TALENT DEVELOPMENT PROGRAM LATAM INNOVATION

1 Mercer LACBF Meeting_ 16 GETTINGApril 2015 TO KNOW GETTING TO KNOW DANONE 2 QUIZZ

DO YOU KNOW THE ORIGINE OF THE NAME

DANONE?

3 HISTORY

1919 Danone was founded by in Barcelona , España

Aware on the researchs from Nobel laureate and Pasteur Institute director Elie Metchnikoff on lactic ferments, Isaac Carasso introduced yogurt to treat the local children suffering from intestinal disorders.

Doctors in Barcelona prescribed yogurt for their patients

Isaac named the new brand after his son Daniel, whose nickname in Catalan was “Danon”

4 HISTORY

1929 Daniel Carasso himself rolled out the brand in .

1942 During the occupation of France in World War II, Daniel emigrated to the , where he founded Dannon US .

Danone Spain, Danone France and Dannon grew rapidly throughout the 1950s 1966 Antoine Riboud created BSN Merging Boussois, producer of flat 1967 Danone France merged glass, with Verreries Souchon- with Fromageries Gervais to Neuvesel. become France’s leading fresh dairy specialist Riboud’s next strategie “from container to content.”

1970 Beverage business with Evian

and beers Kronenbourg 5 HISTORY

DECEMBER 1972 Merge BSN-GERVAIS-DANONE Riboud’s Speech of Defined corporate social responsibility. The milestone of DANONE’s values and dual project (Economic & Social) 1980 BSN-GERVAIS-DANONE’s expansion in Food Business Amora, Maille, Vandamme, La Pie Qui Chante, Liebig, Galbani , Volvic

1986 BSN-GERVAIS-DANONE’s includes Biscuits

1990’ Expansion in Eastern Europe, Asia & LATAM

6 HISTORY

1994 BSN-GERVAIS-DANONE becomes DANONE

1996 Franck Riboud succeeds his father

1997 The group focused on FRESH DAIRY PRODUCTS, WATERS AND BISCUITS 2006 Making Health our Mission Creation of Grameen DANONE Foods in Bangladesh (social business designed to produce nutrient-fortified yogurt that poor rural populations can afford) 2007 DANONE sold the Biscuits Business Acquisition of Royal Numico, a global leader in BABY and MEDICAL NUTRITION 2009 Creation of Danone EcoSystem Fund (to finance and developp dairy farming, local distribution systems, packaging recycling networks, personal services, and socio-economic development in the regions around our plants) 7 HISTORY

Sept 2014 First Talent in DANONE HISTORY

Sept 2014 First Talent in DANONE

Emmanuel FABER succeeds Franck Riboud 1996-2013: FOCUSING THE PRODUCT PORTFOLIO ON HEALTHY FOOD

10 DANONE: A UNIQUE MISSION

11 A PRODUCT RANGE 100% HEALTH DRIVEN IN LINE WITH OUR MISSION

BRINGING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE

A 100% health portfolio

Growth/ Maintenance/ Ageing process/ Building Capital prevention Problem solving High Food needs Food Specific nutrition/ Specific nutrition/

Low

Infants/Children Adults Seniors A PRODUCT RANGE 100% HEALTH DRIVEN IN LINE WITH OUR MISSION 2013 SALES BY BUSINESS LINE

€4.3 billion €1.3 billion 6% +3.6% like-for-like growth in 2013 +5.8 %* like-for-like growth in 2013 No. 2 worldwide 20% No. 1 in Europe Early life Nutrition Medical Nutrition €21,298 mln

€3.9 billion 18% +11,2 %* like-for-like growth in 2013 €11.8 billion 56% +3,3 %* like-for-like growth in 2013 No. 2 worldwide (by volume) No. 1 worldwide Waters Fresh Dairy Products 1996-2013: A NEW GLOBAL EQUILIBRUM

15 2013 SALES BREAKDOWN BY GEOGRAPHY

2013 sales by geography Top 10 contributors to 2013 sales

#1 Russia 11%

#2 France 10%

#3 United States 8%

#4 China 7% ALMA Europe #5 Indonesia 6% 39% 39% #6 Spain 5%

#7 Mexico 5%

#8 Argentina 5%

CIS & Noram #9 United Kingdom 5% 22% #10 Brazil 4%

Russia, France & USA represent over >60% of sales in growth markets 25% of Danone’s sales worldwide. DANONE TODAY

From 9 business lines in 1996 (Fresh Dairy Products, Waters, Biscuits, Sauces, Pastas, Cheeses, Ready-to-Eat Meals, Glass and Beer) into just 4 business lines in 2012 (Fresh Dairy Products, Waters, Baby Nutrition and Medical Nutrition)

From 77% of 1996 sales from Western Europe to more than 60% in Emerging Countries today Business Expansion in Emerging Countries

More than 62,000 Employees in Emerging countries (over 120,000 employees)

Need to transforme the way the global workforce is sourced, organized and managed PEOPLE DEVELOPMENT WITH INTERNATIONAL MOBILITY

- Support the business growth - Develop our talents • Expand business in new countries • Prepare future Directors & GMs and accelerate • Accelerate business development the development of Managers • Transfer technical competences and know-how • Benefit from cross-fertilization through diversified team • Transmit and embark Danone culture • Build international mindset and networks

International contribution along a CBU journey MOBILITY TALENT PROGRAM

Development Program designed mainly for Middle & Senior Management

LATAM SITUATION

Directors (pc 60 & above)

Middle Management

Until 2010 very few offer for Juniors Talent JUNIOR TALENT MOBILITY TALENT PROGRAM

Programs and Mobility Policies mainly focused on

Source: MERCER, 2012 WHAT ABOUT JUNIOR TALENTS?

