Post on 30-Aug-2019
2
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.
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3 3
Key Facts
Key Q3 event = Fonterra false alert
Sales
Cost impact
Cash impact
=> Significant impact on 2013 Group results
€170 mln
2nd August 2013 : some batches of
ingredients manufactured by
Fonterra suspected of containing
Clostridium Botulinum
New Zealand announces ban of
China on New Zealand milk
product
Danone immediately recalls all
finished products potentially
related to incriminated batches
Internal & external tests on
recalled products : no sample
shows any contamination
28th August 2013 : New Zealand
authorities lift the warning after
concluding that there are no
Clostridium Botulinum in any of
the Fonterra batches concerned
• FY €280 mln
incl €170 mln one off
• FY €300 mln
• Q3 -3.2%
€350 mln • FY
5
Action plans in place to recover
5
Inventory management focus & promotion activity
Heavy communication campaign
Business development acceleration
Key action plans Recovery path
0
20
40
60
80
100
120
July August September
Monthly sales July 2013
Average of the 8 coutries impacted by recall
Q3 2013 : Strong underlying dynamics
6
Europe :
Adapt & fix
– Savings & competitiveness
– Value for consumers
Growth markets :
Invest & leverage
Clear priorities Strong underlying growth trends
(1.7)% (4.5)% (4.0)% (0.9)%
H1 2012 H2 2012 H1 2013 Q3 2013
5.3% 8.2% 9.3%
11.1%
H1 2012 H2 2012 H1 2013 Q3 2013
16.7% 14.7% 15.9%
16.1%
H1 2012 H2 2012 H1 2013 Q3 2013
Europe
CIS &
NORAM
ALMA*
6.0%
16.1%
* ALMA :AsiapacLatamMiddleEastAfrica
Actual
Excluding
8 recall markets
7
The right model to develop categories
7
0
2
4
6
8
10
12
14
16
18
WesternEurope
EasternEurope
NorthAmerica
LatinAmerica
MiddleEast and
Africa
AsiaPacific
2008 08-13 growth
Pcc in kg
Nutricia Research in Utrecht –
Opening a new global research centre
8 8
Group sales
performance
6.9%
5.0% 5.0% 4.9%5.6%
6.5%
4.2%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
9
Solid sales growth in Q3 2013
9
Like-for-like sales growth
Q3 growth impacted by the Fonterra affair
Acceleration of performance in other regions
5.6% 5.5%
9M 12 9M 13
(7.2)%
3.0%
1.6%
2.6%
Q3 2012 Currency Scope & others Volume Value Q3 2013
10 10
Sales growth analysis – Q3 13
+0.0% Reported
+4.2% Like-for-like
€5,259 mln
€5,257 mln
(4.1)%
2.3%
2.9%
2.6%
9M 2012 Currency Scope & others Volume Value 9M 2013
11 11
Sales growth analysis – 9M 13
+3.7% Reported
+5.5% Like-for-like
€16,317 mln
€15,733 mln
2.2% 2.1% 1.6%3.2% 3.0%
4.1%
1.6%
4.7%
2.9% 3.4%1.7%
2.6%
2.4%
2.6%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
12 12
Like-for-like sales growth Volume growth
Price/mix growth
Total Group – Balanced growth
Resilient volume trends
Moderate increased pricing in selected regions
2.0%2.9%
3.6% 2.6%
9M 12 9M 13
18.1%
15.4% 15.2%14.2%
16.6%15.3%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
(0.5)%
(2.8)%(3.8)%
(5.1)% (5.1)%
(3.0)%
(0.9)%
5.3% 5.3%6.8%
9.7%8.5%
10.2%11.1%
13 13
Like-for-like sales growth by region
EUROPE
ALMA
AsiapacLatamMiddleEastAfrica
CIS & NORAM CIS+USA+Canada
Improved underlying dynamics
6.0%
14 14
Sales performance
by division
3.8%
2.1%
0.7%1.3%
0.7%
2.6%
4.6%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
15 15
Like-for-like sales growth
CIS & North America : confirmed growth path
Recovery starting in Europe
Overall, highest growth in the past 9 quarters
