow the registration of:
– Nominees N (“N” as Name of beneﬁcial owner disclosed): 
where trading and safekeeping practices make individual 
registration of beneﬁcial owners diﬃcult or impractical, 
shareholders may register their holdings through 
a Nominee N with voting rights, subject to the speciﬁc 
understanding that the identity and holdings of beneﬁcial 
owners are to be disclosed to the Company, periodically 
or upon request. Voting rights of Nominees N are to be 
exercised on the basis of voting instructions received from 
the beneﬁcial owners. For voting purposes, holdings of 
a Nominee N, or Nominees N acting as an organized group 
or pursuant to a common agreement, may not exceed 5% 
of the share capital of the Company. Holdings exceeding 
the 5% limit (respectively the limit ﬁxed by the Board of 
Directors, see point 6.1.3 below) are registered without 
voting rights. The responsibility for disclosure of beneﬁcial 
owners and their holdings resides with the nominees 
registered in the share register.
– Nominees A (“A” as Anonymous beneﬁcial owner): 
registration without voting rights. 
In line with its regulations, in order to facilitate trading of the 
shares on the Stock Exchange, the Board of Directors has 
authorized certain nominees to exceed the 5% limit to be 
registered as nominees with voting rights.
2.6.4 Procedure and conditions for cancelling statutory 
privileges and limitations on transferability 
Please refer to point 6.1.3 below.
2.7
Convertible bonds and options
As at December 31, 2021, there are no outstanding 
convertible bonds or warrants/options issued by Nestlé S.A. 
or by subsidiaries on Nestlé S.A. shares.

Corporate Governance Report 2021
6
Board of Directors
3. 
Board of Directors 
3.1
Members of the Board of Directors
Nestlé’s Board of Directors is highly structured to ensure a high degree of diversity by age, gender, education/qualiﬁcations, 
professional background, present activity, sector expertise, special skills (classiﬁcation), nationality and geography. This is 
reﬂected in Nestlé’s skills and diversity grid disclosed here.
Name
Year of birth
Education/Qualiﬁcations (a)
Professional background
1
Paul Bulcke
1954
Economics and Business Administration
Chairman, Nestlé S.A.
2
Ulf Mark Schneider
1965
Economics, Business Administration
and Finance & Accounting
CEO, Nestlé S.A.
3
Henri de Castries (c) (d)
1954
HEC, Law and École Nationale d’Administration (ENA)
Former Chairman and CEO, AXA 
French Ministry, Government
4
Renato Fassbind
1955
Economics, Business Administration 
and Finance & Accounting
Former CFO, ABB and Credit Suisse
Former CEO, Diethelm Keller Group
5
Pablo Isla
1964
Law
Lawyer, Former State Attorney, 
Government Spain
Banking, Banco Popular España
6
Ann M. Veneman
1949
Law, Public Policy and Political Science 
Former Secretary, USDA
Former Executive Director, UNICEF
Lawyer
7
Eva Cheng
1952
Business Administration and History
Former Amway China Chairwoman 
and EVP, Amway Corporation
8
Patrick Aebischer
1954
Medicine and Neuroscience
President Emeritus, Swiss Federal Institute 
of Technology Lausanne (EPFL)
9
Kasper B. Rorsted
1962
Business Administration
CEO, Former general management
Henkel, Compaq/Hewlett Packard
10
Kimberly A. Ross
1965
Business Administration and Finance & Accounting
Former CFO, Baker Hughes, 
Avon Products,
Royal Ahold NV
WeWork
11
Dick Boer
1957
Business Administration
Former President and CEO, 
Ahold Delhaize NV
12
Dinesh Paliwal
1957
Engineering, Applied Sciences, 
Business Administration
Partner KKR & Co. Inc.
Former Chairman and CEO, Harman International
Former President, ABB Ltd.
13
Hanne Jimenez de Mora 1960
Business Administration
Former Partner McKinsey & Company
14
Lindiwe M. Sibanda
1963
Agriculture Sciences, Animal Physiology & Nutrition
Director, Chairwoman and Policy Advisor for 
Agriculture and Food Systems
(a) For more complete information on qualiﬁcations: please refer to section 3.2 and the individual CVs on www.nestle.com/aboutus/management/boardofdirectors 
(b) All Board members are elected annually in accordance with Swiss Corporate law and Nestlé S.A.’s Articles of Association.
(c)  Vice Chairman. 
(d)  Lead Independent Director. The Lead Independent Director assumes the role of a prime intermediary between the Board and the Chairman. 
He regularly convenes and chairs Board meetings and “in camera” sessions where the Chairman is not present or conﬂicted.

Corporate Governance Report 2021
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Board of Directors
Present functions/mandates 
(listed companies)
Sector
Classiﬁcation
Nationality
First Election
Expires (b)
Chairman, Nestlé S.A.
Roche Ltd.
L’Oréal S.A.
Food & Beverages
FMCG/CEO
Belgian/Swiss
April 10, 2008
2022
CEO, Nestlé S.A.
Food & Beverages
CEO
German/US
April 06, 2017
2022
Stellantis N.V.
Insurance & Finance
Insurance/CEO
French
April 19, 2012
2022
Vice Chairman, Swiss Re AG 
Kühne + Nagel International SA
Finance
Financial Management/
CFO
Swiss
April 16, 2015
2022
Executive Chairman, Inditex
Retail
Finance/Legal/
FMCG/CEO
Spanish
April 07, 2018
2022
Icosavax, Sun World, Global Health 
Innovative Technology Fund, Full 
Harvest Technologies Inc., Washington 
Institute for Business, Government and 
Society, CHAI and various advisory 
mandates
Government/NGOs
Government/NGOs/
Sustainability
US
April 14, 2011
2022
Haier Electronics Group Co. Ltd. 
Personal Care & Nutrition
FMCG/
Sustainability
Chinese
April 11, 2013
2022
Logitech SA
PolyPeptide Group AG
Science
Scientist
Swiss
April 16, 2015
2022
CEO, adidas AG
Siemens AG
Retail
Technology
Information Systems/
FMCG/CEO
Danish
April 07, 2018
2022
Cigna Corporation
KKR Acquisition Holdings I Corp.
Finance
Personal Care
Food Retail
Oil & Gas
Financial Management/
FMCG/CFO
US
April 07, 2018
2022
Royal Dutch Shell, plc
Chairman, G-Star RAW CV
SHV Holdings N.V.
Food Retail 
Digital
FMCG/CEO
Dutch
April 11, 2019
2022
Raytheon Company
Technology 
Digital
Information Systems/
CEO/Sustainability
US/Indian
April 11, 2019
2022
Co-founder, a-connect group
AB Volvo
Microcaps AG
Management Consulting
Customer Service/
Corporate Strategy/
Sustainability
Swiss
April 23, 2020
2022
Professor, University of Pretoria, 
South Africa
Linds Agriculture Services Pvt Ltd.
Nutrition, Agricultural 
Services & Rural Development
Animal Science
Public Policy,  
Sustainability, 
Academia
Zimbabwean
April 15, 2021
2022

Corporate Governance Report 2021
8
Board of Directors
Board diversity
The working guidelines used for the selection of new Board 
members state that the Board of Directors should at all times 
be well-balanced, including with respect to Swiss and  
non-Swiss nationals, the members’ individual experiences, 
expertise, competencies and personal attributes. This 
ensures an appropriate cognitive diversity and supports the 
continuous succession planning for the Board as a whole 
and for its various Committees.
The Nomination Committee periodically reviews the 
composition of the Board using various criteria, including, 
without limitation:
– the Board’s cumulative experience and expertise in 
(international) business leadership, legal/compliance/risk 
management, science, ﬁnance, marketing, IT, technology, 
government/politics, sustainability and other relevant 
ﬁelds;
– diversity of competencies including education, function, 
industry and geographic business experience;
– the Board’s diversity of personal attributes including 
gender, age, ethnicity, nationality, culture and leadership 
approach;
– the Board’s general age and term limits.
The Board should at all times be composed of:
– a majority of independent members; and
– members with the speciﬁc abilities or skills to serve 
on one or more of the various Board Committees.
3.1.1 Management tasks of the members 
of the Board of Directors
With the exception of Ulf Mark Schneider, all members of the 
Board of Directors are non-executive members. Paul Bulcke 
is active Chairman and has certain responsibilities for the 
direction and control of the Group with respect to Nestlé 
Health Science and Nestlé’s engagement with L’Oréal.
3.1.2 Information on non-executive members 
of the Board of Directors
With the exception of Paul Bulcke, all non-executive 
members of the Board of Directors are  independent, were 
not previously members of the Nestlé management and have 
no important business connections with Nestlé. 
Pursuant to Nestlé’s Board Regulations, a Director shall  
be considered independent, if he/she is not and has not 
been employed as an executive oﬃcer at the  Company or 
any of its principal subsidiaries or as employee or aﬃliate  
of the Group’s external auditor for the past three years and 
does not maintain, in the sole determination of the Board, 
a material direct or indirect business relationship with the 
Company or any of its subsidiaries. Directors with immediate 
family members who would not qualify as  independent shall 
not be considered independent, subject to a three-year 
cooling-oﬀ period.
Nestlé’s succession planning process is highly structured 
and managed by the Board’s Nomination Committee with 
the support of outside consultants when necessary.
Subject to speciﬁc exceptions granted by the Board, 
members are subject to twelve-year term limits. According 
to Nestlé’s Board Regulations (a), an age limit of 72 years 
applies. This allows for continuous refreshment and long-
term succession planning according to Nestlé’s skills and 
diversity grid.
3.1.3 Cross-involvement
None.
(a) Nestlé S.A.’s Board Regulations can be found on www.nestle.com/investors/corporate-governance/boardcommittees

Corporate Governance Report 2021
9
Board of Directors
3.2 
Professional background and other activities 
and functions (*)(**)
Paul Bulcke
Chairman
Paul Bulcke began his career in 1977 
as a ﬁnancial analyst for Scott Graphics 
International in Belgium before moving 
to the Nestlé Group in 1979 as 
a marketing trainee. From 1980 to 1996, 
he held various responsibilities in 
Nestlé Peru, Nestlé Ecuador and Nestlé Chile before moving 
back to Europe as Managing Director of Nestlé Portugal, 
Nestlé Czech and Slovak Republic, and Nestlé Germany. 
In 2004, he was appointed Executive Vice President, 
responsible for Zone Americas. In April 2008, Paul Bulcke 
was elected member of the Board of Directors of Nestlé S.A. 
and the Board appointed him Chief Executive Oﬃcer (CEO).
As of December 31, 2016, Paul Bulcke relinquished his 
function as CEO remaining member of the Board of Directors. 
In April 2017, Paul Bulcke was elected Chairman of the Board 
of Directors of Nestlé S.A.
As a Nestlé S.A. representative, he serves as Vice 
Chairman on the Board of L’Oréal S.A., France.
Paul Bulcke is also a Board member of Roche Holding Ltd, 
Switzerland. 
In addition, he serves as Co-Chairman of the 2030 Water 
Resources Group (WRG) and is a member of the Board of 
Trustees of Avenir Suisse, Switzerland, the European Round 
Table of Industrialists (ERT), Belgium, and the J.P. Morgan 
International Council.
Ulf Mark Schneider
CEO
Mark Schneider started his career 
in 1989 with Haniel Group in Germany, 
where he held several senior executive 
positions. In 2001, he joined Fresenius 
Medical Care as Chief Financial Oﬃcer. 
He was CEO of Fresenius Group 
between 2003 and 2016. Since January 2017, Mark Schneider 
has served as Chief Executive Oﬃcer (CEO) of Nestlé S.A.  
In April 2017, Mark Schneider was elected member of the 
Board of Directors of Nestlé S.A. 
Mark Schneider is a member of the Board of the 
Consumer Goods Forum as well as of the World Economic 
Forum (WEF) Board of Trustees and its International 
Business Council.
Henri de Castries
Vice Chairman
Lead Independent Director
Henri de Castries started his career in 
the French Finance Ministry Inspection 
Oﬃce, auditing government agencies 
from 1980 to 1984. In 1984, he joined 
the French Treasury Department.  
As of 1989, he joined AXA Corporate Finance Division. 
Two years later, he was appointed Senior Executive Vice 
President for the Group’s asset management, ﬁnancial and 
real-estate  business. Henri de Castries was Chairman of  
the AXA  Management Board from May 2000 to April 2010.  
Since April 2010, following a modiﬁcation of the corporate 
governance structure, he was Chairman and CEO of AXA, 
functions he relinquished in 2016.
Henri de Castries serves on the Board of Stellantis N.V. 
and is Chairman of Institut Montaigne.
Renato Fassbind
Renato Fassbind started his career 
in 1982 as Managing Director of 
Kunz Consulting AG. From 1984  
until 1990, he was Auditor and 
ultimately Head of Internal Audit  
at F. Hoﬀmann-La Roche AG. 
Renato Fassbind then joined ABB Ltd 
and served between 1990 and 1997 as Head of Corporate 
Staﬀ, Audit and then as CFO and member of the Executive 
Board from 1997 to 2002. Subsequently, he joined Diethelm 
Keller Holding AG as CEO from 2002 to 2004. He joined 
Credit Suisse Group AG as CFO and member of the 
Executive Board from 2004 until 2010.
Currently, Renato Fassbind serves as Vice Chairman and 
Lead Independent Director of the Board of Directors of 
Swiss Re AG, he is also the Chairman of its Audit Committee 
and a member of its Compensation  Committee. Furthermore, 
Renato Fassbind serves on the Board of Kühne + Nagel 
International AG and is a member of its Audit Committee.
(*) Mandates and functions are listed in the following order: (1) mandates in listed companies, (2) mandates in non-listed companies, (3) mandates held at the request 
of Nestlé or companies controlled by it, (4) mandates held in associations, charitable organizations, foundations, trusts and employee welfare foundations.
(**) For information on former members of the Board of Directors see www.nestle.com/investors/corporate-governance/former-members-board-of-directors.

Corporate Governance Report 2021
10
Board of Directors
Pablo Isla
From 1988 to 1991, Pablo Isla was 
a Spanish State Attorney at the  
Ministry of Transport, Tourism and 
Communication. From 1992 to 1996,  
he was Group General Counsel for 
Banco Popular Español. In 1996, 
Pablo Isla was appointed General 
Manager for the National Heritage Department of the 
Treasury Ministry, Government of Spain. In 1998, he rejoined 
the Banco Popular Español as General Secretary. From 2000  
to 2005, Pablo Isla was Co-Executive Chairman of Altadis 
Group, Spain. In 2005, he was named CEO and Deputy 
Chairman of Inditex S.A., Spain, and was appointed 
Executive Chairman of the company in 2011.
From 2003 until 2017, he served as Independent Director 
of the Spanish telecom company, Telefonica S.A.
Ann M. Veneman
An attorney by training, Ann M. Veneman 
was Secretary of the United States 
Department of Agriculture (USDA)  
from 2001 to 2005. She then served 
a ﬁve-year term as the Executive 
Director of the United Nations 
Children’s Fund. Earlier in her career 
she practiced law and was in various positions in the USDA. 
She also served four years as the Secretary of the California 
Department of Food and Agriculture. She is currently 
a member of the Boards of Icosavax, Sun World, Full Harvest 
Technologies Inc., the Global Health Innovative Technology 
Fund, the Clinton Health Access Initiative and The 
Washington Institute for Business, Government and Society. 
Ann M. Veneman is on a number of advisory boards 
including KDC Ag, Upside Foods, Perfect Day, TerraVesco, 
Ukko and JUST Capital. She is a member of the Council on 
Foreign Relations. In addition, Ann M. Veneman is a member 
of the Hilton Humanitarian Prize Jury.
In 2009, she was named to Forbes The World’s 100 Most 
Powerful Women list, and she has been the recipient of 
numerous awards and honors throughout her career.
Ann M. Veneman also serves as member of the 
Nestlé CSV (Creating Shared Value) Council.
Eva Cheng
Eva Cheng joined Amway Corporation – 
a US-based global consumer product 
company – in 1977 as an Executive 
Assistant in Hong Kong and moved  
to become Corporate Executive Vice 
President in 2005 responsible for 
Greater China and Southeast Asia 
Region, a position she held until her retirement in 2011. 
Eva Cheng is most well-known for leading Amway’s entry 
into China in 1991. She also held Amway China’s Chairperson 
and CEO position since market launch until her retreat in 2011.
In 2008 and 2009, Eva Cheng was twice named to Forbes 
The World’s 100 Most Powerful Women list. She has also 
received numerous awards and honors for her business 
leadership and community service.
From 2014 until 2019, she served as Independent  
Non-Executive Director of the global packing company 
Amcor Limited.
Presently, Eva Cheng serves as Independent Non-
Executive Director on the Board of Haier Smart Home Co. Ltd. 
in Hong Kong, China. She is also the President of the Our 
Hong Kong Foundation, a public policy think tank  
in Hong Kong.
Patrick Aebischer
Patrick Aebischer was trained as an MD 
and neuroscientist at the University of 
Geneva and the University of Fribourg, 
Switzerland.
He is the President Emeritus of the 
Swiss Federal Institute of Technology 
Lausanne (EPFL).  
From 1984 to 1992, he was Faculty member of Brown 
University, USA. In 1992, he returned to Switzerland as 
a Professor and Director of Surgical Research Division and 
Gene Therapy Center at the University Hospital of Lausanne 
(CHUV). From 2000 to end 2016, Patrick Aebischer was the 
President of EPFL. Furthermore, Patrick Aebischer is founder 
of four start-ups: CytoTherapeutics Inc. (1989), Modex 
Therapeutics Inc. (1996), Amazentis SA (2007) and  
Vandria SA (2021).
Currently, he serves as a Board member of Logitech 
International S.A. and of PolyPeptide Group AG.  
Patrick Aebischer is also Chairman of Novartis Venture Fund 
and Vandria SA.

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Board of Directors
Furthermore, he is a senior partner of +ND Capital and is  
a member of the Foundation Board of the Verbier Festival.  
In addition, Patrick Aebischer serves as Vice Chairman on 
the Geneva Science and Diplomacy Anticipator Foundation, 
Switzerland.
Kasper B. Rorsted
Kasper Rorsted started his career  
in sales and marketing positions within 
Oracle and Digital Equipment 
Corporation. From 1995, he held 
various international management 
positions at Compaq and from 2001  
he was General Manager for the 
company’s Europe, Middle East & Africa (EMEA) business. 
In 2002, Compaq merged with Hewlett Packard. Between 
2002 and 2004, Kasper Rorsted was Senior Vice President 
and General Manager at Hewlett Packard, where he last 
headed the EMEA business. In April 2005, he joined Henkel 
as Executive Vice President Human Resources, Purchasing, 
Information Technologies and Infrastructure Services. 
In 2007, he was Vice Chairman of the Henkel Management 
Board. As of April 2008 until 2016, he held the position of 
CEO. In August 2016, Kasper Rorsted joined the Executive 
Board of adidas AG and became its CEO in October 2016.
Furthermore, Kasper Rorsted serves on the Board  
of Siemens AG.
Kimberly A. Ross
Kimberly A. Ross started her ﬁnance 
career at the Anchor Glass Container 
Corporation, USA, in 1992. In 1995, she 
joined Joseph E. Seagram & Sons Inc., 
USA, where she held a number of 
management positions. In 2001, 
Kimberly A. Ross joined Ernst & Young 
Global Limited, USA, as a Senior Manager. In the same year, 
she joined Royal Ahold NV, Netherlands, and advanced 
through a series of successively responsible positions in 
treasury, tax and ﬁnance before her appointment as CFO 
in 2007. From 2011 until 2014, Kimberly A. Ross served as 
CFO and Executive Vice President of Avon Products Inc., USA. 
She served as CFO and Senior Vice President at 
Baker Hughes LLC, USA, from 2014 until 2017. 
From March 2020 until end October 2020, she held the 
position of CFO at WeWork, USA.
Kimberly A. Ross is a member of the Boards of Cigna 
Corporation and KKR Acquisition Holdings I Corp., both in  
the USA.
Dick Boer
Dick Boer spent more than 17 years  
in various retail positions for 
SHV Holding N.V. and Unigro N.V. in 
the Netherlands. Thereafter he became 
CEO of Ahold Czech Republic in 1998, 
and subsequently President and CEO  
of Albert Heijn B.V., Netherlands, from 
2000 to 2010. From 2006 to 2011, he held the position  
of Chief Operating Oﬃcer of Ahold Europe and from 2011 
to 2016, Dick Boer was President and CEO of Ahold N.V. 
From 2016 until his retirement in 2018, he was President  
and CEO of Ahold Delhaize N.V. 
In May 2020, he joined the Board of Royal Dutch Shell plc.
Dick Boer serves as Chairman of the Advisory Board of 
G-Star RAW CV and the Rijksmuseum Fonds, Netherlands. 
He is also Chairman of the Supervisory Board of the Royal 
Concertgebouw, Netherlands, as well as a non-executive 
Board member of SHV Holdings N.V., Netherlands.
Dinesh Paliwal
Dinesh Paliwal spent 22 years with 
Switzerland based ABB Group.  
He began his career in engineering  
but quickly expanded his role to 
manage R&D, manufacturing and 
regional P&L roles while residing  
in USA, China, India, Singapore, 
Australia and Switzerland. His last role in ABB was Chairman 
and CEO of ABB USA and Global President of all Markets 
and Technology. In 2007, Dinesh Paliwal joined Harman 
International (USA) as Chairman and CEO. Upon Harman’s 
acquisition by Samsung in 2017, he remained CEO of Harman 
until he stepped down in April 2020 and assumed the role  
of Senior Advisor to the Harman/Samsung Board and CEO.
Furthermore, Dinesh Paliwal serves on the Board of 
Raytheon Technologies (after the merger of United 
Technologies and Raytheon Company) and is a Partner  
of KKR & Co. Inc. NY, USA. He also serves on the Board of 
Trustees of Miami University, Ohio, USA.

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Board of Directors
Hanne Jimenez de Mora
Hanne Jimenez de Mora started  
her career as a credit analyst with 
DNB Bank in Luxembourg, and 
subsequently held brand manager and 
controller roles at Procter & Gamble  
in Sweden and Switzerland. She was 
a partner at McKinsey & Company  
in Switzerland until 2002. She is co-founder of a-connect 
(group) AG, a global management consultant ﬁrm based  
in Zurich.
Hanne Jimenez de Mora is a member of the Board of 
AB Volvo, Sweden and is Chairperson of Microcaps AG, 
Switzerland. She serves also as Vice Chair as well as 
Supervisory and Foundation Board member of IMD Business 
School, Switzerland.
Lindiwe Majele Sibanda
Lindiwe Majele Sibanda is Professor, 
animal scientist and a practicing 
farmer, serving as a policy advisor to 
numerous African governments and 
global institutions. She is Director and 
Chairwoman of the African Research 
Universities Alliance (ARUA) Centre of 
Excellence in Sustainable Food Systems at the University  
of Pretoria, South Africa. Lindiwe Majele Sibanda is a serving 
member of the One CGIAR System Board (Consortium of 
International Agricultural Research Centers), and the Chair  
of the Nomination Committee for the Worldveg Board.  
She is also a serving member of the Sustainable 
Development Goals 12.3 Champions, working to accelerate 
progress towards reducing food loss and waste by 2030. 
Lindiwe Majele Sibanda is an Associate Fellow with the 
Energy, Environment and Resources Programme at Chatham 
House. She has also served in senior leadership positions in 
various organizations, including Vice President, Country 
Support, Policy and Partnerships for the Alliance for a Green 
Revolution in Africa (AGRA) and CEO and Head Mission of 
the pan-African Food, Agriculture and Natural Resources 
Policy Analysis Network (FANRPAN). She is the recipient of 
the 2021 RUFORUM Individuals Making Impact on Africa’s 
Development Award for fostering linkages between 
academia, policy and private sector, catalyzing engagements 
in the policy arena across Africa and globally, making the 
voice of African Universities heard in promoting inclusivity  
in research development.

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Board of Directors
3.3 
Mandates outside Nestlé
Pursuant to art. 21sexies of the Articles of Association, no 
member of the Board of Directors may hold more than 
4 additional mandates in listed companies and 5 additional 
mandates in non-listed companies.
The following mandates are not subject to these limitations:
a) mandates in companies which are controlled by Nestlé;
b) mandates which a member of the Board of Directors 
holds at the request of Nestlé or companies controlled 
by it. No member of the Board of Directors shall hold 
more than 10 such mandates; and
c) mandates in associations, charitable organizations, 
foundations, trusts and employee welfare foundations. 
No member of the Board of Directors shall hold more  
than 10 such mandates.
Mandates shall mean mandates in the supreme governing 
body of a legal entity which is required to be registered in 
the commercial register or a comparable foreign register. 
Mandates in diﬀerent legal entities which are under joint 
control are deemed one mandate.
The Board of Directors has promulgated regulations  
that determine additional restrictions.
All members of the Board of Directors comply with  
the provisions set out in art. 21sexies.
3.4 
Elections and terms of oﬃce
Pursuant to art. 6 par. 2 of the Articles of Association, the 
General Meeting has the competence to elect and remove 
the members of the Board of Directors. 
The Chair of the Board of Directors, the members of the 
Board of Directors and the members of the Compensation 
Committee are elected individually by the General Meeting 
for a term of oﬃce until completion of the next Annual 
General Meeting (art. 15 of the Articles of Association). 
Members of the Board of Directors whose term of oﬃce 
has expired are immediately eligible for re-election.
The Board of Directors elects one or two Vice Chairs and 
the members of the Committees other than the Compensation 
Committee. 
The term of oﬃce of a Board member shall expire no later 
than at the Annual General Meeting following the member’s 
72nd birthday.
Rules in the Articles of Association reﬂect the statutory 
legal provisions with regard to the appointment of the 
Chairman, the members of the Compensation Committee 
and the independent proxy.
For the principles of the selection procedure, see 
points 3.1.2 above and 3.5.2 below.
For the time of ﬁrst election and term of oﬃce, see 
point 3.1 above.

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Board of Directors
(a) For complete information, please refer to the Board Regulations and Committee Charters on www.nestle.com/investors/corporate-governance/boardcommittees
3.5 
Internal organizational structure
3.5.1 Allocation of tasks within the Board of Directors
Chair’s and
Corporate 
Governance 
Committee
Compensation 
Committee
Nomination 
Committee
Sustainability 
Committee
Audit 
Committee
Paul Bulcke
Chairman
• (Chair)
•
Ulf Mark Schneider
CEO
•
Henri de Castries
Vice Chairman
Lead Independent Director
•
• (Chair)
•
Renato Fassbind
•
• (Chair)
Pablo Isla
•
• (Chair)
Ann M. Veneman
•
• (Chair)
Eva Cheng
•
•
Patrick Aebischer
•
Kasper B. Rorsted
•
Kimberly A. Ross
•
Dick Boer
•
•
Dinesh Paliwal
•
Hanne Jimenez de Mora
•
Lindiwe M. Sibanda
•
3.5.2 Tasks and area of responsibility for each 
Committee of the Board of Directors (a)
The powers and responsibilities of each Committee are 
established in the applicable Committee Charter, which 
is approved by the Board. Each Committee is entitled to 
engage outside counsel. After each Committee meeting, 
its Chair reports to the full Board.
Chair’s and Corporate Governance Committee
The Chair’s and Corporate Governance Committee consists 
of the Chair, any Vice Chair, the Lead Independent Director, 
the CEO and any other member elected by the Board. It 
liaises between the Chair and the full Board of Directors in 
order to act as a consultant body to the Chair and to expedite 
whenever necessary the handling of the Company’s 
business. The Committee regularly reviews the corporate 
governance of the Company and prepares recommendations 
for the Board. It also advises on certain ﬁnance-related 
matters including the Company’s ﬁnancing and ﬁnancial 
management and periodically reviews its asset and liability 
management. It receives regular reports on quality, cyber 
risk as well as legal and litigation matters.
While the Committee has limited authority as per the 
Board Regulations, it may in exceptional and urgent matters 
deal with business matters which might arise between Board 
meetings. In all cases it keeps the Board fully appraised.  
It reviews the Board’s annual work plan.
Compensation Committee
The Compensation Committee consists of a Chair and   
a minimum of three non-executive members of the Board. 
All members are independent (art. 19bis par. 1 of the Articles 
of Association). The members of the Compensation 
Committee are elected individually by the General Meeting 
for a term of oﬃce until completion of the next Annual 
General Meeting. Members of the Compensation Committee 
whose term of oﬃce has expired are immediately eligible for 
re-election. The Compensation Committee determines the 
system and principles for remuneration of the members of 
the Board of Directors and submits them to the Board for 
approval. It reviews and discusses the remuneration 
principles for Nestlé S.A. and the Nestlé Group. It prepares 
the proposals of the Board to be submitted for approval by 
the General Meeting in relation to the compensation of the

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Board of Directors
Board of Directors and the Executive Board. In addition,  
it proposes the remuneration of the Chair of the Board and 
the CEO, and approves the individual remuneration of the 
members of the Executive Board. It reports on its decisions 
to the Board and keeps the Board updated on the overall 
remuneration policy of the Nestlé Group. It reviews the 
annual Compensation Report.
Nomination Committee
The Nomination Committee consists of a Chair, who is  
an independent and non-executive member of the Board, 
preferably the Lead Independent Director; the other 
members are the Chair of the Board of Directors and  
a minimum of two independent and non-executive members 
of the Board. The Nomination Committee oversees the long-
term succession planning of the Board, establishes the 
principles and criteria for the selection of candidates to the 
Board, performs a regular gap analysis, selects candidates 
for election or re-election to the Board and prepares  
a proposal for the Board’s decision. It is regularly supported 
by external search ﬁrms. 
The succession planning for the Board of Directors is 
highly structured and seeks to ensure a balance of relevant 
competencies and an appropriate diversity of its members 
over time. The Nomination Committee regularly reviews the 
Company’s skills and diversity grid (see 3.1. above) and 
ensures an appropriate cognitive diversity. It ensures  
an appropriately wide net is cast on key successions. The 
candidates to the Board must possess the necessary proﬁle, 
qualiﬁcations and experience to discharge their duties. 
Newly appointed Board members receive an appropriate 
introduction into the business and aﬀairs of the Company 
and the Group. If required, the Nomination Committee 
arranges for further training. 
The Nomination Committee reviews, at least annually, the 
independence of the members of the Board as well as their 
outside mandates, and prepares the annual self-evaluation 
of the Board and its Committees. It meets as frequently  
as necessary to fulﬁl its tasks and prepares the relevant  
in-camera sessions of the Board of Directors.
Sustainability Committee
The new, dedicated Sustainability Committee consists of 
a Chair, who is an independent and non-executive member 
of the Board and a minimum of two non-executive members 
of the Board. 
The Sustainability Committee reviews the Company’s 
sustainability agenda. It reviews reports and gives advice  
on measures which ensure the long-term sustainability of 
the Company in its economic, social and environmental 
dimension and monitors the Company’s performance 
against selected external sustainability indexes. It reviews 
the annual Creating Shared Value and Sustainability Report. 
It discusses periodically how material non-ﬁnancial issues 
aﬀect the Company’s ﬁnancial performance and how its 
long-term strategy relates to its ability to create shared 
value. It reviews the Company’s response to climate change 
and related reporting, it ensures the Company carries out 
human rights due diligence and reports on its most severe 
human rights risks, and it reviews the Company’s diversity 
and inclusion management and employee health and  
well-being. It meets at least four times a year and as 
frequently as necessary to fulﬁl its tasks. It keeps the Board 
updated on the material issues aﬀecting the long-term 
sustainability of the Group.
Audit Committee
The Audit Committee consists of a Chair, who is 
an independent and non-executive member of the Board, 
and a minimum of two other non-executive members  
of the Board, excluding the CEO and any former member  
of the Executive Board. All members shall be independent. 
At least one member has to have recent and relevant 
ﬁnancial expertise, the others must be familiar with the 
issues of accounting and audit. In discharging its 
responsibilities, the Audit Committee has unrestricted 
access to the Company’s management, books and records. 
The Audit Committee supports the Board of Directors in its 
supervision of ﬁnancial controls through a direct link to the 
external auditors (EY) and Nestlé Internal Audit (corporate 
internal auditors).

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Board of Directors
The Audit Committee’s main duties include the following:
– to review, and challenge where necessary, the actions and 
judgements of management, in relation to the Company’s 
year-end ﬁnancial accounts;
– to make recommendations to the Board of Directors 
regarding the nomination of external auditors to be 
appointed by the shareholders;
– to discuss the audit procedures, including the proposed 
scope and the results of the internal and external audit;
– to keep itself regularly informed on important ﬁndings 
of the audits and of their progress;
– to oversee the quality of the internal and external auditing;
– to present the conclusions on the approval of the Financial 
Statements to the Board of Directors;
– to review reports regarding internal controls, compliance, 
fraud, enterprise risk management and the Group’s annual 
risk assessment.
The Audit Committee regularly reports to the Board on its 
ﬁndings and proposes appropriate actions. The responsibility 
for approving the annual Financial Statements remains with 
the Board of Directors.

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Board of Directors
3.5.3 Work methods of the Board of Directors 
and its Committees
The Board meets as often as necessary, at least quarterly, 
and on notice by the Chair or by the person designated by 
him. In addition, the Board must be convened as soon as  
a Board member requests the Chair to call a meeting.  
All Committees provide a detailed report to the full Board  
at each meeting in a dedicated Chair’s session. The Board 
regularly meets for in-camera sessions (without CEO) and 
independent director meetings (without Chair and CEO).
The Board reserves at least one day per year to discuss 
the strategic long-term plan of the Company. In addition, 
every year the Board visits one Nestlé Market for three to ﬁve 
days (in 2021, Nestlé in Switzerland). During the pandemic, 
the Board met virtually or in hybrid meetings and additional 
ad hoc meetings and reports were introduced.
The average attendance at the Board meetings in 2021 
was 98%. All Board meetings, with the exception of certain 
Chair’s and in-camera sessions, are attended by all members 
of the Executive Board. In addition, members of the Executive 
Board and senior management participate in Committee 
meetings, if appropriate, when a Committee discusses matters 
in relation to their respective responsibilities. The CEO may 
partially attend the meetings of the Audit Committee, the 
Nomination Committee, the Sustainability Committee and 
the Compensation Committee as an invited guest, except  
on matters where he may have a conﬂict of interest. 
Furthermore, both the external auditor and the Head of 
Nestlé Internal Audit participate in the Audit Committee 
meetings except for regular in-camera sessions. No external 
subject matter experts were invited to the Board and 
Committee meetings in 2021. 
The Company performs annual self-evaluations of the Board 
and its Committees including conﬁdential, anonymous 
feedback and individual interviews. Findings are appropriately 
addressed. An open, transparent and critical board room 
culture forms the basis for the Board of Directors’ annual 
review of its own performance and eﬀectiveness. The Board 
of Directors conducts the self-assessment on the basis of 
anonymous questionnaires which deal with the Board’s 
composition, organization and processes, the Board’s 
responsibilities governed by the Board Regulations as well  
as the focus areas and goals of the year under review. The 
topics are discussed and take-aways deﬁned to be 
incorporated in the goals for the upcoming year. In addition, 
each Board Committee annually reviews the adequacy of its 
composition, organization and processes as well as the 
scope of its responsibilities, assesses its accomplishments 
and evaluates its performance. In 2021, the Board created  
a dedicated Sustainability Committee as a result of its  
self- assessment process.
3.5.4 Lead Independent Director
The Lead Independent Director assumes the role of a prime 
intermediary between the Board and the Chair. He may 
convene and chair Board meetings and in-camera sessions, 
where the Chair is not present. He serves as an advisor to 
the Chair and acts as an intermediary between the Chair,  
the Board and the Board’s stakeholders. He chairs meetings 
of the independent directors to evaluate the performance  
of the Chair and the eﬀectiveness of the relationship 
between the Chair and the CEO.
Meetings held in 2021
Frequency
Average duration 
(hours)
Board of Directors of Nestlé S.A.
13 times
2:35
Chair’s and Corporate Governance Committee
8 times
1:55
Compensation Committee
5 times
1:20
Nomination Committee
6 times
1:05
Sustainability Committee
4 times
1:55
Audit Committee
4 times
2:25
Board members
Board meetings 
attended
Paul Bulcke
13
Ann M. Veneman
13
Dick Boer
12
Ulf Mark Schneider
13
Eva Cheng
12
Dinesh Paliwal
13
Henri de Castries
13
Patrick Aebischer
13
Hanne Jimenez de Mora
13
Renato Fassbind
12
Kasper B. Rorsted
13
Lindiwe M. Sibanda
13
Pablo Isla
13
Kimberly A. Ross
13

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Board of Directors
3.6 
Deﬁnition of areas of responsibility
The governing bodies have responsibilities as follows:
3.6.1 Board of Directors (1)
The Board of Directors is the ultimate governing body of the 
Company. It is responsible for the long-term strategy and the 
ultimate supervision of the Group. It oversees the Group’s 
economic, social and environmental sustainability. The Board 
attends to all matters which are not reserved for the Annual 
General Meeting or another governance body of the 
Company by law, the Articles of Association or speciﬁc 
regulations issued by the Board of Directors.
Under Nestlé’s governance model, the CEO 
(Administrateur délégué) is a full member of the Board 
of Directors, ensuring full alignment on its critical 
responsibilities and proper checks and balance between 
the Chair and CEO.
The Board has the following main duties:
a) the ultimate direction of the Company, in particular the 
conduct, management and supervision of the business 
of the Company, and the provision of necessary 
directions;
b) the determination of the Company’s organization;
c) the determination of accounting and ﬁnancial control 
principles, as well as the principles of ﬁnancial 
planning;
d) the appointment and removal of any Vice Chair, 
the Committee members (except the members 
of the Compensation Committee) and their Chairs 
and members of the Executive Board;
e) the ultimate supervision of the Chair and the members 
of the Executive Board, in particular with respect to 
their compliance with the law, the Articles of 
Association, the Board Regulations and instructions 
given from time to time by the Board;
f) the preparation of the Annual Report including the 
Compensation Report as well as the General Meetings 
and execution of their resolutions;
g) the notiﬁcation of the court in the event of over 
indebtedness;
h) the discussion and approval of:
– the Group’s long-term strategy and annual investment 
budget;
– major ﬁnancial operations;
– any signiﬁcant policy issue dealing with the Company’s 
or the Group’s general structure or with ﬁnancial, 
commercial and industrial policy;
– Corporate Governance Principles of the Company;
– the review of and decision on any report submitted 
to the Board;
– the Group’s annual risk assessment; and
– the compensation proposals to the General Meeting.
3.6.2 Executive Board
The Board of Directors delegates to the CEO, with the 
authorization to subdelegate, the power to manage the 
Company’s and the Group’s business, subject to law, 
the Articles of Association and the Board Regulations.
The CEO chairs the Executive Board and delegates to 
its members individually the powers necessary for carrying 
out their responsibilities, within the limits ﬁxed in the 
Executive Board Regulations.
3.7
Information and control instruments vis-à-vis 
the Executive Board
The Board of Directors is, at each of its meetings, informed 
on material matters involving the Company’s and the Group’s 
business. Except for regular in-camera sessions, the 
members of the Executive Board attend the Board of 
Directors meetings and report on current developments, 
signiﬁcant projects and events. Other members of 
management attend Board meetings to report on areas 
of the business for which they are responsible. Each Board 
member is entitled to request and receive information from 
the CEO and from other members of the Executive Board. 
In preparation for each Board meeting, the Board is provided 
with an overview of business performance and consolidated 
ﬁnancial information. In addition, regular written reports by 
the Executive Board are provided, including e.g. capital 
investment, risk, audit, compliance and strategy progress 
reports. The Chair and the CEO ensure the proper 
information ﬂow between the Executive Board and the Board 
of Directors. 
The Board pays a visit to a major Market every year, where 
it meets members of senior management. The Board visited 
the U.S. and the Swiss Market in 2018 and 2019, respectively. 
Due to the pandemic, no Board visit was possible in 2020. 
In 2021, the Board visited Nestlé Switzerland.
The Chair receives the agenda, documents and minutes 
of the meetings of the Executive Board as well as of the Key 
Markets and senior management meetings. He has regular 
(1) For complete information, please refer to the Board Regulations and Committee Charters on www.nestle.com/investors/corporate-governance/boardcommittees

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Board of Directors
meetings with the CEO and may request information about 
any matters relating to the Company. He may examine 
reports, proposals and minutes of meetings of any functions 
or committees of the Corporate Center or the markets or 
businesses.
The Chair’s and Corporate Governance Committee is 
regularly informed about the strategic management of the 
Group’s ﬁnancial assets and liabilities and ﬁnancial risk 
policies. It performs twice a year a review of the assets and 
liabilities management by the Company’s treasury, pensions 
and insurance departments with the Chief Financial Oﬃcer 
and the Head of Treasury, Pensions & Insurance being 
present. 
The Audit Committee reviews the ﬁnancial performance 
and assesses the eﬀectiveness of the internal and external 
audit processes as well as the internal risk management 
organization and processes. It reviews the reports on the 
eﬀectiveness of the systems for internal control and on the 
performance of the annual risk assessment at least once  
a year. It also reviews management’s reports on the 
Company’s compliance and risk management processes.  
It has complete and unrestricted access to the Company’s 
management, books and records and may obtain any 
information it requires from the appropriate services. 
Members of the Executive Board and other senior 
management, in particular the Heads of Group Accounting  
& Reporting, Internal Audit and Legal and Compliance, 
attend the Audit Committee meetings, except for certain 
in-camera sessions.
The Nomination Committee leads the succession planning 
for the Board of Directors.
The Sustainability Committee reviews reports on 
measures that ensure the long-term sustainability of the 
Company in its economic, social and environmental 
dimension. It monitors the Company’s performance against 
selected external sustainability indexes and reviews the 
annual Nestlé Creating Shared Value and Sustainability 
Report. It oversees the Company’s response to climate 
change, its human rights program and human capital 
management. Members of management, in particular the 
CEO, the Heads of Public Aﬀairs and of Legal, Governance 
and Compliance may attend the meetings.
The Compensation Committee reviews the Company’s 
compensation system and principles. The Head of Human 
Resources is invited to the meetings, part-time except when 
questions of compensation for Executive Board members 
are deliberated.
Additional information and control instruments include the 
external auditors, Ernst & Young Ltd, auditors of Nestlé S.A. 
and of the Consolidated Financial Statements of the Nestlé 
Group, who conduct their audit in compliance with Swiss law 
and in accordance with Swiss Auditing Standards and 
International Standards on Auditing, and the Nestlé Internal 
Audit function. 
Nestlé Internal Audit comprises an organization of one 
Center Team and eight regional units of auditors covering all 
the businesses (i.e. head oﬃces, factories, distribution 
centers and business units) worldwide, completing audit 
assignments on the basis of the annual internal audit plan 
based on an independent risk assessment that is approved 
by the Audit Committee.
The role of Nestlé Internal Audit is to enhance and protect 
organizational value by providing risk-based and objective 
assurance, advice and insight, contributing to the continuous 
improvement of the Company’s risk management and 
control systems. Nestlé Internal Audit assesses the reliability 
of ﬁnancial and operational information, the eﬀectiveness of 
controls and processes for compliance with internal, legal, 
regulatory and statutory requirements. Any ﬁndings are 
communicated in the form of an audit report, which is shared 
with management and the Audit Committee.
The Head of Nestlé Internal Audit reports administratively 
to the Chief Financial Oﬃcer and has a functional reporting 
line to the Chair of the Audit Committee. He reports at all the 
Audit Committee meetings, has direct access to the Chair  
of the Audit Committee and regularly meets with him for 
interim updates. The Audit Committee regularly receives  
a report on the results of the internal auditors’ work that is 
also provided to the Chair of the Board of Directors, 
Executive Board members and other stakeholders. It reviews 
and monitors management’s responsiveness to internal audit 
ﬁndings and recommendations. In case of major ﬁndings,  
a follow-up audit is planned to ensure proper remediation. 
Group Risk Management provides assistance to all 
corporate entities with regard to risk management. Group 
Risk Services provides assistance to all corporate entities 
with regard to loss prevention, claims handling and 
insurance. Enterprise Risk Management (ERM) is a process 
applied across the Group, designed to identify potential 
events that may aﬀect the Group’s achievement of its 
strategic objectives and support the Group to ensure it acts 
in accordance with external regulations and internal policies. 
It supports Nestlé’s management to raise risk awareness 
and to anticipate emerging risks, as well as the process of 
identifying appropriate mitigation actions.
The Nestlé Group adopts a dual approach using “Top-
Down” and “Bottom-Up” assessments. The “Top-Down” 
assessment occurs annually and focuses on the Group’s

Corporate Governance Report 2021
20
Board of Directors
global risks. A “Bottom-Up” assessment occurs in parallel 
resulting in the aggregation of individual assessments by all 
Markets, Regionally and Globally Managed Businesses. 
Additionally, Nestlé engages with external stakeholders 
to better understand the issues that are of most concern to 
them. For each issue, the materiality matrix (please refer to 
www.nestle.com/materiality) rates the degree of stakeholder 
concern and potential business impact.
Group ERM combines the output of the “Top-Down” 
assessment, the “Bottom-Up” assessments and the external 
stakeholder assessments which is presented annually to the 
Executive Board. The Annual Risk Report is reviewed by the 
Audit Committee, and material risks are reviewed by the 
Board of Directors on an annual basis.
For more information on the Nestlé Group Enterprise  
Risk Management, please refer to page 60 of the Annual 
Review 2021. 
Group Compliance and other risk- and control-related 
functions provide additional guidance and oversight. Risk 
and compliance activities are coordinated through the Group 
Compliance Committee to ensure a holistic, entity-wide 
approach. The Audit Committee is provided yearly with the 
Group Compliance Report, a comprehensive documentation 
of the Company’s compliance framework, systems, activities 
and improvement actions pursued by the various functions. 
It includes a summary of the feedback received on the 
Group’s internal and external integrity reporting systems  
as well as the functional third-party compliance audits 
(CARE). The Group Compliance Report is also reviewed by 
the Board of Directors.
For more information on the Group’s Governance and 
Compliance, please refer to pages 67 and 72 of the Annual 
Review 2021.

