Danone Sa · EURONEXT:BN
Danone Sa — Investor Seminar 2015 - Evian
43 slides from Danone Sa's conference presentation, Nov 17, 2015
Slide 1: Early Life Nutrition: Making a sustainable impact during first 1000 days of life
- l EARLY LIFE NUTRITION “Making a sustainable impact during first 1000 days of life” Félix MARTIN GARCIA Bruno CHEVOT
Slide 2: Messages for today
~ MESSAGES FOR TODAY 1. Business has emerged stronger from Fonterra issue 2. ELN: A key platform within Danone 2020 project 3. China: Consolidating a sustainable fast growing business © NVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 3: 1. Business has emerged stronger from Fonterra issue
= 1. Business has emerged stianger | from rome issue pos Ty
Slide 4: Strong quarter turnover growth
© STRONG QUARTER TURNOVER GROWTH LFL Sales growth +28.1% 417.1% +19.2% +13.5% 411.6% 411.1% 410.9% = 2013 Q4 2013 Q1 2014 I ables qT q L T Q1 2013! Q2 2013! | i 193 2014 ! aa 2014 1. a1 2015 | Q2 2015 'Q3 2015 | 86% 99% 77% © NVESTOR SEMINAR 20 EVIAN DANONE
Slide 5: Growth driven by global milk brands
3 GROWTH DRIVEN BY GLOBAL MILK BRANDS LFL Sales growth +5.6% = a Local Food brands CowS Gate, Regional Milk brands 8e@ Aptamil. Global milk brands l I FY 2013 FY 2014 9M 2015 © NVESTOR SEMINAR 20 EVIAN DANONE
Slide 6: Growth driven by increasing share of milks demand
© GROWTH DRIVEN BY INCREASING SHARE OF MILKS DEMAND —_ ——“——CTFF— OO 23% DNELN 21% 20% Comp 1 1% 10% comp 3 6% 7% Comp 2 I I T I T I I ] Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 ) NVESTOR SEMINAR 2015-EVIAN NONE
Slide 7: Americas: an old white spot, a new growth engine
© AMERICAS: AN OLD WHITE SPOT, A NEW GROWTH ENGINE S Index Sales (100) since acquisition 2013 x1.7 = | | FY 2013 9M 2015 Index Sales 2012 (100) x2 —_ 4 FY 2012 9M 2015 NUTRICIA WR NutriMom yy PROGRAM a2 =, ge. <4 2 7 = i | X2.4 -_ FY 2012 9M 2015 Index Sales 2012 (100) DANONE
Slide 8: 2. ELN: a solid platform within Danone 2020 project
Slide 9: Solid socioeconomic market trends driving high single digit growth prospects
© SOLID SOCIOECONOMIC MARKET TRENDS DRIVING HIGH SD GROWTH PROSPECTS NVESTOR SEMINAR 2015 - EVIAN la Middle-class growth In Billion people 3.2 DANONE
Slide 10: Global health targets for first 1000 days
Stunting - 40% Anaemia - 50% Low birth weight - 30% Childhood overweight = Breastfeeding up to 50% Wasting Reduce
Slide 11: Growing influence of on-line interaction vs. mass media messaging
© GROWING INFLUENCE OF ON-LINE INTERACTION VS. MASS MEDIA MESSAGING 7 Parents spend more time online Screen minutes per day France I I a Ux a USA Sa Chins i a a MTV MM Laptop/PC Ml Smartphone Ml Tablet ( Online recommendation increasingly trusted How much you trust online reco from.? 8 90% 9 fo = 64
Slide 12: Increasing importance of developing world
= INCREASING IMPORTANCE OF DEVELOPING WORLD 2014 IMF market value 2018 =Europe& USA =AsiaPac = RoW =Europe& USA =AsiaPac = RoW Source: Danone ELN, AC Nielsen, Euromonitor rg) NVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 13: 2.2 Our key priorities moving forward
Slide 14: Facilitate 1,000 days mobilization within Danone 2020 program
