NUTRITION ACHIEVEMENTS 2017

DANONE 15 rue du Helder, 75439 Paris Cedex 09 France Alimentation Science Department - One Health Governance & Policy Contact: martine.piaia@.com Copyright: Haley Thomas, IStock. Concept/Design: www.because.fr Printed by: ACI

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Integrated report 2017: DANONE DANONE COMMITMENTS COMMITMENTS REPORTING ON REPORTING ON REPORTING

www.danone.com

About Danone (www.danone.com) Dedicated to bringing health through to as many people as possible, Danone is a leading global food company built on four business lines: Essential Dairy and Plant-Based Products, Early Life Nutrition, Waters and Medical Nutrition. Through its mission and dual commitment to business success and social progress, the company aims to build a healthier future, for all its stakeholders — it's more than 100,000 employees, consumers, customers, suppliers, shareholders and all the communities with which it engages. With our products being present in over 120 markets, Danone generated sales of approximately €24.7 billion in 2017. Danone’s brand portfolio includes both international and local brands (, Danone, Oikos, Danio, , , Danonino, Danette, Danissimo, Light&Free, Horizon, , Aptamil, Nutrilon, Nutrison, Fortimel/Fortisip, Neocate, Nutrini/Infatrini, , , , les 2 vaches, DanActiv, Danimals, Dannon, Happy Family, YoCrunch, , So Delicious, , , Magicow, SToK, , Cow&Gate, Blédina, Bebelac, Malyutka, Dumex, Aqua, Mizone, Bonafont, Villavicencio, Villa del Sur, Fontvella, Lanjarón, Zywiec Zdroj). IMPACT PEOPLE’S HEALTH LOCALLY

Our mission is to bring health through food to promote healthier alternatives for better end of 2016 with strong, measurable and as many people as possible. We have created choices. Beyond products, we will accelerate time-bound objectives are fully integrated DANONE GOALS FOR a unique portfolio of healthy products to on current and new initiatives (programs and into this goal. This leaflet is the first A FOOD REVOLUTION complete this mission, and we strive to services) with partners to impact dietary reporting on this company goal. BY 2030 continuously optimize their nutritional profile. habits positively. All this acting responsibly Also, we build on our in-depth knowledge of in marketing and nutrition labeling. We firmly believe that the health of local food cultures, food habits and public The six Danone Nutrition Commitments people and planet are interconnected. health challenges to innovate and actively (identified below by the symbol ) published Both need to be nourished and protected. At the same time, the world

over, people are reinventing how to eat, Nutrition drink and socialize over food. In line #3 Commitments with our “One Planet. One Health” OUR IN-DEPTH vision and to adequately respond to 2 ASSETS OUR HEALTHY PORTFOLIO KNOWLEDGE OF LOCAL the challenges and opportunities of HABITS & CULTURES FOOD CAN CHANGE THE WORLD the ongoing food revolution, we have Each time we eat and drink, we can vote Where our relationship with defined our Danone 2030 Goals. The integrated set of 9 long-term goals We innovate to create We encourage healthier #5 for the world we want to live in. This the 900 million people who buy We continuously powerful idea is at the heart of the Food our brands is a force for good. embeds Danone’s business, brand and 3 LINES and promote healthier eating and drinking trust models. The Danone 2030 Goals improve our products’ Revolution. A revolution led by Danoners, We believe a healthy body needs healthy OF alternatives* practices are aligned with the 2030 Sustainable ACTION nutritional profile together with consumers, retailers, food. And healthy food needs a healthy (within and cross-categories) (by programs & services) #6 farmers, suppliers and NGOs all designing, planet. All with healthy ecosystems and Development Goals of the United producing, marketing and consuming strong, resilient social structures. We simply Nations, thus adopting a language food in a new way – a way to protect and can't have one without the others. that is universally understood. BETTER PRODUCTS BETTER CHOICES BETTER HABITS nourish health of the people and health That's what our new signature, “One Planet. + We act 3 LEVELS #1 #2 #4 responsibly in of the planet. One Health”, encapsulates. It's a rallying call OF IMPACT Marketing & We’ve chosen this path because at Danone, to everyone to join the Food Revolution. Labeling we want to be a change agent – a catalyst of To join us in unleashing the power of food We only live once”. Those words kick-started this revolution. We want to make the Food and drink to change our lives and the world. a vision that lives on today: to bring health Revolution a reality for as many people as This “One Planet. One Health” signature to our company and its ecosystem, possible, all across the world. marks a new endeavor for Danone. to our planet, and to generations 1 COMBINED IMPACT = Why? Because we believe in a food and But it comes from the same pioneering of people, now and in the future. GOAL water ecosystem that works in harmony with spirit we've always had. In 1972, Antoine And we work to make these words HEALTHIER EATING & DRINKING HABITS people, communities and the environment. Riboud said: “There is only one Earth. a reality every day. * Only exception: the breastmilk substitutes.