Who are they? Many publication today on Millennials (Gen Y) One of the most studied generation in the history! Will become soon the dominant age group in work place

What do they want? - Career opportunities - Mobility - On-the-job training : coached - Recognition - Feedbacks - Fast promotion WHAT ABOUT JUNIOR TALENTS?

Who are they? Many publication today on Millennials (Gen Y) One of the most studied generation in the history! Will become soon the dominant age group in work place

What do they want? - Career opportunities - Mobility - On-the-job training : coached - Recognition - Feedbacks - Fast promotion

KEY BET TO ATTRACT, MANAGE AND RETAIN THOSE TALENTS JUNIOR TALENT PROGRAM IN LATAM Already in 2010 Decision to create in LATAM a JUNIOR TALENT PROGRAM

OBJECTIVES to boost career development through exposure in a different environment to create networking & learning opportunities at early stages to increase best practices sharing among CBUs to make Danone international opportunities a reality

TO WHOM Clear Profile Defintion Less than 30 yo and at least 2 years working experience in Danone (less than 5y of experience) High Potential Available to travel to any country

HOW Short term assignment (6 months) For SPECIFIC PROJECT With TUTORS in Host and Home (different from the Supervisor in the host) Host CBU Tutor : Facilitates integration / Provides regular feedback to ensure project stays on track and objectives are achieved Home CBU Tutor : Key contact person within Home company / Provide technical support With EVALUATION from the Host tutor at the end of the assignment With PRESENTATION from the Assignee of the experience & achievment to the Business Boards (Host & Home) With clear new Job at return JUNIOR TALENT PROGRAM IN LATAM

Already in 2010 The answer to Millennial Generation expectatives

Job Opportunities

Challenges (strategic(strategic project and exposure)exposure )

Fast Moving / Driven by next step

Coached / Mentored

Recognition Jaguar Program

OUR EVP FOR JUNIOR TALENT Part of a community JAGUAR PROGRAM DESIGN

JAGUAR COMMITTEE HRD from all Businesses in LATAM + Regional HR

End of the Year, listing of…. Projects Candidates Linked with CBU strategy , with impact to the High Potential business Less than 30yo Relevant for young talent learning & At least 2 years experience within DANONE development < 5 years experience Give exposure and visibility to top Available to work in any country management Has to be defined, with expected outcome Challenging but feasible to achieve during a short-term assignment Matching done

Preparation of the Move

May/June to Oct/Nov Assignment

End of the Year Evaluation JAGUAR PROGRAM DESIGN

GREAT INITIATIVE AND AMBITION in an VERY RESTRICTIVE ECONOMIC ENVIRONMENT

Policies at our Full Expat Package (host based policy) disposal Mission for expert Commuting

Costly package / Not affordable for the Businesses / How to ensure offer for Talents from High costly countries (for ex: Brazil vs Argentinian) JAGUAR PROGRAM DESIGN

GREAT INITIATIVE AND AMBITION in an VERY RESTRICTIVE ECONOMIC ENVIRONMENT

Policies at our Full Expat Package (host based policy) disposal Mission for expert Commuting

Costly package / Not affordable for the Businesses / How to ensure offer for Talents from High costly countries (for ex: Brazil vs Argentinian)

A possible approach Decrease drastically the offered benefits and supports Or managed as Light Local+ JAGUAR PROGRAM DESIGN

GREAT INITIATIVE AND AMBITION in an VERY RESTRICTIVE ECONOMIC ENVIRONMENT

Policies at our Full Expat Package (host based policy) disposal Mission for expert Commuting

Costly package / Not affordable for the Businesses / How to ensure offer for Talents from High costly countries (for ex: Brazil vs Argentinian)

A possible approach Decrease drastically the offered benefits and supports Or managed as Light Local+ JAGUAR PROGRAM DESIGN

1) A PROGRAM BASED on MISSION PACKAGE APPROACH Business Trip

Stay on Home payroll

Current Payroll Mass for the Home CBU

Flight ticket

Get reimbursed Hotel

Get reimbursed Restaurant

Get Business Travel Insurance JAGUAR PROGRAM DESIGN

1) A PROGRAM BASED on MISSION PACKAGE APPROACH Business Trip JAGUAR Package

Stay on Home payroll Stay on Home payroll

Current Payroll Mass for the Home CBU Current Payroll Mass for the Home CBU

Flight ticket Flight ticket in Eco (with 1 escale allowed)

