Slide 1: FY 2014 Results
FY 2014 Results February 20, 2015 1
Slide 2: Disclaimer
DISCLAIMER This document contains certain forward-looking statements concerning Danone. Although Danone believes its expectations are based on reasonable assumptions, these forward- looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materia
Slide 3: A Year of Turbulences
A YEAR OF TURBULENCES Index : base 100 Jan 2009 UKRAINIAN TENSIONS 140 Milk price Europe 120 100 80 Danone average price/kg Europe MILK PRICES 60 2008 2009 2010 2011 2012 2013 2014 Source : European Milk Market Observatory OIL PRICE DECLINE ARGENTINA’S PESO DECLINE EBOLA $ oil price 120 100 80 60 12
Slide 4: 2014 Key Achievements
2014 KEY ACHIEVEMENTS MANAGING THE EQUATION IN EUROPE PLANTING SEEDS FOR THE FUTURE Europe sales growth trend evolution 2013 2014 < 2013 2014 ENHANCING OUR PLATFORMS CONSOLIDATING ASIA USA & Russia N°1 in MS
Slide 5: Solid Performance in a Volatile Environment
SOLID PERFORMANCE IN A VOLATILE ENVIRONMENT 2014 targets FY 2014 announced FY 2013 Sales growth(1) At least 4.5% 4.7% 12.59% Trading operating margin(1) Stable ± 20bps -12bps Free cash-flow excluding Around €1.5 bn €1,401 mln exceptional items(2) (1) Like-for-like: excludes the impact of changes in
Slide 6: 2014: A Year of Transformation
2014: A YEAR OF TRANSFORMATION October New role Operational agenda Strengthened duties Set up and implementation Thoughts and design of a new governance 6
Slide 7: Governance – A New Organization
GOVERNANCE – A NEW ORGANIZATION ONE 15 Board members 71% independent BOARD ONE CHAIRMAN ONE CEO 7
Slide 8: Governance – A New Board Member
GOVERNANCE – A NEW BOARD MEMBER Appointment of a new Board member (independent) proposed to next AGM SERPIL TIMURAY 2015 Board composition characteristics (subject to the approval of the Shareholders’ Meeting) • Rate of independence: 77% • Average age of Directors: 55.4 years • Percentage of women:
Slide 9: Agenda
AGENDA 2014: A solid performance in a volatile environment - Pierre-André Terisse, CFO 2015: Priorities and stakes – Emmanuel Faber, CEO Questions & Answers 9
Slide 10: Agenda
AGENDA 2014 : A solid performance in a volatile environment - Pierre-André Terisse, CFO 2015 : Priorities and stakes – Emmanuel Faber, CEO Questions & Answers 10
Slide 11: Key Figures
KEY FIGURES +4.7% like-for-like(1) Sales € 21,144 mln (0.7)% reported +3.7 % like-for-like(1) Trading operating income € 2,662 mln (5.2)% reported -12 bps like-for-like(1) Trading operating margin 12.59% (60) bps reported +3.6% like-for-like(1) (2) Underlying net income € 1,561 mln (4.6)% reported +
Slide 12: 2014: Keys to Read Our Financial Performance
2014: KEYS TO READ OUR FINANCIAL PERFORMANCE EUROPE: SIGNS OF SUCCESS ALMA: NAVIGATING IN VOLATILE MARKETS Mix management High inflation inflation price increase 2014 Forex inflation Argentine FanMilk Margin stabilized treatment impairment Restructuring ) ( portfolio inflation Investment Asia Africa
Slide 13: FY 2014 - Sales Growth Analysis
FY 2014 - SALES GROWTH ANALYSIS +4.7% Like-for-like (0.7)% reported (5.5)% 6.2% €21,144 mln 0,1% €21,298 mln (1.5)% 2013 Currency Scope & others Volume Value 2014 13
Slide 14: Q4 2014 - Sales Growth Analysis