2 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 3 Commitment #3 OUR SECOND OBJECTIVE ASSET OUR IN-DEPTH KNOWLEDGE OF LOCAL HABITS AND CULTURES 2020 OUR FIRST OUR PORTFOLIO % ASSET of major100 markets covered*

SOCIO CULTURAL STUDIES 1 major method to capture social and cultural aspects of alimentation: FURTHER REINFORCE FoodStyles is a comprehensive study generating data, for a given community and at country level, on people’s real-life practices, norms DANONE IS FOCUSED and representations – associated to food. i.e. what are practices OUR UNDERSTANDING around purchasing, preparing meals and consuming; what is forbid- ON HEALTHY CATEGORIES den, compulsory, permitted; what’s the sense given to eating based Sales volumes by product categories in 2017 * OF LOCAL CONTEXTS on local cultures, values, beliefs. It enables to capture the reality as it is and highlight people’s routines FOOD AND NUTRIENT INTAKES VS NEEDS and tensions. By knowing and understanding the socio-cultural 3 types of studies to fully cover the local context in terms of intakes dimensions of alimentation we are able to design solutions fitting vs recommendations: within the culture and routines, to make sure that we contribute to The remaining • Nutriplanet: it is a comprehensive analysis of local nutrition and amplifying favorable dietary habits. We make it by working in col- 12% are: health contexts based on a review of the scientific literature, laboration with experts in food socio-anthropology. KS & FOO WDER IL D PO - M M S - low sugar enhanced by interviews with local experts and key opinion leaders. & IL Y S K B K S beverages This tool enables to gather, for a single country, all existing scientific L A I A CO BUILD WITH

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M B - indulgent products facts and figures like the nutritional recommendations, the nutri- & OTH O

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R • Dietary intake assessment: we use dietary intake surveys to under- Y active at local level with whom the subsidiaries

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O E stand what people are eating and drinking, and compare their intakes are in regular contact S D T N U C M with dietary recommendations. In some countries, national dietary intake surveys are carried out by government or research institutes, R TE and these data can be analyzed to understand the local needs. A In other countries no dietary intake data exist and we conduct our W own surveys. AGES W ER IT V H • Fluid intakes: measuring accurately drinking habits requires specific E 0 B %

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% R dated and published original approach to gather individual drinking 88of volumes sold habits data at population levels. These surveys are run regularly and in 2017 are in healthy their main results published in peer review journals. categories * We aim at covering with each type of study enough countries to represent at least 50% of sales value in each division

* In the scope of the Nutrition & Health Scorecard explained in page 21

4 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 5 56 countries or regions Netherlands covered by Nutriplanet Ireland at the end of 2017 Germany United Poland Kingdom Belgium Luxembourg Austria Hungary Switzerland France Romania

Russia Canada Italy 20 Portugal countries with Spain data on the whole Greece population

USA Japan Moreover: Turkey Azerbaijan China Tunisia Lebanon Iran countries8 with data Morocco Hong Kong focused on adults and Algeria Mexico Egypt 15 children over 3 Saudi Arabia Myanmar French Overseas India Typecountries of data with available additional Territories Senegal focus on elderly people Thailand Vietnam (end December 2017) Russia Burkina Faso Cambodia Nutriplanet: adults & children over 3 Canada Ivory CoastNigeria Malaysia Nutriplanet: babies, pregnant Colombia Cameroon Singapore & lactating women Kenya Nutriplanet: elderly people Congo Indonesia FoodStyles6 study 28 countries with fluid intake countries with data Fluid intake cross-sectional survey Brazil cross-sectional surveys focused on babies and Dietary data (total diet) USA pregnant &Japan lactating Bolivia Turkey Azerbaijan China women Tunisia Chile Lebanon Iran Morocco Hong Kong South Africa 7 Algeria Egypt Uruguay countries with Mexico Myanmar French Overseas Saudi Arabia India Type of data available dietary data (total diet) Territories Senegal Argentina Thailand Vietnam (end December 2017) Burkina Faso Cambodia Nutriplanet: adults & children over 3 Ivory CoastNigeria Malaysia Nutriplanet: babies, pregnant New Colombia Cameroon Zealand Singapore & lactating women Kenya Nutriplanet: elderly people Congo Indonesia 11 FoodStyles study countries with Fluid intake cross-sectional survey FoodStyles studies Brazil Dietary data (total diet)

Bolivia 6 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS Argentina REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 7 Chile Uruguay