© FACILITATE 1,000 DAYS MOBILIZATION WITHIN DANONE 2020 PROGRAM ACTION 10m DANONE 2020* VF © Health Agenda Business Agenda ia aan ca C : Guidelines for Specific Diet Decrease Generic Food Actual To be - Breastfeeding First S \ reastfeeding Firs otoem 2 Y - IMF only alternative Ili Specific Nutrition
Slide 15: Safe and reliable brand offer, with priority to accretive global milks
© SAFE AND RELIABLE BRAND OFFER, WITH PRIORITY TO ACCRETIVE GLOBAL MILKS DANONE NUTRICIA Early Life Nutrition st [ \ Global Milk Brands Regional Milk Brands Local Food Brands -——_ -—+—, f : a = 208 mo 008 : TF cece edi a Nutrilon Aptamil. Dues) (weft) a
Slide 16: Mum diet and extra care offerings
Mum diet Mum diet Extra care Mum diet
Slide 17: Continue pioneering digital engagement and shopping
© CONTINUE PIONEERING DIGITAL ENGAGEMENT AND SHOPPING Digital Engagement E-commerce Evolution = o Allergy Test + Educational Program Preparing for birth support Karikare Platform User Generated Branded e-shop linked 9 months &me app . with 1000 days app Pregnancy journey Content & community Source:
Slide 18: Prioritize resources allocation to China
PRIORITIZE RESOURCES ALLOCATION TO CHINA DANONE
Slide 19: Business combination
Bsousiness 920; Combination
Slide 20: Combination of size and potential
= COMBINATION OF SIZE AND POTENTIAL High growth prospects in Greater China ) Favorable Socioeconomic trends ($) ii © = Increasing middle class Growing urbanization IMF Market growth TTL 2014A 2015E 2017E 2017E 2018E 2019E A / Two child policy in place ‘Source: Danone ELN, Euromonitor and AC Nielson
Slide 21: Combination of big and small cities
“= COMBINATION OF BIG AND SMALL CITIES IMPORTANCE Growing Urbanization +40 338 298 __---- 2015 2020 MM small cities (Tier 4 and below) MMM Big cities (Tier 1-3) Source: Danone ELN, Euromonitor and AC Nielson Danone Universe 2 Speeds Urban Households % of Households % of Urban 2020 Consumption Growth
Slide 22: Combination of global and local brands demand
= COMBINATION OF GLOBAL AND LOCAL BRANDS DEMAND Share of IMF Demand Global Brands ¢ roa
Slide 23: Combination of offline and online channels demand
= COMBINATION OF OFFLINE AND ONLINE CHANNELS DEMAND Share of IMF Demand Offline Channels Online Channels
Slide 24: Combination of affordable and premium offers
= COMBINATION OF AFFORDABLE & PREMIUM OFFERS Share of IMF Demand YTD Aug 14 1) High Premium Price ‘Source: Nielsen & Smart path, Value SI rg) INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 25: Combination of consumer touch points
=) COMBINATION OF CONSUMER TOUCH POINTS “1 to 1vs 1 to Many” Relatives & Friends Reco Po 76 Online WOM FP 57 Tvc 44 In store activation 32 HCP rec 16 Concentration vs Dispersion Extreme concentration in MT Number of shops % Markets More dispersion in MBS Number of shops % Markets Source: China U&A S
Slide 26: 3.2 Our key priorities
Slide 27: Moving backward: anticipating trends and adapting to the new normal
