Danone Sales Q3 12 - Web Version

7/28/2019 Danone Sales Q3 12 - Web Version

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Sales Q3 2012

October 17th, 2012


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2

Disclaimer

This document contains certain forward-looking statements concerning DANONE. Although

DANONE believes its expectations are based on reasonable assumptions, these forward-lookingstatements 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

DANONEs 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 documentdoes not constitute an offer to sell, or a solicitation of an offer to buy, Danone shares.


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4.3%

0.1% 1.6%

3.4%

Q3 2011 Currency Scope Volume Value Q3 2012

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4,805 mln

+5.0%Like-for-like (1)

Sales growth analysis Q3 12

+9.4%Reported

5,257 mln

(1) Like-for-like : Based on constant scope of consolidation and constant exchange rates


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2.7%

0.0% 2.0%

3.6%

9M 2011 Currency Scope Volume Value 9M 2012

4

Sales growth analysis 9M 2012

4

14,532 mln

15,733 mln

+5.6%Like-for-like

+8.3%Reported


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7.8%

5.6%

FY 11 9M 12

Like-for-like sales growth

Total Group : Q2 sales growth continuing in Q3

5

8.5% 8.8%

5.9%

7.8%

6.9%

5.0% 5.0%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

A contrasted quarter again

Emerging markets and North America continuing strong

Further deterioration in Western Europe, driven by Southern Europe


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3.7% 4.2%

0.1%1.5% 0.9%

-1.0%-1.5%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Dual geographical dynamics

6

EUROPE

ASIA

REST OF THE WORLD

Like-for-like sales growth by region

14.8%12.6% 11.5%

14.4%12.7%

10.7% 10.5%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

18.0%20.8%

19.6%22.0%

19.4%17.2% 18.3%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12


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5.0%

3.1%1.5%

2.2% 2.2% 2.1% 1.6%

3.5%

5.7%

4.4%

5.6%4.7%

2.9% 3.4%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Volume and Price/mix growth

7

Total Group : Resilient mix

Soft volume, mix remaining strong

3.0%2.0%

4.8%

3.6%

FY 11 9M 12

Volume Growth

Price / mix


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8

Sales performanceby division

8


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6.5%

5.5%

3.5%3.0%

3.8%

2.1%

0.7%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12


FRESH DAIRY Further deterioration in Europe

9

4.6%

2.2%

FY 11 9M 12

CIS and North America : on plan and accelerating vs Q2

Continued outperformance in Latam and Africa Middle East

Western Europe deteriorating further, sales decline exceeds 10% in Southern Europe


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2.9%

(0.2%) (1.5%) (1.7%) (0.1%)(0.3%) (0.7%)

3.6%

5.7% 5.0%

4.7%3.9%

2.4% 1.4%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12


10

-0.1%-0.4%

4.7%

2.6%

FY 11 9M 12

Volume Growth

Price / mix

FRESH DAIRY Volume slightly negative

Volume remaining slightly negative, impacted by further deterioration in Europe,while continuing to progress in CIS and North America


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FRESH DAIRY USContinued share gains globally and on the Greek segment

Danone

Greek(1)$ sales

x 2.1

11

Total Danone

Competitor 1

Competitor 2

Danone Greek(1)

(1) Dannon + Stonyfield + Light & Fit Greek 11

USValue Market sharesSource : IRI Multi-Outlet with Walmart

YTD 2011 YTD 2012

31,9

27,0

16,3

8,5

Q4 2011 Q3 2012


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FRESH DAIRY CISFrom integration in 2011 to growth in 2012

2012 agenda: Activating the key brands

1212

Integration

Drive efficiency to invest behind brands

Segment the portfolio

2011 priorities

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

Danone-Unimilk CIS % volume growth


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(1) YTD September 2012 like-for-like growth - CIS 13

FRESH DAIRY CIS Leveraging priority brands

13

+19%(1)

Prostokvashino

New identity since Q2

Tma

from a Dairy brand for babiesto a Babyfood brand

+12%(1)


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FRESH DAIRY Selected innovations

14

Breakfast Yogurt Big bottle(Poland)

Densia Forte(Spain)

Danonki Single Cup

(Poland)

Velout Fruix Kiss cup introduction(France)

#3 in Europe#25 Worldwide

Vitalinea PRO(Spain)


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13.3%

18.9%

7.9%

23.3%

16.4%

4.6%

12.3%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

15


WATERS Strong performance

15.7%

10.5%

FY 11 9M 12

Continued strong underlying category dynamics

Continued outperformance of Emerging markets & Aquadrinks

Favourable 2011 comparables in Western Europe, but poor weather in July


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10.7% 10.0%

4.9%

10.1%7.7%

3.1%5.4%

2.6%

8.9%

3.0%

13.2%

8.7%

1.5%

6.9%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

WATERS Balanced growth

16


Solid volume growth

Positive product mix brought by good performance of Western Europe & Aquadrinks

Volume Growth

Price / mix

8.8%

5.3%

6.9%

5.2%

FY 11 9M 12


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WATERS Selected innovations

17

Font Vella Limited edition(Spain)

Bonafont HOD

11L new PET format(Mexico)

Bonafont Kids - Jugo Mango(Mexico)

Mizone - Multipack new design(China)


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BABY NUTRITION Continued excellent performance

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11.2%

9.6%10.5%

11.4%

9.0%

13.6%

11.5%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

10.7%11.4%

FY 11 9M 12

Continued great performance across the board, boosted by Asia

China : good acceptance of the renovated Dumex range

Positive mix from Milk outperformance vs Food decline


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CHINA : Renovating Dumex

STAGE ENHANCED NUTRITION

14.5

15.0

YTD 2011 YTD 2012

Danone value market sharesModern Trade Total milks (August 2012)

