FINANCIAL

AND
EXTRA-FINANCIAL
RESULTS
DANONE 2030 GOALS
IN LINE WITH THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

Danone 2018 Integrated Report is structured around Danone 2030 Goals : For more information: iar2018.danone.com
 OFFER SUPERIOR FOOD EXPERIENCES 3

AND INNOVATE, ALWAYS

Innovations/Renovations accounted for 1/4 of our

sales in 2018 (vs 16% in 2016).
FOOD SAFETY AND QUALITY
100% We are 40% faster in bringing recent innovations
FSSC 22000 certification of our production sites 67%
by 2020 to market this year, thanks to design-thinking, fast
prototyping and a more open innovation process
E-COMMERCE involving partners and consumers.
€2 bn
Double e-commerce size
by 2020

PLANT BASED BUSINESS

≈ € 5bn WATERS ESSENTIAL DAIRY AND PLANT-BASED SPECIALIZED NUTRITION
Tripling the Plant-Based business
By 2025

DANONE MANIFESTO VENTURES

≈ €200 M
Investment by the Danone Manifesto Ventures
by 2020
 DELIVER SUPERIOR SUSTAINABLE 4

PROFITABLE GROWTH

(2) (3) (4)

FINANCIAL PERFORMANCE
4 to 5% NET SALES RECURRING RECURRING EPS GROWTH FREE CASH FLOW
LFL sales growth 3.9% (1)
by 2020 OPERATING MARGIN
> 16%
Recurring operating margin 14.4%
by 2020
< 3.0 x
Net debt / EBITDA 3.3 x
by 2020
≈ 12%
ROIC 10.3% First emission of a
by 2022 Payable margin
social bond by a
Syndicated €2 bn adjusted yearly to multinational to finance and
PROTEIN credit facility integrate ESG company in line with refinance projects
criteria the new Social Bond with a positive
≈ €1bn
Protein gross savings - Principles(5) social impact
by 2020

Part of the
(1) Like-for-like New Danone. +3.6% excluding Morocco boycott impact. Advanced Performer
(2) Like-for-like New Danone. +58 bps excluding Morocco boycott impact
FTSE4Good
(3) At constant exchange rate, excluding impact of Yakult Transaction Impact and IAS29
+ 3 pts vs. 2017 + 5 points compared Index Series Best score in
(4) On a reported basis Danone is sector to 2017 Social Reporting as
(5) The new Social Bond Principles, as set out in June 2017 by the International Capital Market Association. Please refer to the Press Release leader of January 2019
from March 19, 2018
 BE CERTIFIED AS A B CORP

B CORPTM CERTIFICATION
of our global business is Subsidiaries started leveraging

B CorpTM certification 5 entities

Global
certification
By 2030
≈ covered by the B CorpTM
certification(1)
the certification at brand level
using social media and on-pack
marketing

Virtual shelf dedicated

to products from
B CorpsTM certified
companies on
Waitrose online shop

• Achievement two years ahead of target

• Danone North America is the largest Certified B
Corporation® in the world
• Danone Canada becomes the largest consumer-
facing Certified B Corporation® in Canada

(1) Excluding Grameen Danone and Danone Manifesto Ventures turnover, not consolidated as both are treated as equity affiliates
 6
IMPACT PEOPLE'S HEALTH LOCALLY

BETTER PRODUCTS of volumes of of volumes of of entities have

products sold are in products sold with declared a public
Volumes of products compliant with our 2020 100% health cause and are
73% healthy categories(3) on-pack information
Nutrition Targets(1) (2) by 2020 committed to act on it
Volumes of products in line with the sugar 100%
77% of volumes of of volumes of
target by 2020 active education
products sold have products sold with and information
Volumes of products in line with the 100% been nutritionally off-pack information
98% programs
saturated fat target by 2020 improved in 2018 (online, call center…)
Volumes of products in line with the salt 100%
86%
target by 2020 of volumes of products people potentially
of volumes of
sold providing an reached since the
products sold are
indication of the launch of these
without added sugar
portion size programs

of volumes of
products sold are
Nutriscore implementation
fortified products
in EU
A voluntary information on nutritional quality

