Slide 1: Q1 2014 Sales
Q1 2014 Sales April 16th, 2014 1
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: Q1 2014 - Sales Growth Analysis
Q1 2014 - SALES GROWTH ANALYSIS +2.2% (5.2%) (8.9%) Like-for-like Reported 4.1% €5,338 mln 1.5% (1.9%) €5,061 mln Q1 2013 Currency Scope & others Volume Value Q1 2014 3
Slide 4: Total Group: Bottoming on High Comps
TOTAL GROUP: BOTTOMING ON HIGH COMPS Like-for-like sales growth per quarter 6.9% 6.5% 5.6% 5.0% 5.0% 4.9% 4.2% 2.9% 2.2% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 High comps following Fonterra false alert Quarterly performance in line with roadmap, in a volatile environment 4
Slide 5: Geographical Dynamics: Like-for-like sales growth
GEOGRAPHICAL DYNAMICS: Like-for-like sales growth 0.5% (0.9%) (0.4%) EUROPE (3.0%) (5.1%) 11.1% 10.2% 10.2% 8.5% 7.8% CIS & Noram CIS+USA+Canada 16.6% 15.3% 16.1% 13.2% 12.5% ALMA AsiapacLatamMiddleEastAfrica 6.0% Actual 2.2% Excluding 0.5% 8 recall markets Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 5
Slide 6: Sales Performance by Division
SALES PERFORMANCE BY DIVISION 6 6
Slide 7: Fresh Dairy Products: Solid Growth and Milk Inflation
FRESH DAIRY PRODUCTS: SOLID GROWTH AND MILK INFLATION Like-for-like sales growth per quarter 4.6% 4.9% 3.8% 2.6% 3.9% 2.1% 2.9% 4.1% 0.7% 1.3% 0.7% 7.6% 3.9% 3.6% 2.4% 0.5% 1.4% 0.9% 1.7% Price/mix 0.2% 0.8% (0.1%) (0.7%) 0.4% (1.0%) Volume (0.3%) (3.7%) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4
Slide 8: Fresh Dairy Europe: Recovery Continues
FRESH DAIRY EUROPE: RECOVERY CONTINUES Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 (2.0%) (6.0%) Danio roll-out (10.0%) Price/mix France, Portugal, Spain, the Netherlands Volume (14.0%) Spain Portugal France Flan de Queso Italy Spain UK Germany Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 (Feb) 8
Slide 9: Fresh Dairy US: A Solid Leader Position
FRESH DAIRY US: A SOLID LEADER POSITION 40% Average value market shares Average value market shares Competitor 1 Danone(1) 30% 35% 33% Danone Competitor 1 20% Competitor 2 9% Competitor 2 9% 10% Competitor 3 2011 2012 2013 YTD 2014 2011 2012 2013 YTD 2014 (1) Danone : including Stonyfield and Yocrun
Slide 10: Fresh Dairy CIS: A Stronger Portfolio to Face Inflation
FRESH DAIRY CIS: A STRONGER PORTFOLIO TO FACE INFLATION Modern Dairy & High Margin Tradi >30% Fermented & Milk 10
Slide 11: Fresh Dairy Products – Selected innovations Q1
FRESH DAIRY PRODUCTS – Selected innovations Q1 Duo Mousse Danino Greek Argentina Activia new bottle Canada Mexico Activia Greek Light Activia Bilayer United States Russia 11
Slide 12: Waters: Sustained Strong Growth
WATERS: SUSTAINED STRONG GROWTH Like-for-like sales growth per quarter 16.4% 16.9% 12.3% 7.5% 8.7% 10.5% 6.9% 8.5% 8.6% 8.9% 3.4% 8.1% 0.6% 2.1% 3.5% 4.0% 4.6% 9.4% Price/mix 7.7% 1.5% 7.9% 7.1% 5.4% 6.0% 5.4% Volume 4.6% 3.1% Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Aquadrinks performa
Slide 13: Waters – Selected innovations Q1
WATERS – Selected innovations Q1 Evian 33cl Monsieur Madame Mizone 1L France China evian Spider-man campaign The Amazing Baby & me 2 evian World Vit Levité Mizone Fres’in Indonesia Indonesia 13
Slide 14: Early Life Nutrition: On Track
EARLY LIFE NUTRITION: ON TRACK Like-for-like sales growth per quarter 17.1% 14.3% 14.8% 14.0% 13.6% 13.5% 13.3% 11.5% 12.1% 9.3% 9.0% 6.6% 6.0% 10.8% 7.9% 7.3% 5.2% 7.0% 7.8% 6.1% 3.8% 3.6% 2.7% Price/mix (4.8%) Volume (5.9%) (7.3%) (1.0%) (2.9%) (1.3%) (6.9%) Excluding Dumex and Karicare (7.7%) (8.
