Danone Sa · EURONEXT:BN

Danone Sa — Investor Day (November 2015)

63 slides from Danone Sa's investor day presentation, Nov 18, 2015

  1. Slide 1: Healthy Hydration, Healthy Growth

    a HEALTHY HYDRATION, HEALTHY GROWTH Francisco CAMACHO

  2. Slide 2: Table of Contents

    = TABLE OF CONTENTS AQUADRINKS MARKET TRENDS OUR GROWTH AS AHEALTHIER & OPPORTUNITIES LEVERS OPTION THE RESULTS A CONSISTENT FORTIFY PLAIN STRATEGY WATER ©) INVESTOR SEMINAR 2015 - EVIA DANONE

  3. Slide 3: Summary

    =m SUMMARY ® Sustained topline growth: sales CAGR 10-14 +9.9%; +8.5% end September 2015 @ All geographies, all categories (Plain Water, Aquadrinks) driving the Division; with China transitioning ® Strong performance in mature markets @ We will continue to consistently implement our proven strategy,

  4. Slide 4: The Results

    01 THE RESULTS

  5. Slide 5: A Sustained Momentum

    A SUSTAINED MOMENTUM SALES GROWTH 5.3% 15.7% a | 2010 2011 2012 2013 2014 DANONE

  6. Slide 6: Maintaining Sustainable Pricing/Mix

    * MAINTAINING SUSTAINABLE PRICING/MIX DIFFERENCE VALUE-VOLUME 2010 2011 INVESTOR SEMINAR 2015 - EVIAN 2012 2013 2014 8.5% 3.6% mm Vol i Value 4.9% YTD Sept’15 DANONE

  7. Slide 7: Emerging countries / Mature countries

    Emerging countries Mature countries

  8. Slide 8: A More Balanced Portfolio

    A MORE BALANCED PORTFOLIO EVOLUTION, SALES SPLIT 2010 2014 ay» ... ca Mi Sparkling Mm) HOD / MB) Aquadrinks /\\ INVESTOR SEMINAR 2015 - EVIAN DANONE

  9. Slide 9: Aquadrinks: Capitalizing on growth potential

    &) AQUADRINKS: Capitalizing on growth potential SALES GROWTH 2,400 — 2,000 + 1,600 — 2010 2011 2012 2013 2014 DANONE

  10. Slide 10: Plain Water: Also performing strongly

    Hi PLAIN WATER”: Also performing strongly SALES GROWTH 2,700 — 2,500 — 2,300 + 2,100 — 1,900 — 1,700 4 1,500 2010 2011 * lain water = still water + HOD + sparkling water NVESTOR SEMINAR 20 2012 2013 2014 DANONE

  11. Slide 11: We Continue to Win Market Share

    as WE CONTINUE TO WIN MARKET SHARE IMPROVEMEN OF > *80b0] ai IMPROVEMENT 2013 2014 YTD YTD H a fee Danone Waters MS in value Sept'l4 Sept'tS STOR SEMINAR 20 EVIAN DANONE

  12. Slide 12: In China, Mizone Has Become a Strong Brand

    IN CHINA, MIZONE HAS BECOME A STRONG BRAND, WITH SOLID FOUNDATIONS SALES GROWTH - M RMB NUMERIC DISTRIBUTION CAGR : inone EI +4414 | was rst “all a N 2008 2009 2010 2011 2012 2013 2014 @) Sources: Retail Audit / Equity Tracking Top China cities, Aug 2015 "Sept 13 Aug 15 BRAND EQUITY Loyalty Rate ron

  13. Slide 13: In China, Retail Sales of Consumption Goods

    < IN CHINA, RETAIL SALES OF CONSUMPTION GOODS GROWTH IMPACTED BY GDP GROWTH SLOW DOWN GDP increase % - China @,13.0% 10.4% 8.7% oN 2% Lees 8 Retail Sales of Consumption Goods increase % - China 25. % iN 5.4 hoo 43% e"15.5% oon? 12.7% 9 wl 2.0% — \ 6.2% @ 2007 2008 2009 2010 2011 2012 2015 2014 is J

