Danone Sa · EURONEXT:BN
Danone Sa — Barclays Back-to-School Consumer Conference 2014
29 slides from Danone Sa's conference presentation, Sep 3, 2014
Slide 1: Barclays Back-to-School Consumer Conference
Pierre-André Térisse Chief Financial Officer Barclays Back-to-School Consumer Conference Boston – September 3,2014
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: H1 2014 Highlights
H1 2014 Highlights FY 2013 Results Pierre-André Terisse 3
Slide 4: H1 2014 Key Achievements
H1 2014 KEY ACHIEVEMENTS OVERCOME MILK INFLATION INNOVATION & MIX STRENGTHEN OUR STRATEGIC IN KEY MARKETS PLATFORMS Q1 margin under pressure as a result EUROPE: Danio, evian La Goutte and Closing of COFCO Mengniu partnership: of record milk prices Looney Drinks Increased stake & Fresh Dairy JV Prici
Slide 5: Geographical Dynamics
GEOGRAPHICAL DYNAMICS EUROPE CIS & NORAM CIS+USA+Canada 16.6% 15.9% 15.3% 16.1% 13.2% ALMA 12.8% 12.7% 12.5% AsiapacLatamMiddleEastAfrica 6.0% Actual 2.2% 2.0% Excluding 1.3% 0.5% 8 recall markets H1 2013 H1 2014 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 5
Slide 6: 2014 Guidance
2014 GUIDANCE (1,027) 2014 objectives Sales growth(1) +4.5% to +5.5% (1) Stable Trading operating margin ± 20 bps Free cash-flow excluding around €1.5 bn exceptional items(2) (1) Like-for-like : Based on constant scope of consolidation, constant exchange rates and accounting principles (2) Free cash
Slide 7: H2 2014 Agenda - Deliver on 2014 Key Priorities
H2 2014 AGENDA - DELIVER ON 2014 KEY PRIORITIES TURNING AROUND EUROPE GROW AND NAVIGATE IN ALMA 2013 2014 +12.8% H1 LFL sales growth excluding 8 recall markets Fresh Dairy Products sales growth trend evolution KEEP WINNING CIS & NORAM TURN ELN ENGINE BACK TO FULL SPEED Estimated sales recovery path
Slide 8: Working on our 4 priorities
Working on our 4 priorities FY 2013 Results Pierre-André Terisse 8
Slide 9: Dairy Europe: Reinventing the Model
DAIRY EUROPE: REINVENTING THE MODEL INNOVATIONS COST REDUCTION INITIATIVES Dec 2012 Danone unveils plan for €200mln savings adaptation of the Q1 2013 Q2 2013 organizations Feb. 2013 Sevilla plant closure Q3 2013 Downsizing of theRotselaar plant Q1 2013 Q2 2013 Sales of 4 plants in Czech Republic, Bu
Slide 10: Dairy Europe: Reinventing the Model
DAIRY EUROPE: REINVENTING THE MODEL FROM : TO: 10
Slide 11: USA: Leading the Category Through Greek and Innovations
USA: LEADING THE CATEGORY THROUGH GREEK AND INNOVATIONS LEADING THE YOGURT CATEGORY PUSH INNOVATIONS AGENDA Average value market shares 40% Danone(1) 30% Competitor 1 20% Competitor 2 10% 2011 2012 2013 YTD 2014 (July) (1) Danone : including Stonyfield and YoCrunch Source: IRI Multi Outlet CO-LEADIN
Slide 12: USA: Pillars for Dannon's Future Growth
USA: PILLARS FOR DANNON’S FUTURE GROWTH Innovations Working with Engaging with our retailers partners Consumer Engagement Category Advocacy 12
Slide 13: Russia: A Strong Business with Local Roots
RUSSIA: A STRONG BUSINESS WITH LOCAL ROOTS Local brands volume >80% of total portfolio 100% local milk sourcing 100% local production 13
Slide 14: CIS: Keep Strengthening the Portfolio
CIS: KEEP STRENGTHENING THE PORTFOLIO CIS PERFORMANCE RUSSIAN SALES BREAKDOWN Price/mix Modern Dairy and Volume High Margin Tradi Stable volume dynamics Fermented & Milk Volume down double-digit Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 ADAPT COST STRUCTURE 14
Slide 15: Early Life Nutrition: Going Full Speed on New Fronts
