conférence danone à l'université galatasaray le 21 octobre 2015

© Danone Corporate Communications May 2015

DANONE

GSU – October 212015


2Danone 40 ans d’Histoire !!


https://www.youtube.com/watch?v=8oMmoDH1hCU




4

CONNAİTRE DANONE


Danone Corporate Communications Department – May 2015

Danone, a global food company with a unique mission, culture and business model

Health and Nutrition at the center of our mission

A company sustainably anchored in its ecosystem

1

2

3

4 Four business lines inspired by a common vision



DANONE, A GLOBAL FOOD COMPANY WITH A UNIQUE MISSION, CULTURE AND BUSINESS MODEL

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DANONE: A UNIQUE MISSION


“The frontiers of the company do not stop

at the factory gates…”

Franck Riboud (2009) Antoine Riboud (1972)

“ How can a company expect to thrive in an economic

and social desert? ”

CREATING VALUE FOR EMPLOYEES AND SOCIETY AS A WHOLESocial Fundamentals / Nature / Ecosystem

A UNIQUE MODEL FOR DOING BUSINESS

Emmanuel Faber (2014)

FOUNDATION OF THE DUAL PROJECT DANONE HEALTH MISSION MANIFESTO

& DANONE 2020

“My job comes down to continuing Danone’s dual commitment to business

success and social progress”


A UNIQUE CULTURE

• Passionate and agile• Authentic and pragmatic

• Challenger mindset• Co-creation and sharing

Our culture

UNIQUEInspired by our history and social & economic project


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A GLOBAL FOOD COMPANY


€4.4 billion+6.1 %* like-for-like growth in 2014

No. 2 worldwideEarly life Nutrition

€11.1 billion+1,5 %* like-for-like growth in 2014

No. 1 worldwideFresh Dairy Products

€4.2 billion+11,6 %* like-for-like growth in 2014

No. 2 worldwide (by volume)

Waters

€1.4 billion+7.9 %* like-for-like growth in 2014

No. 1 in Europe**Medical Nutrition

21%

20%

7%

52%

€21,144 mln

A LEADERSHIP POSITION ON OUR 4 BUSINESS ACTIVITIES

*2014 FY Sales** West Europe

*


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

14,470 14,982

17,010

19,31820,869 21,298 21,144

A CONTINUED SOLID GROWTH OVER THE YEARS

Sales (€ Mln)

+6.9%

+7.8%

*Like-for-like sales growth (constant foreign exchange rate and constant scope)

+5.1%

+5,9% like for like* 5 year CAGR (2010 – 2014)

+5.4%

+4.8%

+4.7%


#1 France 10%

#2 Russia 9%

#3 United States 9%

#4 China 7%

#5 Indonesia 5%

#6 United Kingdom 5%

#7 Spain 5%

#8 Mexico 5%

#9 Brazil 5%

#10 Argentina 4%

ALMA38% Europe

40%

CIS & Noram22%

Top 10 contributors to 2014 sales2014 sales by geography

A GLOBAL PRESENCE IN ALL REGIONS

Russia, France & USA represent over 28% of Danone’s sales worldwide.

*NORAM – North America: USA+ Canada/ ALMA: Asia Pacific + Latin America + Middle East+ Africa / Europe: excluding CIS


A MULTI-BUSINESS UNIT CREATED IN AFRICA TO FURTHER DEVELOP NEW SOURCES OF GROWTH

Sources : "2013 Ibrahim Forum : Africa Ahead, the next 50 years", Facts and Figures , November 2013 ; "Now for the Long Term", The Report of the Oxford Martin Commission for Future Generations, October 2013.

A STRATEGIC PRIORITY

1 in 4 of the world’s children is born in Africa

40% of Africans are under 15

Twice as many mobiles as the US and the most advanced area for mobile money

Africa counts 1 bn people today; forecasts estimate 2.4 bn Africans by 2050

15 of the fastest growing cities in the world between 2015-2020 will be in Africa, including the fastest one in the world, Ouagadougou

A MULTI-BUSINESS UNIT

Presence in over 40 countries1,2 billion €


HEALTH AND NUTRITION AT THE CENTEROF OUR MISION

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BRING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE


A HEALTHY PORTFOLIO

DAIRY

WATERS

EARLY LIFE NUTRITION

MEDICAL NUTRITION


… COVERING NEEDS AND DEMANDS AT EVERY AGE

Growth/ Building Capital

Maintenance/ prevention

Ageing process/ Problem solving

Spec

ific

nutr

ition

/ Fo

od n

eeds

Infants/Children Adults SeniorsLow

High


RESEARCH & INNOVATION COMMUNITY

Patents families

498

Scientific publication & presentations at conferences worldwide

207

Clinical studies in progress

174

1,480employees, from 48 different nationalities,

partnerships with the international scientific teams most recognized in their fields

200millions annual budget€278


DANONE, A COMPANY SUSTAINABLY ANCHORED IN ITS ECOSYSTEM

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© Danone Corporate Communications May 2015 21