  14. Slide 14: We Are Actively Transitioning Mizone

    St WE ARE ACTIVELY TRANSITIONING MIZONE © By protecting and keep building strong brand equity By monitoring and adjusting distributors inventory and co-packers forecasts e Bycorrectly sizing our organization By continuing leveraging innovation and activation plan © DANONE

  15. Slide 15: Slide 15

  16. Slide 16: The Beverage Category Is Changing

    ~ THE BEVERAGE CATEGORY IS CHANGING, WITH NEW OPPORTUNITIES FOR GROWTH 2>@00 BE MORE DISTRIBUTED BE MORE BE MORE BE MORE BE MORE IN PROXIMITY STORES NATURAL wate INTERACTIVE INNOVATIVE ACCESSIBLE

  17. Slide 17: NABS Market Growth Predicted to Continue

    NABS MARKET GROWTH PREDICTED TO CONTINUE IN THE FUTURE, BIGGEST OPPORTUNITY WITHIN BOTTLED WATERS €600bn wy) €400bn 5%) Te) a | of) © Bottled Water Other NABS. 2013 2020 © O15 - EVIAN DANONE €800bn

  18. Slide 18: Carbonated Drinks Losing Momentum

    CARBONATED DRINKS LOSING MOMENTUM, CREATING SWITCHING OPPORTUNITIES FOR HEALTHIER OPTIONS SALES VALUE Carbonated Drinks FAST GROWING CATEGORY Aquadrinks Still Drinks | ts Still Drinks RTD Tea Bottled Water 2005 2013 2020 © DANONE

  19. Slide 19: Slide 19

  20. Slide 20: Slide 20

  21. Slide 21: We Have Water at Our Core

    3 “WE HAVE WATER AT OUR CORE WE BELIEVE THAT WATER IS THE HEALTHIEST

  22. Slide 22: We Make Healthier Easier

    WE MAKE HEALTHIER EASIER WE BELIEVE HEALTHIER IS EASIER IF PRODUCTS TAST! (AND ARE EXCITING TO DRINK

  23. Slide 23: Slide 23

  24. Slide 24: Our Growth Levers

    OUR 4 GROWTH LEVERS BRAND ACTIVATION & WATER EQUITY INNOVATION CONSUMER INTERACTION AQUADRINKS © DANONE

  25. Slide 25: Fortify Plain Water

    05 | FORTIFY PLAIN WATER Za

  26. Slide 26: Fortify Plain Water

    © FORTIFY PLAIN WATER STRONG —_— INNOV- ACTION ENGAGING CONSUMERS IN THEIR DAILY LIFES STRONG BRANDS STRONG CATEGORY BUILDING BRAND EQUITY THROUGH ESTABLISHING WATER AS THE UNIQUE AND MEANINGFUL CONTENT HEALTHIER HYDRATION OPTION (GEE > Doing GOOD by doing WELL Sustainable Resources and Ecosystem ma

  27. Slide 27: Zywiec Zdroj Commitment to Nature

    © BRAND BUILDING IN POLAND ZYWIEC ZDROJ COMMITMENT TO NATURE FOR A MEANINGFUL BRAND NATURE CARES FOR YOU RESULTS o) 7 => +12% f SALES POLAND, ZYWIEC ZDROJ YTD sept’15 VS 14, BADZ PO STRONIE NATURY ZZ CARES FOR NATURE BUILDING STRONG EQUITY (2015 VS 2014) TOPOFMIND:+3PP —_| LOVE THIS BRAND+6PP. BOUGH

  28. Slide 28: Zywiec Zdroj Nature

    & HUMAN ZYWIEC ZDROJ NATURE © NVESTOR SEMINAR 2015 - EVIAN DANONE

  29. Slide 29: Healthy Hydration Education with AdaAQUA

    © BRAND BUILDING IN INDONESIA HEALTHY HYDRATION EDUCATION WITH AdaAQUA RESULTS >+15% SALES INDONESIA, YTD sept 15 VS ‘14 #AdaAQUA A youthful campaign platform to stimulate consumption on the go with a strong reason to believe... rg) INVESTOR SEMINAR 2015 - EVIAN DANONE

