Slide 1: Emmanuel Faber, CAGE Conference, London
Emmanuel Faber Vice-Chairman, Co-Chief Operating Officer CAGE Conference London – 19 March 2014
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: Bring Danone back on the agenda of strong, sustainable, profitable growth
BRING DANONE BACK ON THE AGENDA OF A …. Strong Sustainable Profitable GROWTH H1 H2 2013 2014 3
Slide 4: 2013: Strong growth dynamics across regions
2013: STRONG GROWTH DYNAMICS ACROSS REGIONS EUROPE CIS & Noram CIS+USA+Canada 16.1% 14.2% 13.2% ALMA AsiapacLatamMiddleEastAfrica Actual Excluding 8 recall markets 4
Slide 5: Key priorities for 2014
KEY PRIORITIES FOR 2014 2013 2014 Fresh Dairy Products sales growth trend evolution Estimated sales recovery path 100 min media max n CIS&Noram sales growth trend evolution Off take 2013 2014 Dec- 13 Jun-14 Dec-14 5
Slide 6: Turning around Europe
TURNING AROUND EUROPE 6
Slide 7: Completing plans in a tough economic context
COMPLETING PLANS IN A TOUGH ECONOMIC CONTEXT Europe 2013 quarterly CANN growth Europe Euro zone 0.1% -0.3% 2013 GDP growth Source : The Economist / European Commission 7
Slide 8: Europe: push for continuous improvement and transform the model
EUROPE : PUSH FOR CONTINUOUS IMPROVEMENT AND TRANSFORM THE MODEL 8
Slide 9: Europe: shaping the portfolio through innovations
EUROPE: SHAPING THE PORTFOLIO THROUGH INNOVATIONS 9
Slide 10: First ever global Activia campaign with Shakira
FIRST EVER GLOBAL ACTIVIA CAMPAIGN IN PARTNERSHIP WITH WORLD FAMOUS SUPERSTAR SHAKIRA FOR ITS NEW ‘DARE TO FEEL GOOD’ CAMPAIGN Largest-ever integrated communications campaign Launched in over 50 countries worldwide Drive the brand’s evolving healthy lifestyle positioning: inner health and well being
Slide 11: Keep winning CIS & Noram
KEEP WINNING CIS & NORAM 11
Slide 12: United States: leading the category growth
UNITED STATES: LEADING THE CATEGORY GROWTH Mln € 40% Jan 2014 Danone(1) Best ever MS since 2010 30% Competitor 1 20% Competitor 2 10% 2011 2012 2013 (1) Danone : including Stonyfield and Yocrunch Source : IRI Multi Outlet in kg (1,027 ) 12
Slide 13: Keep building a stronger CIS
KEEP BUILDING A STRONGER CIS Mln € (1,027 High single digit ) 1 3 Year CAGR CAGR +12.0% 2 Competitor 3 3 Year CAGR 4 Competitor +18.0% 5 Strong improvement “Smeshariki” Prostokvashino Activia “Bilayer” for kids “Milk in a jar” 13
Slide 14: Managing volatility
MANAGING VOLATILITY 14
Slide 15: Managing volatility: milk price and inflation
MANAGING VOLATILITY €/Ton 400 2013 milk price Impact inflation : EPS ≈5% +10% 350 300 250 200 15
Slide 16: Key productivity initiatives
KEY PRODUCTIVITY INITIATIVES Mln € 589 587 516 528 470 2009 2010 2011 2012 2013 16
Slide 17: Develop sustainable and highest quality standards sourcing
DEVELOP SUSTAINABLE AND HIGHEST QUALITY STANDARDS SOURCING Build relationship with Russian firm Damate to construct new Dairy farms plant-based plastics used by 4 brands in 7 countries 17
Slide 18: Danone: a unique model for doing business
DANONE : A UNIQUE MODEL FOR DOING BUSINESS (1,027 ) 18
Slide 19: Grow and navigate in ALMA
GROW AND NAVIGATE IN ALMA 19
Slide 20: Bringing Aquadrinks to consumers
BRINGING AQUADRINKS TO CONSUMERS New Year Fool’s Day Net gaming E-commerce Plain sparkling ALMA CIS&Noram HOD Europe Plain still Aquadrinks 2013 Margin growth : +10 bps 20
Slide 21: Brazil: strong growth across categories
BRAZIL : STRONG GROWTH ACROSS CATEGORIES 2013 performance : x3 • 28% value market share • >15% like-for-like sales growth Competitor 1 Competitor 2 Competitor 3 Set in 2008 2009 2010 2011 2012 2013 Source: MT SHARE – VOLUME – IPANEL GSP Sales evolution Sales evolution 2009 2010 2011 2012 2013 2009 2
Slide 22: Africa: leverage strong positions
AFRICA: LEVERAGE STRONG POSITIONS x 2.5 (1,027 ) 22
Slide 23: Turn early life nutrition engine back to full speed
TURN EARLY LIFE NUTRITION ENGINE BACK TO FULL SPEED 23
Slide 24: Early life nutrition: strong underlyings
EARLY LIFE NUTRITION: STRONG UNDERLYINGS 17.1% 13.5% 14.3% 14.8% 13.6% 14.0% 11.5% 12.1% 12.6% 11.6% 9.0% 7.3% 3.6% Price/mix Volume -6.9% Excluding Dumex and Karicare -8.6% 24
Slide 25: 2014: from 1 to 3 engines to drive growth in China
2014 : FROM 1 TO 3 ENGINES TO DRIVE GROWTH IN CHINA (M.RMB) 1 brand 2 lines Emotion (1) (2) Services E + Products (1) Modern Trade (2) Mum and Baby stores 25
Slide 26: Guidance: 2014 objectives
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) With no impact in 2013: (1) Like-for-like : Based on constant scope of consolidation, constant exchange rates and accounting princi
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