Corporate Governance Report 2021
21
Executive Board
4. 
Executive Board
4.1
Members of the Executive Board (December 31, 2021)
Name
Year of birth
Nationality
Education/Current function
Ulf Mark Schneider
1965
German/US
Economics, Business Administration and Finance & Accounting
CEO: Nestlé S.A.
Laurent Freixe
1962
French
Business Administration
EVP & CEO: Zone Americas
Chris Johnson
1961
US/Swiss
Economics and Business Administration
EVP & CEO: Zone Asia, Oceania and sub-Saharan Africa
Marco Settembri
1959
Italian
Business Administration
EVP & CEO: Zone Europe, Middle East and North Africa
François-Xavier Roger
1962
French
Business Administration and Finance & Accounting 
EVP: CFO (includes Finance and Control, Tax, Treasury,
Investor Relations)
Magdi Batato
1959
Swiss
Mechanical Engineering and PhD in Thermodynamics
EVP: Operations
Stefan Palzer
1969
German
PhD - Professorships Process Engineering, Food Technology, Industrial 
Engineering and Chemical Engineering
EVP: Chief Technology Oﬃcer: Innovation, Technology and R & D
Béatrice Guillaume-Grabisch
1964
French
Business Administration
EVP: Group Human Resources & Business Services
Leanne Geale
1965
Canadian
Law
EVP: General Counsel, Corporate Governance and Compliance
Bernard Meunier
1960
Belgian
Economics
EVP: Strategic Business Units, Marketing and Sales
Grégory Behar
1969
Swiss
Mechanical Engineering and Business Administration
Deputy EVP & CEO: Nestlé Health Science
Sanjay Bahadur
1959
Indian
Economics, Management Science
Deputy EVP: Group Strategy and Business Development
David Rennie
1966
British
History and Politics
Deputy EVP: Nestlé Coﬀee Brands
(EVP: Executive Vice President; CEO: Chief Executive Oﬃcer)
For complete information, please refer to individual CVs on www.nestle.com/aboutus/management/executiveboard

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22
Executive Board
4.2 
Professional background and other activities 
and functions (*)(**)
Ulf Mark Schneider
Please refer to point 3.2 above.
Laurent Freixe
Laurent Freixe joined Nestlé France  
in 1986 as a sales representative and 
got increasing responsibilities in the 
ﬁeld of sales and marketing. In 1999, he 
became a member of the Management 
Committee and was nominated Head 
of the Nutrition Division. In 2003, 
Laurent Freixe became Market Head of Nestlé Hungary.  
In January 2007, he was appointed Market Head of the 
Iberian Region taking responsibility for Spain and Portugal. 
From November 2008 to October 2014, Laurent Freixe 
served as Executive Vice President in charge of Zone Europe. 
Eﬀective October 2014, he was appointed Executive 
Vice President for Zone Americas.
As a representative of Nestlé, he is a member of the 
Board of Directors of Cereal Partners Worldwide S.A., 
Switzerland, of the Regional Board of Directors of  
the Consumer Goods Forum in Latin America and  
of Froneri Lux Topco Sàrl, Luxembourg.
Since June 2019, he is Chairman of the Global 
Apprenticeship Network (GAN).
Laurent Freixe has been named International Youth 
Ambassador by the International Youth Organization  
for Ibero-America.
Chris Johnson
Chris Johnson started his career with 
Nestlé in 1983 as a marketing trainee  
at Carnation Inc. During his ﬁrst eight 
years, he took on increasing 
responsibilities mainly in the 
commercial area at Nestlé USA and 
then, from 1991, in Japan. Senior Area 
Manager for the Asian region of Nestlé Waters in Paris 
from 1995, he was then transferred to Taiwan in 1998 as 
Market Head. From 2000, Chris Johnson led the worldwide 
development and implementation of GLOBE (Global 
Business Excellence; IS/IT), the Strategic Supply Chain as 
well as eNestlé. He was appointed Deputy Executive Vice 
President in April 2001, and later moved back to Japan in 
2007 as Market Head. From January 2011 to October 2014, 
Chris Johnson was Executive Vice President responsible  
for Zone Americas. 
Eﬀective October 2014, he was appointed Executive 
Vice President of Nestlé S.A. in charge of Nestlé Business 
Excellence.
From August 2018 to end December 2018, Chris Johnson 
was appointed Head of Group Human Resources & Business 
Services in addition to his responsibilities for Nestlé Business 
Excellence. Eﬀective January 2019, he was appointed 
Executive Vice President for Zone Asia, Oceania and  
sub-Saharan Africa. 
As a representative of Nestlé, Chris Johnson serves  
on the Board of Cereal Partners Worldwide S.A., Switzerland.
Chris Johnson is also Treasurer of the Swiss-American 
Chamber of Commerce.
Marco Settembri
Marco Settembri joined the Nestlé Group 
with Nestlé Italiana S.p.A. in 1987 and 
was entrusted with various 
responsibilities, mainly in the PetCare 
area. He was appointed Managing 
Director of the Sanpellegrino water 
business in 2004 and largely contributed 
to the successful consolidation of the water activities in Italy 
and to the development of a strong export stream of the 
emblematic Italian brands. In 2006, he took over the position 
of Market Head in Italy in addition to his responsibility as 
Head of Nestlé Waters Italy. In 2007, Marco Settembri was 
appointed CEO of Nestlé Purina PetCare Europe.
Eﬀective December 2013, Marco Settembri was appointed 
to the Executive Board of Nestlé S.A. as Executive Vice 
President, Head of Nestlé Waters of the Nestlé Group.
As of January 2017, Marco Settembri was appointed 
Executive Vice President in charge of Zone EMENA (Europe, 
Middle East and North Africa). 
As a representative of Nestlé, he is a Board member  
of Lactalis Nestlé Produits Frais S.A.S, France, and of  
Cereal Partners Worldwide S.A., Switzerland.
In addition, Marco Settembri is President of the Board  
of FoodDrinkEurope and a member of the Association des 
Industries de Marque de l’Union Européenne (AIM) in Belgium.
(*) Mandates and functions are listed in the following order: (1) mandates in listed companies, (2) mandates in non-listed companies, (3) mandates held at the request of 
Nestlé or companies controlled by it, (4) mandates held in associations, charitable organizations, foundations, trusts and employee welfare foundations.
(**) For information on former members of the Executive Board see www.nestle.com/investors/corporate-governance/former-executive-board-members

Corporate Governance Report 2021
23
Executive Board
François-Xavier Roger 
In July 2015, François-Xavier Roger 
joined Nestlé S.A. as Executive Vice 
President and Chief Financial Oﬃcer. 
François-Xavier Roger came to 
Nestlé S.A. from Takeda 
Pharmaceutical, Tokyo, where he was 
CFO since 2013. From 2008 to 2013, he 
was Chief Financial Oﬃcer of Millicom based in Luxembourg.  
From 2000 to 2008, he worked as Chief Financial Oﬃcer  
for Danone Asia, followed by Head of Finance, Treasury and 
Tax for the Danone Group based in Paris, France.
Magdi Batato
Magdi Batato is a mechanical engineer 
and holds a PhD in Energetics of the 
human body from the Swiss Federal 
Institute of Technology Lausanne (EPFL). 
He spent a few years teaching in 
university and consulting before joining 
Nestlé S.A. in 1991 in Switzerland as 
Engineer in Industrial Services, Energy & Environment. His 
factory and production management experiences took him 
to Germany, Lebanon and South Africa. In 2004, he was 
transferred to Malaysia as Executive Director of Production 
and, in 2009, he moved to Nestlé UK & Ireland as Head of 
Group Technical. In May 2012, he took up the position of 
Market Head Pakistan.
Eﬀective October 2015, he was appointed Executive 
Vice President of Nestlé S.A. in charge of Operations.
Magdi Batato is a member of the Board of Carlsberg A/S 
and a member of the executive committee of the World 
Business Council for Sustainable Development. Since 
May 2018, he is a member of the Swiss Academy of 
Technical Sciences and as of 2020 he is Chairman of IDH, 
the Sustainable Trade Initiative.
Stefan Palzer
Stefan Palzer studied food engineering 
and marketing. He obtained a PhD  
in Chemical Engineering from the 
Technical University of Munich and  
was appointed Professor for Food  
and Chemical Engineering by the 
Universities of Hamburg, Stuttgart, 
Sheﬃeld and Copenhagen. Stefan Palzer joined the Nestlé 
Group in 2000 in the Product Technology Centre Kemptthal. 
From 2003 to 2010, he held positions of increasing 
responsibility in R&D.
In 2010, he took over the responsibility as Head of the 
Product Technology Centre York. From 2013 to 2017,  
Stefan Palzer was Innovation Manager in the Strategic 
Business Unit for Beverages. In 2016, he was appointed 
Head of Nestlé Research in Lausanne. 
As of January 2018, Stefan Palzer joined the Executive 
Board of Nestlé S.A. as Executive Vice President and Chief 
Technology Oﬃcer.
In addition, he is a member of the Executive Board of the 
European Academy of Food Engineering, member of the 
University Councils of Hamburg and Stuttgart and Vice 
President of the Swiss Food & Nutrition Valley.
Until 2018, Stefan Palzer was Chairman of the Board of  
the European Master in Food Technology. In 2018, he was 
conferred the title “Fellow” by the International Union of 
Food Science and Technology (IUFOST). 
Béatrice Guillaume-Grabisch
Béatrice Guillaume-Grabisch joined 
Nestlé in 2013 as Vice President, 
Regional Manager of Zone EMENA 
based in Vevey, Switzerland. She 
served as CEO of Nestlé Germany AG 
from 2015 to 2018. Before joining 
Nestlé, she held various leadership 
roles at Colgate, Beiersdorf, Johnson & Johnson and 
“L’Oréal Paris” in Germany. She headed the L’Oréal 
Consumer Division in Switzerland between 2004 and 2006. 
From 2006 to 2010, she was President of The Coca-Cola 
Company in Germany. In 2010, she became the CEO of 
Zurich-based Beverage Partners Worldwide, a former joint 
venture between Nestlé and Coca-Cola. 
Eﬀective January 2019, Béatrice Guillaume-Grabisch  
was appointed Executive Vice President in charge of Group 
Human Resources & Business Services. 
As a representative of Nestlé, she is a Board member  
of L’Oréal S.A., France, and member of its audit committee.
Leanne Geale
Leanne Geale joined Nestlé S.A.  
in August 2019 as Executive Vice 
President and General Counsel, 
Corporate Governance & Compliance.
In her role, Leanne Geale oversees  
the legal and compliance function. 
From 2014 to 2019, Leanne Geale was 
Chief Ethics & Compliance Oﬃcer for Royal Dutch Shell plc. 
Former positions at Shell include Associate General Counsel, 
Heavy Oil and Head of Legal for Shell Canada from 2011 to 2014,

Corporate Governance Report 2021
24
Executive Board
Shell Legal Services Coordinator for Royal Dutch Shell plc 
and its subsidiaries from 2006 to 2011 as well as Senior 
Solicitor and successively Associate General Counsel, 
Oil Products from 2003 to 2006. Prior to her functions at 
Shell, she was a Senior Counsel for the Royal Bank of Canada, 
Senior Counsel and Assistant Secretary for Rio Algom Limited 
as well as Counsel for Alcan Aluminium Limited in Canada.
Leanne Geale is a member of the Management Board  
of the CEELI Institute, o.p.s, Prague, Czech Republic.
Bernard Meunier
Bernard Meunier joined the Nestlé 
Group in October 1985 as Product 
Manager Beverages with Nestlé 
Belgilux in Belgium. In 1989, he 
embarked on an international career 
with a ﬁrst step at Nestlé Headquarters 
Vevey with the Coﬀee & Beverages SBU. 
He then moved on to various assignments where he 
successfully held marketing, commercial and general 
management responsibilities, including Market Head in 
Hungary, the Russia & Eurasia region, the Iberia region and 
from 2013 to 2021, Head of Nestlé Purina PetCare EMENA. 
Eﬀective March 2021, Bernard Meunier was appointed to the 
Executive Board of Nestlé S.A. as Executive Vice President 
with responsibility for the Strategic Business Units, Marketing 
and Sales.
As a representative of Nestlé, he is Co-Chairman of 
Cereal Partners Worldwide, Switzerland.
Grégory Behar
Grégory (Greg) Behar joined Nestlé S.A. 
in 2014 as CEO of Nestlé Health Science. 
Greg Behar came to Nestlé S.A.  
from Boehringer Ingelheim 
Pharmaceuticals Inc., USA, where he 
was President and CEO since 2011.
From 2010 to July 2011, Greg Behar 
was Corporate Vice President Region NECAR (North European 
Union, Canada and Australasia) for Boehringer-Ingelheim GmbH 
and was its Corporate Vice President of the Cardiovascular 
and Metabolism Franchise from 2009 to 2010. Furthermore, 
Greg Behar held previous roles at Bula & Fils, Nestlé and 
Novartis Pharma. 
As of January 2017, he was appointed to the Executive 
Board of Nestlé S.A.
Greg Behar serves on the Board of Sonova AG, Switzerland.
He represents Nestlé S.A. on the Boards of various 
companies in which Nestlé S.A. holds investments, including  
Seres Therapeutics Inc., USA, Axcella Health Inc., USA  
and Amazentis SA, Switzerland.
Sanjay Bahadur
Sanjay Bahadur joined Nestlé 
in June 1982 as Management Trainee  
in India, before being promoted as 
Financial Analyst and Management 
Accountant. In 1991, he joined Nestlé  
in Switzerland as Operations Controller.
During the period 1994 to 2008, he 
held the position of Chief Financial Oﬃcer in Hong Kong, 
Turkey and the Greater China Region, respectively.
In 2008, Sanjay Bahadur was transferred to Nestlé 
Headquarters Vevey, Switzerland, as Head of Acquisitions 
and Business Development.
Eﬀective January 2020, he was appointed Deputy 
Executive Vice President of Nestlé S.A. in charge of Group 
Strategy and Business Development.
As representative of Nestlé, Sanjay Bahadur is a member 
of the Board of Froneri Lux Topco Sàrl, Luxembourg.
Sanjay Bahadur serves on the Advisory Board of the 
Imperial College Business School, London, UK.
David Rennie
David Rennie joined the Nestlé Group  
in 2005 as Marketing Director for 
Nestlé Confectionery in the UK and 
Ireland. He came to Nestlé from  
Procter and Gamble where he held  
a number of leadership roles at local, 
regional and global level over a sixteen-
year period from 1989 to 2005. From 2009 until 2012,  
David Rennie was Managing Director, Nestlé Confectionery, 
UK & Ireland and from 2012 to 2014, he held the position of 
Vice President, Regional Manager Zone Europe Nestlé S.A.
During the period 2014 to 2018, he was Senior Vice 
President, Europe of SC Johnson.
In 2018, David Rennie was appointed Senior Vice President, 
Head of Beverage Strategic Business Unit, Nestlé S.A.
As of January 2020, David Rennie was appointed Deputy 
Executive Vice President, Head of Nestlé Coﬀee Brands and 
eﬀective March 2021, he was appointed to the Executive 
Board of Nestlé S.A. as Deputy Executive Vice President, 
Head of Nestlé Coﬀee Brands and Chairman of Nespresso.

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25
Executive Board
Compensation, shareholdings 
and loans
4.3 
Mandates outside Nestlé
Pursuant to art. 21sexies of the Articles of Association,  
no member of the Executive Board may hold more than 
2 additional mandates in listed companies and 4 additional 
mandates in non-listed companies. Each of these mandates 
is subject to a speciﬁc approval by the Board of Directors.
The following mandates are not subject to these 
limitations:
– mandates in companies which are controlled by Nestlé;
– mandates which a member of the Executive Board holds 
at the request of Nestlé or companies controlled by it. 
No member of the Executive Board shall hold more than 
10 such mandates; and 
– mandates in associations, charitable organizations, 
foundations, trusts and employee welfare foundations. 
No member of the Executive Board shall hold more than 
10 such mandates.
Mandates shall mean mandates in the supreme governing 
body of a legal entity which is required to be registered in 
the commercial register or a comparable foreign register. 
Mandates in diﬀerent legal entities which are under joint 
control are deemed one mandate.
The Board of Directors has promulgated regulations  
that determine additional restrictions.
All members of the Executive Board comply with the 
provisions set out in art. 21sexies.
4.4
Management contracts 
There are no management contracts with third parties 
at Nestlé.
5. 
Compensation, shareholdings and loans
Please refer to the Compensation Report 2021, page 33.

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26
Shareholders’ participation
6. 
Shareholders’ participation rights
6.1
Voting rights restrictions and representation 
6.1.1 Voting rights restrictions and rules on 
granting exceptions 
and
6.1.3 Reasons for granting exceptions in the year 
under review 
Each share registered with the right to vote entitles the 
holder to one vote at General Meetings (“one share, one vote”). 
Only persons entered in the share register as shareholders 
with voting rights may exercise the voting rights or the other 
rights related thereto (art. 5 par. 2 of the Articles of 
Association).
No person may exercise, directly or indirectly, voting 
rights, with respect to own shares or shares represented  
by proxy, in excess of 5% of the share capital as recorded  
in the commercial register. Legal entities that are linked to 
one another through capital, voting rights, management or  
in any other manner, as well as all natural persons or legal 
entities achieving an understanding or forming a syndicate 
or otherwise acting in concert to circumvent such a limit 
shall be counted as one shareholder (art. 11 par. 2 of the 
Articles of Association; see art. 11 par. 3 of the Articles  
of Association for exceptions to this voting restriction). 
To permit the exercise of voting rights in respect of shares 
held by nominees, in line with art. 11 par. 4 of the Articles  
of Association, the Board of Directors may by means  
of regulations or agreements depart from the limit of 5%  
of the share capital as recorded in the commercial register 
(art. 5 par. 6 and par. 9 of the Articles of Association). The 
Board of Directors has granted exceptions to vote shares 
that in aggregate are in excess of 5% of the share capital  
to the following Nominees N: Chase Nominees Ltd, London, 
and Citibank N.A., London, as depositary for shares 
represented by American Depositary Receipts (please refer 
to point 2.6.3).
Pursuant to art. 5 par. 9 and 11 par. 4 of the Articles  
of Association, the Board of Directors has conferred to  
Credit Suisse AG and UBS AG as custodians the right to vote 
shares in excess of 5% on the basis of speciﬁc instructions 
provided by their clients for General Meetings.
6.1.4 Procedure and conditions for abolishing voting rights 
restrictions in the Articles of Association
A resolution to amend the provisions of the Articles  
of Association relating to:
(i) restrictions on the exercise of voting rights and the 
change or removal of such restrictions, or 
(ii) the limitation on registration or the limitation on voting 
rights and the change or removal of such limitations 
requires a majority of two-thirds of the shares represented 
and the absolute majority of the nominal value represented 
at the General Meeting (art. 13 of the Articles of 
Association). See also art. 11 par. 4 of the Articles  
of Association. 
6.1.5 Rules on participation in the General Meeting 
of shareholders
There are no restrictions to the legal regime set out by Swiss 
law in the Articles of Association. Shareholders with voting 
rights may have their shares represented by the proxy  
of their choice.
6.1.6 Rules on instructions to the independent 
representative and on the electronic participation 
in the General Meeting of shareholders
The legal regime set out by Swiss law applies to instructions 
in written or electronic form to the independent representative 
for participation in the General Meeting of shareholders. 
There are no speciﬁc provisions related thereto in the Articles 
of Association.
6.2 
Quorums required by the Articles of Association
Please refer to art. 13 of the Articles of Association. 
6.3 
Convocation of the General Meeting 
of shareholders
Nestlé S.A. statutory rules (art. 7 to 9 of the Articles of 
Association) do not diﬀer from applicable legal provisions. 
An Extraordinary General Meeting requested by one or more 
shareholders whose combined holdings represent at least 
10% of the share capital as recorded in the commercial 
register must be held as promptly as practicable following 
such request (art. 8 par. 2 of the Articles of Association).

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27
Change of control and 
defence measures
Shareholders’ participation
6.4 
Inclusion of items on the agenda
One or more shareholders with voting rights whose 
combined holdings represent at least 0.15% of the share 
capital as recorded in the commercial register may request 
that an item be included in the agenda of the General 
Meeting by making the request in writing to the Board  
of Directors at the latest 45 days before the meeting and 
specifying the agenda items and the proposals made  
(art. 9 par. 2 and par. 3 of the Articles of Association).
6.5 
Entries in the share register
The relevant date to determine the shareholders’ right  
to participate in the General Meeting on the basis of  
the registrations appearing in the share register is set  
by the Board of Directors.
7.
Change of control and defence measures
7.1
Duty to make an oﬀer
Nestlé S.A. does not have a provision on opting out or  
opting up in the Articles of Association. 
Thus, the provisions regarding the legally prescribed 
threshold of 33 ¹⁄3% of the voting rights for making a public 
takeover oﬀer set out in art. 135 of the Swiss Financial 
Market Infrastructure Act are applicable.
7.2
Clauses on change of control
There are no such agreements.

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28
Auditors
8. 
Auditors
8.1
Duration of the mandate and term of oﬃce 
of the lead auditor
EY were ﬁrst appointed on April 23, 2020 as auditors of 
Nestlé S.A. On April 15, 2021, EY were appointed as auditors 
of the Financial Statements of Nestlé S.A. and the 
Consolidated Financial Statements of Nestlé Group for  
a term of one year.
The audit report is signed jointly by two EY partners  
on behalf of EY. 2020 was the ﬁrst year that Jeanne Boillet,  
in her capacity as lead auditor, signed the Financial 
Statements of Nestlé S.A. and the Consolidated Financial 
Statements of the Nestlé Group. The lead auditor is rotated 
every seven years in accordance with Swiss law. 
8.2 
Auditing fees
The auditing fees paid to EY in their capacity as Group 
auditors for 2021 amount to CHF 31.2 million. 
8.3 
Additional fees
In addition, EY provided non-audit services amounting to 
CHF 8.8 million, including CHF 5.2 million for tax services, 
CHF 1.8 million for IS/IT advisory support, CHF 0.8 million  
for mergers and disposals services, and CHF 1.0 million  
for other various non-audit services. 
8.4 
Information instruments pertaining 
to the external audit 
EY presents to the Audit Committee a detailed report on  
the conduct of the Financial Statements audit, the ﬁndings 
on signiﬁcant ﬁnancial accounting and reporting issues 
together with the ﬁndings on the internal control system  
as well as an overview of issues found during the interim 
audit.
In 2021, EY participated in four Audit Committee meetings 
including sessions with the Audit Committee without the 
Group’s management being present.
The Audit Committee assesses the eﬀectiveness of the 
work of the auditors in accordance with Swiss law, based  
on their understanding of the Group’s business, control, 
accounting and reporting issues, together with the way  
in which matters signiﬁcant at Group level or in the statutory 
accounts are identiﬁed and resolved.
The Audit Committee is also informed on the work of the 
auditors through regular brieﬁngs of its Chair. Audit fees  
are ultimately approved by the Audit Committee.
The Group and EY have agreed on clear guidelines for 
non-audit services which are permitted for EY to provide. 
These services include sell-side and carve-out support on 
disposals and certain tax and business risk assurance and  
IT advisory support. These guidelines ensure EY’s 
independence in their capacity as auditors to the Group.  
EY monitors its independence throughout the year and 
conﬁrms its independence to the Audit Committee annually.

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29
Information policy
9.
Information policy 
Investor Relations – guiding principles
Nestlé is committed to managing an open and consistent 
communication policy with shareholders and other interested 
parties. The objective is to ensure that the perception of those 
parties about the historical record, current performance and 
future prospects of Nestlé is in line with management’s 
understanding of the actual situation at Nestlé. The guiding 
principles of this policy are that Nestlé gives equal treatment 
to shareholders in equal situations, that any price-sensitive 
information is published in a timely fashion and that the 
information is provided in a format that is as full, simple, 
transparent and consistent as possible.
 
Methodology 
Each year, Nestlé produces a detailed Annual Report,  
which consists of i) the Annual Review, ii) the Consolidated 
Financial Statements of the Nestlé Group, iii) the Financial 
Statements of Nestlé S.A., iv) the Corporate Governance 
Report, and v) the Compensation Report. The Consolidated 
Financial Statements are prepared according to the 
International Financial Reporting Standards (IFRS). The  
Half-Year Report, consisting of the Half-Year Income 
Statement, Balance Sheet and Cash Flow Statement, 
complements the Annual Report. The Company also issues 
annually its Creating Shared Value and Sustainability Report.
Nestlé publishes its Financial Statements for the full-year 
and the half-year. Additionally, the Company publishes its 
sales ﬁgures for the ﬁrst three-months and nine-months. 
Press releases accompany the ﬁnancial results and sales 
announcements, and are also issued at the time of potentially 
price-sensitive events, such as signiﬁcant acquisitions and 
divestments, joint venture agreements or alliances. These 
communications are publicly available on the internet. Major 
announcements, such as results of corporate activity, are 
accompanied by a presentation which is broadcast “live”  
on the internet and which anyone can access, whether or not 
that person is a shareholder. 
Furthermore, Nestlé has an active investor relations (IR)
program. Throughout the year, IR engages with investors 
(current or prospective) and relevant sell-side analysts in 
virtual and in-person meetings, conference calls, roadshows, 
broker conferences, or other events. In certain cases, 
members of management might also participate in some 
meetings with the ﬁnancial community, including both group 
meetings and one-to-one meetings. Topics of discussion 
may include recently announced ﬁnancial results, recent 
corporate activity, or the longer-term strategy of the Group; 
they are not an occasion for the disclosure of new information 
which might encourage investment decisions. Speciﬁcally  
on governance topics, the Company engages in an active 
dialogue with investors through regular Chairman’s 
roundtables, surveys and bilateral exchanges which are 
reported to the Chair’s and Corporate Governance Committee 
or the Board.
The Company uses its website (www.nestle.com/investors) 
to ensure a rapid and equitable distribution of information. 
There are also links to non-ﬁnancial information that may be 
of interest to investors, including areas such as the 
environment, sustainability and news about brands and 
innovation. A corporate calendar of relevant dates is 
displayed on page 73 of the Annual Review 2021 and 
available on the IR events pages 
(www.nestle.com/investors/events).
The Nestlé Investor Relations Department can be 
contacted via the following coordinates: 
Contact 
Investor Relations 
Nestlé S.A., Avenue Nestlé 55 
1800 Vevey (Switzerland)
Tel. +41 (0)21 924 35 09 
E-mail: ir@nestle.com

Corporate Governance Report 2021
30
Close Periods
10.
Close Periods  
The Nestlé Policy on Inside Information foresees the 
following Close Periods, during which trading in Nestlé S.A. 
shares and other Nestlé securities is not allowed: January 1 up 
to and including the trading day of the public announcement 
of the annual results; April 1 up to and including the trading 
day of the public announcement of the sales ﬁgures of the 
Nestlé Group for the ﬁrst three months; July 1 up to and 
including the trading day of the public announcement of the 
half-yearly results; and October 1 up to and including the 
trading day of the public announcement of the sales ﬁgures 
for the ﬁrst nine months. The Close Periods cover the 
members of the Board of Directors and Executive Board of 
Nestlé S.A., as well as relevant employees of Departments at 
the Headquarter who have access to privileged information 
related to the preparation and communication of the full-year 
and interim ﬁnancial statements. In addition, they cover 
relevant employees in Globally Managed Businesses and Key 
Markets of the Nestlé Group who have access to such 
information. No exceptions are granted.

Corporate Governance Report 2021
31
Human Resources
& Business Services
Béatrice 
Guillaume-Grabisch
Corporate 
Communications
Lisa
Gibby
Nestlé 
Health Science
Greg 
Behar
Finance & Control
François-Xavier 
Roger
Zone EMENA:
Europe, Middle East 
& North Africa
Marco 
Settembri
Chairman
Paul 
Bulcke
General Counsel, 
Corporate Governance 
and Compliance
Leanne
Geale
Strategic 
Business Units,
Marketing and Sales
Bernard 
Meunier
Innovation Technology 
and R & D
Stefan 
Palzer
Zone AMS:
Americas
Laurent 
Freixe
Chief 
Executive Oﬃcer
Ulf Mark 
Schneider
Secretary 
to the Board
David 
Frick
Group Strategy and 
Business Development
Sanjay 
Bahadur
Nestlé Coﬀee Brands
David 
Rennie
Operations
Magdi 
Batato
Organizational 
Eﬃciency
Wolfgang
Pasewald
Zone AOA:
Asia, Oceania 
& Africa
Chris 
Johnson
General Organization 
of Nestlé S.A.
at December 31, 2021
Executive Board
Ulf Mark Schneider
Laurent Freixe
Chris Johnson
Marco Settembri
François-Xavier Roger
Magdi Batato
Stefan Palzer
Béatrice Guillaume-Grabisch
Leanne Geale
Bernard Meunier
Greg Behar
Sanjay Bahadur
David Rennie

Corporate Governance Report 2021
32

Compensation  
Report 2021
Compensation Report 2021
33

34
Compensation Report 2021
Compensation Report 2021
Introduction 
The future success of Nestlé is dependent on its ability to 
attract, motivate and retain the right talented employees. 
Among the various programs to support this ambition is 
a competitive remuneration policy. Nestlé believes in 
a performance culture as well as good corporate governance 
and corporate social responsibility.
Therefore, remuneration at Nestlé is based on the 
following principles:
– pay for performance to support the Company’s short-term 
and long-term objectives;
– compensation aligned with long-term Group strategy and 
shareholders’ interests;
– coherence in our remuneration plans and levels 
throughout the Company;
– competitiveness versus external market comparisons;
– appropriate balance of ﬁxed and variable remuneration 
and short-term and long-term rewards.
This Compensation Report shall be submitted to the 
advisory vote of the shareholders at the Annual General 
Meeting 2022.
At the 2021 Annual General Meeting, shareholders 
approved the total compensation budgets for the Board  
of Directors and the Executive Board with large majorities.
To ensure complete accountability, the shareholders will 
be able to retrospectively vote on the Compensation Report 
and payouts in a consultative vote.
Changes to Compensation
For 2021 the following change has been implemented: 
Environmental, Social, Governance (ESG) related KPIs are 
included in the Short-Term Bonus framework of the 
Executive Board.

35
Compensation Report 2021
Compensation Report 2021
Governance
The Board of Directors has the overall responsibility for deﬁning the compensation principles 
used in the Group. Pursuant to art. 21bis of Nestlé’s Articles of Association (*), the total 
compensation of the Board of Directors and of the Executive Board is subject to approval  
by the shareholders, upon proposal by the Board of Directors.
As of December 31, 2021, the governance for setting the compensation of the members  
of the Board of Directors and the Executive Board is deﬁned as follows:
Compensation of
Recommended by
Approved by
Board of Directors as a whole
Board of Directors
Shareholders
Executive Board as a whole
Board of Directors
Shareholders
Chair of the Board, CEO
Compensation Committee
Board of Directors (a)
Non-executive members of the Board of Directors
Compensation Committee
Board of Directors (b)
Members of the Executive Board
CEO together with Chair
Compensation Committee (c)
(a) Chair as well as CEO not voting on own compensation, and not participating in the relevant meetings.
(b) Members not voting on own compensation to the extent that Committee fees are concerned.
(c) Executive Board members not participating in the relevant meetings.
Compensation Committee (CC)
The CC is governed by the Compensation Committee Charter (see point 3.5.2 in the 
Corporate Governance section). The Committee consists of the Chair who is an independent 
and non-executive member of the Board. The other members shall be a minimum of three 
other non-executive members of the Board.
The members of the CC have been elected by the shareholders for one year. The Chair 
was appointed by the Board of Directors. On December 31, 2021, the composition of the  
CC is as follows:
Chair
Members
Pablo Isla
Patrick Aebischer
Dick Boer
Kasper B. Rorsted
The tasks and areas of responsibility of the CC are described on page 14 of the Corporate 
Governance Report 2021.
(*) Nestlé S.A.’s Articles of Association can be found on page 55 and on www.nestle.com/investors/corporate-governance/articles

36
Compensation Report 2021
Compensation Report 2021
Board of Directors
Principles of compensation for the members of the Board of Directors
Governance
Pursuant to art. 21bis par. 1 of Nestlé’s Articles of Association, the General Meeting shall 
approve annually the proposal of the Board of Directors in relation to the maximum 
aggregate amount of the compensation of the Board of Directors for the period until the next 
Annual General Meeting (a).
In the event the General Meeting has not approved a proposal of the Board of Directors, 
the Board of Directors shall determine the respective maximum aggregate amount or 
maximum partial amounts of compensation provided that:
a) the Board of Directors takes into account (i) the proposed maximum aggregate amount 
of compensation; (ii) the decision of the General Meeting and, to the extent known to 
the Board of Directors, the main reasons for the negative vote; and (iii) Nestlé’s 
compensation principles; and
b) the Board of Directors submits the amount(s) so determined for approval by the same 
General Meeting, a subsequent Extraordinary General Meeting or the next Annual 
General Meeting (art. 21bis par. 2 of the Articles of Association).
The compensation of the members of the Board of Directors is subject to “claw back” rules 
in accordance with art. 678 of the Swiss Code of Obligations. Members of the Board  
of Directors could be obligated to return beneﬁts received from the Company to the extent 
these are manifestly disproportionate to the performance rendered in return and to the 
Company’s economic situation (including as a result of fraud or accounting misstatement).
Principles
The remuneration of the members of the Board of Directors is set to attract and retain highly 
qualiﬁed individuals to serve on the Board of Directors. The level of remuneration reﬂects  
the time and eﬀort required from the members in fulﬁlling their Board and Committee 
responsibilities. The pay structure (cash and blocked shares) is designed to ensure the 
Board’s focus on the long-term success of the Company. There is no variable compensation 
for non-executive members of the Board of Directors, in order to ensure a proper level  
of independence.
The principal benchmark used to deﬁne Board remuneration is a selection of large Swiss 
Market Index (SMI) companies (b), adjusted for the size of Nestlé. These ﬁgures are 
periodically reviewed against this benchmark.
Compensation 2021 for the members of the Board of Directors
Board membership fees and allowances
With the exception of the Chair and the CEO, each member of the Board of Directors 
receives a Board membership fee of CHF 280 000 and an Expense Allowance  
of CHF 15 000. These ﬁgures have remained unchanged since 2006.
(a) The Board of Directors may submit for approval by the General Meeting deviating or additional proposals relating to the 
same or diﬀerent periods.
(b) Novartis, Roche, Richemont, ABB, UBS and Credit Suisse.

37
Compensation Report 2021
Compensation Report 2021
Members of a Board Committee receive the following additional fees (a):
Chair
Members
Chair’s and Corporate Governance Committee
CHF 300 000
CHF 200 000
Compensation Committee
CHF 150 000
CHF  70 000
Nomination Committee
CHF 150 000
CHF  70 000
Sustainability Committee
CHF 150 000
CHF  70 000
Audit Committee
CHF 150 000
CHF 100 000
(a) The Chair and the CEO Committee fees are included in their total remuneration.
Committee membership on December 31, 2021
Chair’s
and Corporate 
Governance 
Committee
Compensation 
Committee
Nomination 
Committee
Sustainability 
Committee
Audit 
Committee
Paul Bulcke, Chairman
• (Chair)
•
Ulf Mark Schneider, Chief Executive Oﬃcer
•
Henri de Castries, Vice-Chairman,
Lead Independent Director
•
• (Chair)
•
Pablo Isla
•
• (Chair)
Renato Fassbind
•
• (Chair)
Ann M. Veneman
•
• (Chair)
Eva Cheng
•
•
Patrick Aebischer
•
Kasper B. Rorsted
•
Kimberly A. Ross
•
Dick Boer
•
•
Dinesh Paliwal
•
Hanne Jimenez de Mora
•
Lindiwe M. Sibanda
•
The above fees and allowances cover the period between the Annual General Meeting 2021 
and the Annual General Meeting 2022. They are paid in two instalments in arrears. Board 
membership and Committee fees are paid 50% in cash and 50% in Nestlé S.A. shares, 
which are subject to a three-year blocking period. The blocking period remains applicable 
upon termination of the mandate.
The number of Nestlé S.A. shares is determined by taking the closing price of the share 
on the SIX Swiss Exchange on the ex-dividend date of the respective ﬁnancial year. 
Ursula Burns did not stand for re-election at the Annual General Meeting on April 15, 2021,  
and left the Board of Directors.

38
Compensation Report 2021
Compensation Report 2021
Compensation payout 2021
At the Annual General Meeting of April 15, 2021, the shareholders approved a maximum 
compensation for the Board of Directors of CHF 10.0 million for the period from the Annual 
General Meeting 2021 to the Annual General Meeting 2022. The total actual compensation 
pay-out for this period including social security contributions is CHF 9 704 954.
Summary of compensation 2021 **
Cash 
in CHF (a)
Market 
value of
shares 
in CHF (b)
Total Cash 
& Shares
Social 
security
& addit. 
Fees (c)
Total 
Compensation
Paul Bulcke, Chairman
 — 
3 500 000 
3 500 000 
28 680 
3 528 680 
Ulf Mark Schneider, Chief Executive Oﬃcer (d)
 — 
 — 
 — 
 — 
 — 
Henri de Castries, Vice Chairman,  
Lead Independent Director
380 000 
365 000 
745 000 
28 680 
773 680 
Renato Fassbind
330 000 
315 000 
645 000 
28 680 
673 680 
Ann M. Veneman
330 000 
315 000 
645 000 
25 000 
670 000 
Eva Cheng
240 000 
225 000 
465 000 
21 285 
486 285 
Patrick Aebischer 
190 000 
175 000 
365 000 
42 695 
407 695 
Kasper B. Rorsted
190 000 
175 000 
365 000 
 — 
365 000 
Pablo Isla
330 000 
315 000 
645 000 
28 680 
673 680 
Kimberly A. Ross
205 000 
190 000 
395 000 
 — 
395 000 
Dick Boer
225 000 
210 000 
435 000 
 — 
435 000 
Dinesh Paliwal
190 000 
175 000 
365 000 
19 755 
384 755 
Hanne Jimenez de Mora
190 000 
175 000 
365 000 
19 755 
384 755 
Lindiwe M. Sibanda
190 000 
175 000 
365 000 
19 755 
384 755 
Total for 2021
2 990 000 
6 310 000 
9 300 000 
262 965 
9 562 965 
**  The above table shows the annual compensation due covering the twelve-month period starting with the Annual General 
Meeting.
(a)  The cash amount includes the expense allowance of CHF 15 000. The Chairman receives no expense allowance.
(b)  The Board is paid in arrears (25% in October 2021 and 75% in April 2022). The Nestlé S.A. shares equivalent to 50% of the 
annual remuneration will be delivered at the end of the Board year in April 2022. They will be valued at the closing price of the 
share on the SIX Swiss Exchange on the ex-dividend date 2022. The actual number of shares delivered will be published in the 
Compensation Report 2022. In 2021, 51 331 shares have been delivered to the Board. 
(c)  Since Company contributions to social security are based on full earnings, whereas beneﬁts are capped, only contributions that 
lead to future beneﬁts are included. The additional cost to the Company taking into account full social security employer 
contributions is CHF 141 989 in 2021. For details of additional fees, see page 41.
(d)  The CEO’s compensation is disclosed in its entirety under compensation of the Executive Board. 
(*)  Sections highlighted with a blue bar are audited by the statutory auditor. They include all elements the Company needs to 
disclose pursuant to art. 14 to 16 of the Ordinance against excessive compensation in listed companies.
Audited (*)

39
Compensation Report 2021
Compensation Report 2021
Summary of compensation 2020 **
Cash 
in CHF (a)
Market 
value of
shares 
in CHF (b)
Total Cash 
& Shares
Social 
security
& addit. 
Fees (c)
Total 
Compensation
Paul Bulcke, Chairman
600 000 
2 900 000 
3 500 000 
28 440 
3 528 440 
Ulf Mark Schneider, Chief Executive Oﬃcer (d)
 — 
 — 
 — 
 — 
 — 
Henri de Castries, Vice Chairman,  
Lead Independent Director
380 000 
365 000 
745 000 
28 440 
773 440 
Renato Fassbind
330 000 
315 000 
645 000 
28 440 
673 440 
Ann M. Veneman
190 000 
175 000 
365 000 
25 000 
390 000 
Eva Cheng
240 000 
225 000 
465 000 
21 186 
486 186 
Patrick Aebischer 
190 000 
175 000 
365 000 
42 613 
407 613 
Ursula M. Burns
190 000 
175 000 
365 000 
19 674 
384 674 
Kasper B. Rorsted
155 000 
140 000 
295 000 
15 763 
310 763 
Pablo Isla
330 000 
315 000 
645 000 
28 440 
673 440 
Kimberly A. Ross
205 000 
190 000 
395 000 
 — 
395 000 
Dick Boer
190 000 
175 000 
365 000 
19 674 
384 674 
Dinesh Paliwal
190 000 
175 000 
365 000 
19 674 
384 674 
Hanne Jimenez de Mora
155 000 
140 000 
295 000 
15 847 
310 847 
Total for 2020
3 345 000 
5 465 000 
8 810 000 
293 191 
9 103 191 
**  The above table shows the annual compensation due covering the twelve-month period starting with the Annual General 
Meeting.
(a)  The cash amount includes the expense allowance of CHF 15 000. The Chairman receives no expense allowance.
(b)  As from 2020, the Board is paid in arrears (25% in October 2020 and 75% in April 2021). The Nestlé S.A. shares equivalent to 
50% of the annual remuneration will be delivered at the end of the Board year in April 2021. They will be valued at the closing 
price of the share on the SIX Swiss Exchange on the ex-dividend date 2021. 
(c)  Since Company contributions to social security are based on full earnings, whereas beneﬁts are capped, only contributions that 
lead to future beneﬁts are included. The additional cost to the Company taking into account full social security employer 
contributions is CHF 147 792  in 2020. For details of additional fees, see page 41.
(d)  The CEO’s compensation is disclosed in its entirety under compensation of the Executive Board. 
(*)  Sections highlighted with a blue bar are audited by the statutory auditor. They include all elements the Company needs to 
disclose pursuant to art. 14 to 16 of the Ordinance against excessive compensation in listed companies.
Audited (*)

40
Compensation Report 2021
Compensation Report 2021
Paul Bulcke in his capacity as active, non-executive Chairman, received Nestlé S.A. shares, 
which are blocked for three years. In addition to his responsibilities for the governance and 
strategy of the Group, this reﬂects speciﬁc responsibilities for the direction and control of the 
Group including the support of Nestlé Health Science through its Strategic Advisory Council, 
the direct leadership of Nestlé’s interests in L’Oréal and the chairmanship of the Nestlé 
Science & Technology Advisory Council. Paul Bulcke maintains close relationships with 
shareholders including through worldwide Chairman’s Roundtables. He also engages with 
other stakeholders including through his chairmanship of the 2030 Water Resources Group 
(WRG), the European Roundtable of Industrialists (ERT) and the WEF Community of 
Chairpersons. The remuneration includes all compensation received in relation to these 
activities.
2021
2020
Value in CHF
Number
Value in CHF
Cash compensation
 — 
600 000
Blocked shares (market value) (a)
3 500 000
27 236
2 900 000
Total Cash & Shares
3 500 000
3 500 000
Company contribution to compulsory Swiss social security (b)
28 680
28 440
Total compensation
3 528 680
3 528 440
(a)  The Chairman is paid in arrears. The Nestlé S.A. shares equivalent to 100% of the annual remuneration will be delivered at the 
end of the Board year in April 2022. They will be valued at the closing price of the share on the SIX Swiss Exchange on the 
ex-dividend date 2022. The actual number of shares delivered will be published in the Compensation Report 2022.
(b)  Since Company contributions to social security are based on full earnings, whereas beneﬁts are capped, only contributions 
that lead to future beneﬁts are included. The additional cost to the Company taking into account full social security employer 
contributions is CHF 127 932 in 2021 and CHF 129 375 in 2020.
Share ownership of the non-executive members of the Board 
of Directors and closely related parties on December 31, 2021
Number of 
shares held (a)
Paul Bulcke, Chairman
 1 449 177 
Henri de Castries, Vice Chairman, Lead Independent Director
 31 126 
Renato Fassbind
 33 439 
Ann M. Veneman
 22 804 
Eva Cheng
 7 513 
Patrick Aebischer 
 14 108 
Kasper B. Rorsted
 4 675 
Pablo Isla
 6 690 
Kimberly A. Ross
 6 344 
Dick Boer
 4 628 
Dinesh Paliwal
 12 280 
Hanne Jimenez de Mora
 3 835 
Lindiwe M. Sibanda
—
Total as at December 31, 2021
1 596 619 
Total as at December 31, 2020
1 540 344 
(a)  Including shares subject to a three-year blocking period.
There are no stock options held by any non-executive member of the Board of Directors and 
closely related parties.
Audited

41
Compensation Report 2021
Compensation Report 2021
Other audited information regarding the Board of Directors
Loans
There are no loans to members of the Board of Directors. Loans to a member of the Board of 
Directors may only be granted at market conditions and may, at the time of grant, not exceed 
the respective member’s most recent total annual compensation (art. 21septies of the Articles 
of Association).
Additional fees and remuneration of the Board of Directors
There are no additional fees or remuneration paid by Nestlé S.A. or any of its Group companies, 
directly or indirectly, to members of the Board of Directors, except for CHF 25 000 paid to 
Ann M. Veneman who serves as a member of the Creating Shared Value (CSV) Council, 
and CHF 25 000 paid to Patrick Aebischer who serves on the Nestlé Science & Technology 
Advisory Council.
Compensation and loans for former members of the Board of Directors
There was no compensation conferred during 2021 on former members of the Board  
of Directors who gave up their function during the year preceding the year under review 
or earlier. Similarly, there are no loans outstanding to former members of the Board  
of Directors.
Compensation or loans to related parties of members of the Board of Directors
In 2021, no compensation was paid to related parties of members of the Board of Directors 
and there were no loans outstanding to related parties.
Audited

42
Compensation Report 2021
Compensation Report 2021
Executive Board
Principles of compensation for members 
of the Executive Board
Governance
Pursuant to art. 21bis par. 1 of Nestlé’s Articles of Association (*), 
the General Meeting shall approve annually the proposal of 
the Board of Directors in relation to the maximum aggregate 
amount of the compensation of the Executive Board for the 
following ﬁnancial year (**).
In the event the General Meeting has not approved 
a proposal of the Board of Directors, the Board of Directors 
shall determine the respective maximum aggregate amount 
or maximum partial amounts of compensation, provided 
that:
a) the Board of Directors takes into account: (i) the 
proposed maximum aggregate amount of 
compensation; (ii) the decision of the General Meeting 
and, to the extent known to the Board of Directors, the 
main reasons for the negative vote; and (iii) Nestlé’s 
compensation principles; and
b) the Board of Directors submits the amount(s) so 
determined for approval by the same General Meeting, 
a subsequent Extraordinary General Meeting or the 
next Annual General Meeting (art. 21bis par. 2 of the 
Articles of Association).
If the maximum aggregate amount of compensation already 
approved by the General Meeting is not suﬃcient to also 
cover compensation of one or more members who become 
members of or are being promoted within the Executive 
Board during a compensation period for which the General 
Meeting has already approved the compensation of the 
Executive Board, Nestlé or companies controlled by it shall 
be authorized to pay such member(s) a supplementary 
amount during the compensation period(s) already approved. 
The total supplementary amount shall not exceed 40% of the 
aggregate amount of compensation of the Executive Board 
last approved by the General Meeting per compensation 
period (art. 21ter of the Articles of Association).
Principles
The principles of compensation for members of the 
Executive Board are the following:
Pay for performance
The Total Direct Compensation for the members of the 
Executive Board includes a ﬁxed portion (Annual Base 
Salary) and a variable portion (Short-Term Bonus and Long-
Term Incentives). The ﬁxed compensation takes into account 
individual performance. Variable compensation is 
determined based on collective and individual performance. 
These are intended to ensure a major part of executive 
rewards are contingent on achieving demanding 
performance goals.
Alignment with long-term company strategy and shareholder 
interests
Compensation for members of the Executive Board is 
aligned with company strategy and shareholders’ interests. 
The Short-Term Bonus payout is determined by the degree 
of achievement of a number of objectives aligned to annual 
business plans. Long-Term Incentives are provided in the 
form of share-based instruments, therefore ensuring 
alignment with shareholders’ interests. In 2021, the main 
Long-Term Incentive instrument was the Performance Share 
Unit Plan (PSUP). PSUs have a vesting period of three years, 
with a further holding period of two years for Executive 
Board members, leading to a total restriction period of ﬁve 
years. Their alignment with shareholder interests is 
reinforced through payouts being tied to underlying Earnings 
per Share (EPS) growth, relative Total Shareholder Return 
(TSR) performance and Return on Invested Capital (ROIC). 
Coherence in remuneration plans and levels throughout 
the Company
The Company aims to align remuneration plans across the 
Group and to ensure that compensation rewards are 
appropriate for the added responsibilities of positions held. 
This is reﬂected in the relative remuneration levels of the 
Executive Board. 
(*) Nestlé S.A.’s Articles of Association can be found on page 55 and on www.nestle.com/investors/corporate-governance/articles
(**) The Board of Directors may submit for approval by the General Meeting deviating or additional proposals relating to the same or diﬀerent periods.

43
Compensation Report 2021
Compensation Report 2021
Compensation to be internationally competitive by using 
selected benchmarks
The compensation packages for the members of the 
Executive Board need to be competitive in a dynamic 
international environment. Nestlé targets its overall 
remuneration policy to be between the median and the  
75th percentile of the selected external benchmarks (please 
refer to page 47). Whenever appropriate, the benchmark 
values are adjusted for the size of Nestlé. The market 
competitiveness of the compensation of the Executive  
Board is therefore periodically assessed using the services  
of Willis Towers Watson, a reputed international human 
capital and beneﬁts consultancy.
The total compensation package consists of the following 
elements: 
1. Base Salary
The Base Salary is the foundation of the total compensation. 
It reﬂects the experience, expertise and sustained 
performance of the Executive Board member as well as 
taking into account external market competitiveness. It also 
serves as the basis for determining the Short-Term Bonus 
target levels, and the allocation of Long-Term Incentives.  
The Base Salary is reviewed annually by the Compensation 
Committee. Criteria for adjustments are individual 
contribution and the level of competitiveness against the 
benchmarks.
2.  Short-Term Bonus
The Short-Term Bonus is intended to reward results achieved 
against annual collective and individual objectives related to 
Nestlé’s overall business strategy. The Short-Term Bonus is 
paid in cash and/or in Nestlé S.A. shares, which are subject 
to a three-year blocking period.
Governance
Pursuant to art. 21quater of Nestlé’s Articles of Association (*), 
variable compensation may comprise short-term 
compensation elements, and shall be subject to caps 
expressed as predetermined multipliers of the respective 
target levels.
Short-term compensation elements are governed by 
performance metrics that take into account the performance 
of Nestlé and/or parts thereof, targets in relation to the 
market, to other companies or to comparable benchmarks 
and/or individual targets, and achievement of which is 
generally measured based on a one-year period. The annual 
target level of the short-term compensation elements is 
determined as a percentage of the Base Salary; depending 
on achieved performance, the compensation may amount  
up to a pre-determined multiplier of target level.
The Board of Directors or, to the extent delegated to it, the 
Compensation Committee determines performance metrics 
and target levels, and their achievement.
(*) Nestlé S.A.’s Articles of Association can be found on page 55 and on www.nestle.com/investors/corporate-governance/articles

44
Compensation Report 2021
Compensation Report 2021
Objectives 2021
The Short-Term Bonus (Annual Bonus) is based on a bonus 
target expressed in % of the Annual Base Salary.
In 2021, the following target levels were applicable
– CEO: 150%;
– Executive Vice President: 100%;
– Deputy Executive Vice President: 80%.
For the CEO and the CFO, 85% of the target is linked to 
performance against the Nestlé Group objectives (see 
below) and 15% to Environmental, Social and Governance 
(ESG) objectives. For the other members of the Executive 
Board, at least 35% of the target is linked to business 
performance, to ensure accountability for Nestlé’s results: 
for Function Heads, 50% is tied to functional objectives,  
35% to Group performance and 15% to ESG objectives; for 
Zone or Business Heads, 60% is tied to business objectives 
they are directly responsible for, 25% to Group performance 
and 15% to ESG objectives.
In case an executive reaches all objectives in full, the 
bonus payout will correspond to the targeted level. If one  
or more objectives are not reached, the bonus is reduced. 
The bonus payout is capped at a maximum of 130% of the 
target. There is no guarantee for the payout of a minimum 
bonus. 
Members of the Executive Board can elect to receive  
part or all of their Short-Term Bonus in Nestlé S.A. shares. 
The CEO has to take a minimum of 50% in shares. 
The number of shares granted is determined using the 
average market closing price of the last ten trading days  
of January 2022.
Group objectives 
Every year, the Board of Directors deﬁnes a set of key 
quantitative operational objectives, which comprise the main 
elements in determining the annual Group performance for 
the following year. These are linked to measurable ﬁnancial 
objectives. In 2021, their weighting was 60% Organic Growth 
and 40% Proﬁtability (Underlying Trading Operating Proﬁt 
margin).
Additional quantitative and qualitative objectives, set by 
the Board of Directors in line with Nestlé’s strategy, are also 
used to determine the Nestlé Group performance. This set  
of additional objectives reﬂects Nestlé’s Creating Shared 
Value framework and includes the proportion of products 
with Nutrition, Health & Wellness beneﬁts, market shares, 
capital expenditure, structural cost optimization, progress 
on digitalization, strengthening Nestlé’s values and culture, 
and further progress on quality, safety, sustainability and 
compliance.
The above objectives are kept under review by the Board 
of Directors so as to ensure they are aligned with Nestlé’s 
business objectives and its strategic ambition.
Business and functional objectives 
Business and functional objectives are determined by the 
CEO for each member of the Executive Board. They are 
related to the individual area of responsibility and are of 
a ﬁnancial or non-ﬁnancial nature.
Environmental, Social and Governance (ESG) objectives 
ESG objectives are annually set by the Compensation 
Committee and reﬂect selected performance measures from 
the Company’s ESG/Sustainability agenda.

