Slide 1: Q1 2019 Sales
Q1 2019 SALES April 17, 2019 Cécile Cabanis CFO I 1 I
Slide 2: Disclaimer
Disclaimer • This presentation contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward- looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guid
Slide 3: Q1 2019 delivery in line with expectations
Q1 2019 delivery in line with expectations Progress against priorities Accelerate growth ▪ Strong underlying business fundamentals 1 ▪ Quarterly growth impacted by base of comps ▪ Low start to the year as expected ▪ Set to accelerate from Q2 2019 full-year guidance confirmed Maximize efficiencies 2
Slide 4: Q1 2019 sales bridge: +0.8% like-for-like growth
Q1 2019 sales bridge +0.8% like-for-like growth Reported growth +0.9% Like-for-like growth: +0.8% €6,138 m €6,085 m +0.3% -0.2% 0.0% -2.2% +3.0% excluding Morocco: +1.5% with volumes -1.0% Q1 2018 Currency Scope Argentina organic Volume Value Q1 2019 and others(1) contribution to growth (1) Includin
Slide 5: Q1 2019 performance by reporting entity
Q1 2019 performance by reporting entity Valorization driven by premium innovations and resilient pricing Essential Dairy Specialized Waters & Plant-based Nutrition Net sales €3.3 bn €1.8 bn €1.0 bn +0.2% Like-for-like excl. Morocco: +0.4% +3.9% growth +1.4% Volume -3.8% -0.9% +1.0% Value +4.0% +1.3%
Slide 6: Essential dairy & Plant-based
Essential dairy & Plant-based
Slide 7: Essential Dairy & Plant-based: +0.2%
Essential Dairy & Plant-based: +0.2% Q1 impacted by phasing effects; set to rebound from Q2 ▪ North America: moderate growth Quarterly LFL sales growth(1) ▪ Portfolio management and valorization initiatives across segments Start of ▪ One-off impact from final stage of IT integration boycott in Moroc
Slide 8: : ees
: ees 242 S tuiiscio TTL IA A/a | | Aptamil Prosyneo 3 Newly available Re =~ vikgGio ad) Bn Sugn MEIAGOIDEN
Slide 9: Specialized Nutrition: +0.4% in Q1
Specialized Nutrition: +0.4% in Q1 Strong growth of AMN and ELN outside China Quarterly LFL sales growth(1) Advanced Medical Nutrition: mid-single digit growth ▪ Positive growth in Europe ▪ Double-digit growth in China +13.9% +10.3% +0.8% +0.4% Early Life Nutrition: negative growth -1.7% Q1 2018 Q2
Slide 10: Waters
nat GISNT MOSNIVEN
Slide 11: Waters: +3.9% in Q1
Waters: +3.9% in Q1 Broad-based growth supported by positive consumer trends Quarterly LFL sales growth(1) Europe: moderate growth ▪ Continuous strong performance of local brands Noram: strong growth +6.9% +4.9% ▪ evian distribution expansion supported by KDP agreement +3.9% +4.2% +3.9% Asia: solid
Slide 12: 2019 guidance confirmed
2019 guidance confirmed Growth and margin set to accelerate through 2019 1 2 3 4 Unwinding of Profitable growth Active portfolio Accounting base of comps model focus management factors ▪ Morocco back to growth ▪ Value growth through ▪ Sale of Earthbound Farm ▪ H1-weighted currency from Q2 pricing, m
Slide 13: Transformation in progress towards 2030 goals
Transformation in progress towards 2030 goals 2020 objectives confirmed 4-5% Like-for-like sales growth Like-for-like ~3% sales growth >16% Recurring operating margin >15% Recurring margin operating <3x Net debt/Ebitda ~12% ROIC 2019 2020 2022 2030 Goals Consistent recurring EPS growth I 13 I
Slide 14: Appendix
hs \ DANONG ONE PLANET. ONE HEALTH Appendix
Slide 15: Q1 2019 sales by reporting entity and by geographical area
Q1 2019 sales by reporting entity and by geographical area Essential Dairy Specialized Waters Company & Plant-based Nutrition Europe and Noram Sales €2,231m €760m €390m €3,381m LFL growth +0.7% -5.7% +1.4% -0.8% Rest of the world Sales €1,077m €1,068m €612m €2,757m LFL growth -1.0% +5.6% +5.7% +3.0%
Slide 16: Q1 2019 impact of currencies and scope
Q1 2019 impact of currencies and scope Essential Dairy Specialized Nutrition Waters Total & Plant-based Reported sales growth +0.4% +0.9% +2.7% +0.9% Argentina organic +0.3% +0.3% +0.3% +0.3% contribution to growth Currency and others +0.1% +0.3% (1.3%) (0.1%) IAS 29 impact (0.2%) (0.1%) (0.2%) (0.1
Slide 17: Changes in exchange rates
Changes in exchange rates % total Q1 2019 Q1 19 vs Q1 18 (avg) United States Dollar 21.6% +8.2% Chinese Renminbi 6.4% +1.9% Russian Ruble 6.5% -6.6% British Pound 5.3% +1.3% Indonesian Rupiah 5.7% +4.0% Mexican Peso 4.4% +5.7% Brazilian Real 2.9% -6.9% Polish Zlot 2.5% -2.8% Argentine Peso 2.4% -45.