Slide 1: Cécile Cabanis, CFO – Paris, June 14, 2016
Cécile Cabanis, CFO Paris, June 14, 2016
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: Continuing the transformation towards our 2020 ambition
CONTINUING THE TRANSFORMATION TOWARDS OUR 2020 AMBITION 2015 2016 … Sales Within a 3-5% 7-10% range of > +5% growth(1) +3% to +5% 7-10% 6-8% > + 200bps(2) Trading operating Solid margin growth(1) improvement Yearly growth of: ● Trading operating margin ● Cash ● Recurring EPS Q1 16 +3.5% (1) Like-for
Slide 4: Rebalancing the growth model
REBALANCING THE GROWTH MODEL SUSTAINABILITY 4
Slide 5: Progressing on our key battles
PROGRESSING ON OUR KEY BATTLES Sustaining the re-acceleration Returning to growth Pursuing the transition of the Mizone brand Building a sustainable model 5
Slide 6: USA: Sustaining the re-acceleration
USA: SUSTAINING THE RE-ACCELERATION Strong recovery Clear roadmap to fuel growth Q1 16 sales growth(1) Mid-single digit ● Increase investments ● Winning the stores Strengthened leadership ● Accelerate innovations Average value market shares 40% Danone(1) 30% Competitor 1 20% Competitor 2 10% 2011 20
Slide 7: Europe: Returning to growth
EUROPE: RETURNING TO GROWTH 2014 2015 2016 PLAN FOR SAVINGS CONTINUOUS COST OPTIMIZATION & ADAPTATION STRUCTURAL PORTFOLIO OPTIMIZATION MILK MID-TERM / LONG-TERM STRATEGY BRAND REFOCUS RELAUNCH PLAN New recipe - New packaging - New emotional space PRIORITIZE VALUE- H1 16 H2 16 ADDED BRANDS 7
Slide 8: Strong growth excluding China, pursuing the transition of the Mizone brand
STRONG GROWTH EXCLUDING CHINA, PURSUING THE TRANSITION OF THE MIZONE BRAND Leverage our platforms worldwide China: transition in line with agenda ● Plain bottled water Q1 16 > +9%(1) ● Nurture brand equity ● Leverage innovations ● Adjust distributor inventories ● Aquadrinks w/o China Q1 16 > +10 %(1
Slide 9: China: Building a sustainable model
CHINA: BUILDING A SUSTAINABLE MODEL Solid underlying market trends Strong brand equities Mom & Baby specialized stores ≈ 50% of IMF market E-Commerce ≈ 30% of IMF market Modern Trade ≈ 20% of IMF market ● Leverage the international brands ● Continue to convert indirect to direct sales ● Grow in MBS
Slide 10: Continuing to build a solid model in a challenging context
CONTINUING TO BUILD A SOLID MODEL IN A CHALLENGING CONTEXT Context even more volatile & complex Efficient model to support our 2020 ambition VOLATILE UNSTABLE ● Strict discipline in resource allocation ● Perfect execution COMPLEX AMBIGUOUS More targeted approach to investment in volatile emerging ma
Slide 11: 2016 Guidance upgrade
2016 GUIDANCE UPGRADE PREVIOUS 2016 GUIDANCE NEW 2016 GUIDANCE Within a range Within a range (1) SALES of +3% to +5% of +3% to +5% TRADING OPERATING Range of +50 bps Solid improvement MARGIN (1) to +60 bps 11 (1) Like-for-like growth