Slide 1: FY 2024 Presentation
FY 2024 PRESENTATION February 26, 2025 Cp DANONE
Slide 2: Slide 2
Slide 3: Closing the first 3 years of Renew Danone
CLOSING THE FIRST 3 YEARS OF RENEW DANONE CONSISTENTLY DELIVERING ON OUR GUIDANCE Volume/mix Recurring operating margin Recurring EPS 13.0% €3.63 +3.0% 12.6% €3.54 12.2% €3.43 -0.8% -0.4% | Fy 22 Fy 23 FY 24 Fy 22 Fy 23 FY 24 Fy 22 Fy 23 FY 24 Free Cash Flow ROIC 10.0% €3.0 bn €2.6 bn 9.5% €2.1bn |
Slide 4: Progressively rebalancing our growth model
Progressively rebalancing our growth model By boosting our Winners, driving our Core, and addressing our Underperformers
Slide 5: A recognized Health through Food company
A recognized Health through Food company Away-from-home, Impulse & on-the-go, Pharmacies, Hospitals and Homecare channels >50% Gut health, Protein, Growing 2x to 3x faster Immunity, Hydration Volume L3M Value L3M
Slide 6: Consistently investing into future growth
CONSISTENTLY INVESTING INTO FUTURE GROWTH REBUILDING DISTINCTIVE CAPABILITIES FOR FUTURE VALUE CREATION CONTINUED REINVESTMENTS >100 bps 2022-2023-2024 average p.a. 1.Casefill rate
Slide 7: Progressively assuming category leadership
PROGRESSIVELY ASSUMING CATEGORY LEADERSHIP TURNING SCIENCE INTO CONSUMER-RELEVANT INNOVATION Advancing Health through Food Launching breakthrough patents and innovations “@ DANONE NORTH AMERICA Providing nutrition you need to support your Gea Further opportunities to leverage superior science into s
Slide 8: Driving a winning culture
DRIVING A WINNING CULTURE FURTHER CONSOLIDATING A RENEWED DANONE CULTURE PLAY TO WIN PUSHING LIMITS, ACHIEVING MORE FUTURE AND OUTWARD LOOKING
Slide 9: (BAD FL eER ;
(BAD FL eER ;
Slide 10: Closing a strong year 2024 with +4.7% LFL sales growth in Q4
CLOSING A STRONG YEAR 2024 WITH +4.7% LFL SALES GROWTH IN Q4 LED BY VOLUME/MIX, WHILE PRICE REMAINED RESILIENT +4.7% 9, +4.1% +4.0% we 7 +4,2% Price @ Vol/mix +4.3% I FY 2024 LFL sales growth Qi24 Q2 24 Q3 24 Q4 24 Note: all data in like-for-like
Slide 11: Broad-based quality growth in 2024
BROAD-BASED QUALITY GROWTH IN 2024 POSITIVE VOLUME/MIX AND PRICE IN ALL CATEGORIES \ +4.3% FY 2024 LFL sales growth Note: all data in like-for-like EUROPE NORTH AMERICA CHINA, NORTH ASIA & OCEANIA LATIN AMERICA AMEA (REST OF THE WORLD) +1.7% +5.2% +8.0% +4.2% +5.7%
Slide 12: FY sales bridge
FY SALES BRIDGE REPORTED SALES GROWTH REFLECTING ACTIVE PORTFOLIO MANAGEMENT -— LFL GROWTH: +4.3% ——- +1.3% +3.0% rT -0.3% 48% €27,619m |] 2e%errom currencies €27,576m REPORTED GROWTH: -0.9% FY 2023 Volume/mix Price Currency, Scope FY 2024 Sales contribution of Sales hyperinflation and others! 1. In
Slide 13: Europe
EUROPE 5 CONSECUTIVE QUARTERS OF POSITIVE VOLUME/MIX Q4 2024: +1.8% LFL| +3.0% vol/mix; -1.2% price * Further acceleration in vol/mix, positive in all categories * Making step-by-step progress in EDP competitiveness * Solid performance in Specialized Nutrition; strong growth in Waters, led by evian,
Slide 14: North America
NORTH AMERICA STRONG PERFORMANCE, DRIVEN BY CONTINUED GROWTH IN OUR WINNING PLATFORMS Q4 2024: +7.7% LFL | +5.9% vol/mix; +1.9% price FY 2024 KEY FIGURES * Strong volume/mix with resilient pricing Net sales €6.6bn . . . . Like-for-like sales growth +5.2% . Continued strong momentum in High Protein,
Slide 15: China, North Asia & Oceania
CHINA, NORTH ASIA & OCEANIA SUSTAINED COMPETITIVE GROWTH IN ALL CATEGORIES Q4 2024: +6.8% LFL| +9.8% vol/mix; -3.0% price FY 2024 KEY FIGURES + Further market share gain in IMF, notably driven by Net sales €3.7bn Essensis, inan improving category Like-for-like sales growth +8.0% * Consistent strong