45
Compensation Report 2021
Compensation Report 2021
3.  Long-Term Incentives
Long-Term Incentives are intended to reward sustained 
business success and overall shareholder value creation 
as well as to retain key senior management members.
Governance
Pursuant to art. 21quater of Nestlé’s Articles of Association (*), 
variable compensation may comprise long-term compensation 
elements, and shall be subject to caps expressed as pre-
determined multipliers of the respective target levels.
Long-term compensation elements are governed by 
performance metrics that take into account strategic 
objectives of Nestlé, achievement of which is generally 
measured based on a multi-annual period. The annual target 
level of the long-term compensation elements is determined 
as a percentage of the Base Salary; depending on the 
achieved performance, the compensation may amount up  
to a pre-determined multiplier of the target level. Vesting 
periods, as determined by the Board of Directors or, to the 
extent delegated to it, the Compensation Committee, shall 
be at least three years. See further art. 21quater par. 6 to par. 8 
of the Articles of Association.
The Board of Directors or, to the extent delegated to it, the 
Compensation Committee determines performance metrics 
and target levels, and their achievement.
Target levels 2021
In 2021, members of Nestlé’s Executive Board were eligible 
to receive Long-Term Incentives in the form of Performance 
Share Units under the Performance Share Unit Plan (PSUP). 
The grant value for Long-Term Incentives in 2021 was the 
following:
– CEO: 150% of the Annual Base Salary
– Executive Vice President and Deputy Executive Vice 
President: 100% of the Annual Base Salary 
The PSUP provides units which entitle participants to 
receive Nestlé S.A. shares at the end of the three-year 
vesting period. These shares remain blocked for a further 
period of two years for Executive Board members.
The level at which PSUs vest is determined by the degree 
by which the three performance measures of the PSUP are 
met over the full three-year vesting period. These three 
criteria are: 
– the growth of underlying Earnings per Share (EPS) in 
constant currencies; 
– the relative Total Shareholder Return (TSR) of the 
Nestlé S.A. share in relation to the STOXX Global 1800 
Food & Beverage Gross Return Index; and
– the Return on Invested Capital (ROIC).
Growth of underlying Earnings per Share, Total Shareholder 
Return performance in relation to peers and Return on 
Invested Capital are commonly used measures to determine 
senior management long-term performance in the industry. 
Growth of underlying Earnings per Share will be weighted  
at 50%, Total Shareholder Return Performance at 30% and 
Return on Invested Capital at 20% to determine the vesting 
level of the initial PSU award.
All three performance measures will be subject to 
Compensation Committee review in case of extraordinary 
events.
The PSUP covers only the Executive Board and Senior 
Vice Presidents. A Restricted Stock Unit Plan (RSUP) applies 
to all other participants.
(*) Nestlé S.A.’s Articles of Association can be found on page 55 and on www.nestle.com/investors/corporate-governance/articles

46
Compensation Report 2021
Compensation Report 2021
The following charts show the diﬀerent potential levels of achievement for each of the three 
measures for the 2021 PSUP grant.
The total vesting level will be determined by applying, at the end of the vesting period, 
a weight of 50% for Underlying EPS, 30% for TSR and 20% for ROIC of the grant, and by 
adding up the three elements.
The vesting range of the PSU starts at 0% and is capped at 200% of the initial PSU award, 
thus providing alignment with strategy and shareholders’ interests, as well as ensuring 
competitiveness versus external market comparisons.
Average Underlying EPS Growth
(constant currencies)
Achievement
200%
100%
0%
1%
6% 
11%
EPS Growth
TSR Diﬀerence
(Nestlé vs. Index)
Achievement
200%
100%
0%
–20% 
0%
20%
TSR Diﬀerence
ROIC Improvement
Achievement
200%
100%
0%
ﬂat 
+50bps 
+100bps
ROIC Improvement
Overview of Executive Board compensation elements
CEO
(*) Payable between 50% and 100% in Nestlé S.A. shares with a three-year blocking period.
(**) Subject to a two-year holding period after the three-year vesting period.
Executive Vice Presidents
(*) Payable between 0% and 100% in Nestlé S.A. shares with a three-year blocking period.
(**) Subject to a two-year holding period after the three-year vesting period.
Maximum payout:
– Short-Term Bonus: capped at 130% of the target;
– PSUP: vesting ranges from 0% to 200% of the initial PSU award.
Base Salary
100%
Base Salary
100%
Short-Term 
Bonus (*)
150% (at target)
Short-Term 
Bonus (*)
100% (at target)
Long-Term
Incentives (PSUP) (**)
150% 
Long-Term
Incentives (PSUP) (**)
100%

47
Compensation Report 2021
Compensation Report 2021
4.  Other beneﬁts
Typical elements are a car allowance, a contribution towards 
health insurance premiums as well as long-term service 
awards related to 25 and 40 years of service to the Company, 
in line with the Company policy, as oﬀered to other employees. 
Those Executive Board members who have been transferred 
to Switzerland from other Nestlé locations can receive beneﬁts 
in line with the Nestlé Corporate Expatriation Policy.
5.  Pension beneﬁts
Executive Board members domiciled in Switzerland are 
aﬃliated to the Nestlé Pension Plan in Switzerland like all 
other employees. The Plan was changed from a deﬁned 
contribution plan with a retirement pension objective to 
a Swiss-type deﬁned contribution plan in 2013. Beneﬁciaries 
of the Plan born in 1958 or before maintain their membership 
in the former plan. In 2018, the Nestlé Pension Plan was 
adapted to reﬂect the lower interest rate environment and 
the increase in life expectancy.
Pensionable earnings include the Annual Base Salary,  
but not the variable compensation (Short-Term Bonus or 
Long-Term Incentives). Any part of the Annual Base Salary 
which exceeds the ceiling prescribed by Swiss Pension Law 
is covered directly by the Company.
Benchmarks of Executive Board compensation
Any benchmark needs to take into account Nestlé’s overall 
size, its sector and geographic location. The Compensation 
Committee has therefore decided that the most appropriate 
way to assess the competitiveness of the compensation for 
the Executive Board is by comparing it against the STOXX 
Europe 50 index (excluding ﬁnancial services) as the primary 
benchmark (*), while taking account of trends in executive 
remuneration in the European Fast Moving Consumer Goods 
and pharma companies. Reﬂecting the Company’s size 
(revenue and headcount), Nestlé’s competitive position has 
been evaluated with reference to the 75th percentile of the 
benchmark.
Share ownership policy 
Following an appropriate build-up period, each Executive 
Board member is required to hold shares at least equal to 
twice his/her annual base salary, absent speciﬁc circumstances. 
The CEO is required to hold shares at least equal to ﬁve times 
his annual base salary.
An additional two-year blocking period is imposed on 
Nestlé S.A. shares delivered to Executive Board members 
upon vesting of PSUs, bringing the total restriction period  
to ﬁve years. The blocking period remains applicable upon 
termination of employment.
Loans
The Company does not, as a rule, grant loans, except that it 
may provide advances, generally repayable over a three-year 
period to members of the Executive Board who have been 
transferred to Switzerland from other Nestlé locations in line 
with the Nestlé Corporate Expatriation Policy.
Loans to Executive Board members may only be granted 
at market conditions and may, at the time of grant, not 
exceed the respective member’s most recent total annual 
compensation (art. 21septies of the Articles of Association).
Contracts of employment and severance payments
Members of the Executive Board are subject to a notice 
period of 12 months. During this time, unless there was 
termination for cause, entitlement to the Annual Base Salary 
and prorated Short-Term Bonus continues. Long-Term 
Incentives are forfeited upon voluntary resignation or 
termination for cause; Long-Term Incentives immediately 
vest in all other cases of termination of employment. There 
are no severance payments or change of control provisions 
(“golden parachutes”). Non-compete provisions are in line 
with the Articles of Association and are activated by the 
Company only as necessary on a case-by-case basis.
The compensation of the members of the Executive Board 
is subject to forfeiture or claw back if the compensation paid 
or granted is rejected by the General Meeting of Nestlé S.A. 
in a ﬁnal vote.
(*) Companies include: Adidas, Ahold Delhaize, Airbus, Air Liquide, Amadeus IT Group, Anheuser-Busch Inbev, ASML, BASF, Bayer, BMW, CRH, Daimler, Danone, 
Deutsche Post, Deutsche Telekom, Enel, Engie, Eni, Essilorluxottica, Fresenius, Iberdrola, Industria de diseño textil, Kering, L’Oréal, Linde, LVMH, Nokia, Orange, 
Philips, Safran, Sanoﬁ, SAP, Schneider Electric, Siemens, Telefónica, Total, Unibail-Rodamco-Westﬁeld SE, Unilever, Vinci, Vivendi, Volkswagen.

48
Compensation Report 2021
Compensation Report 2021
Compensation 2021 for members of the Executive Board 
At the Annual General Meeting of April 23, 2020, the shareholders approved a maximum 
compensation for members of the Executive Board of CHF 55 million for 2021. The total 
compensation paid to members of the Executive Board in 2021, including contributions 
towards future pension beneﬁts and total social security contributions, was CHF 50 575 911.
Compensation for members of the Executive Board in CHF (including the CEO)
2021
2020
Annual Base Salary 
13 625 000 
13 050 000 
Short-Term Bonus (cash)
11 070 974 
10 725 107 
Short-Term Bonus (market value of Nestlé S.A. share) (a)
4 594 486 
5 122 578 
Performance Share Units (market value) (b)
14 250 298 
13 664 139 
Other beneﬁts
512 644 
479 763 
Total
44 053 402 
43 041 587 
% Fixed/Variable
32.1 – 67.9
31.4 – 68.6
Company contributions towards future pension beneﬁts 
(in line with Nestlé’s Pension Beneﬁt Policy described above)
3 468 559 
3 387 234 
Company contributions to compulsory Swiss social security (c)
368 060 
341 280 
Additional remuneration and fees paid to members of the Executive Board
595 010 
586 264 
Total including the elements above
48 485 031 
47 356 365 
The above compensation table includes the following:
2021
2020
Number of Nestlé S.A. shares granted
 38 483 
 50 429 
Number of Performance Share Units granted under the PSUP
 146 608 
 127 583 
(a)  Nestlé S.A. shares delivered as part of the Short-Term Bonus are valued at the average closing price of the last ten trading 
days of January 2022. 
(b)  The Performance Shares are valued at the average closing price of the ﬁrst ten trading days, after the publication of the annual 
results. 
(c)  Since the Company contributions to social security are based on full earnings, whereas beneﬁts are capped, only contributions 
that lead to future beneﬁts are included. The additional cost to the Company taking into account full social security employer 
contributions is CHF 2 090 880 in 2021 and CHF 2 055 007 in 2020.
Audited

49
Compensation Report 2021
Compensation Report 2021
Explanations
– On December 31, 2021, the Executive Board consisted of 13 members. 
– Patrice Bula left the Executive Board on February 28, 2021.
– Bernard Meunier was appointed member of the Executive Board eﬀective March 1, 2021.
– David Rennie was appointed member of the Executive Board eﬀective March 1, 2021.
– Other beneﬁts include a car allowance, contribution towards health insurance premiums, 
long-term service awards and expatriate beneﬁts.
– Performance Share Units granted in 2021 are disclosed at market value, which 
corresponds to CHF 97.20.
– The values in the table above diﬀer in some respect from the compensation disclosure 
in Note 18.1 of the Consolidated Financial Statements of the Nestlé Group 2021, which have 
been prepared in accordance with International Financial Reporting Standards (IFRS). The 
diﬀerences relate to the timing of valuation of Performance Share Units, whose values are 
spread over three years under IFRS but reported fully at the grant date in this report.
Payout levels
– The Short-Term Bonus payout for the Executive Board was 109% in 2021, based on the 
achievement of the relevant Group and individual quantitative and qualitative objectives 
(2020: 113.7%). 
– The Performance Share Units granted in 2019 vest in February 2022 with a payout of 114% 
of the initial PSU award (PSUs granted in 2018 vested in 2021 with a payout of 177%).
Events after the balance sheet date
– Chris Johnson left the Executive Board on January 1, 2022.
– Steve Presley was appointed member of the Executive Board eﬀective January 1, 2022.
– Remy Ejel was appointed member of the Executive Board eﬀective January 1, 2022.
– David Zhang was appointed member of the Executive Board eﬀective January 1, 2022.

50
Compensation Report 2021
Compensation Report 2021
Highest total compensation for a member of the Executive Board 
In 2021, the highest total compensation for a member of the Executive Board was conferred 
to Ulf Mark Schneider, the CEO. The amounts below are included in the Executive Board 
compensation disclosed above.
2021
2020
Number
Value in CHF
Number
Value in CHF
Annual Base Salary
2 400 000 
2 400 000 
Short-Term Bonus (cash)
1 965 563 
2 033 962 
Short-Term Bonus (market value of Nestlé S.A. share) (a)
16 464 
1 965 637 
20 024 
2 034 038 
Performance Share Units (market value) (b)
37 038 
3 600 094 
33 614 
3 600 059 
Other beneﬁts
3 900 
3 900 
Total
9 935 194 
10 071 959 
% Fixed/Variable
24.2 – 75.8
23.9 – 76.1
Company contribution towards future pension beneﬁts
635 810 
603 555 
Company contribution to compulsory Swiss social security (c)
28 680 
28 440 
Total including the elements above
10 599 684 
10 703 954 
(a)  Nestlé S.A. shares delivered as part of the Short-Term Bonus are valued at the average closing price of the last ten trading 
days of January 2022. 
(b)  The Performance Shares are valued at the average closing price of the ﬁrst ten trading days, after the publication of the annual 
results. 
(c)  Since the Company contributions to social security are based on full earnings, whereas beneﬁts are capped, only contributions 
that lead to future beneﬁts are included. The additional cost to the Company taking into account full social security employer 
contributions is CHF 512 732 in 2021 and CHF 518 006 in 2020.
Explanations
– Performance Share Units granted in 2021 are disclosed at market value, which corresponds to 
CHF 97.20.
– Please also refer to the explanations provided on page 49.
Payout levels
– The Short-Term Bonus payout for the CEO was 109.2% in 2021, based on the achievement 
of Group quantitative and qualitative objectives and the ESG objectives (2020: 113%).
– The Performance Share Units granted in 2019 vest in February 2022 with a payout of 114% 
of the initial PSU award (PSUs granted in 2018 vested in 2021 with a payout of 177%).
Audited

51
Compensation Report 2021
Compensation Report 2021
Shares held by members of the Executive Board
Share ownership of the members of the Executive Board 
and closely related parties on December 31, 2021
Number of 
shares held (a)
Ulf Mark Schneider, Chief Executive Oﬃcer
 465 313 
Laurent Freixe
 58 925 
Chris Johnson
 164 322 
Marco Settembri
 127 258 
François-Xavier Roger
 90 000 
Magdi Batato 
 51 949 
Stefan Palzer
 22 061 
Béatrice Guillaume-Grabisch
 37 519 
Leanne Geale
 4 015 
Bernard Meunier
 7 785 
Grégory Behar
 30 852 
Sanjay Bahadur
 65 491 
David Rennie
 5 401 
Total as at December 31, 2021
1 130 891 
Total as at December 31, 2020
1 182 863 
(a)  Including shares subject to a three-year blocking period, and further two-year holding period.
There are no stock options held by any member of the Executive Board and closely related 
parties.

52
Compensation Report 2021
Compensation Report 2021
Other audited information regarding the Executive Board 
Loans to members of the Executive Board 
On December 31, 2021, there were no loans outstanding to any member of the Executive 
Board. 
Additional fees and remuneration of the Executive Board
One member of the Executive Board, in his role of CEO of Nestlé Health Science, also 
participated in 2021 in the Nestlé Health Science Long-Term Incentive plan, a Phantom  
Share Unit plan based on the long-term development of that business. He was attributed 
3723 Units in 2021, with a share price of CHF 159.82 per Unit (vesting period of three years, 
value capped at two times the Unit price at grant).
For the sake of full transparency, two members of the Executive Board served on the 
board of directors of Froneri Ltd. (“Froneri”), in which Nestlé holds a minority equity interest 
of 44%. Nestlé does not exercise control over Froneri. In 2021, these members of the 
Executive Board did not receive any compensation from Froneri.
Compensation and loans for former members of the Executive Board
In 2021, one former member of the Executive Board received a fee of CHF 20 000.
On December 31, 2021, there were no loans outstanding to former members of the 
Executive Board.
Compensation or loans to related parties of members of the Executive Board 
In 2021, no compensation was paid to related parties of members of the Executive Board, 
and there were no loans outstanding to related parties.
Audited
Sections highlighted with a blue bar are audited by the statutory auditor. They include all 
elements the Company needs to disclose pursuant to art. 14 to 16 of the Ordinance against 
excessive compensation in listed companies.

53
Compensation Report 2021
To the General Meeting of 
Lausanne, 16 February 2022 
Nestlé S.A., Cham & Vevey
Report of the statutory auditor on the compensation report
We have audited the compensation report of Nestlé S.A. for the year ended 31 December 
2021. The audit was limited to the information according to articles 14–16 of the Ordinance 
against Excessive Compensation in Stock Exchange Listed Companies (Ordinance) 
contained in the tables labeled “audited” and highlighted with a blue bar on pages 38 to 52 of 
the compensation report.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and overall fair presentation of the 
compensation report in accordance with Swiss law and the Ordinance. The Board of 
Directors is also responsible for designing the remuneration system and defining individual 
remuneration packages.
Auditor’s responsibility
Our responsibility is to express an opinion on the compensation report. We conducted our 
audit in accordance with Swiss Auditing Standards. Those standards require that we comply 
with ethical requirements and plan and perform the audit to obtain reasonable assurance 
about whether the compensation report complies with Swiss law and articles 14–16 of the 
Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in 
the compensation report with regard to compensation, loans and credits in accordance with 
articles 14–16 of the Ordinance. The procedures selected depend on the auditor’s judgment, 
including the assessment of the risks of material misstatements in the compensation report, 
whether due to fraud or error. This audit also includes evaluating the reasonableness of the 
methods applied to value components of remuneration, as well as assessing the overall 
presentation of the compensation report. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 
a basis for our opinion.
Ernst & Young Ltd
Avenue de la Gare 39a
P.O. Box
CH-1002 Lausanne
Phone:
+41 58 286 51 11
Fax:
+41 58 286 51 01
www.ey.com/ch

54
Compensation Report 2021
Opinion
In our opinion, the compensation report for the year ended 31 December 2021 of Nestlé S.A. 
complies with Swiss law and articles 14–16 of the Ordinance.
Ernst & Young Ltd
Jeanne Boillet 
André Schaub
Licensed audit expert
Licensed audit expert
(Auditor in charge)

Corporate Governance Report 2021
55
Articles of Association  
of Nestlé S.A.
Amended by the 
Annual General Meeting 
of April 15, 2021

Corporate Governance Report 2021
56
Articles of Association of Nestlé S.A.
Translation*
I. General 
Article 1
Corporate name; Registered oﬃces; Duration
1 Nestlé S.A. (Nestlé AG) (Nestlé Ltd.) (hereinafter “Nestlé”) 
is a company limited by shares incorporated and organised 
in accordance with the Swiss Code of Obligations.
2 The registered oﬃces of Nestlé are in Cham and Vevey, 
Switzerland.
3 The duration of Nestlé is unlimited.
Article 2
Purpose
1 The purpose of Nestlé is to participate in industrial, service, 
commercial and ﬁnancial enterprises in Switzerland and 
abroad, in particular in the food, nutrition, health, wellness 
and related industries.
2 Nestlé may itself establish such undertakings or participate 
in, ﬁnance and promote the development of undertakings 
already in existence.
3 Nestlé may enter into any transaction which the business 
purpose may entail. Nestlé shall, in pursuing its business 
purpose, aim for long-term, sustainable value creation.
II. Share Capital
Article 3
Share capital
The share capital of Nestlé is CHF 281 500 000 (two hundred 
and eighty-one million ﬁve hundred thousand Swiss francs) 
divided into 2 815 000 000 fully paid up registered shares with 
a nominal value of CHF 0.10 each.
Article 3bis
Conditional share capital
1 The share capital of Nestlé may be increased in an amount 
not to exceed CHF 10 000 000 (ten million Swiss francs) 
by issuing up to 100 000 000 registered shares with 
a nominal value of CHF 0.10 each, which shall be fully  
paid up, through the exercise of conversion rights and/or 
option rights granted in connection with the issuance  
by Nestlé or one of its subsidiaries of newly or already 
issued convertible debentures, debentures with option 
rights or other ﬁnancial market instruments.
* This is an unoﬃcial translation. In case of doubt or diﬀerences 
of interpretation, the oﬃcial French and German versions of 
the Articles of Association shall prevail over the English text.
2 The shareholders have no preferential rights to subscribe 
for these new shares. The current owners of conversion 
rights and/or option rights shall be entitled to subscribe 
for the new shares.
3 The new shares shall be subject, as soon as they are 
issued following the exercise of conversion and/or option 
rights, to the restrictions set forth in art. 5.
4 The Board of Directors may limit or withdraw the right  
of the shareholders to subscribe in priority to convertible 
debentures, debentures with option rights or similar 
ﬁnancial market instruments when they are issued, if:
a) an issue by ﬁrm underwriting by a consortium with 
subsequent oﬀering to the public without preferential 
subscription rights seems to be the most appropriate 
form of issue at the time, particularly in terms of the 
conditions for issue; or
b) the ﬁnancial market instruments with conversion or 
option rights are issued in connection with the 
ﬁnancing or reﬁnancing of the acquisition of an 
enterprise or parts of an enterprise or participations or 
new investments.
5 Any ﬁnancial market instruments with conversion or 
option rights which the Board of Directors decides not  
to oﬀer directly or indirectly for prior subscription to the 
shareholders shall be subject to the following conditions:
a) Conversion rights may be exercised only for up to 
15 years, and option rights only during 7 years from the 
date of issue of the relevant ﬁnancial market 
instruments.
b) The new shares shall be issued according to the 
applicable conversion or option conditions. The 
respective ﬁnancial instruments must be issued at the 
relevant market conditions.
c) The issue of new shares upon exercise of option or 
conversion rights shall be made at conditions taking  
into account the market price of the shares and/or 
comparable instruments with a market price at the time 
of issuance of the relevant convertible debenture, 
debenture with option rights or similar ﬁnancial market 
instrument.
Article 4
Share certiﬁcates; Intermediated securities
1 Nestlé may issue its registered shares in the form of 
single certiﬁcates, global certiﬁcates or uncertiﬁcated 
securities. Under the conditions set forth by statutory law, 
Nestlé may convert its registered shares from one form 
into another form at any time and without the approval of

Corporate Governance Report 2021
57
Articles of Association of Nestlé S.A.
the shareholders. Nestlé shall bear the cost of any such 
conversion.
2 If registered shares are issued in the form of single 
certiﬁcates or global certiﬁcates, they shall be signed  
by two members of the Board of Directors. Both 
signatures may be aﬃxed in facsimile.
3 The shareholder has no right to demand a conversion  
of the form of the registered shares. Each shareholder 
may, however, at any time request a written conﬁrmation 
from Nestlé of the registered shares held by such 
shareholder, as reﬂected in the share register.
4 Intermediated securities based on registered shares  
of Nestlé cannot be transferred by way of assignment. 
A security interest in any such intermediated securities 
cannot be granted by way of assignment.
Article 5
Share register
1 Nestlé shall maintain a share register showing the name 
and address of the holders or usufructuaries. Any change 
of address must be reported to Nestlé.
2 Only persons entered in the share register as shareholders 
with voting rights may exercise the voting rights or the 
other rights related thereto.
3 After the acquisition of shares, upon request of the 
shareholder to be recognised as such, any acquiring party 
shall be considered as a shareholder without voting rights, 
until it is recognised by Nestlé as a shareholder with voting 
rights. If Nestlé does not refuse the request to recognise 
the acquiring party within twenty days, the latter shall be 
deemed to be a shareholder with voting rights.
4 An acquirer of shares shall be recorded in the share 
register as a shareholder with voting rights provided  
he expressly declares to have acquired the shares in 
his own name and for his own account.
5 No person or entity shall be registered with voting rights 
for more than 5% of the share capital as recorded in the 
commercial register. This limitation on registration also 
applies to persons who hold some or all of their shares 
through nominees pursuant to this article. All of the 
foregoing does not apply in the case of the acquisition  
of an enterprise, or parts of an enterprise or participations 
through exchange of shares or in the cases provided  
in art. 685d par. 3 of the Swiss Code of Obligations.
6 The Board of Directors shall promulgate regulations 
relating to the registration of ﬁduciaries or nominees  
to ensure compliance with these Articles of Association.
7 Legal entities that are linked to one another through 
capital, voting rights, management or in any other 
manner, as well as all natural persons or legal entities 
achieving an understanding or forming a syndicate or 
otherwise acting in concert to circumvent the regulations 
concerning the limitation on registration or the nominees, 
shall be counted as one person or nominee within the 
meaning of paragraphs 4 and 5 of this article.
8 After hearing the registered shareholder or nominee, the 
Board of Directors may cancel, with retroactive eﬀect  
as of the date of registration, the registration of such 
shareholder or nominee if the registration was eﬀected 
based on false information. The respective shareholder  
or nominee shall be informed immediately of the 
cancellation of the registration.
9 The Board of Directors shall specify the details and 
promulgate the necessary regulations concerning the 
application of this art. 5. Such regulations shall specify the 
cases in which the Board or a corporate body designated 
by the Board may allow exemptions from the limitation  
on registration or the regulation concerning nominees.
10 The limitation on registration provided for in this article 
shall also apply to shares acquired or subscribed by the 
exercise of subscription, option or conversion rights.
III. Organisation of Nestlé
A.  General Meeting
Article 6
Powers of the General Meeting
1 The General Meeting of shareholders is the supreme 
authority of Nestlé.
2 The following non-transferable powers shall be vested  
in the General Meeting:
a) to adopt and amend the Articles of Association;
b) to elect and remove the members of the Board of 
Directors, the Chairman of the Board of Directors and  
the members of the Compensation Committee; 
c) to elect and remove the Auditors;
d) to elect and remove the Independent Representative;
e) to approve the annual report and the consolidated 
ﬁnancial statements;
f) to approve the annual ﬁnancial statements as well as  
to resolve on the use of the balance sheet proﬁt, in 
particular, the declaration of dividends;
g) to approve the compensation of the Board of Directors 
and of the Executive Board pursuant to art. 21bis;

Corporate Governance Report 2021
58
Articles of Association of Nestlé S.A.
h) to grant discharge to the members of the Board of 
Directors and the persons entrusted with management; 
and
i) to take all decisions which by law or under these 
Articles of Association are within the powers of the 
General Meeting.
Article 7
Annual General Meeting
The Annual General Meeting shall be held each year within 
six months of the close of the ﬁnancial year of Nestlé. The 
meeting shall be convened by the Board of Directors.
Article 8
Extraordinary General Meeting
1 Extraordinary General Meetings shall be convened by the 
Board of Directors or, if necessary, by the Auditors, as well 
as in the other cases foreseen by law.
2 The Board of Directors shall, if so requested by a General 
Meeting or at the request in writing, specifying the items 
and proposals to appear on the agenda, of one or more 
shareholders with voting rights whose combined holdings 
represent at least one tenth of the share capital as recorded 
in the commercial register, convene an Extraordinary 
General Meeting. The Extraordinary General Meeting shall 
be held as promptly as practicable following such request.
Article 9
Notice of General Meetings; Agenda
1 Annual or Extraordinary General Meetings shall be 
convened by notice in the “Swiss Oﬃcial Gazette of 
Commerce” not less than twenty days before the date 
ﬁxed for the meeting. Shareholders may in addition be 
informed by ordinary mail.
2 The notice of a meeting shall state the items on the agenda 
and the proposals of the Board of Directors and of the 
shareholders who requested that a General Meeting 
be convened (art. 8 par. 2) or that items be included  
in the agenda (art. 9 par. 3).
3 One or more shareholders with voting rights whose 
combined holdings represent at least 0.15% of the share 
capital of Nestlé as recorded in the commercial register 
may request that an item be included in the agenda of 
a General Meeting. Such a request must be made in 
writing to the Board of Directors at the latest 45 days 
before the meeting and shall specify the agenda items 
and the proposals made.
4 No resolution shall be passed at a General Meeting on 
matters which do not appear on the agenda except for:
a) a resolution convening an Extraordinary General 
Meeting; or
b) the setting up of a special audit.
Article 10
Presiding oﬃcer; Minutes
1 The Chairman or any member of the Board of Directors 
shall preside at General Meetings and carry all procedural 
powers.
2 Minutes of General Meetings shall be kept by the 
Secretary of the Board of Directors.
Article 11
Voting rights; Representation of shareholders
1 Each share recorded in the share register as share with 
voting rights confers one vote on its holder.
2 At General Meetings no person may exercise, directly  
or indirectly, voting rights, with respect to own shares  
or shares represented by proxy, in excess of 5% of the 
share capital as recorded in the commercial register.  
Legal entities that are linked to one another through 
capital, voting rights, management or in any other 
manner, as well as all natural persons or legal entities 
achieving an understanding or forming a syndicate or 
otherwise acting in concert to circumvent such a limit, 
shall be counted as one shareholder.
3 The foregoing limit does not apply to shares received  
and held by a shareholder pursuant to an acquisition of  
an enterprise, or parts of an enterprise or participations  
as referred in art. 5 par. 5.
4 In order to permit the exercise of voting rights in respect 
of shares held by nominees, the Board of Directors may 
by means of regulations or agreements with nominees 
depart from the limit foreseen in this article. It may also 
depart from such a limit within the framework of the 
regulations referred to in art. 5 par. 6 and par. 9. In addition, 
this limit shall not apply to the exercise of voting rights  
by the Independent Representative.
5 Each shareholder recorded in the share register with 
voting rights may be represented at the General Meeting 
by the Independent Representative or a third party. The 
Board of Directors shall determine the requirements 
regarding participation and representation in the General 
Meeting.

Corporate Governance Report 2021
59
Articles of Association of Nestlé S.A.
6 The Independent Representative shall be elected by the 
General Meeting for a term of oﬃce until completion of 
the next Annual General Meeting. Re-election is possible. 
If the oﬃce of the Independent Representative is vacant, 
the Board of Directors shall appoint the Independent 
Representative for the next General Meeting.
Article 12
Quorum and decisions
1 General Meetings shall be duly constituted irrespective  
of the number of shareholders present or of shares 
represented.
2 Unless provided otherwise by law or the Articles of 
Association, shareholders’ resolutions and elections 
shall be decided by an absolute majority of the shares 
represented.
3 Votes shall be taken either on a show of hands or by 
electronic voting unless a vote by written ballot is ordered 
by the Presiding oﬃcer of the meeting. The Presiding 
oﬃcer may at any time order to repeat an election or 
resolution, if he doubts the results of the vote. In this 
case, the preceding election or resolution is deemed  
not having taken place.
4 If the ﬁrst ballot fails to result in an election and more  
than one candidate is standing for election, the Presiding 
oﬃcer shall order a second ballot in which a relative 
majority shall be decisive.
Article 13
Special quorum
The approval of at least two thirds of the shares represented 
and the absolute majority of the nominal value represented 
at a General Meeting shall be required for resolutions with 
respect to:
a) a modiﬁcation of the purpose of Nestlé;
b) the creation of shares with increased voting powers;
c) restrictions on the transfer of registered shares and the 
change or removal of such restrictions;
d) an authorized or conditional increase in share capital;
e) an increase in share capital through the conversion of 
capital surplus, through a contribution in kind or for the 
purpose of an acquisition of assets, or a grant of 
special beneﬁts upon a capital increase;
f) the restriction or withdrawal of the right to subscribe;
g) a change of the registered oﬃces of Nestlé;
h) the dissolution of Nestlé;
i) restrictions on the exercise of voting rights and the 
change or removal of such restrictions;
j) the limitation on registration (art. 5 par. 4 to 7) and the 
limitation on voting rights (art. 11 par. 2, 3 and 4) and  
the change or removal of such limitations;
k) the change of the corporate name of Nestlé; and
l) other matters as provided by statutory law.
B. Board of Directors
Article 14
Number of Directors
The Board of Directors shall consist of at least seven 
members.
Article 15
Term of oﬃce 
1 The Chairman of the Board of Directors and the members 
of the Board of Directors shall be elected individually by 
the General Meeting for a term of oﬃce until completion 
of the next Annual General Meeting.  
2 Members of the Board of Directors whose term of oﬃce 
has expired shall be immediately eligible for re-election.
3 If the oﬃce of the Chairman of the Board of Directors is 
vacant, the Board of Directors shall appoint a new 
Chairman from amongst its members for the remaining 
term of oﬃce.
Article 16
Organisation of the Board
1 The Board of Directors shall elect one or two Vice-
Chairmen. It shall appoint a Secretary and his substitutes, 
neither of whom need be members of the Board of 
Directors.
2 The Board of Directors shall, within the limits of the law 
and the Articles of Association, deﬁne its organisation and 
the assignment of responsibilities in the Board regulations 
pursuant to art. 19 par. 2.
Article 17
Powers of the Board in general
The Board of Directors shall conduct all the business of 
Nestlé to the extent that it is not within the powers of the 
General Meeting or not delegated pursuant to the Board 
regulations as set forth in art. 19 par. 2.

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60
Articles of Association of Nestlé S.A.
Article 18
Speciﬁc powers of the Board
The Board of Directors has the following non-transferable 
and inalienable duties:
a) the ultimate direction of the business of Nestlé, in 
particular the conduct, management and supervision 
of the business of Nestlé, and the provision of 
necessary directions;
b) the determination of the organisation in the Board 
regulations pursuant to art. 19 par. 2;
c) the determination of accounting and ﬁnancial control 
principles;
d) the appointment and removal of the persons entrusted 
with the management and the granting of signatory 
powers to persons representing Nestlé;
e) the ultimate supervision of the persons entrusted with  
the management of Nestlé, ensuring in particular their 
compliance with the law, the Articles of Association, 
regulations and instructions given;
f) the preparation of the business report and the 
compensation report in accordance with the provisions 
of the law;
g) the preparation of General Meetings and the carrying 
out of its resolutions;
h) the determination of the manner in which the dividend 
shall be paid;
i) the opening and closing of branch oﬃces; and
j) the notiﬁcation of the court in case of 
overindebtedness.
Article 19
Delegation of powers 
1 The Board of Directors may, within the limits of the law 
and the Articles of Association, appoint from amongst  
its members standing or ad hoc committees entrusted 
with the preparation and execution of its decisions or the 
supervision of speciﬁc parts of the business. The Board  
of Directors shall ensure that it is kept properly informed.
2 Unless otherwise provided by law, the Board of Directors 
may in accordance with the Board regulations delegate  
all or part of the management to one or more of its 
members, to one or more board committees, or to  
third parties.
C. Compensation Committee
Article 19bis
Number of members; Term of oﬃce; Organisation
1 The Compensation Committee consists of at least three 
independent members of the Board of Directors.
2 The members of the Compensation Committee shall be 
elected individually by the General Meeting for a term  
of oﬃce until completion of the next Annual General 
Meeting. Members of the Compensation Committee 
whose term of oﬃce has expired shall be immediately 
eligible for re-election.
3 If there are vacancies on the Compensation Committee, 
the Board of Directors shall appoint substitutes from 
amongst its members for the remaining term of oﬃce.
4 The Board of Directors shall elect a Chairman of the 
Compensation Committee. It shall, within the limits of the 
law and the Articles of Association, deﬁne the organisation 
of the Compensation Committee in regulations.
Article 19ter
Powers of the Compensation Committee
1 The Compensation Committee supports the Board  
of Directors in establishing and periodically reviewing 
Nestlé’s compensation strategy and guidelines and 
performance criteria as well as in preparing the proposals 
to the General Meeting regarding the compensation of the 
members of the Board of Directors and of the Executive 
Board. It may submit proposals and recommendations  
to the Board of Directors in other compensation-related 
issues.
2 The Board of Directors promulgates regulations to 
determine for which positions of the Board of Directors 
and of the Executive Board the Compensation Committee, 
together with the Chairman of the Board of Directors or on 
its own, shall submit proposals for the compensation, and 
for which positions it shall determine the compensation  
in accordance with the Articles of Association and the 
compensation guidelines established by the Board of 
Directors.
3 The Board of Directors may delegate further tasks and 
powers to the Compensation Committee.

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61
Articles of Association of Nestlé S.A.
D.  Auditors
Article 20
Number of Auditors; Term of oﬃce
The General Meeting shall appoint, for a term of oﬃce until 
completion of the next Annual General Meeting, one or more 
Auditors of the annual ﬁnancial statements of Nestlé and the 
consolidated ﬁnancial statements of the Group, which shall 
be independent from Nestlé and meet the special professional 
standards required by law. The Auditors of Nestlé may be 
re-elected.
Article 21
Rights and duties of Auditors
The Auditors shall verify the annual ﬁnancial statements  
of Nestlé and the consolidated ﬁnancial statements of the 
Group and perform such other tasks as deﬁned by law. The 
Auditors shall submit their reports to the General Meeting. 
Their rights and duties shall be as set out in the applicable 
Swiss law.
IIIbis. Compensation of the Board of Directors 
and of the Executive Board
Article 21bis
Approval of compensation by General Meeting
1 The General Meeting shall approve annually and 
separately the proposals of the Board of Directors in 
relation to the maximum aggregate amount of: 
a) compensation of the Board of Directors for the period 
until the next Annual General Meeting; 
b) compensation of the Executive Board for the following 
ﬁnancial year.
The Board of Directors may submit for approval by  
the General Meeting deviating or additional proposals 
relating to the same or diﬀerent periods.
2 In the event the General Meeting has not approved 
a proposal of the Board of Directors, the Board of 
Directors shall determine the respective maximum 
aggregate amount or maximum partial amounts 
of compensation, provided that:
a) the Board of Directors takes into account:
(i) the proposed maximum aggregate amount of 
compensation;
(ii) the decision of the General Meeting and, to the 
extent known to the Board of Directors, the main 
reasons for the negative vote; and
(iii) Nestlé’s compensation principles; and
b) the Board of Directors submits the amount(s) so 
determined to approval by the same General Meeting,  
a subsequent Extraordinary General Meeting or the 
next Annual General Meeting.
3 Notwithstanding the preceding paragraph, Nestlé or 
companies controlled by it may pay out compensation 
prior to approval by the General Meeting subject to 
subsequent approval by a General Meeting.
4 The Board of Directors shall submit the annual 
compensation report to an advisory vote of the General 
Meeting.

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62
Articles of Association of Nestlé S.A.
Article 21ter
Supplementary amount for changes 
on the Executive Board
If the maximum aggregate amount of compensation already 
approved by the General Meeting is not suﬃcient to also 
cover compensation of one or more members who become 
members of or are being promoted within the Executive 
Board during a compensation period for which the General 
Meeting has already approved the compensation of the 
Executive Board, Nestlé or companies controlled by it shall 
be authorized to pay to such member(s) a supplementary 
amount during the compensation period(s) already approved. 
The total supplementary amount shall not exceed 40% of the 
aggregate amount of compensation of the Executive Board 
last approved by the General Meeting per compensation 
period.
Article 21quater
General compensation principles
1 Compensation of the non-executive members of the 
Board of Directors comprises ﬁxed compensation 
elements only.
2 Compensation of the members of the Executive Board 
comprises ﬁxed and variable compensation elements. 
Fixed compensation comprises the base salary and may 
comprise other compensation elements and beneﬁts. 
Variable compensation may comprise short-term and 
long-term compensation elements, and shall be subject 
to caps expressed as predetermined multipliers of the 
respective target levels.
3 Short-term compensation elements are governed  
by performance metrics that take into account the 
performance of Nestlé and/or parts thereof, targets  
in relation to the market, to other companies or to 
comparable benchmarks and/or individual targets, and 
achievement of which is generally measured based on 
a one-year period. The annual target level of the short-term 
compensation elements is determined as a percentage  
of the base salary; depending on achieved performance, 
the compensation may amount up to a pre-determined 
multiplier of target level.
4 Long-term compensation elements are governed by 
performance metrics that take into account strategic 
objectives of Nestlé, and achievement of which is 
generally measured based on a multiannual period.  
The annual target level of the long-term compensation 
elements is determined as a percentage of the base 
salary; depending on achieved performance, the 
compensation may amount up to a pre-determined 
multiplier of target level. Vesting periods, as determined 
by the Board of Directors or, to the extent delegated  
to it, the Compensation Committee, shall be at least  
three years.
5 The Board of Directors or, to the extent delegated to it,  
the Compensation Committee determines performance 
metrics and target levels, and their achievement.
6 Compensation may be paid or granted in the form of 
cash, shares, other beneﬁts or in kind; compensation  
to members of the Executive Board may also be paid  
or granted in the form of ﬁnancial instruments or similar 
units. The Board of Directors or, to the extent delegated  
to it, the Compensation Committee determines grant, 
vesting, blocking, exercise and forfeiture conditions; they 
may provide for continuation, acceleration or removal  
of vesting and exercise conditions, for payment or grant  
of compensation assuming target achievement or for 
forfeiture in the event of predetermined events such  
as a termination of an employment or mandate agreement.
7 Compensation may be paid by Nestlé or companies 
controlled by it.
8 The Board of Directors values compensation according  
to the principles that apply to the compensation report.

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63
Articles of Association of Nestlé S.A.
IIIter. Contracts with members of the Board 
of Directors and of the Executive Board
Article 21quinquies
Basic principles
1 Nestlé or companies controlled by it may enter into 
agreements with members of the Board of Directors 
relating to their compensation for a ﬁxed term or for  
an indeﬁnite term; term and notice period may not exceed 
one year.
2 Nestlé or companies controlled by it may enter into 
contracts of employment with members of the Executive 
Board for a deﬁnite period of time not to exceed one year 
or for an indeﬁnite period of time with a notice period not 
to exceed 12 months.
3 Contracts of employment with members of the Executive 
Board may contain a prohibition of competition for the 
time after the end of employment for a duration of up  
to 2 years. The annual consideration for such prohibition 
shall not exceed 50% of the total annual compensation 
last paid to such member of the Executive Board.
IIIquater. Mandates outside Nestlé; Loans
Article 21sexies
Mandates outside Nestlé
1 No member of the Board of Directors may hold more  
than 4 additional mandates in listed companies and 
5 additional mandates in non-listed companies. 
2 No member of the Executive Board may hold more than 
2 additional mandates in listed companies and 4 additional 
mandates in non-listed companies. Each of these mandates 
shall be subject to approval by the Board of Directors.
3 The following mandates are not subject to these 
limitations:
a) mandates in companies which are controlled by Nestlé;
b) mandates which a member of the Board of Directors or 
of the Executive Board holds at the request of Nestlé or 
companies controlled by it. No Member of the Board of 
Directors or of the Executive Board shall hold more 
than 10 such mandates; and
c) mandates in associations, charitable organizations, 
foundations, trusts and employee welfare foundations. 
No Member of the Board of Directors or of the 
Executive Board shall hold more than 10 such 
mandates.
4 Mandates shall mean mandates in the supreme governing 
body of a legal entity which is required to be registered in 
the commercial register or a comparable foreign register. 
Mandates in diﬀerent legal entities which are under joint 
control are deemed one mandate.
5 The Board of Directors shall promulgate regulations that, 
taking into account the position of the respective member, 
determine additional restrictions.
Article 21septies
Loans
Loans to a member of the Board of Directors or the Executive 
Board may only be granted at market conditions and may, at 
the time of grant, not exceed the respective member’s most 
recent total annual compensation.

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64
Articles of Association of Nestlé S.A.
IV. Business report and appropriation 
of proﬁt resulting from the balance sheet
Article 22
Financial year
The ﬁnancial year shall commence on 1 January and shall 
end on 31 December.
Article 23
Business report
For every ﬁnancial year the Board of Directors shall prepare  
a business report consisting of the annual ﬁnancial statements 
of Nestlé, of the annual report and the consolidated ﬁnancial 
statements.
Article 24
Appropriation of proﬁt resulting 
from the balance sheet
The proﬁt shall be allocated by the General Meeting within 
the limits set by applicable law. The Board of Directors shall 
submit its proposals to the General Meeting.
V. Announcements, Communications
Article 25
Notices
All notices and communications to be made by Nestlé shall 
be considered duly made if published in the “Swiss Oﬃcial 
Gazette of Commerce”, unless the law provides otherwise.
Articles of Association amended by the Annual General 
Meeting of April 15, 2021

Financial Statements 2021
65
Financial Statements 2021

Financial Statements 2021
66

Consolidated Financial Statements of the Nestlé Group 2021
67
Consolidated
Financial Statements
of the Nestlé Group 2021

Consolidated Financial Statements of the Nestlé Group 2021
68
69
70
71
72
74
 75
77
77
79
87
96
98
99
101
105
112
121
123
136
139
142
143
145
150
151
152
Principal exchange rates
Consolidated income statement for
the year ended December 31, 2021
Consolidated statement 
of comprehensive income for the year 
ended December 31, 2021
Consolidated balance sheet as at
December 31, 2021
Consolidated cash ﬂow statement for 
the year ended December 31, 2021
Consolidated statement 
of changes in equity for the year ended 
December 31, 2021
Notes
1.  Accounting policies
2.  Scope of consolidation, acquisitions
and disposals of businesses, assets 
held for sale and acquisitions of 
non-controlling interests
3.  Analyses by segment
4.  Net other trading and operating income/
 
 (expenses)
5.  Net ﬁnancial income/(expense)
6.  Inventories
7.  Trade and other receivables/payables
8.  Property, plant and equipment
9.  Goodwill and intangible assets
10. Employee beneﬁts
11. Provisions and contingencies
12. Financial instruments
13. Taxes
14. Associates and joint ventures
15. Earnings per share
16. Cash ﬂow statement
17. Equity
18. Transactions with related parties
19. Guarantees
20. Eﬀects of hyperinﬂation
21. Events after the balance sheet date
Companies of the Nestlé Group, joint
arrangements and associates
Statutory Auditor’s Report on the Audit
of the Consolidated Financial Statements
Financial information – 5 year review
154
171
180

Consolidated Financial Statements of the Nestlé Group 2021
69
Principal exchange rates
Principal exchange rates
CHF per
2021
2021
2020 
2021
2021
2020 
Year ending rates
Weighted average annual rates
1 US Dollar
USD
0.915
0.915
0.881
0.915
0.915
0.937
1 Euro 
EUR
1.034
1.034
1.083
1.081
1.081
1.070
100 Chinese Yuan Renminbi
CNY
14.344
14.344
13.482
14.179
14.179
13.596
1 Pound Sterling
GBP
1.235
1.235
1.203
1.257
1.257
1.202
100 Mexican Pesos
MXN
4.470
4.470
4.430
4.505
4.505
4.395
100 Brazilian Reais
BRL
16.389
16.389
16.951
16.988
16.988
18.175
100 Philippine Pesos
PHP
1.793
1.793
1.834
1.855
1.855
1.893
1 Canadian Dollar
CAD
0.718
0.718
0.691
0.730
0.730
0.698
100 Indian Rupee
INR
1.232
1.232
1.206
1.236
1.236
1.267
100 Russian Rubles
RUB
1.222
1.222
1.178
1.243
1.243
1.292
100 Japanese Yen
JPY
0.794
0.794
0.854
0.831
0.831
0.877
1 Australian Dollar
AUD
0.664
0.664
0.679
0.686
0.686
0.646

Consolidated Financial Statements of the Nestlé Group 2021
70
Consolidated income statement
Consolidated income statement
for the year ended December 31, 2021
for the year ended December 31, 2021
In millions of CHF
Notes
2021
2021
2020
Sales
3
87 088 
84 343 
Other revenue
 382 
 338 
Cost of goods sold
(45 468)
(42 971)
Distribution expenses
(7 919)
(7 861)
Marketing and administration expenses
(17 294)
(17 370)
Research and development costs 
(1 670)
(1 576)
Other trading income
4
 171 
 238 
Other trading expenses
4
(3 131)
(908)
Trading operating proﬁt
3
12 159 
14 233 
Other operating income
4
 698 
1 919 
Other operating expenses
4
(1 178)
(1 356)
Operating proﬁt
11 679 
14 796 
Financial income
5
 80 
 109 
Financial expense
5
(953)
(983)
Proﬁt before taxes, associates and joint ventures
10 806 
13 922 
Taxes
13
(2 261)
(3 365)
Income from associates and joint ventures
14
8 651 
1 815 
Proﬁt for the year
17 196 
12 372 
of which attributable to non-controlling interests
 291 
 140 
of which attributable to shareholders of the parent (Net proﬁt)
16 905 
12 232 
As percentages of sales
Trading operating proﬁt
14.0% 
16.9% 
Proﬁt for the year attributable to shareholders of the parent (Net proﬁt)
19.4% 
14.5% 
Earnings per share (in CHF)
Basic earnings per share
15
6.06 
4.30 
Diluted earnings per share
15
6.06 
4.29

Consolidated Financial Statements of the Nestlé Group 2021
71
Consolidated statement of comprehensive income
Consolidated statement of comprehensive income
for the year ended December 31, 2021
for the year ended December 31, 2021
In millions of CHF
Notes
2021
2021
2020
Proﬁt for the year recognized in the income statement
 17 196 
 12 372 
Currency retranslations, net of taxes
17
2 130 
(2 931)
Changes in cash ﬂow hedge and cost of hedge reserves, net of taxes
368 
(54)
Share of other comprehensive income of associates and joint ventures
14/17
157 
(265)
Items that are or may be reclassiﬁed subsequently to the income statement
2 655 
(3 250)
Remeasurement of deﬁned beneﬁt plans, net of taxes
10/17
2 204 
(166)
Fair value changes on equity instruments, net of taxes
17
52 
124 
Share of other comprehensive income of associates and joint ventures
14/17
455 
(340)
Items that will never be reclassiﬁed to the income statement
2 711 
(382)
Other comprehensive income for the year
17
5 366 
(3 632)
Total comprehensive income for the year
22 562 
8 740 
of which attributable to non-controlling interests
285 
76 
of which attributable to shareholders of the parent
22 277 
8 664

Consolidated Financial Statements of the Nestlé Group 2021
72
Consolidated balance sheet
Consolidated balance sheet
as at December 31, 2021
as at December 31, 2021
before appropriations
In millions of CHF
Notes
2021
2021
2020
Assets
Current assets
Cash and cash equivalents
12/16
6 988 
5 235 
Short-term investments
12
7 007 
3 374 
Inventories
6
11 982 
10 101 
Trade and other receivables
7/12
11 155 
10 746 
Prepayments
 575 
 477 
Derivative assets
12
 278 
 310 
Current income tax assets
1 204 
 708 
Assets held for sale
2
 68 
3 117 
Total current assets
39 257 
34 068 
Non-current assets
Property, plant and equipment
8
28 345 
25 840 
Goodwill
9
31 012 
27 620 
Intangible assets
9
22 223 
20 148 
Investments in associates and joint ventures
14
11 806 
12 005 
Financial assets
12
2 824 
2 594 
Employee beneﬁts assets and reimbursement rights
10
2 417 
 468 
Deferred tax assets
13
1 258 
1 285 
Total non-current assets
99 885 
89 960 
Total assets
139 142 
124 028

Consolidated Financial Statements of the Nestlé Group 2021
73
Consolidated balance sheet as at December 31, 2021
In millions of CHF
Notes
2021
2021
2020
Liabilities and equity
Current liabilities
Financial debt
12
10 092 
12 019 
Trade and other payables
7/12
20 907 
18 515 
Accruals
5 051 
4 917 
Provisions
11
 532 
 508 
Derivative liabilities
12
 464 
 254 
Current income tax liabilities
2 962 
2 661 
Liabilities directly associated with assets held for sale 
2
 12 
 848 
Total current liabilities
40 020 
39 722 
Non-current liabilities
Financial debt
12
36 482 
27 928 
Employee beneﬁts liabilities
10
3 779 
5 118 
Provisions
11
1 106 
1 029 
Deferred tax liabilities
13
3 794 
2 636 
Other payables
12
 234 
1 081 
Total non-current liabilities
45 395 
37 792 
Total liabilities
85 415 
77 514 
Equity
17
Share capital 
 282 
 288 
Treasury shares 
(6 194)
(6 643)
Translation reserve
(22 266)
(24 397)
Other reserves
(45)
(365)
Retained earnings
81 363 
76 812 
Total equity attributable to shareholders of the parent
53 140 
45 695 
Non-controlling interests
 587 
 819 
Total equity
53 727 
46 514 
Total liabilities and equity
139 142 
124 028

Consolidated Financial Statements of the Nestlé Group 2021
74
Consolidated cash ﬂow statement
Consolidated cash ﬂow statement
for the year ended December 31, 2021
for the year ended December 31, 2021
In millions of CHF
Notes
2021
2021
2020
Operating activities
Operating proﬁt
16 
11 679 
14 796 
Depreciation and amortization
16 
3 440 
3 465 
Impairment
16 
2 614 
711 
Net result on disposal of businesses
4 
(235)
(1 678)
Other non-cash items of income and expense
16 
(253)
248 
Cash ﬂow before changes in operating assets and liabilities
17 245 
17 542 
Decrease/(increase) in working capital
16 
(173)
314 
Variation of other operating assets and liabilities
16 
(427)
(699)
Cash generated from operations
16 645 
17 157 
Interest paid
(753)
(815)
Interest and dividend received
43 
76 
Taxes paid
(2 722)
(2 645)
Dividends and interest from associates and joint ventures
14 
651 
604 
Operating cash ﬂow
13 864 
14 377 
Investing activities
Capital expenditure
8 
(4 880)
(4 076)
Expenditure on intangible assets
9 
(461)
(288)
Acquisition of businesses, net of cash acquired
2 
(6 394)
(4 520)
Disposal of businesses, net of cash disposed of
2 
3 530 
3 916 
Investments in associates and joint ventures
14 
(715)
(498)
Divestments in associates and joint ventures
14 
9 294 
316 
Inﬂows/(outﬂows) from treasury investments
(3 610)
(749)
Other investing activities
192 
232 
Investing cash ﬂow
(3 044)
(5 667)
Financing activities
Dividend paid to shareholders of the parent
17 
(7 681)
(7 700)
Dividends paid to non-controlling interests
(302)
(268)
Acquisition (net of disposal) of non-controlling interests
(601)
(1)
Purchase (net of sale) of treasury shares (a)
(6 548)
(6 814)
Inﬂows from bonds and other long term ﬁnancial debt 
12 
11 339 
10 330 
Outﬂows from bonds, lease liabilities and other long term ﬁnancial debt 
12 
(4 474)
(3 182)
Inﬂows/(outﬂows) from short term ﬁnancial debt
12 
(885)
(2 747)
Financing cash ﬂow
(9 152)
(10 382)
Currency retranslations
89 
(562)
Increase/(decrease) in cash and cash equivalents
1 757 
(2 234)
Cash and cash equivalents at beginning of year 
5 235 
7 469 
Cash and cash equivalents at end of year 
6 992 
5 235 
Cash and cash equivalents classiﬁed as held for sale
(4)
 — 
Cash and cash equivalents as per balance sheet
16 
6 988 
5 235 
(a)  Mostly relates to share buyback program launched in 2020.