South Africa Adults Uruguay Children Argentina Babies and Mothers

New Elderly people Zealand Food Style Fluid intake FIRST LINE OF ACTION BETTER PRODUCTS Danone drinkable is the brand with the Since the beginning of the Partnership lowest sugar content in the base business for a Healthier America program, Dannon 21% To maintain continuous nutritional improvement of its products, Danone segment (affordable) drinkable yogurts: reduced the amount of sugar in 78% of its full of volumes have been nutritionally has deployed comprehensive internal nutritional targets since 2005. reduction of total and added sugars by 23% portfolio and the amount of fat in 87% improved in the last 3 years** These targets have been applied in product renovation and innovation between 2016 and 2017 without high- of its dairy portfolio. projects, in the frame of the “Nutrition Check” procedure embedded intensity sweeteners. It also has the 2nd in the company’s project management system. The Danone Nutrition highest calcium content: each bottle provides Targets revised in 2016, serve as reference for Commitment #1 of the 24% of the daily recommendation of calcium. Danone Nutrition Commitments. Among product categories for which These targets cover product categories that Danone manufactures and 100% of portfolio is below the sugar (1) a sugar, saturated fat and salt target sells today . They are operational objectives for product renovation and threshold of 5g/100mL. In 2017, the sugar have been defined: innovation. They are based on nutrition science, take into account tech- content in Volvic Juiced has been reduced nical feasibility, and the consumer acceptance journey. In one year (2016), Centrale Danone saved by 38%. Additionally, in order to propose The Danone Nutritional Targets in their current version cover 99% 454 tons of sugar and continues its efforts in more options for the consumer, a wider of the company’s relevant volumes (meaning product categories for 2017. For example, sugars have been reduced range of packaging formats were made by 5% in Raibi Jamila (product for children) % which it makes sense to define targets as part of a process of continuous available within the sugar-free are77 in line with (2) (3) and the aromatic profile has been improved for nutritional improvement) . beverage range. the sugar target* better consumer perception of the product. (1) A few product categories are not covered by the Danone Nutritional Targets because continuous reformulation for nutritional improvement would not be relevant: 1. packaged water (plain & sparkling). 2. products mainly used as cooking aids, such as butter, cream and sour cream. 3. advanced medical nutrition products and products for infants with specific conditions (for example, for pre-term infants, allergy treatment, etc.). For these products, Danone UK completely renovated its jar Danone has decided not to define specific nutritional targets but will ensure 100% Added sugar reduced in Danonino portfolio, removing fruit and fruit juice % compliance with applicable regulations. This category is included in the scope spoonable (-53% since 2001) 98 of Commitment #1 and will be counted as 100% compliant at all times. from all its savory recipes and reducing total are in line with the (2) The remaining 1% correspond to product categories for which targets have not yet been and Yogurismo drinkable pouch sugar by over 20% across the range. saturated fat target* Commitment #1 defined (soft cheese and beverages other than low sugar beverages). These products are not (- 31% from 2011 to 2016). included in the reporting for Commitment #1 in 2017. This project named “Sunrise” received OBJECTIVE (3) Plant-based products (following White Wave acquisition) are not yet included in the 2017 an award from the Food and Drink reporting. 2020 Federation in 2017.

% 86% 100 Danone 50% In 2017, the level of added sugars of volumes in line with Nutritional of volumes sold in 2017 are in line with Nutritional Targets at end 2020* has been reduced from 6.5g/100g to Targets 2020 are fortified products ** the salt target* 5 or less g/100g in “Les mini-lactés” In Mexico, 74% of children from 4 spoonable dairy offer and a plain to 17 years old drink more than 1 serving * All product categories except packaged water, cooking aids, and products for which a target reference with no added sugars has been of sugar sweetened beverage per day. * % of sales volumes 2017 meeting respectively the sugar, is not yet defined. Products must meet all nutrient thresholds for their category in the launched for the first time in France saturated fat and salt threshold for their category in the % 100% of the Kids portfolio is below the Danone Nutritional Targets 2020. The compliance is 73 “Danone Nutritional Targets 2020”. The compliance is weighted by volumes of products sold. of volumes sold at This rule applies both at portfolio and product (i.e. multipack) levels. (dairy products at room temperature)! nutritional target of sugar per serving. weighted by volumes of products sold. This rule applies both end 2017 are in line with ** % of sales volumes having a nutrient fortification. Scope: Essential Dairy products + at portfolio and product (i.e. multipack) levels. Early Life Nutrition division. ** 2015-2016-2017 in % volume 2017. Scope: Essential Dairy the Nutritional Targets 2020* Products + Early Life Nutrition + Low sugar beverages

8 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 9 SECOND Commitment #2 LINE OF DESIGN SOLUTIONS ACTION OBJECTIVE Some examples, among others: 2020 AS NUTRITIONALLY BETTER CHOICES SUPERIOR 50% TO ALTERNATIVES 2 WAYS OF ACTION of turnover covered with 2 Healthier Choice studies* In Argentinian young children aged 6-23 In urban & rural areas, kids are exposed months, table sugar and sodas alone to a wide offer of unhealthy snacking FLAGSHIPS Identify the represent 12% of the Total Energy Intake outside school (candies, chips, snacks…) “Flagship products” are the healthiest products in their category, for instance plain yogurt in the dairy ALTERNATIVES in real-life practices (TEI). A study done by Danone Nutricia mainly positioned on low price point, in category, or plain water in the beverages market. Danone aims at expanding and promoting its offer of (NutriChoices) and CESNI aimed to understand food a context where eating habits are more flagship products. For instance, this map shows recent launches of plain dairy products in various areas. and fluid consumption of Argentinian and more unhealthy and micronutrient Another example below is the “Mascot” approach to promote the consumption of plain water. young children and to evaluate a relevant deficiencies still present. That’s why in

