Slide 1: On the road to strong sustainable profitable growth
- ON THE ROAD TO STRONG SUSTAINABLE PROFITABLE GROWTH Cécile CABANIS
Slide 2: +53 bps +61 bps +3 bps
+53 bps +61 bps +3 bps +20 bps -50 bps -81 bps
Slide 3: What we committed to
@ WHAT WE COMMITTED TO A yn SUSTAINABLE c(@)7 SUSTAINABLE EPS
Slide 4: We are on track
@™ WE ARE ON TRACK a ~~, PROFITABLE E(@)\)) SUSTAINABLE GROWTH GROWTH 2014 a © INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 5: What we achieved since New York
@ WHAT WE ACHIEVED SINCE NEW YORK C©Pitwraroundisin progress @ Structural gross margin improvement to support value creation = Reignite growth & Build resilience & protect margin 0 Continued strong profitable growth | oO Strong profitable growth © INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 6: Structural gross margin improvement to support value creation
m™ STRUCTURAL GROSS MARGIN IMPROVEMENT TO SUPPORT VALUE CREATION « | GROSS MARGIN IMPROVEMENT MARGIN IMPROVEMENT | GROSSMARGIN IMPROVEMENT | H1 2015 > +140 ais Peover) 2015-1500 INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 7: Source: Euromonitor (1) Danone : including Stonyfield and YoCrunch Source: IRI Multi Outlet
Source: Euromonitor (1) Danone : including Stonyfield and YoCrunch Source: IRI Multi Outlet
Slide 8: Build resilience and protect margin
= BUILD RESILIENCE AND PROTECT MARGIN © Adaptation of industrial cost structure & logistics Simplification of sales units and centralization of supporting functions aS, Improvement cost operations /sales (2012-2015) >+250 bps/year Mix improvement (2012-2015): >+150 bps/year CIs ial KPIs since integr
Slide 9: +1pt +1 pt Source: Nielsen / IRI Data
+1pt +1 pt Source: Nielsen / IRI Data
Slide 10: > +30% > +20% ≈ +10% ≈ > +30% > +20%
> +30% > +20% ≈ +10% ≈ > +30% > +20%
Slide 11: Medical nutrition: strong profitable growth
i MEDICAL NUTRITION: STRONG PROFITABLE @) GROWTH Pswceyiownipetere’ | INUTRICIA Weight breakdown by regions Neocate ts 415%) GE NUIRICIS ‘Nutrison “Se Metabolics <p> ES S=n) Emerging markets: Mature markets: 2014 innovations BB 15% sales weight > 30% i of total sales , *QM sales growth y INVESTOR SE
Slide 12: We are on track
@™ WE ARE ON TRACK a ~~, PROFITABLE E(@)\)) SUSTAINABLE GROWTH GROWTH 2014 a © INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 13: Solid 9M 2015 - annual guidance confirmed
® SOLID 9M 2015 - ANNUAL GUIDANCE CONFIRMED TOPLINE 9M MARGIN H1 = EPS H11 €1.37 +6.8% Like-for-like ) SUSTAINABLE Sales growth(1) 4% to 5% “ GROWTH _ !rading operating margin(1) Slightly up ©) AR 2015 - EVIAN DANONE
Slide 14: We are on the road to our 2020 ambition
™ WE ARE ON THE ROAD TO OUR 2020 AMBITION OF STRONG PROFITABLE SUSTAINABLE GROWTH 7%, STRONG | >, PROFITABLE cs © "7 _ SUSTAINABLE 9 GROWTH
Slide 15: Headwinds within some markets
HEADWINDS WITHIN SOME MARKETS ≈
Slide 16: A balanced model to deliver our 2020 ambition
A BALANCED MODEL TO DELIVER OUR 2020 AMBITION OF STRONG PROFITABLE SUSTAINABLE GROWTH Gross Margin | PERFECT Operating Costs | DISCIPLINE IN RESOURCE ALLOCATION
Slide 17: We have strong levers to support our 2020 ambition
m@ WE HAVE STRONG LEVERS TO SUPPORT OUR 2020 AMBITION UNIQUE BRANDS MORE EFFICIENT & CATEGORIES OPERATING MODEL GROWTH rt proFit @ 2 SUSTAINABILITY DL Daniese BEYOND BUDGET ALIMENTATION ACTIVATION FOR NEW GROWTH OPPORTUNITIES STRATEGIC RESOURCES CYCLE MANAGEMENT AS A COMPETITIVE ADVANTAGE INVESTOR S