Consolidated Financial Statements of the Nestlé Group 2021
75
Consolidated statement of changes in equity
Consolidated statement of changes in equity
for the year ended December 31, 2021
for the year ended December 31, 2021
In millions of CHF
Share  
capital
Treasury
shares
Translation  
reserve
Other
reserves
Retained 
earnings
Total equity
attributable to 
shareholders  
of the parent
Non-controlling 
interests
Total  
equity
Equity as at January 1, 2020
298 
(9 752)
(21 526)
(45)
83 060 
52 035 
827 
52 862 
Proﬁt for the year 
—
—
—
—
12 232 
12 232 
140 
12 372 
Other comprehensive income for the year
—
—
(2 871)
(321)
(376)
(3 568)
(64)
(3 632)
Total comprehensive income for the year
—
—
(2 871)
(321)
11 856 
8 664 
76 
8 740 
Dividends
—
—
—
—
(7 700)
(7 700)
(268)
(7 968)
Movement of treasury shares 
—
(6 911)
—
—
7 
(6 904)
—
(6 904)
Equity compensation plans
—
360 
—
—
(227)
133 
(3)
130 
Changes in non-controlling interests (a)
—
—
—
—
(394)
(394)
186 
(208)
Reduction in share capital (b)
(10)
9 660 
—
—
(9 650)
—
—
—
Total transactions with owners
(10)
3 109 
—
— 
(17 964)
(14 865)
(85)
(14 950)
Other movements (c)
—
—
 — 
1 
(140)
(139)
1 
 (138) 
Equity as at December 31, 2020
288 
(6 643)
(24 397)
(365)
76 812 
45 695 
819 
46 514 
Equity as at January 1, 2021
288
288
(6 643)
(6 643)
(24 397)
(24 397)
(365)
(365)
76 812
76 812
45 695
45 695
819
819
46 514
46 514
Proﬁt for the year
—
—
—
—
16 905
16 905
16 905
16 905
291
291
17 196
17 196
Other comprehensive income for the year
—
—
2 131
2 131
523
523
2 718
2 718
5 372
5 372
(6)
(6)
5 366
5 366
Total comprehensive income for the year
—
—
2 131
2 131
523
523
19 623
19 623
22 277
22 277
285
285
22 562
22 562
Dividends
—
—
—
—
(7 681)
(7 681)
(7 681)
(7 681)
(302)
(302)
(7 983)
(7 983)
Movement of treasury shares 
—
(6 551)
(6 551)
—
—
72
72
(6 479)
(6 479)
—
(6 479)
(6 479)
Equity compensation plans
—
222
222
—
—
(80)
(80)
142
142
(1)
(1)
141
141
Changes in non-controlling interests (a)
—
—
—
—
(382)
(382)
(382)
(382)
(214)
(214)
(596)
(596)
Reduction in share capital (b)
(6)
(6)
6 778
6 778
—
—
(6 772)
(6 772)
—
—
—
Total transactions with owners
(6)
(6)
449
449
—
—
(14 843)
(14 843)
(14 400)
(14 400)
(517)
(517)
(14 917)
(14 917)
Other movements (c)
—
—
—
(203)
(203)
(229)
(229)
(432)
(432)
—
(432)
(432)
Equity as at December 31, 2021
282
282
(6 194)
(6 194)
(22 266)
(22 266)
(45)
(45)
81 363
81 363
53 140
53 140
587
587
53 727
53 727
(a)  Movements reported under retained earnings include put options for the acquisition of non-controlling interests. 
(b)  Reduction in share capital, see Note 17.1.
(c)  Other movements in Other reserves relate mainly to cash ﬂow hedge transactions. In addition, Other movements in 
Retained earnings is explained further in Note 14 in the table of movement of carrying value of Associates and joint 
ventures.

Consolidated Financial Statements of the Nestlé Group 2021
76

Consolidated Financial Statements of the Nestlé Group 2021
77
Notes
Notes
1. Accounting policies
Accounting convention and accounting standards
The Consolidated Financial Statements comply with 
International Financial Reporting Standards (IFRS) issued  
by the International Accounting Standards Board (IASB)  
and with Swiss law.
They have been prepared on a historical cost basis, unless 
stated otherwise. All signiﬁcant consolidated companies, 
joint arrangements and associates have a December 31 
accounting year-end. 
The Consolidated Financial Statements 2021 were approved 
for issue by the Board of Directors on February 16, 2022,  
and are subject to approval by the Annual General Meeting 
on April 7, 2022. 
Accounting policies
Accounting policies are included in the relevant notes to  
the Consolidated Financial Statements and are presented  
as text highlighted with a grey background. The accounting 
policies below are applied throughout the ﬁnancial statements.
Key accounting judgements, estimates and assumptions
The preparation of the Consolidated Financial Statements 
requires Group Management to exercise judgement and to 
make estimates and assumptions that aﬀect the application 
of policies, reported amounts of revenues, expenses, assets 
and liabilities and disclosures. Estimated climate impacts, 
current and probable stated regulatory changes and Nestlé’s 
environmental commitments have been taken into account. 
These estimates and associated assumptions are based on 
historical experience and various other factors that are 
believed to be reasonable under the circumstances. The 
estimates and underlying assumptions are reviewed on an 
ongoing basis. Actual results may diﬀer from these estimates. 
Information about potential impacts under alternative 
scenarios (including among others the policies aligned with  
the Paris ambition) on the medium and long term are 
discussed in Nestlé’s TCFD (Task Force on Climate-related 
Financial Disclosures) report to be issued on March 8, 2022. 
Management believes that ﬁnancial statements as of 
December 31, 2021, reﬂect the most reasonable view of the 
value of the assets and liabilities at this date. 
Those areas that involved a higher degree of judgement 
or uncertainty are explained further in the relevant notes, 
including:
– assessment of control and estimating the fair value of  
net assets acquired in business combinations (see Note 2); 
– classiﬁcation and measurement of assets held for sale 
(see Note 2); 
– recognition and estimation of revenue (see Note 3);
– presentation of additional line items and subtotals in 
the income statement (see Note 4);
– identiﬁcation of a lease and lease term (see Note 8);
– identiﬁcation of cash generating units (CGUs) and 
estimation of recoverable amount for impairment tests 
(see Note 9); 
– assessment of useful lives of intangible assets, including 
assessment as ﬁnite or indeﬁnite (see Note 9); 
– measurement of employee beneﬁt obligations (see  
Note 10); 
– recognition and measurement of provisions (see Note 11); 
and 
– estimation of current and deferred taxes, including 
uncertain tax positions (see Note 13). 
The impacts of COVID-19 on those judgements and 
uncertainties have been taken into account considering that 
the long-term economic impacts of COVID-19 remain 
diﬃcult to predict or quantify due to its pervasive eﬀects. 
Foreign currencies
The functional currency of the Group’s entities is the currency 
of their primary economic environment.
In individual companies, transactions in foreign currencies 
are recorded at the rate of exchange at the date of the 
transaction. Monetary assets and liabilities in foreign 
currencies are translated at year-end rates. Any resulting 
exchange diﬀerences are taken to the income statement, 
except when deferred in Other comprehensive income as 
qualifying cash ﬂow hedges.
On consolidation, assets and liabilities of foreign operations
reported in their functional currencies are translated into 
Swiss Francs, the Group’s presentation currency, at year-end 
exchange rates. Income and expense are translated into Swiss 
Francs at the annual weighted average rates of exchange or 
at the rate on the date of the transaction for signiﬁcant items.
Diﬀerences arising from the retranslation of opening net 
assets of foreign operations, together with diﬀerences arising 
from the translation of the net results for the year of foreign 
operations, are recognized in Other comprehensive income.
When there is a change of control in a foreign operation, 
exchange diﬀerences that were recorded in equity are 
recognized in the income statement as part of the gain  
or loss on disposal.

Consolidated Financial Statements of the Nestlé Group 2021
78
1. Accounting policies
Hyperinﬂationary economies
Several factors are considered when evaluating whether  
an economy is hyperinﬂationary, including the cumulative 
three-year inﬂation, and the degree to which the population’s 
behaviors and government policies are consistent with such 
a condition.
The balance sheet and results of subsidiaries operating  
in hyperinﬂationary economies are restated for the changes 
in the general purchasing power of the local currency, using 
oﬃcial indices at the balance sheet date, before translation 
into Swiss Francs and, as a result, are stated in terms of the 
measuring unit current at the balance sheet date. The 
hyperinﬂationary economies in which the Group operates 
are listed in Note 20.
Other revenue
Other revenue are primarily sales-based royalties and license 
fees from third parties (including associates and joint ventures) 
which have been earned during the period.
Expenses
Cost of goods sold is determined on the basis of the cost  
of purchase or of production (comprised of the costs of raw 
and packaging material, direct labor, energy, manufacturing 
overheads and depreciation of factory assets, which are 
allocated to products using activity-based drivers), adjusted 
for the variation of inventories. It includes the cost of royalties 
due to third party licensors for the use of their intellectual 
property, which are accrued in accordance with the respective 
agreement. Cost of goods sold also includes amortization of 
intangible assets related to acquired licenses to sell products 
or to use technology, and as well as maintenance and 
depreciation of equipment used in the sales process like 
coﬀee machines and water coolers. 
All other expenses, including those in respect of advertising 
and promotions, are recognized when the Group receives 
the risks and rewards of ownership of the goods or when  
it receives the services. Government grants that are not 
related to assets are credited to the income statement as  
a deduction of the related expense when they are received, 
if there is reasonable assurance that the terms of the grant 
will be met.
Distribution expenses encompass the costs of storing 
products and transporting products between factories, 
warehouses and customer locations. It includes the costs  
of outsourced transportation services, salaries and wages  
of drivers, warehouse employees and customer service staﬀ, 
as well as depreciation and running costs of warehouses 
and related storage, transportation and handling equipment.
Marketing and administration expenses include the costs of 
advertising and consumer promotion activities, merchandising, 
sales teams and head oﬃce functions such as ﬁnance, human 
resources, legal, information technology, supply chain and 
general management. It is primarily comprised of salaries, 
depreciation and maintenance of real estate, and the costs 
of third-party services.
Additional details of research and development, other 
trading income and expenses and other operating income 
and expenses are provided in the respective notes.
Changes in accounting standards
A number of standards have been modiﬁed on miscellaneous 
points with eﬀect from January 1, 2021, which have no material 
impact on the Group’s Financial Statements. These include 
COVID-19-Related Rent Concessions beyond June 30, 2021 
(Amendments to IFRS 16), and Amendments to IFRS 9, IAS 39, 
IFRS 7, IFRS 4 and IFRS 16 – Interest rate benchmark reform – 
Phase 2.
Changes in IFRS that may aﬀect the Group  
after December 31, 2021 
There are no standards that are not yet eﬀective and that 
would be expected to have a material impact on the Group 
in the current or future reporting periods.

Consolidated Financial Statements of the Nestlé Group 2021
79
2. Scope of consolidation, acquisitions and disposals of businesses, 
assets held for sale and acquisitions of non-controlling interests
Scope of consolidation
The Consolidated Financial Statements comprise those of Nestlé S.A. and of its 
subsidiaries (the Group). 
Companies which the Group controls are fully consolidated from the date at which 
the Group obtains control. The Group controls a company when it is exposed to, or has 
rights to, variable returns from its involvement with the company and has the ability to 
aﬀect those returns through its power over the company. Though the Group generally 
holds a majority of voting rights in the companies which are controlled, this applies 
irrespective of the percentage of interest in the share capital if control is obtained 
through agreements with other shareholders.
As part of the Consolidated Financial Statements, the list of the principal subsidiaries  
is provided in the section Companies of the Nestlé Group, joint arrangements and 
associates after Note 21.
Business combinations 
Where not all of the equity of a subsidiary is acquired the non-controlling interests are 
recognized at the non-controlling interest’s share of the acquiree’s net identiﬁable assets. 
Upon obtaining control in a business combination achieved in stages, the Group 
remeasures its previously held equity interest at fair value and recognizes a gain or  
a loss in the income statement.
2.1 Modiﬁcation of the scope of consolidation
Acquisitions
In 2021, the signiﬁcant acquisition was:
– Core brands and related business of The Bountiful Company, mainly North America – 
vitamins, minerals and nutritional supplements (Nutrition and Health Science) – 99.4%, 
early August.
Among several other non-signiﬁcant acquisitions, the Group acquired in early March, 
Essentia Water, a premium functional water brand (Water) and in early July, Nuun,  
a functional hydration products brand (Nutrition and Health Science).
In 2020, the signiﬁcant acquisitions were:
– Aimmune, North America – food allergy treatment products (Nutrition and Health 
Science) – 100%, October.
– Zenpep, North America – nutritional health products (Nutrition and Health Science) – 
100%, May.
– Freshly, United States – healthy prepared meals (Prepared dishes and cooking aids) – 
92%, end of October.
Among several other non-signiﬁcant acquisitions, Vital Proteins, an American collagen 
brand and a lifestyle and wellness platform, has been acquired in 2020.

Consolidated Financial Statements of the Nestlé Group 2021
80
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests
Disposals
In 2021, there was one signiﬁcant disposal:
– Nestlé Waters North America, USA and Canada – regional spring water brands, puriﬁed 
water and beverage delivery service businesses (Water) – 100%, end of March.
In 2020, there was one signiﬁcant disposal:
– US Ice Cream business, North America – ice cream (Milk products and Ice cream) – 
100%, end of January.
Among several other non-signiﬁcant disposals, the Herta charcuterie business and the 
Yinlu business have been disposed of in 2020.
2.2 Acquisitions of businesses
The major classes of assets acquired and liabilities assumed at the acquisition date are:
In millions of CHF
2021
2021
2020
The Bountiful 
Company
Other
Total
Aimmune
Zenpep
Freshly
Other
Total
Inventories
559
559
15
15
574 
248 
40 
11 
68 
367 
Other assets 
288
288
41
41
329 
2 
— 
55 
108 
165 
Property, plant and equipment
313
313
40
40
353 
34 
— 
71 
86 
191 
Intangible assets (a)
2 820
2 820
486
486
3 306 
1 828 
1 143 
551 
668 
4 190 
Financial debt
(33)
(33)
(36)
(36)
(69)
(135)
— 
(86)
(109)
(330)
Other liabilities
(269)
(269)
(34)
(34)
(303)
(43)
(6)
(47)
(78)
(174)
Deferred taxes 
(710)
(710)
(41)
(41)
(751)
(187)
— 
(109)
(20)
(316)
Fair value of identiﬁable net assets/(liabilities) 
2 968
2 968
471
471
3 439 
1 747 
1 177 
446 
723 
4 093 
(a)  Mainly intellectual property rights, customer lists, trademarks and trade names, composed of CHF 581 million 
(2020: CHF 1631 million) of ﬁnite life, CHF nil of non-commercialized intangibles (2020: CHF 642 million) and 
of CHF 2725 million (2020: CHF 1917 million) of indeﬁnite life intangible assets.

Consolidated Financial Statements of the Nestlé Group 2021
81
The goodwill arising on acquisitions and the cash outﬂow are:
In millions of CHF
2021
2021
2020
The Bountiful 
Company
Other
Total
Aimmune
Zenpep
Freshly
Other
Total
Fair value of consideration transferred
5 410
5 410
1 038
1 038
6 448 
1 869 
1 302 
947 
991 
5 109 
Non-controlling interests 
16
16
—
16 
—
—
35 
146 
181 
Fair value of pre-existing interests (a)
—
—
 — 
565 
—
201 
—
766 
Subtotal
5 426
5 426
1 038
1 038
6 464 
2 434 
1 302 
1 183 
1 137 
6 056 
Fair value of identiﬁable net (assets)/liabilities 
(2 968)
(2 968)
(471)
(471)
(3 439)
(1 747)
(1 177)
(446)
(723)
(4 093)
Goodwill
2 458
2 458
567
567
3 025 
687 
125 
737 
414 
1 963 
(a)  In 2020, includes a revaluation gain of CHF 326 million on the 26% stake already held in Aimmune and a revaluation gain 
of CHF 183 million on the 16% stake already held in Freshly (see Note 14).
Since the valuation of the assets and liabilities of acquired businesses is still in process, 
the values are determined provisionally.
In millions of CHF
2021
2021
2020
The Bountiful 
Company
Other
Total
Aimmune
Zenpep
Freshly
Other
Total
Fair value of consideration transferred
5 410
5 410
1 038
1 038
6 448 
1 869 
1 302 
947 
991 
5 109 
Cash and cash equivalents acquired
(37)
(37)
(5)
(5)
(42)
(227)
— 
(48)
(10)
(285)
Consideration payable
(48)
(48)
(14)
(14)
(62)
— 
— 
(287)
(38)
(325)
Payment of consideration payable on prior years 
acquisitions
—
50
50
50 
— 
— 
— 
21 
 21 
Cash outﬂow on acquisitions
5 325
5 325
1 069
1 069
6 394 
1 642 
1 302 
612 
964 
4 520 
The consideration transferred consists of payments made in cash with some consideration 
remaining payable.
With regards to Freshly for the year ended December 31, 2020, the consideration 
payable included an amount of contingent consideration with an estimated fair value  
of CHF 287 million at the date of acquisition. The contingent consideration is in the form  
of an earn-out. Using a valuation methodology consistent with the prior year, updated 
with revised forecasts, it has been reassessed at end of December 31, 2021, and adjusted 
downwards by CHF 264 million (reﬂected in Other operating income and expenses,  
see Note 4.2).
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
82
The Bountiful Company
On August 9, 2021, the Group acquired the core brands and related business of The 
Bountiful Company. The Bountiful Company is a pure-play leader in the growing global 
nutrition and supplement category. The transaction includes the brands Nature’s Bounty, 
Solgar, Osteo Bi-Flex and Puritan’s Pride as well as the company’s US private label 
business. These brands will be integrated into Nestlé Health Science and will complement 
the existing health and nutrition portfolio in terms of brands. By combining The Bountiful 
Company’s core assets together with Nestlé’s science and innovation in health and nutrition, 
Nestlé is well placed to accelerate beneﬁts in prevention and treatment solutions to 
consumers across the world. The goodwill arising on this acquisition includes elements 
such as creating a leading position in the area of vitamins, minerals, herbals and supplements 
(VMHS) and geographic growth potential. It is not expected to be deductible for tax 
purposes. 
Sales and proﬁt for the year of The Bountiful Company business included in the 2021 
Consolidated Financial Statements amount respectively to CHF 787 million and  
CHF 29 million. The Group’s total sales and proﬁt for the year would have amounted  
to CHF 88 126 million and CHF 17 276 million respectively if the acquisition had been 
eﬀective January 1, 2021.
Aimmune
On October 13, 2020, Nestlé acquired Aimmune, a biopharmaceutical company developing 
and commercializing treatments for potentially life-threatening food allergies (Aimmune). 
Aimmune’s Palforzia is the ﬁrst FDA-approved treatment to help reduce the frequency and 
severity of allergic reaction to peanuts, including anaphylaxis, in children aged 4 through 17. 
The acquisition is an extension of Nestlé Health Science’s food allergy portfolio, creating  
a broader spectrum of solutions for children living with food allergies. The goodwill arising 
on this acquisition includes elements such as creating a leading position in the area of 
food allergy prevention treatment and its related growth potential in combination with 
current Nestlé Health Science Medical Nutrition business as well as synergies with the 
acquisition of Zenpep done earlier in the year 2020. It is not expected to be deductible for 
tax purposes.
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
83
Zenpep
On May 11, 2020, Nestlé acquired the Zenpep gastrointestinal medication business from 
Allergan. This expands Nestlé Health Science Medical Nutrition business and complements 
its portfolio of therapeutic products. Zenpep, available in the United States, is a medication 
for people who cannot digest food properly because their pancreas does not provide 
enough enzymes to break down fat, protein and carbohydrates. The goodwill arising on 
this acquisition includes elements such as market share and growth potential in the area 
of digestive diseases through current Nestlé Health Science Medical Nutrition business.  
It is expected to be deductible for tax purposes.
Freshly
On October 30, 2020, Nestlé acquired Freshly. Freshly delivers a menu of fresh, prepared 
meals to customers across United States. This transaction brings together Nestlé’s deep 
understanding of what and how people eat at home with Freshly’s highly specialized 
consumer analytics platform and distribution network to fuel growth opportunities within 
the Freshly business and across Nestlé’s portfolio. The goodwill arising on this acquisition 
includes elements such as market share and growth potential in direct-to-consumer food 
in the US as well as leveraging Nestlé expertise and presence in large-scale prepared meal 
manufacturing and research and development. It is not expected to be deductible for tax 
purposes.
Acquisition-related costs
Acquisition-related costs have been recognized under other operating expenses in the 
income statement (see Note 4.2) for an amount of CHF 55 million (2020: CHF 45 million).
Acquisitions planned after December 31, 2021
On February 2, 2022, the Group announced that it had agreed to purchase a majority 
stake in Orgain, a leader in plant-based nutrition, from founder Dr. Andrew Abraham and 
Butterﬂy Equity, who will continue to be minority share owners. The agreement includes 
the option for Nestlé Health Science to fully acquire Orgain in 2024. Orgain was founded 
in 2009 and has grown to become a leader in plant-based protein powder and organic 
nutritional protein ready-to-drink shake in the US.
The transaction is subject to customary regulatory approvals and is expected to close 
in 2022. 
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
84
2.3 Disposals of businesses
In 2021, the gain on disposal of businesses is mainly composed of the gain on disposal  
of the Nestlé Waters North America business (part of the Zone AMS operating segment).
In 2020, the gain on disposals of businesses is mainly composed of the gain on disposal  
of the US Ice Cream business (part of the Zone AMS operating segment) and the gain  
on disposal of the businesses of Herta charcuterie and Yinlu, included below in Other.
In millions of CHF
2021
2021
2020
Nestlé Waters 
North America
Other
Total
US Ice Cream
Other
Total
Cash, cash equivalents and short-term investments
57
57
2
 59 
 1 
 114 
 115 
Inventories
135
135
13
13
 148 
 189 
 162 
 351 
Trade and other receivables, prepayments  
and other assets
463
463
9
 472 
 37 
 193 
 230 
Property, plant and equipment 
1 985
1 985
23
23
 2 008 
 453 
 498 
 951 
Goodwill and intangible assets
811
811
3
 814 
 1 673 
 211 
 1 884 
Financial assets
257
257
—
 257 
 — 
 — 
 — 
Financial liabilities
(383)
(383)
(4)
(4)
 (387) 
 (22) 
 (229) 
 (251) 
Trade and other payables, accruals  
and other liabilities
(706)
(706)
(17)
(17)
 (723) 
 (11) 
 (557) 
 (568) 
Employee beneﬁts and provisions
(242)
(242)
(37)
(37)
 (279) 
 (1) 
 (100) 
 (101) 
Deferred tax liabilities
(103)
(103)
—
 (103) 
 (85) 
 (40) 
 (125) 
Non-controlling interests
—
(9)
(9)
 (9) 
 — 
 — 
 — 
Net assets disposed of or impaired after classiﬁcation  
as held for sale
2 274
2 274
(17)
(17)
 2 257 
 2 234 
 252 
 2 486 
Cumulative other comprehensive income items, net,  
reclassiﬁed to income statement
1 064
1 064
—
 1 064 
 612 
 86 
 698 
Proﬁt/(loss) on disposals, net of disposal costs  
and impairments of assets held for sale
196
196
39
39
 235 
 1 080 
 598 
 1 678 
Total disposal consideration, net of disposal costs
3 534
3 534
22
22
 3 556 
 3 926 
 936 
 4 862 
Cash and cash equivalents disposed of
(57)
(57)
—
 (57) 
 (1) 
 (93) 
 (94) 
Disposal costs not yet paid
—
—
 — 
 14 
 57 
 71 
Loan granted to Froneri (a)
—
—
 — 
 (582) 
 — 
 (582) 
Shares in associates (b)
—
(15)
(15)
 (15) 
 — 
 (273) 
 (273) 
Consideration receivable
(15)
(15)
—
 (15) 
 — 
 (63) 
 (63) 
Receipt of consideration receivable on prior years' disposals
—
61
61
 61 
 — 
 (5) 
 (5) 
Cash inﬂow on disposals, net of disposal costs
3 462
3 462
68
68
 3 530 
 3 357 
 559 
 3 916 
(a)  See Note 14 Associates and joint ventures.
(b)  In 2020 related to Herta.
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
85
2.4 Assets held for sale
Assets held for sale and disposal groups
Non-current assets held for sale and disposal groups are presented separately in the 
current section of the balance sheet when the following criteria are met: the Group is 
committed to selling the asset or disposal group, it is available for immediate sale in its 
current condition, an active plan of sale has commenced, and in the judgement of Group 
Management it is highly probable that the sale will be completed within 12 months. 
Immediately before the initial classiﬁcation of the assets and disposal groups as held for 
sale, the carrying amounts of the assets (or all the assets and liabilities in the disposal 
groups) are measured in accordance with the applicable accounting policy. Assets held 
for sale and disposal groups are subsequently measured at the lower of their carrying 
amount and fair value less costs of disposal. Assets held for sale are no longer amortized 
or depreciated. 
As of December 31, 2021, there are no signiﬁcant assets held for sale and liabilities directly 
associated with assets held for sale.
As of December 31, 2020, assets held for sale and liabilities directly associated with assets 
held for sale are mainly composed of the Nestlé Waters North America business which was 
disposed of in 2021 (see Note 2.3).
The composition of assets held for sale and liabilities directly associated with assets held 
for sale at the end of 2021 and of 2020 are the following:
In millions of CHF
2021
2021
2020
Total
Nestlé Waters 
North America
Other
Total
Cash, cash equivalents and short-term investments
 4 
 — 
 — 
— 
Inventories
 4 
114 
10 
124 
Trade and other receivables, prepayments and other assets
 5 
319 
12 
331 
Property, plant and equipment
55 
1 837 
66 
1 903 
Goodwill and intangible assets
 — 
756 
 3 
 759 
Assets held for sale 
68 
3 026 
91 
3 117 
Financial liabilities
 (10)
(348)
 — 
(348)
Trade and other payables and accruals
 (2)
(96)
(12)
(108)
Other liabilities
 — 
(56)
(11)
(67)
Employee beneﬁts and provisions
 — 
(222)
(5)
(227)
Deferred taxes
 — 
(98)
 — 
(98)
Liabilities directly associated with assets held for sale
 (12)
(820)
(28)
(848)
Net assets held for sale 
56 
2 206 
63 
2 269 
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
86
2.5 Acquisitions of non-controlling interests
Acquisitions and disposals of non-controlling interests
The Group treats transactions with non-controlling interests that do not result in loss  
of control as transactions with equity holders in their capacity as equity holders. For 
purchases of shares from non-controlling interests, the diﬀerence between any 
consideration paid and the relevant share acquired of the carrying amount of net assets 
of the subsidiary is recorded in equity. The same principle is applied to disposals of 
shares to non-controlling interests.
In 2021, the Group increased its ownership interests in certain subsidiaries, primarily in the 
United States leading to a decrease of non-controlling interests amounting to CHF 221 million. 
The consideration to non-controlling interests was in the form of cash of CHF 601 million and 
the recognition of a payable of CHF 446 million. Part of the consideration was recorded as 
a liability in previous years for CHF 502 million. The equity attributable to shareholders of 
the parent was negatively impacted by CHF 324 million.
2. Scope of consolidation, acquisitions and disposals of businesses, assets held for sale and acquisitions of non-controlling interests

Consolidated Financial Statements of the Nestlé Group 2021
87
3. Analyses by segment
Nestlé is organized into three geographic zones as well as globally managed businesses. 
The Company manufactures and distributes food and beverage products in the following 
categories: powdered and liquid beverages, water, milk products and ice cream, infant 
nutrition, prepared dishes and cooking aids, confectionery and petcare. Nestlé also 
manufactures and distributes nutritional science products through its globally managed 
business Nestlé Health Science. The Group has factories in 79 countries and sales in  
186 countries and employs around 276 000 people.
Segment reporting
Basis for segmentation
Operating segments reﬂect the Group’s management structure and the way ﬁnancial 
information is regularly reviewed by the Group’s chief operating decision maker (CODM), 
which is deﬁned as the Executive Board.
The CODM considers the business from both a geographic and product perspective, 
through three geographic Zones as well as Globally Managed Businesses (GMB). Zones 
and GMBs that meet the quantitative threshold of 10% of total sales, trading operating 
proﬁt or assets for all operating segments, are presented on a stand-alone basis as 
reportable segments. Even though it does not meet the reporting threshold, Nespresso 
is voluntarily reported separately considering its ﬁnancial contribution to the Group. 
Therefore, the Group’s reportable segments are:
– Zone Europe, Middle East and North Africa (EMENA);
– Zone Americas (AMS);
– Zone Asia, Oceania and sub-Saharan Africa (AOA);
– Nespresso, presented separately since 2021; and 
– Nestlé Health Science, presented separately since 2021.
Other business activities and operating segments are combined and presented in Other 
businesses. 
As most operating segments represent geographic Zones, information by product  
is also disclosed. The seven product groups that are disclosed represent the highest 
categories of products that are followed internally.
Revenue and results by segment
Segment results (Trading operating proﬁt) represent the contribution of the diﬀerent 
segments to central overheads, unallocated research and development costs and the 
trading operating proﬁt of the Group. Speciﬁc corporate expenses as well as speciﬁc 
research and development costs are allocated to the corresponding segments. In addition 
to the Trading operating proﬁt, Underlying Trading operating proﬁt is shown on a voluntary 
basis because it is one of the key metrics used by Group Management to monitor the 
performance of the Group. 
Depreciation and amortization include depreciation of property, plant and equipment 
(including right-of-use assets under leases) and amortization of intangible assets.

Consolidated Financial Statements of the Nestlé Group 2021
88
3. Analyses by segment
Invested capital and other information by segment
No segment assets and liabilities are regularly provided to the CODM to assess segment 
performance or to allocate resources and therefore segment assets and liabilities are not 
disclosed. However the Group discloses the invested capital, goodwill and intangible 
assets by segment and by product on a voluntary basis, and uses the assets directly 
allocated to the segments to determine if a segment is reportable. 
Invested capital comprises property, plant and equipment, trade receivables and 
some other receivables, assets held for sale, inventories, prepayments, less trade 
payables, accruals and some other payables, liabilities directly associated with assets 
held for sale, non-current other payables. 
Goodwill and intangible assets are not included in invested capital since the amounts 
recognized are not comparable between segments due to diﬀerences in the intensity  
of acquisition activity and changes in accounting standards which were applicable at 
various points in time when the Group undertook signiﬁcant acquisitions. Nevertheless, 
an allocation of goodwill and intangible assets by segment and product and the related 
impairment expenses are provided. 
Inter-segment eliminations represent inter-company balances between the diﬀerent 
segments.
Invested capital and goodwill and intangible assets by segment represent the situation 
at the end of the year, while the ﬁgures by product represent the annual average, as this 
provides a better indication of the level of invested capital.
Capital additions represent the total cost incurred to acquire property, plant and 
equipment (including right-of-use assets under leases), intangible assets and goodwill, 
including those arising from business combinations. 
Unallocated items
Unallocated items represent items whose allocation to a segment or product would be 
arbitrary. They mainly comprise:
– corporate expenses and related assets/liabilities;
– research and development costs and related assets/liabilities; and
– some goodwill and intangible assets.
Revenue
Sales represent amounts received and receivable from third parties for goods supplied 
to the customers and for services rendered. Sales are recognized when control of the 
goods has transferred to the customer, which is mainly upon arrival at the customer.
Revenue is measured as the amount of consideration which the Group expects to 
receive, based on the list price applicable to a given distribution channel after deduction 
of returns, sales taxes, pricing allowances, other trade discounts and couponing and 
price promotions to consumers. The level of discounts, allowances and promotional 
rebates is recognized as a deduction from revenue at the time that the related sales are 
recognized or when the rebate is oﬀered to the customer (or consumer if applicable). 
They are estimated using judgements based on historical experience and the speciﬁc 
terms of the agreements with the customers. Payments made to customers for 
commercial services received are expensed. The Group has a range of credit terms 
which are typically short term, in line with market practice and without any ﬁnancing 
component.

Consolidated Financial Statements of the Nestlé Group 2021
89
The Group does not generally accept sales returns, except in limited cases mainly  
in the Infant Nutrition business. Historical experience is used to estimate such returns  
at the time of sale. No asset is recognized for products to be recoverable from these 
returns, as they are not anticipated to be resold.
Trade assets (mainly coﬀee machines and water coolers) may be sold or leased 
separately to customers.
Arrangements where the Group transfers substantially all the risks and rewards 
incidental to ownership to the customer are treated as ﬁnance lease arrangements. 
Operating lease revenue for trade asset rentals is recognized on a straight-line basis 
over the lease term.
Sales are disaggregated by product group and geography in Notes 3.2 and 3.4.
3. Analyses by segment

Consolidated Financial Statements of the Nestlé Group 2021
90
3. Analyses by segment
3.1 Operating segments
Revenue and results
In millions of CHF
2021
2021
Sales (a)
Underlying Trading
operating proﬁt (b)
Trading 
operating proﬁt
Net other trading 
income/(expenses) (c)
of which 
impairment  
of property, plant and 
equipment
of which 
restructuring costs
Depreciation  
and amortization
Zone EMENA 
 21 128 
 3 903 
 3 772 
 (131)
 (33)
 (135)
 (901)
Zone AMS
 33 779 
 7 012 
 6 601 
 (411)
 (112)
 (69)
 (991)
Zone AOA
 20 735 
 4 524 
 2 477 
 (2 047)
 (138)
 (57)
 (704)
Nespresso
 6 418 
 1 475 
 1 456 
 (19)
 1 
 (12)
 (302)
Nestlé Health Science
 4 822 
 654 
 628 
 (26)
 — 
 (16)
 (241)
Other businesses (d)
 206 
 (32)
 (121)
 (89)
 (16)
 — 
 (36)
Unallocated items (e)
 — 
 (2 417)
 (2 654)
 (237)
 (46)
 (22)
 (265)
Total
 87 088 
 15 119 
 12 159 
 (2 960)
 (344)
 (311)
 (3 440)
In millions of CHF
2020 *
Sales (a)
Underlying Trading
operating proﬁt (b)
Trading 
operating proﬁt
Net other trading 
income/(expenses) (c)
of which 
impairment  
of property, plant and 
equipment
of which 
restructuring costs
Depreciation  
and amortization
Zone EMENA 
 20 226 
 3 766 
 3 575 
 (191)
 (43)
 (162)
 (852)
Zone AMS
 34 010 
 6 975 
 6 724 
 (251)
 (126)
 — 
 (1 106)
Zone AOA
 20 730 
 4 599 
 4 466 
 (133)
 (82)
 (53)
 (705)
Nespresso
 5 885 
 1 392 
 1 390 
 (2)
 (3)
 1 
 (324)
Nestlé Health Science
 3 326 
 549 
 534 
 (15)
 — 
 (4)
 (160)
Other businesses (d)
 166 
 (73)
 (101)
 (28)
 (25)
 (1)
 (46)
Unallocated items (e)
 — 
 (2 305)
 (2 355)
 (50)
 (23)
 (1)
 (272)
Total
 84 343 
 14 903 
 14 233 
 (670)
 (302)
 (220)
 (3 465)
* 
 2020 ﬁgures restated following Nestlé Health Science and Nespresso disclosed as reportable segments from 2021 onwards 
(previously combined and presented in Other businesses). 
(a)  Inter-segment sales are not signiﬁcant.
(b)  Trading operating proﬁt before Net other trading income/(expenses).
(c)  Included in Trading operating proﬁt.
(d)  Composed of businesses not under the direct control of the Zones or GMBs and Group procurement activities.
(e)  Refer to the Segment reporting accounting policies above for the deﬁnition of unallocated items.

Consolidated Financial Statements of the Nestlé Group 2021
91
3. Analyses by segment
Invested capital 
and other information
In millions of CHF
2021
2021
Invested capital
Goodwill and 
intangible assets
Impairment of
goodwill and  
non-commercialized  
intangible assets (c)
Impairment of
intangible assets (d)
Capital additions
Zone EMENA
 8 550 
 5 414 
 — 
 (21)
 1 537 
Zone AMS
 11 073 
 22 278 
 — 
 (35)
 3 006 
Zone AOA
 4 132 
 9 773 
 (353)
 (1 620)
 1 065 
Nespresso
 1 039 
 606 
 — 
 — 
 445 
Nestlé Health Science
 1 889 
 14 439 
 (168)
 — 
 6 594 
Other businesses (a)
 (1 047)
 103 
 — 
 (73)
 38 
Unallocated items (b) and inter-segment eliminations
 1 532 
 622 
 — 
 — 
 292 
Total
 27 168 
 53 235 
 (521)
 (1 749)
 12 977 
In millions of CHF
2020 *
Invested capital
Goodwill and 
intangible assets
Impairment of
goodwill and  
non-commercialized  
intangible assets (c)
Impairment of
intangible assets (d)
Capital additions
Zone EMENA
 7 616 
 5 538 
 — 
 — 
 1 432 
Zone AMS
 11 175 
 21 594 
 (31)
 — 
 3 562 
Zone AOA
 4 117 
 11 270 
 — 
 — 
 941 
Nespresso
 901 
 598 
 — 
 (1)
 275 
Nestlé Health Science
 1 365 
 8 706 
 (5)
 — 
 4 833 
Other businesses (a)
 (576)
 172 
 (372)
 — 
 46 
Unallocated items (b) and inter-segment eliminations
 1 442 
 649 
 — 
 — 
 278 
Total
 26 040 
 48 527 
 (408)
 (1)
 11 367 
* 
 2020 ﬁgures restated following Nestlé Health Science and Nespresso disclosed as reportable segments from 2021 onwards 
(previously combined and presented in Other businesses). 
(a)  Composed of businesses not under the direct control of the Zones or GMBs and Group procurement activities.
(b)   Refer to the Segment reporting accounting policies above for the deﬁnition of unallocated items.
(c)  Included in Operating proﬁt.
(d)  Included in Trading operating proﬁt.

Consolidated Financial Statements of the Nestlé Group 2021
92
3. Analyses by segment
3.2 Products
Revenue and results
In millions of CHF
2021
2021
Sales
Underlying Trading
operating proﬁt (a)
Trading 
operating proﬁt
Net other trading 
income/(expenses) (b)
of which 
impairment of 
property, plant and 
equipment
of which 
restructuring costs
Powdered and Liquid Beverages
 23 975 
 5 631 
 5 406 
 (225)
 (46)
 (60)
Water
 4 040 
 364 
 257 
 (107)
 (8)
 (57)
Milk products and Ice cream
 10 700 
 2 707 
 2 642 
 (65)
 — 
 (20)
Nutrition and Health Science
 13 157 
 2 307 
 243 
 (2 064)
 (134)
 (54)
Prepared dishes and cooking aids
 12 146 
 2 040 
 1 931 
 (109)
 (78)
 (43)
Confectionery
 7 514 
 1 205 
 1 093 
 (112)
 (22)
 (45)
PetCare
 15 556 
 3 282 
 3 241 
 (41)
 (10)
 (10)
Unallocated items (c)
 — 
 (2 417)
 (2 654)
 (237)
 (46)
 (22)
Total 
 87 088 
 15 119 
 12 159 
 (2 960)
 (344)
 (311)
In millions of CHF
2020 *
Sales
Underlying Trading
operating proﬁt (a)
Trading 
operating proﬁt
Net other trading 
income/(expenses) (b)
of which 
impairment of 
property, plant and 
equipment
of which 
restructuring costs
Powdered and Liquid Beverages
 22 256 
 5 035 
 4 851 
 (184)
 (93)
 (38)
Water
 6 421 
 639 
 522 
 (117)
 (19)
 (77)
Milk products and Ice cream
 11 007 
 2 652 
 2 615 
 (37)
 (20)
 (5)
Nutrition and Health Science
 12 160 
 2 640 
 2 490 
 (150)
 (55)
 (37)
Prepared dishes and cooking aids
 11 523 
 2 171 
 2 147 
 (24)
 (24)
 (40)
Confectionery
 6 975 
 990 
 874 
 (116)
 (67)
 (28)
PetCare
 14 001 
 3 081 
 3 089 
 8 
 (1)
 6 
Unallocated items (c)
 — 
 (2 305)
 (2 355)
 (50)
 (23)
 (1)
Total 
 84 343 
 14 903 
 14 233 
 (670)
 (302)
 (220)
* 
 2020 ﬁgures restated following Nestlé Health Science and Nespresso disclosed as reportable segments from 2021 onwards 
(previously combined and presented in Other businesses). 
(a)   Trading operating proﬁt before Net other trading income/(expenses).
(b)   Included in Trading operating proﬁt.
(c)   Refer to the Segment reporting accounting policies above for the deﬁnition of unallocated items.

Consolidated Financial Statements of the Nestlé Group 2021
93
Invested capital 
and other information
In millions of CHF
2021
2021
Invested capital
Goodwill and 
intangible assets
Impairment of
goodwill and  
non-commercialized  
intangible assets (b)
Impairment of  
intangible assets (c)
Powdered and Liquid Beverages
 5 549 
 7 174 
 — 
 (116)
Water
 1 745 
 1 156 
 — 
 — 
Milk products and Ice cream
 2 526 
 904 
 — 
 (8)
Nutrition and Health Science
 5 122 
 24 035 
 (521)
 (1 616)
Prepared dishes and cooking aids
 2 665 
 6 325 
 — 
 (3)
Confectionery
 2 540 
 753 
 — 
 (6)
PetCare
 5 714 
 9 690 
 — 
 — 
Unallocated items (a) and intra-group eliminations
 1 623 
 1 929 
 — 
 — 
Total 
 27 484 
 51 966 
 (521)
 (1 749)
In millions of CHF
2020 *
Invested capital
Goodwill and 
intangible assets
Impairment of
goodwill and  
non-commercialized  
intangible assets (b)
Impairment of  
intangible assets (c)
Powdered and Liquid Beverages
 5 245 
 7 519 
 (372)
 (1)
Water
 3 209 
 1 313 
 — 
 — 
Milk products and Ice cream
 2 356 
 1 336 
 — 
 — 
Nutrition and Health Science
 4 712 
 19 242 
 (5)
 — 
Prepared dishes and cooking aids
 2 988 
 5 275 
 (31)
 — 
Confectionery
 2 596 
 717 
 — 
 — 
PetCare
 4 698 
 9 786 
 — 
 — 
Unallocated items (a) and intra-group eliminations
 1 781 
 1 975 
 — 
 — 
Total 
 27 585 
 47 163 
 (408)
 (1)
* 
 2020 ﬁgures restated following Nestlé Health Science and Nespresso disclosed as reportable segments from 2021 onwards 
(previously combined and presented in Other businesses). 
(a)   Refer to the Segment reporting accounting policies above for the deﬁnition of unallocated items.
(b)  Included in Operating proﬁt.
(c)  Included in Trading operating proﬁt.
3. Analyses by segment

Consolidated Financial Statements of the Nestlé Group 2021
94
3.3a Reconciliation from Underlying Trading operating proﬁt to Proﬁt before taxes, 
associates and joint ventures
In millions of CHF
2021
2021
2020
Underlying Trading operating proﬁt (a) as per Note 3.1
 15 119 
 14 903 
Net other trading income/(expenses) as per Note 4.1
 (2 960)
 (670)
Trading operating proﬁt as per Note 3.1
 12 159 
 14 233 
Impairment of goodwill and non-commercialized intangible assets
 (521)
 (408)
Net other operating income/(expenses) excluding impairment of goodwill  
and non-commercialized intangible assets
 41 
 971 
Operating proﬁt
 11 679 
 14 796 
Net ﬁnancial income/(expense)
 (873)
 (874)
Proﬁt before taxes, associates and joint ventures
 10 806 
 13 922 
(a)  Trading operating proﬁt before Net other trading income/(expenses).
3.3b Reconciliation from invested capital and goodwill and intangible assets  
to total assets
In millions of CHF
2021
2021
2020
Invested capital as per Note 3.1
27 168 
26 040 
Liabilities included in invested capital
24 931 
23 123 
Subtotal
52 099 
49 163 
Intangible assets and goodwill as per Note 3.1 (a)
53 235 
48 527 
Other assets
33 808 
26 338 
Total assets
139 142 
124 028 
(a)   In 2021, there is no intangible assets and goodwill classiﬁed as assets held for sale (2020: CHF 759 million), see Note 2.4.
3. Analyses by segment

Consolidated Financial Statements of the Nestlé Group 2021
95
3.4 Disaggregation of sales by geographic area (country and type of market)
The Group disaggregates revenue from the sale of goods by major product group as 
shown in Note 3.2. Disaggregation of sales by geographic area is based on customer 
location and is therefore not a view by management responsibility as disclosed by 
operating segments in Note 3.1.
In millions of CHF
2021
2021
2020
EMENA
 25 797 
 24 541 
France
 3 804 
 3 946 
United Kingdom
 3 405 
 2 883 
Germany
 2 442 
 2 445 
Russia
 1 719 
 1 555 
Italy
 1 625 
 1 508 
Spain
 1 492 
 1 409 
Switzerland
 1 137 
 1 134 
Rest of EMENA
 10 173 
 9 661 
AMS
 39 085 
 37 728 
United States
 26 260 
 26 014 
Mexico
 2 962 
 2 564 
Brazil
 2 925 
 2 790 
Canada
 2 376 
 2 122 
Rest of AMS
 4 562 
 4 238 
AOA
 22 206 
 22 074 
Greater China Region
 5 558 
 5 986 
Philippines
 2 656 
 2 769 
India
 1 737 
 1 605 
Japan
 1 627 
 1 607 
Australia
 1 484 
 1 394 
Rest of AOA
 9 144 
 8 713 
Total sales
 87 088 
 84 343 
of which developed markets
 51 209 
 49 379 
of which emerging markets
 35 879 
 34 964 
3. Analyses by segment

Consolidated Financial Statements of the Nestlé Group 2021
96
3.5 Geography
Sales and non-current assets in Switzerland and countries which individually represent 
at least 10% of the Group sales or 10% of the Group non-current assets are disclosed 
separately.
The analysis of sales is stated by customer location. 
Non-current assets relate to property, plant and equipment (including right-of-use 
assets under leases), intangible assets and goodwill. Property, plant and equipment and 
intangible assets are attributed to the country of their legal owner. Goodwill is attributed 
to the countries of the subsidiaries where the related acquired business is operated.
In millions of CHF
2021
2021
2020
Sales
Non-current 
assets
Sales
Non-current 
assets
United States
26 260 
33 287 
26 014 
27 376 
Switzerland
1 137 
20 023 
1 134 
18 360 
Rest of the world
59 691 
28 270 
57 195 
27 872 
Total
87 088 
81 580 
84 343 
73 608 
3.6 Customers
There is no single customer amounting to 10% or more of Group’s revenues.
4. Net other trading and operating income/(expenses)
Other trading income/(expenses)
These comprise restructuring costs, impairment of property, plant and equipment and 
intangible assets (other than goodwill and non-commercialized intangible assets), 
litigations and onerous contracts, result on disposal of property, plant and equipment, 
and speciﬁc other income and expenses that fall within the control of operating segments. 
Restructuring costs are restricted to dismissal indemnities and employee beneﬁts paid 
to terminated employees upon the reorganization of a business or function. 
Other operating income/(expenses)
These comprise impairment of goodwill and non-commercialized intangible assets, results 
on disposals of businesses (including impairment and subsequent remeasurement of 
businesses classiﬁed as held for sale, as well as other directly related disposal costs like 
restructuring costs directly linked to businesses disposed of and legal, advisory and other 
professional fees), acquisition-related costs, the eﬀect of the hyperinﬂation accounting, 
and income and expenses that fall beyond the control of operating segments or relate 
to events such as natural disasters including extreme weather events linked to climate 
change, as well as expropriation of assets.
3. Analyses by segment

Consolidated Financial Statements of the Nestlé Group 2021
97
4.1 Net other trading income/(expenses)
In millions of CHF
Notes
2021
2021
2020
Other trading income
171 
238 
Restructuring costs
(311)
(220)
Impairment of property, plant and equipment (a) and intangible assets (b)
8/9
(2 093)
(303)
Litigations and onerous contracts (c)
(561)
(239)
Miscellaneous trading expenses
(166)
(146)
Other trading expenses
(3 131)
(908)
Total net other trading income/(expenses)
(2 960)
(670)
(a)  Including impairment of assets held for sale.
(b)  Excluding impairment of non-commercialized intangible assets.
(c)  Including contract termination related to the restructuring of the Wyeth business.
4.2 Net other operating income/(expenses)
In millions of CHF
Notes
2021
2021
2020
Proﬁt on disposal of businesses
2
257 
1 804 
Miscellaneous operating income (a)
441 
115 
Other operating income
698 
1 919 
Loss on disposal of businesses
2
(22)
(126)
Impairment of goodwill and non-commercialized intangible assets
9
(521)
(408)
Miscellaneous operating expenses (b)
(635)
(822)
Other operating expenses
(1 178)
(1 356)
Total net other operating income/(expenses)
(480)
563 
(a)  Including the reassessment of a contingent consideration (see Note 2.2).
(b)  Miscellaneous operating expenses include mainly expenses of transitional services provided to disposed businesses,  
natural disasters and costs related to COVID-19. COVID-19 expenses amounted to around CHF 100 million 
(2020: CHF 160 million) and relate primarily to safety related costs (gloves, masks, cleaning and sanitizing, screening 
and vaccines among others).
In 2021, proﬁt on disposal of businesses mainly relates to the result of disposal of the 
Nestlé Waters North America business of CHF 196 million and in 2020 mainly relates to 
the result of disposal of the US Ice Cream business of CHF 1080 million (see Note 2.3).
4. Net other trading and operating income/(expenses)

Consolidated Financial Statements of the Nestlé Group 2021
98
5. Net ﬁnancial income/(expense)
Net ﬁnancial income/(expense) includes net ﬁnancing cost of net ﬁnancial debt and net 
interest income/(expense) on deﬁned beneﬁt plans.
Net ﬁnancing cost comprises the interest income earned on cash and cash equivalents 
and short-term investments, as well as the interest expense on ﬁnancial debt (including 
leases), collectively termed “net ﬁnancial debt” (see Note 16.5). These headings also 
include other income and expense such as exchange diﬀerences on net ﬁnancial debt 
and results on related foreign currency and interest rate hedging instruments. Certain 
borrowing costs are capitalized as explained under the section on Property, plant and 
equipment.
In millions of CHF
Notes
2021
2021
2020
Interest income
 42 
 77 
Interest expense
 (815) 
 (831) 
Net ﬁnancing cost of net ﬁnancial debt
 (773) 
 (754) 
Interest income on deﬁned beneﬁt plans
 38 
 29 
Interest expense on deﬁned beneﬁt plans
 (136) 
 (152) 
Net interest income/(expense) on deﬁned beneﬁt plans
 10 
 (98) 
 (123) 
Other ﬁnancial income/(expense)
 (2) 
 3 
Net ﬁnancial income/(expense)
 (873) 
 (874)

Consolidated Financial Statements of the Nestlé Group 2021
99
6. Inventories
Raw materials are valued at the lower of purchase cost calculated using the FIFO (ﬁrst-in, 
ﬁrst-out) method and net realizable value. Work in progress, sundry supplies and ﬁnished 
goods are valued at the lower of their weighted average cost (including an allocation of 
factory overheads and depreciation) and net realizable value. The cost of inventories 
includes the gains/losses on cash ﬂow hedges for the purchase of raw materials and 
ﬁnished goods.
In millions of CHF
2021
2021
2020
Raw materials, work in progress and sundry supplies
5 789 
4 521 
Finished goods
6 467 
5 822 
Allowance for write-down to net realizable value
(274)
(242)
11 982 
10 101 
Inventories amounting to CHF 302 million (2020: CHF 283 million) are pledged as security 
for ﬁnancial liabilities.
Inventories amounting to CHF 43 924 million (2020: CHF 41 443 million) were recognized 
as an expense during the year and included in Cost of goods sold.
7. Trade and other receivables/payables
7.1 Trade and other receivables
Recognition and measurement
Trade and other receivables are recognized initially at their transaction price and 
subsequently measured at amortized cost less loss allowances. Other receivables are 
comprised mainly of receivables for indirect taxes.
Expected credit losses
The Group applies the IFRS 9 simpliﬁed approach to measuring expected credit losses 
(ECLs) for trade receivables at an amount equal to lifetime ECLs. The ECLs on trade 
receivables are calculated based on actual credit loss experience over the preceding 
three to ﬁve years on the total balance of non-credit impaired trade receivables, adjusted 
considering forward-looking information where relevant (such as a signiﬁcant deterioration 
in the economic environment). The Group’s credit loss experience has shown that aging 
of receivable balances is primarily due to negotiations about variable consideration. 
The Group considers a trade receivable to be credit impaired when one or more 
detrimental events have occurred such as:
– signiﬁcant ﬁnancial diﬃculty of the customer; or
– it is becoming probable that the customer will enter bankruptcy or other ﬁnancial 
reorganization.
Impairment losses related to trade and other receivables are not presented separately  
in the consolidated income statement but are reported under the heading Marketing 
and administration expenses.

