Slide 1: Q3 2015 Results
Q3 2015 RESULTS October 19, 2015 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: Q3 2015 - Key Messages
Q3 2015 - KEY MESSAGES Solid set of results fully in Progress on key priorities Headwinds within line with roadmap emerging markets Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 +4.6% like-for-like 3
Slide 4: Q3 2015 - Reported Sales at +4.2%
Q3 2015 - REPORTED SALES AT +4.2% +4.6% like-for-like 3.8% 0.8% (0.2)% (0.2)% €5,641 mln €5,416 mln Q3 2014 Currency Scope & others Volume Value Q3 2015 o 9M 2015 like-for-like growth: +4.6% / reported growth: +7.2% 4
Slide 5: Total Company - Solid Performance Building a More Balanced Model of Growth
TOTAL COMPANY - SOLID PERFORMANCE BUILDING A MORE BALANCED MODEL OF GROWTH 7.5% 6.9% 4.8% 4.5% 4.6% 2.2% 2.3% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 o Solid results confirming progress on the Company’s roadmap o Continued progress towards a balanced growth model o Contrasted emerging market dynam
Slide 6: Geographical Dynamics
GEOGRAPHICAL DYNAMICS 4.8% 5.1% 2.8% 2.9% 1.8% EUROPE 0.5% 0.1% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 7.8% 7.0% 3.3% 2.8% 3.2% NORAM 2.0% CIS 0.4% USA+Canada+CIS Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 14.0% 13.5% 9.4% 8.0% ALMA 4.7% AsiapacLatamMiddleEastAfrica 2.0% 0.5% 6 Q1 14 Q2 14 Q3 14 Q
Slide 7: Fresh Dairy Products – Progressing in the Turnaround
FRESH DAIRY PRODUCTS – PROGRESSING IN THE TURNAROUND 9.8% 7.6% 7.8% 6.8% 3.9% 5.0% 3.9% 2.4% 0.7% 0.2% 2.0% 0.6% (1.0)% (3.1)% (3.3)% (3.7)% (4.8)% (7.4)% (7.1)% (7.8)% (1.1)% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Price/mix Volume o Europe confirming trajectory of recovery o Solid performance of
Slide 8: Europe Dairy – Strengthening Conditions of Profitable Growth
EUROPE DAIRY – STRENGHTENING CONDITIONS OF PROFITABLE GROWTH Europe on its trajectory towards stabilization Efficiencies RIGHT EFFICIENT PORTFOLIO SOURCING Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 PRGM Price/mix Volume Like-for-like EFFICIENT RIGHT Brands’ results OPERATIONS ORGANIZATION Positive 9
Slide 9: USA Dairy – On the Way to Reignite Growth
USA DAIRY – ON THE WAY TO REIGNITE GROWTH A growing yogurt category 4% Innovations to fit consumer needs 2% 0% Q1 15 Q2 15 Q3 15 Brands’ Q3 sales growth > +5% 9
Slide 10: CIS Dairy – Protecting the Model in a Persistent Unstable Environment
CIS DAIRY – PROTECTING THE MODEL IN A PERSISTENT UNSTABLE ENVIRONMENT Q3 brands sales growth Organizational transformation +8% o 2014: Adaptation of industrial cost structure +5% o 2015: Simplification of sales units and centralization of supporting functions +7% 10
Slide 11: Waters – Solid Growth, Transition in China
WATERS – SOLID GROWTH, TRANSITION IN CHINA 13.1% 12.3% 11.8% 10.2% 3.3% 8.9% 6.1% 3.5% 8.6% 2.0% 4.6% 6.8% 3.5% 1.1% 8.3% 9.0% 7.0% 6.6% 5.4% 5.6% 5.7% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Price/mix Volume o Strong business fundamentals supporting growth model o Continued broad-based growth in
Slide 12: Early Life Nutrition – Continued Strong Growth
EARLY LIFE NUTRITION – CONTINUED STRONG GROWTH 28.1% 19.2% 16.6% 9.3% 11.6% 11.1% 10.9% 3.8% 7.2% 7.2% 9.9% 11.5% 7.3% 4.4% 3.7% (4.8)% (7.9)% (2.9)% (1.3)% (7.7)% (9.2)% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Price/mix Volume o Solid performance in all regions o Chinese market performance contin
Slide 13: China Early Life Nutrition – Building a Sustainable Model
CHINA EARLY LIFE NUTRITION – BUILDING A SUSTAINABLE MODEL Leverage the success of international IMF market channel split brands & e-commerce dynamics ≈20-25% ≈50% ≈25-30% MBS E-commerce Modern Trade Back to ≈15% MS thanks to international brands Equivalent market share ≈15% ≈15% Fonterra false alert
Slide 14: Medical Nutrition – Steady Confirmed Dynamics
MEDICAL NUTRITION – STEADY CONFIRMED DYNAMICS 10.1% 8.7% 9.1% 7.3% 4.5% 7.1% 6.9% 2.4% 1.1% 5.6% 1.1% 5.2% 2.1% 0.9% 6.2% 5.6% 6.3% 5.8% 4.3% 5.0% 3.5% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Price/mix Volume o Positive dynamics of growth in all regions ensuring a balanced model for growth o Posit
Slide 15: Q3 2015 - Another Step Towards 2020
Q3 2015 - ANOTHER STEP TOWARDS 2020 15
Slide 16: 2015 Guidance - Anchoring the New Sustainable Model
2015 GUIDANCE - ANCHORING THE NEW SUSTAINABLE MODEL 2015 objectives Sales growth(1) 4% to 5% Trading operating margin(1) Slightly up 16 (1) Like-for-like: excludes the impact of changes in the basis for comparison, which include exchange rates and scope of consolidation
Slide 17: Appendix
APPENDIX 17
Slide 18: Q3 & 9M 2015 - Impact of Currencies & Scope
Q3 & 9M 2015 - IMPACT OF CURRENCIES & SCOPE Fresh Dairy Early Life Medical Q3 2015 Waters Total Products Nutrition Nutrition Reported sales growth (3.0)% +12.3% +12.3% +9.1% +4.2% Currency (3.2)% +5.1% +1.2% +2.0% (0.2)% Scope of consolidation (0.4)% +0.4% +0.2% +0.2% (0.2)% Like-for-like sales grow
Slide 19: Changes in Exchange Rates
CHANGES IN EXCHANGE RATES o 27.5% of 9M 2015 sales denominated in € % total 9M 15 9M 15 vs. 9M Q3 15 vs. Q3 sales 14 (avg) 14 (avg) US dollar 11.6% 21.7% 19.2% Chinese yuan 7.7% 20.0% 16.6% Russian ruble 6.9% (27.8)% (31.6)% British pound 5.8% 11.7% 10.7% Indonesian rupiah 5.6% 7.6% 1.2% Mexican pes