Danone Sa · EURONEXT:BN
Danone Sa — Deutsche Bank Global Consumer Conference 2018
28 slides from Danone Sa's conference presentation, Jun 13, 2018
Slide 1: Deutsche Bank Global Consumer Conference
Deutsche Bank Global Consumer Conference June 13, 2018 Cécile Cabanis Bernard Ducros I 1 I
Slide 2: Delivery and Transformation to Create Sustainable Value
Delivery and Transformation to Create Sustainable Value Cécile Cabanis CFO I 2 I
Slide 3: Our strategic ambition, our core philosophy
Our strategic ambition, our core philosophy Leading the way to create and share sustainable value Healthier Responsible eating and drinking business stewardship I 3 I
Slide 4: An unparalleled health-focused portfolio
An unparalleled health-focused portfolio Fully aligned with the Food revolution throughout consumers’ lifespan 29% 52% 19% Specialized Nutrition Essential Dairy and Plant-Based Waters 7.1 bn€ 4.5 bn€ 8.4 bn€ 4.6 bn€ 88% of volume sold recommended for daily consumption (1) (1) Refers to water, yogurt
Slide 5: Superior growth profile as consumers move to healthier food and nutrition
Superior growth profile as consumers move to healthier food and nutrition Our categories outperform the industry average Growth profile by category – 10-year forecast to 2022 +9% +8% +8% +7% +7% +6% +6% Average +5% +5% Food & +4% +4% Beverage +4.5% +3% +2% +1% Water Flavored Organic Baby Plant-based
Slide 6: Unique brand portfolio, creating value in a responsible way
Unique brand portfolio, creating value in a responsible way Meeting consumer demand for more sustainable, authentic products -10.5% reduction 58% of clean in CO2 emissions full water scope(1) returned to nature(2) 30% of 30% global sales of global sales 2 US flagship dairy 14% recycled PET brands No
Slide 7: New consumer preferences are transforming our industry
New consumer preferences are transforming our industry Transition from mass volumes to lifestyle purchase decisions Our environment Our transformation ▪ Local, authentic, natural Products 58% ▪ From multi-packs to single serve 1/3 of value consumption of growth driven ▪ Committed and accountable fro
Slide 8: Making strategic progress in every business unit
Making strategic progress in every business unit Stronger capabilities in operational execution Q117 Q217 Q317 Q417 Q117 Q217 Q317 Q417 Q118 Q118 +17.8% +0.8% +10.3% +8.4% +14.5% -0.4% -0.2% +7.6% +5.2% +5.6% -2.2% -0.8% -0.3% +4.2% -2.8% -2.9% -1.7% +1.8% +0.3% -2.3% Q117 Q217 Q317 Q417 Q118 Q117 Q
Slide 9: Growth model driven by value
Growth model driven by value Premium innovations and resilient pricing contribute to enhanced value Like-for-like New Danone sales growth Portfolio valorization from premium innovations and resilient pricing Volume Value (Price/Mix) +3.9% +3.8% +3.5% +3.1% +0.9% +1.1% -0.2% -1.4% 2015 2016 2017 Q1 2
Slide 10: Operational efficiency and financial discipline as key performance drivers
Operational efficiency and financial discipline as key performance drivers Consistent EPS growth and balanced investment over the cycle Our financial track record How we delivered Life-for-Like +4.7% +4.4% Organization and Efficiency sales +2.9% +2.5% growth(1) 2014 2015 2016 2017 14.4% 13.8% Recurr
Slide 11: Managing near-term regional trends
Managing near-term regional trends Discipline and agility to navigate emerging markets volatility Political Regulation Boycott uncertainties I 11 I
Slide 12: Geared to accelerate towards 2020 objectives
Geared to accelerate towards 2020 objectives 2018: a year of execution and delivery 2020 2018 2020 Strategic priorities Like-For-Like 4-5% Sales 1 Accelerate growth growth 2018 objective Recurring operating >16% DOUBLE-DIGIT margin 2 Maximize efficiencies RECURRING EPS Consistent recurring GROWTH EP
Slide 13: Creating value in Essential Dairy and Plant-Based Europe