Q4 2014 - SALES GROWTH ANALYSIS +7.5% Like-for-like +5.6% 7.8% Reported (1.4)% (0.5)% (0.3)% €5,261 mln €4,981 mln Q4 2013 Currency Scope & others Volume Value Q4 2014 14
Slide 15: Total Company – A Solid Performance in a Volatile Environment
TOTAL COMPANY – A SOLID PERFORMANCE IN A VOLATILE ENVIRONMENT Like-for-like sales growth Q4 2014 figures after treatment of over inflation for the full year 7.5% 6.9% 6.5% 5.6% 4.8% 4.7% 4.2% 2.9% 2.2% 2.3% FY 13 FY 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Solid performance in all markets
Slide 16: Geographical Dynamics
GEOGRAPHICAL DYNAMICS Weight based on 2014 sales Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 FY 13 FY 14 4,8% 2,0% 2,8% 0,5% 0,1% EUROPE (2,4)% (0,9)% (0,4)% Weight: (3,0)% 40% (5,1)% 11,1% 10,0% 10,2% 10,2% 8,5% 7,8% 7,0% NORAM 5,0% 3,3% CIS 2,0% Weight: 22% FY 13 FY 14 Q1 13 Q2 13 Q3 13 Q4 13
Slide 17: Sales Performance by Division
Sales performance by Division 17 17
Slide 18: Fresh Dairy Products – Focusing on Key Battles
FRESH DAIRY PRODUCTS – FOCUSING ON KEY BATTLES TO FACE EXCEPTIONAL MILK INFLATION Like-for-like sales growth Price/mix Volume 4.6% 4.9% 3.2% 8.1% 7.6% 9.8% 1.5% 7.8% 2.6% 2.9% 4.1% 3.9% 6.8% 0.7% 2.4% 1.5% 0.2% 3.6% 1.7% 1.7% 0.8% 0.7% 0.5% (1.0)% (1,0)% (3.7)% (6.6)% (7.4)% (7.1)% (7.8)% FY 13 FY 1
Slide 19: Fresh Dairy Products – Selected Innovations Q4
FRESH DAIRY PRODUCTS – Selected innovations Q4 Activia Superfruits Danone Cremoso Dan’up relaunch Russia Spain Brazil Yogurisimo Cremix & Stick Actimel Kids Danimals Squeezables Argentina Russia United States 19
Slide 20: Waters – Sustained Strong Growth
WATERS – SUSTAINED STRONG GROWTH Like-for-like sales growth 16.9% Price/mix Volume 13.1% 7.5% 12.3% 11.6% 11.8% 11.2% 10.5% 3.3% 8.9% 6.1% 3.5% 4.1% 8.6% 8.1% 4.4% 3.4% 2.1% 3.5% 4.0% 9.4% 9.0% 8.3% 6.8% 7.5% 7.1% 7.0% 6.0% 5.4% 4.6% FY 13 FY 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Very s
Slide 21: Waters – Selected Innovations Q4
WATERS – Selected innovations Q4 X-Mas Evian by Kenzo X-Mas Badoit Salus Uno Worldwide Worldwide Uruguay Mizone Fire We by Ser Villa del Sur Levité sachet China Argentina Argentina 21
Slide 22: Early Life Nutrition – Rebuild Strong Platforms of Growth
EARLY LIFE NUTRITION – REBUILD STRONG PLATFORMS OF GROWTH 28.1% Like-for-like sales growth 19.2% 16.6% 17.1% 13.5% 9.3% 9.3% 6.1% 10.8% 11.5% 4.4% 9.9% 3.6% 7.8% 4.3% 2.7% 1.7% (0.7)% (4.8)% (7.3)% (5,9)% FY 13 FY 14 (7.9)% (1.0)% (2.9)% (1.3)% (6.9)% (7.7)% (1.3)% (8.6)% (9.2)% Q1 13 Q2 13 Q3 13 Q4
Slide 23: Early Life Nutrition – Selected Innovations Q4
EARLY LIFE NUTRITION – Selected innovations Q4 Aptamil Pronutra+ Milk Cereals Milupa Profutura Mama Nutrilon AR Switzerland Germany Argentina Aptamil Profutura Nutrilon Profutura Germany Argentina 23
Slide 24: Medical Nutrition – Improving Dynamics
MEDICAL NUTRITION – IMPROVING DYNAMICS Like-for-like sales growth Price/mix Volume 10.1% 8.7% 7.9% 6.3% 5.8% 7.3% 4.5% 2.4% 5.8% 6.4% 2.3% 0.1% 1.1% 0.3% 5.2% 4.7% 1.6% 0.9% 1.1% 7.4% 6.2% 6.2% 5.6% 6.3% 5.5% 5.6% 4.8% 3.6% 4.3% (1.6)% FY 13 FY 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Key
Slide 25: Medical Nutrition – Selected Innovations Q4
MEDICAL NUTRITION – Selected innovations Q4 < Terug Overzicht eiwitten GRAFIEK MET EIWIT INNAME EN DAGELIJKS DOEL Weekly compliance 83% Doel: 30 gr per dag 15 feb 21 feb NutriApp to monitor calorie and protein intake Netherlands Infatrini Lophlex LQ Juicy Worldwide 13 countries 25
