Slide 1: Q3 2016 Sales
Q3 2016 SALES October 18, 2016 Cécile CABANIS, CFO 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 material
Slide 3: Continued progress on the agenda towards 2020 / Transition in China
Continued progress on the agenda towards 2020 / Transition in China Continue to build a solid and resilient model Transition in China TOTAL COMPANY SALES GROWTH(1) EVOLUTION 4.1% 3.5% 3.2% 2.1% Q1 16 Q2 16 Q3 16 9M 16 ● Strict discipline in resources allocation ● Waters: Slowdown of the overall NABs
Slide 4: Q3 2016 like-for-like sales growth at +2.1%
Q3 2016 like-for-like sales growth at +2.1% Reported (1.8)% Like-for-like +2.1% (4.1)% +0.2% +2.8% (0.7)% €5,641 mln €5,537 mln Q3 2015 Currency Scope & others Volume Value Q3 2016 ● Reported sales impacted by currencies (Argentine peso, British pound and Mexican peso) 4
Slide 5: Q3 2016 regional dynamics
Q3 2016 regional dynamics Like-for-like sales growth EUROPE NORAM ALMA CIS USA+Canada+CIS AsiapacLatamMiddleEastAfrica -2.7% +2.8% +6.8% €2.2 bn €1.1 bn €2.3 bn ● Europe: Performance impacted by transition in the indirect Chinese ELN channel ● NORAM & CIS: Solid momentum in NORAM / Resilient model i
Slide 6: Q3 2016 category dynamics
Q3 2016 category dynamics Like-for-like sales growth +2.2% -0.1% +1.7% +9.7% €2.7 bn €1.2 bn €1.2 bn €0.4 bn 3.7% 6.0% 4.5% 0.0% 2.1% (2.3)% (0.1)% (0.4)% w/o China: w/o indirect China : MSD growth MSD growth 6 Price/mix Volume
Slide 7: Dairy Europe: Progressing in global brands relaunches
Dairy Europe: Progressing in global brands relaunches 2016: a key year for global brand relaunches Activia relaunch: a key milestone 7 (1) Q3 like-for-like sales growth
Slide 8: Dairy US: Sustaining the re-acceleration
Dairy US: Sustaining the re-acceleration Solid action plans… … to reinforce a strong leadership ● Dynamic drive of innovations ● Leader of the yogurt category Best ever with 35.8% MS (1) #1 +1.4 pt vs LY ● Strong media support ● Fast-growing brands (2) (2) (2) ≈ +15% ≈ +10.0% > +15.0% (1) YTD 2016 T
Slide 9: Waters: Expanding platforms by leveraging strong category dynamics
Waters: Expanding platforms by leveraging strong category dynamics Switching trends: new opportunities for growth ≈€450 bn ≈€600 bn ≈€900 bn 34% 30% 39% 23% 26% 21% 40% 43% 45% 2008 2014 2020 E Still drinks Bottled water CSDs Strong performance in key markets Continued transition Stable market share
Slide 10: ELN: Leveraging strong fundamentals / Transition towards a more sustainable model in China
ELN: Leveraging strong fundamentals / Transition towards a more sustainable model in China Developing a worldwide leading position Converting to direct model ● Growing new markets ● Transition of indirect: ≈ -25% (1) ● Major progress in developing direct model: > +10% already ≈50% of total Chinese s
Slide 11: Medical Nutrition: Delivering a continued strong growth
Medical Nutrition: Delivering a continued strong growth Broad-based geographical growth Strong pillars of growth ● Paediatric care Q3 sales growth(1) Neocate EUROPE ≈ +10% (1) NORAM CIS ≈ High single-digit USA+Canada+CIS ≈ High single-digit ALMA ● Adult tube AsiapacLatamMiddleEastAfrica ≈ Midteen Nu
Slide 12: 2016: Transformation continues towards our 2020 ambition
2016: Transformation continues towards our 2020 ambition 2015 2016 … GROWTH PROFIT AGILITY CONSISTENCY 12
Slide 13: 2016 guidance confirmed
2016 guidance confirmed 2016 GUIDANCE SALES(1) Within a range of +3% to +5% RECURRING OPERATING MARGIN(1) Range of +50 bps to +60 bps 13 (1) Like-for-like growth
Slide 14: Appendix
APPENDIX 14
Slide 15: Q3 2016 impact of currencies & scope
Q3 2016 impact of currencies & scope Fresh Dairy Early Life Medical Q3 2016 Waters Total Products Nutrition Nutrition Reported sales growth (1.1)% (5.7)% (1.1)% +3.6% (1.8)% Currency (4.4)% (5.7)% (1.8)% (3.8)% (4.1)% Scope of consolidation +1.1% +0.1% (1.0)% (2.3)% +0.2% Like-for-like sales growth
Slide 16: Changes in exchange rates
Changes in exchange rates 27.4% of Q3 2016 sales denominated in € % total Q3 16 Q3 16 vs Q3 15 sales (avg) US dollar 12.3% (0.4)% Chinese yuan 6.9% (5.9)% Russian ruble 6.5% (2.5)% Indonesian rupiah 6.0% 5.0% British pound 5.2% (15.6)% Mexican peso 4.8% (12.7)% Brazilian peso 4.3% 8.5% Argentine pes
Slide 17: Financial indicators not defined in IFRS
Financial indicators not defined in IFRS Like-for-like changes in Sales, recurring operating income, recurring operating margin, Recurring net income and recurring EPS reflect Danone's organic performance and essentially exclude the impact of: changes in consolidation scope, with indicators relate
Slide 18: Financial indicators not defined in IFRS
Financial indicators not defined in IFRS Recurring net income (or Recurring net income – Group Share) corresponds to the Group share in the Total Recurring net income. Total Recurring net income measures Danone’s recurring performance and excludes significant items that, because of their exceptional