Slide 16: Latin America
LATIN AMERICA SOLID GROWTH WITH ROBUST VOLUME/MIX Q4 2024: +4.7% LFL | +1.2% vol/mix; +3.5% price * Strong growth in Specialized Nutrition led by Aptamil * EDP growth led by Danone, Danette & YoPro; last quarter of negative impact from the milk licensing out in Brazil « Waters benefitting from weath
Slide 17: AMEA (Rest of the World)
AMEA (REST OF THE WORLD) SOLID QUARTER DRIVEN BY ALL CATEGORIES Q4 2024: +5.4% LFL | +1.7% vol/mix; +3.7% price * Solid performance in Waters and Specialized Nutrition across the region + Further progress in Dairy Africa, with another quarter of strong growth in Morocco LFL SALES GROWTH BY QUARTER +
Slide 18: Recurring operating margin up +39 bps in 2024
RECURRING OPERATING MARGIN UP +39 BPS IN 2024 STRONG EXPANSION IN MARGIN FROM OPERATIONS; REINVESTMENTS INTO FUTURE GROWTH REPORTED: +39 BPS +242 bps 13.0% 12.6% 173 a 5 — — P -18 bps -12 bps FY 2023 Margin from Reinvestments in Overheads before Others! FY 2024 Recurring operations product, A&P, rei
Slide 19: Recurring EPS up +2.5%, driven by operational performance
RECURRING EPS UP +2.5%, DRIVEN BY OPERATIONAL PERFORMANCE RECURRING EPS GROWTH: +2.5% +4,0% +14.2% +0.1% na 9.4% €3.54 a || €3.63 FY 2023 Operational Financing Tax, Equity Currency Scope FY 2024 Recurring EPS Performance accounted and others? Recurring EPS companies, minorities! 1. Includes changes
Slide 20: Disciplined and return-oriented capital allocation
DISCIPLINED AND RETURN-ORIENTED CAPITAL ALLOCATION DRIVING SUSTAINABLE VALUE CREATION AND SHAREHOLDER RETURN Free cash flow Net debt ROIC Dividend per share FY 23 FY 24 10.0% €2.15 9.5% €2.10 €3.0bn | a -€8.6 bn FY 23 FY 24 FY 23 FY 24 -€10.2 bn Working Capital Net debt / EBITDA Progress Payout rati
Slide 21: 2025 guidance
2025 GUIDANCE IN-L LFL sales growth +3% to +5% ee Recurring operating income Growing faster than sales
Slide 22: CEO conclusion
CEO CONCLUSION Antoine de Saint-Affrique Chief Executive Officer
Slide 23: The world is growing older, gut is the new brain, growing protein relevance
The world is growing older, Gut is the new brain, impacting Growing protein relevance but not getting any healthier physical & mental health Nourish, optimize, perform
Slide 24: Doubling-down on Renew Danone
DOUBLING-DOWN ON RENEW DANONE STEPPING UP FURTHER OUR CAPABILITIES, CULTURE AND TALENT PIVOTING, BROADENING, EXPANDING
Slide 25: Appendix
Slide 26: Q4 2024 sales by geographical zone
Q4 2024 SALES BY GEOGRAPHICAL ZONE EUROPE NORTH CHINA, NORTH AMERICA ASIA & OCEANIA Q4 sales €2,358m €1,636m €886m Like-for-like growth 41.8% +7.7% 46.8% Volume/mix +3.0% +5.9% +9.8% Price 1.2% +1.9% -3.0% LATIN AMERICA €724m +4.7% +1.2% +3.5% REST OF THE WORLD €1,112m +5.4% +1.7% +3.7% COMPANY €6,7
Slide 27: Q4 2024 sales by category
Q4 2024 SALES BY CATEGORY Q4 sales Like-for-like growth Volume/mix Price COMPANY €6,716m +4.7% +4.2% +0.6%
Slide 28: Q4 sales by category and geography
Q4 SALES BY CATEGORY AND GEOGRAPHY ) EDP Sales LFL growth SPECIALIZED NUTRITION Sales LFL growth WATERS Sales LFL growth COMPANY Sales LFL growth EUROPE €1,075m +0.0% €819m +2.0% €464m +5,6% €2,358m +1.8% NORTH AMERICA €1,474m +7.8% €89m +3.2% €73m +12.3% €1,636m +7.1% CHINA, NORTH ASIA & OCEANIA €9
Slide 29: FY 2024 sales by geographical zone
FY 2024 SALES BY GEOGRAPHICAL ZONE FY sales Like-for-like growth Volume/mix Price EUROPE €9,568m +1.7% +14% +0.2% NORTH CHINA, NORTH AMERICA ASIA & OCEANIA €6,579m €3,694m +5.2% +8.0% +4.1% +9.1% +1.1% 11% LATIN AMERICA €3,029m +4.2% +0.0% +4.2% REST OF COMPANY THE WORLD €4,506m €27,376m +5.7% +4.3%
Slide 30: FY 2024 sales by category