Slide 26: Trading Operating Income and Margin
TRADING OPERATING INCOME AND MARGIN FY 2013 FY 2014 € mln Trading operating income 2,809 2,662 Other operating items (681) (511) Operating income 2,128 2,151 Trading operating margin 13.19% 12.59% 26
Slide 27: 2014 - Margin Development
2014 - MARGIN DEVELOPMENT Reported (60) bps (207) bps (20) bps (28) bps (12) bps 13.19% 12.59% Margin FY 2013 Scope Forex Like-for-like Margin FY 2014 27
Slide 28: 2014 - Managing Inflation Through Price & Mix
2014 - MANAGING INFLATION THROUGH PRICE & MIX LIKE-FOR-LIKE MARGIN BRIDGE (12) bps (226) bps 252 bps (20) bps (81) bps 63 bps FY 2013 Volume Pricing & Mix Input cost & Other COGS A&P FY 2014 inflation 28
Slide 29: Record Milk Prices
RECORD MILK PRICES DANONE FARMGATE PRICE 2006-2014 €/Ton 400 350 300 250 200 29
Slide 30: Trading Operating Margin by Business Line & Geographical Area
TRADING OPERATING MARGIN by business line & geographical area Like-for-like FY 2013 FY 2014 € mln change Fresh Dairy Products 10.35% 9.28% (67) bps Waters 13.04% 12.88% +93 bps Early Life Nutrition 19.62% 18.83% (40) bps Medical Nutrition 18.16% 18.28% +89 bps Europe 14.42% 15.67% +158 bps CIS+Noram
Slide 31: From Operating Income to EPS
FROM OPERATING INCOME TO EPS FY 2013 FY 2014 Non-current FY 2014 € mln underlying underlying items Trading operating income 2,809 2,662 - 2,662 Other operating items - (511) (511) Operating income 2,809 2,662 (511) 2,151 Total financial expenses (311) A UPDATER (309) (3) (312) Income tax (750) (716)
Slide 32: EPS Down on Forex, Up Without Forex and Scope
EPS DOWN ON FOREX, UP WITHOUT FOREX AND SCOPE Reported (5.6)% (7.8)% +2.5% (0.3)% €2.78 € 2.62 Underlying EPS FY 2013 Currency Scope Like-for-like growth Underlying EPS FY 2014 32
Slide 33: Cash Bridge
CASH BRIDG ©) DANONE €min Cash from Working capital Capex Sales of assets FCF excl Plan for savings FCF reported operating variation and transaction European plan and adaptation activities Fees in Europe 33
Slide 34: Cash Drivers
CASH DRIVERS FREE CASH-FLOW EXCLUDING EXCEPTIONAL ITEMS (€ MLN) 2 088 1 713 1 874 1 549 1 401 2010 2011 2012 2013 2014 WORKING CAPITAL (€ MLN) CAPITAL EXPENDITURES (€ MLN) 2010 2011 2012 2013 2014 (989) (1,199) (1,528) 1 039 (1,769) (1,861) 885 976 984 832 2010 2011 2012 2013 2014 % of sales -5.8% -
Slide 35: 2014 - FCF to Net Debt Change
2014 - FCF TO NET DEBT CHANGE € mln 35
Slide 36: A New Rating for More Flexibility
A NEW RATING FOR MORE FLEXIBILITY AND A CONFIRMED HIGH-QUALITY SIGNATURE CHANGE OF RATING €1.3BN DUAL-TRANCHE BOND ISSUE Including a tranche of 10-year fixed rate bonds 2014 December 2014 of €750 million, priced at mid swap +48 basis points (coupon of 1.125%). A- A- stable outlook negative outlook A
Slide 37: Synthetic Balance Sheet
SYNTHETIC BALANCE SHEET Assets(1) Liabilities € mln December 13 December 14 December 13 December 14 Shareholders’ equity 11 745 10 729 Intangible assets 16 234 16 308 7 764 Net debt(2) 7 966 7 921 Other assets 6 682 2 527 2 785 Other liabilities Working capital 5 745 6 075 Working capital 3 977 4 21
Slide 38: 2014 CSR Achievements