  30. Slide 30: AdaAQUA Indonesia

    © HEALTHY HYDRATION EDUCATION AdaAQUA AdaAQUA INDONESIA INDONESIA

  31. Slide 31: Innovation in Spain

    INNOVATION IN SPAIN ALLOWING KIDS TO ENTER THE CATEGORY IN A FUN WAY Kips ‘SEGMENT RESULTS 22% > 415% Ferenc SALES SPAIN, YTD Sept 15 VS ‘14. NVESTOR SEMINAR 20 EVIAN DANONE

  32. Slide 32: Innovation in Packaging

    INNOVATION IN PACKAGING ICONIC PACKAGING

  33. Slide 33: Brand Activation

    BRAND ACTIVATION DANONE

  34. Slide 34: Healthy Hydration Education

    HEALTHY HYDRATION EDUCATION BONAFONT - TE CACHE INVESTOR SEMINAR 2015 - EVIAN DANONE

  35. Slide 35: Slide 35

  36. Slide 36: Aquadrinks in Mexico

    =H AQUADRINKS IN MEXICO BONAFONT LIGHT PLEASURE & LOCAL FLAVORS wal > 414% >+ (0) TOTAL SALES BOTTLE MEXICO YTD Sept 15 VS 14 5 DANONE

  37. Slide 37: Roll-out of Juicy/Levite

    © AQUADRINKS ACCELERATION ROLL-OUT OF JUICY/LEVITE PANQUEQUE TOMATELAS ARGENTINA ARGENTINA DANONE

  38. Slide 38: Brand Activation in Aquadrinks

    95 BRAND ACTIVATION IN AQUADRINKS ACTIVATING TARGETS BONAFONT ©) DANONE

  39. Slide 39: Brand Activation in Aquadrinks

    95 BRAND ACTIVATION IN AQUADRINKS ALLOWING KIDS TO ENTER CATEGORY BY SENDING RIGHT MESSAGE TO PARENTS RAYITA ©) DANONE

  40. Slide 40: Innovation in Aquadrinks

    96 INNOVATION IN AQUADRINKS SPARKLING JUICED DANONE

  41. Slide 41: To Summarize

    “= TO SUMMARIZE We are delivering results and we are well positioned to capture market opportunities, with strong WATER BRANDS, and strong AQUADRINKS PLATFORM. 1 2 FORTIFY CAPTURE SWITCHING PLAIN WATER NABS TRENDS OUR 4 GROWTH LEVERS TO SUCCEED WATER EQUITY INNOVATION BRAND ACTIVATION & AQUADRINKS H

  42. Slide 42: Slide 42

  43. Slide 43: Successful Transformation for Profitable Sustainable Growth

    | SUCCESSFUL TRANSFORMATION FOR PROFITABLE SUSTAINABLE GROWTH Véronique PENCHIENAT|

  44. Slide 44: €!

    €! DANONE

  45. Slide 45: EVW: A Unique Organisation

    m EVW A UNIQUE ORGANISATION ™ 2900 Danoners = 20 Locations ™ 25 Nationalities = 120 Countries ™ 450 Sales people = 170 Distributors ™ 100 bottles consumed every second ™ 4 French MW sources and brands = 4 Country Business Units - France-Benelux, UK, DACH, Noram = One export BU EVI INVESTOR SEMINAR 2

  46. Slide 46: Business units and centralised support functions

    4 top line business units 1 export business unit Centralised support functions Sources and operations Finance Corp. Affairs HR R&D Quality Centralised brands Sales

  47. Slide 47: We Operate in Markets with Strong Growth Potential

    m WE OPERATE IN 2 MARKETS - PREMIUM WATER AND HEALTHY NAB’S - WITH STRONG GROWTH POTENTIAL Plain bottled water 151€ bn EVW playground in Europe EVW playground EVW playground EVW playground in ROW in ROW In 4 BUS territory! Packaged Water (Including Flavoured & Juicy Water drinks) Healthy NAB’s defin

  48. Slide 48: A Consistent Sales Growth Improvement

    m A CONSISTENT SALES GROWTH IMPROVEMENT OVER THE PAST YEARS MAINLY DRIVEN BY EUROPE EVW 6% 5% 4% 1% a L] Contributors to growth 0% «3 = 2013 2014 2015 EVW EUROPE 6% 5% 2012 2013 2014 2015 INVESTOR SEMINAR 2015 - EVIAN DANONE 3% 2%