FRESH DAIRY PRODUCTS - Further improvement across
geographies
2.2%2.6%
9M 12 9M 13
37.8%
31.1%
9.5%8.2%
2011 2012 YTD 2013
Greek yogurt segment Value market shares
Source : IRI Multi Outlet
Competitor 1
Danone
Competitor 2
Competitor 3
Greek segment latest innovations
FRESH DAIRY US - Confirmed market leadership with a
solid growth in Greek segment
New segments and moment of consumption
Q4 12 Q1 13 Q2 13 Q3 13
Série2 Série3
17 17
FRESH DAIRY CIS – A robust growth equation
CIS performance +28%
YTD Like-for-like
sales growth
+18%
YTD Like-for-like
sales growth
Volume growth
Price/mix growth
+8%
YTD Like-for-like
sales growth
Integrated management
as of January 1st 2014
18 18
FRESH DAIRY Europe – Improvements confirmed
Breakdown volume / value growth (%)
Value market shares
Q4 2012 Q1 2013 Q2 2013 Q3 2013
Volume growth Price/mix growth
Q4 12 Q1 13 Q2 13 Q3 13
Spain
Portugal
Italy
France
UK
Germany
(0.1)%(0.3)%
(0.7)%0.4% 0.5%
3.6%
1.7%
3.9%
2.4%1.4% 0.9% 0.2%
(1.0)%
2.9%
19 19
Volume and price/mix growth Volume growth
Price/mix growth
Year-to-date, solid volume improvement in CIS / North America and better
trends in Europe
Selected price increases in Q3, in the context of milk inflation
FRESH DAIRY PRODUCTS – Balanced equation
(0.4)%
1.9%2.6%
0.7%
FRESH DAIRY PRODUCTS – Selected innovations
YO-Jelly
(South Africa) Danonino Bebe Dino Bottle
(Roll out France,Russia,
Canada and Poland)
Danette Tubes
(Turkey)
Actimel Vitamine C
(Russia)
Danonino Tubes
(Mexico)
Oikos
(Mexico)
Danio
(Brazil)
Actimel Kids
(Roll out in
7 European countries)
Greek yogurt
Indulgence
Active Health
Kids and tweens
16.4%
4.6%
12.3%
8.5% 8.6%
10.5%
16.9%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
21
Like-for-like sales growth
WATERS – Outstanding performance
An outstanding performance driven by emerging markets, Aquadrinks and
positive Europe
Favorable comparables with positive weather conditions
10.5%
12.1%
9M 12 9M 13
7.7%
3.1%5.4%
7.9%
4.6%7.1%
9.4%
8.7%
1.5%
6.9%0.6%
4.0%
3.4%
7.5%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
WATERS – A healthy volume growth
22
Volume and Price/mix growth
Strong volume trend
Favorable mix driven by aquadrinks and positive Europe
Volume growth
Price/mix growth
5.3%7.1%
5.2%
5.0%
9M 12 9M 13
WATERS – Selected innovations and equity development
23
Salus Cero
(Uruguay) Akmina new flavors
(Turkey) Bonafont Kids
(Mexico)
Aqua Click’n go
(Indonesia)
Bonafont
Lévissé
Aquadrinks launch in Brazil
Evian sponsoring
Aquadrinks line extension
Packaging innovation
9.0%
13.6%
11.5% 12.1%
17.1%
13.5%
(8.6)%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
BABY NUTRITION – A temporary hit
24
Like-for-like sales growth
Significant impact of the Fonterra affair
Key focus to reinitiate local dynamics
11.4%
7.3%
9M 12 9M 13
BABY NUTRITION – Selected innovations
25
Milkuat EnerG
(Indonesia)
Bebelac Cereals
(Turkey) Nutrilon HA and Comfort Pronutra
(Argentina )
Milnutri GUM
based on Nutriplanet Study
(Brazil) Bobovita Cereals and Expert Cereals
(Poland)
IMF & GUM Cereals
6.4% 6.7%
4.9%5.5%
6.3%
4.7%
5.8%
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13
MEDICAL NUTRITION – Sustained growth
26
Like-for-like sales growth
North America and ALMA driving growth on the back of Europe soft trend
6.0%5.6%
9M 12 9M 13
MEDICAL NUTRITION – Selected innovations
27
PKU Anamix first spoon : expansion of