Get reimbursed Hotel Get paid Accomodation (studio or apart hotel selected by Host cbu / colocation)

Get reimbursed Restaurant Get paid a Per Diem (for 1 meal per day in Host city)

Get Business Travel Insurance Get International Health Insurance (for emergencies. Costs : 600eur for 6 months) and Repatriation Insurance (Costs : 59eur for 6 months)

Get 1 return ticket if Christmas period during the assignement

Visa + 45kg extra lugage JAGUAR PROGRAM DESIGN

2) A PROGRAM BASED on SWAP OF TALENT and SPLIT of COSTS CBU 1 CBU 2

CBU 1 keeps his Talent’s payroll costs CBU 2 keeps his Talent’s payroll costs Already in the annual Budget Already in the annual Budget CBU 1 pays the 6 months supports CBU 2 pays the 6 months supports Investment for the development of its Investment for the development of its Talent / Costs related to local reality Talent / Costs related to local reality JAGUAR PROGRAM DESIGN

ARGENTINA BRAZIL

ARGENTINIAN CBU COSTS BRAZILIAN CBU COSTS To receive a Brazilian To receive an Argentinian

Argentinian Payroll Mass Brazilian Payroll Mass

To develop its Talent To develop its Talent Per diem based on arg index Per diem based on brazilian index Local Accomodation in ARS Local Accomodation in BRL

Program Investment from 10,000 to 15,000 usd JAGUAR EXAMPLE : A SUCCESS STORY

IS PROJECT (New Scheme & orga for service level monitoring & communication) implemented in Argentina and in Mexico

MEXICAN TALENT

Competencies: KPI monitoring & follow up Opportunity of development: Marketing & Communcation

ARGENTINIAN TALENT Competencies: Marketing & Communication Opportunity of development: KPI monitoring & follow up

Complementary profile for same Project in both countries JAGUAR EXAMPLE : A SUCCESS STORY

IS PROJECT (New Scheme & orga for service level monitoring & communication) implemented in Argentina and in Mexico

MEXICAN TALENT ARGENTINA

Competencies: 6 months KPI monitoring & follow up Opportunity of development: Marketing & Communcation

ARGENTINIAN TALENT Competencies: Marketing & Communication Opportunity of development: KPI monitoring & follow up Main objective : Implementation of KPI follow up Complementary profile for same Project in both countries Jaguar Development: Learning on “Communication” JAGUAR EXAMPLE : A SUCCESS STORY

IS PROJECT (New Scheme & orga for service level monitoring & communication) implemented in Argentina and in Mexico

MEXICAN TALENT ARGENTINA MEXICO Competencies: 6 months 6 months KPI monitoring & follow up Opportunity of development: Marketing & Communcation

ARGENTINIAN TALENT Competencies: Marketing & Communication Opportunity of development: KPI monitoring & follow up Main objective : Main objective : Implementation of KPI follow up Implementation of communication tool kit Complementary profile for same Project in both countries Jaguar Development: Jaguar Development: Learning on “Communication” Learning on “KPIs follow up” JAGUAR EXAMPLE : A SUCCESS STORY

IS PROJECT (New Scheme & orga for service level monitoring & communication) implemented in Argentina and in Mexico

MEXICAN TALENT ARGENTINA MEXICO Competencies: 6 months 6 months KPI monitoring & follow up Opportunity of development: Marketing & Communcation

ARGENTINIAN TALENT Competencies: Marketing & Communication Opportunity of development: KPI monitoring & follow up Main objective : Main objective : Implementation of KPI follow up Implementation of communication tool kit Complementary profile for same Project in both countries Jaguar Development: Jaguar Development: Learning on “Communication” Learning on “KPIs follow up”

JUNIOR TALENTS CO-DEVELOP THEMSELVES JAGUAR PROGRAM AFTER 4 YEARS

60 JUNIORS developed in LATAM Marketing 17 Sales 10 Supply 9 3 Top Functions: Marketing, Sales, Supply Human Resources 7 Finance 6 Industry 4 Countries Home & Host IS 2 Argentina, Brazil, Chile, Colombia, Mexico, Uruguay Purchasing 2 Quality 2 R&D 1 Evaluation 100% Satisfaction of Tutors & GM sponsors 96% Satisfaction of Assignee

No resignation

Promotion within the 6 months after return JAGUAR PROGRAM : KEY LEARNING

Pragmatical constraints: Immigration Countries will need to transform their rules as well with the new Mobile Workforce

Max 180 days in the host country: fiscal purpose

Need correct selection of candidates and projects

Anticipation: unexpected event creates extra costs Clear growth deal with HOME HR: Next Position at return

HOST HR team’s strong implication (welcome, induction, supports) Problems on pragmatical daily basis for only 6 months, create the unsatisfaction

SELECTION The right person at the right place for the right PREPARTION period and for the right cost ANTICIPATION JAGUAR PROGRAM : 2015

In 2015, extension of the program at Global Level

Jaguar Program

New program in progress in LATAM for Middle Management Talent, since 2013

Efficient co-Work between Talent Management Team and C&B/Mobility Team GRACIAS OBRIGADA

THANK YOU

MERCI