EARLY LIFE NUTRITION: GOING FULL SPEED ON NEW FRONTS… Developing market from Investing in the fast growing a challenger position premium Organic Baby food Sales evolution 2009 2010 2011 2012 2013 Leading most of its African markets with Adapting our products to major brands Bledina and Milupa baby s
Slide 16: Keep Turning ELN China Engine Back to Full Speed
… AND KEEP TURNING ELN CHINA ENGINE BACK TO FULL SPEED STRONG ACTIVATION CAMPAIGNS SUSTAINABILITY ENABLERS Blue house exclusive launch at Walmart Build category recognition Master geographies and channels Be the closest to mums Efficient investment model to secure profitability Secure global supply
Slide 17: 2014: An Unbalanced Year
2014: AN UNBALANCED YEAR TOPLINE MARGIN Actual Forecast Forecast 120 Actual 120 110 110 +2.2% 100 100 90 90 11.27% 80 80 70 70 60 60 S1 S2 S1 S2 S1 S2 S1 S2 2013 2014 2013 2014 Negative effect of the 2013 comparison base and carryover of the Fonterra crisis Strong rebound expected in H2 2014
Slide 18: Bring Danone Back to the Agenda of A…
BRING DANONE BACK TO THE AGENDA OF A… 18
Slide 19: Danone towards 2020
Danone towards 2020 FY 2013 Results Pierre-André Terisse 19
Slide 20: A Critical Mission in a Changing World
A CRITICAL MISSION IN A CHANGING WORLD GROWING POPULATION RESOURCES SCARCITY AND VOLATILITY 7 billion 9 billion TODAY 2050 BALANCING DIETS: INCREASING FOOD SAFETY A KEY CHALLENGE OF THE WORLD & QUALITY STANDARDS 1/4 undernourished 1/3 overweight adult 1/10 obese adult 20
Slide 21: Continue the Journey: Towards 2020
CONTINUE THE JOURNEY: TOWARDS 2020 FOOD & WATER CYCLE UNIQUE MANAGEMENT ALIMENTATION BY DANONE MANAGEMENT MODEL 21
Slide 22: We Continue to Build a Unique and Relevant Approach to Food
WE CONTINUE TO BUILD A UNIQUE AND RELEVANT APPROACH TO FOOD 22
Slide 23: We Continue to Build a Unique and Relevant Approach to Food
WE CONTINUE TO BUILD A UNIQUE AND RELEVANT APPROACH TO FOOD Becoming partners in Dairy in China Strengthening Aquadrink platforms Growing Mizone Our ambition : Become the indisputable leader of Fresh Dairy in China by offering safe, qualitative and superior products through a more diversified portfo
Slide 24: Master Food & Water Cycles to Create Value: Our Essentials
MASTER FOOD & WATER CYCLES TO CREATE VALUE: OUR 3 ESSENTIALS MILK WATER PLASTICS Milk & milk ingredients Danone bottles 21 bnL Plastics represent represent c.40% of of water, consumes 36 c.20% of Danone input Danone input costs bnL of process water costs across its divisions, and Danone represents >
Slide 25: Master Food & Water Cycles to Create Value
MASTER FOOD & WATER CYCLES TO CREATE VALUE MILK WATER Manage milk price inflation Resource efficiency 440 Danone Farmgate Price evolution (€ur/Ton) 420 Waste reduction 400 380 360 -46% 340 320 Reduction of water 300 consumption since 2000 280 260 240 220 Expertise to create value for consumers Secur
Slide 26: One Danone to Reinforce Compliance and Ensure Sustainability
ONE DANONE TO REINFORCE COMPLIANCE AND ENSURE SUSTAINABILITY OF THE MODEL NO COMPROMISE QUALITY OF DESIGN Never compromise on Consumer preference food safety + 100% compliance to all Outstanding regulatory requirements product experience A DEDICATED ORGANIZATION Product compliance ZERO DEFAULT ATTIT
Slide 27: One Danone: A Unique Model
ONE DANONE: A UNIQUE MODEL UNIQUE CULTURE & VALUES DUAL ECONOMIC EMPOWERING & SOCIAL PROJECT LEADERSHIP 27
Slide 28: One Governance
ONE GOVERNANCE ONE BOARD 14 Board members 71% independent ONE CHAIRMAN ONE CEO ONE COMEX Simplified governance - Strengthened execution 28
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