1 Russia Oct. 2016 and realistic dietary lever to reduce 2017 Centrale Danone launched the Brand: Danone free sugar intakes, based on actual new MOUFID DRINK, as a healthier Russia Oct. 2016 Nutritional consumption practices. snack adapted to kids’ needs out of Brand: Activia COMPARISON Water was identified as the most home: one portion of 65mL in a pouch, France Oct. 2017 (by nutrients or by alternated food category with powdered shelf-stable at ambient temperature, Brand: Danone a nutrient density juices and sodas (far above all other food with a -based fortified formula (iron, score) Spain Sept. 2017 and drink categories) at lunch and dinner. vitamins A & D3, iodine & calcium). Brand: Danone Japan March 2016 Mexico March 2017 Italy March 2016 Brand: Oikos Modeling showed that a few simple, Brand: Activia Brand: Danone Morocco Apr. 2016 Assessment realistic and likely food replacements can Brand: Danone Mexico Jan. 2017 of the IMPACT of help achieve WHO recommendations Brand: Vitalinea Korea Oct. 2016 Brand: Activia the substitution on on free sugar, and also to accomplish a the quality of the DIET, gradual development of healthier early Korea Nov. 2016 Brand: I love Yogurt based on simulations eating habits by replacing sweet drinks done prior to market with water. Results were presented at launch IUNS conference in Buenos Aires in A research study conducted at national October 2017. level by CESNI in 2015 demonstrated that 18% of children from 3 to 5 years Diabetes is a public health issue in Mexico and more and more old, snack in a non-healthy way. people are diagnosed with this disease. The Mexican Diabetes In accordance with this local context, Federation (FMD) offers endorsement of products as a tool to Danonino has been positioned in 2017 indicate which are the most suitable products to lead a healthy In 2015, the “Mascot” water bottle dedicated to children as a healthy snack, which is fortified life, even for people who live with diabetes. from 4 to 7 years old was launched in Spain. Data shows with iron, calcium, zinc, vitamins B12, The new Danone Natural without sugar is a 100% natural that a large proportion of the “Mascot” volume comes D and folic acid. yogurt that has only 2 ingredients: fresh milk and live lactoba- exclusively from sugar sweetened beverages. In 2017, data** cilli (93Kcal/serving of 125g). The product was evaluated by the showed that every liter of Mascot sold to children, reduced FMD and Danone got their approval to use their logo “prod- the liquid sugar consumption by 44g. Based on these good uct endorsed by the Mexican Diabetes Federation, A.C.” Two results, Danone progressively launched this product in products from Vitalínea brand were also endorsed. more than 15 countries worldwide.

* For each of the Essential dairy products, Early Life Nutrition and Water divisions, at least one “Healthier Choice” study is done in major countries covering at least 50% of the turnover of the division. ** Kantar 2016-2017

10 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 11 Commitment #4 THIRD OBJECTIVE LINE OF 2020 ACTION * BETTER HABITS PITNUT study is a comprehensive Metabolic conditions affect >10,000 % assessment of diet and nutritional status newborns per year in the UK. It is very 28 of top 100countries covered* education, information complicated for these patients to follow a of children aged 5-36 months in Poland. programs with a potential to Initiated by the Nutricia Foundation and long-term low protein diet. In the UK and reach 28 million people** It starts with the public … then putting in place concrete led by the Mother & Child Institute with also in many other countries, Nutricia is declaration of a cause… actions linked to the cause support and input from the Children’s organizing cookery workshops in partnership Memorial Health Institute and Warsaw with NGOs. Parents and patients can try Medical University, the research has shown new quick and healthy recipe ideas, meet Some examples that the existence of nutrition education new people, ask a low protein chef and a programs as the “First 1,000 days” has dietitian any questions. Calcium deficiency Danone sponsored the “National Nutrition One of the outcomes of the 1st Essential dairy products a positive impact on parents’ awareness and Plan (2017-2030)” symposium organized International Congress of Early Childhood improvement of nutritional behavior. 6 programs by the Chinese Nutrition Society of San Miguel city was the creation of a 70% of parents with children aged Potential reach: (the biggest most influencing nutrition Local Early Childhood Network composed ≈ 5.3 million consumers** “Alimentación saludable” 5-36 months are familiar with the First association in China) in Nov 2017. The plan by the sanitary and infant governmental 1,000 days concept. Parents with AMIR (Ayo Minum Air) campaign represents the first Nutrition and Health specialists of San Miguel Government and knowledge of the First 1,000 days feed was launched in 2017 with Indonesian targets published by the government Buenos Aires Province. The main objective Waters Overweight & Obesity their children better: give more often water Hydration Working Group (IHWG) and nationwide. In particular it emphasized is to share government experiences and (84 vs. 73%) and less other beverages, endorsed by the Ministry of Health of the importance of nutrition in the First discuss how to implement the best practices 7 programs use less salt in all dishes (13 vs. 21%). Indonesia. The aim is to inspire pre-school 1,000 days. at a local level regarding infant policies. Potential reach: Over a 5-year period there was an and primary school aged children to drink To make this debate even more rewarding ≈ 1.1 million consumers** observable decrease in the number of water. A research study conducted by Nutrition and Exercise they decided to invite one participant from infants with incorrect body weight (32% vs the IHWG expects to prove that children in elderly people the third sector and one participant from 38.75% in 2011 Toddler study). taking part in the AMIR program will shift Early Life Nutrition the private one. Regarding the private their behaviors toward healthier hydration In 2016, Institut Danone Maroc worked sector Danone Nutricia Bagó was selected. in 2 cities. 13 programs together with the Ministry of Health and For the last journal of the year, Nutricia Potential reach: experts to identify public health issues and Bagó was called to present the different ≈ 21.7 million parents** First 1,000 Days define concrete actions to help Healthcare projects implemented around the country. Professionals (HCPs) to encourage their patients to have healthier eating habits. * Danone strengthens the eligibility criteria of education programs each year, Medical Nutrition 3 priorities were identified: iron deficiency, 40 which accounts for the lower reported number of programs meeting obesity & diabetes. Through its roadshow subsidiaries out of 50 have publicly these criteria and the smaller number of people reached. 2 programs “Nutrition d’aujourd’hui, Santé de demain” An education program must: declared a public health cause Potential reach: organized during the biggest local scientific - address a local Public Health issue; Inspiring healthier ≈ 16,700 patients congresses, the focus was on Nutrition, - define a clear objective linked to the public health issue or its determinants hydration for life & caregivers** non-communicable diseases and the (for instance “unhealthy snacking” is one of the determinants of the obesity issue); concept of first 1,000 days, with more than 19,866 - be co-constructed with academia and/or the government; 3,100 HCPs impacted. employees followed a specific - target an identified population group; ** People reached by several programs training dedicated to the cause - define measurable impact indicators (the initial state of which has been documented can be counted several times. declared by the subsidiary (“baseline”) and the impact is regularly measured).