• We are among the TOP 3 • In 2018, gradual roll out in France to reach
Data are calculated through the One Health Scorecard, representing 61 reporting entities and about 65% of Danone’s annual net sales in 2018.
performing companies 100% of our fresh dairy packaging by the end
(1) Danone Nutrition Targets are available here
(2) All product categories except packaged water, cooking aids, and products for which a target is not yet defined. Products must attain all nutrient • We are 1st on Breast-Milk of 2019
thresholds for their category in the ‘Danone Nutritional Targets 2020’. Compliance is weighted by volumes of products sold. This rule applies both Subtitutes Marketing sub- • In 2019, start roll-out in Belgium, Austria,
at portfolio and product (i.e. multipack) levels.
(3) Refers to water, yogurts, milks and other daily dairy products, beverages with 0% sugar, early life nutrition products (except biscuits and ranking Germany, Switzerland and Slovenia
beverages for children under 3 years old) and medical nutrition. The remaining categories are mainly low sugar beverages and indulgent products.
 7
GROW MANIFESTO BRANDS

accounting for
MANIFESTO BRAND 20% of Danone sales
All in 2018
Brands embarked on Manifesto Brand journey 40
by 2020

Manifesto brands are purpose driven brands that act as true activists towards their point of view. They pursue a
purpose based on social, health and / or environmental issues that matter to its consumers and communities, and
are committed to creating a positive social impact whilst delivering sustainable, profitable growth. gender circular lower impact support to nourishing
equality economy on the planet organic agriculture happiness

of our business has already embarked on a

Manifesto Brand journey

(1) Villavicencio, Les 2 Vaches, Bonafont, Happy Family, evian, Alpro, Aqua, Blédina, Nutrilon, Phosphatine
 PRESERVE AND RENEW THE
PLANET'S RESOURCES

Our ambition
CLIMATE CHANGE
Reduction in CO2 emissions intensity on 50%
10.5% tons of CO2 equivalent
Danone’s full scope (g of CO2 eq/Kg products sold)(1) by 2030
emissions of for our total
Absolute reduction on Danone’s 30% scope of responsibility.
9.7%
scope 1 and 2 CO2 emissions(1) by 2030
100%
Renewable electricity 18% of paper and
by 2030 of volumes of of packaging board packaging
products of total is made of
WATER STEWARDSHIP is made of
covered by renewable recycled recycled fibers
Waters division sites having run a SPRING audits 100% the ISO14001 energy materials
100% or FSC certified
SPRING: Sustainable Protection and Resources managING by 2020 certification
fibers
Reduction in water consumption intensity in 60%
50%
operations since 2000 by 2020

CIRCULAR ECONOMY
Packaging recyclable, reusable or compostable
Recycled PET used in average in Waters Division
REGENERATIVE AGRICULTURE
Fresh milk volumes worldwide assessed against
animal welfare requirements in Essential Dairy and
Plant-Based Division(3)
100% • Natur’All Bottle Alliance created in 2017 by Danone, On September 21St, all French
86% Nestlé and Origin material to scale up production of Danone brands donated a full day’s
by 2025
bio-based plastic is joined by Pepsico sales to support regenerative
50% agriculture projects. 1,500 Danone
10% • The Water subsidiary AQUA launched its pledge to
by 2025 employees and farmers rallied in
address the issue of plastic waste in Indonesia
stores across France to raise
• Partnership between evian and Loop Industries to consumers awareness on
create bottles with 100% recycled plastic by 2025 regenerative agriculture.
80% For more information on the reporting scopes, see our Methodology Note
- (1) The data is based on a constant consolidation scope and a constant methodology, 2015 baseline. Scope 1, 2 and 3 definitions are available in our 2018 Integrated
by 2020 Annual Report : iar2018.danone.com
(2) Decrease is mainly due to WhiteWave integration
(3) Include the following countries : Algeria, Argentina, Belgium, Brazil, Egypt, France, Germany, Mexico, Poland, Romania, Russia, South Africa, Spain, and the U.S.A..
 ENTRUST DANONE'S PEOPLE
TO CREATE NEW FUTURES

(104,843 in 2017)
INCLUSIVE DIVERSITY
30%
Percentage of women at Executive level 25%
by 2020
Percentage of Executives from non-Western 30% of female manager, worldwide agreements
23% of permanent
European countries by 2020 Director and signed between
employees trained
3 All Executive Danone and the IUF
Roll-out Danone Parental Policy
countries by 2020

HEALTHCARE
countries in which Training hours per
we have employees person
Employees covered by Dan’Cares(1) or equivalent
≈ 70,000 100%
health coverage standards