metabolic control portfolio
(Saudi Arabia)
Forticare : bottle format upgrade
(Turkey)
Nutridrink Compact Protein
(Russia)
2013 OUTLOOK
28 28
-30bps to -50bps
Trading operating margin(1)
29
2013 objectives
(1) Like-for-like : Based on constant scope of consolidation and constant exchange rates
(2) Free cash-flow excluding exceptional items : cash flows provided or used by operating activities less capital expenditure net of disposals and
excluding acquisition costs related to business combinations and before cash-flows related to initiatives that may be taken by the Group to deploy
the plan to generate savings and adapt its organizations in Europe
At least 5%
Previous
2013 objectives
Sales growth (1)
Around € 2 bn
29
Free cash-flow excluding
exceptional items (2)
- 80bps
4.5% to 5%
New
2013 objectives
€1.5 bn to €1.6 bn
30
APPENDIX
30
Impact of currencies and scope – Q3 13
31
Reported sales growth +0.1% +13.2% (13.0)% +3.0% +0.0%
Currency (7.6)% (6.6)% (7.3)% (5.0)% (7.2)%
Scope of consolidation +3.1% +2.9% +2.9% +2.2% +3.0%
Like-for-like sales growth +4.6% +16.9% (8.6)% +5.8% +4.2%
Dairy WatersBaby
Nutrition
Medical
NutritionTotal
Like-for-like
sales growth
32
Reported sales growth +1.4% +9.4% +4.9% +4.9% +3.7%
Currency (4.6)% (3.7)% (3.4)% (2.7)% (4.1)%
Scope of consolidation +3.4% +1.0% +1.0% +2.0% +2.3%
Like-for-like sales growth +2.6% +12.1% +7.3% +5.6% +5.5%
Dairy WatersBaby
Nutrition
Medical
NutritionTotal
Impact of currencies and scope – 9M 13
Sales by business & geographical area – Q3 13
Like-for-like
sales growth
33
€ mln
Fresh Dairy Products 2,910 2,913 +4.6%
Waters 962 1,089 +16.9%
Baby Nutrition 1,062 924 (8.6)%
Medical Nutrition 323 333 +5.8%
Europe 2,089 2,068 (0.9)%
CIS+Noram 1,116 1,183 +11.1%
ALMA 2,052 2,008 +6.0%
Total 5,257 5,259 +4.2%
Q3 2012 Q3 2013Like-for-like
sales growth
Sales by business & geographical area – 9M 13
Like-for-like
sales growth
34
€ mln
Fresh Dairy Products 8,816 8,936 +2.6%
Waters 2,817 3,080 +12.1%
Baby Nutrition 3,152 3,307 +7.3%
Medical Nutrition 948 994 +5.6%
Europe 6,439 6,228 (3.0)%
CIS+Noram 3,317 3,543 +9.9%
ALMA 5,977 6,546 +12.6%
Total 15,733 16,317 +5.5%
9M 2012 9M 2013Like-for-like
sales growth
35
Like-for-like sales growth – Q3 13
Breakdown volume/value
Like-for-like
Fresh Dairy Products +1.7% +2.9% +4.6%
Waters +9.4% +7.5% +16.9%
Baby Nutrition (7.3)% (1.3)% (8.6)%
Medical Nutrition +7.4% (1.6)% +5.8%
Europe (0.4)% (0.5)% (0.9)%
CIS+Noram +4.7% +6.4% +11.1%
ALMA +0.9% +5.1% +6.0%
Total +1.6% +2.6% +4.2%
Volume Price/mix Total
36
Like-for-like sales growth – 9M 13
Breakdown volume/value
Like-for-like
Fresh Dairy Products +1.9% +0.7% +2.6%
Waters +7.1% +5.0% +12.1%
Baby Nutrition +1.1% +6.2% +7.3%
Medical Nutrition +5.7% (0.1)% +5.6%
Europe (1.9)% (1.1)% (3.0)%
CIS+Noram +6.1% +3.8% +9.9%
ALMA +5.2% +7.4% +12.6%
Total +2.9% +2.6% +5.5%
Volume Price/mix Total
37
Changes in exchange rates
27.7% of 9M sales denominated in €
9M 13
% total sales 9M 13 vs
9M 12 (avg)
Q3 13 vs
Q3 12 (avg)
Russian ruble 10.2% (4.5)% (8.0)%
US dollar 9.1% (2.7)% (5.5)%
Chinese yuan 6.9% (0.2)% (2.0)%
Indonesian rupiah 5.6% (10.0)% (15.9)%
Mexican peso 5.5% 1.4 % (3.7)%
British pound 4.7% (4.7)% (7.3)%
Argentine peso 4.6% (17.7)% (22.0)%
Brazilian real 4.3% (12.0)% (16.3)%
Polish zloty 2.6% 0.2 % (2.6)%
Moroccan Dirham 2.3% (0.5)% (1.1)%
Notes
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Notes
39