* Scope: top 15 Danone countries in sales value. At least one subsidiary per country will publicly declare a cause and put in place relevant actions.

12 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 13 In Poland, 2 education programs on In Indonesia, WAS project aims to reduce healthier eating and drinking habits and malnutrition in children aged 5-12 years, 84% physical activity “Keep fit” and “Mum, through promoting the consumption of of subsidiaries have made dad, I prefer Water” have demonstrated healthy and nutritious snacks. The program arrangements to help a positive impact. Participants from the resulted in greater awareness of the mothers continue to 1st program were found to: eat breakfast importance of nutrition and there was a breastfeed after going regularly; improve the number of meals decreased prevalence of undernourished back to work eaten throughout the day; be more children in schools receiving the educational (Scope: Danone Way) physically active; have a proper body intervention under the WAS project (based Institut Danone Maroc has developed, weight and self-assessment and level of on BMI and age measurement). Schools in partnership with the faculty of Sciences of acceptance of one’s own body weight. involved in the WAS project also had more BenSik, a nutritional education program for In the 2nd program, a survey conducted students visiting the WAS Food Kiosk. Danoners. It aims to engage and help employees In the Scorecard perimeter, Obesity in childhood is a Public Health Salta is one of the poorest of the among teachers, demonstrates that children to improve their own eating habits and those issue in Mexico. “Campeones de la Salud” Argentinian provinces and poverty impacts taking part in the lessons changed their of their families. A pilot was conducted is a program targeted at 10 to 12-year- children’s health. “Let’s nourish the future” behavior. 74.3 % of the teachers noticed in 2017 with 70 participants for a period of old children to promote physical activity, wants to combat malnutrition by concrete that the children were drinking more water 48 healthy diet and positive values, as part of 6 months. Different activities were carried out: subsidiaries out of 50 give actions. Together with NGOs like Pata Pila and 50.3% reported that the majority of In German nursing homes, hospitals and a healthy lifestyle. It is reviewed by experts body checkup and interactive sessions with a their employees access and CONIN and with support from local children decreased their sugary beverages rehabs, chefs and nurses see patients with from the National Public Health Institute nutritionist (one thematic per month). The pilot to a health & wellness program government, Danone co-created the first consumption. swallowing problems (dysphagia) every day. has shown satisfactory results in particular (INSP). At the beginning of the program, center on early childhood attention, that For their care, an interdisciplinary approach on the improvement of employees’ knowledge only 36% of the children drank 3-5 glasses supports parents in the First 1,000 days is needed as all these professions are on the different topics addressed. In parallel, of plain water per day and at the end, this with the help of nutritionists, pediatricians, involved: people working in the kitchen have in the headquarters’ canteen, thematic videos percentage increased to 54%. and other health experts. Danone also to prepare special dysphagic meals, nurses were broadcasted during lunch time (a new Some examples, donated a mobile unit to bring nutritional Developed with Dra Ana Escobar, have to be aware of dysphagic symptoms nutrition topic each week). among many others care to people who cannot go to the center. renowned Brazilian pediatrician, the and need to know how to support these In all, over 5,500 contacts with mothers Welcome Baby study’s objective is to patients. Nutricia´s cooking events, with a and children on nutrition took place, evaluate the influence of Social Networks famous chief, aim to improve collaboration In 2015 Nutricia, in partnership with local focused on positively impacting the way on food behavior and health status. A virtual of these different professions and awareness associations, launched the program “Eating that they eat and drink. cohort of pregnant women were provided of dysphagia and its consequences In total, healthy, growing healthy” which aimed to After 1 year, nutrition, pediatric, and access to texts about best practices in the (pneumonia, malnutrition, dehydration). Danone Waters UK carried out a study that empower dieticians, to educate daycare stimulation contacts increased; both First 1,000 days via a closed Facebook found a high percentage of people in the center caregivers, to provide better nutrition mothers and children continued to attend Group. After the posts, many indicators UK did not know their cholesterol levels, for children. 93% of institutions which took the center, and mothers were more involved were analyzed (breastfeeding rates, and indeed 90% of its employees did not 62,802 in labor workshops. In children who were know their levels either. This prompted the part in the program declared to have already alcohol intake, type of birth, quality of employees have access followed-up, severe low height, moderate company to launch its own healthy eating implemented positive changes in menus. complementary , etc.). Results show to these programs Results indicate that the average child now and severe undernourishment disappeared. that the rate of exclusive breastfeeding was initiative by first offering free 30-minute (81% of the total staff consumes 7.8 L more dairy products higher than the national average. Mothers health assessments to staff. Its trained in the perimeter) in daycare centers and 7.7 kg less also decreased their consumption of alcohol nutritionists now offer bespoke eight-week sugar/year in Kindergartens. and ate more fruit. healthy eating courses and encourage teams to dine together in the office. www.zdrowojemy.info

