Pierre-Andr Trisse - Chief Financial Officer June 19th, 2012 - PowerPoint PPT Presentation

Pierre-André Térisse - Chief Financial Officer June 19th, 2012

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 materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the section “Risk Factors” in DANONE’s Annual Report (which is available on www.danone.com). DANONE undertakes no obligation to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy, Danone shares. 2

A Complex Environment 25 Commodities (GSCI Index) Unemployment rate 1000 20 900 800 15 700 600 500 10 400 300 5 200 100 0 0 2006 2007 2008 2009 2010 2011 04 05 06 07 08 09 10 11 12 Spain USA Brazil BRIC EuroZone Source : Euromonitor Source : The economist Source : Bloomberg Consumption under pressure in mature markets Developing middle class in emerging markets Input costs volatility 3

A Fast Geographical Transformation Sales by region 1997 2007 2011 Emerging Markets Emerging North Markets Emerging Western America Markets 16% 6% Europe Western 38% Japan Western Europe + NZ 38% Europe 51% 51% 78% 2% 9% 9% 2% 4 4 Japan + NZ North North Japan America America + NZ

Complex Equation – Clear Priorities INFLATION 800 SPGSCI Index 700 +10% per year 600 between 2010 and 2011 500 400 D-09 D-10 D-11 EUROPE EMERGING Sluggish growth Categories ’ development Positive mix Competitive price management Operational leverage

Eurozone under Pressure

Southern Europe deteriorating Focus on Spain Unemployment vs Consumption Variance Unemployment rate in Spain by region 5% Asturies 0% Navarre Var ° of consumption -5% Rioja Pais Vasco Extremadura Galice Castille Manche -10% Cantabria Espagne Aragon Madrid Andalousie -15% Castilla y Leon Communidad Valenciana -20% Murcia Baléares Canaries -25% Increase of unemployment rate 7

Dairy Spain : Dominant brand in a changing environment Fresh Dairy Products – Value Market shares Food Retail – Value Market shares Retailer #1 Retailer #2 Retailer #3 DANONE Other Brands Private Label 53,6 51,2 28,0 26,8 25,5 24,6 38,4 36,2 17,7 17,3 17,3 17,2 10,9 10,4 10,5 10,3 10,4 10,3 2011 YTD 2012 2009 2010 2011 YTD 2012 Source : IRI

Dairy Spain requiring specific response Support and differentiate Increase competitiveness Innovate Continued productivity

Inflation higher than expected Input cost inflation vs. LY (in %) Productivity 2008-2012 ( € mln) Whey & Milk Proteins: > 20% > 500 Packaging: mid-to-high single digit 528 516 470 Milk: very low cream resale price 324 Fruits & sugar: > 10% H1 246 2008 2009 2010 2011 2012 10

2012 Parameters evolving – Managing with same Priorities H1 inflation above expectations higher productivities INFLATION EUROPE EMERGING Deterioration in Southern Continued strong growth & Europe operational leverage No compromise vs LT building Specific Support & Adjustments Investment maintained

Continued performance in Emerging markets 2011 sales breakdown Platform(s) for growth Western Emerging countries Europe 38% 51% Dairy - CIS 2% 12 9% Japan + NZ Aquadrinks – Asia North America Dairy – Americas & AME Baby Nutrition – Asia & AME Medical Nutrition – China / Turkey / Brazil Like-for-like sales growth FY 11 Q1 12 20,1% 19,4% Aquadrinks – LATAM 13,3% 12,7% 2,4% 0,9% Europe Asia ROW 12

FRESH DAIRY CIS - From Integration to Growth 2012 agenda: Activating the key brands Danone-Unimilk CIS % volume growth A rolling activation plan Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 e.g. : key activities Q1 • 360 ° support on Prostokvashino Good consumer receptiveness, with • 360 ° support on Danonino Prostokvashino the main growth driver • Support & line extension on Danissimo 14% +12% Q1 12 like-for-like growth - Russia 13

FRESH DAIRY US - Consolidating leadership of the total category while progressing in the Greek segment x 2.2 Oikos $ sales Q1 11 Q1 12 33,0 Total Danone* 25,0 Competitor 1 MS Value 15,8 Source : IRI Competitor 2 6,9 Oikos* janv.-12 févr.-12 mars-12 avr.-12 mai-12 * Dannon + Stonyfield 14

2012 Our targets Objectives 2012 5-7% Sales growth (1) Trading operating margin (1) - 50 bps € 2 bn Free cash flow (2) (1) Like-for-like : Based on constant scope of consolidation and constant exchange rates (2) Free cash flow: Cash flow from operations less capital expenditure (net of disposals) and excluding business combinations fees 15 15