HEALTH & SAFETY

‘ONE PERSON, ONE VOICE, ONE SHARE’ PROGRAM
0
Fatal accidents 2 • > 75,000 participants to the worldwide
by 2020
digital consultation and some 35,000
Reduction of workplace accidents with lost-time(2) 50% volunteers to analyze the consultation’s
1.8
(Frequency rate of workplace accidents with lost-time) by 2020 result and insights.
• Each employee will be granted one
Danone share combined with an annual,
amplified dividend-based incentive
We are one of 230 companies scheme, starting in 2019. We will also
For more information on the reporting scope, see our Methodology Note selected for the 2019 Bloomberg implement employees share purchase
(1) The Dan’Cares program aims to provide all Danone employees with quality healthcare coverage for major risks, while taking account of
different market practices. The three main risks are hospitalization and surgery, outpatient care and maternity care.
Gender-Equality Index plan similar to the French mechanism.
(2) Baseline 2014
 10
FOSTER INCLUSIVE GROWTH

Social businesses fighting against poverty by giving access to Endowment fund supporting activities of general interest to Investment funds dedicated to carbon assets restoration and
safe drinking water and adapted alimentation strengthen Danone’s ecosystem, promote job creation and family farming
develop micro-entrepreneurship
LIVELIHOODS
CARBON invested by the fund’s shareholders
FUND #1
people positively impacted
Including € 119M of co-funding from project partners since 2011
in trees planted since 2011

tons of carbon emissions avoided

in 2018 or sequestered since 2014

LIVELIHOODS
CARBON Launched in 2018 with the objective of accelerating
Beneficiaries in total actions for climate and for most vulnerable
FUND #2
jobs created populations

LIVELIHOODS
Beneficiaries in the fight against malnutrition and poverty FUND FOR invested by the fund’s shareholders
FAMILY
People professionally empowered FARMING people reached
Beneficiaries with access to safe drinking water farms connected to markets or supply
chains of investors in the fund
 11
FOSTER INCLUSIVE GROWTH

Our responsible
procurement program for our direct
suppliers*
traceability back traceability back
farms from which we source directly or indirectly our milk to plantation
to the mill

are smallholder farms (less than ten cows) of fruits traced back to
the first level of industrial
processing after harvest are registered on the SEDEX platform

of total milk volumes collected come from traceability back

producers working with Danone under long- to country
term contracts also called Cost-Performance
Model (CPM)(1) contracts were conducted on Danone tier 1 suppliers
is certified “RSPO identified as high-risk, commissioned either
of palm oil purchased by Danone or by peers
of total milk volumes collected in Europe segregated”
is certified “RSPO (vs 195 in 2017)
and in the U.S come from producers working excluding
segregated”
with Danone under CPM contracts(1) WhiteWave scope

*Program scope: suppliers except milk producers

(1) The Cost-Performance Model (CPM) contracts with producers are deployed in the U.S., in Europe and in Russia to reduce milk price volatility, offering better visibility and financial stability.
 SERVE THE FOOD REVOLUTION 12

WITH PARTNERS

EMBRACING CIRCULAR ECONOMY COLLABORATION FOR HEALTHIER LIVES ADVOCATE FOR INCLUSIVE DIVERSITY

Global partnership with Ellen MacArthur Foundation Global partnership to make healthier decisions easier for
people around the world.

Emmanuel FABER UN Inaugural Thematic Champion

WETLANDS PROTECTION
Global partnership raising awareness on the importance of
wetlands and supporting integrated watershed management
at the local level
PROMOTING HEALTHY SUSTAINABLE DIET FOSTER BIO-BASED PACKAGING

Initiative led by WBCSD (World Business Council for Partnership with Origin Materials and Nestlé to develop
Sustainable Development) and the EAT Food foundation and launch at commercial scale a PET plastic bottle made
from bio-based material

STRENGTHEN INCLUSIVE GROWTH

OECD and Danone initiative to strengthen inclusive growth
through public-private collaboration
 SERVE THE FOOD REVOLUTION 13

WITH PARTNERS

3RD EDITION OF TESCO HELPFUL LITTLE SWAPS IN THE U.K. Health for Life
Capital (HFLC)
Helpful ‘little swaps’ purpose is to make it both simpler and cheaper for consumers to make
healthier choices in store Urban farming investment fund

Helpful Swaps are highlighted in stores

Purified & Personalized

mineral content home water

Direct-to-consumer
kids meal kits

Sustainable and fair

coconut water