14 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 15 #COUNTRY FOCUS Commitment #5 OBJECTIVE ACTING AS A 2020 DANONE IN SPAIN LOCAL CONTEXT KNOWLEDGE: 100% KS & The remaining of markets covered* IL FO RESPONSIBLE COMPANY M Y O 6% are PORTFOLIO B D 41.3% of children in Spain between 6 and 9 years old and 55.7% RT & A S GU OT B - low sugar beverages O H Y E R - indulgent products of adults (18-65 years old) are overweight or obese. Danone has

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of94 volumes sold G A on adults and children over 3 and another on elderly people were

in 2017 are in healthy R two years and beyond, combined with categories updated in 2015. A Nutriplanet on babies, pregnant and lactating the safe introduction of appropriate women was conducted in 2011. complementary foods. Advertising directly targeting children In June 2016, we have published the “Danone under 12 represented 9% of advertising Policy for the Marketing of Breast Milk A plain dairy product To take a step further fighting integration among children from expenditures in 2017 for the Waters and Substitutes”, an update from our Policy from (without sugar) is against obesity, especially in 6 to 12 from unprivileged areas. Essential dairy products divisions. 2011. Danone is the first company to apply offered in several children, Danone Spain carries out Food survey and psychosocial tests Danone’s commitment to limit advertising a voluntary global policy that prohibits the Danone Spain Dairy main brands (Danone, several actions: 1) “Alimentando demonstrate positive change in aimed at children under 12 in the EU % advertising and promotion of infant formula is certified B Corp Oikos, Activia). 35% of El cambio” project, launched the children’s habits. 3) Through is audited every year by external auditors 97 for infants aged 0-6 months, even if permitted of advertising complies portfolio do not contain in 2017 in partnership with the “Activida” program, the purpose in the frame of the “EU pledge on by local laws. In countries classified as “higher- 99% of beverages with ICC Code of responsible added sugars. 97% Ashoka Foundation, a world leader is to inform HCPs and authorities advertising to children”: risk countries”, we have voluntarily extended have a sugar content marketing or equivalent of Danone beverage in the social entrepreneurship and about the importance of nutrition • regarding television advertising: in 2017, our advertising and promotion prohibition up equal to or below local codes ** volumes sold are water, education sector, supports the and physical activity in the elderly. 99.2% of Danone ads were compliant with to 12 months of age, which often goes beyond 5g/100mL (40% sugar whereas water inside research and the promotion of 4) “Mamá, papá quiero agua” the company’s commitments in the EU local legislation. To ensure that our policy is reduction since 2013). whole Spanish beverage healthy and sustainable eating and program aims to inspire Healthy Pledge. All non-compliances have been effectively implemented, an independent third 86% of Early Life market represents drinking habits, enabling all children Hydration in children from 4 to 6. addressed with a corrective action plan. party expert conducts audits yearly. Nutrition portfolio only 50%. In 2015 to become changemakers through 5) “Desayuno Genial” program, • Regarding national brand websites and % In July 2017 Danone was certified as a and 58% of dairy the “Mascot” water their schools. The first action is to supported by regional Public 77 social media profiles, 100 % of Danone of advertising is done for constituent member of the FTSE4Good products are compliant bottle dedicated to diagnose the current situation in the administrations and implemented websites and 6 social media profiles out products in healthy categories *** Index Series, which is a recognition of our to the company children aged 4 to 7 was education sector, identifying those in schools, aims to improve eating of 7 were compliant. robust ethical marketing practices, and an nutritional targets. launched in Spain. Data innovative and impactful initiatives habits in children. It is built to Danone joined the International Food important milestone in our mission, reinforced Danonino shows that the additional suitable to be scaled up to achieve capitalize on the role of plain yogurt and Beverage Alliance (IFBA) in 2017 in our published “Commitment to health and and Actimel Kids brands volumes were gained greatest impact. 2) “Danone Sports as a trigger for fruit consumption and supports the alliance's commitment nutrition in the First 1,000 days” position. have reduced added at the expense of sugar Schools” is an educational program at breakfast, thus improving this to restrict advertising directed toward sugar by 15% since 2015. sweetened beverages. promoting healthy habits and social meal's nutritional quality. 3,991 children under 12 only to products meeting employees were trained nutrition criteria based on scientifically * Scope: all countries where Danone is present. The local in the last 2 years on the subsidiaries will publish together a document explaining BETTER BETTER BETTER recognized guidelines; or not to advertize Danone Policy for the Marketing in detail their commitment to responsible marketing. to children under 12. of Breast Milk Substitutes ** Scope: Waters + Essential dairy products divisions. PRODUCTS CHOICES HABITS *** Scope: Waters + Early Life Nutrition + Essential dairy products divisions.