2014 CSR ACHIEVEMENTS: CONTINUING TO BUILD SUSTAINABLE PERFORMANCE Carbon intensity -42 % 2008-2014 On track to meet objective of >50% reduction 2008-2020 BRINGING HEALTH Water intensity THROUGH FOOD TO AS MANY PEOPLE AS -4 % in 2014 On track to meet objective of >60% reduction 2000-2020 POSSIBLE Lo
Slide 39: Agenda
AGENDA 2014: A solid performance in a volatile environment - Pierre-André Terisse, CFO 2015: Priorities and stakes – Emmanuel Faber, CEO Questions & Answers 39
Slide 40: Key Priorities Since October 2014
KEY PRIORITIES SINCE OCTOBER 2014 A NEW EXECUTIVE TEAM A NEW BUSINESS ORGANIZATION 4 CATEGORIES A DEEP DIVE INTO BUSINESS 40
Slide 41: Leverage Our Strengths and Opportunities
LEVERAGE OUR STRENGTHS AND OPPORTUNITIES OUR MISSION OUR TALENTS 81% LONG-TERM COMMITMENT OUR STRONG BRANDS OUR GEOGRAPHICAL FOOTPRINT 41
Slide 42: Danone 2020 as a Guiding Vision
DANONE 2020 AS A GUIDING VISION 42
Slide 43: 2015: A First Step Towards 2020
2015: A FIRST STEP TOWARDS 2020 2014 2015 … 43
Slide 44: Europe - Reinforce Our Base Camp
EUROPE - REINFORCE OUR BASE CAMP EUROPE EUROPE Weight: LFL 40% growth: +2.0% 44
Slide 45: Europe - Fresh Dairy Products
EUROPE - FRESH DAIRY PRODUCTS EUROPE BREAKDOWN VOLUME/VALUE GROWTH (%) 2014 BRANDS PERFORMANCE Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q4 performance Full-year performance 8% Positive in Germany, 4% Italy & UK 0% +7.6% (4)% (8)% (12)% Price/mix Positive in (16)% France & Iberia € 20 mln Volu
Slide 46: Europe – Medical Nutrition
EUROPE – MEDICAL NUTRITION EUROPE PERFORMANCE IMPROVEMENT IN A TOUGH CONTEXT STRONG LEADER IN WESTERN EUROPE Reimbursement pressure Competition intensity Nordics #1 EUROPE > +5% sales growth UK/Ireland #1 #1 #2 TRUSTED BRANDS CONTINUOUSLY INNOVATING #1 #1 #1 < Terug Overzicht eiwitten GRAFIEK MET EI
Slide 47: NORAM / CIS - Two Powerhouses in Large Markets
NORAM / CIS - TWO POWERHOUSES IN LARGE NORAM MARKETS CIS NORAM Weight: CIS LFL 22% growth: +5.0% 47
Slide 48: NORAM / CIS - Fresh Dairy Products USA
NORAM NORAM / CIS - FRESH DAIRY PRODUCTS USA CIS LEADING THE YOGURT CATEGORY DANNON’S FUTURE GROWTH PILLARS 40% Average value market shares CONSUMERS Danone(1) 30% Competitor 1 20% Competitor 2 10% 2011 2012 2013 2014 (1) Danone : including Stonyfield and YoCrunch Source: IRI Multi Outlet RETAILERS
Slide 49: NORAM / CIS - Fresh Dairy Products CIS
NORAM NORAM / CIS - FRESH DAIRY PRODUCTS CIS CIS RUBLE DEVALUATION SOLID LOCAL PLATFORM 65 • Local brands volume >80% of total portfolio 55 45 • 100% local milk sourcing 35 • 100% local production 25 janv.-13 juil.-13 janv.-14 juil.-14 janv.-15 2014 BRANDS SALES GROWTH RUSSIAN MILK PRICE INFLATION E
Slide 50: ALMA – A Growth Platform for Today & Tomorrow
ALMA – A GROWTH PLATFORM FOR TODAY & ALMA TOMORROW Weight: ALMA LFL 38% growth: +7.4% 50
Slide 51: ALMA - LATAM
ALMA - LATAM ALMA LATAM KEY-DRIVER COUNTRIES SOLID MODEL BEYOND INFLATION PCC yogurt (kg/pers) evolution 8 #1 #1 7 Positions in each market 6 5 2014 Danone Waters Latam #4 #1 4 MS: 35.5% / +0.8 pt vs LY 3 2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Eurom
Slide 52: ALMA – Opportunities of Growth in Asia
ALMA – OPPORTUNITIES OF GROWTH IN ASIA ALMA WATERS: BRAND & CATEGORY PERFORMANCE 2014 sales growth Aquadrinks Asia > +30% A STRATEGIC ALLIANCE WITH MENGNIU Mizone > +30% Aqua +19% Danone’s stake in Mengniu: 9.9% 2nd biggest shareholder behind COFCO Danone’s stake in Mengniu/Danone Dairy ELN INDONE
