Danone Sa · EURONEXT:BN
Danone Sa — Back to School Conference 2012
30 slides from Danone Sa's conference presentation, Sep 5, 2012
Slide 1: Franck Riboud, September 5th, 2012
Franck Riboud September 5th, 2012
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: Unique Mission, Unique Portfolio
Unique Mission, Unique Portfolio FRESH DAIRY PRODUCTS WATERS Hydratation and Developing a well being elimination category worldwide Bring health through food to the largest number of people BABY NUTRITION MEDICAL NUTRITION Supporting growing children Nutritional support Every step of the way for per
Slide 4: Well-positioned in fastest-growing food categories
Well-positioned in fastest-growing food categories Faster growing food categories Growth focused portfolio 5-year industry volume CAGR as of 2012(1) 2011 like- 2011 trading FY 2011 Sales for-like sales operating margin Medical 8,0% breakdown growth Waters 6,0% 6% Medical Nutrition +9.4% 20.0% Yoghur
Slide 5: A coherent product portfolio covering needs at every age
A coherent product portfolio covering needs and demands at every age Growth/ Maintenance/ Ageing process/ Building Capital prevention Problem solving High Specific nutrition/ Food needs Low Infants/Children Teenagers Adults Seniors 5
Slide 6: 2008-2011: Sales growth, Margin, FCF
2008-2011 : Sales growth, Margin, FCF Like-for-like sales growth 8,4% 7,8% 6,9% 3,2% 2008 2009 2010 2011 Trading Operating Margin and like-for-like growth Free cash flow (€ mln) +53bps +61bps +3bps +20bps +9.4% CAGR +17% 1 874 1 713 15,31% 15,16% 1 427 14,91% 14,72% 1 183 2008 2009 2010 2011 2008 20
Slide 7: A Fast Geographical Transformation
A Fast Geographical Transformation Sales by region 1997 2007 2011 Emerging Markets Emerging North Markets Emerging America Western 16% Markets 6% Western 38% Europe Western Japan + NZ Europe Europe 38% 51% 51% 78% 2% 7 2% 9% 9% 7 Japan + NZ North North Japan America America + NZ 7
Slide 8: Geographical Equation
Geographical Equation Like-for-like sales growth - 14,5% CAGR 2008/2011 12,6% 4,2% Europe Asia ROW Like-for-like Trading Operating margin +276bps evolution 2008 – 2011 +26bps +109bps Europe Asie ROW 8
Slide 9: Managing 2012
DANONE Managing 2012
Slide 10: Southern Europe deteriorating: Focus on Spain
Southern Europe deteriorating Focus on Spain Unemployment rate in Spain (%) Dairy Spain - Like-for-like sales growth (%) Indicador de confianza consumidor Instituto Nacional Estadistica Jun Dic Ene Feb Mar Abr May Jun 2011 2011 2012 2012 2012 2012 2012 2012 FY 2011 Q1 2012 Q2 2012 74.9 71.0 68.3 58.