16 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 17 PROVIDING THE MOST APPROPRIATE DANONE SUPPORTS RESEARCH clinical149 trials underway PRODUCT LABELING TO ENCOURAGE at the end of 2017 AND INNOVATION Given the unique portfolio and mission of Danone, the activities of Danone Nutricia Research are devoted to Nutrition & Health. HEALTHIER PRACTICES In the news in 2017…

Commitment #6 scientific410 publications and OBJECTIVE presentations at conferences • Health for Life Capital (HFLC) managed by the UK assessed the increasing water 2020 worldwide in 2017 Seventure Partners is a €160 million venture intake in Polish pre-school children with 99% capital fund dedicated to health, nutrition unhealthy drinking habits and the impact of volumes have nutritional and microbiome in which Danone is a lead of information, water affordance, and on-pack information 100% investor. In 2017, the fund invested in 5 new social regulation. The study concluded of volumes with full information* companies developing innovative solutions that increased water consumption can be patent families491 at the end of 2017 for food and health, enabling the portfolio achieved in children with unhealthy drinking companies to develop their products, habits by influencing representations, perform clinical trials. An example is DayTwo, changing material affordances, and an Israeli start-up company developing providing social regulation. Combining 100% personalized nutrition recommendations to the three provided the strongest effect as of volumes have nutritional new products767 launched in 2017 balance blood sugar based on analysis of gut predicted by Installation Theory (Franks B, off-pack information microbiome, coming from science initiated et al., Appetite, 2017, 116: 205-214). (e.g., on website, or through % at Weizmann Institute. 2017 also saw the first a consumer info line) 74 of volumes give clear portion exit from the HFLC portfolio: Cambrooke • In Germany, the Nutricia metabolics size guidance Approximately 1,700 employees Therapeutics, a leader in therapeutic research fund is awarding €170,000 to nutrition for inborn errors of metabolism encourage nutrition-related research into 2 international research centers: and ketogenic diet, was sold to Ajinomoto, inborn errors of metabolism. the Center Daniel Carasso (Palaiseau, France), the Nutricia Research and continued to expand its product lines And in cooperation with the University Centre (Utrecht, The Netherlands) worldwide. of Würzburg, Nutricia Germany activated a characterization of patients, who The Nutri-Score® has been selected by Danone Produits Frais France supports 38% 4 specialized centers • Both Danone researchers and several are weekly visiting the osteoporosis French authorities as the official front-of- this governmental initiative to better of volumes** carry Front of Pack worldwide universities worked together consultation hour. The aim is to evaluate pack logo, after a 2-year process with all inform consumers and enable them nutritional information 55 branches around the world to estimate the cost of functional the prevalence of sarcopenia and stakeholders and an unprecedented real- to become actors of their health, being gastrointestinal disorders and related signs nutritional deficits among osteoporosis life comparative test. The Nutri-Score® one of the first companies implementing E342 million annual budget and symptoms in infants to the third party patients and to offer those patients the is a straightforward labeling system that the logo. payer and to parents (Mahon J, et al. BMJ opportunity to identify potential risk uses color codes to guide consumers at * Scope: all countries, all Divisions, all products except More than 200 partnerships with Open 2017;7). of malnutrition or sarcopenia. An early packaged water and other (limited) exceptions. 100% a glance on the nutritional value of food World Health of volumes sold will provide all information: on-pack, international scientific teams most diagnosis of such deficits can lead to an Organization off-pack, portion size guidance and front-of-pack where recognized in their fields. products. website • Both research centers and London School effective treatment and further clinical legally possible. ** Scope: Essential Dairy products + Low sugar beverages of Economics and Political Science in consequences can be reduced. and beverages with 0% sugar

18 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 19 2 SYSTEMATIC REPORTING SYSTEMS

Both processes are verified Danone Way by an independent third party Dimensions ALIM 2,3,4,5,6 focused (KPMG for the Scorecard on Alimentation and Price Waterhouse Coopers • 90 subsidiaries in all Divisions for Danone Way) • Only 2 figures in this leaflet come from Danone Way. Performance1 indicators1 A DEMANDING 1 1 Germany accompaniedRussia with this 1 1 The Nutrition and Health United 1 1 1 1 symbol have been verified by Kingdom 1 1 1 1 KPMG. See the full assurance GOVERNANCE Scorecard 2017 1 France 1 Poland 1 1 1 1 1 report in the last pages of • 15 countries 1 1 USA (1) 1 • 501 subsidiaries in all Divisions 1 1 Italy this leaflet. 1 Spain 1 1 1 1 1 • Representing 67% of Danone’s 1 1 1 annual turnover and 82% Morocco Turkey 2 2 The PRODUCT COMPLIANCE The NUTRITION STEERING (2) BOARD (PCB) is accountable for COMMITTEE is an operational body Mexico of volumes sold China ensuring that all Danone products comply gathering representatives from each 100% • All figures (except 2) of claims went through to applicable regulations and to Danone Division and from key Corporate functions. in this leaflet come our internal claim rules, in 4 domains related to the loyalty The NSC establishes: from the Scorecard1 validation procedure toward consumers : • A point of view of Danone in nutrition 1 1 • Food Safety and Product Quality (ambition, positions, commitments) 1 2 1 1 1 • Health and Nutrition • A clear and coherent strategy on selected 1 1 Germany Russia Indonesia United 1 1 Brazil 1 1 1 1 • Product & Brand Communication nutrition topics in relation 1 Kingdom 1 1 1 1 1 1 Poland 1 France 1 (including labeling and advertising) with the Alimentation tree 1 1 1 1 1 USA 1 1 1 1 1 1 Italy % Spain 1 1 1 1 • Intellectual Property • A quantified measurement of the 1 88 1 1 of subsidiaries have a person 1 1 The PCB establishes and regularly revises company’s performance in nutrition Argentina Morocco Turkey 2 2 accountable for the Health China the Danone Product Compliance Policy. and Alimentation-related topics Mexico & Nutrition matters* • The stakeholders' engagement plan 1 1 1 1 Decision bodies at Division level 1 2 Indonesia translate the aligned positions in concrete 1 Brazil 1 procedures/rules specific to the Division : 1 • Essential Dairy and Plant-based products % Argentina 33,444 Compliance Committee 64 employees have been of volumes with nutrition claims, trained in Nutrition and/ • Waters Product Compliance Board in the scope Essential dairy products or Hydration during the • Early Life Nutrition Product Compliance + Early Life Nutrition Committee last 2 years + Low sugar beverages and beverages Essential Dairy and Plant-based products (3) Medical Early Life Nutrition Waters • Advanced Medical Nutrition Product with 0% sugar Compliance Board (1) Change since last year: Early Life Nutrition in Morocco entered the scorecard scope. • Africa Compliance Board (2) On sales are expressed in volumes. The Waters division represents 78.9% of the volume of products sold in the scorecard perimeter, whereas Essential Dairy Products Division represents 14% * Scope: Danone Way (explained in page 21) (Plant based products have still not been included in the scorecard scope in 2017), Specialized Nutrition 7.1% (including Early Life Nutrition 6.7% and Medical Nutrition 0.4%). (3) Plant-based products from the Essential Dairy and Plant-based Division were not yet included.