SUSTAINABILITY IN DANONE DNA SINCE 1972

2011

2008

2001

1998

2009

2006

1991First partnership With RAMSAR NATURE

2014Nature 2020

Healthy food begins with healthy nature

2002

Co-create Sustainable

Agriculture Initiative

1992

Co-initiate ERP

2000

Environmental 10 years plan

2015


LEADING THE PATH ON SOCIAL INNOVATION: 1. DANONE COMMUNITIES

To bring funds & expertise to social businesses adressing issues around Malnutrition and Access to Water

1

To advocate Social Business ie awereness and inspiration2

danone.communities’ mission

7 COUNTRIES10 GREENFIELDS = 7 BUSINESS / 3 PILOTS1 MILLION BENEFICIARIES

Water access projectsNutrition projects

danone.communities’ achievements to date


3 MORE PROJECTS LAUNCHED IN 2011

• 2008: creation of the Danone Fund for Nature, in partnership with Ramsar and IUCN, to compensate for carbon emissions linked to Danone’s activities.

• Financial support for initiatives that restore ecosystems that absorb CO2

• First project in 2009 in Senegal: evian-Ramsar partnership

• An unprecedented carbon investment fund that helps rural communities in developing countries in Africa, Asia and Latin America restore their ecosystems by generating financial resources for projects with high social, economic and environmental value.

• Three main type of projects: - 1/ Mangrove restoration - 2/ Agroforestry and sustainable

farming- 3/ Rural energy projects that

decrease deforestation

From Danone’s Pioneer approach to carbon offsetting…

…to the creation of a dedicated fund

LEADING THE PATH ON SOCIAL INNOVATION 2. LIVELIHOODS FUND: FOR CARBON OFFSET


- Investment fund of 40 million euros (10 companies)

- More than 130 million trees already planted

- 7 active projects today in Africa, Asia, Latin America

- 1 million people impacted by livelihood projects

- 8 million tons of CO2 sequestered over 20 years

LEADING THE PATH ON SOCIAL INNOVATION2. LIVELIHOODS FUND

KEY ACCOMPLISHMENTS LAUNCH OF THE LIVELIHOODS FUND FOR FAMILY FARMING (LIVELIHOODS 3F)

Launched in February 2015 with Danone and Mars, Inc. as its founding investors, Livelihoods 3F seeks to secure thriving livelihoods for small farmers' communities through the widespread adoption of sustainable agriculture that delivers value across supply chains and landscapes. It will invest €120 million over the next 10 years to implement projects in Africa, Asia, and Latin America, helping more than 200,000 smallholder farmers and 2 million people.


Mission: Co-create INNOVATIVE business solutions with NOT FOR PROFIT ORGANIZATIONS that generate SOCIAL AND ECONOMIC VALUE for the small players

in the local economy and Danone.

MICRODISTRIBUTION SMALL DISTRIBUTORS

SOURCING –SMALL FARMERS

RECYCLING –WASTE PICKERS

TERRITORY – AGRICULTORS

CARING SERVICES –CARERS- CARE GIVERS

25 Countries

54 Projects

42 NGO partners

40 CBU’S

LEADING THE PATH ON SOCIAL INNOVATION3. DANONE ECOSYSTEME FUND


http://www.dailymotion.com/video/x2u6eqd




DANONE’S FOUR BUSINESS LINES INSPIRED BY A COMMON VISION:

FRESH DAIRY PRODUCTS, WATERS, EARLY LIFE NUTRITION AND MEDICAL NUTRITION

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FRESH DAIRY PRODUCTS KEY FACTS

Top 3 growth-contributing

brands***

€11,129 mlnSales in 2014

+ 1.5%Sales growth like-for-like

Top 3 countries for the division*

Russia

USA

France

*Top 3 countries in sales, FY 2014 / ** Top 3 countries in terms of contribution to the division’s growth, FY 2014 / *** Top 3 brands in terms of contribution to the division’s growth, FY2014

Top 3 growth-contributing countries**

Russia

Brazil

Argentina

Prostokvashino

Vitalinea / Light & fit

Oikos

3 global brands


AN UNDISPUTED LEADERSHIP WORLDWIDE

#1

#2

Other position

Danone World Market Share in 2014 = 25.6%Competitors #2 & #3 = approx 4.8%

84% of Danone Sales from countries where we are #1

Value Market Share MS FY 2014 – retail panel (Nielsen et IRI) and Euromonitor


Top 3 growth-contributing brands***


* Top 3 countries in sales, FY 2014/ ** Top 3 countries in terms of contribution to the division’s growth, FY 2014 / *** Top 3 brands in terms of contribution to the division’s growth, FY 2014


