Danone Sa · EURONEXT:BN
Danone Sa — Kepler Cheuvreux Autumn Conference 2013
29 slides from Danone Sa's conference presentation, Sep 18, 2013
Slide 1: Kepler Cheuvreux Autumn Conference, Paris
Pierre-André Terisse Chief Financial Officer Kepler Cheuvreux - Autumn Conference Paris – September 18th, 2013
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: A unique mission
A unique mission BRING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE 3
Slide 4: Clear priorities
Clear priorities 2013 a year of transition 2014 back to Europe : Strong Adapt & fix – Savings & competitiveness – Value for consumers Growth markets : Invest & leverage 4
Slide 5: H1 Results in line with priorities
H1 Results in line with priorities H1 2013 Results figures Sales breakdown Growth Markets Europe Sales Sales 6.9 bn 4.2 bn +13.5% like-for-like(1) -4.0% like-for-like(1) 38% Trading operating margin 62% Trading operating margin 12.8% 14.3% +10bps like-for-like(1) -118bps like-for-like(1) (1) Like-fo
Slide 6: Europe: First positive signals
Europe : First positive signals EUROPE TOPLINE H1 2012 H2 2012 H1 2013 (1.7%) (4.5%) (4.0%) 6
Slide 7: Europe: Our roadmap to restore growth
Europe : Our roadmap to restore growth The best packaging The right The best organization product The right price point Differentiating innovation 7
Slide 8: Dairy Europe: first signs of stabilization
Dairy Europe : first signs of stabilization Breakdown volume / value growth (%) Value market shares Spain Portugal Italy France UK Germany Q4 12 Q1 13 Q2 13 8
Slide 9: Plan for competitiveness in Europe moving on target
Plan for competitiveness in Europe moving on target EUROPE – 26 countries ADAPT & SAVINGS SIMPLIFY & €200mln ORGANISATION & PROCESSES REGAIN COMPETITIVE EDGE 9
Slide 10: Noram & CIS: Leveraging and building strong platforms
Noram & CIS : Leveraging and building strong platforms TOPLINE 8.2% 9.3% 5.3% NORAM & CIS H1 2012 H2 2012 H1 2013 10
Slide 11: Fresh Dairy US: Greek yogurt becoming a component of diet
Fresh Dairy US : Greek yogurt becoming a component of Americans’diet Greek segment latest innovations Fresh Dairy products category Value market shares by segment Greek 46.5% Core 24.5% Light Competitor 1 Kids 12.5% 38.3% Greek yogurt segment Danone 9.3% Value market shares 30.6% 6.8% Active Health
Slide 12: Strategic Agreement with Starbucks to develop yogurt consumption
Strategic Agreement with Starbucks to develop yogurt consumption Create and Develop an Exclusive Line of Evolution Fresh, Inspired by Dannon- branded Fresh Dairy Products 2014 : Ready-to-eat Greek yogurt parfait in 11,000 U.S. Starbucks stores 2015 : Roll-out in U.S grocery channels Additional regio
Slide 13: YoCrunch acquisition to access new segment
YoCrunch acquisition to access new segment and expand offer Market leader in yogurts with toppings Co-branded originals A unique know-how in compartmentalized packaging Yo Crunch Developing the category by offering kids new ways to enjoy yogurt Sustained double-digit growth in recent years All famil
Slide 14: ALMA: Leveraging platforms and preparing the future
ALMA : Leveraging platforms and preparing the future TOPLINE ALMA 16.7% 15.9% 14.7% H1 2012 H2 2012 H1 2013 14
Slide 15: ALMA: Leveraging platforms and preparing the future
ALMA : Leveraging platforms and preparing the future Building and leveraging strong platforms Nurturing seeds for growth 15
Slide 16: Fonterra: Precautionary recall in 8 markets
Fonterra : Precautionnary recall in 8 markets 2nd August 2013 : some batches of whey protein concentrate supplied by Fonterra suspected of containing Clostridium Botulinum Danone immediately recalled all finished products potentially related to incriminated batches. Internal & external tests on reca
Slide 17: Action plan to restore sales in recall countries – China
Action plan to restore sales in recall countries – China example Sales in recall countries significantly impacted during recall TVC & press campains On pack sticker « Dumex is safe to use » « This pack is tested & cheked » Action plan to restore sales : Chinese example KMBS/NKA joint announcement :
Slide 18: Waters Brazil: The next emerging market
Waters Brazil : The next emerging market Bonafont – a market leader in Sao Paulo area 3x Competitor 1 Launch of HOD last year Competitor 2 Competitor 3 Set in 2009 2010 2011 2012 2013(E) 2008 Source: MT SHARE – VOLUME – IPANEL GSP 18
Slide 19: Baby Brazil: Developing market from a challenger position
Baby Brazil : Developing market from a challenger position 2007-2013 achievements 2007-2013 action plan DBN value market share 22.5% 21% 18% 15% Creating Category 13% Recognition (Credibility) 11% 7% Leading Category Innovation 2007 2008 2009 2010 2011 2012 YTD 2013 Improving Presence DBN Sales evol
Slide 20: Baby India: Developing market from a challenger position
Baby India : Developing market from a challenger position A PCC far below other Asian Countries Clear roadmap for integration & development Quality & sourcing Population 1.3 bn 240 mln 1.2 bn Relevance Births/year 15 mln 4 mln 25 mln Enriching HCPs with the right knowledge & services PCC IFFO 12 kg
Slide 21: Dairy South Africa: Reaching more consumers
Dairy South Africa : Reaching more consumers PCC potential down the Export to 10 countries pyramid Relevant innovation Sales evolution Ultramel : 7 months shelf-life Mayo (adults): +14% CAGR Nutriday : 3 months shelf-life 3 months shelf-life 2007 2008 2009 2010 2011 2012 2013e 21
Slide 22: Conclusion
DANONE CONCLUSION 22
Slide 23: Plenty of growth opportunities for now and the future
Plenty of growth opportunities for now and the future N° 2 Fresh Dairy N° 1 Waters N° 1 Fresh Dairy N° 1 Baby Nutrition N° 1 Medical Nutrition N° 1 Medical Nutrition N° 2 Baby Nutrition N°1 Fresh Dairy N° 1 Fresh Dairy N° 1 Fresh Dairy N° 1 Waters N° 1 Waters N° 1 Baby Nutrition N° 1 Baby Nutrition
Slide 24: 2013 objectives
2013 objectives 2013 objectives Sales growth (1) At least 5% Trading operating margin(1) -30bps to -50bps Free cash-flow excluding exceptional items (2)(3) Around € 2 bn (1) Like-for-like : Based on constant scope of consolidation and constant exchange rates (2) Free cash-flow excluding exceptional
Slide 25: %. Kepler
%. Kepler dV, Cheuvreux
Slide 26: Notes
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Slide 27: Notes
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Slide 28: Notes
‘2 DANONE 28
Slide 29: %. Kepler
%. Kepler dV, Cheuvreux