20 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 21 As requested, and in our capacity as an independent third party, NATURE AND SCOPE OF OUR WORK CONCLUSION we hereby present our report on a selection of Danone Nutrition & We conducted several interviews with the people responsible for Based on the work performed, no material misstatement has come to Health indicators for 2017 selected by Danone and identified by the the Nutrition & Health reporting in the Nutrition Governance & our attention that causes us to believe that the selection of Danone symbol in the Group’s 2017 Nutrition & Health leaflet (hereinafter Policy Direction in charge of collecting the Indicators, in order to: Nutrition & Health Indicators selected by Danone and identified by LIMITED ASSURANCE “the Indicators”). the symbol in the Group’s 2017 Nutrition & Health leaflet, are not REPORT • assess the suitability of the Nutrition & Health User guide with presented fairly in accordance with the above-mentioned User guide. MANAGEMENT RESPONSIBILITY regard to its relevance, reliability, neutrality, understandability ON A SELECTION The Indicators were prepared under the responsibility of the Danone and completeness; Alimentation Science Department, in accordance with the Nutri- Paris-La Défense, 20 June 2018 OF DANONE NUTRITION tion & Health User guide which may be consulted at the department • verify that a data-collection, compilation, processing and control (hereinafter the “User guide”). The methodological notes given in procedure has been implemented to ensure the completeness KPMG S.A. & HEALTH INDICATORS the Nutrition & Health leaflet 2017 provide further details on the and consistency of the Indicators and review the internal control Philippe Arnaud consolidation scope and the definitions of specific Nutrition & Health and risk management procedures used to prepare the Indicators. Partner FOR 2017 Indicators published. Sustainability Services At parent entity level, we performed analytical procedures on the INDEPENDENCE AND QUALITY CONTROL Indicators and verified, using sampling techniques, the calculation Our independence is defined by the rules and regulations, ethical code and the consolidation of the Indicators. of the profession and our internal procedures. We have also imple- mented a quality control system comprising documented policies At the entity level, for a representative sample of entities select- and procedures for ensuring compliance with the code of ethics and ed (2) on the basis of their activity, their contribution to the con- professional auditing standards. solidated Indicators, their location and risk analysis, we conducted interviews to verify that the procedures were followed correctly RESPONSIBILITY OF and we performed tests of details, using sampling techniques, in THE INDEPENDENT THIRD PARTY order to verify the calculation made and reconcile the Indicators It is our responsibility, based on the work performed, to express a lim- with the supporting documents. The selected sample represents ited level of assurance that the indicators are presented, in all material 16% of the annual turnover of the scope covered. respects, in accordance with the above-mentioned User guide. We believe that the sampling methods and sample sizes used,

Our work involved the expertise of six people between October based on our professional judgement, were sufficient to enable (1) ISAE 3000 – Assurance engagements other than audits or reviews of historical 2017 and June 2018 for a total duration of around seven weeks. us to provide limited assurance; a higher level of assurance would information. (2) Support Produtos Nutricionais Brazil Baby, Danone Dairy Brazil, Danone Waters We called upon our specialists in Corporate Social Responsibility have required us to carry out more extensive work. Due to the Deutschland, Nutricia Great Britain Medical, Danone Russia, Nutricia Russia Baby. to assist in carrying out our work. use of sampling techniques and other limitations intrinsic to the operation of information and internal control systems, we cannot This is a free translation into English of the original report issued in French and is provided solely for the convenience of English-speaking readers. This report should be read in We performed the procedures below in accordance with professional completely rule out the possibility that a material irregularity has conjunction with, and construed in accordance with, French law and professional auditing auditing standards and with International Standard ISAE 3000 (1). not been detected. standards applicable in France

22 – REPORTING 2017 ON OUR NUTRITION COMMITMENTS REPORTING 2017 ON OUR NUTRITION COMMITMENTS – 23