/ MOVING BACKWARD: ANTICIPATING TRENDS & ADAPTING TO THE NEW NORMAL Alibaba NUTRICIA | | NUTRICIA NUTRICIA co ee Category Captain launch launch MBS. launch Platinum af FB TMAwcorn sv 3 £ = : € a £ = oO Zz ia 2 ft NUTRICIA NUTRICIA NUTRICIA NUTRICIA NUTRICIA CBU Digital Unit China CBU MBS Unit utes s
Slide 28: Moving forward: combination of two brands and two business models
= MOVING FORWARD: COMBINATION OF TWO BRANDS & TWO BUSINESS MODELS
Slide 29: 3.3 Nutricia China
Slide 30: Strong brand equity well ahead of market average
~» STRONG BRAND EQUITY WELL AHEAD MARKET AVERAGE na 0@ NUTRICIA _ ee Aptamil. Nutrilon Reliable Country Origin po Reliable Country Origin | 28% EEE) 28% Big WOM Online <==) VW 'inw§$§———=s | | 26% i) 26% Safe& Trusted Safe & Trusted A | EE) 24% EE) 33% Po Leading science | pd i 26% ME) Aptamil EEE N
Slide 31: Nutricia China: brand equity driving strong demand
) NUTRICIA CHINA: BRAND EQUITY DRIVING STRONG DEMAND Share of Demand % NUTRICIA —eS— >13% ~12% o—————"® Nutricia o-—.__@ e- aaa eee “09% e @ Comp 2 ~6% @) 2 2012 2013 2014 MAT 2015 © DANONE
Slide 32: Demand being fulfilled through Nutricia core channels
“3 DEMAND BEING FULFILLED THROUGH —nutricia 3 CORE CHANNELS Demand by Channel (%) Td = OY ore MBS C2C 2012 2013 2014 MAT 2015 rg) INVESTOR “SEMINAR 2015 - EVIAN DANONE
Slide 33: Amplify brand equity through continuous digital focus
© AMPLIFY BRANDS EQUITY THROUGH —vutricia CONTINUOUS DIGITAL FOCUS ns 08 Aptamil Cost efficient Paid Media Reach ) Media combination that maximize the reach of NUTRICIA brand audience BROAD AUDIENCE MEDIA CORE AUDIENCE HIGH AFFINITY MEDIA. Om GX. ory BBV SEARCH SOCIAL & © LOCATION- OTV MEDIA VIAN DA
Slide 34: Mum & Baby Store
Mum & Baby Store Mum diet Mum diet Mum diet
Slide 35: Significant investment in core factories to fulfill demand trends
SIGNIFICANT INVESTMENT IN CORE 4 = xutricia FACTORIES TO FULFILL DEMAND TRENDS NVESTOR SEMINAR 20 EVIAN DANONE
Slide 36: A glocal organization to manage demand trends
= AGLOCAL ORGANIZATION TO MANAGE surtricia DEMAND TRENDS GLOBAL CHINA SUPPORT UNIT
Slide 37: Building a No.1 glocal champion
4 BUILDING A NO.1 GLOCAL CHAMPION
Slide 38: 3.4 Dumex China
Slide 39: Dumex brand equity fundamentals are still strong
DUMEX BRAND EQUITY FUNDAMENTALS ARE STILL STRONG = Brand awareness Baby nutrition expert 9.3 Big, well-known brand 8.5 Formula suitable for Chinese babies 7.9 Providing good parenting supports 7.2 ‘Source: Brand Health Tracking, Q1 2015; “BHT data wave NVESTOR SEMINAR 20 EVIAN DANONE
Slide 40: Distribution coverage
Distribution Coverage WTD MT + MBS WTD MT + MBS Mum diet Mum diet
Slide 41: Remaining demand mainly skewed towards MT
© REMAINING DEMAND MAINLY SKEWED TOWARDS MT Market Split Dumex Split Mum & Baby Stores Mum & Baby Stores Source: Nielsen & Smart path, Value share YTD Aug 15, NVESTOR SEMINAR 20 EVIAN DANONE
Slide 42: Combination
COMBINATION Tier 4 and below cities Share X4
Slide 43: Thank you
5 EARLY LIFE NUTRITION “Making a sustainable impact during first 1OOO days of life” 1. Business has emerged stronger from Fonterra issue 2. ELN: A key platform within Danone 2020 project 3. China: Consolidating a sustainable fast growing business THANK YOU 9 AS DANONE