Slide 53: ALMA - Early Life Nutrition China
ALMA - EARLY LIFE NUTRITION CHINA ALMA A BROAD PORTFOLIO COVERING ALL BABIES’ NEEDS GLOBAL SALES VALUE PER CHANNEL 3 500 (Mln RMB) 3 000 2 500 2 000 1 500 1 000 NUTRILON: INTENSIFY CONNECTIONS WITH CONSUMERS 500 E-commerce MT MBS (Mom & Baby Stores) - E-store Mom & Baby stores 53
Slide 54: ALMA – Africa, a Land of Opportunities
ALMA – AFRICA, A LAND OF OPPORTUNITIES ALMA (AND CHALLENGES) By 2035,Africa will have a 1 in 4 of the world’s larger working age children is born in Africa population than China 1.2 birth every second 40% of Africans are under 15 in Africa, for a birthrate of 35.4 per 1,000 Twice as many mobiles as
Slide 55: ALMA - Africa, Building the Platform
ALMA - AFRICA, BUILDING THE PLATFORM ALMA 2008 2014 Presence in over 40 countries x6 €1 bn 2008 2014 55
Slide 56: A Continued Challenging Environment
A CONTINUED CHALLENGING ENVIRONMENT 56
Slide 57: 2015: Enhance Our Strengths and Keep Building a Sustainable Model
2015: ENHANCE OUR STRENGTHS AND KEEP BUILDING A SUSTAINABLE MODEL OPTIMIZE INVEST Margin BUILD NURTURE categories 57
Slide 58: 2015 Guidance: Anchor the Model
2015 GUIDANCE: ANCHOR THE MODEL (1,027) 2015 objectives Sales growth(1) 4% to 5% Trading operating Slightly up margin(1) (1) Like-for-like: excludes the impact of changes in the basis for comparison, which include exchange rates and scope of consolidation 58
Slide 59: Proposal to Increase Dividend at the Next AGM
PROPOSAL TO INCREASE DIVIDEND AT THE NEXT AGM Dividend proposed at the next AGM on April 29th, 2015 : € 1.50 per share (+5 ct vs. 2013) Payment in either cash or shares at shareholders’ option 59
Slide 60: Appendix
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Slide 61: Cash Bridge
CASH BRIDGE DANONE €min 57 — (784) 59 2,269 Trading Depreciation Taxes Financial Others Cash from Working capital = Capex Sales ofassets FCFexcl Plan forsavings FCF reported Operating results operating variation and transaction European plan and adaptation income activities Fees in Europe 61
Slide 62: Tax Rate Development
TAX RATE DEVELOPMENT FY 2013 FY 2014 € mln Total income tax (reported) (604) (599) Reported tax rate 32.4% 32.6% Non-current income tax(1) 146 117 Current income tax (750) (716) Underlying tax rate 30.0% 30.5% (1) Tax related to non-current items 62
Slide 63: Share Price & Shareholding
SHARE PRICE & SHAREHOLDING DANONE SHARE PRICE EVOLUTION DANONE STOCK PERFORMANCE(1) Absolute +4.1% Relative vs. CAC 40 +3.6% Relative vs. Eurostoxx 50 +2.9% SHAREHOLDING BY INVESTOR TYPE (2) INSTITUTIONAL SHAREHOLDING BY GEOGRAPHY (2) France Institutional shareholders United Kingdom 15% 78% 10% Asia
Slide 64: ADR Program
ADR PROGRAM DRs Outstanding as a % of Total Shares Outstanding 180 5% DRs Outstanding (Millions) % Total Shares Outstanding 160 4% 140 120 3% 100 80 2% 60 40 1% 20 0 0% January February March April May June July August September October November December DRs Outstanding % Total Shares Outstanding Da
Slide 65: Impact of Currencies and Scope - Q4 2014
IMPACT OF CURRENCIES AND SCOPE - Q4 2014 Fresh Dairy Early Life Medical Waters Total Products Nutrition Nutrition Reported sales growth (5.6)% +14.6% +29.7% +10.3% +5.6% Currency (4.0)% +2.1% +1.1% +1.5% (1.4)% Scope of consolidation (0.6)% +0.2% +0.5% +0.1% (0.5)% Like-for-like sales growth (1.0)%