Slide 15: Early Life Nutrition – Selected innovations Q1
EARLY LIFE NUTRITION– Selected innovations Q1 Dumex Standard Relaunch Blédina in pouches China France Golden Gate United Kingdom Dumex Supermix UHT Nutrilon Platinum Dumex Fruit & Veg for pregnant and lactating mothers China Vietnam Thailand 15
Slide 16: Medical Nutrition: Sustained Solid Growth
MEDICAL NUTRITION: SUSTAINED SOLID GROWTH Like-for-like sales growth per quarter 6.4% 6.7% 5.5% 6.3% 5.8% 6.4% 4.9% 0.1% 1.6% 5.2% 4.7% 0.9% 1.1% 7.1% 7.1% 7.3% 7.4% 5.9% 6.2% 4.8% 4.3% 3.6% Price/mix (0.7%) (1.0%) Volume (0.4%) (1.8%) (1.6%) Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Sol
Slide 17: Medical Nutrition – Selected innovations Q1
MEDICAL NUTRITION – Selected innovations Q1 Paediatric Nutrini Creamy Fruit Germany, the Netherlands, UK 17
Slide 18: 2014 Outlook
2014 OUTLOOK 2014 OUTLOOK 18
Slide 19: Key Priorities for 2014: In Line with Roadmap
KEY PRIORITIES FOR 2014: IN LINE WITH ROADMAP 2013 2014 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 +12.5% LFL sales growth excluding 8 recall markets Fresh Dairy Products sales growth trend evolution Estimated sales recovery path CIS&Noram sales 100 min median max growth trend evolution Off tak
Slide 20: 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-f
Slide 21: Bring Danone Back on the Agenda of a Strong, Sustainable, Profitable Growth
BRING DANONE BACK ON THE AGENDA OF A …. Strong Sustainable Profitable GROWTH H1 H2 2013 2014 21
Slide 22: Appendix
APPENDIX APPENDIX 22
Slide 23: Impact of Currencies and Scope – Q1 2014
IMPACT OF CURRENCIES AND SCOPE – Q1 2014 Fresh Dairy Early Life Medical Waters Total Products Nutrition Nutrition Reported sales growth (4.8)% +0.8% (12.6)% +1.8% (5.2)% Currency (10.0)% (9.9)% (6.9)% (3.9)% (8.9)% Scope of consolidation +1.3% +1.8% +2.0% +0.5% +1.5% Like-for-like sales growth +3.9%
Slide 24: Q1 2014 Sales by Business & Geographical Area
Q1 2014 SALES BY BUSINESS & GEOGRAPHICAL AREA Like-for-like Q1 2013 Q1 2014 € mln sales growth Fresh Dairy Products 2,952 2,809 +3.9% Waters 887 895 +8.9% Baby Nutrition 1,177 1,029 (7.7)% Medical Nutrition 322 328 +5.2% Europe 2,005 2,053 +0.5% CIS+Noram 1,163 1,154 +7.8% ALMA 2,170 1,854 +0.5% Tot
Slide 25: Q1 2014 Like-for-like Sales Growth Breakdown Volume/Value
Q1 2014 LIKE-FOR-LIKE SALES GROWTH BREAKDOWN VOLUME/VALUE Volume Price/mix Total Like-for-like Fresh Dairy Products (3.7)% +7.6% +3.9% Waters +5.4% +3.5% +8.9% Baby Nutrition (4.8)% (2.9)% (7.7)% Medical Nutrition +4.3% +0.9% +5.2% Europe (0.4)% +0.9% +0.5% CIS+Noram (3.7)% +11.5% +7.8% ALMA (2.9)%
Slide 26: Changes in Exchange Rates
CHANGES IN EXCHANGE RATES 28.9% OF SALES DENOMINATED IN € % total Q1 14 Q1 14 vs Q1 sales 13 (avg) US dollar 10.3% (3.6%) Russian ruble 10.2% (16.5%) Chinese yuan 5.4% (1.7%) Indonesian rupiah 5.2% (21.0%) British pound 5.2% 2.8% Mexican peso 5.1% (7.9%) Brazilian real 4.7% (18.7%) Argentine peso 4.
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