Consolidated Financial Statements of the Nestlé Group 2021
100
In millions of CHF
2021
2021
2020
Gross 
carrying 
amount
Expected 
credit loss 
allowance
Total
Gross 
carrying 
amount
Expected 
credit loss 
allowance
Total
Trade receivables (not credit impaired)
8 639 
(75)
8 564 
8 146 
(59)
8 087 
Other receivables (not credit impaired)
2 600 
(17)
2 583 
2 682 
(34)
2 648 
Credit impaired trade and other receivables 
192 
(184)
8 
224 
(213)
11 
Total
11 431 
(276)
11 155 
11 052 
(306)
10 746 
The ﬁve major customers represent 13% (2020: 13%) of trade and other receivables,  
none of them individually exceeding 7% (2020: 7%). 
Based on the historic trend and expected performance of the customers, the Group 
believes that the above expected credit loss allowance suﬃciently covers the risk of 
default.
7.2 Trade and other payables by type
Recognition and measurement
Trade and other payables are recognized initially at their transaction price and 
subsequently measured at amortized cost. 
Supplier ﬁnance arrangements
The Group participates in supplier ﬁnance arrangements under which suppliers may elect 
to receive early payment from ﬁnancial institutions by factoring their receivables from 
the Group. The arrangements avoid concentration of liquidity risk, since the due dates 
of the payments by the Group are based on the agreed trade terms with the suppliers, 
are compliant with the applicable regulations and remain consistent with the normal 
operating cycle of its business.
The Group continues to present invoices eligible to be settled through these programs 
as Trade payables considering that the original liability is neither legally released nor 
substantially modiﬁed on entering into such arrangements. Related payments are 
included within operating cash ﬂows because they remain operational in nature.
In millions of CHF
2021
2021
2020
Due within one year
Trade payables
15 625
13 802
Social security and sundry taxes and levies
1 872
1 946
Other payables
3 410
2 767
20 907
18 515 
7. Trade and other receivables/payables

Consolidated Financial Statements of the Nestlé Group 2021
101
8. Property, plant and equipment
Property, plant and equipment comprises owned and leased assets.
In millions of CHF
Notes
2021
2021
2020
Property, plant and equipment – owned
8.1
25 639 
23 230 
Right-of-use assets – leased
8.2b
2 706 
2 610 
28 345 
25 840 
8.1 Owned assets
Owned property, plant and equipment are shown on the balance sheet at their historical 
cost.
Depreciation is assessed on components that have homogeneous useful lives by 
using the straight-line method to depreciate the initial cost down to the residual value 
over the estimated useful lives. The residual values are 30% on head oﬃces and nil for 
all other asset types. The useful lives are as follows:
Buildings 
20 – 40 years
Machinery and equipment 
10 – 25 years
Tools, furniture, information technology
and sundry equipment 
3 – 15 years
Vehicles 
3 – 10 years
Land is not depreciated.
Useful lives, components and residual amounts are reviewed annually. Such a review 
takes into consideration the nature of the assets, their intended use including but not 
limited to the closure of facilities, and the evolution of technology, and competitive 
pressures. 
Depreciation of property, plant and equipment is allocated to the appropriate headings 
of expenses by function in the income statement.
Borrowing costs incurred during the course of construction are capitalized if the assets 
under construction are signiﬁcant and if their construction requires a substantial period 
to complete (typically more than one year). The capitalization rate is determined on the 
basis of the short-term borrowing rate for the period of construction.
Government grants are recognized as deferred income which is released to the income 
statement over the useful life of the related assets.

Consolidated Financial Statements of the Nestlé Group 2021
102
In millions of CHF
Land and 
buildings
Machinery
and 
equipment
Tools, 
furniture 
and other
equipment
Vehicles
Assets under
construction 
and advance 
payments
Total
Net carrying amount
At January 1, 2021
8 538
8 538
9 738
9 738
1 583
1 583
86
86
3 285
3 285
23 230
Additions (a)
394
394
776
776
432
432
15
15
3 445
3 445
5 062 
Acquisitions through business combinations
164
164
73
73
23
23
1
41
41
302 
Classiﬁcation from assets under construction
471
471
1 281
1 281
248
248
14
14
(2 014)
(2 014)
 — 
Depreciation
(411)
(411)
(1 360)
(1 360)
(597)
(597)
(26)
(26)
—
(2 394)
Impairments
(117)
(117)
(137)
(137)
(23)
(23)
(3)
(3)
—
(280)
Disposals
(23)
(23)
(30)
(30)
(21)
(21)
(1)
(1)
(1)
(1)
(76)
Classiﬁcation (to)/from held for sale  
and disposals of businesses
(35)
(35)
(21)
(21)
3
3
(1)
(1)
(51)
Currency retranslations and others
—
(89)
(89)
(17)
(17)
3
(51)
(51)
(154)
At December 31, 2021
8 981
8 981
10 231
10 231
1 631
1 631
92
92
4 704
4 704
25 639 
Gross value
14 954
14 954
27 412
27 412
6 637
6 637
314
314
4 704
4 704
54 021 
Accumulated depreciation and impairments
(5 973)
(5 973)
(17 181)
(17 181)
(5 006)
(5 006)
(222)
(222)
—
(28 382)
Net carrying amount
At January 1, 2020
10 467
11 046
1 917
134
1 988
25 552
Additions (a)
211 
728 
455 
11 
2 663 
4 068 
Acquisitions through business combinations
 52 
54 
10 
 1 
 — 
117 
Classiﬁcation from assets under construction
72 
856 
168 
14 
(1 110)
 — 
Depreciation
(420)
(1 366)
(637)
(33)
 — 
(2 456)
Impairments 
(87)
(160)
(22)
(11)
 — 
(280)
Disposals
(22)
(38)
(23)
(3)
 — 
(86)
Classiﬁcation (to)/from held for sale  
and disposals of businesses
(892)
(737)
(240)
(13)
 — 
(1 882)
Currency retranslations and others
(843)
(645)
(45)
(14)
(256)
(1 803)
At December 31, 2020
8 538 
9 738 
1 583 
86 
3 285 
23 230 
Gross value
14 282 
25 927 
6 379 
311 
3 285 
50 184 
Accumulated depreciation and impairments
(5 744)
(16 189)
(4 796)
(225)
 — 
(26 954)
(a)  Including borrowing costs.
At December 31, 2021, net property, plant and equipment of CHF 156 million are pledged 
as security for ﬁnancial liabilities (2020: CHF 150 million). 
At December 31, 2021, the Group was committed to expenditure amounting to  
CHF 2270 million (2020: CHF 2182 million).
8. Property, plant and equipment

Consolidated Financial Statements of the Nestlé Group 2021
103
Impairment of property, plant and equipment 
Reviews of the carrying amount of the Group’s property, plant and equipment are 
performed when there is an indication of impairment. An indicator could be technological 
obsolescence (including changes due to a transition to a low carbon economy), unfavorable 
development of a business under competitive pressures or severe economic slowdown 
in a given market as well as reorganization of the operations to leverage their scale. 
In assessing value in use, the estimated future cash ﬂows are discounted to their 
present value, based on the time value of money and the risks speciﬁc to the country 
where the assets are located. The risks speciﬁc to the asset are included in the 
determination of the cash ﬂows.
Impairment of property, plant and equipment arises mainly from the plans to optimize 
industrial manufacturing capacities by closing or selling ineﬃcient production facilities 
as well as underperforming businesses.
8.2 Leases – Group as a lessee
The Group assesses whether a contract is or contains a lease at inception of the contract. 
This assessment involves the exercise of judgement about whether it depends on  
a speciﬁed asset, whether the Group obtains substantially all the economic beneﬁts from 
the use of that asset, and whether the Group has the right to direct the use of the asset. 
The Group recognizes a right-of-use (ROU) asset and a lease liability at the lease 
commencement date, except for short-term leases of 12 months or less which are 
expensed in the income statement on a straight-line basis over the lease term.
The lease liability is initially measured at the present value of the lease payments that 
are not paid at the commencement date, discounted using the interest rate implicit in the 
lease. If this rate cannot be readily determined, the Group uses an incremental borrowing 
rate speciﬁc to the country, term and currency of the contract. Lease payments can 
include ﬁxed payments; variable payments that depend on an index or rate known at the 
commencement date; and extension option payments or purchase options which the 
Group is reasonably certain to exercise. The lease liability is subsequently measured 
at amortized cost using the eﬀective interest rate method and remeasured (with  
a corresponding adjustment to the related ROU asset) when there is a change in future 
lease payments in case of renegotiation, changes of an index or rate or in case of 
reassessment of options.
At inception, the ROU asset comprises the initial lease liability, initial direct costs and 
the obligations to refurbish the asset, less any incentives granted by the lessors. The 
ROU asset is depreciated over the shorter of the lease term or the useful life of the 
underlying asset. The ROU asset is subject to testing for impairment if there is an indicator 
for impairment, as for owned assets. 
ROU assets are included in the heading Property, plant and equipment, and the lease 
liability is included in the headings current and non-current Financial debt. 
8. Property, plant and equipment

Consolidated Financial Statements of the Nestlé Group 2021
104
8.2a Description of lease activities
Real estate leases
The Group leases land and buildings for its oﬃce and warehouse space and retail stores. 
Lease terms are negotiated on an individual basis and contain a wide range of diﬀerent 
terms and conditions. Leases are typically made for a ﬁxed period of 5–15 years and may 
include extension options which provide operational ﬂexibility. If the Group exercised all 
extension options not currently included in the lease liability, the additional payments 
would amount to CHF 0.6 billion (undiscounted) at December 31, 2021.
Vehicles leases
The Group leases trucks for distribution in speciﬁc businesses and cars for management 
and sales functions. The average contract duration is 6 years for trucks and 3 years for cars.
Other leases
The Group also leases Machinery and equipment and Tools, furniture and other equipment 
that combined are insigniﬁcant to the total leased asset portfolio.
8.2b Right-of-use assets
In millions of CHF
Land and 
buildings
Vehicles
Other
Total 
Net carrying amount
At January 1, 2021
2 264
2 264
186
186
160
160
2 610
Additions
532
532
89
89
149
149
770 
Depreciation
(487)
(487)
(95)
(95)
(80)
(80)
(662)
Impairments
(56)
(56)
—
—
(56)
Classiﬁcation (to)/from held for sale and change of scope of 
consolidation, net
37
37
(4)
(4)
2
35 
Currency retranslations and others
17
17
(7)
(7)
(1)
(1)
9 
At December 31, 2021
2 307
2 307
169
169
230
230
2 706 
Net carrying amount
At January 1, 2020
2 727
291
192
3 210
Additions
448 
150 
69 
667 
Depreciation
(481)
(116)
(74)
(671)
Impairments
(7)
(15)
 — 
(22)
Classiﬁcation (to)/from held for sale and change of scope of 
consolidation, net
(260)
(108)
(16)
(384)
Currency retranslations and others
(163)
(16)
(11)
(190)
At December 31, 2020
2 264 
186 
160 
2 610 
8. Property, plant and equipment

Consolidated Financial Statements of the Nestlé Group 2021
105
8.2c Other lease disclosures
A maturity analysis of lease liabilities is shown in Note 12.2b.
The Group incurred interest expense on lease liabilities of CHF 66 million 
(2020: CHF 79 million). The expense relating to short-term leases and variable lease 
payments not included in the measurement of lease liabilities is not signiﬁcant. The total 
cash outﬂow for leases amounted to CHF 879 million (2020: CHF 961 million).
There are no signiﬁcant lease commitments for leases not commenced at year-end.
9. Goodwill and intangible assets
Goodwill
Goodwill is initially recognized during a business combination (see Note 2). Subsequently 
it is measured at cost less impairment.  
Intangible assets
This heading includes intangible assets that are internally generated or acquired, either 
separately or in a business combination, when they are identiﬁable and can be reliably 
measured. Internally generated intangible assets (mainly management information 
system software) are capitalized provided that there is an identiﬁable asset that will be 
useful in generating future beneﬁts in terms of savings, economies of scale, etc. 
Payments made to third parties in order to in-license or acquire intellectual property 
rights, compounds and products are capitalized as non-commercialized intangible 
assets, as they are separately identiﬁable and are expected to generate future beneﬁts.
Non-commercialized intangible assets are not amortized, but tested for impairment  
(see Impairment of goodwill and intangible assets below). Any impairment charge is 
recorded in the consolidated income statement under Other operating expenses. They 
are reclassiﬁed as commercialized intangible assets once development is complete, 
usually when approval for sales has been granted by the relevant regulatory authority.
Commercialized indeﬁnite life intangible assets mainly comprise certain brands, 
trademarks, operating rights and intellectual property rights which can be renewed 
without signiﬁcant cost and are supported by ongoing marketing activities. They are not 
amortized but tested for impairment annually or more frequently if an impairment indicator 
is present. Any impairment charge is recorded in the consolidated income statement 
under Other trading expenses. The assessment of the classiﬁcation of intangible assets 
as indeﬁnite is reviewed annually. 
8. Property, plant and equipment

Consolidated Financial Statements of the Nestlé Group 2021
106
Finite life intangible assets are amortized over the shorter of their contractual or useful 
economic lives. They comprise mainly management information systems, and 
commercialized patents and rights to carry on an activity (e.g. exclusive rights to sell 
products or to perform a supply activity). They are amortized assuming a zero residual 
value, either on a straight-line basis or in limited cases using an output method if this 
better reﬂects the pattern in which the asset’s future economic beneﬁts are expected  
to be consumed. Useful lives are as follows: management information systems over  
3 to 8 years; other ﬁnite intangible assets over shorter of the estimated useful life or  
the related contractual period, from 5 to 25 years. Useful lives and residual values are 
reviewed annually. Amortization of ﬁnite life intangible assets starts when they are 
available for use and is allocated to the appropriate headings of expenses by function in 
the income statement. Any impairment charge is recorded in the consolidated income 
statement under Other trading expenses. 
Research and development 
Internal research costs are charged to the income statement in the year in which they 
are incurred. Development costs are only recognized as assets on the balance sheet  
if all the recognition criteria set by IAS 38 – Intangible Assets are met before the products 
are launched on the market. Development costs are generally charged to the income 
statement in the year in which they are incurred due to uncertainties inherent in the 
development of new products because the expected future economic beneﬁts cannot 
be reliably determined. As long as the products have not reached the market place  
(or obtained regulatory approval if necessary), there is no reliable evidence that positive 
future cash ﬂows would be obtained. 
Capitalized development costs are subsequently accounted for as described in the 
section Intangible assets above.
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
107
In millions of CHF
Goodwill
Brands and 
intellectual 
property rights
Operating 
rights 
and others
Management 
information 
systems
Total 
intangible 
assets
of which 
internally
generated
Net carrying amount
At January 1, 2021
27 620
27 620
13 778
13 778
5 326
5 326
1 044
1 044
20 148
20 148
949
949
Expenditure
—
3
206
206
252
252
461
461
232
232
Acquisitions through business combinations
3 025
3 025
2 756
2 756
530
530
20
20
3 306
3 306
—
Amortization
—
(42)
(42)
(69)
(69)
(273)
(273)
(384)
(384)
(243)
(243)
Impairments (a)/(c)
(353)
(353)
(1 743)
(1 743)
(172)
(172)
(2)
(2)
(1 917)
(1 917)
(2)
(2)
Disposals
—
—
—
(1)
(1)
(1)
(1)
(1)
(1)
Classiﬁcation (to)/from held for sale and disposals of businesses
(67)
(67)
—
(1)
(1)
(1)
(1)
(2)
(2)
—
Currency retranslations
787
787
447
447
161
161
4
612
612
13
13
At December 31, 2021
31 012
31 012
15 199
15 199
5 981
5 981
1 043
1 043
22 223
22 223
948
948
of which indeﬁnite useful life (b)
—
13 589
13 589
4 415
4 415
—
18 004
18 004
—
of which non-commercialized intangible assets
—
566
566
209
209
—
775
775
—
At December 31, 2021
Gross value
34 830
34 830
17 038
17 038
6 555
6 555
5 089
5 089
28 682
28 682
4 687
4 687
Accumulated amortization and impairments
(3 818)
(3 818)
(1 839)
(1 839)
(574)
(574)
(4 046)
(4 046)
(6 459)
(6 459)
(3 739)
(3 739)
Net carrying amount
At January 1, 2020
28 896 
11 306 
5 328 
1 190 
17 824 
1 080 
Expenditure
 — 
5 
51 
232 
288 
191 
Acquisitions through business combinations
1 963 
3 505 
678 
7 
4 190 
 — 
Amortization
 — 
(26)
(59)
(253)
(338)
(220)
Impairments (c)
(402)
 — 
(6)
(1)
(7)
(1)
Disposals
 — 
(7)
(2)
(2)
(11)
 — 
Classiﬁcation (to)/from held for sale and disposals of businesses
(706)
(130)
(152)
(94)
(376)
(69)
Currency retranslations
(2 131)
(875)
(512)
(35)
(1 422)
(32)
At December 31, 2020
27 620 
13 778 
5 326 
1 044 
20 148 
949 
of which indeﬁnite useful life (b)
 — 
12 231 
4 261 
— 
16 492 
— 
of which non-commercialized intangible assets
 — 
626 
199 
— 
825 
— 
At December 31, 2020
Gross value
31 607 
13 900 
5 668 
4 957 
24 525 
4 588 
Accumulated amortization and impairments
(3 987)
(122)
(342)
(3 913)
(4 377)
(3 639)
(a)  Total impairment of goodwill of CHF 353 million relates to the Nutrition CGU in Greater China Region (see Note 9.1.1). 
Total impairment of intangible assets of CHF 1917 million includes CHF 1613 related to the Wyeth brands impairment 
(see Note 9.1.1) and CHF 168 million of non-commercialized intangible assets.
(b)  Of which CHF 4397 million (2020: CHF 4243 million) are perpetual rights to market, sell and distribute certain Starbucks’ 
consumer and foodservice products globally, classiﬁed under the caption Operating rights and others. 
(c)  Of which CHF 168 million (2020: CHF 6 million) of non-commercialized intangible assets.
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
108
In addition to the above, the Group has entered into long-term agreements to in-license  
or acquire intellectual property or operating rights from third parties or related parties. 
If agreed objectives or performance targets are achieved, these agreements would require 
potential milestone payments and other payments by the Group, which may be capitalized 
as intangible assets (see accounting policy in Note 9 – Intangible assets). 
As of December 31, 2021, the Group’s committed payments (undiscounted and not risk-
adjusted) and their estimated timing are:
In millions of CHF
2021
2021
2020
Unconditional 
commitments
Potential 
milestone 
payments
Total
Unconditional 
commitments
Potential 
milestone 
payments
Total
Within one year
—
102
102
102
102
—
80 
80 
In the second year
—
229
229
229
229
—
85 
85 
In the third and fourth year
—
196
196
196
196
—
222 
222 
Thereafter
—
816
816
816
816
—
870 
870 
Total
—
1 343
1 343
1 343
1 343
 — 
1 257 
1 257 
of which related parties
—
47
47
47
47
—
48 
48 
Impairment of goodwill and intangible assets (including non-commercialized 
intangible assets)
Goodwill and intangible assets with an indeﬁnite life or not yet available for use are tested 
for impairment at least annually and when there is an indication of impairment. Finite life 
intangible assets are tested when there is an indication of impairment.
The annual impairment tests are performed at the same time each year and at the 
cash generating unit (CGU) level. The Group deﬁnes its groups of CGUs for goodwill 
impairment testing based on the way that it monitors and derives economic beneﬁts 
from the acquired goodwill. The CGUs are generally deﬁned at the level of the product 
category per Zone, or at the level of the GMB if the products are managed on a global 
basis. 
For indeﬁnite life intangible assets, the Group performs the test at the level of the 
smallest identiﬁable assets or group of assets that generates cash inﬂows that are 
largely independent of the cash inﬂows from other assets or groups of assets. Finally, 
non-commercialized intangible assets are tested at the level of the intangible asset itself. 
The impairment tests are performed by comparing the carrying value of the assets of 
these CGUs with their recoverable amount, usually based on their fair value less costs  
of disposal, but occasionally on their value in use. 
An impairment loss in respect of goodwill is never subsequently reversed.
9.1 Impairment
9.1.1 Impairment charge during the year
The 2021 impairment charge on intangible assets and goodwill (see Note 4) mainly relates 
to the Nutrition business in Zone AOA and to other various non-signiﬁcant impairments of 
intangible assets (predominantly in Nestlé Health Science and in Other businesses).
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
109
In the second half of 2021, due to the worsening performance of the Wyeth brands and 
Nutrition business in China, the Nutrition business in AOA was reorganized from a Regionally 
Managed Business to a Locally Managed Business and the Wyeth business was restructured. 
As a result, the composition of the goodwill cash generating unit (CGU) of the Nutrition 
business has been redeﬁned resulting in two goodwill CGUs: Greater China Region, and 
Zone AOA (excluding Greater China Region). As part of this process, goodwill was reallocated 
to the units aﬀected using a relative value approach based on the discounted cashﬂows of 
the underlying businesses. The two separate CGUs were subsequently tested for impairment. 
Considering how brand and production assets generate cash inﬂows and how 
management monitors the business, the Nestlé Nutrition Worldwide brands, which were 
managed together and had highly interdependent cash inﬂows, were tested at Nutrition 
worldwide level. In the second half of 2021, due to a restructuring of management 
responsibilities and route-to-market, the Wyeth brands and other Nutrition brands were 
tested separately.
Due to the presence of indicators of impairment, impairment tests of the Wyeth brands, 
the Nutrition CGU in Greater China Region, and the Nutrition CGU in Zone AOA (excluding 
Greater China Region) were concluded during the year-end closing. Those tests were 
based on updated ﬁnancial projections prepared by the Nutrition management during the 
second half of 2021. Determination of the recoverable amount incorporates certain key 
assumptions, some of which are subject to considerable uncertainty. These assumptions 
include, but are not limited to: birth rates in China and the rest of Zone AOA, the regulatory 
environment for infant nutrition in China, commercial success of new products launches, 
the duration of the COVID-19 pandemic and related economic and social impacts. 
Impairments were recognized under the heading Other trading expenses (see Note 4.1) 
for the Wyeth brands and under the heading Other operating expenses (see Note 4.2) for 
the goodwill in the Nutrition Greater China Region CGU. These were based on a determination 
of the fair value less costs of disposal (see Note 9.1.2), as follows:
Wyeth brands
Nutrition 
Greater China Region CGU
Key assumptions
Sales growth
Low single digit
Low single digit
Flat
Flat
Margin evolution
Moderate improvement
Moderate improvement
Moderate improvement
Moderate improvement
Terminal growth rate
1.3%
1.3%
0.3%
0.3%
Discount rate
7.9%
7.9%
7.3%
7.3%
Financial impact (in millions of CHF)
Impairment
1 613
1 613
353
353
Recoverable amount after impairment
2 641
2 641
1 548
1 548
Except for the impairment of the Wyeth brands, the goodwill in Greater China Region and 
an impairment of Property, plant and equipment (refer to Note 4.1), there was no other 
signiﬁcant impairment of the carrying amounts of other assets related to the Nutrition 
business. The Goodwill and intangible assets are included in the Zone AOA segment 
disclosed in Note 3.1.
In 2020, non-signiﬁcant impairments of goodwill (mainly in Other businesses) have been 
recognized, primarily as a result of revisions to projected cash ﬂows after taking into 
consideration the impact of the COVID-19 pandemic.
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
110
9.1.2 Annual impairment tests
Goodwill impairment reviews have been conducted for more than 30 Cash Generating 
Units (CGU). Impairment reviews on intangible assets with indeﬁnite useful life (“IAIUL”) 
were performed at the level of the smallest identiﬁable assets or group of assets.
The following table sets out the key assumptions for CGUs that have signiﬁcant Goodwill 
or IAIUL allocated to them.
Goodwill 
carrying 
amount (a)
IAIUL
carrying 
amount (a)
Period of
cash ﬂow 
projections
Average 
annual sales 
growth
Annual 
margin 
evolution
Terminal 
growth 
rate
Discount 
rate
CGU
PetCare Zone AMS
7 311
7 311
220
220
5 years
5 years
6.3%
6.3%
Stable
Stable
1.6%
1.6%
5.6%
5.6%
Nutrition Zone AOA (excluding Greater China Region)
5 355
5 355
1 258
1 258
5 years
5 years
3.8%
3.8%
Stable
Stable
2.3%
2.3%
9.3%
9.3%
Food Zone AMS
3 350
3 350
2 189
2 189
5 years
5 years
7.0%
7.0%
Stable
Stable
1.8%
1.8%
6.2%
6.2%
Nestlé Health Science
5 699
5 699
5 711
5 711
5 years
5 years
9.5%
9.5%
Improvement
Improvement
2.5%
2.5%
6.3%
6.3%
Beverages Zone AMS
1 150
1 150
4 071
4 071
5 years
5 years
3.3%
3.3%
Stable
Stable
1.9%
1.9%
6.2%
6.2%
Subtotal
22 865
22 865
13 449
13 449
Other CGUs
8 147
8 147
4 555
4 555
Total
31 012
31 012
18 004
18 004
CGU
PetCare Zone AMS
7 042
212
5 years
5.1%
Declining
1.5%
6.0%
Nutrition Zone AOA (including Greater China Region)
5 501
3 918
5 years
0.4%
Stable
2.8%
8.0%
Food Zone AMS
3 233
2 096
5 years
5.6%
Stable
1.6%
5.7%
Nestlé Health Science
3 050
3 213
5 years
10.4%
Improvement
2.5%
5.9%
Beverages Zone AMS
1 110
3 934
5 years
3.6%
Stable
1.7%
6.7%
Subtotal
19 936
13 373
Other CGUs
7 684
3 119
Total
27 620
16 492
(a)  In millions of CHF
For each signiﬁcant CGU the recoverable amount is higher than its carrying amount. The 
recoverable amount has usually been determined based upon a fair value less costs of 
disposal calculation. Generally, no directly observable market inputs are available to assess 
the fair value less costs of disposal. Therefore, the calculation is based on net present value 
techniques (fair value measurements categorized within Level 3 of the fair value hierarchy). 
Cash ﬂows have been projected over 5 years. They have been extrapolated using a steady 
or declining terminal growth rate. 
2021
2021
2020
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
111
Finally, the following has been taken into account in the impairment tests:
– The cash ﬂows have been discounted at post-tax weighted average rates. The discount 
rates have been computed based on external sources of information and reﬂect the time 
value of money and the risks speciﬁc to the CGU (including country risk).
– The cash ﬂows were based upon ﬁnancial plans approved by Group Management which 
are consistent with the Group’s approved strategy for this period. They are based on 
past performance and current initiatives. The business risk is included in the determination 
of the cash ﬂows.
– The terminal growth rates have been determined to reﬂect the long-term view of the 
nominal evolution of the business taking into account the latest outlook for long-term 
inﬂation. 
– The cash ﬂows, the discount rates and the terminal growth rates include inﬂation.
The Group assesses the uncertainty of these estimates by performing sensitivity analyses. 
Management believes that no reasonably possible change in any of the above key 
assumptions would cause the CGU’s recoverable amount to fall below its carrying value 
except for the CGU Nutrition Zone AOA (excluding Greater China Region). For this CGU, 
changes in the key assumptions greater than the amounts below, most likely for the 
discount rate, would lead to the fair value less costs of disposal being less than the 
carrying amount: 
Sensitivity
Average annual sales growth
Decrease by 315 basis points
Decrease by 315 basis points
Annual margin evolution
Decrease by 330 basis points
Decrease by 330 basis points
Terminal growth rate
Decrease by 130 basis points
Decrease by 130 basis points
Discount rate
Increase by 100 basis points
Increase by 100 basis points
9. Goodwill and intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
112
10. Employee beneﬁts
10.1 Employee remuneration
The Group’s salaries of CHF 10 358 million (2020: CHF 10 880 million) and welfare expenses 
of CHF 3973 million (2020: CHF 3618 million) represent a total of CHF 14 331 million  
(2020: CHF 14 498 million). In addition, certain Group employees are eligible to long-term 
incentives in the form of equity compensation plans, for which the cost amounts to 
CHF 241 million (2020: CHF 269 million). Employee remuneration is allocated to the 
appropriate headings of expenses by function.
10.2 Post-employment beneﬁts
The liabilities of the Group arising from deﬁned beneﬁt obligations, and the related 
current service cost, are determined using the projected unit credit method. Actuarial 
advice is provided both by external consultants and by actuaries employed by the Group. 
The actuarial assumptions used to calculate the deﬁned beneﬁt obligations vary according 
to the economic conditions of the country in which the plan is located. Such plans are 
either externally funded (in the form of independently administered funds) or unfunded. 
The deﬁcit or excess of the fair value of plan assets over the present value of the deﬁned 
beneﬁt obligation is recognized as a liability or an asset on the balance sheet.
Pension cost charged to the income statement consists of service cost (current and 
past service cost, gains and losses arising from curtailment and settlement) and 
administration costs (other than costs of managing plan assets), which are allocated  
to the appropriate heading by function, and net interest expense or income, which is 
presented as part of net ﬁnancial income/(expense). The actual return less interest 
income on plan assets, changes in actuarial assumptions, and diﬀerences between 
actuarial assumptions and what has actually occurred are reported in Other 
comprehensive income. Some beneﬁts are also provided by deﬁned contribution plans. 
Contributions to such plans are charged to the income statement as incurred. 
Certain disclosures are presented by geographic area. The three regions disclosed are 
Europe, Middle East and North Africa (EMENA), Americas (AMS) and Asia, Oceania and 
sub-Saharan Africa (AOA). Each region includes the corresponding Zones as well as the 
portion of the GMB activity in that region.
Pensions and retirement beneﬁts
Apart from legally required social security arrangements, the majority of Group employees 
are eligible for beneﬁts through pension plans in case of retirement, death in service, 
disability and in case of resignation. Those plans are either deﬁned contribution plans  
or deﬁned beneﬁt plans based on pensionable remuneration and length of service.  
The Group manages its pension plans by geographic area and the major plans, classiﬁed 
as deﬁned beneﬁt plans under IAS 19, are located in EMENA (Switzerland, United Kingdom 
and Germany) and in AMS (USA). In accordance with applicable legal frameworks, these 
plans have Boards of Trustees or General Assemblies which are generally independent from 
the Group and are responsible for the management and governance of the plans. The Group 
oversees the pension plans through the Group Corporate Pension Board.

Consolidated Financial Statements of the Nestlé Group 2021
113
In Switzerland, Nestlé’s pension plan is a cash balance plan where contributions are 
expressed as a percentage of the pensionable salary. The pension plan guarantees the 
amount accrued on the members’ savings accounts, as well as a minimum interest on those 
savings accounts. At retirement date, the savings accounts are converted into pensions. 
However, members may opt to receive a part of the pension as a lump sum. Increases  
of pensions in payment are granted on a discretionary basis by the Board of Trustees, 
subject to the ﬁnancial situation of the plan. To be noted that there is also a deﬁned beneﬁt 
plan that has been closed to new entrants in 2013 and whose members below age 55  
as of that date were transferred to the cash balance plan. This heritage plan is a hybrid 
between a cash balance plan and a plan based on a ﬁnal pensionable salary. Finally, the 
Group has committed to make additional contributions in coordination with a decrease  
in conversion rates applicable since July 1, 2018. CHF 179 million had been contributed  
as at December 31, 2021, and CHF 140 million is expected to be paid until 2038.
In the United Kingdom, Nestlé’s pension plan is a hybrid arrangement combining  
a deﬁned beneﬁt career average section plus a deﬁned contribution section. The deﬁned 
beneﬁt section was closed to new entrants during 2016. In the deﬁned beneﬁt section, 
from August 2017 onwards, members accrue a pension deﬁned on their capped salary 
each year, plus deﬁned contribution provision above the capped salary. Accrued pensions 
are automatically revalued according to inﬂation, subject to caps. Similarly, pensions  
in payment are increased annually in line with inﬂation, subject to caps as applicable.  
At retirement, there is a lump sum option. Finally, the funding of the shortfall of the  
Nestlé UK Pension Fund is deﬁned on the basis of a triennial independent actuarial valuation 
in accordance with local regulations. As a result, an amount of CHF 438 million (equivalent 
GBP 348 million) has been paid by Nestlé UK Ltd during the year in accordance with the 
last valuation. No further funding shortfall payments are expected to date. The next triennial 
valuation is planned as at December 31, 2021, and is due to be completed by the end of 
March 2023.
In Germany, there are cash balance plans, where members beneﬁt from a guarantee  
on their savings accounts. Contributions to the plans are expressed as a percentage of the 
pensionable salary. Increases to pensions in payment are granted in accordance with legal 
requirements. There is also a heritage plan, based on ﬁnal pensionable salary, which has 
been closed to new entrants since 2006. In 2020, in order to lower the local pension 
discount rate, an extraordinary contribution of CHF 312 million (equivalent EUR 289 million) 
was paid.
In the USA, Nestlé’s primary pension plan is a pension equity design, under which 
members earn pension credits each year based on a schedule related to the sum of their age 
and service with Nestlé. A member’s beneﬁt is the sum of the annual pension credits earned 
multiplied by an average earning payable as a lump sum. However, in lieu of the lump sum, 
members have the option of converting the beneﬁt to a monthly pension annuity. The plan 
does not provide for automatic pension increases and members do not contribute to the 
plan. This plan was closed to new entrants at the end of 2015 and replaced by a deﬁned 
contribution scheme. The pension plan is suﬃciently funded on a local statutory basis 
such that no contributions were required in 2021. 
Post-employment medical beneﬁts and other employee beneﬁts
Subsidiaries, principally in AMS, maintain medical beneﬁt plans, classiﬁed as deﬁned 
beneﬁt plans under IAS 19, which cover eligible retired employees. The obligations for 
other employee beneﬁts consist mainly of end of service indemnities, which do not have 
the character of pensions.
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
114
Risks related to deﬁned beneﬁt plans
The main risks to which the Group is exposed in relation to operating deﬁned beneﬁt  
plans are:
– market and liquidity risks: these are the risks that the investments do not meet the 
expected returns over the medium to long-term. This also encompasses the mismatch 
between assets and liabilities. In order to minimize the risks, the structure of the portfolios 
is reviewed and asset-liability matching analyses are performed on a regular basis.
– mortality risk: the assumptions adopted by the Group make allowance for future 
improvements in life expectancy. However, if life expectancy improves at a faster rate 
than assumed, this would result in greater payments from the plans and consequently 
increases in the plans’ liabilities. In order to minimize this risk, mortality assumptions 
are reviewed on a regular basis.
As certain of the Group’s pension arrangements permit beneﬁts to be adjusted in the case 
that downside risks emerge, the Group does not always have full exposure to the risks 
described above.
Plan amendments and restructuring events
Plans within the Group are regularly reviewed as to whether they are aligned with market 
practice in the local context. Should a review indicate that a plan needs to be changed, 
prior agreement with the local Board of Trustees or the General Assembly, the regulator 
and, if applicable, the members, is sought before implementing plan changes.
During the year, there were individually non-signiﬁcant plan amendments and 
restructuring activities leading to curtailments and settlements amounting to net related 
past service costs of CHF 2 million (2020: CHF 8 million income).
Asset-liability management and funding arrangement
Plan trustees or General Assemblies are responsible for determining the mix of asset 
classes and target allocations of Nestlé’s plans with the support of investment advisors. 
Periodic reviews of the asset mix are made by mandating external consultants to perform 
asset liability matching analyses. Such analyses aim at comparing dynamically the fair value 
of assets and the liabilities in order to determine the most adequate strategic asset allocation.
The overall investment policy and strategy for the Group’s funded deﬁned beneﬁt plans 
is guided by the objective of achieving an investment return which, together with the 
contributions paid, is suﬃcient to maintain reasonable control over the various funding 
risks of the plans. As those risks evolve with the development of capital markets and asset 
management activities, the Group addresses the assessment and control process of the 
major investment pension risks. In order to protect the Group’s deﬁned beneﬁt plans 
funding ratio and to mitigate the ﬁnancial risks, protective measures on the investment 
strategies are in force, considering sustainability, social and climate factors. To the extent 
possible, the risks are shared equally amongst the diﬀerent stakeholders.
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
115
10.2a Reconciliation of assets and liabilities recognized in the balance sheet
In millions of CHF
2021
2021
2020
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Present value of funded obligations
24 617
24 617
67
67
24 684 
26 018 
70 
26 088 
Fair value of plan assets
(26 220)
(26 220)
(40)
(40)
(26 260)
(24 775)
(37)
(24 812)
Excess of liabilities/(assets) over funded obligations
(1 603)
(1 603)
27
27
(1 576)
1 243 
33 
1 276 
Present value of unfunded obligations
782
782
1 506
1 506
2 288 
845 
1 726 
2 571 
Unrecognized assets 
27
27
—
27 
18 
—
18 
Net deﬁned beneﬁt liabilities/(assets)
(794)
(794)
1 533
1 533
739 
2 106 
1 759 
3 865 
Reimbursement rights
(168)
—
Other employee beneﬁt liabilities
791 
785 
Net liabilities
1 362 
4 650 
Reﬂected in the balance sheet as follows:
Employee beneﬁt assets and reimbursement rights
(2 417)
(468)
Employee beneﬁt liabilities 
3 779 
5 118 
Net liabilities
1 362 
 4 650 
10.2b Funding situation by geographic area of deﬁned beneﬁt plans
In millions of CHF
2021
2021
2020
EMENA
AMS
AOA
Total
EMENA
AMS
AOA
Total
Present value of funded obligations
19 156
19 156
4 452
4 452
1 076
1 076
24 684 
20 264 
4 619 
1 205 
26 088 
Fair value of plan assets
(20 576)
(20 576)
(4 615)
(4 615)
(1 069)
(1 069)
(26 260)
(19 094)
(4 659)
(1 059)
(24 812)
Excess of liabilities/(assets) over funded 
obligations
(1 420)
(1 420)
(163)
(163)
7
(1 576)
1 170 
(40)
146 
1 276 
Present value of unfunded obligations
312
312
1 600
1 600
376
376
2 288 
361 
1 842 
368 
2 571 
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
116
10.2c Movement in the present value of deﬁned beneﬁt obligations
In millions of CHF
2021
2021
2020
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
At January 1
26 863
26 863
1 796
1 796
28 659 
26 948 
2 144 
29 092 
of which funded deﬁned beneﬁt plans
26 018
26 018
70
70
26 088 
26 176 
66 
26 242 
of which unfunded deﬁned beneﬁt plans
845
845
1 726
1 726
2 571 
772 
2 078 
2 850 
Currency retranslations
142
142
11
11
153 
(1 116)
(337)
(1 453)
Service cost
531
531
37
37
568 
496 
36 
532 
of which current service cost
526
526
40
40
566 
499 
41 
540 
of which past service cost and (gains)/losses arising  
from settlements 
5
(3)
(3)
2 
(3)
(5)
(8)
Interest expense
357
357
67
67
424 
442 
78 
520 
Actuarial (gains)/losses
(986)
(986)
(213)
(213)
(1 199)
1 463 
94 
1 557 
Employees contributions
115
115
—
115 
115 
—
115 
Beneﬁts paid on funded deﬁned beneﬁt plans
(1 258)
(1 258)
(8)
(8)
(1 266)
(1 527)
(5)
(1 532)
Beneﬁts paid on unfunded deﬁned beneﬁt plans
(140)
(140)
(106)
(106)
(246)
(52)
(101)
(153)
Classiﬁcation (to)/from held for sale and change of scope  
of consolidation, net
5
(2)
(2)
3 
15 
(25)
(10)
Reclassiﬁcation from other beneﬁts to deﬁned beneﬁt retirement plans
—
—
 — 
84 
(84)
 — 
Transfer from/(to) deﬁned contribution plans
(230)
(230)
(9)
(9)
(239)
(5)
(4)
(9)
At December 31
25 399
25 399
1 573
1 573
26 972 
26 863 
1 796 
28 659 
of which funded deﬁned beneﬁt plans
24 617
24 617
67
67
24 684 
26 018 
70 
26 088 
of which unfunded deﬁned beneﬁt plans
782
782
1 506
1 506
2 288 
845 
1 726 
2 571 
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
117
10.2d Movement in fair value of deﬁned beneﬁt plan assets
In millions of CHF
2021
2021
2020
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
At January 1
(24 775)
(24 775)
(37)
(37)
(24 812)
(24 498)
(32)
(24 530)
Currency retranslations
(144)
(144)
1
(143)
1 016 
— 
1 016 
Interest income
(327)
(327)
(1)
(1)
(328)
(399)
— 
(399)
Actual return on plan assets, excluding interest income
(1 594)
(1 594)
(3)
(3)
(1 597)
(1 542)
(3)
(1 545)
Employees’ contributions
(115)
(115)
—
(115)
(115)
— 
(115)
Employer contributions
(773)
(773)
(8)
(8)
(781)
(786)
(7)
(793)
Beneﬁts paid on funded deﬁned beneﬁt plans
1 258
1 258
8
1 266 
1 527 
5 
1 532 
Administration expenses
20
20
—
20 
22 
— 
22 
Transfer (from)/to deﬁned contribution plans
230
230
—
 230 
— 
— 
— 
At December 31
(26 220)
(26 220)
(40)
(40)
(26 260)
(24 775)
(37)
(24 812)
The major classes of plan assets as a percentage of total plan assets of the Group’s 
deﬁned beneﬁt plans are as follows:
2021
2021
2020 
Equities (a)
20%
24%
of which US equities
5%
6%
of which European equities
11%
14%
of which other equities
4%
4%
Debts
54%
50%
of which government debts (a)
41%
35%
of which corporate debts (b)
13%
15%
Real estate (b)
11%
11%
Alternative investments (b)
7%
7%
of which hedge funds
3%
4%
of which private equities
4%
3%
Cash/Deposits
8%
8%
(a)  Almost all have a quoted market price in an active market.
(b)  Almost all are either not quoted or are quoted in a market which is not active.
Equities and government debts represent 61% (2020: 59%) of the plan assets. Almost all of 
them are quoted in an active market. Corporate debts, real estate, hedge funds and private 
equities represent 31% (2020: 33%) of the plan assets. Almost all of them are either not 
quoted or quoted in a market which is not active.
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
118
The plan assets of funded deﬁned beneﬁt plans include property occupied by 
subsidiaries with a fair value of CHF 6 million (2020: CHF 8 million). Furthermore, funded 
deﬁned beneﬁt plans may invest in Nestlé S.A. (or related) shares. There was no direct 
investment at end of 2021 and 2020. The Group’s investment management principles allow 
such investment only when the position in Nestlé S.A. (or related) shares is passive, i.e. in 
line with the weighting in the underlying benchmark. 
The Group expects to contribute CHF 369 million to its funded deﬁned beneﬁt plans  
in 2022.
10.2e Expenses recognized in the income statement
In millions of CHF
2021
2021
2020
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Service cost
531
531
37
37
568 
496 
36 
532 
Net interest (income)/expense
32
32
66
66
98 
45 
78 
123 
Administration expenses
20
20
—
20 
22 
— 
22 
Deﬁned beneﬁt expenses
583
583
103
103
686 
563 
114 
677 
Deﬁned contribution expenses
347 
294 
Total
1 033 
971 
10.2f Remeasurement of deﬁned beneﬁt plans  
reported in other comprehensive income
In millions of CHF
2021
2021
2020
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Deﬁned beneﬁt 
retirement plans
Post-employment  
medical beneﬁts  
and other beneﬁts
Total
Actual return on plan assets, excluding interest income
1 594
1 594
3
1 597 
1 542 
 3 
1 545 
Experience adjustments on plan liabilities
41
41
27
27
68 
(101)
(40)
(141)
Change in demographic assumptions on plan liabilities
(75)
(75)
41
41
(34)
187 
(1)
186 
Change in ﬁnancial assumptions on plan liabilities
1 020
1 020
145
145
1 165 
(1 549)
(53)
(1 602)
Transfer from/(to) unrecognized assets and other
(8)
(8)
—
 (8) 
9 
— 
 9 
Remeasurement of deﬁned beneﬁt plans – actuarial gains/(losses)
2 572
2 572
216
216
2 788 
88 
(91)
(3)
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
119
10.2g Principal ﬁnancial actuarial assumptions
The principal ﬁnancial actuarial assumptions are presented by geographic area. Each item is 
a weighted average in relation to the relevant underlying component.
2021
2021
2020
EMENA
AMS
AOA
Total
EMENA
AMS
AOA
Total
Discount rates
1.1%
1.1%
3.6%
3.6%
4.9%
4.9%
1.8%
0.7%
3.2%
4.2%
1.5%
Expected rates of salary increases
2.0%
2.0%
3.2%
3.2%
4.2%
4.2%
2.5%
2.0%
3.1%
5.2%
2.5%
Expected rates of pension adjustments
1.3%
1.3%
0.3%
0.3%
1.6%
1.6%
1.1%
1.2%
0.3%
1.6%
1.0%
Medical cost trend rates (a)
6.1%
6.1%
6.1%
6.2%
6.2%
(a)  Medical cost trend rates represent the expected medical cost trend rates for next year. For plans in USA and Canada, 
medical cost trend rate is assumed to decrease to 4.5% by 2028 and respectively 4% by 2040. Some non-material 
post-employment medical plans in EMENA and AOA have not been considered in the average. 
10.2h Mortality tables and life expectancies by geographic area 
for the Group’s major deﬁned beneﬁt pension plans
Expressed in years
2021
2021
2020 
2021
2021
2020 
Country
Mortality table
Life expectancy at age 65 
for a male member
currently aged 65
Life expectancy at age 65 
for a female member
currently aged 65
EMENA
Switzerland
LPP 2020
21.7
21.7
21.7 
23.4
23.4
23.4 
United Kingdom
S3NA
21.2
21.2
21.2 
23.7
23.7
23.6 
Germany
Heubeck Richttafeln 2018
21.2
21.2
21.0 
23.5
23.5
23.4 
AMS
USA
Pri-2012
20.9
20.9
20.8 
22.9
22.9
22.8 
Life expectancy is reﬂected in the deﬁned beneﬁt obligations by using the best estimate 
of the mortality of plan members. When appropriate, base tables are adjusted to take into 
consideration expected changes in mortality e.g. allowing for future longevity improvements.
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
120
10.2i Sensitivity analyses on present value of deﬁned beneﬁt obligations  
by geographic area
The table below gives the present value of the deﬁned beneﬁt obligations when major 
assumptions are changed.
In millions of CHF
2021
2021
2020
EMENA
AMS
AOA
Total
EMENA
AMS
AOA
Total
As reported
19 468
19 468
6 052
6 052
1 452
1 452
26 972 
20 625 
6 461 
1 573 
28 659 
Discount rates
Increase of 50 basis points
18 046
18 046
5 717
5 717
1 393
1 393
25 156 
19 101 
6 061 
1 490 
26 652 
Decrease of 50 basis points
21 076
21 076
6 424
6 424
1 519
1 519
29 019 
22 356 
6 904 
1 666 
30 926 
Expected rates of salary increases
Increase of 50 basis points
19 576
19 576
6 095
6 095
1 476
1 476
27 147 
20 765 
6 534 
1 606 
28 905 
Decrease of 50 basis points
19 367
19 367
6 012
6 012
1 430
1 430
26 809 
20 492 
6 439 
1 543 
28 474 
Expected rates of pension adjustments
Increase of 50 basis points
20 458
20 458
6 061
6 061
1 482
1 482
28 001 
21 712 
6 485 
1 623 
29 820 
Decrease of 50 basis points
18 965
18 965
6 045
6 045
1 423
1 423
26 433 
20 015 
6 450 
1 549 
28 014 
Medical cost trend rates
Increase of 50 basis points
19 470
19 470
6 085
6 085
1 452
1 452
27 007 
20 626 
6 514 
1 579 
28 719 
Decrease of 50 basis points
19 467
19 467
6 022
6 022
1 450
1 450
26 939 
20 624 
6 412 
1 572 
28 608 
Mortality assumption
Setting forward the tables by 1 year
18 690
18 690
5 918
5 918
1 425
1 425
26 033 
19 840 
6 357 
1 542 
27 739 
Setting back the tables by 1 year
20 250
20 250
6 171
6 171
1 477
1 477
27 898 
21 405 
6 638 
1 603 
29 646 
All sensitivities are calculated using the same actuarial method as for the disclosed present 
value of the deﬁned beneﬁt obligations at year-end.
10.2j Weighted average duration of deﬁned beneﬁt obligations  
by geographic area
Expressed in years
2021
2021
2020
EMENA
AMS
AOA
Total
EMENA
AMS
AOA
Total
At December 31 
15.7
15.7
12.1
12.1
10.3
10.3
 14.6 
 16.0 
 13.4 
 11.5 
 15.2 
10. Employee beneﬁts

Consolidated Financial Statements of the Nestlé Group 2021
121
11. Provisions and contingencies
Provisions
Provisions comprise liabilities of uncertain timing or amount that arise from restructuring 
plans, environmental, litigation and other risks. Provisions are recognized when a legal 
or constructive obligation stemming from a past event exists and when the future cash 
outﬂows can be reliably estimated. Provisions are measured at the present value of the 
expenditures unless the impact of discounting is immaterial. Obligations arising from 
restructuring plans are recognized when detailed formal plans have been established 
and when there is a valid expectation that such plans will be carried out by either starting 
to implement them or announcing their main features. Obligations under litigation reﬂect 
Group Management’s best estimate of the outcome based on the facts known at the 
balance sheet date. 
Contingent assets and liabilities
Contingent assets and liabilities are possible rights and obligations that arise from past 
events and whose existence will be conﬁrmed only by the occurrence or non-occurrence 
of one or more uncertain future events not fully within the control of the Group. 
11.1 Provisions
In millions of CHF
Restructuring
Environmental
Legal and 
indirect Tax
Other
Total
At January 1, 2021
553
553
26
26
608
608
350
350
1 537 
Currency retranslations
(6)
(6)
(1)
(1)
(17)
(17)
(1)
(1)
(25)
Provisions made during the year (a)
321
321
41
41
357
357
173
173
892 
Amounts used
(332)
(332)
(2)
(2)
(94)
(94)
(85)
(85)
(513)
Reversal of unused amounts
(72)
(72)
(1)
(1)
(95)
(95)
(53)
(53)
(221)
Classiﬁcation (to)/from held for sale
—
—
—
2
2 
Modiﬁcation of the scope of consolidation
(1)
(1)
—
(1)
(1)
(32)
(32)
(34)
At December 31, 2021
463
463
63
63
758
758
354
354
1 638 
of which expected to be settled within 12 months
532 
At January 1, 2020
816 
30 
696 
422 
1 964 
Currency retranslations
(16)
(2)
(69)
(60)
(147)
Provisions made during the year (a)
287 
2 
204 
75 
568 
Amounts used
(446)
(3)
(62)
(57)
(568)
Reversal of unused amounts
(91)
(1)
(78)
(77)
(247)
Classiﬁcation (to)/from held for sale
15 
—
—
(1)
14 
Modiﬁcation of the scope of consolidation
(12)
—
(83)
48 
(47)
At December 31, 2020
553 
26 
608 
350 
1 537 
of which expected to be settled within 12 months
508 
(a)  Including discounting of provisions.