19


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BABY NUTRITION Selected innovations

20

MellinAffordable Format

(Italia)

MilupaAptamil Cereal

(Turkey)

Malyutka Cereals with juices(Russia)

Dumex Mamil PreciNutri Range(Malaysia)


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MEDICAL NUTRITION Soft performance

21


9,3% 8,7% 9,8% 9,8%

6,4% 6,7%

4,9%

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12

9,4%

6,0%

FY 11 9M 12

Performance hit by deterioration in some European markets

China, Turkey & Brazil outperforming


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MEDICAL NUTRITION Selected innovations

22

Complan renovation(UK)

Neocate LCP Special Recipe(China)

SouvenaidPhased introduction in 4 countries

StrawberryVanilla

For the dietary management of earlyAlzheimers Disease

For patients under medical supervision


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23

Balance sheet management

2323

Completed : repurchase of 6 mln treasury shares given in payment to ex-minorityshareholders in Danone Spain

500-700 mln Share Buy-Back in the next 4 months


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24

OUTLOOK

24


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-50 bpsTrading operating margin(1)

25

2012 Objectives

(1) Like-for-like : Based on constant scope of consolidation and constant exchange rates

5-7%

Objectives 2012

Sales growth (1)

2 bnFree cash flow (2)

25(2) Free cash flow: Cash flow from operations less capital expenditure (net of disposals) and excluding businesscombinations fees 25


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26

APPENDIX


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Impact of currency and scope Q3 12

27

Currency

Scope of consolidation

Reported sales growth

+5.1%

+0.4%

+17.8%

+3.6%

+0.2%

+4.5%

WatersDairyBaby

Nutrition

+5.7%

+0.0%

+17.2%

Medical

Nutrition

+8.4%

+3.7%

Group

(0.2)%

+4.3%

+9.4%

+0.1%

Like-for-like sales growth +12.3%+0.7% +11.5% +4.9% +5.0%


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Impact of currency and scope 9M 2012

28

Currency

Scope of consolidation

Reported sales growth

+3.0%

(0.1)%

+13.4%

+2.2%

(0.1)%

+4.3%

WatersDairyBaby

Nutrition

+4.3%

+0.0%

+15.7%

Medical

Nutrition

+9.0%

+2.5%

Group

+0.5%

2.7%

+8.3%

+0.0%

Like-for-like sales growth +10.5%+2.2% +11.4% +6.0% +5.6%


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Q3 2012 sales by business & geographical area

29

Fresh Dairy Products 2,910

Baby Nutrition 1,062

Waters

Medical Nutrition

+11.5%

+4.9%

+12.3%

+0.7%

962

323

mln

Europe

AsiaRest of World

2,682

1,629946

Q3 2011 Q3 2012Like-for-likesales growth

GROUP 5,257 +5.0%

2,785

906

816

298

2,661

1,404740

4,805

(1.5)%

+10.5%+18.3%


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Q3 2012 like-for-like sales growthBreakdown volume/value

30

+6.9%

(1.0)%

+7.9%

+1.4%

+5.4%

+5.9%

+3.6%

(0.7)%

+1.1%

+5.5%

+9.4%

(2.6)%

+5.0%

+8.9%

Like-for-like

GROUP +1.6% +3.4%

Volume Value Total

Fresh Dairy Products

Baby Nutrition

Waters

Medical Nutrition

Europe

Asia

Rest of World

+11.5%

+4.9%

+12.3%

+0.7%

+5.0%

(1.5)%

+10.5%

+18.3%


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9M 2012 sales by business & geographical area

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Fresh Dairy Products 8,816

Baby Nutrition 3,152

Waters

Medical Nutrition

+11.4%

+6.0%

+10.5%

+2.2%

2,817

948

mln

Europe

AsiaRest of World

8,231

4,7942,708

9M 2011 9M 2012Like-for-likesales growth

GROUP 15,733 +5.6%

8,457

2,723

2,483

869

8,203

4,1942,135

14,532

(0.6)%

+11.3%+18.2%


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9M 2012 like-for-like sales growthBreakdown volume/value

32

+10.5%

+6.0%

+11.4%

+2.2%

+5.2%

(0.7)%

+6.6%

+2.6%

+5.3%

+6.7%

+4.8%

(0.4)%

+2.0%

+6.9%

+5.8%

(2.6)%

+4.4%

+12.4%

Like-for-like

GROUP +2.0% +3.6% +5.6%

Volume Value Total

Fresh Dairy Products

Baby Nutrition

Waters

Medical Nutrition

Europe

Asia

Rest of World

(0.6)%

+11.3%

+18.2%


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Changes in exchange rates40% of sales denominated in

33

US Dollar 9%

Polish Zloty 3%4%Brazilian Real

10%Russian Ruble

6%Chinese Yuan

2%Turkish Lira

2%Canadian Dollar

Mexican Peso 5%

+10%

+13%

(1)%

+2%

(5)%(7)%

+7%

+0%

5%British Pound +7%

9M 12% total sales

9M 12 vs9M 11 (avg)

Q3 12 vsQ3 11 (avg)

6%Indonesian Rupee +3%

+13%

+14%

+9%

+3%

+0%(9)%

+11%

+5%

+11%

+2%

5%Argentinean Peso +1% +2%

Documents

Danone Sales Q3 12 - Web Version