FY 2024 SALES BY CATEGORY FY sales Like-for-like growth Volume/mix Price COMPANY €27,376m +4.3% +3.0% +1.3%
Slide 31: FY 2024 sales by category and geography
FY 2024 SALES BY CATEGORY AND GEOGRAPHY o 90 ® ) EUROPE NORTH CHINA, NORTH AMEA, CIS & COMPANY AMERICA ASIA & OCEANIA LATIN AMERICA EDP Sales €4,318m €5,922m €372m €2,850m €13,463m LFL growth +0.9% +5.4% +11.6% +3.8% +3.8% SPECIALIZED NUTRITION Sales €3,154m €353m €2,557m €2,873m €8,936m LFL growth
Slide 32: Q4 and FY 2024 sales by geographical zone
Q4 AND FY 2024 SALES BY GEOGRAPHICAL ZONE Q4 2024 EUROPE NORTHAMERICA cae GCEANIA AMERICA THE WORLD Like-for-like sales growth +1.8% 47.7% +6.8% +4.7% 454% Scope 0.4% “12.2% 0.0% 0.0% 3.3% -3.8% Currency and others! +0.6% -0.7% +1.0% -22.0% -3.1% -2.6% IAS 29 impact 0.0% 0.0% 0.0% 47.9% 0.0% +0.8% H
Slide 33: Changes in exchange rates
CHANGES IN EXCHANGE RATES % total FY 2024 FY 24 vs. FY 23 (avg) Q4 24 vs. Q4 23 (avg) = united States Dollar 22.6% -0.1% +0.7% BM Chinese Renminbi 11.2% 1.6% +1.7% —_ Indonesian Rupiah 5.7% -3.9% 0.0% SE ritish Pound 5.5% 42.7% +4,2% Bef Mexican Pesos 5.4% -3.3% “12.8% mam =Polish Zloty 2.9% +5.5% +
Slide 34: Recurring operating margin
RECURRING OPERATING MARGIN FY 2023 FY 2024 gin €m margin (%) €m margin (%) rep change Europe 1,076 1.5% 1,143 11.9% +48 bps North America 699 10.1% 749 NA% +124 bps China, North Asia & Oceania 1,052 30.1% 1,086 29.4% -70 bps Latin America 123 AAV 3 3.7% -68 bps Rest of the World 530 10.5% 468 10.4%
Slide 35: Recurring P&L
RECURRING P&L € million Sales 27,619 27,376 Recurring operating income 3,481 3,558 Recurring operating margin 12.6% 13.0% Cost of net debt (172) (197) Other recurring financial income and expense (135) (108) Recurring income before taxes 3,173 3,253 Recurring income tax (864) (888) Recurring effecti
Slide 36: Non-recurring net income
NON-RECURRING NET INCOME € million FY 2023 FY 2024 Change 2024 vs 2023 Recurring net income group share 2,283 2,345 Non-recurring net income group share (1,402) (324) +1,078 g Operating income (1,438) (179) +1,259 ira] Ee 2 Total Financial expenses (49) (75) (26) & > 3) Income tax 95 (41) (136) oa z
Slide 37: EBITDA calculation
EBITDA CALCULATION € million FY 2023 FY 2024 Depreciation, amortization and impairment of property, plant and , n 0 1,611 1,168 equipment and intangible assets EBITDA 3,654 4,546
Slide 38: Tax development
TAX DEVELOPMENT € million FY 2023 FY 2024 (768) (929) Reported tax rate 45.6% 31.0% Total income tax (reported) Non-recurring income tax (864) Underlying tax rate 27.2% 27.3% FY 2023 FY 2024 Income tax pa’ nts during the year (730) (766)
Slide 39: Free cash flow bridge
FREE CASH FLOW BRIDGE € million Recurring operating income 3,481 3,558 Recurring financial result (307) (305) +2 Recurring income tax (864) (888) (24) D&A and other non-cash items +1,241 +1,293 +52 Transformation projects and other cash items (348) (266) +82 Capital Expenditure (847) (923) (76) Chan
Slide 40: Balance sheet
BALANCE SHEET € million > ASSETS'_, —— LIABILITIES —+ 31/12/23 31/12/24 31/12/23 31/12/24 Intangible assets 24,009 10 221 Other assets. Working capital 38,434 39,091 38,434 39,091 1. Excluding assets included in net debt; 2. Net of cash, cash equivalents, marketable securities, other short-term inve
Slide 41: Net debt
NET DEBT Reported Net Debt/EBITDA €10.2bn +0.3 €8.6bn +1.5 ___ =x -0.4 -€1.6bn Net debt FCF M&A Dividends Others Net debt 31/12/23 31/12/24
Slide 42: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements concerning Danone. In some cases, you can identify ye these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guid