Consolidated Financial Statements of the Nestlé Group 2021
122
Restructuring
Restructuring provisions arise from a number of projects across the Group. These include 
plans to optimize production, sales and administration structures, mainly in the geography 
EMENA. Restructuring provisions are expected to result in future cash outﬂows when 
implementing the plans (usually over one to three years).
Legal and indirect tax 
Legal provisions have been set up to cover legal and administrative settlements that arise 
in the ordinary course of the business. Indirect tax provisions include disputes and 
uncertainties on non-income taxes (mainly VAT and sales taxes). They cover numerous 
separate cases whose detailed disclosure could be detrimental to the Group interests.  
The Group does not believe that any of these cases will have a material adverse impact 
on its ﬁnancial position. The timing of outﬂows is uncertain as it depends upon the outcome 
of the cases. Group Management does not believe it is possible to make assumptions on the 
evolution of the cases beyond the balance sheet date.
Other
Other provisions are mainly constituted by onerous contracts and various damage claims 
having occurred during the year but not covered by insurance companies. Onerous contracts 
result from termination of contracts or supply agreements above market prices in which 
the unavoidable costs of meeting the obligations under the contracts exceed the economic 
beneﬁts expected to be received or for which no beneﬁts are expected to be received.
11.2 Contingencies
The Group is exposed to contingent liabilities amounting to a maximum possible payment 
of CHF 1535 million (2020: CHF 1443 million) representing possible payments for litigations 
of CHF 1505 million (2020: CHF 1373 million) and payments for other items of CHF 30 million 
(2020: CHF 70 million). Possible payments for litigations relate mainly to labor, civil and tax 
litigations in Latin America.
Related to the French Competition Authority’s allegations against certain Nestlé 
subsidiaries in France (namely allegations of restricted competition relating to, among 
others, communication on the removal of bisphenol A from metal packaging), a reliable 
estimate of the potential ﬁnancial impact is currently not possible.
Contingent assets for litigation claims in favor of the Group amount to a probable recoverable 
amount of CHF 58 million (2020: CHF 198 million), mainly in Latin America.
11. Provisions and contingencies

Consolidated Financial Statements of the Nestlé Group 2021
123
12. Financial instruments
Financial assets – Classes and categories
The classiﬁcation of ﬁnancial assets is generally based on the business model in which 
a ﬁnancial asset is managed and its contractual cash ﬂow characteristics. The Group 
classiﬁes ﬁnancial assets in the following categories: 
– measured at amortized cost; 
– measured at fair value through the income statement (abbreviated as FVTPL, fair value 
through proﬁt or loss); and
–  measured at fair value through Other comprehensive income (abbreviated as FVOCI).
For an equity investment that is not held for trading, the Group may irrevocably elect  
to classify it as measured at FVOCI. This election is made at initial recognition on  
an investment by investment basis.
Financial assets – Recognition and derecognition
The settlement date is used for initial recognition and derecognition of ﬁnancial assets 
as these transactions are generally under contracts whose terms require delivery within 
the time frame established by regulation or convention in the market place (regular-way 
purchase or sale). Financial assets are derecognized when substantially all the Group’s 
rights to cash ﬂows from the ﬁnancial assets have expired or have been transferred and 
the Group has transferred substantially all the risks and rewards of ownership.
Financial assets – Measurement
Financial assets are initially recognized at fair value plus directly attributable transaction 
costs. However when a ﬁnancial asset measured at FVTPL is recognized, the transaction 
costs are expensed immediately. Subsequent remeasurement of ﬁnancial assets is 
determined by their category, which is revisited at each reporting date.
Commercial paper and time deposits are held by the Group’s treasury unit in a separate 
portfolio in order to provide interest income and mitigate the credit risk exposure of the 
Group. The Group considers that these investments are held within a business model 
whose objective is achieved by collecting contractual cash ﬂows. The contractual terms 
of these ﬁnancial assets give rise on speciﬁed dates to cash ﬂows that are solely 
payments of principal and interest on the principal amount outstanding. These assets 
have therefore been classiﬁed as measured at amortized cost.
Investments in equities, debt funds, equity funds as well as other ﬁnancial assets not 
giving rise on speciﬁed dates to cash ﬂows that are solely payments of principal and 
interest are classiﬁed at FVTPL. These investments are mainly related to liquidity 
management and self-insurance activities.
Financial assets – Impairment 
The Group assesses whether its ﬁnancial assets carried at amortized cost and FVOCI 
are impaired on the basis of expected credit losses (ECL). This analysis requires the 
identiﬁcation of signiﬁcant increases in the credit risk of the counterparties. Considering 
that the majority of the Group’s ﬁnancial assets are trade receivables, the analysis also 
integrates statistical data reﬂecting the past experience of losses incurred due to default, 
as well as any relevant forward-looking information. See Note 7.1 for impairments related 
to trade receivables.

Consolidated Financial Statements of the Nestlé Group 2021
124
12. Financial instruments
The Group measures loss allowances for investments in debt securities and time 
deposits that are determined to have low credit risk at the reporting date at an amount 
equal to 12 month expected credit losses.
The Group considers a debt security to have low credit risk when the credit rating  
is ‘investment grade’ according to internationally recognized rating agencies. To assess 
whether there is a signiﬁcant increase in credit risk since initial recognition, the Group 
considers available reasonable and supportive information such as changes in the credit 
rating of the counterparty. If there is a signiﬁcant increase in credit risk the loss allowance 
is measured at an amount equal to lifetime expected losses.
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured 
as the present value of all cash shortfalls due to a credit default event of the counterparty 
(i.e. the diﬀerence between the cash ﬂows in accordance with the contract and the cash 
ﬂows that the Group expects to receive).
Loss allowances for ﬁnancial assets measured at amortized cost are deducted from 
the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance 
is recognized in OCI, instead of reducing the carrying amount of the asset. 
Impairment losses on other ﬁnancial assets related to treasury activities are presented 
under Financial expense.
The model and some of the assumptions used in calculating these ECLs are key 
sources of estimation uncertainty.
Financial liabilities at amortized cost
Financial liabilities are initially recognized at fair value, net of transaction costs incurred.
Subsequent to initial measurement, ﬁnancial liabilities are recognized at amortized 
cost. The diﬀerence between the initial carrying amount of the ﬁnancial liabilities and 
their redemption value is recognized in the income statement over the contractual terms 
using the eﬀective interest rate method. This category includes the following classes of 
ﬁnancial liabilities: trade and other payables; commercial paper; bonds; lease liabilities 
and other ﬁnancial liabilities.
Financial liabilities at amortized cost are classiﬁed as current or non-current depending 
whether these are due within 12 months after the balance sheet date or beyond.
Financial liabilities are derecognized (in full or partly) when either the Group is 
discharged from its obligation, they expire, are cancelled or replaced by a new liability 
with substantially modiﬁed terms.

Consolidated Financial Statements of the Nestlé Group 2021
125
12.1 Financial assets and liabilities
12.1a By class and by category
In millions of CHF
2021
2021
2020
Classes
At amortized cost (a)
At fair value 
to income statement
At fair value to  
Other comprehensive 
income
Total 
categories
At amortized cost (a)
At fair value 
to income statement
At fair value to  
Other comprehensive 
income
Total 
categories
Cash at bank and in hand
2 685
2 685
—
—
2 685 
2 139 
—
—
2 139 
Commercial paper
5 511
5 511
—
—
5 511 
3 271 
—
—
3 271 
Time deposits
562
562
—
—
562 
687 
—
—
687 
Bonds and debt funds
88
88
5 721
5 721
2
5 811 
87 
3 078 
2 
3 167 
Equity and equity funds 
—
354
354
472
472
826 
—
347 
347 
694 
Other ﬁnancial assets
732
732
692
692
—
1 424 
569
676 
—
1 245 
Liquid assets (b) and non-current 
ﬁnancial assets
9 578
9 578
6 767
6 767
474
474
16 819 
6 753 
4 101 
349 
11 203 
Trade and other receivables
11 155
11 155
—
—
11 155 
10 746 
—
—
10 746 
Derivative assets (c)
—
278
278
—
278 
—
310 
—
310 
Total ﬁnancial assets
20 733
20 733
7 045
7 045
474
474
28 252 
17 499 
4 411 
349 
22 259 
Trade and other payables
(21 118)
(21 118)
(23)
(23)
—
(21 141)
(19 319)
(277)
—
(19 596)
Financial debt
(46 574)
(46 574)
—
—
(46 574)
(39 947)
—
—
(39 947)
Derivative liabilities (c)
—
(464)
(464)
—
(464)
—
(254)
—
(254)
Total ﬁnancial liabilities
(67 692)
(67 692)
(487)
(487)
—
(68 179)
(59 266)
(531)
—
(59 797)
Net ﬁnancial position
(46 959)
(46 959)
6 558
6 558
474
474
(39 927)
(41 767)
3 880 
349 
(37 538)
of which at fair value
—
6 558
6 558
474
474
7 032 
—
3 880 
349 
4 229 
(a)  Carrying amount of these instruments is a reasonable approximation of their fair value. For bonds included in ﬁnancial 
debt, see Note 12.1d. 
(b)  Liquid assets are composed of cash and cash equivalents and short-term investments.
(c)  Include derivatives held in hedge relationships and those that are undesignated (categorized as held-for-trading),  
see Note 12.2d.
12. Financial instruments

Consolidated Financial Statements of the Nestlé Group 2021
126
12. Financial instruments
12.1b Fair value hierarchy of ﬁnancial instruments
The Group classiﬁes the fair value of its ﬁnancial instruments in the following hierarchy, 
based on the inputs used in their valuation: 
– Level 1: the fair value of ﬁnancial instruments quoted in active markets is based on their 
quoted closing price at the balance sheet date. Examples include exchange-traded 
commodity derivatives and ﬁnancial assets such as investments in equity and debt 
securities.
– Level 2: the fair value of ﬁnancial instruments that are not traded in an active market  
is determined by using valuation techniques using observable market data. Such 
valuation techniques include discounted cash ﬂows, standard valuation models based 
on market parameters for interest rates, yield curves or foreign exchange rates, dealer 
quotes for similar instruments and use of comparable arm’s length transactions. For 
example, the fair value of forward exchange contracts, currency swaps and interest 
rate swaps is determined by discounting estimated future cash ﬂows. 
– Level 3: the fair value of ﬁnancial instruments that are measured on the basis of entity 
speciﬁc valuations using inputs that are not based on observable market data 
(unobservable inputs). When the fair value of unquoted instruments cannot be 
measured with suﬃcient reliability, the Group carries such instruments at cost less 
impairment, if applicable.
In millions of CHF
2021
2021
2020
Derivative assets
139 
119 
Bonds and debt funds
5 161 
2 558 
Equity and equity funds
332 
339 
Other ﬁnancial assets
68 
62 
Derivative liabilities
(11)
(4)
Prices quoted in active markets (Level 1)
5 689 
3 074 
Derivative assets
139 
191 
Bonds and debt funds
545 
509 
Equity and equity funds
358 
296 
Other ﬁnancial assets
608 
597 
Derivative liabilities
(453)
(250)
Valuation techniques based on observable market data (Level 2)
1 197 
1 343 
Financial assets
169 
89 
Financial liabilities (a)
(23)
(277)
Valuation techniques based on unobservable input (Level 3)
146 
(188)
Total ﬁnancial instruments at fair value
7 032 
4 229 
(a)  Contingent consideration on acquisition (see Note 2.2 Acquisitions of businesses for description).
There have been no signiﬁcant transfers between the diﬀerent hierarchy levels in 2021 and 
in 2020.

Consolidated Financial Statements of the Nestlé Group 2021
127
12. Financial instruments
12.1c Changes in liabilities arising from ﬁnancing activities
In millions of CHF
2021
2021
2020
At January 1
(39 942)
(37 401)
Currency retranslations and exchange diﬀerences
(196)
2 351 
Changes in fair values
50 
(80)
Changes arising from acquisition and disposal of businesses and classiﬁcation to/(from) held for sale 
(48)
257 
(Inﬂows)/outﬂows on interest derivatives
(14)
(12)
Increase in lease liabilities
(777)
(660)
Inﬂows from bonds and other long term ﬁnancial debt
(11 339)
(10 330)
Outﬂows from bonds, lease liabilities and other long term ﬁnancial debt
4 474 
3 182 
(Inﬂows)/outﬂows from short term ﬁnancial debt
885 
2 747 
Other movements
 — 
4 
At December 31
(46 907)
(39 942)
of which current ﬁnancial debt
(10 092)
(12 019)
of which non-current ﬁnancial debt
(36 482)
(27 928)
of which derivatives hedging ﬁnancial debt
(333)
5

Consolidated Financial Statements of the Nestlé Group 2021
128
12. Financial instruments
12.1d Bonds
In millions of CHF
Issuer
Face value
in millions
Coupon
Eﬀective 
interest 
rate
Year of
issue/ 
maturity
Comments
2021
2021
2020
Nestlé S.A., Switzerland
CHF
600
0.75%
0.69%
2018–2028
602
603
CHF
900
0.25%
0.26%
2018–2024
900
900
Nestlé Holdings, Inc., USA
USD
550
1.88%
2.03%
2016–2021
— 
484
USD
600
1.38%
1.52%
2016–2021
— 
528
GBP
500
1.00%
1.17%
2017–2021
— 
601
USD
800
2.38%
2.55%
2017–2022
731
702
USD
650
2.38%
2.50%
2017–2022
594
572
USD
300
2.25%
2.35%
2017–2022
274
264
EUR
850
0.88%
0.92%
2017–2025
(a)
877
919
CHF
550
0.25%
0.24%
2017–2027
(a)
550
550
CHF
150
0.55%
0.54%
2017–2032
(a)
150
150
USD
600
3.13%
3.28%
2018–2023
548
527
USD
1 000
3.10%
3.17%
2018–2021
(b)
— 
880
USD
1 500
3.35%
3.41%
2018–2023
(b)
1 370
1 319
USD
900
3.50%
3.59%
2018–2025
(b)
821
790
USD
1 250
3.63%
3.72%
2018–2028
(b)
1 137
1 094
USD
1 250
3.90%
4.01%
2018–2038
(b)
1 127
1 085
USD
2 100
4.00%
4.11%
2018–2048
(b)
1 885
1 815
USD
1 150
0.38%
0.49%
2020–2024
(b)
1 049
1 009
USD
750
0.63%
0.77%
2020–2026
(b)
682
656
USD
1 100
1.00%
1.06%
2020–2027
(b)
1 002
965
USD
1 000
1.25%
1.37%
2020–2030
(b)
906
872
GBP
600
0.63%
0.75%
2021–2025
(a)
739
— 
GBP
400
1.38%
1.46%
2021–2033
(a)
489
— 
USD
300
1.13%
1.19%
2021–2026
274
— 
USD
1 500
0.61%
0.66%
2021–2024
(b)
1 370
— 
USD
1 000
1.50%
1.58%
2021–2028
(b)
910
— 
USD
1 000
1.88%
1.91%
2021–2031
(b)
912
— 
USD
500
2.50%
2.55%
2021–2041
(b)
454
— 
USD
500
1.15%
1.22%
2021–2027
(b)
456
— 
USD
500
2.63%
2.69%
2021–2051
(b)
451
— 
CAD
2 000
2.19%
2.23%
2021–2029
(a)
1 437
— 
Subtotal
22 697
17 285

Consolidated Financial Statements of the Nestlé Group 2021
129
12. Financial instruments
In millions of CHF
Issuer
Face value
in millions
Coupon
Eﬀective 
interest 
rate
Year of
issue/ 
maturity
Comments
2021
2021
2020
Subtotal from previous page
22 697 
17 285 
Nestlé Finance International Ltd., Luxembourg
EUR
500
2.13%
2.20%
2013–2021
 — 
541 
EUR
500
0.75%
0.90%
2014–2021
 — 
541 
EUR
850
1.75%
1.89%
2012–2022
878 
919 
GBP
400
2.25%
2.34%
2012–2023
(c)
501 
505 
EUR
500
0.75%
0.92%
2015–2023
(d)
519 
549 
EUR
500
0.38%
0.54%
2017–2024
515 
539 
EUR
750
1.25%
1.32%
2017–2029
772 
808 
EUR
750
1.75%
1.83%
2017–2037
767 
804 
EUR
1 000
1.13%
1.27%
2020–2026
1 028 
 1 075 
EUR
1 000
1.50%
1.63%
2020–2030
1 024 
 1 071 
EUR
850
0.13%
0.25%
2020–2027
872 
 913 
EUR
650
0.00%
0.05%
2020–2024
671 
 703 
EUR
1 000
0.38%
0.56%
2020–2032
1 015 
 1 062 
EUR
500
0.00%
(0.26%)
2020–2025
522 
 549 
EUR
500
0.00%
0.16%
2020–2033
508 
 531 
EUR
500
0.38%
0.40%
2020–2040
515 
 539 
EUR
1 250
0.00%
0.00%
2021–2026
1 293 
 — 
EUR
750
0.25%
0.32%
2021–2029
772 
 — 
EUR
500
0.63%
0.69%
2021–2034
513 
 — 
EUR
650
0.88%
1.01%
2021–2041
656 
 — 
Nestlé Hungária Kft., Hungary
HUF
115 000
1.75%
1.53%
2021–2028
 327 
 — 
Other bonds
164 
216 
Total carrying amount (*)
36 529 
29 150 
of which due within one year
2 550 
3 632 
of which due after one year
33 979 
25 518 
Fair value (*) of bonds, based on prices quoted (level 2)
37 651 
31 532 
(*)  Carrying amount and fair value of bonds exclude accrued interest.
Several bonds are hedged by currency and/or interest derivatives. The fair value of these 
derivatives is shown under derivative assets for CHF 17 million (2020: CHF 71 million) 
and under derivative liabilities for CHF 114 million (2020: CHF 2 million).
(a) Subject to an interest rate and currency swap that creates a liability at ﬁxed rates in the currency of the issuer.
(b) Sold in the United States only to qualiﬁed institutional buyers and outside the United States to non-US persons.
(c) Subject to an interest rate swap.
(d) Out of which EUR 375 million is subject to an interest rate swap.

Consolidated Financial Statements of the Nestlé Group 2021
130
12. Financial instruments
12.2 Financial risks
In the course of its business, the Group is exposed to a number of ﬁnancial risks: credit 
risk, liquidity risk, market risk (including foreign currency risk and interest rate risk, 
commodity price risk and equity price risk). This note presents the Group’s objectives, 
policies and processes for managing its ﬁnancial risk and capital.
Financial risk management is an integral part of the way the Group is managed. The 
Board of Directors determines the ﬁnancial control principles as well as the principles  
of ﬁnancial planning. The Chief Executive Oﬃcer organizes, manages and monitors all 
ﬁnancial risks, including asset and liability matters. 
The Asset and Liability Management Committee (ALMC), chaired by the Chief Financial 
Oﬃcer, is the governing body for the establishment and subsequent execution of the 
Nestlé Group’s Financial Asset and Liability Management Policy. It ensures implementation 
of strategies and achievement of objectives of the Group’s ﬁnancial asset and liabilities 
management, which are executed by the Center Treasury, the Regional Treasury Centers 
and, in speciﬁc local circumstances, by the subsidiaries. Approved treasury management 
guidelines deﬁne and classify risks as well as determine, by category of transaction, speciﬁc 
approval, execution and monitoring procedures. The activities of the Centre Treasury and 
of the Regional Treasury Centers are monitored by an independent Middle Oﬃce, which 
veriﬁes the compliance of the strategies and/or operations with the approved guidelines 
and decisions taken by the ALMC. 
12.2a Credit risk
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations 
resulting in ﬁnancial loss to the Group. Credit risk arises on ﬁnancial assets (liquid, non-
current and derivatives) and on trade and other receivables.
The Group aims to minimize the credit risk of liquid assets, non-current ﬁnancial assets 
and derivative assets through the application of risk management policies. Credit limits 
are set based on each counterparty’s size and risk of default. The methodology used to set 
the credit limit considers the counterparty’s balance sheet, credit ratings, risk ratios and 
default probabilities. Counterparties are monitored regularly, taking into consideration the 
evolution of the above parameters, as well as their share prices and credit default swaps. 
As a result of this review, changes on credit limits and risk allocation are carried out. The 
Group avoids the concentration of credit risk on its liquid assets by spreading them over 
several institutions and sectors.
Trade receivables are subject to credit limits, control and approval procedures in all the 
subsidiaries. Due to its large geographic base and number of customers, the Group is not 
exposed to material concentrations of credit risk on its trade receivables (see Note 7.1). 
Nevertheless, commercial counterparties are constantly monitored following the similar 
methodology used for ﬁnancial counterparties.
The maximum exposure to credit risk resulting from ﬁnancial activities, without 
considering netting agreements and without taking into account any collateral held or 
other credit enhancements, is equal to the carrying amount of the Group’s ﬁnancial assets.

Consolidated Financial Statements of the Nestlé Group 2021
131
12. Financial instruments
Credit rating of ﬁnancial assets
This includes liquid assets, non-current ﬁnancial assets and derivative assets. The credit 
risk of the ﬁnancial assets is assessed based on the risk of the counterparties including the 
associated country risk. The Group uses an internationally recognized credit scale to present 
the information. The Group deals mainly with ﬁnancial institutions located in Switzerland, 
the European Union and North America.
In millions of CHF
2021
2021
2020
Investment grade A– and above
14 328 
8 836 
Investment grade BBB+, BBB and BBB–
803 
986 
Non-investment grade (BB+ and below)
937 
778 
Not rated (a)
1 029 
913 
17 097 
11 513 
(a)  Mainly equity securities and other investments for which no credit rating is available.
12.2b Liquidity risk
Liquidity risk management
Liquidity risk is the risk that a company may encounter diﬃculties in meeting its obligations 
associated with ﬁnancial liabilities that are settled by delivering cash or other ﬁnancial assets. 
Such risk may result from inadequate market depth or disruption or reﬁnancing problems. 
The Group’s objective is to manage this risk by limiting exposures in ﬁnancial instruments 
that may be aﬀected by liquidity problems and by maintaining suﬃcient back-up facilities. 
The Group does not expect any reﬁnancing issues and in October 2021 successfully 
extended the tenor of both its revolving credit facilities by around one year:
– A new USD 3.7 billion and EUR 3.4 billion revolving credit facility with an initial maturity 
date of October 2022. The Group has the ability to convert the facility into a one year 
term loan.
– A USD 2.7 billion and EUR 2.0 billion revolving credit facility with a new maturity date  
of October 2026.
The facilities serve primarily as a backstop to the Group’s short-term debt.

Consolidated Financial Statements of the Nestlé Group 2021
132
12. Financial instruments
Contractual maturities of ﬁnancial liabilities and derivatives (including interest)
In millions of CHF
In the ﬁrst year
In the second year
In the third 
to the ﬁfth year
After the ﬁfth year
Contractual 
amount
Carrying amount
Trade and other payables
(20 912)
(120)
(87)
(24)
(21 143)
(21 141)
Commercial paper (a)
(4 311)
— 
— 
— 
(4 311)
(4 303)
Bonds (a)
(3 109)
(3 483)
(12 020)
(23 894)
(42 506)
(36 529)
Lease liabilities
(635)
(485)
(966)
(1 089)
(3 175)
(2 930)
Other ﬁnancial debt
(2 729)
(118)
(43)
(7)
(2 897)
(2 812)
Total ﬁnancial debt
(10 784)
(4 086)
(13 029)
(24 990)
(52 889)
(46 574)
Financial liabilities (excluding derivatives)
(31 696)
(4 206)
(13 116)
(25 014)
(74 032)
(67 715)
Non-currency derivative assets
151 
8 
 — 
— 
159 
159 
Non-currency derivative liabilities
(12)
 (1) 
 — 
— 
(13)
(13)
Gross amount receivable from currency derivatives
21 011 
53 
1 771 
2 764 
25 599 
25 309 
Gross amount payable from currency derivatives
(21 272)
(92)
(1 907)
(2 831)
(26 102)
(25 641)
Net derivatives
(122)
(32)
(136)
(67)
(357)
(186)
of which derivatives under cash ﬂow hedges (b)
151 
1 
 — 
— 
152 
152 
Trade and other payables
(18 518)
(611)
(437)
(30)
(19 596)
(19 596)
Commercial paper (a)
(4 995)
— 
— 
— 
(4 995)
(4 992)
Bonds (a)
(4 131)
(2 960)
(9 318)
(17 583)
(33 992)
(29 150)
Lease liabilities
(615)
(554)
(935)
(1 082)
(3 186)
(2 779)
Other ﬁnancial debt
(2 886)
(49)
(157)
(13)
(3 105)
(3 026)
Total ﬁnancial debt
(12 627)
(3 563)
(10 410)
(18 678)
(45 278)
(39 947)
Financial liabilities (excluding derivatives)
(31 145)
(4 174)
(10 847)
(18 708)
(64 874)
(59 543)
Non-currency derivative assets
138 
14 
12 
— 
164 
164 
Non-currency derivative liabilities
(12)
— 
— 
— 
(12)
(12)
Gross amount receivable from currency derivatives
18 565 
10 
951 
709 
20 235 
20 288 
Gross amount payable from currency derivatives
(18 709)
(44)
(986)
(697)
(20 436)
(20 384)
Net derivatives
(18)
(20)
(23)
12 
(49)
56 
of which derivatives under cash ﬂow hedges (b)
29 
1 
— 
— 
30 
30 
(a)  Commercial paper of CHF 4240 million (2020: CHF 3639 million) and bonds of CHF 874 million (2020: CHF 671 million) 
have maturities of less than three months.
(b)  The periods when the cash ﬂow hedges aﬀect the income statement do not diﬀer signiﬁcantly from the maturities 
disclosed above.
12.2c Market risk
The Group is exposed to risk from movements in foreign currency exchange rates, interest 
rates and market prices that aﬀect its assets, liabilities and future transactions. 
2021
2021
2020

Consolidated Financial Statements of the Nestlé Group 2021
133
Foreign currency risk
The Group is exposed to foreign currency risk from transactions and translation. 
Transactional exposures arise from transactions in foreign currency. They are managed 
within a prudent and systematic hedging policy in accordance with the Group’s speciﬁc 
business needs through the use of currency forwards, futures, swaps and options. 
Exchange diﬀerences recorded in the income statement represented a loss  
of CHF 58 million in 2021 (2020: loss of CHF 126 million). They are allocated to the 
appropriate headings of expenses by function.
Translation exposure arises from the consolidation of the ﬁnancial statements of foreign 
operations in Swiss Francs, which is, in principle, not hedged.  
Value at Risk (VaR) based on historic data for a 250-day period and a conﬁdence level 
of 95% results in a potential one-day loss for currency risk of less than CHF 25 million  
in 2021 (2020: less than CHF 15 million).
The Group cannot predict the future movements in exchange rates, therefore the above 
VaR number neither represents actual losses nor considers the eﬀects of favorable 
movements in underlying variables. Accordingly, the VaR number may only be considered 
indicative of future movements to the extent the historic market patterns repeat in the future.
Interest rate risk
The Group is exposed primarily to ﬂuctuation in USD and EUR interest rates. Interest rate 
risk on ﬁnancial debt is managed based on duration and interest management targets set 
by the ALMC through the use of ﬁxed rate debt and interest rate swaps.
Taking into account the impact of interest derivatives, the proportion of ﬁnancial debt 
subject to ﬁxed interest rates for a period longer than one year represents 76% (2020: 67%).
Based on the level of Liquid assets and Debt exposed to ﬂoating interest rates at year 
end, an increase of interest rates of 100 basis points would cause a decrease in Net 
ﬁnancing cost of CHF 32 million on an annualized basis (2020: an increase in Net ﬁnancing 
cost of CHF 20 million).
Price risk
Commodity price risk
Commodity price risk arises from transactions on the world commodity markets to secure 
supplies of green coﬀee, cocoa beans, cereals and grains and other commodities necessary 
for the manufacture of some of the Group’s products.
The Group’s objective is to minimize the impact of commodity price ﬂuctuations and 
this exposure is hedged in accordance with the Nestlé Group policy on commodity price 
risk management. The Global Procurement Organization is responsible for managing 
commodity price risk based on internal directives and centrally determined limits, 
generally using exchange-traded commodity derivatives. The commodity price risk 
exposure of future purchases is managed using a combination of derivatives (mainly 
futures and options) and executory contracts. This activity is monitored by an independent 
Middle Oﬃce. Given the short product business cycle of the Group, the majority of the 
anticipated future raw material transactions outstanding at the balance sheet date are 
expected to occur in the next year.
Equity price risk
The Group is exposed to equity price risk on investments. To manage the price risk arising 
from these investments, the Group diversiﬁes its portfolios in accordance with the 
Guidelines set by the Board of Directors. 
12. Financial instruments

Consolidated Financial Statements of the Nestlé Group 2021
134
12.2d Derivative assets and liabilities and hedge accounting
Derivative ﬁnancial instruments
The Group’s derivatives mainly consist of currency forwards, options and swaps; 
commodity futures and options and interest rate swaps. Derivatives are mainly used  
to manage exposures to foreign exchange, interest rate and commodity price risk as 
described in section 12.2c Market risk. 
Derivatives are initially recognized at fair value. They are subsequently remeasured  
at fair value on a regular basis and at each reporting date as a minimum, with all their 
gains and losses, realized and unrealized, recognized in the income statement unless 
they are in a qualifying hedging relationship.
Hedge accounting
The Group designates and documents the use of certain derivatives and other ﬁnancial 
assets or ﬁnancial liabilities as hedging instruments against changes in fair values of 
recognized assets and liabilities (fair value hedges) and highly probable forecast 
transactions (cash ﬂow hedges). The eﬀectiveness of such hedges is assessed at 
inception and veriﬁed at regular intervals and at least on a quarterly basis to ensure 
that an economic relationship exists between the hedged item and hedging instrument. 
The Group excludes from the designation of the hedging relationship the hedging 
cost element. Subsequently, this cost element impacts the income statement at the 
same time as the underlying hedged item.
For the designation of hedging relationships on commodities, the Group applies  
the component hedging model when the hedged item is separately identiﬁable and 
measurable in the contract to purchase the materials.
Fair value hedges
The Group uses fair value hedges to mitigate foreign currency and interest rate risks  
of its recognized assets and liabilities, being mostly ﬁnancial debt.
Changes in fair values of hedging instruments designated as fair value hedges and 
the adjustments for the risks being hedged in the carrying amounts of the underlying 
transactions are recognized in the income statement.
Cash ﬂow hedges
The Group uses cash ﬂow hedges to mitigate a particular risk associated with  
a recognized asset or liability or highly probable forecast transactions, such as anticipated 
future export sales, purchases of equipment, and goods, as well as the variability of 
expected interest payments and receipts.
The eﬀective part of the changes in fair value of hedging instruments is recognized  
in other comprehensive income, while any ineﬀective part is recognized immediately in 
the income statement. Ineﬀectiveness for hedges of foreign currency and commodity price 
risk may result from changes in the timing of the forecast transactions than originally 
foreseen. When the hedged item results in the recognition of a non-ﬁnancial asset or 
liability, including acquired businesses, the gains or losses previously recognized in other 
comprehensive income are included in the measurement of the cost of the asset or of 
the liability. Otherwise the gains or losses previously recognized in other comprehensive 
income are recognized in the income statement at the same time as the hedged 
transaction.
12. Financial instruments

Consolidated Financial Statements of the Nestlé Group 2021
135
Undesignated derivatives
Derivatives which are not designated in a hedging relationship are classiﬁed as undesignated 
derivatives. They are used in the framework of approved risk management policies.
Derivatives by hedged risks
In millions of CHF
2021
2021
2020 
Contractual 
or notional 
amounts
Fair value
assets
Fair value
liabilities
Contractual 
or notional 
amounts
Fair value
assets
Fair value
liabilities
Fair value hedges (a)
Foreign currency and interest rate risk on net ﬁnancial debt
15 797 
43 
319 
9 271 
96 
83 
Cash ﬂow hedges
Foreign currency risk on future purchases or sales
7 311 
83 
61 
7 052 
71 
155 
Commodity price risk on future purchases
2 548 
 142 
12 
917 
124 
3 
Interest rate risk on net ﬁnancial debt
— 
— 
— 
440 
— 
7 
Designated in a hedging relationship
25 656 
268 
392 
17 680 
291 
248 
Undesignated derivatives
10 
72 
19 
6 
278 
464 
310 
254 
Conditional oﬀsets (b)
Derivative assets and liabilities
(65)
(65)
(40)
(40)
Use of cash collateral received or deposited
(27)
(39)
(36)
— 
Balances after conditional oﬀsets
186 
360 
234 
214 
(a)  The carrying amount of the hedged item recognized in the statement of ﬁnancial position is approximately equal to the 
notional of the hedging instruments.
(b)  Represent amounts that would be oﬀset in case of default, insolvency or bankruptcy of counterparties.
A description of the types of hedging instruments by risk category is included in  
Note 12.2c Market risk.
The majority of hedge relationships are established to ensure a hedge ratio of 1:1.
Impact on the income statement of fair value hedges
The majority of fair value hedges are related to ﬁnancing activities and are included in  
Net ﬁnancing cost.
In millions of CHF
2021
2021
2020
on hedged items
292 
24 
on hedging instruments
(290)
(24)
Ineﬀective portion of gains/(losses) of cash ﬂow hedges is not signiﬁcant.
12. Financial instruments

Consolidated Financial Statements of the Nestlé Group 2021
136
12.2e Capital risk management
The Group’s capital management is driven by the impact on shareholders of the level of 
total capital employed. It is the Group’s policy to maintain a sound capital base to support 
the continued development of its business.
The Board of Directors seeks to maintain a prudent balance between diﬀerent 
components of the Group’s capital. The ALMC monitors the capital structure and the  
net ﬁnancial debt by currency (see Note 16.5 for the deﬁnition of net ﬁnancial debt).
The operating cash ﬂow-to-net ﬁnancial debt ratio highlights the ability of a business to 
repay its debts. As at December 31, 2021, the ratio was 42.1% (2020: 45.9%). The Group’s 
subsidiaries have complied with local statutory capital requirements as appropriate.
13. Taxes
The Group is subject to taxes in diﬀerent countries all over the world. Taxes and ﬁscal 
risks recognized in the Consolidated Financial Statements reﬂect Group Management’s 
best estimate of the outcome based on the facts known at the balance sheet date in 
each individual country. These facts may include but are not limited to change in tax 
laws and interpretation thereof in the various jurisdictions where the Group operates. 
They may have an impact on the income tax as well as the resulting assets and liabilities. 
Any diﬀerences between tax estimates and ﬁnal tax assessments are charged to the 
income statement in the period in which they are incurred, unless anticipated.
Taxes include current and deferred taxes on proﬁt as well as actual or potential 
withholding taxes on current and expected transfers of income from subsidiaries and 
tax adjustments relating to prior years. Income tax is recognized in the income statement, 
except to the extent that it relates to items directly taken to equity or other comprehensive 
income, in which case it is recognized against equity or other comprehensive income.
Deferred taxes are based on the temporary diﬀerences that arise when taxation 
authorities recognize and measure assets and liabilities with rules that diﬀer from the 
principles of the Consolidated Financial Statements. They also arise on temporary 
diﬀerences stemming from tax losses carried forward.
Deferred taxes are calculated under the liability method at the rates of tax expected 
to prevail when the temporary diﬀerences reverse subject to such rates being substantially 
enacted at the balance sheet date. Any changes of the tax rates are recognized in the 
income statement unless related to items directly recognized against equity or other 
comprehensive income. Deferred tax liabilities are recognized on all taxable temporary 
diﬀerences excluding non-deductible goodwill. Deferred tax assets are recognized on 
all deductible temporary diﬀerences provided that it is probable that future taxable 
income will be available. 
12. Financial instruments

Consolidated Financial Statements of the Nestlé Group 2021
137
13.1 Components of taxes recognized in the income statement
In millions of CHF
2021
2021
2020
Current taxes (a)
(2 616)
(2 814)
Deferred taxes
(346)
(661)
Taxes reclassiﬁed to other comprehensive income
765 
140 
Taxes reclassiﬁed to equity
(64)
(30)
Total taxes
(2 261)
(3 365)
(a)  Current taxes related to prior years include a tax income of CHF 551 million (2020: tax income of CHF 629 million).
13.2 Reconciliation of taxes recognized in the income statement
In millions of CHF
2021
2021
2020
Proﬁt before taxes
10 806 
13 922 
Expected tax expense at weighted average applicable tax rate (a)
20.0%
20.0%
(2 157)
19.8%
(2 760)
Tax eﬀect of permanent diﬀerences on disposal of businesses
0.2%
0.2%
(21)
1.3%
(180)
Tax eﬀect of permanent diﬀerences on impairment of goodwill
0.2%
0.2%
(24)
0.7%
(97)
Tax eﬀect of other permanent diﬀerences
(1.6%)
(1.6%)
174 
0.8%
(103)
Prior years' taxes (b)
(3.2%)
(3.2%)
343 
(4.3%)
592 
Transfers to unrecognized deferred tax assets
1.6%
1.6%
(168)
1.9%
(262)
Transfers from unrecognized deferred tax assets
(0.3%)
(0.3%)
31 
(0.2%)
22 
Changes in tax rate on deferred taxes
0.4%
0.4%
(48)
0.2%
(23)
Withholding taxes on transfers of income
3.6%
3.6%
(393)
4.1%
(563)
Other
0.0%
0.0%
2 
(0.1%)
9 
Tax expense at eﬀective tax rate
20.9%
20.9%
(2 261)
24.2%
(3 365)
(a)  The weighted average applicable tax rate in 2021 increased compared to 2020 as a result of a change in the geographical 
mix of proﬁts.
(b)  The prior years' tax credits result from a revision of prior year tax exposure due to progress on resolving audits and 
agreeing the tax treatment of major intercompany transactions with the tax authorities in certain jurisdictions.
The expected tax expense at weighted average applicable tax rate is the result from 
applying the domestic statutory tax rates to proﬁts before taxes of each entity in the country 
it operates. For the Group, the weighted average applicable tax rate varies from one year 
to the other depending on the relative weight of the proﬁt of each individual entity in the 
Group’s proﬁt as well as the changes in the statutory tax rates.
13. Taxes

Consolidated Financial Statements of the Nestlé Group 2021
138
13. Taxes 
13.3 Reconciliation of deferred taxes by type of temporary diﬀerences  
recognized on the balance sheet
In millions of CHF
Property, plant  
and equipment
Goodwill and 
intangible assets
Employee beneﬁts
Working capital,  
provisions and 
other
Unused tax losses 
and unused tax 
credits
Total
At January 1, 2021
(1 206)
(1 206)
(1 997)
(1 997)
913
913
738
738
201
201
(1 351)
Currency retranslations
(10)
(10)
(91)
(91)
11
11
—
(1)
(1)
(91)
(Expense)/income in income statement
(72)
(72)
388
388
8
(41)
(41)
46
46
329 
(Expense)/income in other comprehensive income  
and equity
—
—
(585)
(585)
(90)
(90)
—
(675)
Classiﬁcation (to)/from held for sale
(154)
(154)
(32)
(32)
70
70
22
22
22
22
(72)
Modiﬁcation of the scope of consolidation
125
125
(687)
(687)
(58)
(58)
(16)
(16)
(40)
(40)
(676)
At December 31, 2021
(1 317)
(1 317)
(2 419)
(2 419)
359
359
613
613
228
228
(2 536)
At January 1, 2020
(1 400)
(2 074)
1 458 
1 219 
322 
(475)
Currency retranslations
104 
211 
(124)
(159)
(45)
(13)
(Expense)/income in income statement
(92)
344 
(190)
(289)
(279)
(506)
(Expense)/income in other comprehensive income  
and equity
—
—
(163)
8 
—
(155)
Classiﬁcation (to)/from held for sale
167 
35 
(77)
(112)
(22)
(9)
Modiﬁcation of the scope of consolidation
15 
(513)
9 
71 
225 
(193)
At December 31, 2020
(1 206)
(1 997)
913 
738 
201 
(1 351)
In millions of CHF
2021
2021
2020
Reﬂected in the balance sheet as follows:
Deferred tax assets
1 258 
1 285 
Deferred tax liabilities
(3 794)
(2 636)
Net assets/(liabilities)
(2 536)
(1 351)
13.4 Unrecognized deferred taxes
At December 31, 2021, the unrecognized deferred tax assets amount to CHF 994 million 
(2020: CHF 1001 million). 
The deductible temporary diﬀerences as well as the unused tax losses and tax credits  
for which no deferred tax assets are recognized expire as follows:
In millions of CHF
2021
2021
2020
Within one year
169 
79 
Between one and ﬁve years
426 
376 
More than ﬁve years
3 003 
3 294 
3 598 
3 749

Consolidated Financial Statements of the Nestlé Group 2021
139
In addition, the Group has unremitted earnings that are either considered indeﬁnitely 
reinvested in foreign subsidiaries or not. For the component of unremitted earnings which 
are expected to be repatriated in the foreseeable future and which are subject to 
withholding and other taxes on remittance, a deferred tax liability has been recorded. The 
unrecognized deferred tax liability on unremitted earnings that are considered indeﬁnitely 
reinvested is not signiﬁcant for the Group as the major part of these earnings is not subject 
to withholding and other taxes on remittance.
14. Associates and joint ventures
Associates are companies where the Group has the power to exercise a signiﬁcant inﬂuence 
but does not exercise control. Signiﬁcant inﬂuence is the power to participate in the ﬁnancial 
and operating policy decisions of the investee, and the determination of whether the Group 
has signiﬁcant inﬂuence requires the exercise of judgement. It may be evidenced when the 
Group has 20% or more of the voting rights in the investee or has obtained representation 
on the Board of Directors or otherwise participates in the policy-making process of the 
investee.  
Joint ventures are contractual arrangements over which the Group exercises joint control 
with partners and where the parties have rights to the net assets of the arrangement.
Associates and joint ventures are accounted for using the equity method. The interest 
in the associate or joint venture also includes long-term loans which are in substance 
extensions of the Group’s investment in the associate or joint venture. The net assets 
and results are adjusted to comply with the Group’s accounting policies. The carrying 
amount of goodwill arising from the acquisition of associates and joint ventures is included 
in the carrying amount of investments in associates and joint ventures.
In millions of CHF
2021
2021
2020
L’Oréal
Other
associates
Joint 
ventures
Total
L’Oréal
Other
associates
Joint 
ventures
Total
At January 1
8 640
8 640
1 757
1 757
1 608
1 608
12 005 
8 791 
1 584 
1 130 
11 505 
Currency retranslations
(413)
(413)
(47)
(47)
(2)
(2)
(462)
(25)
(37)
(77)
(139)
Investments
—
641
641
33
33
674 
— 
520 
 765 
1 285 
Divestments and reclassiﬁcations
(1 587)
(1 587)
(3)
(3)
(6)
(6)
(1 596)
— 
(345)
(46)
(391)
Share of results
1 156
1 156
17
17
33
33
1 206 
886 
126 
149 
1 161 
Impairment
—
—
3
3 
— 
(4)
(16)
(20)
Share of other comprehensive income
552
552
—
60
60
612 
(523)
2 
(84)
(605)
Dividends and interest received
(571)
(571)
(35)
(35)
(51)
(51)
(657)
(534)
(80)
(37)
(651)
Other (a)
(223)
(223)
215
215
29
29
21 
45 
(9)
(176)
(140)
At December 31
7 554
7 554
2 545
2 545
1 707
1 707
11 806 
8 640 
1 757 
1 608 
12 005 
(a)  In 2021, mainly the impact of the share buyback program in L’Oréal. In addition, the Group’s stake in IVC Evidensia was 
diluted following the merger of IVC Evidensia with VetStrategy in November. The increase of the Group’s share of the net 
assets of the combined entity is included under Other associates (CHF 250 million). The corresponding gain on the partial 
deemed disposal of IVC Evidensia was recognized under the heading Income from associates and joint ventures. 
In 2020, under Joint ventures, mainly the impact of an equity reduction at Froneri following partial buyback and 
redistribution of management shareholding.
13. Taxes

Consolidated Financial Statements of the Nestlé Group 2021
140
Increase of investments in Other associates in 2021 mainly relates to an increase in stake  
in IVC Evidensia in May. In 2020, it mainly related to Herta charcuterie business of  
CHF 280 million (of which CHF 273 million as a contribution in kind, see Note 2.3) and 
Aimmune of CHF 188 million.
In 2020, investments in Joint ventures mainly related to an increase of capital of Froneri 
(see Note 14.3) of CHF 183 million as well as a loan granted of CHF 582 million to ﬁnance 
the acquisition by Froneri of the US Ice Cream business (see Note 2.2). 
In 2021, divestments in L’Oréal relate to 22.26 million shares sold to L’Oréal (see Note 14.1). 
In 2020, divestments under Other associates mainly related to CHF 257 million with 
regards to the full acquisitions of Aimmune and Freshly (see Note 2.2), in which the Group 
held respectively about 26% and 16%.
As part of the carrying amount of the investment, Associates and joint ventures value 
at December 31, 2021 includes loans granted by the Group to Associates and joint ventures 
of CHF 1646 million (2020: CHF 1481 million).
Income from associates and joint ventures
In millions of CHF
2021
2021
2020
Share of results
1 206
1 161
Impairment
3
 (20) 
Proﬁt on partial disposal of L’Oréal shares (a)
 7 184 
— 
Proﬁt on disposal of Other associates (b)
 258 
 222 
Revaluation gain (c)
— 
 452 
8 651
1 815
(a)  Includes a cumulative loss of CHF 13 million recognized by L’Oréal in its accumulated other comprehensive income 
reserves and a cumulative loss of CHF 506 million recognized by the Group in its currency translation reserve that has 
been recycled to the income statement.
(b)  In 2021 includes a proﬁt on the partial deemed disposal of the Group’s stake in IVC Evidensia (see footnote (a) of the 
previous table of Note 14).
(c)  In 2020 included a revaluation gain of CHF 509 million on the shareholding already held in Aimmune and Freshly, 
respectively 26% and 16% (see Note 2.2) as well as a total of CHF 57 million of cumulative currency translation loss 
reclassiﬁed to income statement related to Aimmune and Freshly.
14. Associates and joint ventures

