Nestle India Full Year Earnings Call
The Future
Ready Plan
Benefits to Employees
✓ Security: fully funded plan
managed by financial experts
✓ Portability: fully portable
benefits irrespective of age and
service
✓ Flexibility: choice of annuity
products basis financial needs
Earlier Pension
Plan
✓ Defined
Benefit
Pension Plan
was unfunded
No portability
✓ Pension
eligibility only at
retirement
'Future Ready Plan'
Aligned to market
practice and is fully
funded
✓ A combination of
Frozen Defined
Benefits for past
services and
Defined
Contribution for
future services
Benefits to Investors
✓ Embedded risk of a Defined
Benefit Plan mitigated
bringing future cost certainty
✓ Favorable impact in the
future
Financial Impact
✓ Approximate Two thirds of the
Defined Benefit Pension Liability
covered
✓ One-time, Exceptional cost of
INR 2.4 Billion [EPS lower by ~
INR 18.]
✓ Investment of INR 13.7 Billion
covering the obligation under
the plan
Nestle India Full Year Earnings Call, 17th Feb 2022
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