China

Indonesia

Argentina

WATERS KEY FACTS

€4,186 mlnSales in 2014


China

Indonesia

Mexico

Mizone

Aqua

Villa del Sur


PROMOTING WATER AS THE BEST WAY TO HYDRATE

of our body is water


GROWING OUR SHARE IN THE NABS CATEGORY

Competing in the NABs market

Growing “share of throat” of water

Nourishing our meaningful brands

Launch Aquadrink as an alternative to sweeter drinks


EARLY LIFE NUTRITION KEY FACTS

Top 3 growth-contributing brands***

Aptamil

Nutrilon

SGM



€4,397 mlnsales in 2014


* Top 3 countries in sales, FY 2014 / ** Top 3 countries in terms of contribution to the division’s growth, FY 2014 / *** Top 3 brands in terms of contribution to the division’s growth, FY 2014

Indonesia

France

China

Germany

Indonesia

Netherlands


OUR MISSION: ‘STAND BY MUMS,

TO NURTURE NEW LIVES’


THE RELEVANCE OF EARLY LIFE NUTRITION


THE FIRST 1000 DAYS ARE A UNIQUE WINDOW OF OPPORTUNITY

1000 days to build the child’s best health foundations

Pregnancy LactationSolid food introduction

Young child development

-9 to 0 m 0 to 6 m > 12 m6 to 12 m


Dry FoodCereals

OUR PRODUCT PORTFOLIO

Tailored Nutrition

Preterm, allergy, digestion

MilksP&Bf, IF, FO, GUM

Wet foodFruits, meals

Baby Foods Pharma like

15% 85%

http://cdn.shopify.com/s/files/1/0802/7583/products/Cereales_instantanees_saveur_vanille_des_6_mois_-_Bledine.jpeg?v=1427493137

http://w-spodnicy.ofeminin.pl/g/Kobieta.obiekt3.aspx/0/460/Kobieta/e1380bd1-bd13-4503-8c2d-725aa1b5852f_20120919015333_Bobovita-kaszka-psz-zyt-pelne-ziarno-dla-malego-brzuszka.jpg

http://www.aptekaotc.pl/images/9682B.jpg


MEDICAL NUTRITION KEY FACTS



* Top 3 countries in sales, FY 2014 / ** Top 3 countries in terms of contribution to the division’s growth, FY 2014 / *** Top 3 brands in terms of contribution to the division’s growth, FY 2014

UK

Germany

France

Turkey

Brazil

China

€1,432 mlnin sales in 2014


Top 3 growth contributing brands***

Neocate

Nutrini

Nutrison


MEDICAL NUTRITION’S BRAND AND MISSION…

For Healthcare Professionals: be integral part of disease

management

For Patients and Caregivers: improve health status and

quality of life


… BRINGS BENEFITS ACROSS THE LIFESPAN

EARLY DEVELOPMENTNeuro-disabilities,

metabolic disorders, infant allergy, faltering growth

ADULT CRITICAL CAREICU/tube feeding, cancer,

strokes, dysphagia

AT RISK & PRE-FAILHealth maintenance,

appetite loss, secondary prevention

DISEASE & FRAILTYMalnutrition, sarcopenia,

Alzheimer’s, palliative care


Danone in Turkey



A GLOBAL & NATIONAL PRESENCE

8 factories, 7 Water & 1 Dairy

1 000 employees1 HQ in Istanbul

25 Years in Turkey


TL500 million

No. 1Early life Nutrition

TL300 million

No. 3 Fresh Dairy Products

TL 500 million+10% in 2015 vs YA

No. 2Waters

No. 1Medical Nutrition

STRONG POSİTİON ON OUR 4 BUSINESS ACTIVITIES

TL 1.5 million


… COVERING NEEDS AND DEMANDS AT EVERY AGE

Growth/ Building Capital

Maintenance/ prevention

Ageing process/ Problem solving

Spec

ific

nutr

ition

/ Fo

od n

eeds

Infants/Children Adults SeniorsLow

High


Focus on HAYAT



Turkey : 8th Largest Bottled Water Market (volume)

50

USA CHINA MEXICO0

5000

10000

15000

20000

25000

30000

35000

HODPET

INDONESIA

BRAZIL

GERMANY

ITALY

TURKEY

FRANCE

SPAIN

INDIA

ARGENTIN

ARUSSI

A

SAUDI A

RABIA

POLAND

0

2000

4000

6000

8000

10000

12000

14000

16000

HODPET

Source: Canadean 2009 except Indonesia: Zenith 2009

70% HOD / 30% PET

Volumes 2009


Market mainly Composed of Still Water

Market Size10,6 Billion Liters

3,7 Billion TL ( €1,5 Billion)

Source: Suder for HOD and PET & Nielsen for FSW & PSW


Spring Water PET & HOD Sparkling Water Plain & Flavoured

76% of CANN 24% of CANN

Our CBU Portfolio


Life=


EnthusiasmLove of LifeEnergyProsperity High

Spiritidness

We Stand for:


We are a well known & established brand...


..with the broadest range in the market:

There is Hayat for Each Member of the Family


..while being the leader in innovation


Our role is to surprise people and make their lives more exciting


We are a Young , Cheerful , Cool and Fun Brand with A Unique Style

and of course we are full of surprises

conférence danone à l'université galatasaray le 21 octobre 2015

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