Slide 11: Dual dynamics
Dual dynamics Group Sales breakdown H1 2012 H1 2011 Sales Margin Western Western Europe Europe 35% Rest of 38% Rest of the the World World 62% 65% +3 pts Sales Margin 11
Slide 12: Adjusted 2012 guidance
Adjusted 2012 guidance Objectives 2012 H1 results Sales growth (1) 5-7% 5.9% Trading operating margin(1) -50 bps -61 bps Free cash flow (2) € 2 bn € 890 mln (1) Like-for-like : Based on constant scope of consolidation and constant exchange rates (2) Free cash flow: Cash flow from operations less cap
Slide 13: Playing the game on our different fields
Playing the game on our different fields 13
Slide 14: Playing the games on our different fields
Playing the games on our different fields CIS Spain US China Morocco India Indonesia Brazil 14
Slide 15: Dairy Spain requiring specific response
Dairy Spain requiring specific response Support and differentiate Increase competitiveness Innovate Continued productivity 15
Slide 16: Yolado: expanding boundaries of the category in Spain
Yolado : expanding boundaries of the category in Spain 16
Slide 17: Fresh Dairy CIS: From Integration in 2011 to Growth in 2012
Fresh Dairy CIS From Integration in 2011 to Growth in 2012 2011 priorities 2012 agenda: Activating the key brands Integration Drive efficiency to invest behind brands Segment the portfolio 17
Slide 18: Fresh Dairy CIS: Leveraging the Prostokvashino brand
Fresh Dairy CIS – Leveraging the Prostokvashino brand - New Identity in Q2 12 H1 12 like-for-like growth - Russia +11% 18
Slide 19: Fresh Dairy US: Continued share gains
Fresh Dairy US Continued share gains globally and on the Greek segment x 2.2 Oikos* $ sales H1 11 H1 12 32,9 Total Danone* Competitor 1 US MS Value 24,6 Source : IRI Competitor 2 15,7 Oikos* 7,3 * Dannon + Stonyfield janv.-12 févr.-12 mars-12 avr.-12 mai-12 juin-12 19
Slide 20: Fresh Dairy US: Entering Q3 with strong plans
Fresh Dairy US – Entering Q3 with strong plans and additional capacities, in a very competitive market Oikos - Multipack Greek – Light & Fit Activia Breakfast 20
Slide 21: Brazil: consistently building leadership in our categories
Brazil : consistently building leadership in our categories Value market shares 37,1 Danone 29,8 26,9 Competitor 1 19,8 Competitor 2 13,3 11,0 2004 2005 2006 2007 2008 2009 2010 2011 YTD 2012 Volume CAGR 2004-2011 Extending leadership to Nord-Este region +15% +41% 2004 2011 Other Activia Danoninho 2
Slide 22: Brazil: consistently building leadership in our categories
Brazil : consistently building leadership in our categories Waters Volume market shares, Sao Paulo City, Internal panel 60% 50% 50% 40% 30% 20% Competitor 1 Competitor 2 10% Competitor 3 0% BUSINESS IS EVOLVING FAST IN YTD H1 12 Volume growth +42% 22
Slide 23: China: Renovating Dumex
CHINA : Renovating Dumex Danone value market shares Modern Trade – Total milks (May 2012) 14,9 14,4 STAGE ENHANCED NUTRITION YTD 2011 YTD 2012 23
Slide 24: Indonesia: unique leadership in Waters
Indonesia : unique leadership in Waters Volume Number 1 Water Brand Worldwide(1) > 9 bn liters 15 factories Converting consumers from boiled water to Aqua Past 7 Days Consumption - Rolling 12 Weeks Data – Gallon only 10.000 trucks on the road Gallon 1.5 mln points of sale (1) In volume Source: ATP C
Slide 25: Starting new games
2 DANONE Starting new games 25
Slide 26: Medical Nutrition: Preparing for Souvenaid launch
Medical Nutrition : Preparing for Souvenaid launch Presenting Souvenir II trials results Journal of Alzheimer’s Alzheimer's Association Disease International Conference Issue : Volume 31, Number 1, July 2012 26
Slide 27: Morocco: becoming majority shareholder of Centrale Laitière
Morocco : becoming majority shareholder of Centrale Laitière Dairy – Value Market shares* 2011 Sales : ca. € 600 mln Competitor 2 5% Others 2011 EBITDA Margin : 16.9% 12% Tanger Tetoua n Oujd Competitor1 Kenitra Fes a Salé 20% Rabat Casa / Mly Slimane Meknes 63% El jadida Safi FBS Mararkech Agadir O
Slide 28: India: Danone present in its business lines after Wockhardt Nutrition acquisition
India : Danone present in its 4 business lines after completing the acquisition of Wockhardt Nutrition 2nd PLAYER IN A FAST GROWING BABY FOOD MARKET (1) NATIONAL DISTRIBUTION WITH LOCAL PRODUCTION FACILITY Competitor 4 Competitor 5 3% Competitor 3 3% o 1 factory located in 3% o 25 million baby Facto
Slide 29: Playing the games on our different fields
Playing the games on our different fields CIS Spain US China Morocco India Indonesia Brazil 29
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