Slide 18: Strategic resources as a competitive advantage
@ STRATEGIC RESOURCES AS A COMPETITIVE EFFICIENCY ADVANTAGE rar WATER. PLASTIC MILK CPM Already identified: Other directs: € 100M Goods & Services: >€ 150M DANONE
Slide 19: More efficient operating model to support our 2020 ambition
@ MORE EFFICIENT OPERATING MODEL TO SUPPORT OUR 2020 AMBITION xp *K. 2.) BEYOND BUDGET 99, 9a, ax Wey Daniiacde Global Dairy procurement INVESTOR SEMINAR 2015 - EVIAN
Slide 20: • Leverage scale and efficiency • Reinforce expertise & • Improve Compliance
• Leverage scale and efficiency through transversality • Reinforce expertise & ability to support the business • Improve Compliance
Slide 21: Step change in resource allocation for more discipline and efficiency
m@ STEP CHANGE IN RESOURCE ALLOCATION FOR MORE DISCIPLINE & EFFICIENCY DANONE > Reconciling short term commitment and 2020 ambition: 3 Years CBU strategic mandate & structured year end goals sii % ff os (~ PE > Building visibility: be & 4 Quarters rolling forecast BEYOND BUDGET (— ttesy Pr From trap
Slide 22: 2015: €150M seamless resource allocation
@ 2015: €150 M SEAMLESS RESOURCE ALLOCATION - QUARTERLY BEAUTY CONTEST Topline acceleration Initiative J = beet Acticfiel | = CROSS CATEGORIES = CAPEX & OPEX Efficiency and optimization J = GROWTH & EFFICIENCY 7 Owe Supporting growth capacity
Slide 23: Capital discipline for a stronger focus on ROIC
@ CAPITAL DISCIPLINE FOR A STRONGER FOCUS ON ROIC Investments ] Strategic alliances J NURTURE FUTURE TAKE UP STRATEGIC GROWTH GROWTH OPPORTUNITIES THROUGH EFFICIENT CAPITAL ALLOCATION ©) NVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 24: Capex to nurture profitable growth
m CAPEX TO NURTURE PROFITABLE GROWTH CAPEX 4-5% OF NET SALES BUILDING GROWTH Capacity and Innovation = 40-50% PROTECTING GROWTH: Enhance food safety standards OPTIMIZING GROWTH: Productivity (% of total capex in 20 ©) INVESTOR SEMINAR 2015 - EVIAN DANONE
Slide 25: Growth business model with partners to optimize investment
& GROWTH BUSINESS MODEL WITH PARTNERS TO OPTIMIZE INVESTMENT CENTRALE JL——p_—— is DANON@ = ~ > Wy , ; Brookside
Slide 26: Right portfolio, efficient operations
RIGHT EFFICIENT PORTFOLIO PRGM OPERATIONS
Slide 27: A balanced model to deliver our 2020 ambition
mj A BALANCED MODEL TO DELIVER OUR 2020 AMBITION OF STRONG PROFITABLE SUSTAINABLE GROWTH UNIQUE BRANDS & CATEGORIES [ GROWTH )} ry 0 SUSTAINABILITY 00 | ALIMENTATION ACTIVATION FOR NEW GROWTH OPPORTUNITIES min yen, INCUBATOR INVESTOR SEMINAR 2015 - EVIAN 7M, STRONG PROFITABLE _ _)_SUSTAINABLE 7 GROW
Slide 28: Rhythm and balance are key to reach our 2020 ambition
@ RHYTHM & BALANCE ARE KEY TO REACH OUR 2020 AMBITION tPRoFiT_} PROFITABLE acuity C CONSISTENCY J GROWTH Cece bene ee ee beens DANONE 2020* 9M FY DISCIPLINE IN RESOURCE See SALES 4.6% 4-5% ALLOCATION H1 Slightly SUSTAINABLE Margint 53 bps | > Gp PERFECT EXECUTION GROWTH ©) INVESTOR SEMINAR 2015 - EV
Slide 29: Our 2020 ambition
@ OUR 2020 AMBITION Oo 3-5% oO 7-10% ‘ rt) 7-10% oO 6-8% 7% STRONG 5 PROFITABLE ee E ©) ) SUSTAINABLE Lo 54 200bps y GROWTH 2015 = 2020 Yearly growth of: " Trading operating margin =Cash ScuaI siege =EPS NVESTOR SEMINAR 2015 - EVIAN ¢ ) DANONE