Slide 1: Q3 2019 Sales: Continued growth acceleration
Q3 2019 SALES Continued growth acceleration October 18, 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: Q3 2019 highlights
Q3 2019 highlights Around double-digit growth led by Asia Continued growth in Europe partly +3.0% offset by US yogurt softness LFL sales growth Category weakness in Europe due to weather comp Innovation, mix and portfolio management All data in like-for-like I 3 I
Slide 4: Q3 2019 sales bridge
Q3 2019 sales bridge Positive mix driving sales growth; volumes impacted by Waters decline Reported growth +3.7% +0.4% €6,418 m -1.3% +1.6% €6,186 m +4.6% -1.6% Like-for-like growth (excl. Argentina): +3.0% Q3 2018 Volume Value Argentina organic Scope Currency Q3 2019 contribution to growth and othe
Slide 5: Q3 2019 performance by business
Q3 2019 performance by business Strong acceleration of Specialized Nutrition offsets soft Waters Total Specialized Essential Dairy Waters Company Nutrition & Plant-based Net sales €6.4 bn €1.9 bn €3.2 bn €1.3 bn Like-for-like growth +3.0% +9.8% +0.7% -0.9% Volume -1.6% +0.8% -2.7% -2.5% Value +4.6%
Slide 6: NUEVA
NUEVA FORMULA ( 90) 9 Nutrilon. PREBIOTICOS s y = POSTBIOTICOS
Slide 7: Specialized Nutrition: +9.8% in Q3
Specialized Nutrition: +9.8% in Q3 ELN China driving strong acceleration with positive mix Quarterly LFL sales growth(1) AMN: further mid-single digit growth led by pediatric segment +9.8% Early Life Nutrition: >10% sales growth ▪ Total China: >20% sales growth on a low base +3.2% +0.4% ▪ Category g
Slide 8: 100% Pflanzlich
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Slide 9: Essential Dairy & Plant-based: +0.7% in Q3
Essential Dairy & Plant-based: +0.7% in Q3 Continued growth in Europe partly offset by US yogurt softness Quarterly LFL sales growth(1) ▪ Europe: sustained slightly positive growth ▪ North America: flat sales with mixed segment performance ▪ Plant-based and Coffee Creamers continue to grow +2.2% +1.
Slide 10: HAYAT'TA
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Slide 11: Waters: -0.9% in Q3
Waters: -0.9% in Q3 Category weakness in Europe due to weather comp Quarterly LFL sales growth(1) ▪ Europe: low-single digit negative growth ▪ Exceptional weather comp last year ▪ Maintaining levels of market share +6.9% ▪ Steep decline in August, back to growth in September +4.2% +3.9% +2.1% ▪ Asia
Slide 12: Q4 outlook
Q4 outlook Poised for further like-for-like sales growth acceleration Strong growth to be led by China and South-East Asia Acceleration from regained distribution in US yogurts and further plant-based expansion Set to improve through continued focus on valorized innovations I 12 I
Slide 13: Unchanged priorities, unchanged trajectory
Unchanged priorities, unchanged trajectory Sales guidance narrowed, margin guidance confirmed Strategic priorities LFL sales growth acceleration 2019 full-year guidance throughout the year 1 ▪ 9M 2019 delivery: +2.1% LFL sales growth: 2.5% to 3% ▪ Q4 2019 consistent with 2020 objectives vs. previous
Slide 14: Driving long-term transformation for a unique investment proposition
Driving long-term transformation for a unique investment proposition Lead the way to create and share sustainable value I 14 I
Slide 15: Appendix
Appendix I 15 I
Slide 16: Q3 2019 sales by reporting entity and by geographical area
Q3 2019 sales by reporting entity and by geographical area Essential Dairy Specialized Waters Company & Plant-based Nutrition Europe and Noram Sales €2,165m €772m €515m €3,451m LFL growth +0.2% +2.9% -2.7% +0.3% Rest of the world Sales €1,075m €1,148m €743m €2,966m LFL growth +1.9% +15.3% +0.5% +6.5
Slide 17: Q3 2019 impact of currencies & scope
Q3 2019 impact of currencies & scope Essential Dairy Specialized Nutrition Waters Total & Plant-based Reported sales growth +0.8% +11.4% +0.7% +3.7% Argentina organic contribution to growth +0.5% +0.5% +0.4% +0.4% Currency and others(1) +2.1% +1.1% +1.1% +1.6% IAS 29 impact +0.0% +0.0% +0.1% +0.0% S
Slide 18: Changes in exchange rates
Changes in exchange rates % total Q3 2019 Q3 19 vs Q3 18 (avg) United States Dollar 19.8% +4.6% Chinese Renminbi 7.9% +1.4% Russian Ruble 6.0% +6.1% Indonesian Rupiah 6.0% +8.2% British Pound 5.0% -1.1% Mexican Peso 4.5% +2.1% Brazilian Real 3.0% +4.1% Hong Kong Dollar 2.8% +4.8% Polish Zloty 2.5% -