Slide 66: Impact of Currencies and Scope - FY 2014
IMPACT OF CURRENCIES AND SCOPE - FY 2014 Fresh Dairy Early Life Medical Waters Total Products Nutrition Nutrition Reported sales growth (5.6)% +7.2% +3.1% +6.7% (0.7)% Currency (6.9)% (5.2)% (3.6)% (1.4)% (5.5)% Scope of consolidation (0.2)% +0.8% +0.6% +0.2% +0.1% Like-for-like sales growth +1.5% +
Slide 67: Q4 2014 Sales by Business & Geographical Area
Q4 2014 SALES BY BUSINESS & GEOGRAPHICAL AREA Like-for-like Q4 2013 Q4 2014 € mln sales growth Fresh Dairy Products 2,854 2,693 (1.0)% Waters 823 944 +12.3% Early Life Nutrition 956 1,241 +28.1% Medical Nutrition 348 384 +8.7% Europe 1,969 2,105 +4.8% CIS+Noram 1,170 1,042 +2.0% ALMA 1,842 2,114 +14
Slide 68: FY 2014 Sales by Business & Geographical Area
FY 2014 SALES BY BUSINESS & GEOGRAPHICAL AREA Like-for-like FY 2013 FY 2014 € mln sales growth Fresh Dairy Products 11,790 11,129 +1.5% Waters 3,903 4,186 +11.6% Early Life Nutrition 4,263 4,397 +6.1% Medical Nutrition 1,342 1,432 +7.9% Europe 8,197 8,522 +2.0% CIS+Noram 4,713 4,525 +5.0% ALMA 8,388
Slide 69: Q4 2014 Like-for-Like Sales Growth Breakdown Volume/Value
Q4 2014 LIKE-FOR-LIKE SALES GROWTH BREAKDOWN VOLUME/VALUE Volume Price/mix Total Like-for-like Fresh Dairy Products (7.8)% +6.8% (1.0)% Waters +9.0% +3.3% +12.3% Early Life Nutrition +11.5% +16.6% +28.1% Medical Nutrition +6.3% +2.4% +8.7% Europe +0.0% +4.8% +4.8% CIS+Noram (8.0)% +10.0% +2.0% ALMA
Slide 70: FY 2014 Like-for-Like Sales Growth Breakdown Volume/Value
FY 2014 LIKE-FOR-LIKE SALES GROWTH BREAKDOWN VOLUME/VALUE Volume Price/mix Total Like-for-like Fresh Dairy Products (6.6)% +8.1% +1.5% Waters +7.5% +4.1% +11.6% Early Life Nutrition +1.7% +4.4% +6.1% Medical Nutrition +5.6% +2.3% +7.9% Europe (0.9)% +2.9% +2.0% CIS+Noram (6.9)% +11.9% +5.0% ALMA +0.
Slide 71: Cash Flow Statement
CASH FLOW STATEMENT 2013 2014 € mln Operating income 2,809 2,662 Financial income (311) (309) Income tax (750) (716) Non-current income (487) (397) Depreciation and amortization 711 956 Net change in provisions 78 (51) Dividend received from equity accounted affiliates 27 18 Other cash items (35) (9
Slide 72: Cash Flow Statement
CASH FLOW STATEMENT 2013 2014 € mln Cash flow provided by operating activities, excluding 2,133 2,154 changes in net working capital Change in working capital 224 35 Cash flow from operations 2,357 2,189 Capital expenditure (1,039) (984) Proceeds from the sale of industrial assets 79 67 Business acq
Slide 73: Cash Flow Statement
CASH FLOW STATEMENT 2013 2014 € mln Increase in capital and additional paid-in capital 37 33 Purchases of treasury stock (net of disposal) (793) 13 Dividends paid to Danone shareholders (848) (307) Transactions with non controlling interests* (213) (471) Settlement of debt hedge financial instrument
Slide 74: Changes in Exchange Rates
CHANGES IN EXCHANGE RATES 28.7% OF SALES DENOMINATED IN € % total FY 14 FY 14 vs FY 13 Q4 14 vs Q4 13 sales (avg) (avg) US dollar 10.1% (0.1)% 8.9% Russian ruble 9.4% (17.1)% (26.2)% Chinese yuan 6.5% (0.3)% 7.9% Indonesian rupiah 5.4% (12.0)% 2.7% British pound 5.4% 5.3% 6.5% Mexican peso 5.1% (4.0