Creating value in Essential Dairy and Plant-Based Europe Bernard DUCROS Regional VP EDP Europe I 13 I
Slide 14: Essential Dairy and Plant-Based (EDP) in Europe
Essential Dairy and Plant-Based (EDP) in Europe Business at a glance #1 in Essential Dairy and Plant-Based in Europe ~ €3.5 bn revenues Top-5 countries (1) 15 years at Danone, > 20 years at Unilever ~85% Since Apr.17 Regional Vice President EDP Europe ~15% 2014-17 GM Dairy - Russia 2009-14 GM Waters
Slide 15: Alpro: the plant-based leader in Europe
Alpro: the plant-based leader in Europe Strong fundamentals at second largest brand in EDP Europe Attractive Unique Undisputed category growth reach and footprint leadership Market size > €500m sales X2 (€bn) 1.6 only player with pan-European reach > 40% in 5 years 0.8 ~75% of sales 1 # position 201
Slide 16: Longstanding know-how in plant-based products
Longstanding know-how in plant-based products Unique expertise and technology 1899 1980 2009 2017 2018 Vandemoortele Creation Alpro sold Acquisition of Opening Pioneer of of Alpro to Dean WhiteWave new automated vegetal oils Foods by Danone warehouse and innovation pilot plant in Wevelgem I 16 I
Slide 17: The broadest plant-based offering
The broadest plant-based offering Across products, ingredients and moments of consumption I 17 I
Slide 18: Strong product innovation supporting growth
Strong product innovation supporting growth Growing consumer base and moments of consumption More organic. Adjacent More fruits. Less sugar indulging categories I 18 I
Slide 19: A large, high-growth category
A large, high-growth category Aligned with today’s consumers trends Balanced Minimally Convenient protein diet processed food healthy snacking Permissible Personalized Environmental & indulgence food Social I 19 I
Slide 20: Driving Alpro's geographical expansion
Driving Alpro’s geographical expansion Leverage Danone and Alpro’s complementary footprint Alpro - Top-4 markets in Europe #1 I 20 I
Slide 21: Expansion in France and Spain has started
Expansion in France and Spain has started Accelerated step-change in execution After 6 months Innovation Awareness Distribution Position X 2 +50 % > 50 % #2 number brand awareness weighted position(1) of Alpro SKUs in France distribution(1) after 6 months (1) In plant-based alternatives to yogurts I
Slide 22: Complementary categories and footprint with Danone
Complementary categories and footprint with Danone Leveraging the “flexitarian” momentum Plant-based French consumers buy Fresh Dairy products 25% more vs. average Source: Kantar I 22 I
Slide 23: Accelerating Dairy transformation
Accelerating Dairy transformation Engaging with a different consumer base Who buys Alpro? Know-how to Singles recruit Young fam young Older fam consumers Seniors Strong 360° marketing approach I 23 I
Slide 24: A multi-part strategy to drive value creation
A multi-part strategy to drive value creation Unique combination of platforms and expertise to accelerate growth Multi-country Consumer demographic Supporting Accelerating expansion transformation Multi-product Product of Plant-based of Dairy innovation Multi-channel Channels distribution to market
Slide 25: Combining goodness from Dairy and Plant-based
Combining goodness from Dairy and Plant-based Cross-fertilization to open unique opportunities Within next 12 months: World-class + World-class a plant-based Fermentation Plant-based offering = expertise expertise for all our Accelerated innovation major brands opportunities I 25 I
Slide 26: Accelerating Dairy transformation
Accelerating Dairy transformation From multipacks to more local, single serve and on-the-go I 26 I
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Slide 28: 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,” “fores
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