Consolidated Financial Statements of the Nestlé Group 2021
141
14.1 Associate – L’Oréal
The Group holds 107 621 021 shares in L’Oréal (whose ultimate parent company is 
domiciled in France), the world leader in cosmetics, representing a 20.1% participation 
in its equity after elimination of its treasury shares (2020: 129 881 021 shares representing 
a 23.2% participation). 
On December 15, 2021, the Group sold 22 260 000 shares to L’Oréal for CHF 9276 million 
for cancellation. As a result, the participation in its equity after elimination of its treasury 
shares was reduced from 23.2% to 20.1%.
At December 31, 2021, the market value of the shares held amounts to CHF 46.4 billion 
(2020: CHF 43.7 billion).
Summarized ﬁnancial information of L’Oréal
In billions of CHF
2021
2021
2020
Total current assets
12.5
15.8
Total non-current assets
32.0
31.4
Total assets
44.5
47.2
Total current liabilities
17.2
12.0
Total non-current liabilities
2.9
3.8
Total liabilities
20.1
15.8
Total equity
24.4
31.4
Total sales
34.9
30.0
Proﬁt from continuing operations
5.0
3.8
Other comprehensive income
2.3
(2.3)
Total comprehensive income
7.3
1.5
Reconciliation of the carrying amount
In billions of CHF
2021
2021
2020
Share held by the Group in the equity of L'Oréal
4.9
7.3
Goodwill and other adjustments
2.7
1.3
Carrying amount of L'Oréal
7.6
8.6
14. Associates and joint ventures

Consolidated Financial Statements of the Nestlé Group 2021
142
14.2 Other associates
The Group holds a number of other associates that are individually not material, the main 
ones being IVC Evidensia (veterinary services provider in Europe and North America), 
Lactalis Nestlé Produits Frais (chilled dairy business in Europe) and Herta (cold cuts and 
meat-based products).
14.3 Joint ventures
The Group holds a number of joint ventures operating in the food and beverage sectors. 
These joint ventures are individually not signiﬁcant to the Group, the main ones being 
Froneri and Cereal Partners Worldwide from which the Group earned CHF 224 million 
(2020: CHF 225 million) of royalties (see Note 18.2) for the use of its brands, trademarks 
and other intellectual property.
A list of the principal joint ventures and associates is provided in the section Companies 
of the Nestlé Group, joint arrangements and associates.
15. Earnings per share
2021
2021
2020
Basic earnings per share (in CHF)
6.06 
4.30 
Net proﬁt (in millions of CHF)
16 905 
12 232 
Weighted average number of shares outstanding (in millions of units)
2 788 
2 845 
Diluted earnings per share (in CHF)
6.06 
4.29 
Net proﬁt, net of eﬀects of dilutive potential ordinary shares (in millions of CHF)
16 905 
12 232 
Weighted average number of shares outstanding, net of eﬀects of dilutive potential ordinary shares 
(in millions of units)
2 791 
2 849 
Reconciliation of weighted average number of shares outstanding (in millions of units)
Weighted average number of shares outstanding used to calculate basic earnings per share
2 788 
2 845 
Adjustment for share-based payment schemes, where dilutive
3 
4 
Weighted average number of shares outstanding used to calculate diluted earnings per share
2 791 
2 849 
14. Associates and joint ventures

Consolidated Financial Statements of the Nestlé Group 2021
143
16. Cash ﬂow statement
16.1 Operating proﬁt
In millions of CHF
2021
2021
2020
Proﬁt for the year
 17 196 
 12 372 
Income from associates and joint ventures
(8 651)
(1 815)
Taxes
 2 261 
 3 365 
Financial income
(80)
(109)
Financial expense
 953 
 983 
 11 679 
 14 796 
16.2 Non-cash items of income and expense
In millions of CHF
2021
2021
2020
Depreciation of property, plant and equipment 
 3 056 
 3 127 
Impairment of property, plant and equipment 
 344 
 302 
Impairment of goodwill
 353 
 402 
Amortization of intangible assets
 384 
 338 
Impairment of intangible assets
 1 917 
 7 
Net result on disposal of businesses
(235)
(1 678)
Net result on disposal of assets
(83)
 (85) 
Non-cash items in ﬁnancial assets and liabilities
(293)
202 
Equity compensation plans
 130 
 123 
Other
(7)
8 
 5 566 
 2 746 
16.3 Decrease/(increase) in working capital
In millions of CHF
2021
2021
2020
Inventories
(1 414)
(1 740)
Trade and other receivables
(824)
36 
Prepayments and accrued income
(94)
(4)
Trade and other payables
2 115 
1 193 
Accruals
44 
829 
(173)
314

Consolidated Financial Statements of the Nestlé Group 2021
144
16.4 Variation of other operating assets and liabilities
In millions of CHF
2021
2021
2020
Variation of employee beneﬁts assets and liabilities
(609)
(460)
Variation of provisions
148 
(248)
Other
34 
9 
(427)
(699)
16.5 Reconciliation of free cash ﬂow and net ﬁnancial debt
In millions of CHF
2021
2021
2020
Operating cash ﬂow
13 864 
14 377 
Capital expenditure
(4 880)
(4 076)
Expenditure on intangible assets
(461)
(288)
Other investing activities
192 
232 
Free cash ﬂow
8 715 
10 245 
Acquisition of businesses
(6 394)
(4 520)
Financial liabilities and short-term investments acquired in business combinations
(69)
(310)
Disposal of businesses
 3 530 
 3 916 
Financial liabilities and short-term investments transferred on disposal of businesses  
and reclassiﬁcation to/(from) held for sale
 21 
 567 
Acquisition (net of disposal) of non-controlling interests
(601)
(1)
Investments in associates and joint ventures
(715)
(498)
Divestments in associates and joint ventures
9 294 
316 
Dividend paid to shareholders of the parent
(7 681)
(7 700)
Dividends paid to non-controlling interests
(302)
(268)
Purchase (net of sale) of treasury shares
(6 548)
(6 814)
Increase in lease liabilities
(777)
(660)
Currency retranslations and exchange diﬀerences
(82)
1 574 
Other movements
11 
(28)
(Increase)/decrease of net ﬁnancial debt
(1 598)
(4 181)
Net ﬁnancial debt at beginning of year
(31 319)
(27 138)
Net ﬁnancial debt at end of year
(32 917)
(31 319)
of which
   Current ﬁnancial debt
(10 092)
(12 019)
   Non-current ﬁnancial debt
(36 482)
(27 928)
   Cash and cash equivalents
6 988 
5 235 
   Short-term investments
7 007 
3 374 
   Derivatives (a)
(338)
19 
(a)  Related to Net debt and included in Derivative assets and Derivative liabilities balances of the Consolidated balance sheet.
16. Cash ﬂow statement

Consolidated Financial Statements of the Nestlé Group 2021
145
16.6 Cash and cash equivalents at end of year
Cash and cash equivalents include cash at bank and in hand and other short-term highly 
liquid investments with maturities of three months or less from the initial recognition.
In millions of CHF
2021
2021
2020
Cash at bank and in hand
2 685 
2 139 
Time deposits
546 
676 
Commercial paper
3 757 
2 420 
Cash and cash equivalents as per balance sheet
6 988 
5 235 
17. Equity
17.1 Share capital issued
The ordinary share capital of Nestlé S.A. issued and fully paid is composed of 2 815 000 000  
registered shares with a nominal value of CHF 0.10 each (2020: 2 881 000 000  registered 
shares). Each share confers the right to one vote. No shareholder may be registered with 
the right to vote for shares which it holds, directly or indirectly, in excess of 5% of the 
share capital. Shareholders have the right to receive dividends.
The share capital changed in 2021 and 2020 as a consequence of share buyback programs 
launched in July 2017 and in January 2020. The cancellation of shares was approved at  
the Annual General Meetings on April 15, 2021 and April 23, 2020. The share capital was 
reduced by 66 000 000 shares from CHF 288 million to CHF 282 million in 2021 and by
95 000 000 shares from CHF 298 million to CHF 288 million in 2020.
Started in January 2020, the share buyback program of up to CHF 20 billion was 
terminated on December 30, 2021. On January 3, 2022 a new share buyback program of 
up to CHF 20 billion started and is expected to be completed by the end of December 2024. 
The volume of monthly share buybacks depends on market conditions. Should any 
extraordinary dividend payments or sizeable acquisitions take place during the period of 
the share buyback, the amount of the share buyback will be reduced accordingly.
17.2 Conditional share capital
The conditional capital of Nestlé S.A. amounts to CHF 10 million as in the preceding year. 
It confers the right to increase the ordinary share capital, through the exercise of conversion 
or option rights granted in connection with convertible debentures or debentures with 
option rights or other ﬁnancial market instruments, by the issue of a maximum  
of 100 000 000 registered shares with a nominal value of CHF 0.10 each. Thus, the Board 
of Directors has at its disposal a ﬂexible instrument enabling it, if necessary, to ﬁnance  
the activities of the Company through convertible debentures.
16. Cash ﬂow statement

Consolidated Financial Statements of the Nestlé Group 2021
146
17.3 Treasury shares
Number of shares in millions of units
2021
2021
2020
Purpose of holding
Share buyback program
50.9 
59.7 
Long-Term Incentive Plans 
4.5 
4.8 
55.4 
64.5 
At December 31, 2021, the treasury shares held by the Group represent 2.0% of the  
share capital (2020: 2.2%). Their market value amounts to CHF 7061 million  
(2020: CHF 6729 million).
17.4 Number of shares outstanding
Number of shares in millions of units
Shares 
issued
Treasury
shares
Outstanding 
shares
At January 1, 2021
2 881.0
2 881.0
(64.5)
(64.5)
2 816.5 
Purchase of treasury shares
—
(59.2)
(59.2)
(59.2)
Treasury shares delivered in respect of equity compensation plans
—
2.3
2.3
2.3 
Treasury shares cancelled
(66.0)
(66.0)
66.0
66.0
 — 
At December 31, 2021
2 815.0
2 815.0
(55.4)
(55.4)
2 759.6 
At January 1, 2020
2 976.0 
(96.0)
2 880.0 
Purchase of treasury shares
—
(67.1)
(67.1)
Treasury shares delivered in respect of equity compensation plans
—
3.6 
3.6 
Treasury shares cancelled
(95.0)
95.0 
—
At December 31, 2020
2 881.0
(64.5)
2 816.5 
17.5 Translation reserve and other reserves
The translation reserve and the other reserves represent the cumulative amount attributable 
to shareholders of the parent of items that may be reclassiﬁed subsequently to the income 
statement.
The translation reserve comprises the cumulative gains and losses arising from 
translating the ﬁnancial statements of foreign operations that use functional currencies 
other than Swiss Francs. It also includes the changes in the fair value of hedging 
instruments used for net investments in foreign operations.
The other reserves mainly comprise the Group’s share in the items that may be 
reclassiﬁed subsequently to the income statement by the associates and joint ventures 
(reserves equity accounted for).
The other reserves also comprise the hedging reserve of the subsidiaries. The hedging 
reserve consists of the eﬀective portion of the gains and losses on hedging instruments 
related to hedged transactions that have not yet occurred.
17. Equity

Consolidated Financial Statements of the Nestlé Group 2021
147
17.6 Retained earnings
Retained earnings represent the cumulative proﬁts as well as remeasurement of deﬁned 
beneﬁt plans attributable to shareholders of the parent.
17.7 Non-controlling interests
The non-controlling interests comprise the portion of equity of subsidiaries that are not 
owned, directly or indirectly, by Nestlé S.A. These non-controlling interests are individually 
not material for the Group.
17.8 Other comprehensive income
In millions of CHF
Translation  
reserve
Hedging 
reserves
Reserves 
of associates and 
joint ventures
Retained 
earnings
Total equity
attributable to 
shareholders  
of the parent
Non-controlling  
interests
Total  
equity
Currency retranslations
– Recognized
619
619
(7)
(7)
6
—
618
618
—
618
618
– Reclassiﬁed to income statement
1 570
1 570
—
—
—
1 570
1 570
—
1 570
1 570
– Taxes
(58)
(58)
—
—
—
(58)
(58)
—
(58)
(58)
2 131
2 131
(7)
(7)
6
—
2 130
2 130
—
2 130
2 130
Fair value changes on equity instruments
– Recognized
—
—
—
59
59
59
59
—
59
59
– Taxes
—
—
—
(7)
(7)
(7)
(7)
—
(7)
(7)
—
—
—
52
52
52
52
—
52
52
Changes in cash ﬂow hedge and cost of hedge reserves
– Recognized
—
354
354
—
—
354
354
—
354
354
– Reclassiﬁed to income statement
—
131
131
—
—
131
131
1
132
132
– Taxes
—
(118)
(118)
—
—
(118)
(118)
—
(118)
(118)
—
367
367
—
—
367
367
1
368
368
Remeasurement of deﬁned beneﬁt plans
– Recognized
—
—
—
2 798
2 798
2 798
2 798
(10)
(10)
2 788
2 788
– Taxes
—
—
—
(587)
(587)
(587)
(587)
3
(584)
(584)
—
—
—
2 211
2 211
2 211
2 211
(7)
(7)
2 204
2 204
Share of other comprehensive income of associates  
and joint ventures
– Recognized
—
—
144
144
455
455
599
599
—
599
599
– Reclassiﬁed to income statement
—
—
13
13
—
13
13
—
13
13
—
—
157
157
455
455
612
612
—
612
612
Other comprehensive income for the year
2 131
2 131
360
360
163
163
2 718
2 718
5 372
5 372
(6)
(6)
5 366
5 366
17. Equity
2021
2021

Consolidated Financial Statements of the Nestlé Group 2021
148
In millions of CHF
Translation  
reserve
Hedging 
reserves
Reserves 
of associates and 
joint ventures
Retained 
earnings
Total equity
attributable to 
shareholders  
of the parent
Non-controlling  
interests
Total  
equity
Currency retranslations
– Recognized
(3 668)
1 
(3)
 — 
(3 670)
(58)
(3 728)
– Reclassiﬁed to income statement
 758 
 — 
 — 
 — 
 758 
 — 
 758 
– Taxes
39 
 — 
 — 
 — 
39 
 — 
39 
(2 871)
1 
(3)
 — 
(2 873)
(58)
(2 931)
Fair value changes on equity instruments
– Recognized
 — 
 — 
 — 
163 
163 
 — 
163 
– Taxes
 — 
 — 
 — 
(39)
(39)
 — 
(39)
 — 
 — 
 — 
124 
124 
 — 
124 
Changes in cash ﬂow hedge and cost of hedge reserves
– Recognized
 — 
(101)
 — 
 — 
(101)
(1)
(102)
– Reclassiﬁed to income statement
 — 
25 
 — 
 — 
25 
—
25 
– Taxes
 — 
 22 
 — 
 — 
 22 
 1 
23 
 — 
(54)
 — 
 — 
(54)
 — 
(54)
Remeasurement of deﬁned beneﬁt plans
– Recognized
 — 
 — 
 — 
5 
5 
(8)
(3)
– Taxes
 — 
 — 
 — 
(165)
(165)
 2 
(163)
 — 
 — 
 — 
(160)
(160)
(6)
(166)
Share of other comprehensive income of associates 
and joint ventures
– Recognized
 — 
 — 
(265)
(340)
(605)
 — 
(605)
 — 
 — 
(265)
(340)
(605)
 — 
(605)
Other comprehensive income for the year
(2 871)
(53)
(268)
(376)
(3 568)
(64)
(3 632)
17. Equity
2020

Consolidated Financial Statements of the Nestlé Group 2021
149
17.9 Reconciliation of the other reserves
In millions of CHF
Hedging 
reserves
Reserves 
of associates and 
joint ventures
Total 
At January 1, 2021
17
17
(382)
(382)
(365)
Other comprehensive income for the year
360
360
163
163
523 
Other movements
(203)
(203)
—
(203)
At December 31, 2021
174
174
(219)
(219)
(45)
At January 1, 2020
69 
(114)
(45)
Other comprehensive income for the year
(53)
(268)
(321)
Other movements
1 
—
1 
At December 31, 2020
17 
(382)
(365)
17.10 Dividend
In accordance with Swiss law, the dividend is treated as an appropriation of proﬁt in the 
year in which it is approved at the Annual General Meeting and subsequently paid.
The dividend related to 2020 was paid on April 21, 2021, in accordance with the decision 
taken at the Annual General Meeting on April 15, 2021. Shareholders approved the proposed 
dividend of CHF 2.75 per share, resulting in a total dividend of CHF 7681 million.
Dividend payable is not accounted for until it has been ratiﬁed at the Annual General 
Meeting. At the Annual General Meeting on April 7, 2022, a dividend of CHF 2.80 per share 
will be proposed, resulting in an estimated total dividend of CHF 7882 million. For further 
details, refer to the Financial Statements of Nestlé S.A.
The Consolidated Financial Statements for the year ended December 31, 2021, do not 
reﬂect this proposed distribution, which will be treated as an appropriation of proﬁt in  
the year ending December 31, 2022.
17. Equity

Consolidated Financial Statements of the Nestlé Group 2021
150
18. Transactions with related parties
18.1 Compensation of the Board of Directors and the Executive Board
Board of Directors
Members of the Board of Directors receive an annual compensation that varies with 
the Board and the Committee responsibilities as follows: 
– Board members: CHF 280 000; 
– members of the Chair’s and Corporate Governance Committee: additional CHF 200 000 
(Chair CHF 300 000);
– members of the Compensation Committee, the Nomination Committee and the 
Sustainability Committee: additional CHF 70 000 (Chair CHF 150 000); and
– members of the Audit Committee: additional CHF 100 000 (Chair CHF 150 000). 
The fees for the Chair of the Board and the CEO are included in their total compensation.
Half of the compensation is paid through the granting of Nestlé S.A. shares at the  
ex-dividend closing price. These shares are subject to a three-year blocking period.  
The full compensation is paid in arrears.
With the exception of the Chair and the CEO, members of the Board of Directors also 
receive an annual expense allowance of CHF 15 000 each. This allowance covers travel 
and hotel accommodation in Switzerland, as well as sundry out-of-pocket expenses. For 
Board members from outside Europe, the Company reimburses additionally their airline 
tickets. When the Board meets outside of Switzerland, all expenses are borne and paid 
directly by the Company. 
The Chair of the Board is entitled to cash compensation, as well as Nestlé S.A. shares 
which are blocked for three years.
In millions of CHF
2021
2021
2020
Chair’s compensation
3 
3 
Other Board members
     Remuneration – cash
3 
3 
     Shares
3 
3 
Total (a)
9 
9 
(a)  For the detailed disclosures regarding the remunerations of the Board of Directors that are required by Swiss law, refer to 
the Compensation report of Nestlé S.A. with the audited sections highlighted with a blue bar.

Consolidated Financial Statements of the Nestlé Group 2021
151
Executive Board
The total annual remuneration of the members of the Executive Board comprises a salary, 
a bonus (based on the achievement of the Group’s, functional and business objectives), 
equity compensation and other beneﬁts. Members of the Executive Board can choose to 
receive part or all of their bonus in Nestlé S.A. shares at the average closing price of the last 
ten trading days of January of the year of the payment of the bonus. The CEO has to take 
a minimum of 50% in shares. These shares are subject to a three-year blocking period.
In millions of CHF
2021
2021
2020
Remuneration – cash
14 
13 
Bonus – cash
11 
11 
Bonus – shares
5 
5 
Equity compensation plans (a)
14 
12 
Pension 
3 
3 
Total (b)
47 
44 
(a)  Equity compensation plans are equity-settled share-based payment transactions whose cost is recognized  
over the vesting period as required by IFRS 2.
(b)  For the detailed disclosures regarding the remunerations of the Executive Board that are required by Swiss law, 
refer to the Compensation report of Nestlé S.A. with the audited sections highlighted with a blue bar.
18.2 Transactions with associates and joint ventures
The main transactions with associates and joint ventures are:
– royalties received on brand licensing (see Note 14.3);
– dividends and interest received as well as loans granted (see Note 14);
– research and development commitments (see Note 9); 
– in-licensing and intellectual property purchase (see Note 9); 
– purchases and sales of ﬁnished and unﬁnished goods.
These transactions are undertaken on arm’s length terms.
18.3 Other transactions
–  Group’s pension plans considered as related parties, refer to Note 10 Employee beneﬁts;
–  Directors of the Group: no personal interest in any transaction of signiﬁcance for the 
business of the Group.
19. Guarantees
At December 31, 2021 and December 31, 2020, the Group has no signiﬁcant guarantees 
given to third parties.
18. Transactions with related parties

Consolidated Financial Statements of the Nestlé Group 2021
152
20. Eﬀects of hyperinﬂation
The 2021 and 2020 ﬁgures include the following countries considered as hyperinﬂationary 
economies: 
– Argentina;
– Iran;
– Venezuela;
– Zimbabwe; 
– Lebanon; and 
– Syria. 
None of them has a signiﬁcant impact on the Group accounts.
21. Events after the balance sheet date
The values of assets and liabilities at the balance sheet date are adjusted if there is 
evidence that subsequent adjusting events warrant a modiﬁcation of these values. 
These adjustments are made up to the date of approval of the Consolidated Financial 
Statements by the Board of Directors.
At February 16, 2022, the date of approval for issue of the Consolidated Financial 
Statements by the Board of Directors, the Group has no subsequent events which either 
warrant a modiﬁcation of the value of its assets and liabilities, or any additional disclosure, 
except the acquisition of Orgain as described in Note 2.2.
As previously announced, Nestlé implemented new Zone structure as of January 1, 2022. 
This change in organization will impact the 2022 Financial Statements.

Consolidated Financial Statements of the Nestlé Group 2021
153

Companies of the Nestlé Group,
Companies of the Nestlé Group,
joint arrangements and associates
joint arrangements and associates
In the context of the SIX Swiss Exchange Directive on Information relating to Corporate Governance, the principal aﬃliated 
companies are disclosed if they fulﬁl at least two of the following three disclosure criteria:
1) The amount exceeds CHF 40 million or equivalent on:
– total sales/services for operating companies;
– ﬁnancial/property income for sub-holding, ﬁnancial and property companies;
– share held by the Group in their proﬁt for joint ventures and associates; and/or
2) The amount exceeds CHF 20 million or equivalent on:
– the total balance sheet for aﬃliated companies;
– the Group‘s investment for joint ventures and associates; and/or
3) Average number of employees during the ﬁnancial year equal or greater than 250 FTE.
Entities directly held by Nestlé S.A. that are below the disclosure criteria are listed with a °.
Main operating entity in a given country that is below the disclosure criteria is listed with a NiM.
Europe
Europe
Austria
Nespresso Österreich GmbH & Co. OHG
Wien
100%
EUR
  35 000
Nestlé Österreich GmbH
Wien
100%
EUR
 7 270 000
Azerbaijan
Nestlé Azerbaijan LLC
° Baku
<0.1%
100%
USD
  200 000
Belarus
LLC Nestlé Bel
° Minsk
<0.1%
100%
BYN
  410 000
Belgium
Nespresso Belgique S.A.
Bruxelles
100%
EUR
  550 000
Nestlé Belgilux S.A.
Bruxelles
100%
EUR
 3 818 140
Nestlé Waters Benelux S.A.
Etalle
100%
EUR
 5 601 257
Bosnia and Herzegovina
Nestlé Adriatic BH d.o.o. 
° Sarajevo
9.4%
100%
BAM
  21 510
Bulgaria
Nestlé Bulgaria A.D.
Soﬁa
100%
BGN
 10 234 933
Croatia
Nestlé Adriatic d.o.o.
Zagreb
100%
HRK
 14 685 500
Countries within the continents are listed according to the alphabetical order of the country names.
Percentage of capital shareholding corresponds to voting powers unless stated otherwise.
∆Companies listed on the stock exchange
◊
Sub-holding, ﬁnancial and property companies
All companies listed below are fully consolidated except for:
1) Joint ventures accounted for using the equity method;
2) Joint operations accounted for in proportion to the Nestlé contractual speciﬁed share (usually 50%);
3) Associates accounted for using the equity method.
Consolidated Financial Statements of the Nestlé Group 2021
154
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Czech Republic
Nestlé Cesko s.r.o.
Praha
100%
CZK
 300 000 000
Tivall CZ, s.r.o.
Krupka
100%
CZK
 400 000 000
Denmark
Nestlé Danmark A/S
Copenhagen
100%
DKK
 44 000 000
Finland
Suomen Nestlé Oy
Espoo
100%
EUR
 6 000 000
France
Centres de Recherche et Développement Nestlé S.A.S.
Issy-les-Moulineaux
100%
EUR
 3 138 230
Nespresso France S.A.S.
Paris
100%
EUR
 1 360 000
Nestlé Excellence Supports France S.A.S.
Issy-les-Moulineaux
100%
EUR
 1 356 796
Nestlé France S.A.S.
Issy-les-Moulineaux
100%
EUR
 130 925 520
Nestlé Health Science France S.A.S.
Issy-les-Moulineaux
100%
EUR
 57 943 072
Nestlé Holding France S.A.S.
◊Issy-les-Moulineaux
100%
EUR
 739 559 392
Nestlé Purina PetCare Commercial Operations  
   France S.A.S.
Issy-les-Moulineaux
100%
EUR
 48 666 450
Nestlé Purina PetCare France S.A.S.
Issy-les-Moulineaux
100%
EUR
 21 091 872
Nestlé Waters S.A.S.
◊Issy-les-Moulineaux
100%
EUR
 254 825 042
Nestlé Waters Marketing & Distribution S.A.S.
Issy-les-Moulineaux
100%
EUR
 26 740 940
Nestlé Waters Supply Est S.A.S.
Issy-les-Moulineaux
100%
EUR
 17 539 660
Nestlé Waters Supply Sud S.A.S.
Issy-les-Moulineaux
100%
EUR
 7 309 106
Société des Produits Alimentaires de Caudry S.A.S.
Issy-les-Moulineaux
100%
EUR
 8 670 319
Société Industrielle de Transformation 
   de Produits Agricoles S.A.S.
Issy-les-Moulineaux
100%
EUR
 9 718 000
Cereal Partners France SNC
1) Noisiel
50%
EUR
 3 000 000
L’Oréal S.A. 
∆3) Paris
20.1%
20.1%
EUR
 107 621 021
Listed on the Paris stock exchange, market capitalization EUR 232.5 billion, quotation code (ISIN) FR0000120321
Lactalis Nestlé Produits Frais S.A.S.
3) Laval
40%
EUR
 69 208 832
Georgia
Nestlé Georgia LLC
NiM Tbilisi
100%
CHF
  700 000
Germany
Mucos Emulsionsgesellschaft mbH 
  Chemisch-Pharmazeutische Betriebe
Berlin
100%
EUR
  102 258
Nestlé Deutschland AG
Frankfurt am Main
100%
EUR
 214 266 628
Nestlé Product Technology Centre 
   Lebensmittelforschung GmbH
Freiburg i. Br.
100%
EUR
52 000
Nestlé Purina PetCare Deutschland GmbH
Bonn
100%
EUR
  30 000
Nestlé Unternehmungen Deutschland GmbH
◊Frankfurt am Main
15%
100%
EUR
 60 000 000
Nestlé Wagner GmbH
Saarbrücken
100%
EUR
  25 000
Nestlé Waters Deutschland GmbH
Frankfurt am Main
100%
EUR
 10 566 000
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
155
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Greece
Nestlé Hellas Single Member SA
Maroussi
100%
EUR
 5 269 765
Hungary
Nestlé Hungária Kft.
Budapest
100%
HUF
6 000 000 000
Ireland (Republic of)
Nestlé (lreland) Ltd
Dublin
100%
EUR
  1 270
Wyeth Nutritionals Ireland Ltd
Askeaton
100%
EUR
 8 741 000
Italy
Nespresso Italiana S.p.A.
Assago
100%
EUR
  250 000
Nestlé ltaliana S.p.A.
Assago
100%
EUR
 25 582 492
Nestlé Purina Commerciale Srl
Assago
100%
EUR
 1 000 000
Sanpellegrino S.p.A.
San Pellegrino Terme
100%
EUR
 58 742 145
Kazakhstan
Nestlé Food Kazakhstan LLP 
Almaty
<0.1%
100%
KZT
  91 900
Lithuania
UAB “Nestlé Baltics”
Vilnius
100%
EUR
  31 856
Luxembourg
Compagnie Financière du Haut-Rhin S.A.
◊Luxembourg
100%
EUR
 105 200 000
Nestlé Finance International Ltd
◊Luxembourg
100%
100%
EUR
  440 000
Nestlé Treasury International S.A.
°◊Luxembourg
100%
100%
EUR
 1 000 000
NTC-Europe S.A.
◊Luxembourg
100%
100%
EUR
 3 565 000
Froneri Lux Topco Sàrl (a)
 1) Luxembourg
47.1%
47.1%
EUR
  97 648
Islay New Group Holding S.A. (b)
3) Luxembourg
19.4%
GBP
 103 823 544
Macedonia
Nestlé Adriatik Makedonija d.o.o.e.l. 
NiM Skopje-Karpos
100%
MKD
 31 060 400
Malta
Nestlé Malta Ltd
NiM Lija
100%
EUR
  116 470
Moldova
LLC Nestlé
° Chișinău
100%
100%
MDL
  18 615
Montenegro
Nestle Adriatic Crna Gora d.o.o.
NiM Podgorica
100%
EUR
  5 307
(a)
Voting powers amount to 50%
(b)
Voting powers amount to 22%
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
156

Netherlands
East Springs International N.V.
◊Amsterdam
100%
EUR
 25 370 000
MCO Health B.V.
Almere
100%
EUR
  418 000
Nespresso Nederland B.V.
Amsterdam
100%
EUR
  680 670
Nestlé Nederland B.V.
Amsterdam
100%
EUR
 11 346 000
Tailsco B.V.
Amsterdam
83%
EUR
   1
Norway
AS Nestlé Norge
Bærum
100%
NOK
 81 250 000
Poland
Nestlé Polska S.A.
Warszawa
100%
PLN
 42 459 600
Nestlé Purina Manufacturing Operations 
   Poland Sp. Z o.o.
Nowa Wieś Wroclawska
100%
PLN
 495 923 700
Cereal Partners Poland Torun-Paciﬁc Sp. Z o.o.
1) Toruń
50%
PLN
 14 572 838
Portugal
Nestlé Portugal, Unipessoal, Lda.
Oeiras
100%
EUR
 30 000 000
Romania
Nestlé Romania S.R.L.
Bucharest
100%
RON
 132 906 800
Russia
Nestlé Kuban LLC
Timashevsk
100%
RUB
 21 041 793
Nestlé Rossiya LLC
Moscow
100%
RUB
 880 154 115
Serbia (Republic of)
Nestlé Adriatic S d.o.o., Beograd-Surcin
Beograd-Surcin
100%
RSD
12 222 327 814
Slovak Republic
Nestlé Slovensko s.r.o.
Prievidza
100%
EUR
 13 277 568
Slovenia
Nestlé Adriatic Trgovina d.o.o.
NiM Ljubljana
100%
EUR
  8 763
Spain
Nestlé España S.A.
Esplugues de Llobregat
100%
EUR
 100 000 000
Nestlé Global Services Spain, S.L.
Esplugues de Llobregat
100%
EUR
  3 000
Suplementos Solgar, S.L.
° Madrid
40%
100%
EUR
  504 000
Herta Foods, S.L.
3) Gurb
40%
EUR
 489 113 988
Sweden
Nestlé Sverige AB
Helsingborg
100%
SEK
 20 000 000
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
157
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Switzerland
Deswico Sàrl
°◊Vevey
100%
100%
CHF
  20 000
Entreprises Maggi S.A.
◊Cham
100%
100%
CHF
  100 000
Intercona Re AG
◊Châtel-St-Denis
100%
CHF
 35 000 000
Nestlé Enterprises SA
Vevey
100%
CHF
 3 514 000
Nestlé Nespresso S.A.
Lausanne
100%
CHF
 2 000 000
Nestlé Operational Services Worldwide S.A.
Bussigny-près-Lausanne
100%
CHF
  100 000
Nestlé Suisse S.A.
Vevey
100%
CHF
  250 000
Nestlé Ventures S.A.
°◊Vevey
100%
100%
CHF
  250 000
Nestlé Waters (Suisse) S.A.
Henniez
100%
CHF
 5 000 000
Nestrade S.A.
La Tour-de-Peilz
100%
CHF
 6 500 000
Nutrition-Wellness Venture AG
°◊Vevey
100%
100%
CHF
  100 000
Provestor AG
◊Cham
100%
CHF
 2 000 000
Société des Produits Nestlé S.A.
Vevey
100%
100%
CHF
 8 900 000
Soﬁnol S.A.
Manno
100%
CHF
 3 000 000
CPW Operations Sàrl
°1) Prilly
50%
50%
CHF
  40 000
Turkey
Erikli Su ve Mesrubat Sanayi ve Ticaret A.S.
Bursa
100%
TRY
 20 700 000
Nestlé Türkiye Gida Sanayi A.S.
Istanbul
99.9%
TRY
 35 000 000
Ukraine
JSC “Lviv Confectionery Factory” “Svitoch”
Lviv
100%
UAH
 88 111 060
LLC Nestlé Ukraine
Kyiv
100%
UAH
  799 965
LLC Technocom
Kharviv
100%
100%
UAH
 119 658 066
PJSC Volynholding
Torchyn
100%
UAH
  100 000
United Kingdom
Lily’s Kitchen Ltd
London
100%
GBP
  1 164
Mindful Chef Ltd
London
67.3%
GBP
   534
Nespresso UK Ltd
Gatwick
100%
GBP
  275 000
Nestec York Ltd
Gatwick
100%
GBP
  500 000
Nestlé Holdings (UK) PLC
◊Gatwick
100%
GBP
 77 940 001
Nestlé NB Financing (International) Ltd
°◊Gatwick
100%
100%
CHF
2
Nestlé NB Financing (UK) Ltd
°◊Gatwick
100%
100%
CHF
2
Nestlé Purina UK Commercial Operations Ltd
Gatwick
100%
GBP
  10 001
Nestlé Purina UK Manufacturing Operations Ltd
Gatwick
100%
GBP
 44 000 000
Nestlé UK Ltd
Gatwick
100%
GBP
 129 972 342
Nestlé VP LLP
London
<0.1%
100%
GBP
   0
Nestlé Waters UK Ltd
Gatwick
100%
GBP
   640
Tailsco Ltd
London
83%
GBP
   17
The Nature’s Bounty Co. Ltd
Manchester
99.4%
GBP
  1 089
Cereal Partners UK
1) Herts
50%
GBP
— 
Phagenesis Ltd
°3) Manchester
29.2%
29.2%
GBP
  16 146
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
158

Africa
Africa
Algeria
Nestlé Algérie SpA
° Alger
<0.1%
49%
DZD
 650 000 000
Nestlé Industrie Algérie SpA
° Alger
49%
49%
DZD
1 100 000 000
Angola
Nestlé Angola Lda
NiM Luanda
100%
AOA
1 791 870 000
Burkina Faso
Nestlé Burkina Faso S.A.
Ouagadougou
100%
XOF
 50 000 000
Cameroon
Nestlé Cameroun S.A.
Douala
100%
XAF
4 323 960 000
Côte d’Ivoire
Nestlé Côte d’Ivoire S.A.
∆Abidjan
88.1%
XOF
5 517 600 000
Listed on the Abidjan stock exchange, market capitalization XOF 101.6 billion, quotation code (ISIN) CI0009240728
Egypt
Nestlé Egypt S.A.E.
Giza
100%
100%
EGP
 80 722 000
Nestlé Waters Egypt S.A.E.
Cairo
99.8%
EGP
 90 140 000
Gabon
Nestlé Gabon, S.A.
NiM Libreville
90%
XAF
 344 000 000
Ghana
Nestlé Central and West Africa Ltd
Accra
100%
GHS
 145 746 000
Nestlé Ghana Ltd
Accra
76%
GHS
 20 100 000
Kenya
Nestlé Equatorial African Region Ltd
° Nairobi
100%
100%
KES
 132 000 000
Nestlé Kenya Ltd
Nairobi
100%
KES
 226 100 400
Mali
Nestlé Mali S.A.U.
NiM Bamako
100%
XOF
 10 000 000
Mauritius
Nestlé’s Products (Mauritius) Ltd
NiM Port Louis
100%
MUR
 2 488 071
Morocco
Nestlé Maroc S.A.
El Jadida
94.6%
MAD
 156 933 000
Mozambique
Nestlé Mocambique Lda
° Maputo
<0.1%
100%
MZN
2 631 711 200
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
159
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Nigeria
Nestlé Nigeria Plc
∆Ilupeju
3.1%
69.3%
NGN
 396 328 126
Listed on the Nigerian Stock Exchange, market capitalization NGN 1233.8 billion, quotation code (ISIN) NGNESTLE0006
Senegal
Nestlé Sénégal S.A. 
Dakar
100%
XOF
1 620 000 000
South Africa
Nestlé (South Africa) (Pty) Ltd
Johannesburg
100%
ZAR
 759 735 000
Tunisia
Nestlé Tunisie Distribution S.A. 
NiM Tunis
100%
TND
  100 000
Zambia
Nestlé Zambia Trading Ltd
° Lusaka
99.8%
100%
ZMW
 2 317 500
Zimbabwe
Nestlé Zimbabwe (Private) Ltd
Harare
100%
ZWL
 19 626 000
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
160

Americas
Americas
Argentina
Eco de Los Andes S.A.
Buenos Aires
50.9%
ARS
 92 524 285
Enzimas S.A.
° Buenos Aires
99.9%
100%
ARS
 9 000 000
Nestlé Argentina S.A.
Buenos Aires
96.3%
100%
ARS
9 660 396 000 
Bolivia
Industrias Alimentícias Fagal S.R.L.
Santa Cruz 
1.5%
100%
BOB
 175 556 000
Nestlé Bolivia S.A.
NiM Santa Cruz 
<0.1%
100%
BOB
  191 900
Brazil
Chocolates Garoto S.A.
Vila Velha
100%
BRL
 264 766 192
Nestlé Brasil Ltda
São Paulo
100%
100%
BRL
2 088 124 538
Nestlé Nordeste Alimentos e Bebidas Ltda
Feira de Santana
15.8%
100%
BRL
1 674 270 610
SOCOPAL – Sociedade Comercial de Corretagem  
   de Seguros e de Participações Ltda
° São Paulo
100%
100%
BRL
 2 155 600
Dairy Partners Americas Brasil Ltda
1) São Paulo
49%
49%
BRL
 300 806 368
Canada
Atrium Innovations Inc.
Westmount (Québec)
100%
CAD
 229 364 710
Bountiful Canada Vitamins ULC
Vancouver (B.C.)
100%
CAD
100
Nestlé Canada Inc.
Toronto (Ontario)
100%
CAD
 99 938 540
Cayman Islands
Hsu Fu Chi International Limited
◊Grand Cayman
60%
SGD
 7 950 000
Chile
Chocolates del Mundo S.A.
Quilicura
100%
CLP
1 592 620 167
Nestlé Chile S.A.
Santiago de Chile
99.8%
99.8%
CLP
11 832 926 000
Aguas CCU – Nestlé Chile S.A.
3) Santiago de Chile
49.8%
CLP
49 799 375 321
Colombia
Comestibles La Rosa S.A.
Bogotá
<0.1%
100%
COP
 126 397 400
Dairy Partners Americas Manufacturing Colombia Ltda
Bogotá
100%
COP
 200 000 000
Nestlé de Colombia S.A.
Bogotá
<0.1%
100%
COP
1 291 305 400
Nestlé Purina PetCare de Colombia S.A.
Bogotá
<0.1%
100%
COP
17 030 000 000
Costa Rica
Compañía Nestlé Costa Rica S.A.
Heredia
100%
CRC
 18 000 000
Cuba
Los Portales S.A.
La Habana
50%
USD
 24 110 000
Nescor, S.A.
° Artemisa
50.9%
50.9%
USD
 32 200 000
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
161
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Dominican Republic
Nestlé Dominicana S.A.
Santo Domingo
98.5%
99.9%
DOP
1 657 445 000
Silsa Dominicana S.A.
° Santo Domingo
6%
99.9%
USD
  50 000
Ecuador
Ecuajugos S.A.
Quito
<0.1%
100%
USD
  521 583
Industrial Surindu S.A.
Quito
<0.1%
100%
USD
 3 000 000
Nestlé Ecuador S.A.
Quito
<0.1%
100%
USD
 1 776 760
El Salvador
Nestlé El Salvador, S.A. de C.V.
San Salvador
<0.1%
100%
USD
 4 457 200
Guatemala
Malher, S.A.
Ciudad de Guatemala
<0.1%
100%
GTQ
 100 075 000
Nestlé Guatemala S.A.
Ciudad de Guatemala
<0.1%
100%
GTQ
 23 460 600
Honduras
Nestlé Hondureña S.A.
Tegucigalpa
100%
PAB
  200 000
Jamaica
Nestlé Jamaica Ltd
Kingston
100%
JMD
 49 200 000
Mexico
Manantiales La Asunción, S.A.P.I. de C.V. (c)
Ciudad de México
40%
MXN
1 035 827 492
Marcas Nestlé, S.A. de C.V.
Ciudad de México
100%
MXN
 500 051 000
Nescalín, S.A. de C.V.
◊Ciudad de México
100%
MXN
 445 876 740
Nespresso México, S.A. de C.V.
Ciudad de México
100%
MXN
 210 050 000
Nestlé México, S.A. de C.V.
Ciudad de México
100%
MXN
4 407 532 730
Nestlé Servicios Corporativos, S.A. de C.V.
Ciudad de México
100%
MXN
 170 200 000
Nestlé Servicios Industriales, S.A. de C.V.
Ciudad de México
100%
MXN
 1 050 000
Ralston Purina México, S.A. de C.V.
Ciudad de México
100%
MXN
60 283 210
Nicaragua
Compañía Centroamericana de Productos Lácteos, S.A.
Managua
92.6%
NIO
 10 294 900
Nestlé Nicaragua, S.A.
Managua
100%
USD
  150 000
Panama
Nestlé Centroamerica, S.A. 
Ciudad de Panamá
100%
USD
 1 000 000
Nestlé Panamá, S.A.
Ciudad de Panamá
100%
PAB
 17 500 000
Paraguay
Nestlé Business Services Latam S.A.
Asunción
100%
PYG
 100 000 000
Nestlé Paraguay S.A.
NiM Asunción
100%
PYG
100 000 000
(c)
Voting powers amount to 51%
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
162

Peru
Nestlé Marcas Perú, S.A.C.
Lima
50%
100%
PEN
 5 536 832
Nestlé Perú, S.A.
Lima
99.5%
99.5%
PEN
 88 964 263
Puerto Rico
Swirl, Corp.
° Guaynabo
100%
100%
USD
   100
Trinidad and Tobago
Nestlé Caribbean, Inc.
Valsayn
100%
USD
  100 000
Nestlé Trinidad and Tobago Ltd
Valsayn
100%
100%
TTD
 35 540 000
United States
Blue Bottle Coﬀee, LLC
Wilmington (Delaware)
100%
USD
   0
Freshly Inc.
Dover (Delaware)
100%
USD
   0
Garden of Life LLC
Wilmington (Delaware)
100%
USD
— 
Gerber Products Company
Fremont (Michigan)
100%
USD
  1 000
HVL LLC
Wilmington (Delaware)
100%
USD
— 
Merrick Pet Care, Inc.
Dallas (Texas)
100%
USD
 1 000 000
NDHH, LLC
◊Wilmington (Delaware)
100%
USD
   1
Nespresso USA, Inc.
Wilmington (Delaware)
100%
USD
  1 000
Nestlé Capital Corporation
◊Wilmington (Delaware)
100%
USD
 1 000 000
Nestlé HealthCare Nutrition, Inc.
Wilmington (Delaware)
100%
USD
  50 000
Nestlé Holdings, Inc.
◊Wilmington (Delaware)
100%
USD
  100 000
Nestlé Nutrition R&D Centers, Inc.
Wilmington (Delaware)
100%
USD
  10 000
Nestlé Prepared Foods Company
Philadelphia (Pennsylvania)
100%
USD
  476 760
Nestlé Purina PetCare Company
St. Louis (Missouri)
100%
USD
  1 000
Nestlé Purina PetCare Global Resources, Inc.
Wilmington (Delaware)
100%
USD
   0
Nestlé R&D Center, Inc.
Wilmington (Delaware)
100%
USD
  10 000
Nestlé Regional GLOBE Oﬃce North America, Inc.
Wilmington (Delaware)
100%
USD
  1 000
Nestlé USA, Inc.
Wilmington (Delaware)
100%
USD
  1 000
Pure Encapsulations, LLC
Wilmington (Delaware)
100%
USD
— 
Puritan’s Pride, Inc.
New York (New York)
99.4%
USD
   0
Red Maple Insurance Company
◊Williston (Vermont)
100%
USD
 1 200 000
Rexall Sundown, Inc.
Plantation (Florida)
99.4%
USD
   0
Solgar Holdings, Inc.
Wilmington (Delaware)
99.4%
USD
  1 000
The Nature’s Bounty Co.
Wilmington (Delaware)
99.4%
USD
10
Vital Proteins LLC
◊Wilmington (Delaware)
100%
USD
   0
Vitality Foodservice, Inc.
Dover (Delaware)
100%
USD
1 240
Vitaminpacks Inc.
Wilmington (Delaware)
98.3%
USD
1 076
Uruguay
Nestlé del Uruguay S.A.
Montevideo
100%
UYU
 375 426 189
Venezuela
Nestlé Venezuela, S.A.
Caracas
100%
100%
VES
   0
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
163
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Asia
Asia
Afghanistan
Nestlé Afghanistan Ltd
° Kabul
100%
100%
USD
 1 000 000
Bahrain
Nestlé Bahrain Trading WLL
NiM Manama
49%
BHD
  200 000
Bangladesh
Nestlé Bangladesh Limited
Dhaka
99.4%
100%
BDT
 100 000 000
Greater China Region
Dongguan Hsu Chi Food Co., Limited
Dongguan
60%
HKD
 700 000 000
Guangzhou Refrigerated Foods Limited
Guangzhou
95.5%
CNY
 390 000 000
Nestlé (China) Limited
Beijing
100%
100%
CNY
3 252 353 500
Nestlé Dongguan Limited
Dongguan
100%
CNY
 536 000 000
Nestlé Health Science (China) Limited
Taizhou City
100%
USD
 32 640 000
Nestlé Hong Kong Limited
Hong Kong
100%
HKD
 250 000 000
Nestlé Nespresso Beijing Limited
Beijing
100%
CNY
 7 000 000
Nestlé Purina PetCare Tianjin Limited
Tianjin
100%
CNY
 240 000 000
Nestlé Qingdao Limited
Laixi
100%
CNY
 930 000 000
Nestlé Shanghai Limited
Shanghai
95%
CNY
 200 000 000
Nestlé Shuangcheng Limited
Shuangcheng
97%
CNY
 435 000 000
Nestlé Taiwan Limited
Taipei
100%
TWD
 100 000 000
Nestlé Tianjin Limited
Tianjin
100%
CNY
 785 000 000
Shanghai Nestlé Product Services Limited
Shanghai
100%
CNY
 83 000 000
Shanghai Totole First Food Limited
Shanghai
100%
CNY
 72 000 000
Shanghai Totole Food Limited
Shanghai
100%
USD
 7 800 000
Sichuan Haoji Food Co., Limited
Puge
80%
CNY
 80 000 000
Suzhou Hexing Food Co., Limited
Suzhou
100%
CNY
 40 000 000
Wyeth (Hong Kong) Holding Co., Limited
◊Hong Kong
100%
HKD
1 354 107 000
Wyeth (Shanghai) Trading Co., Limited
Shanghai
100%
USD
 2 000 000
Wyeth Nutritional (China) Co., Limited
Suzhou
100%
CNY
 900 000 000
India
Nestlé India Ltd
∆New Delhi
34.3%
62.8%
INR
 964 157 160
Listed on the Bombay Stock Exchange, market capitalization INR 1899.9 billion, quotation code (ISIN) INE239A01016
Indonesia
P. T. Nestlé Indonesia
Jakarta
91.7%
IDR
152 753 440 000
P. T. Wyeth Nutrition Sduaenam
Jakarta
90%
IDR
2 500 000 000
Iran
Nestlé Iran (Private Joint Stock Company)
Tehrān
95.9%
IRR
358 538 000 000
Nestlé Parsian (Private Joint Stock Company)
° Tehrān
60%
100%
IRR
1 000 000 000
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
164