  49. Slide 49: Our Strategic Pillars

    a OUR 4 STRATEGIC PILLARS CATEGORY VALORISATION INVESTOR SEMINAR 2015 - EVIAN DANONE

  50. Slide 50: Category Valorisation

    CATEGORY VALORISATION ‘Our sustainability * ‘ramework HEALTHY HEALTHIER HYDRATION HABIT CHOICES FOR KIDS = a Promoting water as best way to hydrate for " Protection of water resources = Water access programm * Packaging optimisation (RPET, bio based) * CO, reduction " Waste collection programm adult

  51. Slide 51: Unique and Meaningful Brands

    BADOIT) UNIQUE AND MEANINGFUL BRANDS . INNOVATION AS DRIVER OF VALUE CREATION . MIX MANAGEMENT THRU FORMATS / CHANNELS . REVENUE GROWTH MANAGEMENT / REFRAMING IN MODERN TRADE ©) INVESTOR SEMINAR 2015 - EVIA DANONE

  52. Slide 52: A Full Renovation of Our Brands

    =m A FULL RENOVATION OF OUR BRANDS = & & = = 2 Dp» = Pl ~~ “he a 2460 , 3a an, wae | DANONE

  53. Slide 53: Individual formats innovation / Services innovation

    Individual formats innovation Services innovation

  54. Slide 54: New Profitable Business Model in Away From Home

    =| NEW PROFITABLE BUSINESS MODEL IN AWAY FROM HOME f°) Low value returnable glass | 50% sales on prestige range DANONE

  55. Slide 55: A Step Change in Brands Activations

    m& A STEP CHANGE IN BRANDS ACTIVATIONS DANONE

  56. Slide 56: Internet 2015

    Internet 2015 : > 1.5 M fans Facebook media investments x3

  57. Slide 57: Touchpoint Activation Social

    REACH REACH ENGAGE Touchpoint SELL Activation Social Day to day engagement eCommerce

  58. Slide 58: Fortify core business in Europe

    Fortify core business in Europe Accelerate growth in US and Export Business Double digit growth in high value channels: on premise, convenience, on the go City-Hot spots strategy © INVESTOR SEMINAR 2015 - EVIAN DANONE

  59. Slide 59: High Value Channels

    @ HIGH VALUE CHANNELS Ange 1) Airports acceleration , $3 50% : a 2 2) City plans : Paris / London / NAY Ay re , ; | Shanghai / New York fo: mputse + 3) On premise > +10% CAGR On premise growth ©) impuise > 10% Paaoe J >3X Modern Trade Growth 6 Deliver our e-commerce ambition +80% KA TMau.com amazon

  60. Slide 60: Aquadrinks

    DEVELOP VOLVIC AS # 2 NAB IN EUROPE IMPULSE CHANNELS ACCELERATION . PREFERRED FLAVOURS . UNIQUE ACTIVATIONS . INNOVATION ON NEW CATEGORIES (juicy sparkling, infused water) ©) INVESTOR SEMINAR 2015 - EVIAN DANONE

  61. Slide 61: Levers for Incremental Growth

    m@ 3 LEVERS FOR INCREMENTAL GROWTH Capitalise on Unique and differentiating Capture switching Water activation from NABS Volvic EAU MINERALE v Megabrand activations v Through the year v Flavour Strategy 3 v Signature v¥ Smart investment v Sugar strategy otic v Visual consistency v Impulse channels v

  62. Slide 62: An In Depth Transformation

    = ANIN DEPTH TRANSFORMATION SALES/L €/t COGS/SALES (%) OVERHEAD COSTS/SALES 2012 2013 2014 2015 2012 2013 2014 2015 2012 2013 2014 2015 (— PROFITABLE SUSTAINABLE GROWTH (— VALUE SHARE INCREASE Growth % Trading operating 20% 5% margin % >x15 _ 4% 3% 15% 2% % a 0% | 202 20 ao aos U 2014 2015 2012 2013

  63. Slide 63: One Mission

    = ONE MISSION INSP ED “<< BY-DANONE we CATEGORY inspire healthier hydration to ae gaat the world through our most desirable, natural and premium water-based brands. We preserve for eternity the exceptional origins of our sources ‘ aaa ys Satta INVESTOR SEMINAR 20 DANONE

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