Slide 1: Q1 2018 Sales
Q1 2018 SALES April 18, 2018 Cécile Cabanis CFO I 1 I
Slide 2: Disclaimer
Disclaimer • This presentation contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward- looking statements by forward-looking words, such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “objective” “believe,” “forecast,” “fores
Slide 3: Q1 2018 highlights
Q1 2018 highlights A strong quarter, sharp focus on execution Strategic priorities First-Quarter 2018 delivery 4.9% Positive volume (+1.1%) and value (+3.8%) contribution 1 Accelerate + Increased contributions from new innovations growth LFL sales growth(1) Notably very strong performance in S
Slide 4: Leading the way in creating and sharing sustainable value
Q1 2018 highlights Leading the way in creating and sharing sustainable value March ‘18 April ‘18 First issuance of Danone North America a social bond now by a multinational a B Corp €300m ~30% to finance projects of Danone global sales with positive social impact covered by B Corp certification I 4
Slide 5: Q1 2018 sales bridge
Q1 2018 sales bridge +4.9% like-for-like(1) growth LFL New Danone(3): +4.9% -1.4% €6,085 m +3.8% +16.2% +1.1% -8.9% €5,493 m Q1 2017 Restated(1) White Wave base Scope Currency Volume Value Q1 2018 Reported effect(2) (1) Q1 2017 sales figures have been restated for IFRS 15 and are unaudited – please
Slide 6: Q1 2018 by reporting entity
Q1 2018 by reporting entity(1) Specialized Nutrition EDP Noram EDP International Waters SALES Q1 2018 €1.8 bn +14.5% €1.2 bn -0.2% €2.1 bn +0.8% €1.0 bn +4.2% Volume / Value +5.6% / +8.9% +1.7% / -1.9% -3.2% / +4.0% +2.4% / +1.8% (1) Like-for-Like New Danone I 6 I
Slide 7: Specialized Nutrition
200 as BARA » | ra 0 SPECIALIZED NUTRITION | ITRICIA Karicare C3 pont Pal —— Karicare —— —— toddler Vitamin & { a 9 Mineral AS Cen , . Rist) eS te ee LS
Slide 8: Specialized Nutrition: +14.5%
Specialized Nutrition: +14.5% Very strong growth momentum for ELN China direct platform Quarterly LFL sales growth Early Life Nutrition: high-teens growth China: sales growth > 50% Category still growing double digit, expected to normalize throughout 2018 > 90% of growth from direct channels (1)
Slide 9: EDP Noram
Sie mond AcTIVW PROBIOTIC DAILIES | PROTEIN COLD XpRew CorreE | UW SLOW.” Ax sHOUTHTIT SALCEDO RENE
Slide 10: EDP Noram: -0.2%
EDP Noram: -0.2% Effective competitive plans in a challenging environment Quarterly LFL sales growth US Yogurt: further market share gains in a soft category -0.2% Continued expansion of emerging segments through innovations -0.4% High promotional pressure on Greek segment -2.2% -2.8% -2.9% Coff
Slide 11: EDP International
I 11 I
Slide 12: EDP International: +0.8%
EDP International: +0.8% Continued improvement in all regions Quarterly LFL sales growth Europe: slightly negative – significant progress on recovery plan Activia: recovery trend supported by innovations roll-out +0.8 % Successful investments behind young and local brands -0.8% -0.3% Alpro: HS
Slide 13: Waters
. ETE p AES Buller de Prd, 0 aie Sit -*BADOIT. 2 DES FRUITS QUI PETILLENT DE JOIE
Slide 14: Waters: +4.2%
Waters: +4.2% Solid growth, balanced within regions and categories Quarterly LFL sales growth Broad-based growth supported by successful innovation pipeline and activation plans Europe: moderate growth driven by local brands (Fontvella and Zywiec Zdrój) Noram: successful expansion of evian +10.3
Slide 15: FY2018 outlook
FY2018 outlook Reiterating confidence in navigating challenging and volatile backdrop Continued volatility in emerging markets Double digit inflation on PET Raw materials Logistics costs Increased volatility in FX FX Accelerated industry transformation Steep increase in US transportation c
Slide 16: FY2018 guidance confirmed: double-digit recurring EPS growth
FY2018 guidance confirmed 2017 2018 2020 2018 objective DOUBLE-DIGIT RECURRING EPS GROWTH at constant exchange rate excluding Yakult transaction impact(1) Based on: Accelerated LFL sales growth vs. FY2017 Sustained recurring operating margin improvement LFL (1) Please refer to slide 21 I 16 I
Slide 17: Appendix
\ DANONe ONE PLANET. ONE HEALTH APPENDIX
Slide 18: Q1 2018 impact of currencies & scope
Q1 2018 impact of currencies & scope Specialized Q1 2018 EDP International EDP Noram Waters Total Nutrition Reported sales growth (1.2)% +85.6% +7.0% (4.9)% +10.8% Currency (8.1)% (13.4)% (6.7)% (8.5)% (8.9)% WhiteWave base effect +6.3% +105.0% (0.8)% (0.2)% +16.2% Scope of consolidation (0.2)% (5.8
Slide 19: Changes in exchange rates
Changes in exchange rates % total Q1 18 sales Q1 18 vs Q1 17 (avg) United States Dollar 19.8% -13.3% Russian Ruble 6.8% -10.6% Chinese Renminbi 6.6% -6.1% British Pound 5.3% -2.6% Indonesian Rupiah 4.9% -14.9% Mexican Pesos 4.0% -6.1% Argentine Peso 3.8% -30.9% Brazilian Real 3.0% -16.0% Australian
Slide 20: Financial indicators not defined in IFRS and IFRS15 restatement
Financial indicators not defined in IFRS and IFRS15 restatement “Like-for-like New Danone” changes (or “Like-for-like including WhiteWave starting in April 2017” changes) in sales reflect the organic performance of Danone and WhiteWave combined. This indicator corresponds to like-for-like changes fo
Slide 21: Financial indicators not defined in IFRS and IFRS15 restatement
Financial indicators not defined in IFRS and IFRS15 restatement Non-recurring results from associates include significant items that, because of their exceptional nature, cannot be viewed as inherent to the recurring activity of those companies and distort the reading of their performance. They incl