Israel
Materna Industries Limited Partnership
Kibbutz Maabarot
100%
ILS
  10 000
Nespresso Israel Ltd
Tel Aviv
100%
ILS
  1 000
OSEM Food Industries Ltd
Shoam
100%
ILS
   176
OSEM Investments Ltd
Shoam
100%
ILS
 110 644 443
Tivall Food Industries Ltd
Kiryat Gat
100%
ILS
 41 861 167
Japan
Blue Bottle Coﬀee Japan, G.K.
Tokyo
25%
100%
JPY
 10 000 000
Nestlé Japan Ltd
Kōbe
100%
JPY
4 000 000 000
Nestlé Nespresso K.K.
Kōbe
100%
JPY
 10 000 000
Jordan
Nestlé Jordan Trading Company Ltd
Amman
50%
87%
JOD
  410 000
Korea (Republic of)
Blue Bottle Coﬀee Korea Ltd
° Seoul
25%
100%
KRW
1 785 540 000
Nestlé Korea Yuhan Chaegim Hoesa
Seoul
100%
KRW
15 594 500 000
LOTTE-Nestlé (Korea) Co., Ltd
1) Cheongju
50%
KRW
52 783 120 000
Kuwait
Nestlé Kuwait General Trading Company WLL
Safat
49%
49%
KWD
  300 000
Lebanon
Société pour l’Exportation des Produits Nestlé S.A.
Baabda
100%
100%
CHF
 1 750 000
Malaysia
Nestlé (Malaysia) Bhd.
∆◊Petaling Jaya
72.6%
MYR
 267 500 000
Listed on the Kuala Lumpur stock exchange, market capitalization MYR 31.5 billion, quotation code (ISIN) MYL4707OO005
Nestlé Asean (Malaysia) Sdn. Bhd.
Petaling Jaya
72.6%
MYR
 42 000 000
Nestlé Manufacturing (Malaysia) Sdn. Bhd.
Petaling Jaya
72.6%
MYR
 132 500 000
Nestlé Products Sdn. Bhd.
Petaling Jaya
72.6%
MYR
 28 500 000
Wyeth Nutrition (Malaysia) Sdn. Bhd.
Petaling Jaya
100%
MYR
 1 969 505
Myanmar
Nestlé Myanmar Limited
° Yangon
95%
95%
USD
 9 469 600
Oman
Nestlé Oman Trading LLC
Muscat
49%
OMR
  300 000
Pakistan
Nestlé Pakistan Ltd
∆Lahore
61.6%
PKR
 453 495 840
Listed on the Pakistan Stock Exchange, market capitalization PKR 259.6 billion, quotation code (ISIN) PK0025101012
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
165
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Palestinian Territories
Nestlé Trading Private Limited Company
° Bethlehem
97.5%
97.5%
JOD
  200 000
Philippines
Nestlé Business Services AOA, Inc.
Bulacan
100%
100%
PHP
 70 000 000
Nestlé Philippines, Inc.
Cabuyao
100%
100%
PHP
2 300 927 400
Wyeth Philippines, Inc.
Makati City
100%
100%
PHP
 743 134 900
CPW Philippines, Inc.
°1) Makati City
50%
50%
PHP
 7 500 000
Qatar
Nestlé Qatar Trading LLC
Doha
49%
49%
QAR
 1 680 000
Saudi Arabia
Al Manhal Water Factory Co. Ltd
Riyadh
90%
SAR
 7 000 000
Nestlé Saudi Arabia LLC
Jeddah
75%
SAR
 27 000 000
Springs Water Factory Co. Ltd
Dammam
89.8%
SAR
 5 000 000
Singapore
Nestlé Singapore (Pte) Ltd
Singapore
100%
SGD
 1 000 000
Nestlé TC Asia Paciﬁc Pte Ltd 
°◊ Singapore 
100% 
100% 
JPY
SGD
10 000 000 000
2
Wyeth Nutritionals (Singapore) Pte Ltd
Singapore
100%
SGD
 220 506 420
Sri Lanka
Nestlé Lanka PLC
∆Colombo
91.9%
91.9%
LKR
 537 254 630
Listed on the Colombo stock exchange, market capitalization LKR 65.3 billion, quotation code (ISIN) LK0128N00005
Syria
Nestlé Syria S.A.
Damascus
100%
SYP
 800 000 000
Thailand
Nestlé (Thai) Ltd
Bangkok
100%
THB
 880 000 000
Nestlé Roh (Thailand) Ltd
° Bangkok
<0.1%
100%
THB
 250 000 000
Perrier Vittel (Thailand) Ltd
Bangkok
100%
THB
 235 000 000
Quality Coﬀee Products Ltd
Bangkok
30%
50%
THB
 500 000 000
United Arab Emirates
Nestlé Dubai Manufacturing LLC
Dubai
49%
AED
  300 000
Nestlé Middle East FZE
Dubai
100%
AED
 3 000 000
Nestlé Middle East Manufacturing LLC
Dubai
49%
AED
  300 000
Nestlé Treasury Centre-Middle East & Africa Ltd
◊Dubai
100%
USD
2 997 343 684
Nestlé UAE LLC
Dubai
49%
AED
 2 000 000
Nestlé Waters Factory H&O LLC
Dubai
51%
AED
 22 300 000
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
166

Uzbekistan
Nestlé Food MChJ XK
Tashkent
<0.1%
100%
UZS
12 922 977 969
Vietnam
La Vie Limited Liability Company
Long An
65%
USD
 2 663 400
Nestlé Vietnam Ltd
Bien Hoa
100%
100%
KVND
1 261 151 498
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
167
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital

Oceania
Oceania
Australia
Nestlé Australia Ltd
Sydney
100%
AUD
 274 000 000
Cereal Partners Australia Pty Ltd
1) Sydney
50%
AUD
 107 800 000
Fiji
Nestlé (Fiji) Ltd
° Lami
33%
100%
FJD
 3 000 000
French Polynesia
Nestlé Polynésie S.A.S.
NiM Papeete
100%
XPF
 5 000 000
New Caledonia
Nestlé Nouvelle-Calédonie S.A.S.
NiM Nouméa
100%
XPF
 64 000 000
New Zealand
Nestlé New Zealand Limited
Auckland
100%
NZD
  300 000
Papua New Guinea
Nestlé (PNG) Ltd
Lae
100%
PGK
 11 850 000
Companies of the Nestlé Group, joint arrangements and associates
Companies
City
% capital 
shareholdings 
by Nestlé S.A.
% ultimate 
capital 
shareholdings Currency
Capital
Consolidated Financial Statements of the Nestlé Group 2021
168

Switzerland
Nestlé Research 
Ecublens
R
Nestlé Product Technology Centre Beverage
Orbe
PTC
Nestlé Product Technology Centre Dairy
Konolﬁngen
PTC
Nestlé Product Technology Centre Nestlé Nutrition
Konolﬁngen
PTC
Nestlé Product Technology Centre Nestlé Professional
Orbe
PTC
Nestlé Research 
Lausanne
R
Nestlé System Technology Centre
Orbe
R and PTC
Société des Produits Nestlé S.A.
Vevey
TA
Australia
CPW R&D Centre
1) Wahgunyah
R&D
Chile
Nestlé Development Centre
Santiago de Chile
D
Côte d’Ivoire
Nestlé R&D Centre
Abidjan
R&D
France
Nestlé Development Centre Dairy
Lisieux
D
Nestlé Product Technology Centre Water
Vittel
PTC
Nestlé R&D Centre
Aubigny
R&D
Nestlé R&D Centre
Tours
R&D
Froneri Development Center Glaces S.A.S.
1) Beauvais
PTC
Technical assistance, research and development units
All scientiﬁc research and technological development is undertaken in a number of dedicated 
centres, specialized as follows:
Technical Assistance 
TA
Development centres 
D
Research centres 
R
Research & Development centres 
R&D
Product Technology centres 
PTC
The Technical Assistance centre is Société des Produits Nestlé S.A. (SPN), a technical, scientiﬁc, 
commercial and business assistance company. The units of SPN, specialized 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. SPN is also responsible for all scientiﬁc research 
and technological development, which it undertakes itself or through aﬃliated companies. The 
centres involved are listed below:
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
169
City of operations

Germany
Nestlé Product Technology Centre Food
Singen
PTC
Greater China Region
Nestlé R&D Centre
Beijing
R&D
India
Nestlé Development Centre
Gurgaon
D
Ireland (Republic of)
Nestlé Development Centre
Askeaton
D
Singapore
Nestlé Development Centre
Singapore
D
Nestlé Development Unit Ice Cream
Singapore
D
United Kingdom
Nestlé Product Technology Centre Confectionery
York
PTC
CPW R&D Centre
1) Staverton
R&D
United States
Nestlé Development Centre
Fremont (Michigan)
D
Nestlé Development Centre
Marysville (Ohio)
D
Nestlé Development Centre
Solon (Ohio)
D
Nestlé Product Technology Centre Health Science
Bridgewater (New Jersey)
PTC
Nestlé Product Technology Centre PetCare
St. Louis (Missouri)
PTC
Nestlé R&D Centre
St. Joseph (Missouri)
R&D
CPW R&D Centre
1) Minneapolis (Minnesota)
R&D
Companies of the Nestlé Group, joint arrangements and associates
Consolidated Financial Statements of the Nestlé Group 2021
170
City of operations

Consolidated Financial Statements of the Nestlé Group 2021
171
To the General Meeting of  
Lausanne, 16 February 2022 
Nestlé S.A., Cham & Vevey
Statutory auditor’s report on the audit of the consolidated financial 
statements
Opinion
We have audited the consolidated financial statements of 1estlp 6$ and its subsidiaries the 
Group), which comprise the consolidated income statement, the consolidated statement of 
comprehensive income the consolidated balance sheet the consolidated cash Àow 
statement, the consolidated statement of changes in equity and the notes to the consolidated 
financial statements including a summary of significant accounting policies as at 
31 December 2021 and for the year then ended.
,n our opinion the consolidated financial statements pages  to  give a true and fair 
view of the consolidated financial position of the *roup as at  December  and its 
consolidated financial performance and its consolidated cash Àows for the year then ended in 
accordance with ,nternational )inancial 5eporting 6tandards ,)56 and comply with 6wiss 
law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing 
,6$s and 6wiss $uditing 6tandards 2ur responsibilities under those provisions and 
standards are further described in the Auditor’s Responsibilities for the Audit of the 
Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the provisions of Swiss law and the 
requirements of the Swiss audit profession, as well as the International Code of Ethics for 
Professional Accountants (including International Independence Standards) of the 
International Ethics Standards Board for Accountants (IESBA Code) and we have fulfilled our 
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide 
a basis for our opinion.
K ey audit matters
K ey audit matters are those matters that, in our professional judgment, were of most 
significance in our audit of the consolidated financial statements of the current period 
7hese matters were addressed in the conte[t of our audit of the consolidated financial 
statements as a whole, and in forming our opinion thereon, and we do not provide a 
Ernst & Young Ltd
Avenue de la Gare 39a
32 %o[
CH-1002 Lausanne
Phone: 
+41 58 286 51 11
Fax: 
+41 58 286 51 01
www.ey.com/ch

Consolidated Financial Statements of the Nestlé Group 2021
172
separate opinion on these matters. For each matter below, our description of how our 
audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the 
audit of the consolidated financial statements section of our report, including in relation 
to these matters. Accordingly, our audit included the performance of procedures 
designed to respond to our assessment of the risks of material misstatement of the 
consolidated financial statements 7he results of our audit procedures including the 
procedures performed to address the matters below, provide the basis for our audit 
opinion on the consolidated financial statements
Measurement of revenue as it relates to trade spend 
Risk
$s described in 1otes  and  of the consolidated financial 
statements, revenue from the sale of goods is recogniz ed when 
control of the goods has transferred to the customer and is 
measured net of discounts, allowances and promotional rebates 
collectively µtrade spend¶ 7he measurement of revenue therefore 
involves estimates related to various trade spend arrangements 
with a broad customer base across diႇerent countries
2rganic growth which represents sales growth after removing the 
impact of acquisitions and divestitures and exchange rate 
movements, is an important component in the determination of 
measurable financial obMectives linNed to management incentive 
schemes. The risk of revenue being misstated, through error, 
misinterpretation or misapplication of accounting standards and 
policies or intentional manipulation, may result from the pressure 
that local management may feel to achieve performance targets. 
The nature of the misstatements may include bias in estimates, 
unrecorded accruals or the misclassification of trade spend in the 
income statement resulting in a misstatement of sales. 
We deemed the measurement of trade spend to be a key audit 
matter due to the materiality and complexity in estimating the 
amount of trade spend that is ultimately claimed. Management 
estimates the level of trade spend using judgments based on 
historical e[perience and the specific terms of the agreements 
with the customers. The estimates require the use of assumptions 
that are complex, given the diversity of trade spend arrangements 
and the uncertainty related to future outcomes, including changes 
in buying patterns resulting from &29,D

Consolidated Financial Statements of the Nestlé Group 2021
173
Our audit response 2ur audit procedures included the following
Accounting  policies:  We assessed the *roup¶s revenue 
recognition accounting policies, including the recognition and 
classification criteria for trade spend
P rocesses and controls:  We gained an understanding of the 
types of arrangements, processes, systems and internal controls 
related to trade spend. 
–  We tested the integrity of the general IT control environment 
relating to the most significant ,7 systems relevant to revenue 
recognition and tested selected IT application controls. 
–  We tested selected internal controls in some markets related to 
measuring and accounting for trade spend.  
Data analytics:  We evaluated monthly trends of sales and trade 
spend. We performed relationship analysis focused on the 
change in trade spend as a percentage of sales to assess the 
level of trade spend by category, and by customer, in the context 
of the local markets. For a sample of trade spend, we considered 
if those items were classified according to the *roup¶s accounting 
policies. 
T est of details:  For a sample of trade spend arrangements, we 
reconciled key inputs and assumptions used in the estimates with 
internal and external sources of information, such as the contracts 
with the relevant customers or other third-party support. We 
recalculated the accrual and income statement amounts to test 
mathematical accuracy. 
We assessed manual journal entries impacting trade spend to 
identify significant or unusual items and obtained underlying 
documentation.
We considered the ageing of trade spend accruals. We tested 
transactions with customers recorded after the reporting date to 
assess the completeness of accruals and assessed whether 
recorded in the correct period.  
Assessing  disclosure:  We assessed the disclosure provided in 
1ote  and 1ote  of the financial statements in relation to the 
relevant accounting standards.

Consolidated Financial Statements of the Nestlé Group 2021
174
Our results:  2ur audit procedures did not lead to any 
reservations concerning the trade spend accrual and related net 
revenue recogniz ed.
Carrying value of goodwill and indeﬁnite life intangibles assets
Risk
$s described in 1otes  and  of the consolidated financial 
statements, the Company has CHF 31.0 billion of goodwill and 
&+)  billion of indefinite life intangibles assets the sum of 
which represents 35%
 of total assets and 91%
 of equity.  For all 
cash generating units &*8s with goodwill or indefinitelife 
intangibles, indicators of impairment are assessed at each 
reporting date and an impairment test is performed at least 
annually.  
In the year ended 31 December 2021, impairment charges of  
&+)  billion have been recorded on goodwill and indefinite life 
intangibles assets, primarily related to the Wyeth brands and 
goodwill in the 1utrition &*8 in *reater &hina 5egion  
In the second half of 2021, due to the worsening performance of 
the Wyeth brands and Nutrition in China, management of the 
1utrition business in $2$ was reorgani]ed from a regionally 
managed business to a locally managed business and restructuring 
was undertaken for Wyeth.  As a result, the composition of the 
goodwill &*8 of the 1utrition business in $2$ has been redefined 
resulting in two &*8s 1utrition &*8 in *reater &hina 5egion 
and 1utrition &*8 in =one $2$ e[cluding *reater &hina 5egion  
Concurrently, the Wyeth brands was tested for impairment 
separately from other nutrition brands.  
The assessment of indicators of impairment and impairment 
testing are subjective in nature.  The recoverability of goodwill  
and indefinite life intangible assets is assessed using forecasted 
financial information within a discounted cash Àow model  7he 
recoverable amount is sensitive to changes in key assumptions, 
including sales growth, operating margins, discount and terminal 
growth rates 7he inputs as well as allocation of assets to &*8s 
are subject to management judgment.
7he Ney assumptions in the determination of proMected cash Àows 
see note  reÀected the foreseeable impacts of birth rates in 
&hina and rest of $2$ regulatory environment for infant nutrition 
in China, commercial success of new product launches, duration

Consolidated Financial Statements of the Nestlé Group 2021
175
of the &29,D pandemic and related economic impact in those 
regions. The recoverable amount of the Wyeth brands and the 
impairment charge taken are therefore subject to a high degree 
of estimation uncertainty.
Our audit response 2ur audit procedures included the following
Determination of cash g enerating  units ( C G U s) :  We gained  
an understanding of management¶s Mudgements with respect to 
the determination of &*8s including the changes to the &*8s 
in the current year to the Wyeth brands and 1utrition &*8 in 
*reater &hina 5egion and 1utrition &*8 in =one $2$ e[cluding 
Greater China R egion). We gained an understanding of the 
Mudgements and inputs applied in the allocation of assets to &*8s 
and recalculated key inputs. We assessed the determination of 
&*8s and the allocation of assets to those &*8s
P rocess and controls:  We gained an understanding of the 
impairment process and confirmed the e[istence of Ney controls 
H istorical comparisons and current contex t:  We obtained an 
understanding of the current macro-economic context, the impact 
of the ongoing &29,D pandemic on forecasted financial 
information and the outlooN for each &*8 through both e[ternal 
research and discussions with selected stakeholders within the 
*roup   We compared the forecasted financial information sales 
growth and operating margins) with historical data. Where the 
forecasted financial information diႇered from our e[pectations 
given the current context and historical data, we obtained 
supporting explanations.
6pecifically for the 1utrition &*8 in *reater &hina 5egion and 
the Wyeth brands, we gained an understanding of the outlook on 
birth rates in &hina and rest of $2$ the regulatory environment 
for infant formula and the plan for new product launches.  Where 
possible we compared management¶s forecasts to e[ternal 
information, particularly for birth rates.  Further, we challenged  
the Group on its forecasted sales growth and operating margins 
considering past performance and the current economic 
environment. 
P ersonnel interv iew s:  )orecasted financial information sales 
growth and operating margin) is forecasted bottom-up and 
reviewed centrally.  We compared judgments made and

Consolidated Financial Statements of the Nestlé Group 2021
176
information obtained both at the local level and at Group level for 
consistency. We assessed and challenged assumptions with 
reference to information from market research and perspectives 
from category leadership and z one leadership.
Assessment of methodolog y:  With the assistance of our 
valuation specialists we replicated management¶s impairment 
models and tested the mathematical accuracy. Further, we 
assessed the appropriateness of the methodology used and the 
consistent application thereof to the &*8s tested
E v aluation of technical parameters:  We independently derived 
a range of weighted average cost of capital W$&& and terminal 
growth rates, with the assistance of our valuation specialists, 
compared these to those calculated by the *roup and identified 
diႇerences in assumptions between the two calculations We 
challenged the *roup on such diႇerences and assessed the 
discount rates in relation to other key inputs, including whether  
the uncertainty with respect to future cashÀows is adeTuately 
considered in the WACC.
S ensitiv ity analysis:  8sing data analytics we performed 
sensitivity analysis around the key assumptions such as sales 
growth rate, operating margin, terminal growth rate, and WACC.  
We focused on those assumptions and &*8s that were most 
sensitive and judgmental.
Assessing  indicators of impairment:  We obtained management¶s 
assessment regarding indicators of impairment and challenged 
selected indicators based on our knowledge of internal and 
external factors. 
Assessing  disclosure:  We assessed the adequacy of the 
disclosure provided in 1ote  and 1ote  of the financial 
statements in relation to the relevant accounting standards.
Our results:  2ur audit procedures did not lead to any 
reservations concerning the valuation, presentation and 
disclosure of goodwill or indefinite life intangible assets

Consolidated Financial Statements of the Nestlé Group 2021
177
Completeness and valuation of uncertain tax positions
Risk
1estlp¶s global footprint results in significant comple[ity as its 
worldwide operations are subject to a diversity of international tax 
regulations. The cross-border activity and scrutiny of the transfer 
pricing applied to intercompany transactions vary by tax jurisdiction. 
In addition to the complexity of its tax environment, there is a level 
of unpredictability of ta[ authority¶s assessment of 1estlp¶s ta[ 
filings which inherently results in the application of management 
judgment in ascertaining reasonable estimates, which may lead to 
liabilities for uncertain tax positions being understated or overstated. 
7he identification and valuation of uncertain ta[ positions is a Ney 
audit matter because of the significant level of Mudgment and 
expertise required to interpret local country tax legislation and 
corresponding risNs  1estlp¶s policy on uncertain ta[ position can 
be found in 1otes  and  of the consolidated financial statements
Our audit response 2ur audit procedures included the following
P rocesses and controls:  We gained an understanding of the 
processes for identifying, measuring, and recogniz ing uncertain 
ta[ positions both centrally and locally and confirmed the 
existence of controls in the process.
H istorical comparisons and current contex t:  We obtained an 
understanding of the current macro-economic context that may 
aႇect uncertain ta[ positions which are recogni]ed or unrecogni]ed 
We validated our understanding of the current environment in 
relation to other key areas of the audit. Furthermore, our tax 
specialists, including transfer pricing specialists, considered 
impacts of changes in tax legislation or business operations in the 
identification measurement and recognition of uncertain ta[ 
positions We reviewed available information related to significant 
on-going tax audits. We reviewed the recogniz ed and unrecogniz ed 
positions in comparison to ta[ audits¶ outcomes when available 
and gained an understanding if there were any deviations in the 
outcome compared to amounts recogniz ed.
P ersonnel interv iew s:  Through interviews in the local markets 
and at Group level, we compared judgments made and 
information obtained for consistency.

Consolidated Financial Statements of the Nestlé Group 2021
178
M
ethodolog y implementation:  We assessed the application of 
the relevant standards, including but not limited to IFR IC 23, 
8ncertainty over ,ncome 7a[ 7reatments in the identification 
measurement and recognition of uncertain tax positions. With the 
assistance of our tax specialists, including transfer pricing 
specialists, we assessed the intercompany transfer pricing 
models for compliance with applicable laws, regulations and 
transfer pricing guidelines and evaluated management¶s Mudgment 
regarding ta[ risNs We reperformed management¶s calculations 
of uncertain tax positions.
K ey assumptions:  ,n reviewing the calculations we identified the 
Ney assumptions of identified risN provisions whether recogni]ed 
or unrecogniz ed, and tested the validity of these assumptions with 
our tax specialists. The key assumptions include, but are not 
limited to, number of years for which the risk occurs;  use of 
generally accepted benchmarks;  business models within the 
Group and availability of mutual agreement procedures in the 
case of disputes related to profit allocation across the *roup to 
reduce double taxation.  We focused our attention on those 
assumptions and inputs that were most sensitive and judgmental.
Our results:  2ur audit procedures did not lead to any reservations 
concerning the completeness and valuation of uncertain tax 
positions.
Other information in the annual report
7he %oard of Directors is responsible for the other information in the annual report 7he 
other information comprises all information included in the annual report, but does not 
include the consolidated financial statements the standalone financial statements the 
compensation report and our auditor¶s reports thereon
2ur opinion on the consolidated financial statements does not cover the other 
information in the annual report and we do not express any form of assurance 
conclusion thereon.
,n connection with our audit of the consolidated financial statements our responsibility is 
to read the other information in the annual report and, in doing so, consider whether the 
other information is materially inconsistent with the consolidated financial statements or 
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, 
based on the work we have performed, we conclude that there is a material misstatement 
of this other information, we are required to report that fact. We have nothing to report in 
this regard.

Consolidated Financial Statements of the Nestlé Group 2021
179
Responsibility of the Board of Directors for the consolidated financial statements
7he %oard of Directors is responsible for the preparation of the consolidated financial 
statements that give a true and fair view in accordance with IFR S and the provisions of 
6wiss law and for such internal control as the %oard of Directors determines is necessary 
to enable the preparation of consolidated financial statements that are free from material 
misstatement, whether due to fraud or error.
,n preparing the consolidated financial statements the %oard of Directors is responsible 
for assessing the *roup¶s ability to continue as a going concern disclosing as applicable 
matters related to going concern and using the going concern basis of accounting unless 
the %oard of Directors either intends to liTuidate the *roup or to cease operations or 
has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
2ur obMectives are to obtain reasonable assurance about whether the consolidated 
financial statements as a whole are free from material misstatement whether due to 
fraud or error and to issue an auditor¶s report that includes our opinion 5easonable 
assurance is a high level of assurance, but is not a guarantee that an audit conducted in 
accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a 
material misstatement when it exists. Misstatements can arise from fraud or error and 
are considered material if, individually or in the aggregate, they could reasonably be 
e[pected to inÀuence the economic decisions of users taNen on the basis of these 
consolidated financial statements
$ further description of our responsibilities for the audit of the consolidated financial 
statements is located at the website of EX PER Tsuisse: http://www.expertsuisse.ch/en/
auditreportforpubliccompanies 7his description forms part of our auditor¶s report
Report on other leg al and reg ulatory req uirements
,n accordance with article a para  item  &2 and the 6wiss $uditing 6tandard  
we confirm that an internal control system e[ists which has been designed for the 
preparation of consolidated financial statements according to the instructions of the 
%oard of Directors
We recommend that the consolidated financial statements submitted to you be approved
Ernst & Young Ltd
-eanne %oillet 
$ndrp 6chaub
Licensed audit expert
Licensed audit expert
$uditor in charge

Consolidated Financial Statements of the Nestlé Group 2021
180
Financial information – 5 year review
Financial information – 5 year review
In millions of CHF (except for data per share and employees)
2021
2021
2020 
Results 
Sales
87 088 
84 343 
Underlying Trading operating proﬁt (a)
15 119 
14 903 
as % of sales 
17.4%
17.7%
Trading operating proﬁt (a)
12 159 
14 233 
as % of sales 
14.0%
16.9%
Taxes
2 261 
3 365 
Proﬁt for the year attributable to shareholders of the parent (Net proﬁt)
16 905 
12 232 
as % of sales
19.4%
14.5%
Total amount of dividend
7 882 
(c)
7 681 
Depreciation of property, plant and equipment (d)
3 056 
3 127 
Balance sheet and Cash ﬂow statement
Current assets
39 257 
34 068 
Non-current assets
99 885 
89 960 
Total assets
139 142 
124 028 
Current liabilities
40 020 
39 722 
Non-current liabilities
45 395 
37 792 
Total equity
53 727 
46 514 
Net ﬁnancial debt (a)
32 917 
31 319 
Ratio of net ﬁnancial debt to total equity (gearing)
61.3%
67.3%
Operating cash ﬂow
13 864 
14 377 
as % of net ﬁnancial debt
42.1%
45.9%
Free cash ﬂow (a)
8 715 
10 245 
Capital additions (d)
12 977 
11 367 
as % of sales
14.9%
13.5%
Data per share
Weighted average number of shares outstanding (in millions of units)
 2 788 
 2 845 
Basic earnings per share 
6.06 
4.30 
Underlying earnings per share (a)
4.42 
4.21 
Dividend
2.80 
(c)
2.75 
Pay-out ratio based on basic earnings per share
46.2%
(c)
64.0%
Stock prices (high)
128.90 
112.62 
Stock prices (low)
95.00 
83.37 
Yield (b)
2.2/2.9 
(c)
2.4/3.3
Market capitalization
351 682
293 644
Number of employees (in thousands)
276
273
(a)  Certain ﬁnancial performance measures, that are not deﬁned by IFRS, are used by management to assess the ﬁnancial and 
operational performance of the Group. The “Alternative Performance Measures” document published under  
https://www.nestle.com/investors/publications provides the deﬁnition of these non-IFRS ﬁnancial performance measures.
(b)  Calculated on the basis of the dividend for the year concerned, which is paid in the following year, and on high/low stock prices.
(c)  As proposed by the Board of Directors of Nestlé S.A. 
(d)  Including right-of-use assets – leased since 2017.

Consolidated Financial Statements of the Nestlé Group 2021
181
Financial information – 5 year review 
2019 
2018 
2017
Results 
92 568 
91 439 
89 590 
Sales
16 260 
15 521 
14 771 
Underlying Trading operating proﬁt (a)
17.6%
17.0%
16.5%
as % of sales 
13 674 
13 789 
13 277 
Trading operating proﬁt (a)
14.8%
15.1%
14.8%
as % of sales 
3 159 
3 439 
2 773 
Taxes
12 609 
10 135 
7 156 
Proﬁt for the year attributable to shareholders of the parent (Net proﬁt)
13.6%
11.1%
8.0%
as % of sales
7 700 
7 230 
7 124 
Total amount of dividend
3 488 
3 604 
3 560 
Depreciation of property, plant and equipment (d)
Balance sheet and Cash ﬂow statement
35 663 
41 003 
31 884 
Current assets
92 277 
96 012 
101 326 
Non-current assets
127 940 
137 015 
133 210 
Total assets
41 615 
43 030 
38 189 
Current liabilities
33 463 
35 582 
32 792 
Non-current liabilities
52 862 
58 403 
62 229 
Total equity
27 138 
30 330 
21 369 
Net ﬁnancial debt (a)
51.3%
51.9%
34.3%
Ratio of net ﬁnancial debt to total equity (gearing)
15 850 
15 398 
14 199 
Operating cash ﬂow
58.4%
50.8%
66.4%
as % of net ﬁnancial debt
11 934 
10 765 
9 358 
Free cash ﬂow (a)
5 482 
14 711 
6 569 
Capital additions (d)
5.9%
16.1%
7.3%
as % of sales
Data per share
 2 929 
 3 014 
 3 092 
Weighted average number of shares outstanding (in millions of units)
4.30 
3.36 
2.31 
Basic earnings per share 
4.41 
4.02 
3.55 
Underlying earnings per share (a)
2.70 
2.45 
2.35 
Dividend
62.8%
72.9%
101.7%
Pay-out ratio based on basic earnings per share
113.20 
86.50 
86.40 
Stock prices (high)
79.86 
72.92 
71.45 
Stock prices (low)
2.4/3.4
2.8/3.4
2.7/3.3
Yield (b)
301 772
237 363
256 223
Market capitalization
291
308
323
Number of employees (in thousands)

Consolidated Financial Statements of the Nestlé Group 2021
182

155th Financial Statements
of Nestlé S.A.
155th Financial Statements of Nestlé S.A.
183

155th Financial Statements of Nestlé S.A.
184
Income statement for the year ended
December 31, 2021
Balance sheet as at December 31, 2021
Notes to the annual accounts
1.  Accounting policies
2.  Income from Group companies
3.  Proﬁt on disposal and revaluation
of assets
4.  Financial income
5.  Financial expenses
6.  Taxes
7.  Cash and cash equivalents
8.  Other current receivables
9.  Financial assets
10. Shareholdings
11. Interest-bearing liabilities
12. Other current liabilities
13. Provisions
14. Share capital
15. Changes in equity
16. Treasury shares
17. Contingencies
18. Performance Share Units, Restricted 
Stock Units, Phantom Shares and 
Shares granted
19. Full-time equivalents
20. Shares
21. Events after the balance sheet date
Proposed appropriation of proﬁt
Report of the statutory auditor on the 
ﬁnancial statements
185
186
187
187 
188 
189 
190 
191 
192 
193
194 
195
196
198

155th Financial Statements of Nestlé S.A.
185
Income statement
Income statement
for the year ended December 31, 2021
for the year ended December 31, 2021
In millions of CHF
Notes
2021
2021
2020
Income from Group companies
2
 11 857 
 2 096 
Proﬁt on disposal and revaluation of assets
3
 10 795 
 3 070 
Financial income
4
180 
132 
Total income
 22 832 
 5 298 
Personnel expenses 
(105)
(108)
Other expenses 
(29)
(53)
Write-downs and amortization of shareholdings and loans
(538)
(324)
Financial expenses
5
(8)
(241)
Taxes
6
268 
(69)
Total expenses
(412)
(795)
Proﬁt for the year
 22 420 
 4 503

155th Financial Statements of Nestlé S.A.
186
Balance sheet
Balance sheet
as at December 31, 2021
as at December 31, 2021
before appropriations
In millions of CHF
Notes
2021
2021
2020
Assets
Current assets
Cash and cash equivalents
7
177 
330 
Other current receivables
8
11 862 
354 
Prepayments and accrued income
25 
109 
Total current assets
12 064 
793 
Non-current assets
Financial assets 
9
12 480 
14 455 
Shareholdings 
10
13 266 
13 349 
Property, plant and equipment
1 
1 
Total non-current assets
25 747 
27 805 
Total assets
37 811 
28 598 
Liabilities 
Current liabilities
Interest-bearing liabilities 
11
313 
1 149 
Other current liabilities 
12
5 893 
4 089 
Accruals and deferred income
284 
92 
Provisions 
13
303 
215 
Total current liabilities
6 793 
5 545 
Non-current liabilities
Interest-bearing liabilities 
11
1 502 
1 503 
Provisions 
13
27 
500 
Total non-current liabilities
1 529 
2 003 
Total liabilities
8 322 
7 548 
Equity
Share capital
14 /15
282 
288 
Legal retained earnings
– General legal reserve
15
1 953 
1 947 
Voluntary retained earnings
– Special reserve
15
2 859 
2 859 
– Proﬁt brought forward
15
8 015 
17 971 
– Proﬁt for the year
15
22 420 
4 503 
Treasury shares
15/16
(6 040)
(6 518)
Total equity
29 489 
21 050 
Total liabilities and equity
37 811 
28 598

155th Financial Statements of Nestlé S.A.
187
Notes to the annual accounts
Notes to the annual accounts
1. Accounting policies
General
Nestlé S.A. (the Company) is the ultimate holding company 
of the Nestlé Group, domiciled in Cham and Vevey, which 
comprises subsidiaries, associated companies and joint 
ventures throughout the world. 
The accounts are prepared in accordance with accounting 
principles required by Swiss law (32nd title of the Swiss 
Code of Obligations). They are prepared under the historical 
cost convention and on an accrual basis. Where not 
prescribed by law, the signiﬁcant accounting and valuation 
principles applied are described below.
Foreign currency translation
Transactions in foreign currencies are recorded at the rate of 
exchange at the date of the transaction or, if hedged 
forward, at the rate of exchange under the related forward 
contract. Non-monetary assets and liabilities are carried at 
historical rates. Monetary assets and liabilities in foreign 
currencies are translated at year-end rates. Any resulting 
exchange diﬀerences are included in the respective income 
statement captions depending upon the nature of the 
underlying transactions. The aggregate unrealized exchange 
diﬀerence is calculated by reference to original transaction 
date exchange rates and includes hedging transactions. 
Where this gives rise to a net loss, it is charged to the 
income statement whilst a net gain is deferred.
Hedging
The Company uses forward foreign exchange contracts, 
options, ﬁnancial futures and currency swaps to hedge 
foreign currency ﬂows and positions. Unrealized foreign 
exchange diﬀerences on hedging instruments are matched 
and accounted for with those on the underlying asset or 
liability. Long-term loans, in foreign currencies, used to 
ﬁnance investments in shareholdings are generally not 
hedged.
The Company also uses interest rate swaps to manage 
interest rate risk. The swaps are accounted for at fair value at 
each balance sheet date and changes in the market price are 
recorded in the income statement.
The positive fair values of forward exchange contracts and 
interest rate swaps are included in prepayments and accrued 
income. The negative fair values of forward exchange 
contracts and interest rate swaps are included in accruals 
and deferred income.
Income statement
In accordance with Swiss law dividends are treated as an 
appropriation of proﬁt in the year in which they are ratiﬁed at 
the Annual General Meeting rather than as an appropriation 
of proﬁt in the year to which they relate.
Taxes
This caption includes taxes on proﬁt, capital and withholding 
taxes on transfers from Group companies.
Financial assets and shareholdings
The carrying value of ﬁnancial assets and shareholdings 
comprises the cost of investment, excluding the incidental 
costs of acquisition, less any write-downs.
Financial assets and shareholdings are written down on  
a conservative basis, taking into account the proﬁtability of 
the company concerned.
Property, plant and equipment
The Company owns land and buildings which have been 
depreciated in the past. Oﬃce furniture and equipment are 
fully depreciated on acquisition.
Provisions
Provisions include present obligations as well as 
contingencies. Provisions for Swiss taxes are made on the 
basis of the Company’s taxable capital, reserves and proﬁt 
for the year. A general provision is maintained to cover 
possible foreign tax liabilities.

155th Financial Statements of Nestlé S.A.
188
2. Income from Group companies
This represents dividends and other income from Group companies. In 2021, a royalties 
true-up for prior years for an amount of CHF 565 million is included.
3. Proﬁt on disposal and revaluation of assets
In 2021, a net gain of CHF 9201 million from the sale of L’Oréal shares, CHF 1051 million 
from the revaluation of participations and CHF 519 million (2020: CHF 2616 million) from 
the sale of participations to Société des Produits Nestlé S.A. are included.
4. Financial income
In millions of CHF
2021
2021
2020
Income on loans to Group companies
125 
21 
Other ﬁnancial income
55 
111 
180 
132 
5. Financial expenses
In millions of CHF
2021
2021
2020
Expenses related to loans from Group companies
 — 
(1)
Other ﬁnancial expenses
(8)
(240)
(8)
(241)
6. Taxes
In millions of CHF
2021
2021
2020
Direct taxes
(154)
(47)
Prior years adjustments
480 
61 
Withholding taxes on income from foreign sources
(58)
(83)
268 
(69)

155th Financial Statements of Nestlé S.A.
189
7. Cash and cash equivalents
Cash and cash equivalents include deposits with maturities of less than three months.
8. Other current receivables
In millions of CHF
2021
2021
2020
Amounts owed by Group companies (current accounts)
11 798 
211 
Other receivables
64 
143 
11 862 
354 
9. Financial assets
In millions of CHF
2021
2021
2020
Loans to Group companies
12 403 
14 427 
Other investments
77 
28 
12 480 
14 455 
10. Shareholdings 
In millions of CHF
2021
2021
2020
At January 1
13 349 
20 775 
Net increase/(decrease)
(1 047)
(7 317)
Revaluation/(write-down)
964 
(109)
At December 31
13 266 
13 349 
A list of direct and signiﬁcant indirect Group companies held by Nestlé S.A. with the 
percentage of the capital controlled is included in the Consolidated Financial Statements 
of the Nestlé Group. In 2021, Nestlé S.A. has sold or contributed shareholdings with a net 
book value of CHF 1864 million to its subsidiary Société des Produits Nestlé S.A. (also see 
Note 3).

155th Financial Statements of Nestlé S.A.
190
11. Interest-bearing liabilities
Current interest-bearing liabilities are amounts owed to Group companies.
Non-current interest-bearing liabilities concern two bonds issued by Nestlé S.A. in 2018.
In millions of CHF
Issuer
Face value
in millions
Coupon
Eﬀective 
interest 
rate
Year of
issue/ 
maturity
2021
2021
2020
Nestlé S.A., Switzerland
CHF
600
0.75%
0.69%
2018–2028
602
603
CHF
900
0.25%
0.26%
2018–2024
900
900
Total carrying amount
1 502 
 1 503 
12. Other current liabilities
In millions of CHF
2021
2021
2020
Amounts owed to Group companies
5 677 
3 798 
Other liabilities
216 
291 
5 893 
4 089 
13. Provisions
In millions of CHF
2021
2021
2020
Uninsured 
risks
Swiss and 
foreign 
taxes 
Other
Total
Total
At January 1
475
475
112
112
128
128
715 
932 
Provisions made in the period
—
157
157
3
 160 
69 
Amounts used
—
(33)
(33)
(16)
(16)
(49)
(252)
Unused amounts reversed
(475)
(475)
(8)
(8)
(13)
(13)
(496)
(34)
At December 31
—
228
228
102
102
330 
715 
of which expected to be settled within 12 months
303 
215

155th Financial Statements of Nestlé S.A.
191
14. Share capital
2021
2021
2020
Number of registered shares of nominal value CHF 0.10 each 
 2 815 000 000 
 2 881 000 000 
In millions of CHF
282 
288 
According to article 5 of the Company’s Articles of Association, no person or entity shall 
be registered with voting rights for more than 5% of the share capital as recorded in the 
commercial register. This limitation on registration also applies to persons who hold some or 
all of their shares through nominees pursuant to this article. In addition, article 11 provides 
that no person may exercise, directly or indirectly, voting rights, with respect to own 
shares or shares represented by proxy, in excess of 5% of the share capital as recorded  
in the commercial register. The Company was not aware of any shareholder holding, 
directly or indirectly, 5% or more of the share capital.
15. Changes in equity
In millions of CHF
Share 
capital
General 
legal 
reserve 
Special 
reserve
Retained 
earnings
Treasury
shares
Total
At January 1, 2021
288
288
1 947
1 947
2 859
2 859
22 474
22 474
(6 518)
(6 518)
21 050 
Cancellation of 66 000 000 shares (share buyback program)
(6)
(6)
6
—
(6 779)
(6 779)
6 779
6 779
 — 
Proﬁt for the year
—
—
—
22 420
22 420
—
 22 420 
Dividend for 2020
—
—
—
(7 681)
(7 681)
—
(7 681)
Movement of treasury shares
—
—
—
—
(6 301)
(6 301)
(6 301)
At December 31, 2021
282
282
1 953
1 953
2 859
2 859
30 435
30 435
(6 040)
(6 040)
29 489

155th Financial Statements of Nestlé S.A.
192
16. Treasury shares
In millions of CHF
2021
2021
2020
Number
Amount
Number
Amount
Share buyback programs
50 936 859
5 624 
59 694 659
6 137 
Long-term incentive plans
4 470 842
416 
4 849 627
381 
55 407 701 
6 040 
64 544 286 
6 518 
The share capital has been reduced by 66 000 000 shares from CHF 288 million to  
CHF 282 million through the cancellation of shares purchased as part of the share 
buyback program. The purchase value of those cancelled shares amounts to  
CHF 6779 million.
During the year, 57 242 200 shares were purchased as part of the share buyback 
program for CHF 6266 million.
The Company held 4 470 842 shares to cover long-term incentive plans. During the 
year, 2 282 785 shares were delivered as part of the Nestlé Group remuneration plans for  
a total value of CHF 180 million. All treasury shares are valued at acquisition cost. 
The total of own shares of 55 407 701 held by Nestlé S.A. at December 31, 2021, 
represents 2.0% of the Nestlé S.A. share capital (64 544 286 own shares held at 
December 31, 2020, by Nestlé S.A. representing 2.2% of the Nestlé S.A. share capital).
17. Contingencies
At December 31, 2021, the total of the guarantees mainly for credit facilities granted to Group 
companies and commercial paper programs, together with the buyback agreements relating to 
notes issued, amounted to a maximum of CHF 92 702 million (2020: CHF 83 768 million).

155th Financial Statements of Nestlé S.A.
193
18. Performance Share Units, Restricted Stock Units, Phantom 
Shares and Shares granted
In millions of CHF
2021
2021
2020
Number
Amount
Number
Amount
Performance Share Units, Restricted Stock Units and Phantom 
Shares granted to Nestlé S.A. employees (a)
187 570
18 
168 378
18 
Share plan for short-term bonus Executive Board (b)
51 516
5 
66 911
7 
Share plan for Board members (c)
— 
6 
— 
5 
239 086 
29 
235 289 
30 
(a)  The Performance Shares and Restricted Stock Units are valued at the average closing price of the ﬁrst ten trading days, 
after the publication of the annual results (for the Grant in March) and of the last ten trading days of September (for the 
Grant in October), corresponding to CHF 97.20 (grant in March) and CHF 113.27 (grant in October). Includes 146 608 
Performance Share Units granted to Executive Board (2020: 127 583). The Phantom Shares are valued at CHF 159.82 per 
Unit in 2021. 
(b)  Nestlé S.A. shares received as part of the short-term bonus are valued at the average closing price of the last ten trading 
days of January. 
(c)  The Board is paid in arrears (25% in October 2021 and 75% in April 2022). The Nestlé S.A. shares equivalent to 50% of the 
annual remuneration will be delivered at the end of the Board year in April 2022. They will be valued at the closing price of 
the share on the SIX Swiss Exchange on the ex-dividend date 2022. The actual number of shares delivered will be 
published in the Nestlé S.A. 2022 Financial Statements. In 2021, 51 331 shares have been delivered to the Board. 
19. Full-time equivalents
For Nestlé S.A., the annual average number of full-time equivalents for the reporting year, as 
well as the previous year, did not exceed 250.

155th Financial Statements of Nestlé S.A.
194
20. Shares
Shares ownership of the non-executive members of the Board of Directors  
and closely related parties
2021
2021
2020
Number of 
shares 
 held (a)
Number of 
shares 
held (a)
Paul Bulcke, Chairman
 1 449 177 
 1 421 941 
Henri de Castries, Vice Chairman, Lead Independent Director
 31 126 
 27 698 
Renato Fassbind
 33 439 
 30 480 
Ann M. Veneman
 22 804 
 21 160 
Eva Cheng
 7 513 
 5 399 
Patrick Aebischer 
 14 108 
 8 814 
Kasper B. Rorsted
 4 675 
3 360 
Pablo Isla
 6 690 
3 731 
Kimberly A. Ross
 6 344 
4 559 
Dick Boer
 4 628 
2 984 
Dinesh Paliwal
 12 280 
1 484 
Hanne Jimenez de Mora
 3 835 
 2 520 
Lindiwe M. Sibanda
 — 
 — 
Members who retired from the Board during the year
— 
 6 214 
Total as at December 31
1 596 619 
 1 540 344 
(a)  Including shares subject to a three-year blocking period.
There are no stock options held by any non-executive member of the Board of Directors 
and closely related parties.

155th Financial Statements of Nestlé S.A.
195
Shares ownership of the members of the Executive Board and closely related parties
2021
2021
2020
Number of
shares 
held (a)
Number of
shares 
held (a)
Ulf Mark Schneider, CEO
 465 313 
 404 616 
Laurent Freixe
 58 925 
 73 438 
Chris Johnson
 164 322 
 136 798 
Marco Settembri
 127 258 
94 750 
François-Xavier Roger
 90 000 
72 138 
Magdi Batato 
 51 949 
41 508 
Stefan Palzer
 22 061 
9 883 
Béatrice Guillaume-Grabisch
 37 519 
23 211 
Leanne Geale
 4 015 
— 
Bernard Meunier
 7 785 
— 
Grégory Behar
 30 852 
21 247 
Sanjay Bahadur
 65 491 
51 846 
David Rennie
 5 401 
— 
Members who retired from the Executive Board during the year
— 
253 428 
Total as at December 31
1 130 891 
 1 182 863 
(a)  Including shares subject to a three-year blocking period.
There are no stock options held by any member of the Executive Board and closely related 
parties.
For the detailed disclosures regarding the remunerations of the Board of Directors and the 
Executive Board that are required by Swiss law, refer to the Compensation report of 
Nestlé S.A. with the audited sections highlighted with a blue bar.
21. Events after the balance sheet date
There are no subsequent events which either warrant a modiﬁcation of the value of the 
assets and liabilities or any additional disclosure.
20. Shares

155th Financial Statements of Nestlé S.A.
196
Proposed appropriation of proﬁt
Proposed appropriation of proﬁt
In CHF
2021
2021
2020
Retained earnings
Proﬁt brought forward
14 552 006 210
17 875 863 039
Dividends on own shares not distributed (a)
241 804 173
95 416 026 
Cancellation of 66 000 000 shares (share buyback program)
(6 778 698 422)
— 
Proﬁt for the year
22 419 903 013
4 503 477 145
30 435 014 974
22 474 756 210
We propose the following appropriation:
Dividend for 2021, CHF 2.80 per share 
on 2 815 000 000 shares (b)
(2020: CHF 2.75 on 2 881 000 000 shares)
7 882 000 000 
7 922 750 000 
7 882 000 000
7 922 750 000
Proﬁt to be carried forward
22 553 014 974
14 552 006 210
(a)  The amount of CHF 7 922 750 000 proposed to be distributed as dividend for 2020 was reduced by CHF 241 804 173 
due to 87 928 790 own shares held by the Nestlé Group at the dividend payment date. 
(b)  Depending on the number of shares issued as of the last trading day with entitlement to receive the dividend  
(April 8, 2022). No dividend is paid on own shares held by the Nestlé Group.
Provided that the proposal of the Board of Directors is approved by the Annual General 
Meeting, the gross dividend will amount to CHF 2.80 per share, representing a net 
amount of CHF 1.82 per share after payment of the Swiss withholding tax of 35%. The last 
trading day with entitlement to receive the dividend is April 8, 2022. The shares will be 
traded ex-dividend as of April 11, 2022. The net dividend will be payable as from 
April 13, 2022.
The Board of Directors
Cham and Vevey, February 16, 2022

155th Financial Statements of Nestlé S.A.
197

155th Financial Statements of Nestlé S.A.
198
To the General Meeting of  
Lausanne, 16 February 2022
Nestlé S.A., Cham & Vevey
Report of the statutory auditor on the financial statements
$s statutory auditor we have audited the financial statements of 1estlp 6$ which 
comprise the income statement balance sheet and notes pages  to  as at 
31 December 2021 and for the year then ended.
Board of Directors’ responsibility
7he %oard of Directors is responsible for the preparation of the financial statements in 
accordance with the reTuirements of 6wiss law and the &ompany¶s $rticles of 
Association. This responsibility includes designing, implementing and maintaining an 
internal control system relevant to the preparation of financial statements that are free 
from material misstatement whether due to fraud or error 7he %oard of Directors is 
further responsible for selecting and applying appropriate accounting policies and 
making accounting estimates that are reasonable in the circumstances. 
Auditor’s responsibility
2ur responsibility is to e[press an opinion on these financial statements based on our 
audit. We conducted our audit in accordance with Swiss law and Swiss Auditing 
Standards. Those standards require that we plan and perform the audit to obtain 
reasonable assurance whether the financial statements are free from material 
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 
disclosures in the financial statements 7he procedures selected depend on the auditor¶s 
Mudgment including the assessment of the risNs of material misstatement of the financial 
statements, whether due to fraud or error. In making those risk assessments, the auditor 
considers the internal control system relevant to the entity¶s preparation of the financial 
statements in order to design audit procedures that are appropriate in the circumstances, 
but not for the purpose of e[pressing an opinion on the eႇectiveness of the entity¶s 
internal control system. An audit also includes evaluating the appropriateness of the 
accounting policies used and the reasonableness of accounting estimates made, as well 
as evaluating the overall presentation of the financial statements We believe that the 
audit evidence we have obtained is sufficient and appropriate to provide a basis for our 
audit opinion.
Ernst & Young Ltd
Avenue de la Gare 39a
32 %o[
CH-1002 Lausanne
Phone: 
+41 58 286 51 11
Fax: 
+41 58 286 51 01
www.ey.com/ch

155th Financial Statements of Nestlé S.A.
199
Opinion
,n our opinion the financial statements for the year ended  December  comply 
with 6wiss law and the &ompany¶s $rticles of $ssociation
Report on k ey audit matters based on the circular 1 / 2 0 1 5  of the F ederal Audit 
Ov ersig ht Authority
K ey audit matters are those matters that, in our professional judgment, were of most 
significance in our audit of the financial statements of the current period We have 
determined that there are no key audit matters to communicate in our report.
Report on other leg al req uirements
We confirm that we meet the legal reTuirements on licensing according to the $uditor 
2versight $ct $2$ and independence article  &2 and article  $2$ and that 
there are no circumstances incompatible with our independence.
,n accordance with article a para  item  &2 and 6wiss $uditing 6tandard  we 
confirm that an internal control system e[ists which has been designed for the 
preparation of financial statements according to the instructions of the %oard of 
Directors.
We further confirm that the proposed appropriation of available earnings complies with 
6wiss law and the &ompany¶s $rticles of $ssociation We recommend that the financial 
statements submitted to you be approved.
Ernst & Young Ltd
-eanne %oillet 
$ndrp 6chaub
Licensed audit expert
Licensed audit expert
$uditor in charge

155th Financial Statements of Nestlé S.A.
200
Notes

© 2022, Nestlé S.A., Cham and Vevey 
(Switzerland)
Concept
Nestlé S.A., Group Governance and 
Group Accounting and Reporting
Photography
Matthew Joseph
Prepress
Images3 S.A. (Switzerland)