Danone Sa · EURONEXT:BN
Danone Sa — Deutsche Bank Global Consumer Conference 2013
23 slides from Danone Sa's conference presentation, Jun 12, 2013
Slide 1: Deutsche Bank Global Consumer Conference
Pierre-André Terisse Deutsche Bank Global Consumer Conference Paris - June 12th, 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: 2012 a step change
2012 a step change > 60% sales > € 20 bn sales in growth markets Global sales evolution €20 bn Sales evolution by geographies 59% 60% 56% €15 bn 3 54% 55% 53% 47% 46% 45% 44% 41% 40% Europe (exc.CIS) (incl. Noram Growth markets (inc.US&CIS) & CIS) 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 20
Slide 4: Group equation
Group equation 2012 key figures TOPLINE MARGIN LFL LFL % margin margin % Group Sales Growth change 39% ALMA + 15.7% 14.8% + 31 bps NORAM 21% & CIS + 6.7% 10.2% + 144 bps 40% EUROPE -3.0% 15.7% - 190 bps TOTAL + 5.4% 14.18% - 50 bps 4
Slide 5: 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 5
Slide 6: Plan for competitiveness in Europe
Plan for competitiveness in Europe EUROPE – 26 countries ADAPT & SAVINGS SIMPLIFY & €200mln ORGANISATION & PROCESSES REGAIN COMPETITIVE EDGE 6 6
Slide 7: Restoring growth in Europe: Example in Dairy Portugal
Restoring growth in Europe: Example in Dairy Portugal Stronger brand identity + better The right price formula + ownable pack Renovation of Corpos Danone, core range and Dan’up €1.99 €1.99 €1.99 Innovation 7
Slide 8: Restoring growth in Europe: Example in Dairy France
Restoring growth in Europe: Example in Dairy France Stronger brand identity + better formula + A full activation model ownable pack CRM program Promo Sales A key innovation : Danette Le Liégeois The right price €1.00 8
Slide 9: NORAM & CIS
NORAM & CIS 2 major engines focused on Fresh Dairy Products CIS NORAM 12%#1 Group Sales 10% Group Sales # 1 Fresh Dairy Products # 1 Fresh Dairy Products ca. 35% market share ca. 32% market share Source : IRI / Nielsen 9
Slide 10: US: Further building the Greek yogurt segment
US: Further building the Greek yogurt segment Greek segment latest innovations Fresh Dairy category - Value market shares by segment Greek Core Light Kids Active Health 2011 2012 YTD 2013 Greek yoghurt segment - Value market shares Competitor 1 Danone Competitor 2 Competitor 3 2011 2012 YTD 2013 Sou
Slide 11: Happy Family: Investing in premium organic baby food
Happy Family : Investing in the fast growing premium organic Baby food in the United States CAGR US Weaning Food Market 2010-2012 $1.5 bn +1% 81% 79% 89% 86% +38% 19% 21% 11% 14% 2010 2011 2012 Last 52 weeks Organic Non-Organic Source : Nielsen US Baby Food Category March, 16 2013 and Danone Estimat
Slide 12: Leveraging our strong platform in CIS
Leveraging our strong platform in CIS Continuous strong growth of key brands Solid volume growth Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Double digit Solid margin evolution growth YTD 1 2 2011 2012 12
Slide 13: ALMA: Continuing to build the Fresh Dairy Products category
ALMA: Continuing to build the Fresh Dairy Products category LatAm #1 Africa Middle-East #1 Asia Pacific #8 PCC: 5-8 kg PCC: <3 kg PCC: <3 kg Started 2009 Started 2008 Started 2010 Started 2009 # 1 position Other position Source : Euromonitor & Internal estimations 13
Slide 14: China: combining strengths to unlock Fresh Dairy potential
China: combining strengths to unlock Fresh Dairy Products market potential Fresh Dairy Products in China X2 #1 in liquid milk products #1 in yogurt €5bn mid-teens Nation-wide sourcing, manufacturing & CAGR distribution platform 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source : Euromoni
Slide 15: Centrale Laitière: A key step in North Africa
Centrale Laitière : A key step in North Africa The leading dairy player in Morocco High single digit FDP market growth 2007-2013 value #1 in Milk (volume MS : ca. 60%) CAGR: +8% #1 in Fresh Dairy Products (volume MS : ca. 55%) 70 000 points of sales in Morocco 2012 net sales of 604M€ 2012 EBITDA
Slide 16: ALMA Baby Nutrition: big opportunity ahead
ALMA Baby Nutrition: big opportunity ahead LatAm Africa Middle-East Asia Pacific PCC IMF: ca. 3 kg #5 PCC IMF: <1 kg #2 PCC IMF: ca. 5 kg #1 Started 2011 # 1 position Other position All data for Infant Milk Formula market / Source : Euromonitor & Internal estimations / PCC population 0-36 months 16
Slide 17: Baby Nutrition China: accelerating double-digit growth
Baby Nutrition China : accelerating double-digit growth with 3 key initiatives Sales growth evolution in Greater China 1. Dumex Relaunch Mainland 2. Full entry in Hong Kong 3. E-tailing management 2009 2010 2011 2012 1 2 3 17
Slide 18: ALMA Waters: a portfolio of strong businesses
ALMA Waters: a portfolio of strong businesses China > 370 000 points of sales in 250 cities #1 in Mexico > 420 000 points of sales Started 2010 Started 2008 #1 in Indonesia > 10 bn liters #1 in Argentina > 2 bn points of sales Source : Internal # 1 position Other position 18
Slide 19: Aquadrinks: unlocking the potential of the category
Aquadrinks: unlocking the potential of the category 20% CAGR 2008 2009 2010 2011 2012 Like-for-like sales growth 19
Slide 20: A unique mission: Bring health through food
A unique mission : “Bring health through food to as many people as possible” EUROPE NORAM & CIS ALMA 2007-2012: from 600mln to 900mln Danone consumers 20
Slide 21: 2013-2014 Vision
2013-2014 Vision 2013 a year of transition 2014 back to Europe : Strong Adapt & fix Sustainable – Savings & competitiveness – Value for consumers Growth markets : Invest & leverage 21
Slide 22: 2013 Objectives
2013 Objectives 2013 objectives Sales growth (1) At least 5% Trading operating -30bps to -50bps margin(1) Around € 2 bn Free cash-flow (2) Ex exceptionnal items (1) Like-for-like : Based on constant scope of consolidation and constant exchange rates (2) Free cash-flow: Cash flow from operations less
Slide 23: DANONE
DANONE
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